We refer to the Company's announcement made on 9 May 2023 (“Announcement”) in relation to the Heads of Agreement (“HOA”) entered between Len Cheong Industries Sdn Bhd (“Len Cheong”) (a wholly-owned subsidiary of the Company) and Evergreen More Sdn Bhd (“EMSB”) to set forth the intentions and commitments in establishing a collaboration to undertake the mixed-use development project in Alor Gajah, Melaka. Unless otherwise stated, defined terms used in this announcement shall carry the same meanings as defined in the Announcement.

Pursuant to discussions on the terms for the joint development as stipulated in the HOA, the Parties are not able to agree on the appointment of the relevant contractors and sub-contractors and also the Parties’ plans in the execution of the Proposed Development. As such, the Parties are not able to finalise the Definitive Agreement and the Parties have mutually agreed to terminate the HOA (“Termination”) via the execution of a letter of termination on 23 May 2023.

Upon the Termination, neither party shall be held responsible for the termination of the HOA, nor shall either party have any further claim against the other for costs, damages or compensation as a result of the termination of the HOA. The Parties hereby releases the other from the due performance and observance of all its obligations and covenants under the HOA.

The Termination will not have any material impact on the issued share capital, substantial shareholders’ shareholdings, net assets, gearing, earnings and earnings per share of SNC Group for the financial year ending 31 December 2023.

The Group remains committed to pursue strategic collaborations and/or investment opportunities that align with its long-term growth strategy. The Group will continue to explore potential projects and partnerships to expand its construction and property development businesses.

This announcement is dated 23 May 2023.