We refer to the article in relation to PHB published in Nanyang Siang Pau, page A18 on 23 February 2017.

The Company wishes to clarify that following the lapse of the agreements with Zhiyuan International Investment & Holding Group (Hong Kong) Co., Limited as announced on 8 February 2017, the Company has continued with its efforts to explore other options with other third parties to revive the operations and business of the PHB group.

Although the Company has engaged in discussions with a potential investor, such discussions are still preliminary and are subject to negotiations, due diligence, approvals and execution of definitive agreement (if successful). Todate, there is no binding agreement between PHB and the potential investor.

The Company will make the necessary announcement(s) when there is any material development relating to its regularisation plan or upon the execution of binding agreements with the relevant parties.

This announcement is dated 24 February 2017.