We refer to our announcement made on 29 July 2019 in relation to the Disposal (“Announcement”) and the query from Bursa Securities dated 1 August 2019 (“Query”) in relation to the Disposal. Unless otherwise defined, the definitions set out in this reply shall carry the same meanings as defined in the Announcement.

Further to the Announcement, the Board of Directors of ECOBUILT wishes to provide the following additional information pursuant to the Query:-

1. The respective age of the MMM Properties and TSB Property.

Reply

The age of the MMM Properties and TSB Property are set out below:-

2. Whether any valuation was carried out on MMM Properties and TSB Property respectively. If so, the respective name of the independent registered valuer, date and method of valuation and quantification of the market value, and the time and place where the valuation(s) report may be inspected.

Reply

There were no valuation was carried out on the MMM Properties and TSB Property by an independent valuer. However, internal assessment and market survey were carried out on the market values of the properties in the vicinity to the MMM Properties and TSB Property based on the references from www.brickz.my and www.propertyguru.com.my. Based on the abovementioned internal assessment and market survey, the Board is of the view that the current market value of the MMM Properties and TSB Property are approximately RM4.09 million and RM211,000, respectively.

3. The net book values of the MMM Properties and TSB Property based on the latest audited financial statements of each company.

Reply

The latest audited net book values of the MMM Properties and TSB Property are set out below:-

4. Examples of working capital for which the Disposal proceeds will be utilized.

Reply

The working capital for which the Disposal proceeds will be utilized for, among others, the payment of salaries and defrayment of operational and administrative expenses such as professional fees, utilities and sundry expenses.

5. The timeframe for full utilisation of the Disposal proceeds.

Reply

The Disposal proceeds is expected to be fully utilised within 24 months from receipt of payment.

6. The brief details of the existing projects and future projects for which the Disposal proceeds will be utilized.

Reply

(i) The Group intends to utilise RM5.0 million of the Disposal proceeds as working capital for its existing on-going projects comprising, among others, the pre-development costs, building structural works, infrastructure works, material costs, labour costs, professional fees and authorities’ fees.

The existing on-going major projects currently undertaken by the Group with an aggregate contract sum of approximately RM464.6 million, are as follows:-

(a) the construction works for the proposed development of 2 apartment blocks (1320 units) comprising block A-32 Storeys Apartment PPAIM (660 units), block B-34 Storeys Apartment (440 units) and affordable home (220 units), 8 Storeys podium car park, 1 unit TNB substation, 1 unit of refuse chamber and common facilities on Lot PT15250, Kampung Muhibbah, Bukit OUG, Mukim Petaling, Kuala Lumpur; and

(b) the construction works for the proposed 25-Storey Mixed Commercial Development (with subsidiary titles to be applied for) on TL. 017526475 at Jalan Tun Fuad Stephens, Kota Kinabalu, Sabah.

The above said projects is expected to be completed in year 2021.

(ii) The Group is sourcing for other potential construction, development and/or any other projects. The Group intends to utilise RM5.0 million of the Disposal proceeds as initial outlays and/or working capital for future construction, development and/or any other projects as and when the opportunities arise. Any surplus or shortfall to the proceeds allocated for the future projects of the Group will be adjusted against the proceeds allocated for working capital of the Group depending on their respective funding requirements.

7. The breakdown of the utilisation of the Disposal proceeds between working capital, existing projects and future projects.

Reply

The Group intends to utilise the proceeds from Disposal of RM12,000,000 in the following manner:-

Any surplus or shortfall for the amount allocated for the funding of existing projects and future construction, development and/or other projects will be adjusted against proceeds allocated for working capital of the Group depending on funding requirements.

This announcement is dated 2 August 2019.