Further to the announcement made on 13th December 2016 pertaining to the letter of Interest received by the Company from Felcra dated 9th December 2016.

The Board of Directors wishes to announce that the Company had on 14th December 2016 received a letter from Felcra with details stated in the letter as below :

"After urgent deliberation of our register of interest to explore the possibility of participating in KFMB’s equity, we hereby inform that, effective immediately, we are retracting our register of interest and ceasing all exploratory pursuit to participate in Kuantan Flour Mills Berhad equity. As such, our letter dated 9 December 2016 to KFMB shall no longer be of any effect."

Meanwhile, the management and the Board of Directors will continue its utmost effort to explore other opportunities and investment participation by other parties to restructure and revitalise the company.

This announcement is dated 15 December 2016

Performance of the Group is affected by the present downturn in the oil and gas industry, softer
local demand for motor vehicle and weakening ringgit. The challenges and uncertainties in the
current business environment may add pressure for asset impairment in the last quarter of the
year. Hence, this may adversely impact the Group’s results.
Nevertheless, management will take appropriate measures to contain cost, increase operational
efficiency and continue to improve business potentials. from:latest quarter report.