Reference is made to the Company’s announcement dated 7 September 2015.

The Board of Directors hereby announce that, on 17 February 2020, the Company received a letter dated 3 February 2020 from the Royal Malaysian Customs (“Customs”) of Putrajaya notifying the Company on the following decision of Customs regarding its bills of demand dated 28 August 2015:

1. The bill of demand for payment of sales tax amounting to RM14,772,970.95 and the penalty amounting to RM7,386,485.45 for the period of 1 July 2012 to 31 October 2013 is cancelled with effect from 15 January 2020.
2. The bill of demand for payment of excise duties amounting to RM34,166,098.81 for the period from 28 August 2012 to 31 October 2013 remains unchanged, and the Company is required to settle the payment for the said excise duties soonest possible.

Based on legal and tax advice, there are solid grounds for the Company to object the basis of the bill of demand for the payment of excise duties. The Company will continue to engage Customs to seek an amicable solution to resolve this matter soonest possible.

The Company will make the necessary announcement on any material developments relating to the above matter, as and when appropriate.

This announcement is dated 20 February 2020.