YNH Property : Disposed Land For RM170 Million, With An Additional RM50 Million Upon Approval Of New Development Order

PRESS RELEASE

YNH disposed land for RM170 million, with an additional RM50

million upon approval of new development order

KUALA LUMPUR, 16 MAY 2023 - YNH Property Berhad (YNH) today issued a press statement to further clarify its filing to Bursa Malaysia this morning on the proposed disposal of its freehold vacant land located in Desa Sri Hartamas, Kuala Lumpur.

YNH had announced earlier today that its wholly owned subsidiary, Kar Sin Berhad, has entered into a Sale and Purchase Agreement (SPA) with Imbuhan Sempurna Sdn Bhd, Great Wall Park Sdn Bhd and Sunway Living Space Sdn Bhd, for the proposed disposal of the 5,098- acre landbank for a total cash consideration of RM170 million.

However, YNH further explained that the disposal agreement also contains an additional consideration in which YNH will receive an additional RM50 million if YNH successfully obtains a New Development Order (NDO) within one year from the date of the SPA. The NDO would include the approval by the relevant authorities for a development with a minimum plot ratio of seven (7) on the net land area.

James Ngio, General Manager of YNH, said, "The additional RM50 million acts as an incentive for our Group to obtain an NDO for the purchasers.

"We had agreed with this additional clause because we are confident that we will be able to obtain the new development order leveraging on our track record and expertise in this area as well as the strategic location of the landbank. Naturally, with an NDO, the value of this landbank will increase," he explained.

YNH further clarified that the additional sum of RM50 million would be paid to the lawyers of the purchasing parties (as stakeholders) and will be disbursed to YNH upon fulfilling the additional consideration clause.

He added, "The proposed disposal provides an opportunity for YNH to realise and unlock the value of its investment while strengthening the Group's liquidity and cash flow position."

"We intend to utilise the proceeds to repay bank borrowing and working capital, resulting in interest saving of RM3,771,823 per annum. As a result, it is expected to reduce the gearing ratio of YNH," he said.

The proposed disposal will result in an estimated gain of approximately RM2,602,843 to the Group, after taking into consideration the estimated expenses of RM800,000 in relation to

the proposed disposal. The proposed disposal is also not expected to have any material effect on the issued share capital and the substantial shareholders' shareholdings of YNH as the Disposal Consideration shall be fully satisfied via cash and does not involve any issuance of new ordinary shares in YNH.

In its filing to Bursa Malaysia, YNH also disclosed that the proposed disposal is not subject to the approval of shareholders of the company or other relevant authorities and that the Directors and Major Shareholders of YNH do not have any interest, whether direct or indirect in the proposed disposal.

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