Kwantas Corporation Berhad

Revaluation of Properties

  1. INTRODUCTION

Pursuant to Paragraph 9.19(46) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Kwantas Corporation Berhad (“the Board/Kwantas”) wishes to announce that Kwantas has undertaken a revaluation exercise (“Revaluation”) on its land, buildings and biological assets of Kwantas and its subsidiaries (“Kwantas Group”).

The Revaluation exercise was conducted by CH Williams Talhar & Wong (Sabah) Sdn Bhd, CH Williams Talhar Wong & Yeo Sdn Bhd, Land Serve (S) Sdn Bhd,DTZ Cushman & Wakefield, Jiangsu Su Xin Real Estate Appraisal Co., Ltd. and Achmad, Rasyid, Hisbullah & Jerry.

The Board had, at its meeting held on 26 August 2016 approved the valuation reports dated 8 June 2016,15 June 2016, 30 June 2016& 12 August 2016 and the incorporation of the revaluation surplus arising from the Revaluation in the fourth quarter unaudited financial results of Kwantas for the financial year ended 30 June 2016.

  1. PURPOSE

The Revaluation was carried out to reflect the fair value of the Kwantas Group’s land, buildings and biological assets in the financial statement of the Kwantas Group for the financial year ended 30 June 2016. This Revaluation is in compliance with Malaysian Financial Reporting Standard 116 (“FRS 116”) and Financial Reporting Standards Implementation Committee (“FRSIC”) Consensus 12.

  1. DETAILS OF THE REVALUATION

The details of the Revaluation surplus are as follows:

  1. No.
/
  1. Description of Property
/ Total Valuation RM ‘000 / Net Book Value
RM ‘000 / Revaluation (Deficit)/Surplus, Net of Deferred Taxation
RM ‘000 / Date of last Revaluation/ Acquisition
1. / Agriculture land held under CL095317196 situated at Lamag, District of Kinabatangan, Sabah / 309,050 / 328,153 / (16,095) / 30 June 2015
2. / Agriculture land held under PL096290069 situated at Koyah Locality, Off KM39, Jln Lahad Datu-Sandakan, District of Kinabatangan, Sabah / 92,450 / 84,043 / 7,917 / 30 June 2015
3. / CL 095318504
CL 095318513
CL 095318522
CL 095318531
CL 095318540
CL 095318559
Sg Pin Locality, KM 50, Jln Lahad Datu-Sandakan, District of Kinabatangan, Sabah / 104,480 / 104,551 / 211 / 30 June 2015
4. / CL115379336 situated at New Wharf Road, District of Lahad Datu, Sabah / 40,000 / 39,545 / 345 / 30 June 2015
5. / Agriculture land held under CL095319065 situated at District of Kinabatangan, Sabah / 18,380 / 18,975 / (595) / 30 June 2015
6. / Agriculture land held under CL095317007 situated at District of Kinabatangan, Sabah / 13,670 / 13,910 / (191) / 30 June 2015
7. / Agriculture land held under CL095316395 situated at Sg. Kinabatangan, District of Kinabatangan, Sabah / 125,420 / 124,255 / 940 / 30 June 2015
8. / Agriculture land held under CL095327147 situated at Kinabatangan Locality, Off KM50, Jln Lahad Datu-Sandakan, District of Kinabatangan, Sabah / 97,300 / 101,151 / (3,620) / 30 June 2015
  1. No.
/
  1. Description of Property
/ Total Valuation RM ‘000 / Net Book Value
RM ‘000 / Revaluation (Deficit)/Surplus, Net of Deferred Taxation
RM ‘000 / Date of last Revaluation/ Acquisition
9. / CL 115311138 situated at Mile 2 1/2, Jln Kastam Baru, District of Lahad Datu, Sabah / 11,950 / 11,854 / 298 / 30 June 2015
10. / Ladang Pintasan 4 situated at Latangan Locality, District of Kinabatangan, Sabah / 95,510 / 92,319 / 2,252 / 30 June 2015
11. / Ladang Pintasan 5 situated at Latangan Locality, District of Kinabatangan, Sabah / 121,460 / 129,220 / (7,322) / 30 June 2015
12. / Ladang Pintasan 6 situated at Latangan Locality, District of Kinabatangan, Sabah / 44,920 / 46,078 / (1,352) / 30 June 2015
13. / Ladang Pintasan 7 situated at Latangan Locality, District of Kinabatangan, Sabah / 130,600 / 132,708 / (2,336) / 30 June 2015
14. / Ladang Pintasan 9 situated at Sg. Lamag/Sg. Kinabatangan, District of Kinabatangan, Sabah / 67,770 / 67,419 / 753 / 30 June 2015
15. / Ladang Sg. Koyah situated at Koyah Locality, District of Kinabatangan, Sabah / 1,440 / 1,501 / (76) / 30 June 2015
16. / Ladang Haranky 2 situated at Ulu Segama, Jln Lahad Datu-Sandakan, District of Kinabatangan, Sabah / 10,270 / 9,073 / 906 / 30 June 2015
17. / KM28&30 situated at Jln Lahad Datu, Sabah / 530 / 495 / 23 / 30 June 2015
18. / Koyah Lands situated at Koyah Locality, District of Kinabatangan, Sabah / 2,670 / 1,416 / 1,000 / 30 June 2015
19. / Agriculture land held under CL115414161 situated at KM14.5 Jln Lahad Datu, Sabah / 12,300 / 11,931 / 329 / 30 June 2015
20. / Agriculture land held under CL095330000 situated at Ladang Bikasjaya / 17,170 / 17,691 / (462) / 30 June 2015
  1. No.
/
  1. Description of Property
/ Total Valuation RM ‘000 / Net Book Value
RM ‘000 / Revaluation (Deficit)/Surplus, Net of Deferred Taxation
RM ‘000 / Date of last Revaluation/ Acquisition
21. / Title: (2002) No.1 situated at No. 15, Jinqiao Road, Title: C6073342 situated at
No. 68, Baojin Road & Title: (2003) No. 92 situated at No. BSQ-F2, Guangzhou Free Trade Zone, Guangzhou, China / 27,331 / 25,647 / 1,684 / 30 June 2015
22. / Title: (2002) No.23 situated at Zhangjiagang Free Trade Zone, Zhangjiagang, China / 1,653 / 1,653 / - / 30 June 2015
23. / Title: (2009) No. 380018 situated at No.15, Beijing Road(s), Jiangsu Yangtze River International Chemical Industrial Park, Zhangjiagang, China / 22,679 / 20,226 / 2,453 / 30 June 2015
24. / Title: 0510003687 situated at No. 39, Beiwei Road, Guangzhou Free Trade Zone, Guangzhou, China / 23,494 / 22,336 / 1,158 / 30 June 2015
25. / Agriculture land held under
Lot 14-19 situated at Buloh Land, Ulu Balingian, Sarawak & Lot 26-28 situated at Arip Land, Ulu Balingian, Sarawak / 81,600 / 80,303 / 985 / 30 June 2015
26. / Agriculture land held under
Lot 2, Block 204 situated at
Oya- Dalat LD, Mukah, Sarawak / 43,943 / 30,031 / 12,323 / 30 June 2015
27. / Agriculture land held under Desa Manamang Kanan & Kiri, situated at Kecamatan Muarakaman Kutai Kartanegara, Kalimantan Timur, Indonesia / 27,729 / 27,480 / 249 / 30 June 2015
28. / Agriculture land held under
Native Customary Rights on Ulu Balingian situated at Mukah Division, Sibu / 16,109 / 16,737 / (628) / 30 June 2015
  1. EFFECTS ON NET ASSETS PER SHARE

Based on the fourth quarter unaudited financial results of Kwantas for the financial year ended 30 June 2016, the net assets per share of Kwantas Group will be increased by 0.05 sen to RM3.86 upon incorporation of the Revaluation surplus, net of deferred tax.

Unaudited as at 30 June 2016Before Revaluation / Effect of the Revaluation / After the Revaluation
Net Assets/Shareholders’ Fund (RM’000) / 1,188,391 / 15,708 * / 1,204,099
No. of shares outstanding (‘000) / 311,678 / 311,678 / 311,678
NA per share (sen) / 3.81 / 0.05 / 3.86

*Revaluation surplus net of deferred tax.

  1. DOCUMENTS AVAILABLE FOR INSPECTION

The valuation reports are available for inspection at the registered office of Kwantas at K-63A-3A, Signature Office, KK Times Square, Off Coastal Highway, 88100 Kota Kinabalu, Sabahduring normal office hours from Monday to Friday (except for public holidays) for a period of 3 months from the date of this announcement.

This announcement is dated 30th August 2016.