We refer to our announcement made on 19 August 2025 in relation to the Acquisition (“Announcement”). Unless otherwise defined, the definitions set out in this announcement shall carry the same meanings as defined in the Announcement.

Further to the Announcement, the Board wishes to provide the following additional information:

1.      Basis of Purchase Consideration

The prevailing market value of comparable properties in the Pulau Indah area was taken into consideration during negotiations. Management consulted a valuer to assess the market value of factory land and buildings based on a per square foot rate. The assessment showed that the negotiated purchase price of RM30.0 million was below the market value for similar properties in the area, prompting KPS Plywood to proceed with the purchase.

2.      Risk Factors and Rationale

The Company would like to clarify that the Property is acquired for investment purposes and may potentially be used as a warehouse for plywood imports, given its proximity to Port Klang. The Board of Directors of KPSCB is not aware of any specific risks associated with the acquisition, other than the usual market and operational risks.

This announcement is dated 21 August 2025.