Further to the Company's announcement dated 6 November 2025 in relation to the acceptance by Ann Joo Steel Berhad ("AJSB"), a wholly-owned subsidiary of AJR, of a conditional letter of offer dated 5 November 2025 ("Offer") issued by Axis REIT Managers Berhad, the management company of Axis Real Estate Investment Trust ("Axis-REIT"), for and on behalf of RHB Trustees Berhad, acting as the trustee for and on behalf of Axis-REIT ("RHB Trustees" or "Purchaser") in relation to the proposed disposal and leaseback of a freehold industrial land measuring approximately 135.53 acres, comprising Land A measuring 94.21 acres and Land B measuring 41.32 acres ("Subdivided Land"), together with the buildings erected thereon ("Buildings"), held under master title GRN 186109, Bandar Prai, District of Seberang Perai Tengah, State of Pulau Pinang (collectively referred to as "Property") for an indicative cash consideration of RM800 million ("Proposed Disposal and Leaseback").

The Board wishes to announce that  pursuant to the Purchaser's due diligence review, the findings were not reasonably satisfactory to the Purchaser. Accordingly, the Purchaser has informed the Company that it will not be proceeding with the Proposed Disposal and Leaseback, and both parties have mutually agreed to terminate the conditional letter of offer dated 5 November 2025 ("LO").

As a result, the parties will not be entering into any definitive agreement, and the LO has ceased to have effect in accordance with its terms. For the avoidance of doubt, both parties will have no claims whatsoever against each other arising from or in connection with the LO after the mutual termination.

The cessation of the LO is not expected to have any material financial impact on the Company or its subsidiaries.

This Announcement is dated 26 March 2026.