The Company’s announcement dated 5 November 2024 in relation to the suspension of Goods Vehicle Operator License for XHTT, a wholly-owned subsidiary of the Company refers.

(Unless otherwise stated, the abbreviations and definitions used throughout this announcement shall be the same as those previously defined in the previous announcement)

The Board of Directors (“Board”) wishes to announce the following additional information:

1. XHTT is a major subsidiary of the Company pursuant to the definition given in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
2. By making reference to the financial performance of September 2024, the adverse financial impact arising from the Suspension is estimated at 15% to 20% of the Group’s revenue (monthly basis). In the event the Suspension Period remains at 3 months, the adverse impact on the Group’s revenue throughout the entire financial year would be in the region of 4% to 5%.
3. The expected losses are estimated to be about 21% (being the gross profit margin taken from the Audited Financial Statements for the financial year ended 31 March 2024) of the affected revenue. Nevertheless, the Company is taking immediate actions to mitigate the losses by arranging the vehicles registered under other subsidiaries to fulfil the urgent deliveries of XHTT and outsource some of the services to competent third party(ies) transporters.
4. A formal written appeal has been submitted to APAD on 6 November 2024, with the supporting facts that the compliance issues raised by APAD have since been solved. In the appeal, the Company has requested for the Suspension to the lifted as soon as possible in order for the operations of XHTT to be resumed.

The Board is optimistic to receive a positive reply from APAD and an immediate announcement on the appeal result will be made accordingly.

This announcement is dated 8 November 2024.