XINGHE----FROM MINYAK KELAPA SAWIT KE PERTENAKAN AQUAKULTUR UDANG

On behalf of the Board of Directors of XingHe (“Board”), Kenanga Investment Bank Berhad (“Kenanga IB”) wishes to announce that the Company proposes to undertake the following:

1. diversification of the principal activities of XingHe and its subsidiaries (“Group”) to include the business of prawn aquaculture and processing of marine seafood (“Proposed Diversification”);
2. consolidation of every eight (8) existing ordinary shares in XingHe (“XingHe Share(s)”) into one (1) new ordinary XingHe Share (“Consolidated Share(s)”) (“Proposed Share Consolidation”); and
3. issuance of redeemable convertible notes (“Notes”) with an aggregate principal amount of up to RM120 million (“Proposed Notes Issue”).

(Collectively, referred to as the “Proposals”)

Please refer to the attachment for further details on the Proposals.

This announcement is dated 6 May 2019.