Reference is made to the Company's announcements dated 11 September 2025 and 6 April 2026 in relation to the fire incident at the factory of Fujian HJS located in Fuqing City, Fujian Province, China ("Announcements").
(Unless otherwise stated, defined terms in this announcement shall carry the same meanings as previously defined in the Announcements.)
The Board wishes to announce the following additional information:-
The coconut processing facility of Fujian HJS affected by the fire incident remains non-operational, pending further assessment and confirmation from the relevant authorities.
Prior to the fire incident, the facility was a newly established production line which was in the final stage of completing its installation and operational setup.
Subsequent to the fire incident, the Group has outsourced its coconut processing operations to a manufacturer in the vicinity and has successfully processed and sold all remaining coconut materials through this arrangement.
Notwithstanding the above, the temporary cessation of operations has not caused any significant disruption to the Group's overall operations. The Group's core seafood processing facilities and retail outlets continue to operate as normal.
Fujian HJS has recognised and provided for losses amounting to approximately RM17.81 million arising from the fire incident.
The provision has taken into account the loss of inventories, renovation works and machinery at the processing facility as well as potential claim from the landlord of the processing facility. In view of the above, the Board is of the opinion that the financial impact arising from the fire incident has been adequately provided for.
Notwithstanding the above, the Board does not expect any further material impact on the Group's financial performance going forward.
The Company wishes to clarify that the affected facility was in the final stages of completing its production line installation and operational setup at the time of the fire incident.
In anticipation of commencing full-scale operations, the Group had obtained insurance quotations and was in the process of finalising the appropriate insurance coverage for the facility. However, the fire incident occurred prior to the placement of such insurance coverage.
Accordingly, the losses arising from the fire incident are not expected to be recoverable and have been fully recognised and provided for in the Group's financial statements.
The Board is currently awaiting confirmation from the relevant authorities on the outcome of the investigation. Further updates will be provided in due course upon greater clarity on the extent of the damage and the Group's subsequent course of action.
Notwithstanding the above, the Board does not expect any further material adverse impact on the Group's financial performance going forward.
This announcement is dated 9 April 2026.