Pursuant to Paragraph 9.19(23) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, YNH Property Bhd. ("YNH") wishes to announce that it has incorporated a subsidiary, Desaru Ace Services Sdn. Bhd. (DAS) in Malaysia on 15 December 2016. The Certificate of Incorporation of the Company dated 15 December 2016 was received on 16 December 2016.

The authorised capital of DAS is RM400,000/- divided into 400,000 ordinary shares, of RM1/- each. The principal activity of DAS is to provide hotel and lodging facilities and the paid up capital is RM2/- divided into 2 ordinary shares, of RM1/- each. 

The incorporation of DAS is not expected to have any material effect on the earnings or net assets of YNH Group for the current financial year ending 31 December 2016. None of the directors or substantial shareholders of YNH or persons connected to them has any interest, direct or indirect in the said incorporation. 

This announcement is dated 16 December 2016.