The Board of Directors of YNH Property Berhad (“YNH”) wishes to announce that its wholly owned subsidiary, YNH Realty Sdn. Bhd. (“YNHR”), had on 24 November 2017 instituted legal proceedings against KKH Development Sdn. Bhd. (“KKH”) for the breach by KKH of certain terms and conditions set out in the Letter of Appointment dated 27 April 2016 (“the said Agreement”), in which KKH appointed YNHR as Project Management Consultant in relation to a proposed construction of a 60 floors, 413 units of service apartments on Lots 531 and 568 Section 57, Jalan Berangan off Jalan Sultan Ismail, Kuala Lumpur (“the said Project”).

After seeking legal advice, YNHR has decided to institute legal proceedings against KKH for breach of contract and to claim for losses and damages incurred (“KKH Lawsuit”). The KKH Lawsuit is not expected to have any material adverse effect on the YNH Group for the current financial year ending 31 December 2017.

Appropriate announcement(s) will be made in due course on any material development and the financial impact pertaining to the KKH Lawsuit.

This Announcement is dated 27 November 2017.