Pursuant to Paragraph 9.19(37) of the Main Market Listing Requirements ("MMLR") of Bursa Malaysia Securities Berhad ("Bursa Securities"), the Board of Directors of YNHP wishes to announce that the Company's External Auditors, Morison LC PLT had expressed qualified opinion in the Company's Audited Financial Statements for the financial year ended 30 June 2024.

A. QUALIFIED OPINION

The Auditors had provided the following opinion in the Auditors' Report:-

"In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 30 June 2024, and of their financial performance and their cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia."

Please refer to Appendix 1 as enclosed for the details of the qualified opinion.

B. STEPS TAKEN OR PROPOSED TO BE TAKEN TO ADDRESS THE KEY AUDIT MATTERS THAT RELATED TO THE QUALIFIED OPINION

Special Independent Review: The Board has commissioned an independent review specifically to review any potential involvement of related parties and any non-compliance with the applicable laws and regulations relating to the joint venture and turnkey contracts. This independent review is conducted by an external professional firm, reporting directly to the Audit Committee. The outcome of this review will be disclosed upon completion.

Continued Collaboration with Authorities: The Board will continue to give full support to the authorities of any further inquiries to be raised, if any relating to the joint ventures and turnkey contracts entered by the Group.

Appointment of an Investment Committee: To further enhance the group's corporate governance standards, an independent Investment Committee has been appointed to provide assessments and recommendations for all joint venture and turnkey contracts, evaluating the financial viability, strategic alignment, and potential risks of each contract. This committee is appointed to provide an additional independent basis for decision-making, ensuring that every contract aligns with the Group's strategic objectives and financial policies.

C. TIMELINE

The Company expects to resolve the abovementioned issues within 6 months.

This announcement is dated 1 November 2024.