Weekly Review – 5 November 2017 to 11 November 2017

HEXZA(3298)

Notice of Default to Tembusu Industries Pte Ltd (7^th November 2017)

• Tembusu Industries Pte Ltd failure to make payment of the monthly lease payable under Sale &  Purchase and Lease Agreement.

• Tembusu provided a personal guarantee of one of its director, Mr Tin Maung Kyin

• On 30^th January 2015, HEXZA had enter agreement with Tembusu which HEXZA purchase a 8MW Power Generator in Myamar of total purchase price USD 6.0 Million and Tembusu shall lease back the Equipment from HEXZA for a period of 10 years at a monthly rental of USD 130,205.

• Due to the default, HEXZA impairment loss of RM 28.54 milion in the first quarter for the financial year end 30 September 2017.

HEXZA’s Bottom line to take a hit from RM 28.5 mil provision 

• Tembusu’s failure to make payment on the monthly lease rental payable under agreement dated 30 January 2015.

• HEXZA appointed a law firm in Singapore to advise.

•  Issued letter to Tembusu founder and majority shareholder Pete Tin Muang Kyin.

• Tembusu had reschedule the payment twice.

• Would impact earning per share by 11.1 sen.

LIIHEN(7089)

Corporate Guarantee  (6 November 2017 & 9 November 2017)

• Provide RM 10,000,000 corporate guarantee to HSBC for additional import line facility granted to Favourite Design Sdn Bhd

• Provide RM 7,570,000 corporate guarantee to HSBC for additional import line facility granted to Lii Hen Furniture Sdn Bhd

• Additional loans taken by LIIHEN.

AJIYA (7609)

Memorandum of Understanding (6 November 2017)

• MOU signed with Politeknik Melaka to support, promote mutual understanding and collaboration on programme and activities based on Industrialised Building System (IBS)

• AJIYA to provide technical training to Politeknik Melaka in relation with IBS Technology.

Summary of Stock Reviews