News

Introduction

Pursuant to Paragraph 9.19 (23) of the Main Market Listing Requirement of Bursa Malaysia Securities Berhad, the Board of Directors of QL wish to announce that its wholly owned subsidiary, QL Lian Hoe (S) Pte Ltd (Company No. 2000004556E) had on 6 March 2013 entered into a conditional agreement to acquire its entire paid up registered capital of USD1.2 million (“Sale Shares”) from Li Peishan (Taiwan Passport No.212509800) (“Vendor”) for a cash consideration of RMB18.8 million (equivalent to RM9.4 million)(“Acquisition”).

The share consideration of RMB18.8 million was arrived at based on willing buyer-willing seller basis, taking into consideration the net tangible assets of ZC as at 31 December 2012 as well as the deemed revaluation surplus arising from the revaluation of the real property. The Acquisition is funded by internally generated funds of QL Group.

Upon completion of the Acquisition, ZC will become a wholly owned subsidiary of QL Lian Hoe (S) Pte Ltd.

Information of ZC

ZC is a limited liability company (wholly owned by a natural person from Taiwan, Hong Kong or Macau) duly established under the laws of the People's Republic of China ("PRC"). It is principally involved in the business of producing various kinds of quick-frozen minced fish fillets, other flavoured foods, purchasing, processing and selling agricultural products domestically in PRC. ZC was established on 18 January 2000 and currently has a paid up registered capital of USD1.2 million.

Rationale

The Acquisition of ZC is in line with the Group’s expansion plan to venture into the China market for its marine products manufacturing division.

Effects of the Acquisition

The Acquisition will not have any effect on issued and paid up share capital of QL and has no material effect on QL’s Group earnings, net assets and gearing for the financial year ending 31 March 2013.

Approvals Required

The Acquisition is not subject to the approval of the shareholders of QL.

Directors’ and Major Shareholder’ Interest

None of the Directors and/or major shareholders of QL, or persons connected to them have any interest, direct or indirect in the Acquisition.

This announcement is dated 6 March 2013.