Aseana Prop. Regulatory News (ASPL)

31 August 2018

Aseana Properties Limited("Aseana", the "Company" or, the "Group")

Half-Year Results for the Six Months Ended 30 June 2018

Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2018.

Operational highlights:

·  On 23 April 2018, Aseana announced that at the General Meeting, shareholders approved the continuation of the Company to December 2019 and also approved the amendment of the Management Agreement to adopt a revised fee structure. The revised fee structure better aligns the Manager's interests with those of shareholders by incentivising the Manager to maximise sales proceeds and achieve the current disposal schedule for realisation of the Company's remaining assets.

· On 26 June 2018, the Manager entered into an agreement to divest a plot of land ("PT2 land") at International Healthcare Park ("IHP") for a consideration of VND150.0 billion (approximately US$6.6 million). The completion of this transaction is subject to regulatory approval being obtained from local authorities.

·  During the period under review, three units were sold at SENI Mont' Kiara ("SENI"); only one penthouse remains available for sale.

· The Harbour Mall Sandakan ("HMS") has achieved an occupancy of 72% to date.

·  Four Points by Sheraton Sandakan Hotel ("FPSS") achieved an average occupancy rate of approximately 37% for the period to 30 June 2018 and 40% to date.

· The RuMa Hotel and Residences ("The RuMa") has achieved approximately 56% sales based on sale and purchase agreements signed.

· The City International Hospital ("CIH") has shown improvement in its operational performance, with both outpatient and inpatient volumes increasing by approximately 30% as compared to same period in 2017.

Financial highlights:

·  The Group adopted International Accounting Standard IFRS 15 Revenue from Contracts with Customers with a date of initial application of 1 Jan 2018. As a result, the Group changed its accounting policy for revenue recognition. The Group applied IFRS 15 by recognising the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity as at 1 January 2017. Adjustments to revenue are made for property development activities of serviced residences for The RuMa, where no revenue was previously recognised under IFRIC 15 - Agreements for Construction of Real Estate, which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued (see note 2 and note 13).

· Revenue of US$15.9 million for the six-month period ended 30 June 2018 (H1 2017 (restated): US$17.1 million)

· Loss before tax for the six-month period ended 30 June 2018 of US$4.1 million (H1 2017 (restated): profit of US$0.2 million)

· Loss after tax for the six-month period ended 30 June 2018 of US$4.6 million (H1 2017 (restated): loss of US$0.7 million)

· Consolidated comprehensive loss of US$4.8 million for the six-month period ended 30 June 2018 (H1 2017 (restated): income of US$4.3 million)

· Net asset value of US$138.9 million at 30 June 2018 (31 December 2017 (unaudited) (restated): US$142.3 million) or US$0.699 per share (31 December 2017 (unaudited) (restated): US$0.716 per share)

· Realisable net asset value of US$183.1 million at 30 June 2018 (31 December 2017 (unaudited) (restated): US$182.0 million) or US$0.922 per share (31 December 2017(unaudited) (restated): US$0.916 per share)

Commenting on the results, Mohammed Azlan Hashim, Chairman of Aseana, said:

"The Board and the Manager remain committed to ensuring that the remaining assets of the Company are realised with optimum values in a timely manner. Although no major asset sales were recorded during the first half of the year, further progress has been made in the sale of the remaining units at SENI Mont' Kiara and the Manager has also entered into an agreement to dispose of a plot of land at IHP. Nevertheless, the Board and the Manager remain focused to ensure the Group's portfolio progresses with the recovery and growth of the economy in Malaysia and Vietnam."

The Group has also published its Quarterly Investment Update (including updates on projects and RNAV figures) for the period to 30 June 2018, which can be obtained on its website at www.aseanaproperties.com/quarterly.htm.

For further information:

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer with investments in Malaysia and Vietnam.

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 51 years' experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the divestment of existing properties.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the half-year results for Aseana Properties and its group of companies for the six months ended 30 June 2018.

The global economy has been volatile throughout the first half of 2018. Trade tensions between the US and China remain the primary reason for the market instability. However, oil prices have been on an upward trend in 2018 as a result of restrictions in oil production, bringing it to its highest price since 2014. This bodes well for Malaysia as an oil exporting nation, mitigating some of the global economic risk.

The Malaysian economy has remained buoyant in the first half of 2018 despite growth being recorded at a slower pace compared to the same period last year. The 14th General Election ("GE14") which took place on 9 May 2018 has caused uncertainties in the nation's economic policies. Investor confidence was shaken following the announcement by the new government that the national debt amounts to US$1 trillion. However, the government is positive that foreign investment will return once it has announced new economic policies and measures in the short-term. Consumer spending is expected to increase following the abolition of the Goods and Services Tax ("GST") on 1 June 2018 and the reintroduction of the Sales and Services Tax ("SST") from September 2018. In a bid to bring down the debt level, the government is reviewing mega infrastructure projects such as the Kuala Lumpur-Singapore High Speed Rail, the Klang Valley Mass Rapid Transit Line 3 and the East-Coast Rail Link. To date, the implementation of these projects has been put on hold until further notice. These government initiatives are expected to maintain Malaysia's positive economic growth trajectory.

Meanwhile, economic growth in Vietnam remains strong with second quarter Gross Domestic Product ("GDP") growth of 6.79%, bringing the total GDP growth to 7.08% for the first half of 2018. Among the fastest-growing economies in the world, Vietnam has been propelled by thriving exports, a surge in Foreign Direct Investment (FDI) and a buoyant tourism sector.  However, it is expected that the country's economy may slow down amid rising trade tensions between the world's two economic powerhouses coupled with the easing in China's growth. In addition, discontent among Vietnamese citizens is also on the rise due to the proposed special economic zone for Chinese businesses, as well as the cyber security legislation that is believed to be restricting online freedom.

Results

For the six months ended 30 June 2018, the Group recorded unaudited revenue of US$15.9 million (H1 2017 (restated): US$17.1 million), which was attributable to the sale of completed units in SENI Mont' Kiara of US$4.3 million and adjustments to revenue for sale of residences in The RuMa of US$11.6 million, upon the adoption of International Accounting Standard IFRS 15 with effect from 1 January 2018. Previously, the Group adopted IFRIC 15 - Agreements for Construction of Real Estate which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued. No major asset sales were recorded during this period.

The Group recorded an unaudited loss before tax for the period of US$4.1 million (H1 2017 (restated): profit of US$0.2 million), mainly due to operating losses and financing costs of US$2.1 million for City International Hospital, US$0.8 million for Four Points by Sheraton Sandakan Hotel and Harbour Mall Sandakan, and pre-opening losses of US$1.4 million for The RuMa Hotel.

The Group's unaudited loss after tax for the six-months ended 30 June 2018 stood at US$4.6 million (H1 2017 (restated): loss of US$0.7 million). The Group's unaudited consolidated comprehensive loss for the period of US$4.8 million (H1 2017 (restated): income of US$4.3 million) has included a foreign currency translation loss of US$0.1 million (H1 2017 (restated): gain of US$5.0 million).

Unaudited net asset value for the Group for the six-months ended 30 June 2018 decreased to US$138.9 million (31 December 2017 (unaudited) (restated): US$142.3 million) due to losses incurred during the period. The unaudited net asset value for the Group translates to US$0.699 per voting share (31 December 2017 (unaudited) (restated): US$0.716 per voting share). Meanwhile, unaudited realisable net asset value for the Group stood at US$183.1 million as at 30 June 2018 (31 December 2017 (unaudited) (restated): US$182.0 million). This is equivalent to US$0.922 per voting share (31 December 2017 (unaudited) (restated): US$0.916 per voting share).

Review of Activities and Property Portfolio

Sales status (based on Sales and Purchase agreements signed):

Malaysia

The property market remains weak in the wake of the formation of a new government after the defeat of the previous coalition government who has ruled for over 60 years. Uncertainties in the global and local economic conditions added to the lacklustre performance of the property market in Malaysia. The sale of properties at The RuMa is slow and registered sales have dropped slightly to 56.0% due to termination of a few contracted sales by the developer due to payment default of the buyers. Construction is expected to complete by September 2018 followed by immediate handover of units to buyers. The RuMa Hotel is expected to commence operation in October 2018. The Manager continues to actively market the balance of unsold units to potential buyers in Singapore, Taiwan and Hong Kong.

Sabah experienced an increase in the number of tourists in the first six months of 2018 compared to the same period in 2017. Sabah had a total of 1.89 million international and Malaysian tourists from January to June of 2018, with those from China being Sabah's largest group of visitors, with a total of 300,103. However, travel outside of Kota Kinabalu, the capital of Sabah, is still affected by adverse travel advisory notices for eastern Sabah from countries such as Australia, New Zealand, Canada and the United Kingdom. These continue to place a negative effect to the performance of FPSS. Occupancy at FPSS for the first six months of the year stood at 37% while occupancy at HMS stands at 72% to date.

Vietnam

CIH's performance has shown encouraging improvements to date. The operation of the angiographic intervention services which commenced in April has brought commendable improvements to the overall patient volume of the hospital. As at 30 June 2018, CIH had registered 6,612 in-patient days (30 June 2017: 4,970), equivalent to a daily average of 37 in-patient days (30 June 2017: 27.46), with average revenue per in-patient day of US$458 (30 June 2017: US$390). Outpatients visits as at 30 June 2018 had reached 31,230 visits (30 June 2017: 23,685), equivalent to an average of 234 outpatients daily (30 June 2017: 177), which generated average revenue per visit of US$78.5 (30 June 2017: US$74.0).

Divestment Update

The Directors have previously highlighted the impact of difficult prevailing property market conditions in both Malaysia and Vietnam on the speed of asset disposals.

Despite a general improvement in sentiment, the Malaysian property market remains soft and is in a period of adjustment following the nation's General Election on 9 May 2018, which resulted in a change of government formed by a new coalition of political parties. This represents a watershed moment for Malaysia, having been ruled by the same coalition government since it gained independence in 1957. As a result, in the short term, investors, especially overseas investors, are still adopting a "wait-and-see" approach over the outlook for the property market.

On the Seafront Resort and Residential Development, Kota Kinabalu, discussion with the China-based buyer is at advanced stage. Meanwhile, the Development Manager has also initiated discussion with a Singapore based property developer.

In Vietnam, whilst the economy continues to grow at a robust pace with inflation remaining in check, the anti-China protests in June 2018, sparked by the designation of special economic zones with long land leases, has created renewed uncertainties among Chinese investors looking to invest in Vietnam.

On the progress of disposal, discussions with the China-based healthcare group and the Vietnam-based healthcare investor are still on-going.

Separately, the Manager entered into an agreement on 26 June 2018 to divest a plot of land at the International Healthcare Park (Lot PT2, Vietnam) for a consideration of approximately VND150.0 billion (approximately US$6.6 million). The completion of this transaction is subject to regulatory approval being obtained from local authorities.

On 3 July 2018, the Board of Directors released an announcement highlighting the revised disposal schedule for the Company's remaining assets. While discussions are still on-going for City International Hospital and Seafront Resort and Residential Development, Kota Kinabalu, current market conditions have meant that the Company has been unable to achieve its original target of selling by June 2018 and has therefore provided a revised timeline for the sale to take place in Q4 2018.

MOHAMMED AZLAN HASHIM

Chairman

31 August 2018

DEVELOPMENT MANAGER'S REVIEW

The Malaysian economy remained resilient on the back of solid fundamentals despite the growing need to improve on its current fiscal condition. Growth is expected to trend lower, compared to the robust growth recorded last year, due to uncertainties over economic policies introduced by the new government. Malaysia's GDP grew at 4.5 % for the second quarter of 2018 and 4.9% for the first half of 2018 respectively. Despite moderated growth, the pace of growth remains sturdy as domestic market continues to be the key economic driver coupled with positive spill overs from the external sector. In addition, GDP growth has been supported by private consumption on the back of improving consumer sentiment following the announcement of the abolition of the Goods and Services Tax and the introduction of fuel subsidies by the new government. Standard & Poor's and Fitch Ratings have reaffirmed Malaysia's sovereign credit rating at investment-grade A-, while Moody's rated Malaysia at A3 with stable outlook, indicating robust external position and above-average growth performance which mitigate risks inherent from uplifted debt burden and unstable fiscal policy due to ongoing political transition. Meanwhile, the Ringgit depreciated against the US Dollar by 4.57% to RM4.04/US$1.00 in Q2 2018 due to weakened international investors' sentiment arising from the uncertain local political climate.

Malaysia's central bank, Bank Negara Malaysia left its benchmark interest rate unchanged at 3.25% in its first policy meeting under a new governor in July 2018. This is on the back of sustained positive growth driven by both domestic and external demand despite overhang uncertainties such as the implications of the GE14 in May. In addition, the GST abolishment, which became effective on 1 June 2018 is seen to be providing a boost to private consumption in the short term until the Sales and Services Tax is introduced on 1 September 2018 at 10% and 6% respectively. In tandem with the GST abolishment and the government's measure to cut back on spending to rein in government's debt, the nation's inflation outlook is expected to remain benign underpinned by sustained domestic demand. According to the Department of Statistics Malaysia, Malaysia's Consumer Price Index ("CPI") which measures inflation, grew 0.8% year-on-year in June, the lowest in 40 months following the GST abolishment as well as discounted prices by retailers and price control due to the festive period.

Against the nation's positive domestic economic outlook and upbeat labour market, Malaysian consumer confidence escalated to its highest level in 21 years in the second quarter of 2018. The Malaysian Consumer Sentiment Index rebounded above the 100-point optimism threshold to reach 132.9 points, the highest level since Q2 1997. Consumers' optimism has been underpinned by the recent change in the country's political landscape, GST abolishment and the consumers' expectations of an improvement in the economic welfare. Similarly, businesses have also been bullish on the economy in Q2 2018 as evidenced by the strong rebound in the Malaysian Business Conditions Index ("BCI"). BCI in the second quarter of the year reached 116.3 points, the highest level over the last 13 quarters, driven primarily by new domestic orders, higher investments and higher expected production and export sales in the coming months.

Malaysia has been one of the main beneficiaries of inward Foreign Direct Investment ("FDI") in the region. Malaysia's FDI in 2018 is expected to remain moderate in tandem with the escalating global trade tensions and the uncertainties surrounding the policy reforms under the new government. While businesses have shown more positive confidence following the results of the GE14, efforts to address the fiscal position of the country, such as the review of several landmark infrastructure projects namely the East-Coast Rail Link, the Kuala Lumpur-Singapore High Speed Rail and the Klang Valley Mass Rapid Transit Line 3, coupled with the change in tax regime, may dampen investors' confidence in the short-term. Nevertheless, on-going reforms coupled with the right policies will steer the nation's economy in the right direction and will lead to an overall improvement in the investment climate over the medium to long-term.

Source: Bank Negara Malaysia website, Jones Lang Wootton Q2 report, MIER, various publications

Exchange rate - 30 June 2018: US$1:RM4.0371

The Vietnamese economy is currently expanding at a rapid pace, with GDP growth of 7.08% in the first half of 2018, the highest first half result since 2011. This affirmed the Vietnamese government's prompt and effective efforts in building up the confidence of both domestic and foreign investors which has helped to stabilise the nation's macroeconomy and reduce the unemployment rate. GDP growth was 6.79% in Q2 2018 on the back of vigorous manufacturing and export expansion, rising domestic consumption and strong investment, fuelled by foreign direct investment. The World Bank has revised Vietnam's GDP growth rate upward to 6.80% for the whole of 2018 from its previous forecast of 6.50%. In addition, Fitch Ratings raised Vietnam's long-term-foreign-currency issuer rating to "BB" from "BB-", with stable outlook in May 2018. This reflects the country's improving policy-making aimed at strengthening macroeconomic performance. However, Vietnam's economy is still facing numerous challenges which include the need for state enterprise reform, negative debt and an increase in global protectionism. Trade war between Vietnam's two largest trading partners, the US and China, could lead to negative spill-over effects on the country's economic growth.

Meanwhile, Vietnam's average Consumer Price Index ("CPI") for the first six months of 2018 rose 3.29% year-on-year. In June alone, the index increased 0.61% against May and was up 4.67% as compared to June 2017. The increase was due to a surge in global fuel prices, adjustments to medical services prices and school fees, as well as increase in construction material prices due to higher demand and growths in cement and steel prices. In a bid to keep the nation's inflation in check, the Vietnamese government has implemented a new policy since July 2018, whereby citizens of the country will now enjoy lower prices for certain health services and the government has also assured that there will not be further increases in electricity tariffs for the rest of the year. According to the National Assembly of Vietnam, inflation is forecast not exceed 4.0% in 2018.

The recent anti-China protest in June 2018, sparked by the designation of special economic zones with long leases, has created renewed uncertainties among Chinese investors looking to invest in Vietnam. This unrest may spill-over to harm ethnic ties, diplomatic relations and foreign investment. Nevertheless, on the back of strong growth momentum, Vietnam's FDI in the first half of the year reached US$20.33 billion, an uplift of 5.7% compared to the same period in 2017. Vietnam has long attracted large FDI inflows especially for labour-intensive export-oriented manufacturing. Countries such as Japan, Korea and Singapore remain to be the top three investors of the country. Manufacturing-processing industry continued to attract the most FDI in Vietnam in the first six months of 2018, with US$7.91 billion, accounting for 38.9% of the total registered FDI. It was followed by real estate, with US$5.54 billion, and the wholesale and retail sector with US$1.50 billion, making up 27.3% and 7.4% percent of the total, respectively.

The country's first-half exports rose 16.0% from the same period last year to US$113.93 billion, while imports increased 10.0% to US$111.22 billion, resulting in a US$2.71 billion surplus for the period as compared to a deficit of US$3.5 billion during the same period last year. The key drivers behind export growth were mobile phones, computers and electronic equipment, which accounted for 38.4% of total export value, rose by 18% year-on-year. Meanwhile, import growth was driven by a 38.8% increase in gasoline and a 17.1% increase in textiles.

In the meantime, Vietnam recorded 7.89 million of international tourist arrivals in the first half of the year, an increase of 27.2% year-on-year. This is attributed to the Vietnamese government's continued initiatives in the tourism sector, particularly in organising tourism promotion activities for international markets. Vietnam first offered visa waivers to citizens from five European countries, namely United Kingdom, France, Germany, Spain and Italy in July 2015, a policy that has been extended for a period of three years to 30 June 2021.

Source: General Statistics Office of Vietnam, Savills, CBRE, various publications

Exchange rate - 30 June 2018: US$1:VND22,955

LAI VOON HON

President

Ireka Development Management Sdn. Bhd.

Development Manager

31 August 2018

PROPERTY PORTFOLIO AS AT 30 JUNE 2018

*Shareholding as at 30 June 2018

n/a: Not available / not applicable

* See Note 13

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

* See Note 13.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the PERIOD ended 30 JuNE 2018 - Unaudited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the PERIOD ended 30 JuNE 2017 - Unaudited

* The Group has applied IFRS 15 using the cumulative effect method as an adjustment to the opening balance of equity at 1 January 2017.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 DECEMBER 2017 - audited

\* The Group has applied IFRS 15 using the cumulative effect method as an adjustment to the opening balance of equity at 1 January 2017.

(ii) During the financial period/year, US$63,000 (30 June 2017: US$158,000; 31 December 2017: US$252,000) of ordinary shares of subsidiaries were issued to non-controlling shareholders, of which was satisfied via cash consideration.

(iii) In 2016, the Group disposed the entire balance representing 9,784,653 shares in Nam Long for a consideration of US$9,848,000 of which US$8,955,000 was received in 2016. The balance consideration of US$893,000 was received during the financial year 2017.

(iv) Included in short term bank deposits on 30 June 2018 is nil balance (31 December 2017: US$13,867,000), a term loan granted to City International Hospital Company Ltd ("CIH") by Vietbank where utilisation is restricted solely for the purpose of refinancing the existing syndicated term loan under CIH.

(v) Included in short term bank deposits, cash and bank balance is US$2,839,000 (31 December 2017: US$2,823,000) pledged for loans and borrowings and Medium Term Notes of the Group.

The notes to the financial statements form an integral part of the financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

1 General Information

The principal activities of the Group are development of upscale residential and hospitality projects, sale of development land and operation and sale of hotel, mall and hospital in Malaysia and Vietnam.

2 Summary of Significant Accounting Policies

2.1 Basis of Preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2018 has been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017 which has been prepared in accordance with IFRS.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

The interim results have not been audited nor reviewed and do not constitute statutory financial statements.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

Except for the changes below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2017 as described in those annual financial statements.

The Group adopted International Accounting Standard IFRS 15 Revenue from Contracts with Customers with a date of initial application of 1 Jan 2018. As a result, the Group changed its accounting policy for revenue recognition. The Group applied IFRS 15 by recognising the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity as at 1 January 2017. Adjustments to revenue are made for property development activities of serviced residences for The RuMa, where no revenue was previously recognised under IFRIC 15 - Agreements for Construction of Real Estate, which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued.

The interim report and financial statements were approved by the Board of Directors on 30 August 2018.

3 SegmentAL Information

The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development Manager under a management agreement dated 27 March 2007.

Segmental information represents the level at which financial information is reported to the Executive Management of IDM, being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive Officer, the Chief Financial Officer, Chief Operating Officer and Chief Investment Officer of IDM. The management determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision making and resource allocation. For management purposes, the Group is organised into project units.

The Group's reportable operating segments are as follows:

(i) Investment Holding Companies - investing activities;

(ii) Ireka Land Sdn. Bhd. - develops Tiffani ("Tiffani") by i-ZEN;

(iii) ICSD Ventures Sdn. Bhd. - owns and operates Harbour Mall Sandakan ("HMS") and Four Points by Sheraton Sandakan Hotel ("FPSS");

(iv) Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara ("SENI");

(v) Urban DNA Sdn. Bhd.- develops The RuMa Hotel and Residences ("The Ruma"); and

(vi) Hoa Lam-Shangri-La Healthcare Group - master developer of International Healthcare Park ("IHP"); owns and operates the City International Hospital ("CIH").

Other non-reportable segments comprise the Group's other development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2018 and 2017.

Information regarding the operations of each reportable segment is included below. The Executive Management monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Executive Management believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.

The Group's revenue generating development projects are in Malaysia and Vietnam.

Operating Segments - ended 30 June 2018- Unaudited

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

Operating Segments - ended 30 June 2017 - Unaudited

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

Operating Segments - ended 31 December 2017 - Audited

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

Geographical Information - ended 30 June 2018 - Unaudited

Geographical Information - ended 30 June 2017 - Unaudited

Included in the revenue of the Group for financial period ended 30 June 2017 is proceeds for the sale of a plot of land (D2) at International Healthcare Park.

For the financial period ended 30 June 2017, one customer exceeded 10% of the Group's total revenue as follows:

Geographical Information - ended 31 December 2017 - Unaudited

Included in the revenue of the Group for the financial year ended 31 December 2017 is revenue from the sale of two plots of land (Lots D2 and D3) at the International Healthcare Park ("IHP").

For the year ended 31 December 2017, two customers exceeded 10% of the Group's total revenue as follows:

4 Seasonality

The Group's business operations are not materially affected by seasonal factors for the period

under review.

5 Cost of Sales

Included in the cost of sales of the Group for the financial period ended 30 June 2017 and financial year ended 31 December 2017 is cost of sales related to sale of two plot of lands (Lots D2 and D3) at the International Healthcare Park.

6 Foreign exchange GAIN

7 Taxation

The numerical reconciliation between the income tax expense and the product of accounting results multiplied by the applicable tax rate is computed as follows:

The applicable corporate tax rate in Malaysia is 24%.

The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%.

The applicable corporate tax rates in Singapore and Vietnam are 17% and 20% respectively.

A subsidiary of the Group, CIH is granted preferential corporate tax rate of 10% for the results of the hospital operations. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the healthcare industry.

A Goods and Services Tax was introduced in Jersey in May 2008. The Company has been registered as an International Services Entity so it does not have to charge or pay local GST. The cost for this registration is £200 per annum.

The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.

8 (LOSS)/EARNINGS Per Share

Basic and diluted (loss)/earnings per ordinary share

The calculation of basic and diluted (loss)/earnings per ordinary share for the period/year ended was based on the (loss)/profit attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:

Weighted average number of ordinary shares