Aseana Prop. Regulatory News (ASPL)

25 August 2017

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

Half-Year Results for the Six Months Ended 30 June 2017

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 2017.

Operational highlights:

· SENI Mont' Kiara ("SENI") achieved approximately 99% sales to date.

· The last unit of the Tiffani project was sold in July 2017.

· A plot of land ("D2 land") at International Healthcare Park ("IHP") was sold for approximately US$5.5 million. The transaction was completed in June 2017.

· A conditional sale agreement was entered into to dispose of another plot of land ("D3 land") at IHP for approximately US$7.7 million. All conditions have been met and the transaction is expected to complete by end Q3 2017.

· The operation of City International Hospital ("CIH") has shown steady improvement for the past twelve months, with outpatient and inpatient volumes increasing by 71% and 66% respectively compared to same period in 2016.

Financial highlights:

· Revenue of US$9.4 million for the six-month period ended 30 June 2017 (H1 2016: US$3.9 million)

· Loss before tax for the six-month period ended 30 June 2017 of US$3.3 million (H1 2016: profit of US$29.2 million)

· Loss after tax for the six-month period ended 30 June 2017 of US$3.6 million (H1 2016: profit of US$28.9 million)

· Consolidated comprehensive expense of US$0.5 million for the six-month period ended 30 June 2017 (H1 2016: income of US$33.5 million)

· Net asset value of US$135.0 million at 30 June 2017 (31 December 2016 (audited): US$143.4 million) or US$0.637 per share* (31 December 2016 (audited): US$0.676 per share)

· Realisable net asset value of US$181.7 million at 30 June 2017 (31 December 2016 (unaudited): US$190.5 million) or US$0.857 per share* (31 December 2016 (unaudited): US$0.898 per share)

· Net asset value per voting share at 30 June 2017 is equivalent to US$0.680. Realisable net asset value per voting share at 30 June 2017 is equivalent to US$ 0.914.*

* NAV per share and RNAV per share as at 30 June 2017 are calculated based on 212,025,000 issued shares (31 December 2016: 212,025,000 issued shares).

For the purposes of the Disclosure Guidance and Transparency Rules, the Company's total issued share capital comprises 212,025,000 Shares of US$0.05 each, with one voting right per Ordinary Share and 2 Management Shares of US$0.05 each, with one voting right per Management Share. There are 13,334,000 Shares held in treasury. The total number of voting rights in the Company is therefore 198,691,002.

The above figure of 198,691,002 Shares may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure Guidance and Transparency Rules.

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

"The performance of the Group has been encouraging despite challenges in sectors of the market that the Company is invested in. Looking ahead, the Board together with the Manager remain focused on realising the remaining assets in a controlled, orderly and timely manner. Concerted efforts are in place to ensure that the Group's portfolio progresses in tandem with the growth and recovery of both the economies and property markets 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 2017, 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 50 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 Limited ("Aseana") and its group of companies (the "Group") for the six months ended 30 June 2017.

The global economy continued to pick up speed in the first half of the year on the back of healthy economic dynamics in both emerging and advanced economies. Commodity prices are bouncing back from the freefall that began about two years ago and is now exhibiting a steadier trend. More robust global demand together with the long awaited cyclical recovery in trade, manufacturing and investment activities have all contributed to the upside developments in the economy. However, political instabilities around the world are still posing downside risks to global economic growth. Political tensions in the Middle East and in the Korean peninsula also have the potential to jeopardise recovery in the regional and world economies.

Meanwhile, 2017 appears to have been positive for Malaysia so far, as the nation's economic growth remains buoyant despite having faced subdued investor confidence, low commodity prices, political uncertainty and a weak currency. Gross Domestic Product ("GDP") growth of Malaysia reached 5.7% in the first half of 2017. The country's economy has received a boost from measures taken by the Government including removal of fuel subsidies, reduction of dependence on oil revenue, rationalising subsidies and the introduction of a Goods and Services Tax. Nevertheless, domestic consumption is still the principal driver of the country's economic growth. With many medium and long-term infrastructure projects in the pipeline, such as the second phase of the Mass Rapid Transit, the Light Rail Transit link extension project, the East Coast Rail Line, the high-speed rail and the Pan-Borneo Highway, Malaysia's economic growth rate is expected to be maintained over the coming years.

Vietnam has one of the best performing economies in the Southeast Asia region in recent years. Despite being plagued by an El Nino-induced drought and unfavourable global economic conditions which put a brake on its GDP growth last year, Vietnam's economy rebounded strongly to reach a growth rate of 6.17% in the second quarter of 2017. This brings total GDP growth to 5.73% for the first six months of the year, in the same period last year it was 5.50%. The State Bank of Vietnam recently reduced the refinancing rate by 25 basis points to 6.25% and lowered the discount rate from 4.50% to 4.25%, in an attempt to balance between boosting economic growth and keeping inflation under control. This move came as a surprise to many as it was the first interest rate reduction by the Vietnamese Government over the past three years.

Results

For the six months ended 30 June 2017, the Group recorded unaudited revenue of US$9.4 million (H1 2016: US$3.9 million), which was mainly attributable to the sale of completed units in SENI Mont' Kiara and the sale of a 1.23 hectare plot of land at IHP, through the sale of its 100% stake in HLSL5 Limited Liability Company ("HLSL 5"). No revenue was recognised for The RuMa, in accordance with 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 Group recorded an unaudited loss before tax for the period of US$3.3 million (H1 2016: profit of US$29.2 million), predominantly due to operating losses and financing costs of US$3.1 million on City International Hospital and US$1.0 million on Four Points by Sheraton Sandakan Hotel and Harbour Mall Sandakan.

The Group's unaudited loss after tax for the six-months ended 30 June 2017 stood at US$3.6 million (H1 2016: profit of US$28.9 million). The Group's unaudited consolidated comprehensive expense for the period of US$0.5 million (H1 2016: profit of US$33.5 million) has included a foreign currency translation gain of US$3.1 million (H1 2016: gain of US$5.2 million) which was attributable to the strengthening of the Malaysian Ringgit against the US Dollar by 2.9%.

Unaudited net asset value for the Group for the six-months ended 30 June 2017 decreased to US$135.0 million (31 December 2016 (audited): US$143.4 million) largely due to the capital distribution exercise in January 2017. The unaudited net asset value for the Group translates to US$0.637 per share (31 December 2016 (audited): US$0.676 per share). Meanwhile, unaudited realisable net asset value for the Group decreased to US$181.7 million as at 30 June 2017 (31 December 2016 (unaudited): US$190.5 million). This is equivalent to US$0.857 per share (31 December 2016 (unaudited): US$0.898 per share).

Review of Activities and Property Portfolio

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

Malaysia

On the back of the ongoing slowdown in luxury property sales, sales at SENI Mont' Kiara and The RuMa have been progressing at a slower pace. To date, sales of properties at SENI Mont' Kiara improved slightly to 98.8% based on sale and purchase agreements signed. In addition, the final remaining unit of the Tiffani project was sold in July 2017.

Similarly, sales at The RuMa improved marginally to 55.5% based on sale and purchase agreements signed, with a further 5.5 % booked with deposits paid. To drive sales performance, the Manager participated in various marketing and promotional events both locally and internationally and is planning further activities throughout the remainder of the year. Construction of the main building is progressing and completion is expected in Q4 2017.

The general business sentiment in Sabah has improved with increased tourist arrivals during the first four months of 2017. Sabah welcomed 1.2 million international and Malaysian tourists from January to April 2017, of which 140,473 were tourists from China. In a positive development, the United States of America has recently lifted its adverse travel advice for its citizens travelling to the east coast of Sabah, despite advisory notices from several other foreign governments remaining in place. This should bode well for the performance of FPSS in the coming months. Occupancy at FPSS for the first six months of the year stood at 40.9% and occupancy at HMS improved to 68.8% to date. More new tenants are being signed up at the mall following the opening of the cinema in July 2016 which has brought about an increase in footfall to the mall.

Vietnam

CIH has been performing consistently for the past one year. As at 13 August 2017, CIH had registered 6,410 in-patient days (13 August 2016: 3,862), equivalent to a daily average of 26 in-patient days (13 August 2016: 17), with an average revenue per in-patient day of US$390.9 (13 August 2016: US$511.1). Outpatients visits as at 13 August 2017 had reached 31,079 visits (13 August 2016: 18,224), equivalent to an average of 161 outpatients daily (13 August 2016: 101), which generated average revenue per visit of US$75.1 (13 August 2016: US$91.7). CIH commenced offering ophthalmology services at the end of 2016 and is expected to introduce angiographic intervention services by end of 2017 which will further boost patient volumes.

During the year to date, Aseana's 72.39% owned subsidiary, Hoa Lam-Shangri-la Healthcare Limited Liability Company ("HLSL"), completed the sale of a plot of 1.23 hectares of land at IHP, through the sale of its 100 per cent stake in HLSL 5 Limited Liability Company ("HLSL 5") to Tien Phat Consultancy Investment Company Limited, for a total consideration of US$5.4 million.

In addition, HLSL has entered into a conditional sale agreement with Tri Hanh Consultancy Company Limited to dispose of HLSL's 100 per cent stake in HLSL 6 Limited Liability Company ("HLSL 6") for a total consideration of US$7.73 million. HLSL6 holds a 1.19 hectares plot of land at IHP. All conditions precedents have been met and the transaction is expected to be completed by end of Q3 2017.

Divestment Investment Policy

Since receiving shareholder approval to commence the divestment of the Company's assets in June 2015, the Board of Directors has been actively engaged with the Company's Development Manager to dispose of the Company's assets in an orderly process, with the aim of completing the disposals by June 2018, and provided an update to the market on progress in July 2017.

Since June 2015, Aseana has divested a total of US$188.4m of assets, and project debt has fallen from the peak of US$229.4m as at 31 December 2013 to US$82.8m as at 30 June 2017. Furthermore, significant progress has been made in both readying the Company's remaining assets for sale, including reducing the operating losses at the City International Hospital in Ho Chi Minh City and the Harbour Mall Sandakan and Four Points Sheraton Sandakan Hotel in Sandakan, East Malaysia, and marketing the assets to prospective buyers.

The Group's borrowings as at 30 June 2017 stood at $82.779 million, of which $38.534 million will be due within the next 12 months. These debt obligations will be met through further divestment of the portfolio and refinancing.

During the divestment period, the Directors have been reducing the costs of operating the Company wherever possible including a 25% reduction in the Directors' fees for the period from July 2017 to June 2018. In addition, in order to ready the Company for the discontinuation vote to be proposed to Shareholders at the June 2018 AGM, the Company and the Development Manager have reduced the notice period for termination of the Management Agreement from 12 months to 3 months.

The Board and the Development Manager are continuing to use their best efforts to dispose of all the remaining assets of the Company by June 2018. However, if it becomes likely that the Company will not be able to meet this stated target, a separate announcement will be made by the Company by Q1 2018 in respect of its plans beyond June 2018.

MOHAMMED AZLAN HASHIM

Chairman

25 August 2017

The Malaysian economy appears to be on the right track as it continued its steady growth momentum in the first half of the year, after having been affected on multiple fronts last year. The nation's economy remained resilient despite global commodity price impact and financial market volatility, owing to a diversified production and export base, responsive macroeconomic policies and strong balance sheet position. Malaysia's Gross Domestic Product ("GDP") for the second quarter of 2017 and the first half of 2017 grew at 5.8% and 5.7% respectively. Domestic consumption remained as the key growth driver in sustaining the economy. Meanwhile, the Malaysian Ringgit has rallied alongside other major Asian currencies, advancing against the United States Dollar during the period under review. The Ringgit strengthened against the US Dollar in the first half of the year, reflecting the positive impact of the central bank of Malaysia, Bank Negara Malaysia's ("BNM") onshore Ringgit market stabilisation measures as well as inflows of portfolio investments. Having said that, the weak performance of the Ringgit in the past year has given Malaysia an edge in its exports, with export turnover growing at the fastest rate, to a seven-year high of 33.0% for the month of May.

BNM maintained the Overnight Policy Rate ("OPR"), at 3.0%, during its recent Monetary Policy Committee meeting held in July 2017. The key benchmark interest rate was earlier kept unchanged until July 2016, when BNM cut the rate for the first time in over seven years by 25-basis-point. The decision was supportive of the nation's economic activity with the stabilising Ringgit, easing inflation risk and positive economic growth outlook. Headline inflation is expected to moderate in the second half of the year due to the waning effect of global cost factors. Meanwhile, core inflation is expected to remain contained as a result of more robust domestic demand.

Businesses in general are still optimistic about the Malaysian economy as the Business Condition Index ("BCI") is above the demarcation level of 100-point threshold of optimism. BCI in the second quarter of 2017 gained 1.4 points to register at 114.1 points. The oddity of the second quarter BCI is that despite the current and domestic related indices showing an improvement as compared to the previous quarter, the expected and export-oriented indices worsened during the same period, with signs showing slowing demand. This shows that, although businesses are pessimistic about the near-term prospect for export demand, they are upbeat about current developments particularly in the domestic market. Similarly, consumers remained cautious despite an increase in the Consumer Sentiments Index ("CSI") in the second quarter of the year. Although CSI picked up by 4.1 points quarter-on-quarter, the index remains below the demarcation level of 100 points. Consumers have taken a step back in their spending habits, notwithstanding the improved employment outlook.

Investment plays a pivotal role in Malaysia's GDP growth and provides impetus for the expansion of the country's capacity for future growth. In tandem with the nation's commitment to open trade and liberalisation, the Malaysian Government has entered into bilateral commitments with countries such as China, Saudi Arabia, India and France, to boost trade and Foreign Direct Investments ("FDIs"). These bilateral ties are expected to further improve growth and development of the country, which will eventually improve income levels for all Malaysians. The various multilateral platforms include a RM144 billion investment by China in Malaysia, Saudi Arabia's Aramco's RM31 billion investment in Petronas' Refinery and Petrochemical Integrated Development in Johor as well as a RM159 billion investment and economic cooperation deals with India. Malaysia's FDI reached RM25.3 million for the first half of 2017.

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

Exchange rate - 30 June 2017: US$1:RM4.2937

The Vietnamese economy has seen positive changes and gradually gained momentum as a result of the underlying fundamentals of growth, encompassing domestic demand and manufacturing industry. Robust second quarter GDP growth at 6.17%, has led the Vietnamese economy back from a disappointing first quarter performance to average growth of 5.73% in the first six months of the year. Main economic indicators have shown encouraging progress with strong pickup in exports, foreign investment and agriculture production, all of which will provide the opportunity for speedier growth in the remaining quarters of the year. Furthermore, in a bid to spur economic growth, the State Bank of Vietnam has made a surprise move by reducing its interest rate for the first time in three years, by 0.25% to 6.25% and at the same time cut deposit rates from 4.50% to 4.25%. While it may be true that these rate cuts may help to support economic growth, the move also raises credit risk in a nation still struggling with a relatively high debt load. Nevertheless, both Fitch Ratings and Moody's Investors Service have revised the outlook on Vietnam's ratings from stable to positive, and affirmed the Vietnamese Government's issuer ratings at "BB-" and "B1" respectively, on the back of the country's steady economic growth performance.

In the meantime, Vietnam's average Consumer Price Index ("CPI") for the first half of 2017 increased by 4.15% as compared the same period last year. The reason for the increase was a hike in healthcare and education services as well as an indirect consequence of the minimum wage increase. However, the food prices index showed a declining trend for the fourth consecutive month, which weighed significantly on CPI movements in the second quarter of 2017. Notwithstanding the overall increase in the country's inflation rate, subdued food and oil prices will likely keep a lid on the Vietnamese inflation.

Vietnam remains as one of the most attractive locations for foreign investment in South East Asia due to its favourable demographics, location, free trade deals and highly competitive wages. During the period under review, Vietnam attracted US$19.2 billion in foreign direct investment ("FDI"), a surge of 54.8% against the same period last year. Furthermore, FDI disbursement reached US$7.7 billion, an increase of 6.5% as compared to the same period last year. In the six-month period, Vietnam's manufacturing and processing sector received the largest FDI capital at US$9.5 billion, accounting for 49.3% of total FDI, followed by electricity, gas and air conditioning supply at US$5.3 billion, whereas real estate was in the fifth position with a total investment capital of US$0.7 million.

As opposed to a trade surplus recorded during the same period last year, Vietnam witnessed a trade deficit of US$2.7 billion in the first half of 2017. Total export turnover reached US$97.8 billion, an increase of 18.9% year-on-year, while total import turnover reached US$100.5 billion, up by 24.1% over the same period last year. A large trade deficit in the first six months of the year supports an optimistic outlook for Vietnamese trade, with firms utilising imported items for the production of export goods, which are moving forward at a fast pace. For this reason, trade deficit may not be a daunting condition if imports are properly channelled into manufacturing.

Vietnam was recently ranked seventh on a list from the United Nations World Tourism Organisation of the Top 20 fastest-growing travel destinations in the world. Flexible visa restrictions and new air routes have helped to boost foreign arrivals to Vietnam, underpinning the growth of the country's tourism industry. In mid-May, the Vietnamese Government announced that it was extending a policy of visa-free travel which was originally scheduled to end on 30 June, by 12 months, for five European countries- Germany, France, Italy, Spain and the United Kingdom. Foreign arrivals in the first half of 2017 surged to approximately 6.2 million representing an increase of 30.2% as compared to 2016. The increase in the number of tourist arrivals helped push tourism revenues up by 27.0% year-on-year, reaching earnings of roughly US$11.2 billion. In tandem with the encouraging results, the Vietnamese Government is working hard to orientate Vietnam's tourism industry towards becoming the nation's key economic contributor by implementing various methods such as the establishment of tourism development funds or offering easier immigration procedures.

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

Exchange rate - 30 June 2017: US$1:VND22,735

LAI VOON HON

President / Chief Executive Officer

Ireka Development Management Sdn. Bhd.

Development Manager

25 August 2017

PROPERTY PORTFOLIO AS AT 30 JUNE 2017

*Shareholding as at 30 June 2017

n/a: Not available / not applicable

*See Note 14

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 JuNE 2017 - Unaudited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 JuNE 2016 - Unaudited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 DECEMBER 2016 - audited

* see Note 14

(ii) During the financial period/year, US$158,000 (30 June 2016: US$113,000; 31 December 2016: US$113,000) of ordinary shares of subsidiaries were issued to non-controlling shareholders, of which US$158,000 (30 June 2016: US$113,000; 31 December 2016: US$113,000) 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$8,955,000 was received. During the financial period ,the balance consideration recoverable of US$ 893,000 was received.

* see Note 14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

1 General Information

The principal activities of the Group are development of upscale residential and hospitality projects, sale of development land and operation 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 2017 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 2016 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.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2016 as described in those annual financial statements.

The interim report and financial statements were approved by the Board of Directors on 24 August 2017.

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) Iringan Flora Sdn. Bhd. - owns and operates Aloft Kuala Lumpur Sentral Hotel ("AKLS"); sold in June 2016;

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

(vii) 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 2017 and 2016.

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 2017 - Unaudited

# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.

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

Operating Segments - ended 30 June 2016 - Unaudited (Restated)

# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.

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

Operating Segments - ended 31 December 2016 - Audited

* The amount relates to impairment of FPSS as the recoverable amount, estimated based on its net realisable value, is below its carrying amount

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

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 30 June 2016 - Unaudited (Restated)

For the financial period ended 30 June 2016, no single customer exceeded 10% of the Group's total revenue.

Geographical Information - ended 31 December 2016 - Audited

Included in the revenue of the Group for the financial year ended 31 December 2016 is proceeds from the sale of Aloft Kuala Lumpur Sentral Hotel and a plot of land (GD1) at International Healthcare Park.

For the year ended 31 December 2016, one customer 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 is expenses related to the sale of a plot of land (D2) at IHP. (30 June 2016 and 31 December 2016: Sale of AKLS and a plot of land (GD1) at the International Healthcare Park )

6 Foreign exchange (loss)/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: