1. Introduction

Reference is made to Hua-An’s announcements made on 29 January 2016 and 4 March 2016 in relation to the Lease Agreement entered between its wholly-owned subsidiary, namely Linyi Yehua Coking Co. Ltd and Linyi Xin Jiang Quan Metal Material Technology Co. Ltd.

Pursuant to the above and Bursa Securities’ decision to reject the Company’s application for waiver from complying with Paragraph 8.03A (2) & (3) of the MMLR (as announced by the Company on even date), Hua-An has triggered Paragraph 8.03A(2) of the MMLR whereby it has suspended or ceased all of its business or its major business.

2. Obligations of the Company

Pursuant to Paragraph 8.03(A) of the MMLR, Hua-An is required to comply with the following:-
(a) immediately announce to the Exchange of its condition and provide such information from time to time for public release in accordance with the disclosure obligations set out in paragraph 4.0 of Practice Note 17 of the MMLR, with the necessary modifications;
(b) regularise its condition by complying with the requirements set out in paragraph 8.04(3) and paragraph 5.0 of Practice Note 17 of the MMLR, with the necessary modifications; and
(c) comply with such other requirements or do such other acts or things as may be prescribed or required by the Exchange.

3. Consequences of Non-compliance

Bursa Securities may suspend the trading of the listed securities of Hua-An and de-list the Company in the event:-
(i) the Company fails to submit a regularisation plan to the regulatory authorities on or before 15 June 2017;
(ii) the Company fails to obtain the approval from any of the regulatory authorities necessary for the implementation of its regularisation plan; and
(iii) the Company fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.

4. Status of Plan to Regularise Condition

The Company will continue to monitor the market situation and developments within the steel/coke industry to ascertain the appropriate time deemed viable to resume its coke operations and any progress in this regard will be announced to Bursa Securities in due course.

This announcement is dated 17 June 2016.