The Company regrets to announce that a fire had occurred at
its subsidiary, Linyi Yehua Coking Co. Ltd.'s crude benzene (one of the by-products)
plant located at Shenquan Village Industrial Park, Luozhuang District, Linyi City,
Shandong Province, The People's Republic of China (PRC).
The fire started at 7.55am (PRC time) on 31 January 2015 and had damaged equipment
specifically relating to crude benzene with a net book value of approximately RMB487,000
(RM286,000). Based on preliminary investigation, the mishap was brought about by an
accident during the repair and maintenance work on the said plant. It was also
unfortunate to note that there were several casualties (4 fatalities and 3 injured)
during the mishap, to whom immediate and appropriate attention have been extended.
The Company wish to advise that the fire was contained only within the crude benzene
section and is expected to have minimal impact to the overall operation of the Company.
Notwithstanding the above, the Company is taking urgent steps to rehabilitate the
affected plant and area so that the status quo can be restored in the soonest possible
timeframe. Meanwhile, the Company is also currently in discussion with its insurance
companies to ascertain the appropriate compensation.
This announcement is dated 4 February 2015.
