Type Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID ZO-150312-55838
Subject TEMPORARY SHUTTING DOWN OF PRODUCTION IN SUBSIDIARY, NAMELY LINYI YEHUA COKING CO. LTD.
Description SINO HUA-AN INTERNATIONAL BERHAD ("HUA-AN" OR "THE COMPANY")
- TEMPORARY SHUTTING DOWN OF PRODUCTION IN SUBSIDIARY, NAMELY LINYI YEHUA COKING CO. LTD.
Query Letter Contents We refer to your Company's announcement dated 11 March 2015 in respect of the
aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following
additional information for public release:-
1. Whether Linyi Yehua Coking Co. Ltd. ("Linyi") is a major subsidiary.
2. In relation to the temporary shutting down of production in Linyi, please
provide the following:-
(a) The expected duration;
(b) The financial and operational impact; and
(c) The expected losses, if any.

Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.

Yours faithfully

SUZALINA HARUN
Senior Vice President, Issuers
Listing Division
Regulation
c.c.General Manager & Head, Market Surveillance Department, Securities
Commission (via fax)

Reference is made to Hua-An’s announcement on 11 March 2015 and Bursa Securities Malaysia Berhad's letter dated 13 March 2015 pertaining to the above matter.

The Board of Directors of Hua-An wishes to furnish the following additional information pertaining to the abovementioned matter.

The Company wishes to confirm that Linyi Yehua Coking Co. Ltd. is a major subsidiary of the Hua-An Group. This subsidiary contributed almost 100% to the financial results of the Hua-An Group based on the latest audited financial statements. In this respect, given the temporary shutting down of production in the abovementioned subsidiary, the financial and operational impact as well as the expected loss to the Hua-An Group is envisaged to be material in the current financial year 2015 should the adverse situation be prolonged over a protracted period of time. The Company is still awaiting the conclusion of the assessment by the local Ministry of Environmental Protection of the People’s Republic of China (“MOEP”) and as such the duration for the temporary shutting down of production cannot be ascertained with certainty at this juncture.

This announcement dated 16 March 2015.