WE DESIGN LOGISTICS

The Company had at its Twenty-Fourth Annual General Meeting held on 22 April 2021 obtained the mandate from its Shareholders for the Company and its subsidiaries (“CJ Group”) to enter into Recurrent Related Party Transactions of a Revenue or Trading Nature (“RRPT”) which are necessary for CJ Group’s day-to-day operations.

The RRPT was disclosed in the Company's Circular to Shareholders dated 30 March 2021 in relation to the Proposed Renewal of Existing Shareholders’ Mandate for RRPT and Proposed New Shareholders’ Mandate for New RRPT (“Circular”).

Pursuant to Paragraph 10.09(2)(e) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and further to the announcements made on 29 October 2021, 18 November 2021, 6 December 2021, 29 December 2021 and 17 January 2022, in respect of the variation between the actual value and estimated value of transactions by 10% or more, the Board of Directors of the Company wishes to announce that the following RRPT has further exceeded the estimated value of RRPT disclosed in the Circular by more than 10%:-

#CJ Logistics is the holding company of CJ Logistics Asia Sdn. Bhd., a Major Shareholder of the Company.

#CJKX is the wholly-owned subsidiary of the Company.

The Company has exceeded the estimated value of RRPT as the ocean freight rates have soared greatly for all trade routes since September 2020 due to the ongoing impacts of the COVID-19 pandemic and increase in volume in customers' import shipments.

This announcement is dated 26 January 2022.