Reference is made to the announcement by LWB dated 15 July 2026 ("Announcement") in respect of the aforesaid matter. Unless otherwise defined, the abbreviations used herein shall have the same meaning as those mentioned in the Announcement.

The Board of Directors of LWB wishes to provide the following additional information in relation to the Proposed Acquisition:-

1. Whether the acquisition tantamount to diversification of business of the Group

    LWB would like to inform that the Proposed Acquisition does not constitute a diversification of the business or operations of the Group pursuant to Paragraph 10.13 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

   Based on the audited financial statements of LWB for the financial year ended 30 June 2025, the Proposed Acquisition does not result in the diversion of 25% or more of the Group's net assets to an operation which differs widely from its existing operations. Further, the net profits attributable to the assets which are the subject of the Proposed Acquisition represent approximately 22.85% of LWB's audited net profits for the financial year ended 30 June 2025, calculated based on net profits of RM6,861,458 attributable to the Proposed Acquisition over LWB's audited net profits of RM30,021,808.

   Hence, the Board is of the view that the Proposed Acquisition does not constitute a diversification of the business or operations of the Group.

2. Basis and justification of arriving at the agreed enterprise value of RM52.0 million

    The RM52.0 million represents 100% equity value of the Companies.

     The basis and justification for the agreed purchase consideration of RM46.8 million for a 90% interest are summarised below:

• Willing-Buyer Willing-Seller Negotiation: The valuation was negotiated on a willing-buyer willing-seller basis after considering the Companies' overall financial position and future potential.

   

• Financial Performance and Security: The price is justified by the Companies' historical earnings, including an RM7.62 million profit in FY2025, and is further secured by an annual profit guarantee of RM7.5 million for the first two years.

   

• Strategic Assets and Network: Significant value is attributed to the Companies' manufacturing capabilities and proprietary brands, which provide immediate access to an established distribution network across Sabah, Labuan, Sarawak, and Brunei.

   

• Contractual Protections: The agreement incorporates robust safeguards, such as a RM5.0 million retention sum to secure the profit guarantee and provide indemnity against potential breaches of warranties.

This announcement is dated 17 July 2026.