3A share price has been pushed down to the level of 1.08 after proposed to sell off 50% stake in F&B unit, 3A (Qinhuangdao) Food Industries to Wilmar. Based on the latest financial report SPA has been entered with Wilmar, such transaction estimate will be done in first half of 2018. Impairment loss for such proposed disposal will be around RM450k.

Some investors may feel that this will have big impact to 3A. But from my point of view 3A (Qinhuangdao) Food Industries is making loss since commissioning. I believe this is a good deal for 3A. Profit for 3A will be improved after dispose of this making loss company start from next year. Share price is starting to drop from the month of Aug'17 until today 1.08. I can see the selling pressure is remained, but also a good chance for us to collect and prepare for next rebound. I strong believe that rebound will be soon.

Overall 9 months result is still on track. Management is confidence that FY2017 performance will be ahead FY2016.

We remained positive for 3A resources as below outlook:

1. Start to utilize the new Maltodextrin product plant which will generate for future income.

2. Acquire new land to roll out future production facilities.

3. Withdraw from making loss China market due to high competition and more focus in Malaysia production activities.

4. Strong balance sheet with cash on hand RM43m as working capital for future company growth.