Dear KSL shareholder,

I send below email on 14/5/2019 to: info_kslh@ksl.my 

I had not received any response from KSL, if any of you going to the AGM please cut and paste the questions into Microsoft office word, print out some copies distribute a copy to the BOD and proceed to ask the question during the Q&A session.

Thank you

Dear Mr. Ku Hwa Seng

KSL Executive Chairman

My name: Lee Son Sheng, I am a shareholder of KSL. I am writing this email to you because I’m unable to attend the upcoming KSL 19^th AGM held at KSL Resorts, Level G, Infusion Private Room, 33, Jalan Seladang, Taman Abad, 80250 Johor Bahru, Johor Darul Takzim on Thursday, 30 May 2019 at 3.30 p.m. Thus I email my questions to you by this email.

I hope you will answer the question during the AGM to all the attendees and send me your written answers to my email after the AGM.

Looking forward to hearing from you.

Thank you

My questions:

Q1: Refer 2018 Cash flow statement, is KSL generated enough free cash flow to pay a dividend? (Yes/No)

Q2: Is KSL has enough cash reserve to pay a dividend? (Yes/No)

Q3: Any cash flow problem if KSL pay out 4 cents dividend for FY 2018? (Yes/No)

Refer Chairman’s statement 2014 Annual report: "I am also pleased to announce that the Group has adopted a dividend policy of distributing 40%of the Group’s annual net profit after tax from operations (excluding any fair value gains) to shareholders in the form of cash dividends or new share issuance under the Dividend Reinvestment Plan scheme. The dividend policy aims to attract long term investors and to enable shareholders enjoy higher returns in tandem with the expanding business"

Q4: What happen to the adopted dividend policy?

Q5: What happen to the promised the dividend policy aims to attract long term investors and to enable shareholders enjoy higher returns in tandem with the expanding business?

Q6: What are the reasons for financial year end 2016, 2017 and 2018 no dividend was given?

Refer 2018 Chairman’s statement “The Group’s financial position as at end-December 2018 was further strengthened with our retained profit and increased profitability, with shareholders’ equity growing to RM2,815 million from RM2,600 million in the previous year end”

Q7: Since KSL has a very strong financial position should the board reward the shareholder with reasonable dividend? (Yes/No)

Q8: Without a formal dividend policy KSL market price had dropped into penny stock (below RM 1.00) level. Should Board consider adopting a new formal dividend policy to give clarity to investing public that the BOD/Controlling shareholders interest is aligned with minority shareholders.

Comparison SKL with other dividend paying listed property companies and its market price on 10/5/2019

Refer: Executive Directors Remuneration

Executive Chairman: Mr. KU HWA SENG. He is involved in the KSLH Group’s business development and operations in south Johor. He oversees the day-to-day management, decision-making and operations of Johor Bahru office.

Group Managing Director: Mr. KU CHENG HAI. He is responsible for the KSLH Group’s business development and day-to-day operations of the KSLH Group.

Executive Director: Mr. KU TIEN SEK. He is involved in the KSLH Group’s business development and operations in Klang Valley. He is also responsible for the development of the KSLH Group’s future expansion plans.

Executive Director: Mr. LEE CHYE TEE. He is presently responsible for the overall accounting and corporate finance functions of the KSLH Group.

Q9. I am glad to see KSL group is well managed and run by company founder three brothers where each taking up a section/area responsibility for the day-to-day management, decision-making and operations of the group as compare with other where a single CEO overall responsible for the day-to-day management, decision-making and operations of the group. I am bringing out this as I feel the remuneration is on the high side since each only responsible for a section/area of the group business. Hopefully next year this remuneration can be reviewed and any saving is used to pay a dividend. What is your opinion?

Please acknowledge receive of this email with a return acknowledgement of received.

Once again thank you

Yours Sincerely,

Lee Soon Sheng