The Board of Directors of Lii Hen Industries Bhd. ("the Company") wishes to announce that a fire occurred yesterday night at about 6.50 p.m. at the premises of Lii Hen Furniture Sdn. Bhd. ("LHF"), a wholly-owned subsidiary of the Company in Kawasan Perindustrian Bukit Pasir, 84300 Muar, Johor Darul Takzim. The premises comprise three (3) blocks of single-storey factory building together with a three-storey Group's corporate office at Plo 43, Bukit Pasir Industrial Estate, 84300 Muar, Johor Darul Takzim. The fire was under control at about 9.00 p.m.
The incident has caused major portion (i.e. 2 out of 3 blocks) of factory building, machineries, conveyor system, spraying plant as well as inventories of semi finished products destroyed by fire and the Group's corporate office is intact. The property, plant and equipment and inventories destroyed are adequately insured. The management of the Company and LHF are in collaboration with insurers and contractors to ascertain the actual extent and quantum of the losses caused by the incident.

This incident will have operational impact on bed-room sets operations of the Group. The financial impact of this incident is being assessed and the announcement will be made once it has been determined.

The potential impact on the earnings of the Group will be mitigated as it is insured against consequential loss at an amount of compensation which will be determined by the loss adjusters in due course and further, an immediate measure is being taken by the management of the Company and LHF in order to minimise disruption to LHF's operations.