We refer to the above article that appeared in New Straits Times on 27 September 2016, with particular reference to the statement in the 1st paragraph reproduced as follows:

“Another wave of retrenchments has apparently hit Penang’s manufacturing sector, with a sudden announcement to over 200 employees that they are out of jobs.”

We wish to clarify that the above measures undertaken by TS Solartech Sdn Bhd, a 50.69% owned subsidiary of Tek Seng Holdings Berhad (“Tek Seng” or “the Company”) is to optimize manpower to enhance productivity efficiency and to reduce its operating cost over the longer term.

The cost saving measures will not have any operational impact on TS Solartech Sdn Bhd or the Group. TS Solartech Sdn Bhd still has sufficient manpower of around 500 employees to fulfill the operation lines and is operating as usual in Penang Science Park. The Management of TS Solartech Sdn Bhd had resolved the issue by compensating monetarily. Despite that, the financial impact of manpower retrenchment is minimal.

The Company has and will always been looking to improve the Group’s performance and to increase its shareholders’ value.

This announcement is dated 29 September 2016.