Response to SGX Queries::

Issuer & Securities

Issuer/ Manager
Stapled Security

Announcement Details

Announcement Title
Response to SGX Queries
Date &Time of Broadcast
07-Sep-2015 18:26:23
Supplementary Title
On Other Announcements
Others (Please Specify)
SGX Query on Company's Announcement of 7 September 2015
Announcement Reference
Submitted By (Co./ Ind. Name)
Siew Wun Mui
Vice President
Description (Please provide a detailed description of the change in the box below)
Please address the following queries in an announcement to be released via SGXNET:

1. We refer to the Company's announcement of 7 September 2015 titled "Unauthorised Transactions By The Former Executive Chairman And Chief Executive Officer Of China Essence Group Ltd". It was disclosed that "the shareholding of at least two of the subsidiaries had been changed to certain individuals in April 2015".
(a) Please provide the information required under Rule 1010 of the SGX Listing Manual on the change of shareholdings of the Company's subsidiaries;
(b) To disclose the identity and background of the "certain individuals" mentioned in the above statement; and
(c) It was disclosed that at least two subsidiaries were the subject of unauthorized transactions. To advise if any other subsidiaries may be affected and if so, to disclose details.

2. It was disclosed that "Mr Zhao Libin who admitted that he did the transactions did not disclose the matter to the Board". Please provide the reason(s) why Mr Zhao Libin did not inform the Board of Directors on the transactions.

3. Who were aware of the transfers? Was the CFO, Mr Yap Kong Wai, informed? If not, how was the transfer of shares of its subsidiaries effected and why was Mr. Yap not aware?

4. Are the consequences material to the Company? If so, why did the Company not disclose the riot at the factory at the point in time when it occurred?

5. Please quantify how much was owed to the farmers, and for how long was the outstanding amount owed by the subsidiaries. How were these amounts settled and have these liabilities been fully repaid?

6. Please confirm whether the Board has obtained full information on the state of affairs of the Company from Mr Zhao. If not, please provide details on the steps the Board intends to take to make sure that all material information on the Company's state of affairs has been disclosed.

7. What are the remaining subsidiaries of the Company and what are their prospects? Please quantify the contribution from these remaining businesses of the Company. Is the Company still able to operate as a going concern? Please provide the basis for the Board's views.

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