The following is the text of a letter, summary of valuations and valuation report prepared for the purpose of incorporation in this document received from Cushman & Wakefield Limited, an independent property valuer, in connection with its opinion of value of certain property interests of the Group as at 30 April 2018. The Directors Hong Xin Holdings Limited No. 11 Jalan Seri Impian 18, Taman Impian Emas, 81300 Skudai, Johor, Malaysia Dear Sirs, INSTRUCTIONS, PURPOSE & VALUATION DATE [.] 2018 In accordance with the instructions from Hong Xin Holdings Limited (the Company ) forus to value certain properties in which the Company or its subsidiaries (collectively the Group )has interests in Malaysia (as more particularly described in the attached valuation report), we confirm that we have inspected the properties, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the values of such properties as at 30 April 2018. VALUATION BASIS Our valuation of each property represents its market value which in accordance with the HKIS Valuation Standards 2017 Edition issued by The Hong Kong Institute of Surveyors is defined as the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. We confirm that the valuations are undertaken in accordance with the requirements set out in Chapter 5 and Practice Note 12 of the Rules Governing the Listing of Securities published by The Stock Exchange of the Hong Kong Limited and the HKIS Valuation Standards 2017 Edition issued by the Hong Kong Institute of Surveyors. Our valuation of each property is on an entirety interest basis. IV-1
VALUATION ASSUMPTIONS Our valuation of each property excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, special considerations or concessions granted by anyone associated with the sale, or any element of value available only to a specific owner or purchaser. In the course of our valuation of the properties in Malaysia, we have assumed that, unless otherwise stated, the transferable land use rights in respect of the properties for their respective specific term at nominal annual land use fee has been granted and that any premium payable has already been fully paid. We have relied on the information and advice given by the Company regarding the title to the properties and the interests of the Company in the properties. In valuing the properties, we have assumed that the Group has enforceable title to the properties and has free and uninterrupted rights to use, occupy or assign the properties for the whole of the respective unexpired land use term as granted. In respect of the properties situated in Malaysia, the status of titles and grant of major certificates, approvals and licences, in accordance with the information provided by the Company are set out in the notes of the respective valuation report. We have assumed that all consents, approvals and licences from relevant government authorities for the developments have been obtained without onerous conditions or delays. We have also assumed that the design and construction of the properties are in compliance with the local planning regulations and have been approved by the relevant authorities. No allowance has been made in our valuations for any charges, mortgages or amounts owing on the properties nor any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of any onerous nature which could affect their values. METHOD OF VALUATION For properties nos. 1, 3 to 5, we have mainly used Market Comparison Method assuming sale of each of these properties in its existing state by making reference to comparable sales evidence as available in the relevant market subject to appropriate adjustments including but not limited to location, accessibility, size and other relevant factors. This method is in line with the market practice. In valuing property no. 2, due to the specific nature of the property with respect to its building specification and lack of sales transactions of the property of the same characteristics in the vicinity, we have adopted the Depreciated Replacement Cost ( DRC ) Method. The DRC Method is based on an estimate of the market value of the land in its existing use, plus the current cost of replacement of the improvements, less allowance for physical deterioration and all relevant forms of obsolescence and optimisation. For the land portion, we have made reference to comparable land sales evidence as available in the relevant market. The DRC Method is subject to service potential IV-2
of the entity from the use of assets as a whole. The market value arrived using the DRC Method applies to the whole of the complex or development as a unique interest, and no piecemeal transaction of the complex or development is assumed. SOURCE OF INFORMATION We have relied to a very considerable extent on the information given by the Company and have accepted advice given to us on matters such as planning approvals, statutory notices, easements, tenures, identification of land and buildings, completion date of buildings, particulars of occupancy, tenancy details, site and floor areas, site and floor plans, number of parking spaces, interests attributable to the Group and all other relevant matters. Dimensions, measurements and areas included in the valuation report are based on the copies of documents or other information provided to us by the Company and are therefore only approximations. No on-site measurement has been carried out. We have had no reason to doubt the truth and accuracy of the information provided to us by the Group which is material to the valuations. We were also advised by the Group that no material facts have been omitted from the information provided. We would point out that the copies of documents of the properties in Malaysia provided to us are mainly compiled in Malaysian characters and the transliteration into English represents our understanding of the contents. We would therefore advise you to make reference to the original Malaysian editions of the documents and consult your legal adviser regarding the legality and interpretation of these documents. TITLE INVESTIGATION We have been provided with extracts of documents relating to the properties and have caused searches made at the Johor Registry of Title Office in Johor Bahru. However, we have not inspected the original documents to ascertain any amendments which may not appear on the copies handed to us. SITE INSPECTION Chan Seng Ching, a member of the Royal Institution of Chartered Surveyor and a member of the Royal Institution of Surveyors Malaysia, with over 13 years of property valuation experience in Malaysia, inspected the exterior and, wherever possible, the interior of the properties in June 2018. No structural survey has been made, but in the course of our inspection, we did not note any serious defects. We are, however, not able to report that the properties are free of rot, infestation or any other structural defects. No tests were carried out to any of the services. Unless otherwise stated, we have not been able to carry out on-site measurements to verify the site and floor areas of the properties and we have assumed that the areas shown on the documents handed to us are correct. IV-3
CURRENCY Unless otherwise stated, all monetary sums stated in our valuations are in Ringgit Malaysia ( RM ), the official currency of Malaysia, in relation to the properties in Malaysia. OTHER DISCLOSURE We hereby confirm that Cushman & Wakefield Limited and the valuers conducting the valuations have no pecuniary or other interests that could conflict with the proper valuations of the properties or could reasonably be regarded as being capable of affecting our ability to give an unbiased opinion. We confirm that we are an independent qualified valuer, as referred to Rule 5.08 of the Listing Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. We enclose herewith a summary of valuations and valuation report for your attention. Yours faithfully, For and on behalf of Cushman&WakefieldLimited Andrew K.F. Chan MSc, MRICS, MHKIS, MCIREA, RPS(GP) Regional Director Valuation & Advisory Services, Greater China Note: Mr. Andrew K.F. Chan is a Registered Professional Surveyor who has over 30 years experience in the valuation of properties in the PRC, Hong Kong and other Asian countries. Mr. Chan has sufficient current national knowledge of the market, and the skills and understanding to undertake the valuations competently. IV-4
SUMMARY OF VALUATIONS Property Market value in Market value in existing state as at 30 April 2018 Interest attributable to the Group existing state attributable to the Group as at 30 April 2018 (RM) (%) (RM) Group I Completed properties held by the Group for investment purpose in Malaysia 1. 61 & 61A, Jalan Seri Impian 1 TamanImpianEmas 81300 Skudai Johor Darul Takzim, Malaysia 2. 38, Jalan Pelepas 4/9 Taman Perindustrian Tanjung Pelepas 81550 Gelang Patah Johor Darul Takzim, Malaysia 850,000 100 850,000 2,050,000 100 2,050,000 Sub-total of Group I: 2,900,000 Group II Properties contracted to be acquired by the Group for investment purpose in Malaysia 3. 35, Jalan Sierra Perdana 6/3 Taman Sierra Perdana 81750 Masai Johor Darul Takzim, Malaysia 4. 34, Jalan Hijau 2 Taman Pulai Hijauan 81100 Kangkar Pulai Johor Darul Takzim, Malaysia 5. C-17-09, Block C Botanika Apartment Jalan Persiaran Bayu Puteri 2 TamanBayuPuteri 80150 Johor Bahru Johor Darul Takzim, Malaysia 1,100,000 100 1,100,000 700,000 100 700,000 760,000 100 760,000 Sub-total of Group II: 2,560,000 Grand total: 5,460,000 IV-5
VALUATION REPORT Group I Completed properties held by the Group for investment purpose in Malaysia Property Description and tenure Particulars of occupancy Market value in existing state as at 30 April 2018 1. 61 and 61A, Jalan Seri Impian 1, Taman Impian Emas, 81300 Skudai, Johor Darul Takzim, Malaysia The property comprises a double-storey terraced shop/office with a land area of 178 sq.m. (1,916 sq.ft.). It was fully completed in 2006. The property has main and ancillary floor areas of about 336 sq.m. (3,616 sq.ft.) and 20 sq.m. (216 sq.ft.), respectively. As at the valuation date, the property was vacant. RM850,000 (Ringgit Malaysia Eight Hundred And Fifty Thousand) The subject property is situated within a mixed development project known as Taman Impian Emas, Skudai, Johor Darul Takzim, which is sited on the southern side of North South Expressway (Lebuhraya Utara Selatan) and off the northern side of Skudai Pontian Highway (Lebuhraya Skudai Pontian). It is located about 19 kilometres by road due north-west of Johor Bahru city centre. This subject property is legally identified as Geran 394231, Lot 125990, Mukim of Pulai, District of Johor Bahru, State of Johor. The property is held for land use terms of perpetuity (freehold) for commercial use. IV-6
Notes: (1) According to our land search conducted at the Johor Registry of Title Office in Johor Bahru on 5 June 2018, the salient details of the title document of the property are extracted as follows. Title No. Geran 394231 Lot No. Lot 125990 Mukim/District/State Annual Tax Land Area Tenure Registered Proprietor(s) Category of Land Use Mukim of Pulai RM238.00 178 sq.m. (1,916 sq.ft.) Interest in perpetuity Hong Xin Construction Sdn. Bhd. Building Date of Registration 22 December 2009 (2) The property is subject to a mortgage in favour of AmBank (M) Berhad dated 27 April 2016. (3) In valuing the property, we have assumed a unit rate of RM2,400 per sq.m. for the commercial premises. In undertaking our valuation, we have made reference to sales prices of commercial premises in the neighbouring districts which have characteristics comparable to the property. The prices of commercial premises range from about RM2,400 per sq.m. to RM2,500 per sq.m.. The unit rate assumed by us is consistent with the relevant comparables after due adjustments including location, accessibility and size. IV-7
VALUATION REPORT Property Description and tenure Particulars of occupancy Market value in existing state as at 30 April 2018 2. 38, Jalan Pelepas 4/9, Taman Perindustrian Tanjung Pelepas 81550 Gelang Patah Johor Darul Takzim, Malaysia The property comprises a 736-square metre (7,922 sq.ft.) parcel of industrial land and is presently built upon with a three-storey semi-detached factory. It was fully completed in 2017. The property has a gross floor area of approximately 622 sq.m. (7,922 sq.ft.). As at the valuation date, the property was vacant. RM2,050,000 (Ringgit Malaysia Two Million and Fifty Thousand) The property is situated within I-Parc @ Tanjung Pelepas, Gelang Patah, Johor, Malaysia, which is sited off the southeastern (left) side of Lebuhraya Tanjung Pelepas, travelling from Medini Iskandar towards Tanjung Pelepas Port. This industrial park is located about 14 kilometres due south-west of the Gelang Patah town and about 30 kilometres due south-west of Johor Bahru city centre. This parcel of industrial land is legally identified as Geran 553787, Lot 7428, in the locality of Tanjung Kupang, Gelang Patah, Mukim of Tanjung Kupang, District of Johor Bahru, State of Johor. The property is held for land use terms of perpetuity (freehold) for industrial use. IV-8
Notes: (1) According to our land search conducted at the Johor Registry of Title Office in Johor Bahru on 5 June 2018, the salient details of the title document of the property are extracted as follows. Title No. Geran 553787 Lot No. Lot 7428 Locality Mukim/District/State Annual Tax Land Area Tenure Registered Proprietor(s) Category of Land Use Tanjung Kupang, Gelang Patah Mukim of Tanjung Kupang/Johor Bahru RM1,200.00 7,360 sq.m. (79,222 sq.ft.) Freehold Hong Xin Construction Sdn. Bhd. Perusahaan/Perindustrian (Industrial) Date of Registration 19 March 2017 (2) The property is subject to a mortgage in favour of Hong Leong Bank Berhad dated 12 April 2017. (3) In valuing the property, we have assumed a unit rate of RM1,700 per sq.m. for the industrial land portion of the property. In undertaking our valuation, we have made reference to sales prices of industrial land in the neighbouring districts which have characteristics comparable to the land portion of the property. The prices of industrial land range from about RM2,300 per sq.m. to RM2,900 per sq.m.. The unit rate assumed by us is consistent with the relevant comparables after due adjustments including location, accessibility and size. IV-9
VALUATION REPORT Group II Properties contracted to be acquired by the Group for investment purpose in Malaysia Property Description and tenure Particulars of occupancy Market value in existing state as at 30 April 2018 3. 35, Jalan Sierra Perdana 6/3, Taman Sierra Perdana, 81750 Masai, Johor Darul Takzim, Malaysia The property comprises a three storey terraced shop/office with a total land area of 143.1 sq.m. (1,540 sq.ft.). It was fully completed in 2015 The property has main and ancillary floor areas of about 399 sq.m. (4,338 sq.ft.) and 31 sq.m. (330 sq.ft.), respectively. As at the valuation date, the property was vacant. RM1,100,000 (Ringgit Malaysia One Million And One Hundred Thousand) The subject property is situated within a mixed development project known as Taman Sierra Perdana, Masai, Johor Darul Takzim, which is straddling along the northern and southern sides of Johor Bahru East Coast (Lebuhraya Pantai Timur Johor Bahru). It is located about 19 kilometres by road due east of Johor Bahru city centre. This subject property is legally identified as HS(D) 502582, PTD 206345, in the locality of Sierra Perdana, Mukim of Plentong, District of Johor Bahru, State of Johor. The property is held for land use terms of perpetuity (freehold) for commercial use. IV-10
Notes: (1) According to our land search conducted at the Johor Registry of Title Office in Johor Bahru on 5 June 2018, the salient details of the title document of the property are extracted as follows. Title No. HS(D) 502582 Lot No. PTD 206345 Locality Mukim/District/State Annual Tax Land Area Tenure Registered Proprietor(s) Category of Land Use Sierra Perdana Mukim of Plentong/Johor Bahru RM238.00 143.1 sq.m. Freehold Venice View Development Sdn. Bhd. Building Date of Registration 21 March 2012 (2) As advised by the Company, the consideration of the property has been fully settled and the Company is now obtaining the title to the property. (3) In valuing the property, we have assumed a unit rate of RM2,600 per sq.m. for the commercial premises. In undertaking our valuation, we have made reference to sales prices of commercial premises in the neighbouring districts which have characteristics comparable to the property. The prices of commercial premises range from about RM2,000 per sq.m. to RM2,700 per sq.m.. The unit rate assumed by us is consistent with the relevant comparables after due adjustments including location, accessibility and size. IV-11
VALUATION REPORT Property Description and tenure Particulars of occupancy Market value in existing state as at 30 April 2018 4. 34, Jalan Hijau 2, Taman Pulai Hijauan, 81100 Kangkar Pulai, Johor Darul Takzim, Malaysia The property comprises a double-storey terraced shop/office with a land area of 143 sq.m.. It was fully completed in 2016. The property has main and ancillary floor areas of about 267 sq.m. (2,874 sq.ft.) and 19 sq.m. (204 sq.ft.), respectively. The subject property is situated within a mixed development project known as Taman Pulai Hijauan, Kangkar Pulai, Johor Darul Takzim, which is sited off the southern side of Pontian Highway (Lebuhraya Pontian). It is located about 29 kilometres by road due north-west of Johor Bahru city centre. As at the valuation date, the property was subject a tenancy expiring in April 2020 with a total monthly rent of approximately RM2,600. RM700,000 (Ringgit Malaysia Seven Hundred Thousand) This subject property is legally identified as Geran 552964, Lot 162417 (previously held under HS(D) 510077, Lot PTD 184355), Mukim of Pulai, District of Johor Bahru, State of Johor. The property is held for land use terms of perpetuity (freehold) for commercial use. IV-12
Notes: (1) According to our land search conducted at the Johor Registry of Title Office in Johor Bahru on 5 June 2018, the salient details of the title document of the property are extracted as follows. Title No. Geran 552964 Lot No. Lot 162417 Mukim/District/State Annual Tax Land Area Tenure Registered Proprietor(s) Category of Land Use Mukim of Pulai/Johor Bahru RM238.00 143 sq.m. Interest in perpetuity Grandeur Park Sdn. Bhd. Building Date of Registration 27 February 2017 (2) As advised by the Company, the consideration of the property has been settled and the Company is now obtaining the title to the property. (3) In valuing the property, we have assumed a unit rate of RM2,400 per sq.m. for the commercial premises. In undertaking our valuation, we have made reference to sales prices of commercial premises in the neighbouring districts which have characteristics comparable to the property. The prices of commercial premises range from about RM2,200 per sq.m. to RM2,800 per sq.m.. The unit rate assumed by us is consistent with the relevant comparables after due adjustments including location, accessibility and size. IV-13
VALUATION REPORT Property Description and tenure Particulars of occupancy Market value in existing state as at 30 April 2018 5. C-17-09, Block C, Botanika Apartment, Jalan Persiaran Bayu Puteri 2, Taman Bayu Puteri, 80150 Johor Darul Takzim, Malaysia Botanika Apartment is a proposed residential development erected upon a parcel of land with a site area of approximately 49,080 sq.m. (PN 39962). The development is located at Jalan Persiaran Bayu Puteri 2, Taman Bayu Puteri, Johor Bahru, Johor Darul Takzim, which is sited off the northern of Johor Bahru East Coast (Lebuhraya Pantai Timur Johor Bahru), about 8 kilometres by road due north-east of Johor Bahru city centre. The development is presently under construction. As at the valuation date, the property was under construction and expected to complete in late 2018. RM760,000 (Ringgit Malaysia Seven Hundred And Sixty Thousand) The subject property comprises an apartment unit of the Botanika Apartment with a gross floor area of approximately 111 sq.m. (1,200 sq.ft.), which is referred to Developer s Parcel No. C-17-09, Type B, Storey No. 17 Floor, Building No. Block C, Botanika, together with Accessory Parcel Nos. B-L2-173, B-L2-172 and B-L5-150 held under Master Title PN 39962, Lot 182455, Mukim of Plentong, District of Johor Bahru, Johor Darul Takzim. The property is held for land use in terms of 99 years leasehold interest expiring on 21 January 2097 as per the Master Title, for residential use. IV-14
Notes: (1) According to the Sale and Purchase Agreement entered into between Bayou Bay Development Sdn. Bhd. (Party A) and Hong Xin Construction Sdn. Bhd. (Party B) dated 21 December 2017, Party B has agreed to purchase an apartment unit of a proposed residential development, Botanika Garden which is owned by Party A. Salient terms of the said Sale and Purchase Agreement are listed as follows: (i) Description Storey No.: 17 Floor Building No.: Block C Type: B Accessory Parcel: B-L2-173, B-L2-172 and B-L5-150 (ii) Floor Area 1,200 sq ft (ii) Consideration RM755,800 (iv) Use Residential (v) Area of the Master Title 4.908 hectare (vi) Master Title Master Title PN 39962, Lot 182455, Mukim of Plentong, District of Johor Bahru, Johor Darul Takzim (vii) Land Type Leasehold (viii) Land Use Term Land use term of 99 years expiring on 21 January 2097 (2) As advised by the Company, the consideration of the property has been settled and the Company is now obtaining the title to the property. (3) In valuing the property, we have assumed a unit rate of RM6,800 per sq.m. for the residential premises. In undertaking our valuation, we have made reference to sales prices of residential premises in the neighbouring districts which have characteristics comparable to the property. The prices of residential premises range from about RM6,200 per sq.m. to RM6,700 per sq.m.. The unit rate assumed by us is consistent with the relevant comparables after due adjustments including location, accessibility and size. IV-15