LEONG HUP HOLDINGS BERHAD - Announcements

Note:-
* Deemed interest through LHHB.
For the financial year ended 31 March 2000, Atlasprise recorded a profit after taxation of
RM0.084 million. Its audited NTA value as at 31 March 2000 was RM1.847 million. For
the financial year ended 31 March 2001, Atlasprise recorded an unaudited profit after
taxation of RM0.072 million.
Further information on Atlasprise is set out in Appendix 3.
2.3 Budiman Land
The Budiman Land comprises two (2) pieces of freehold agricultural land held under
H.S.(D) 235359, P.T.D. 71014 and H.S.(D) 235361, P.T.D. 71016 in Mukim of Pulai,
District of Johor Bahru, State of Johor measuring in total approximately 855.21 acres.
Budiman had obtained the final approval of the Johor State Authority on 22 October 1999
for the alteration of the category of land use of the Budiman Land and the subdivision
thereof into individual lots for the purpose of a mixed development (“Budiman
Approval”). The proposed development on the Budiman Land comprises a total of 11,132
units of development comprising terrace houses, semi-detached houses, detached houses,
apartments, flats and shops. The proposed development has yet to commence as the time of
commencement would depend on the conditions in the property market. The balance of the
Budiman Land after the Proposed Disposal of 73.845-Acre Land, Proposed Disposal of
132.395-Acre Land and Proposed Disposal of 119.82-Acre Land would be 529.15 acres.
A valuation of the 73.845-Acre Land, 132.395-Acre Land and 119.82-Acre Land
collectively was carried out by Colliers Jordan Lee & Jaafar (JH) Sdn. Bhd., an
independent firm of professional valuers, on 28 February 2001 using the comparison
method, and checked by the residual method, pursuant to which the said firm determined
the aggregate open market value of the said lands with the benefit of the Budiman
Approval, to be RM62,500,000 or approximately RM4.40 per square foot. This translates
into an open market value of RM163.913 million for the entire Budiman Land. As the
estimated net book value of the Budiman Land as at 31 March 2001 (being the reference
date used for arriving at the consideration for the First and Second Proposed Acquisition of
Budiman Shares) is RM153.470 million, the revaluation surplus is estimated to be
RM10.443 million. The net book value incorporates the cost of the Budiman Land
amounting to RM117.591 million and development expenditure amounting to RM35.879
million which includes capitalised interest, subdivision costs and other incidental costs.
The revaluation surplus will not be incorporated into the accounts of Budiman, as the sole
purpose of the revaluation was to establish a market value for the 73.845-Acre Land,
132.395-Acre Land and 119.82-Acre Land and the adjusted NTA value of Budiman.
The audited net book value of the Budiman Land as at 31 March 2000 was RM147.865
million. On a proportionate basis, the net book value of the 73.845-Acre Land, 132.395-
Acre Land and 119.82-Acre Land collectively as at 31 March 2000 was RM56.38
million.
The Budiman Land is currently charged to OCBC Bank (Malaysia) Berhad (“OCBC”) for
securing the credit facilities granted to Budiman towards completion of the purchase of the
Budiman Land.
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