1.

INTRODUCTION

The Board of Directors of Titijaya (“Board”) wishes to announce that Titijaya’s wholly owned subsidiary, Titijaya Resources Sdn. Bhd. (“TRSB”) had on 28 April 2020 entered into a strategic collaboration agreement with Sinopharm Medical Equipment QuanZhou Co. Ltd (“SMEQ”), a foreign company incorporated in The People’s Republic of China (“Agreement”) to regulate the affairs and the respective rights and obligations of TRSB and SMEQ as collaborative partners to develop business in the marketing and sales, trading and supply of medical and hospital equipment and products and medical industry related real estate.

Further details on the Agreement is set out in the ensuing sections of this announcement.

2.

DETAILS OF THE PARTIES TO THE AGREEMENT

2.1

Titijaya Resources Sdn. Bhd.

TRSB was incorporated in Malaysia on 20 January 2014 and is principally engaged in property development and investment holding.

2.2

Sinopharm Medical Equipment QuanZhou Co. Ltd

SMEQ was incorporated in The People’s Republic of China, is part of Sinopharm China National Medical Device Company. While China National Pharmaceutical Group Corporation (hereinafter referred to as “Sinopharm Group”) was founded in 1998 as a holding company for Sinopharm China National Medical Device Company. Sinopharm Group is a large healthcare group directly under the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, with a full chain in the industry covering R&D, manufacturing, logistics and distribution, retail chains, healthcare, engineering services, exhibitions and conferences, international business and financial services.

3.

SALIENT TERMS AND RATIONALE OF THE AGREEMENT

3.1

TRSB and SMEQ hereby to collaborate to develop business in marketing and sales, trading and supply of medical and hospital equipment and products, medical industry related real estate which are within their scope of business (hereinafter referred to as “Business”) for both private and public medical facilities by leveraging into Sinopharm Group’s and/or SMEQs supply and value chain throughout The People’s Republic of China as well as TRSB’s and Sinopharm Group’s networks.

The main immediate focus shall be but not limited to medical supply for combating Covid-19, such as Personal Protection Equipment, RT-PCR Test Kit, Rapid Test Kit, Mobile Test Lab, and other necessity. For other businesses of the Sinopharm Group which is not within the scope of business of SMEQ, SMEQ will assist TRSB to develop such scope of business by coordinating with Sinopharm Group to accommodate the demands of TRSB.

3.2

TRSB shall be responsible and undertake in the area of medical industry related real estate by providing infrastructures, land and facilities for the medical industry operators recommended by Sinopharm Group or SMEQ.

4.

DURATION

The Agreement shall remain in force for a period of five (5) years and subject to a renewable period of five (5) years. The terms of the renewable period shall be subject to further agreement between TRSB and SMEQ.

5.

TERMINATION TERM

During the validity of this Agreement, it can only terminate the Agreement by mutual consent from both TRSB and SMEQ.

6.

PROSPECTS AND RISK FACTORS

The Agreement does not entail different risks other than those applying to the existing business of Titijaya being an investment holding company and will not have any effect on the issued share capital and substantial shareholdings of Titijaya, The Agreement is also not expected to have a material effect on the net assets per share, earnings per share and gearing of Titijaya Group.

7.

APPROVALS REQUIRED

The Agreement is not subjected to any approvals of shareholders and the relevant government authorities being obtained.

8.

INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM

None of the Directors and/or major shareholders of Titijaya and/or persons connected with them have any interest, either direct or indirect, in the Agreement.

9.

DIRECTORS’ STATEMENT

The Board, having considered all aspects of the Agreement, is of the opinion that the Agreement is in the best interest of the Titijaya Group.

10.

DOCUMENTS AVAILABLE FOR INSPECTION

A copy of the Agreement will be made available for inspection at the registered office of the Company at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan during normal office hours from Monday to Friday (except for public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 29 April 2020.