The Board of Directors of QAF Limited announce that one of Gardenia Malaysia's bakery factories has shut down as its operations have been affected by the severe flooding arising from the recent torrential heavy rains in Peninsular Malaysia. None of the employees at the Malaysian Factory were injured. The shutdown is for a currently undetermined duration as the damage caused by the flood is still being assessed.

The Group's other 6 Malaysian bakery factories remain operational. The flood has affected part of the inventories and property, plant and equipment and the extent of the damage is currently being ascertained. For purposes of financial reporting, an assessment of the loss of inventories and property, plant and equipment will be undertaken.

The management is currently taking measures to mitigate the impact of the shutdown and damage caused to property, plant and equipment.