Reference is made to the company’s announcements made on 19 March 2020, 26 June 2020, 28 August 2020, 24 November 2020 and 23 February 2021 in relation to the Memorandum of Understanding (“MOU”) entered into between Xin Hwa Holdings Berhad (“Company”) and PT Pos Logistik Indonesia (“POS”). The Board of Directors of the company announced that the MOU, which came into effect on 19 March 2020, has expired on 19 March 2021 (“MOU Expiry”). Upon the MOU Expiry, the MOU shall have no further force or effect and neither party shall have any claim whatsoever against the other, whether directly or indirectly in respect of the MOU. The MOU Expiry will not have any material financial impact on the Company and its subsidiaries. The company is still desirous to partner with POS on any future profitable business prospects and ventures in the Indonesian market when the COVID-19 pandemic has subsided and travel restriction is lifted.