Proposing a bonus issue of up to 371,945,333 new ordinary shares on the basis of

four bonus shares for every three existing shares

Kuala Lumpur, February 27 2018 – CCM Duopharma Biotech Berhad (Duopharma) has proposed a bonus issue of up to 371,945,333 new ordinary shares on the basis of four (04) bonus shares for every three (03) existing shares, reflecting the company’s stronger fundamentals after it completed its demerger exercise earlier this year. Its Group Managing Director, Leonard Ariff Abdul Shatar said the bonus issue is aimed at rewarding existing shareholders for their loyalty and continuous support as well as increasing the share capital of the company to a level that will better reflect the current scale of operations and assets employed by Duopharma and its subsidiaries. In the statement to the local bourse today, Duopharma also announced that it is declaring its final dividend of six (06) sen per share and the Company is proposing to undertake the Proposed Dividend Reinvestment Plan (DRP), whereby the shareholders will be given the option to elect to reinvest the whole or part of the dividend into new ordinary shares of Duopharma.

The issue price of the new shares will be decided by the Board on a price-fixing date to be announced later. The issue price would not be more than a 10% discount to the five-day volume weighted average market price of Duopharma shares immediately prior to the price-fixing date.

“Shareholders are expected to benefit from their participation in the proposed DRP as the new shares may be issued at a discount and their subscription of new shares will be free from any brokerage fees and other related transaction costs (unless otherwise provided by any statute, law or regulation). However, Shareholders could still elect to receive their
dividend in cash. Barring any unforeseen circumstances and subject to all requisite approvals being obtained, the proposed bonus issue and DRP are expected to be completed in the third quarter of 2018,” added Leonard.

The Company is also proposing to undertake an internal restructuring exercise to streamline the businesses of Duopharma which will involve the transfer of certain entities within the Group. The proposed internal restructuring exercise does not involve the disposal of any of its entities to third parties.

Further, Duopharma today announced that its pre-tax profit for its fourth quarter ended December 31, 2017, decreased by 9.7% to RM12.8 million from RM14.2 million previously. However its year-to-date (YTD) pre-tax profit, however, rose to 64.5%, rising to RM51.8 million from RM31.5million in the previous corresponding period.

“The substantial increase in pre-tax profits was attributed to the stabilization of demand by our key customers and also efficient planning in sourcing for raw materials despite the fluctuation of the exchange rates. The contraction in the Q4 result was due to additional factory maintenance cost incurred as we needed to upgrade our manufacturing and
warehouse facilities as well as our offices in Klang, Bangi and Glenmarie as part of our continuous effort to expand our business,” he added.

Duopharma became an independent public listed Company directly under Permodalan Nasional Berhad (PNB) following its separation from Chemical Company of Malaysia Berhad (CCMB) upon completion of demerger exercise on 28 December 2017. “The demerger enables us to become stronger and more productive to ensure that we are on the right track to realising our goal of becoming one of the top five generic pharmaceutical companies in ASEAN by 2022,” said Leonard. The Board of Directors of Duopharma approved the above proposals at a meeting held
earlier today.