CAPITAL EXPENDITURES, DIVESTMENTS AND COMMITMENTS

Our major capital expenditures and divestments in FY2012, FY2013 and FY2014, and for the period from 1 January 2015 up to the Latest Practicable Date are set out below:

Capital Expenditures FY2012 (S$’000) FY2013 (S$’000) FY2014 (S$’000) From 1 January 2015 to the Latest Practicable Date (S$’000)

In FY2012, we incurred capital expenditures of approximately S$5.11 million which mainly arose from:

(a) the acquisition of fi ve (5) investment properties located at (i) 421 Tagore Industrial Avenue

#01-22, Tagore 8, Singapore 787805; (ii) 421 Tagore Industrial Avenue #01-23, Tagore 8, Singapore 787805; (iii) 8B Admiralty Street #01-06, 8B@Admiralty, Singapore 757440; (iv) 421 Tagore Industrial Avenue #01-29, Tagore 8, Singapore 787805; and (v) 8B Admiralty Street #01-07, 8B@Admiralty, Singapore 757440;

(b) progress payments for eight (8) investment properties under construction located at: (i) 23

New Industrial Road #02-08, Solstice Business Centre, Singapore 536209; (ii) 2 Kallang Avenue #07-31 Singapore 339407; (iii) 65 Ubi Road 1 #02-65 Oxley Bizhub, Singapore 408729; (iv) 9 Tagore Lane #02-07, 9@Tagore, Singapore 787472; (v) 9 Tagore Lane #03- 16, 9@Tagore, Singapore 787472; (vi) 9 Tagore Lane #02-06, 9@Tagore, Singapore 787472; (vii) 5 Soon Lee Street #01-66, Pioneer Point, Singapore 627607; and (viii) 5 Soon Lee Street #01-67, Pioneer Point, Singapore 627607; and

(c) progress payment for two (2) properties under construction for our operational use located

at (i) 3 Soon Lee Street #01-09, Pioneer Junction, Singapore 627607; and (ii) 9 Tagore Lane #01-16, 9@Tagore, Singapore 787472.

In FY2013, we incurred capital expenditures of approximately S$6.38 million which mainly arose from: (a) progress payments for ten (10) investment properties under construction located at: (i) 23 New

Industrial Road #02-08, Solstice Business Centre, Singapore 536209; (ii) 2 Kallang Avenue #07-31 Singapore 339407; (iii) 65 Ubi Road 1 #02-65 Oxley Bizhub, Singapore 408729; (iv) 5 Soon Lee Street #01-66, Pioneer Point, Singapore 627607; (v) 5 Soon Lee Street #01-67, Pioneer Point, Singapore 627607; (vi) 421 Tagore Industrial Avenue #01-22, Tagore 8, Singapore 787805; (vii) 421 Tagore Industrial Avenue #01-23, Tagore 8, Singapore 787805; (viii) 8B Admiralty Street #01-06, 8B@Admiralty, Singapore 757440; (ix) 421 Tagore Industrial Avenue #01-29, Tagore 8, Singapore 787805 and (x) 8B Admiralty Street #01-07, 8B@Admiralty, Singapore 757440; and

(b) progress payment for a property under construction for our operational use located at 3 Soon Lee

Street #01-09, Pioneer Junction, Singapore 627607.

In FY2014, we incurred capital expenditures of approximately S$3.02 million which mainly arose from:

(a) progress payments for fi ve (5) investment properties under construction located at: (i) 5 Soon Lee

Street #01-66, Pioneer Point, Singapore 627607; (ii) 5 Soon Lee Street #01-67, Pioneer Point, Singapore 627607; (iii) 421 Tagore Industrial Avenue #01-22, Tagore 8, Singapore 787805; (iv) 421 Tagore Industrial Avenue #01-23, Tagore 8, Singapore 787805; and (v) 421 Tagore Industrial Avenue #01-29, Tagore 8, Singapore 787805; and

(b) the acquisition of four (4) motor vehicles for the replacement of old motor vehicles which we

disposed.

Our acquisition of investment properties were fi nanced using a combination of cash fl ows from operations and property loans from fi nancial institutions.

Divestments FY2012 (S$’000) FY2013 (S$’000) FY2014 (S$’000) From 1 January 2015 to the Latest Practicable Date (S$’000)

Properties used for operations – – – –

Motor vehicles and forklifts – 10 6 –

Machinery and equipment – – – –

Offi ce equipment – 1 1 –

Furniture and fi ttings – – – –

Renovation – – – –

Investment properties 1,302 3,612 – –

Total 1,302 3,623 7 –

In FY2012, we disposed two (2) investment properties located at: (i) 100D Pasir Panjang #03-02, Singapore 118520; and (ii) 100D Pasir Panjang #03-03, Singapore 118520.

In FY2013, we disposed four (4) investment properties located at: (i) 2 Kallang Ave #07-31 Singapore 339407; (ii) 5 Dunlop Street Singapore 209335; (iii) 7 Dunlop Street Singapore 209337; and (iv) 8A Admiralty Street #06-20 Food Xchange @ Admiralty Singapore 757437.

In FY2014, we disposed motor vehicles and forklifts with an aggregate net book value of approximately S$6,000.

Commitments

Capital commitments

As at the Latest Practicable Date, we had capital commitments amounting to approximately S$2.36 million relating to outstanding payment in respect of our acquisition of three (3) investment properties located in a light industrial development at #01-22, #01-23 and #01-29, 421 Tagore Industrial Avenue, Tagore 8, Singapore 787805. As at the Latest Practicable Date, we have secured property loans to fi nance the payment for these investment properties.

Operating lease commitments – payables

We lease a building and units from non-related third parties under non-cancellable operating lease agreements. The leases have varying terms and renewal rights. Please refer to the section entitled “General Information on our Group – Properties and Fixed Assets” for details of our leased properties. We intend to fi nance our operating lease commitments through internally generated funds. Our future minimum lease payables under non-cancellable operating leases as at 31 December 2012, 2013 and 2014 and as at the Latest Practicable Date are as follows:

As at 31 December 2012 (S$’000) As at 31 December 2013 (S$’000) As at 31 December 2014 (S$’000) As at the Latest Practicable Date (S$’000)

Our operating lease payables represent rentals payable by us for the land, offi ce and retail branches. The leases are negotiated for terms of between two (2) to 60 years with an option to extend for one (1) to two (2) years from the expiry of the lease terms. Rental amounts are fi xed for the fi rst year and are subject to annual revision which will be carried out based on the market rate prevailing on the respective revision dates. The operating lease commitments estimated above were determined assuming the same rental expense fi xed in the fi rst year continues for the remaining terms of lease.

Operating lease commitments – receivables

We lease out certain of our investment properties to non-related third parties under non-cancellable operating leases. The lessees are required to pay lease rentals which are subject to periodic rent revisions based on the terms of the lease agreements.

Our future minimum lease receivables under non-cancellable operating leases as at 31 December 2012, 2013 and 2014 and as at the Latest Practicable Date are as follows:

As at 31 December 2012 (S$’000) As at 31 December 2013 (S$’000) As at 31 December 2014 (S$’000) As at the Latest Practicable Date (S$’000)

Not later than one (1) year 240 123 227 409

Later than one (1) year and

not later than fi ve (5) years 128 2 261 334

Total 368 125 488 743

Our operating lease receivables are negotiated for a fi xed term of one (1) to three (3) years. The operating lease commitments estimated above are determined by using the revision rates as indicated in the lease agreements for the remaining lease term.

INFLATION

During the Period under Review, our fi nancial performance was not materially affected by infl ation.

SEASONALITY

Generally, our business is not subject to any signifi cant seasonal fl uctuations that will affect our operations and business. However, our revenue from the Distribution Business segment may not be uniform throughout the year due to periods such as the Chinese New Year season.

FOREIGN EXCHANGE MANAGEMENT