PRG Holdings Berhad Annual Report 2018

On 12 March 2019, a Sale and Purchase Agreement was entered into by Furniweb for the proposed acquisition of 100% interest in Meinaide Holdings Group Limited (“Meinaide Group”). Meinaide Group has a manufacturing plant in People's Republic of China (“PRC”), which specialised in production and sale of polyvinyl chloride (“PVC”) foam boards, polystyrene (“PS”) foam boards, PVC base construction template, automotive interior panel and other plastic products which is of high growth potential in PRC and globally. Subject to satisfactory due diligence results, we believe the proposed acquisition of Meinaide Group will provide an opportunity for the Group to expand its business portfolio into the different sector of production and products. The Group could tap into the new sales channels and broaden our customers portfolio to help its existing products as well. OUTLOOK AND FUTURE PROSPECTS The on-going trade spat between United States with China and economic uncertainties in other countries, risks to the global trade and increased uncertainty in the market, which in turn contribute to a lower global growth rate projections. This may lead to uncertain forecast in the demand among some of our customers who may prefer to take a more prudent stance which will affect their procurement plan in the near term. We anticipate that the outlook on the existing business segment for the year to remain challenging and competitive in line with the lower global growth projection. We have also made efforts to move on new opportunities and have announced our ventured into retail business during the financial year and recent announcement on the proposed acquisition of Meinaide Group. The Group will continue to strive to enhance its market position for its business segments and will also actively consider new opportunities for growth. 2018 A N N U A L R E P O R T 12 chairman’s statement (continued)