HLH

HLH: Entered into joint operations agreement with Zhong Fu International Investment to cultivate, process, and produce cassava (or maize and sugarcane) at HLH’s 9,985 hectares of farmland plantation in the Kampong Speu Province in Cambodia. The term of the agreement is 5 years beginning 2014, with an option to renew at the end of 2018 for another 5 years. Annual payment by Zhong Fu will be in the form of cassava produce amounting to US$3m for each of first two years (2014-15) and US$4m each for next three years (2016-18). During the term of this joint operations, Zhong Fu has the option to purchase the Plantation for US$60m subject to regulatory approval and compliance of laws. The total net book value of the 9,985 hectares of plantation and infrastructure assets provided to Zhong Fu is US$22.6m as at 30 Sep 13.