Property Valuation Report

THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III — PROPERTY VALUATION REPORT

The following is the text of a letter and valuation certificates prepared for the purpose of incorporation in this document received from Ravia Global Appraisal Advisory Ltd., an independent valuer, in connection with its valuations as at 30 April 2018 of the properties held by our Group.

Unit B, 7/F, Chang Pao Ching Building, No. 427–429 Hennessy Road, Wan Chai, Hong Kong [email protected] Tel: (852) 3624 7882 Fax: (852) 3007 8501

[REDACTED]

FSM Holdings Limited 12 TUAS LINK 1 SINGAPORE 638595

Dear Sirs/Madam,

Re: Property Valuation of Various Properties in Singapore and Malaysia

In accordance with the instructions of FSM Holdings Limited (the “Company”, and together with its subsidiaries, the “Group”) to value the properties held by the Group in Singapore and Malaysia, we confirm that we have carried out inspections, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market values of the properties as at 30 April 2018 (the “Date of Valuation”) for the purpose of incorporation in the document of the Company dated [REDACTED].

1. BASIS OF VALUATION

Our valuations of properties are our opinion of the market values which we would define as intended to mean “the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”.

Market value is understood as the value of an asset or liability estimated without regard to costs of sale or purchase (or transaction) and without offset for any associated taxes or potential taxes.

2. PROPERTY CATEGORIZATION

In the course of our valuations, the properties held by the Group are categorized into the following groups:

Group I – Properties held by the Group for owner-occupation in Singapore; and

Group II – Property held by the Group owner-occupation in Malaysia

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3. VALUATION METHODOLOGY

We have valued the properties by direct comparison approach assuming sale of the properties by making reference to comparable sale transactions as available in the relevant market.

4. TITLE INVESTIGATION

For the properties in Group I in Singapore, we have carried out title searches at the Singapore Land Authority. However, we have not scrutinized all the original documents to verify ownership or to ascertain the existence of any lease amendments which may not appear on the copies handed to us.

In the course of our valuation of the property in Malaysia, we have assumed that, unless otherwise stated, the transferable land use rights of the property for its term at nominal annual land use fees have been granted and that any premium payable has already been fully paid. We have relied on the information and advice given by the Group and its legal adviser, Christopher & Lee Ong, regarding the title of the property and the interests of the Group in the property. In valuing the property, we have assumed that the Group has an enforceable title to the property and has free and uninterrupted rights to use, occupy or assign the property for the whole of the unexpired land use term as granted.

We have been provided with extracts of documents relating to the title of the property in Malaysia. We have not searched the original documents to verify ownership or to ascertain any amendment which may not appear on the copies handed to us. We are also unable to ascertain the title of the property and we have therefore relied on the advice given by the Group and its legal adviser regarding the Group’s interests in the property in Malaysia.

5. VALUATION ASSUMPTIONS

Our valuations have been made on the assumption that the owner sells the properties in the market in their existing states without the benefit of deferred term contracts, leasebacks, joint ventures, management agreements or any similar arrangements which would serve to affect the values of such properties.

In addition, no account has been taken of any option or right of pre-emption concerning or affecting the sale of the properties and no allowance has been made for the properties to be sold in one lot or to a single purchaser.

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6. SOURCE OF INFORMATION

In the course of our valuations, we have relied to a very considerable extent on the information provided by the Group and have accepted advice given to us on such matters as planning approvals or statutory notices, easements, tenure, identification of properties, particulars of occupation, site/floor areas, ages of buildings and all other relevant matters which can affect the values of the properties. All documents have been used for reference only.

We have no reason to doubt the truth and accuracy of the information provided to us. We have also been advised that no material facts have been omitted from the information supplied. We consider that we have been provided with sufficient information to reach an informed view, and have no reason to suspect that any material information has been withheld.

7. VALUATION CONSIDERATION

Our inspection was performed by Dr. Alan W K Lee in May 2018. We have inspected the exterior and, where possible, the interior of certain properties. No structural survey has been made in respect of the properties. However, in the course of our inspections, we did not note any serious defects. We are not, however, able to report that the properties are free from rot, infestation or any other structural defects. No tests were carried out on any of the building services.

We have not carried out on-site measurement to verify the site/floor areas of the properties under consideration but we have assumed that the site/floor areas shown on the documents handed to us are correct. Except as otherwise stated, all dimensions, measurements and areas included in the valuation certificates are based on information contained in the documents provided to us by the Group and are therefore approximations.

No allowance has been made in our valuations for any charges, mortgages or amounts owing on the properties nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of an onerous nature which could affect their values.

In valuing the properties, we have complied with the requirements set out in Chapter 5 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and undertaken in accordance with The HKIS Valuation Standards of The Hong Kong Institute of Surveyors, which incorporates the International Valuation Standards (“IVS”).

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8. REMARKS

Unless otherwise stated, all monetary amounts stated in our valuations are in Singapore Dollars (“S$”) and Malaysian Ringgit (“RM”). Where appropriate, the exchange rates we have adopted are S$1 to HK$5.8672 and RM1 to HK$1.9740.

Our Summary of Values and Valuation Certificates are attached herewith.

Yours faithfully, For and on behalf of RAVIA GLOBAL APPRAISAL ADVISORY LIMITED

Dr. Alan W K Lee PhD(BA) MFin BCom(Property) MHKIS RPS(GP) AAPI CPV CPV(Business) Director and Principal Valuer

Note: Dr. Alan W K Lee is a Registered Professional Surveyor (General Practice), a member of Hong Kong Institute of Surveyors and an Associate of Australian Property Institute. He has over 14 years’ valuation experience in Hong Kong, Macau, the PRC, the Asia Pacific Region, European countries and American countries.

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SUMMARY OF VALUES

GroupI–Properties held by the Group for owner-occupation in Singapore

Market Value in Existing State as at No. Property 30 April 2018

1. 12 Tuas Link 1, Singapore 638595 S$7,100,000

2. 15 Tuas South Street 1, Singapore 628064 S$2,400,000

Total: S$9,500,000

Group II – Property held by the Group owner-occupation in Malaysia

Market Value in Existing State as at No. Property 30 April 2018

3. 3 Industrial buildings situated on RM7,530,000 Geran 136424 Lot 111380, Geran 136425 Lot 111381 and Geran 136426 Lot 111382 in Mukim Plentong, Johor Bahru District, Johor, (also known as Nos. 33, 35 and 37, Jalan Gemilang 3, Taman Perindustrian Cemerlang, 81800 Ulu Tiram, Johor) Malaysia

Total: RM7,530,000

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VALUATION CERTIFICATE

GroupI–Properties held by the Group for owner-occupation in Singapore

Market Value in Existing State as at 30 April No. Property Description and Tenure Particulars of Occupancy 2018

1. 12 Tuas Link 1, The property comprises a parcel of The property is occupied by S$7,100,000 Singapore 638595 land with a site area of 4,130.5 sq.m. the Group for industrial use. (“Singapore and various buildings and ancillary Property I”) structures erected thereon, which were completed in about 1995.

The property has a total gross floor area (“GFA”) of approximately 5,239.91 sq.m.

The property is a leasehold estate and it has been granted for a term expiring on 17 June 2085.

Notes:

1. The registered owner of the property is Jurong Town Corporation.

2. The property is leased to the Group for a term of 30 years commenced on 1 November 1995 with a total consideration for the rental period of S$2,824,000.

3. It is located along Tuas Bay, about 32 km from the city centre. It is situated within the Jurong Industrial Estate managed by the Jurong Town Corporation which features land for industrial development and factories.

The surrounding locality comprises standard/purpose-built factories designated for general industry use and vacant land for future developments. It has easy access to other parts of Singapore via Ayer Rajah Expressway and Pan Island Expressway.

4. In undertaking our valuation, we have made reference to transactions within the subject property as well as other similar properties within the same district. The unit rates of the transactions of similar properties range from approximately S$98 to S$257 per sq ft.

Details of the transactions are as follow:

Contract Date Address Unit Area Price Price Property Tenure (sqft) ($psf) (S$)

5 Jun 17 Tuas Link 2 66,145 98 6,500,000 Factory 30+30 Yrs From 16/Feb/1996 3 Mar 17 Tuas Link 2 54,003 106 5,750,000 Factory 30+29 Yrs From 16/Dec/1996 24 Feb 14 Tuas Link 2 53,992 180 9,700,000 Factory 30 Yrs From 01/Apr/1999 14 Jun 13 Tuas Link 2 14,165 257 3,640,000 Factory 30 Yrs From 01/Jun/1997

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Market Value in Existing State as at 30 April No. Property Description and Tenure Particulars of Occupancy 2018

2. 15 Tuas South The property comprises a parcel of The property is occupied by S$2,400,000 Street 1, Singapore land with a site area of 1,421.9 sq.m. the Group for industrial use. 638064 and various buildings and ancillary (“Singapore structures erected thereon, which Property II”) were completed in about 2017.

The property has a total gross floor area (“GFA”) of approximately 944 sq.m.

The property is a leasehold estate and it has been granted for a term expiring on 14 April 2094.

Notes:

1. The registered owner of the property is Jurong Town Corporation.

2. The property is leased to the Group for a term of 30 years commenced on 1 January 2018 with a land rent of S$1,328.29 per month per annum and building premium of S$2,398,704.

Details of the transactions are as follow:

Contract Date Address Unit Area Price Price Property Tenure (sqft) ($psf) (S$)

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Group II – Property held by the Group owner-occupation in Malaysia

Market Value in Existing State as at 30 April No. Property Description and Tenure Particulars of Occupancy 2018

3. 3 Industrial The property comprises 3 parcel of The property is occupied by RM7,530,000 buildings situated lands with a site area of 4,013.4114 the Group for industrial use. on Geran 136424 sq.m. and various buildings and Lot 111380, Geran ancillary structures erected thereon, 136425 Lot 111381 which were completed in about 2003. and Geran 136426 Lot 111382 As advised by the Group, the in Mukim Plentong, property has a total gross floor area Johor Bahru (“GFA”) of approximately District, Johor, 27,900 sq.ft. (also known as Nos. 33, 35 and 37, The property is a freehold land. Jalan Gemilang 3, Taman Perindustrian Cemerlang, 81800 Ulu Tiram, Johor) Malaysia (“Malaysia Property I”)

Notes:

1. The registered owner of the property is FSM Technologies (M) SDN. BHD.

2 In undertaking our valuation, we have made reference to transactions within the subject property as well as other similar properties within the same district. The unit rates of the transactions of similar properties range from approximately RM264 to RM366 per sq ft.

Details of the transactions are as follow:

Price (Gross) SPA Date Address Tenure Land Area Gross Area Per sq.ft. Price

09/11/2017 JALAN CANGGIH 9 FREEHOLD 12,800ft2 3,879sq.ft. RM366 RM1,500,000 03/11/2017 JALAN MAJU 5 FREEHOLD 9,600ft2 3,825sq.ft. RM264 RM1,800,000 29/09/2017 JALAN GEMILANG 1 FREEHOLD 39,234ft2 17,760sq.ft. RM277 RM6,500,000 24/08/2017 JALAN GEMILANG 1 FREEHOLD 41,280ft2 17,438sq.ft. RM310 RM4,600,000

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3. We have been provided with a Legal Opinion on the property prepared by the Group’s legal adviser, which contains, inter alia, the following information:

Location/Address : Geran 136424 Lot 111380, Mukim Plentong, Daerah Johor Bahru, Negeri Johor bearing postal address at 33, Jalan Gemilang 3, Taman Perindustrian Cemerlang, 81800 Ulu Tiram, Johor

Remarks : Category of Land Use: Industrial

Express conditions:

(i) The land shall be used for a Factory for the purposes of Lightweight Industrial use and other uses related to it, constructed in accordance with the approved plan by the relevant Local Authority

(ii) All impurities and pollutants resulting from these activities shall be channelled/disposed of to the designated place specified by the Appropriate Authorities.

(iii) All policies and conditions as may be prescribed and enforced from time to time by the Appropriate Authorities shall be complied with.

Restriction in Interest:

The land contained in the title shall not be transferred by any means except if the factory building, as provided for in the express condition, has been constructed in accordance with the plan approved by the relevant local authority.

Location/Address : Geran 136425 Lot 111381, Mukim Plentong, Daerah Johor Bahru, Negeri Johor bearing postal address at 35, Jalan Gemilang 3, Taman Perindustrian Cemerlang, 81800 Ulu Tiram, Johor

Remarks : Category of Land Use: Industrial

Express conditions:

(i) The land shall be used for a Factory for the purposes of Lightweight Industrial use and other uses related to it, constructed in accordance with the approved plan by the relevant Local Authority.

(ii) All impurities and pollutants resulting from these activities shall be channelled/disposed of to the designated place specified by the Appropriate Authorities.

(iii) All policies and conditions as may be prescribed and enforced from time to time by the Appropriate Authorities shall be complied with.

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Restriction in Interest:

(a) The land contained in the title shall not be transferred by any means except if the factory building, as provided for in the express condition, has been constructed in accordance with the plan approved by the relevant local authority.

(b) The land contained in this title if it is transferred to a Bumiputra or a Bumiputra Company shall not be later sold, leased or transferred by any means to a non-Bumiputra or a non-Bumiputra Company without the consent of the State Authority.

Location/Address : Geran 136426 Lot 111382, Mukim Plentong, Daerah Johor Bahru, Negeri Johor bearing postal address at 37, Jalan Gemilang 3, Taman Perindustrian Cemerlang, 81800 Ulu Tiram, Johor

Remarks : Category of Land Use: Industrial

Express conditions:

(i) The land shall be used for a Factory for the purposes of Lightweight Industrial use and other uses related to it, constructed in accordance with the approved plan by the relevant Local Authority.

(ii) All impurities and pollutants resulting from these activities shall be channelled/disposed of to the designated place specified by the Appropriate Authorities.

(iii) All policies and conditions as may be prescribed and enforced from time to time by the Appropriate Authorities shall be complied with.

Restriction in Interest:

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