Purpose

Proposed Utilisation

RM

Actual Utilisation as at 21 December 2022

Balance unutilised as at 21 December 2022

RM

Announced timeframe for utilisation (from the date of listing of the placement shares of 25 February 2021)

Additional timeframe

Revised timeframe for utilisation (from the date of listing of the placement shares of 25 February 2021)

Details/Reasons for extension of time

Set up costs for a new distribution company

1,150,000

Nil

1,150,000

Within 21 months

12 months

Within 33 months

On 5 January 2021, Dolphin had accepted the letter of award from Uncle Don’s Manufacturing Sdn Bhd for the distribution of Uncle Don’s brand of chilli and tomato sauce.

The distribution business requires amongst others, a large clientele base to achieve economies of scale and be profitable. However, as many restaurants were operating at limited capacity during the movement control order (“MCO”) period, including the period between January 2021 (when the letter of award was accepted) to April 2022 (when Malaysia announced its transition into the endemic phase), interests to purchase Uncle Don’s brand of chilli and tomato sauce from the Dolphin Group was lackluster.

As at 23 December 2022, the management of Dolphin is still in discussions on the collaboration for the distribution of Uncle Don’s brand of chili and tomato sauce to retailers and restaurants. As market sentiments only began to improve since April 2022, the extension of time is needed in order to provide Dolphin with additional time to finalise this business proposal as well as to plan for the distribution and marketing office.

Over the next 12 months, Dolphin intends to undertake, amongst others, the following:

• Discuss with potential restaurants and retailers, including re-engaging the restaurants and retailers which Dolphin had approached earlier during the MCO period;

• Secure a premise at strategic location for the distribution business; and

• Recruit the relevant marketing and logistic personnel.