Further to the Compay's announcement made on 15 July 2025 in relation to the winding-up petition served by Unity Force Sdn Bhd (“Petitioner”) against Handal Imro Sdn Bhd (“Respondent”), a wholly-owned major subsidiary of Handal Energy Berhad (“HEB” or “the Company”), the Board of Directors of HEB wishes to provide the following additional information:

1. Circumstances Leading to the Serving of the Winding-Up Petition

The Petition was filed by Unity Force Sdn Bhd on 19 June 2025 in the High Court of Sabah and Sarawak at Kota Kinabalu and served on the Respondent on 10 July 2025. The Petition is premised on a judgment in default obtained in Sabah.

The Respondent was not afforded an opportunity to respond to the underlying claim prior to judgment. Upon becoming aware of the matter, the Company took immediate steps to appoint solicitors to contest the Petition and to initiate appropriate legal action. The Company is advised that it has good grounds to seek relief, and the matter is now subject to legal proceedings.

2. Cost of Investment in Handal Imro Sdn Bhd

As disclosed in the Company’s latest Annual Report for the financial period ended 30 June 2024, the total cost of investment in Handal Imro Sdn Bhd is RM25.9 million.

3. Expected Losses Arising from the Winding-Up Petition

There is no material operational impact on the Group arising from the Petition. The Respondent remains a going concern and continues to operate as normal.

From a financial standpoint, no material losses are expected in respect of this matter, other than legal costs associated with the ongoing proceedings. As a prudent measure, the Company is prepared to fully satisfy the claim, if necessary, to safeguard the interests of the Group and its stakeholders.

The Company will continue to monitor the situation closely and will make further announcements as and when there are material developments.

This announcement is dated 29 July 2025.