The Board of Directors of CHB wishes to inform that its wholly-owned subsidiary namely Carzo Sdn. Bhd. (“CZSB”) had on 29 July 2025, been served the WS&SC dated 11 July 2025 at the Session Court in Kuala Lumpur.

CZSB is a major subsidiary of the Company incorporated in Malaysia, principally involved in the business of distributing, wholesale and trading in all types of fruits, vegetables and related products and manufacturing and processing all types of fruits, vegetables, nuts and food products.

Pursuant to the WS&SC, CZSB has an outstanding debt of RM122,845.39 owing to CTGSB in respect of fruits supplied to CZSB. The disputes between CTGSB and CZSB, among others, pertaining to the terms of payment for the fruits supplied by CTGSB to CZSB which had resulted the WS&SC was filed against CZSB. Save as disclosed, CZSB is of the view that the confidentiality of other relevant information should be maintained to mitigate the risk that will jeopardize and/or compromise the position of CZSB in the ongoing Court proceeding.

Pursuant to the WS&SC filed by CTGSB, the estimated potential liabilities to CHB and its subsidiaries arising from the WS&SC as follows:

(a) the outstanding sum of RM122,845.39;

(b) interest at 5% per annum on RM122,845.39 calculated from the date of judgement until the date of the receipt of the full payment;

(c) costs; and

(d) such further and equitable reliefs that the Honourable Court deems fit and proper.

The Board of Directors of CHB is of the view that the financial impact resulting from the WS&SC will be the expected losses arising from the litigation as mentioned above.

The Company has sought legal advice on the above matter and further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 29 July 2025.