The Company wishes to announce that the Company has on 30 September 2025 received a Letter of Demand from Messrs Shook Lin & Bok (“SLB”) (“Letter of Demand”) acting on behalf of Tan Chong Industrial Equipment Sdn Bhd ("TCIE"), demanding for sum of RM26,154,635.21 from Transnasional Express Sdn Bhd ("Transnasional"), Plusliner Sdn Bhd ("Plusliner"), Syarikat Kenderaan Melayu Kelantan Berhad ("SKMK"), Syarikat Rembau Tampin Sdn Bhd ("SRT"), Kenderaan Langkasuka Sdn Bhd ("Langkasuka") (all of which were previously subsidiaries of EPICON) and EPICON (“Demanding Sum”) arising from the Settlement Agreement dated 4 July 2016.

Further details of the events relating to the above matter is as attached to this announcement. 

The Company wishes to state that it does not acknowledge and denies the claim in its entirety and has sought legal advice in respect of such matter.

The Company further wishes to inform that the Company has obtained a letter of indemnity dated 13 October 2021 from Nadicorp Holdings Sdn Bhd (“Nadicorp”), whereby Nadicorp agreed to indemnify and keep the Company and its subsidiaries (collectively, the “Group”) fully and effectively indemnified and harmless from and against amounts owing by the Group, as well as all claims, costs, damages or penalties which may be brought, suffered or levied against the Group as a result of any default or late payment of amounts owing by the Group, save and except for the amounts owing by Transnational Builder Sdn Bhd, to its creditors, lenders, employees, former employees and any government agency.

The Company had on 16 August 2023 completed the disposal of Park May Berhad (being the holding company of amongst others Transnasional, Plusliner, SKMK, SRT, and Langkasuka) to Nadicorp. Accordingly, Transnasional, Plusliner, SKMK, SRT, and Langkasuka are no longer subsidiaries of the Company.  

Pursuant to the Letter of Demand, TCIE via SLB demands full Demanding Sum together with late payment interest at the rate of 0.75% per calendar month calculated on daily basis from 1 April 2025 to the date of full payment within fourteen (14) days from the date of the Letter of Demand. 

The Company has appointed solicitors to handle and reply to the Letter of Demand, who are of the view that the Company has a good defence against such claims made in the Letter of Demand.

At this juncture, the Company does not foresee any financial or operational impact from this matter. The Company will continue to seek legal advice from its solicitors on this matter and next course of action and will make necessary announcements should any material developments arise.

This announcement is dated 1 October 2025.