The Board of Directors of Chin Hin Group Berhad (“CHGB” or “the Company”) wishes to announce that Kayangan Kemas Sdn. Bhd. (“KKSB”), a subsidiary of the Company, had on 30 December 2025 submitted a Demand for Arbitration dated 30 December 2025 (“Demand for Arbitration”) in respect of a claim against Exyte Malaysia Sdn. Bhd. (“Exyte”). The Demand for Arbitration had been submitted to the American Arbitration Association (“AAA”) in accordance with the Construction Industry Arbitration Rules of the AAA.

1. Circumstances Leading to the Submission of the Demand for Arbitration 

By a letter of award dated 14 June 2022 (“LOA”), Exyte appointed KKSB as the sub-contractor to carry out shell and core works (“Works”) for a project known as “Intel Pelican Project – Kawasan Perindustrian Bayan Lepas, Pulau Pinang Package C04D” (the “Project”). The parties entered into a contract agreement for Package No. C04D – Shell and Core Works Site Substructure (Beta Site) dated 15 June 2022 (the “Subcontract”).

Throughout the course of the works, disputes have arisen between KKSB and Exyte. KKSB claims, amongst others:  

(a) Exyte has failed to properly and/or fairly assess KKSB’s application for extension of time;

(b) Exyte’s breaches and/or defaults under the Subcontract have prevented KKSB to complete the Works and hence the Completion Date under the Subcontract has been set “at large”;

(c) Exyte has failed, neglected and/or refused to properly assess and/or certify the sums submitted by KKSB in its interim payment applications; and 

(d) Exyte has failed to pay KKSB in accordance with the terms of the Subcontract and/or at law. 

As the parties were unable to resolve the disputes in accordance with the terms of the Subcontract, KKSB referred the disputes to arbitration by submitting the Demand for Arbitration against Exyte. 

2. Particular of the Claims 

Pursuant to the Demand for Arbitration, KKSB claims a total sum of RM200,997,041.49 against Exyte for, among others: (a) works done under-certified by Exyte; (b) variation claims under-certified by Exyte; (c) prolongation costs under-certified by Exyte; (d) disruption costs under-certified by Exyte; (e) back charges wrongfully and/or unlawfully deducted by Exyte; (f) interests and financial charges payable by Exyte; and (g) retention sums withheld by Exyte. 

In addition, KKSB claims that it is entitled to a further extension of time of 795 days to complete the Works as Exyte has failed and/or refused to properly certify KKSB’s claims for extension of time under the Subcontract. Consequently, in the arbitration, KKSB avers and will contend that Exyte is not entitled to impose liquidated damages under the Subcontract. 

In the Demand for Arbitration, KKSB has also reserved its rights to: (a) raise any further claims arising out of or in connection with the disputed matters described in the Demand for Arbitration or otherwise arising out of the Subcontract; and (b) amend and/or supplement the reliefs and remedies sought by KKSB in the Demand for Arbitration.

3. A Confirmation as to Whether KKSB is a Major Subsidiary

KKSB is a major subsidiary of the Company.

4. Financial and Operational Impact of the Demand for Arbitration 

The Demand for Arbitration outlines KKSB’s claims against Exyte arising from the disputes under the Subcontract. 

Based on the legal advice obtained, including a preliminary assessment of the merits of KKSB’s claims, KKSB has a good arguable case to succeed in its claims against Exyte. However, the exact amount which KKSB can recover or claim from Exyte in the arbitration would depend on the findings of the arbitral tribunal. 

The Company is of the view that the Demand for Arbitration is not expected to have any immediate material adverse financial or operational impact on the Group. No provision has been made in the financial statement at this juncture. 

The eventual financial impact of the arbitration, if any, will depend on the final outcome of the arbitration proceedings including, among others, the arbitral tribunal’s findings on the claims and counterclaims (if any) advanced by KKSB and Exyte. 

The Company will make the appropriate announcements to Bursa Malaysia Securities Berhad (“Bursa Securities”) as and when there are material developments in relation thereto in accordance with Main Market Listing Requirements of Bursa Securities.

This announcement is dated 30 December 2025.