The Board of Directors of Bermaz Auto Berhad ("BAuto" or "Company") wishes to inform that its 85% owned subsidiary, Bermaz Changan Sdn Bhd ("BCSB"), has on 26 June 2026 entered into a termination agreement with Mobitech Co. Ltd., China, a wholly owned subsidiary of Chongqing Changan Automobile Co. Ltd., China, ("Changan Automobile") to mutually terminate the distributorship of electric vehicles ("EV"), sale of spare parts and provision of after-sales services under the Deepal brand ("Deepal Distributorship") in Malaysia ("Mutual Termination of Distributorship").

BCSB was awarded the Deepal Distributorship in Malaysia in November 2024. Pursuant thereto, BCSB had been negotiating with Changan Automobile on, among others, the EV models and the expected pricing to be retailed in Malaysia amidst the local market EV price war. However, after much negotiation, the parties concerned have decided not to pursue the Deepal Distributorship and agreed to mutually terminate it with immediate effect.

BCSB currently has an issued share capital of RM100.00 comprising 100 ordinary shares, of which 85 BCSB shares (85.0%) are held by BAuto. BCSB has yet to commence business operations since its incorporation in November 2024.

The Mutual Termination of Distributorship is not expected to have any material financial and operational impact on BAuto Group for the current financial year.

None of the Directors and major shareholders of BAuto and/or persons connected with them has any interest, direct or indirect, in the Mutual Termination of Distributorship.

The Board of Directors of BAuto, having considered all aspects of the Mutual Termination of Distributorship, is of the opinion that it is in the best interests of BAuto Group.

This Announcement is dated 26 June 2026.