Pursuant to paragraph 9.04(i) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce that its wholly owned subsidiary company, Hartalega Sdn. Bhd. will not be extending its joint venture with Yancheng Hartalega Trading Ltd. Co. (“Yancheng”) and Danaraj a/l Nadarajah (“Danaraj”) in respect of the Joint Venture Company.

By way of background information, the Joint Venture Company was set up on the 28th of April 2011 in Yancheng, China by Hartalega Sdn. Bhd. (70%), Yancheng (15%) and Danaraj (15%). Pursuant to the Articles of Association of the Joint Venture Company, the tenure of the joint venture will expire on the 27th of April 2021 unless there is a unanimous decision by all the directors of the Joint Venture Company to extend the period of the joint venture.

The Company through its subsidiary, Hartalega Sdn. Bhd. has decided not to extend the joint venture as one of the parties to the joint venture is Danaraj, a person whom the Company, Hartalega Sdn. Bhd. and Mun Health Product (India) Pvt. Ltd. is currently suing for amongst others, breach of fiduciary duty. Kindly refer to the Company’s earlier Bursa announcement dated 6th of January 2021.

The cessation of the joint venture is not expected to have any material impact on the Company’s finances and operations. Further announcement of any material development will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 10 February 2021.