Destini wishes to announce that its indirect subsidiary, Destini Shipbuilding and Engineering Sdn Bhd (“DSBE”) had been served with a Writ of Summons, details of which are as follows:

1.Date of service of the Writ of Summons

On 2 June 2022, Pembinaan Ismail had filed a writ of summons against DSBE (Writ No. BA-22C-21-06-2022) which has been received by the Company on 8 June 2022.

On 14 September 2022, Messrs Puspalingam, Kasmani & Partners for and on behalf of Pembinaan Ismail (the Defendant’s solicitors) filed a notice of the application to the High Court of Malaya at Shah Alam, in the State of Selangor Darul Ehsan, to allow the Plaintiff to enter a direct judgment against the Defendant as stated in the filed statement of claim, pursuant to Rule 14 of the Court Rules 2012.

On 21 June 2023, the Court allowed the Plaintiff’s summary application against DSBE for the sum of RM1,975,617.67 and costs of RM5,000.00

2. Details of the default or circumstances leading to the filing of the Writ of Summons and the particulars of the claim under the Writ of Summons, including the amount claimed for and the interest rate

The Plaintiff had completed approximately 92.7% of the works by 8 April 2021. The Plaintiff submitted a claim demanding RM14,808,221.06. However, as of 30 March 2021, the Defendant had made a payment of RM11,707,270.79, leaving a balance of RM3,100,950.27 unpaid by the Defendant to the Plaintiff.

3. The particulars of the claim under the Writ of Summons, including the amount claimed for and the interest rate

Pursuant to the Writ of Summons, the Plaintiff claims the following from DSBE:-

a) The sum of RM3,100,950.27;

b) Statutory interest at the rate of 5% on RM3,100,950.27 calculated from the date of the Writ to the date of full settlement of the judgement sum (“Interest on Damage”);

c) Cost of the proceeding.

4. A confirmation as to whether DSBE is a major subsidiary

DSBE is not a major subsidiary of the Company.

5. The cost of investment in DSBE

The total cost of investment in DSBE is RM3,000,000.00

6.The financial and operational impact of the Writ of Summons on the Group

The Writ of Summons will not have any additional financial and operational impact on the Group

7. The expected losses, if any, arising from the Writ of Summons on the Group

The Company is not expected to incur any further loss arising from the Writ of Summons

8. Steps taken and proposed to be taken in respect of the Writ of Summons on the Group

DSBE is in the process to resolve the matter amicably with the Plaintiff upon further discussion with the Plaintiff.

Further announcement(s) to Bursa Malaysia Securities Berhad on any material development on the above will be made in due course.

This announcement is dated 22 June 2023.