The Board of Directors of CHB wishes to inform that its wholly-owned subsidiary namely Carzo Sdn. Bhd. (“CZSB”) had on 16 December 2024, been served the WS&SC dated 06 December 2024 at the Session Court in Johor Bahru.

CZSB is a major subsidiary of the Company incorporated in Malaysia, principally involved in the business of distributing, wholesale and trading in all types of fruits, vegetables and related products and manufacturing and processing all types of fruits, vegetables, nuts and food products.

CPSB is a company incorporated in Malaysia and a fruits supplier of CZSB. Pursuant to the WS&SC, CZSB has an outstanding debt of RM258,472.60 owing to CPSB in respect of fruits supplied to CZSB. The disputes between CPSB and CZSB, among others, pertaining to the terms of payment for the fruits supplied by CPSB to CZSB which had resulted the WS&SC was filed against CZSB. Save as disclosed, CZSB is of the view that the confidentiality of other relevant information should be maintained to mitigate the risk that will jeopardize and/or compromise the position of CZSB in the ongoing Court proceeding.

Pursuant to the WS&SC filed by CPSB, the estimated potential liabilities to CHB and its subsidiaries arising from the WS&SC as follows:

(a) the outstanding sum of RM258,472.60;

(b) interest at 5% per annum on the Judgement Sum calculated from the date of filing of the WS&SC until full and final settlement of the Judgement Sum;

(c) costs; and

(d) such further and equitable reliefs that the Honourable Court deems fit and proper.

The Board of Directors of CHB is of the view that the financial impact resulting from the WS&SC will be the expected losses arising from the litigation as mentioned above.

The Company has sought legal advice on the above matter and further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 16 December 2024.