The Board of Directors of CHB wishes to inform that its wholly-owned subsidiary namely Carzo Import (M) Sdn. Bhd. (“CISB”) and a director of CISB had on 08 January 2025, been served the Writ of Summons and Statement of Claim (“WS&SC”) dated 19 December 2024 filed in the Kuala Lumpur Session Court. The matter has been fixed for case management on 21 January 2025.

CISB is a major subsidiary of the Company incorporated in Malaysia, principally involved in trading in all types of fruits, vegetables and related products.

YHFV is a company incorporated in China and a fruits supplier of CISB. Pursuant to the WS&SC, CISB has an outstanding debt of USD117,470.50 (approximately RM538,014.89 based on the foreign exchange rate published by Malayan Banking Berhad as at 18 December 2024) owing to YHFV in respect of fruits supplied to CISB. The disputes between YHFV and CISB, among others, pertaining to the terms of payment for the fruits supplied by YHFV to CISB which had resulted the WS&SC was filed against CISB. Save as disclosed, CISB 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 CISB in the ongoing Court proceeding.

Pursuant to the WS&SC filed by YHFV, the estimated potential liabilities to CISB arising from the WS&SC are as follows:

(a) the outstanding sum of USD117,470.50 (approximately RM538,014.89 based on the foreign exchange rate published by Malayan Banking Berhad as at 18 December 2024) to be paid to YHFV;

(b) interest at 5% per annum or at a rate to be determined by the Honourable Court on the outstanding sum until full and final settlement of the outstanding sum or such period to be determined by the Honourable Court to be paid to YHFV; and

(c) 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 Board of Directors of CHB also wishes to inform that there will be no operational impact arising from the WS&SC as the Group had ceased its core business for the distribution of fresh fruits and fruits products for the time being since November 2024.

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 09 January 2025.