The Board of Directors of CHB (“Board”) wishes to inform that: (i) CHB’s wholly-owned subsidiary namely Carzo Import (M) Sdn. Bhd. (“CISB”), (ii) Dato’ Sri Delon Lee Kean Yip (“LKY”) (being the executive director of the Company and personal guarantor for the PLM Term Loan (“PLM-TL”)  granted by RHB to CISB), and (iii) the Company (being the corporate guarantor for the PLM-TL granted by RHB to CISB), had on 13 March 2025, been served the Writ of Summons and Statement of Claim (“WS-RHB”) dated 06 March 2025 filed at the High Court in Kuala Lumpur. The date of case management for WS-RHB has been fixed on 20 March 2025.

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

RHB, a Licensed Commercial Bank governed by Bank Negara Malaysia, had granted a PLM-TL to CISB, and pursuant to the WS-RHB:

a.  CISB has an outstanding debt of RM1,767,440.68 as at 03 March 2025 owing to RHB in respect of the PLM-TL granted by RHB to CISB;

b.  RHB has claimed from CISB, LKY and CHB the following:

• the total outstanding debt of RM1,767,440.68 as at 03 March 2025 under the PLM-TL;
• interest at 3.50% per annum in addition to Base Lending Rate on the total outstanding debt of RM1,767,440.68 calculated at the daily basis from 04 March 2025 until full settlement of the outstanding debt;
• costs; and
• any other reliefs that the Honourable Court deems fair and appropriate.

The WS-RHB arose mainly due to CISB’s in breach and its failure to rectify such breach of the terms and conditions pursuant to the respective security documents in relation to the PLM-TL granted by RHB to CISB. This had resulted RHB’s termination of the PLM-TL and demand from the respective parties to pay RHB the aforesaid total outstanding debt which shall comprise utilised PLM-TL amount, interests, late payment charges and all other costs arising thereon which are immediately due and payable.

The Board is of the view that the financial impact resulting from the WS-RHB will be the expected losses arising from the litigation as mentioned above. The Board also wishes to inform that there will be no operational impact arising from the WS-RHB 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 14 March 2025.