Hoe Leong Corporation Ltd. – Key Update on Material Litigation

Summary of Recent Developments

Hoe Leong Corporation Ltd. (“the Company”) has issued a significant update regarding ongoing material litigation involving its subsidiary and a third party, Auspicious Journey Sdn Bhd (“AJ”).
This follows a long-running legal dispute disclosed in the Company’s financial reports and several announcements over recent years.

Key Points from the High Court’s Ruling

• High Court Decision: On 11 December 2025, the Kuala Lumpur High Court delivered a verbal ruling in favour of Auspicious Journey Sdn Bhd during the assessment of damages phase.
• Significant Financial Penalties: The High Court awarded the following sums against the Company (and its co-defendants):
  • General damages totaling RM18.673 million
  • Legal expenses of SGD164,918.82 and RM31,800
  • Interest at 5% per annum on the judgement sum, calculated from 3 August 2016 (the date of the liability judgement)
  • Legal costs amounting to RM300,000
  • AJ’s expert’s expenses of RM450,000
• Written Judgment Pending: The formal written judgment from the High Court is still pending.

Actions Being Taken by the Company

• Legal Advice and Appeal: The Company has consulted its legal counsel following the High Court’s ruling. Based on this advice, the Company believes it has sufficient grounds to file an appeal against the decision.
• Next Steps: The Board is currently discussing the next steps, which include the possibility of lodging an appeal. Further announcements will be made as material developments arise.

Important Considerations for Shareholders

• Potential Impact on Share Price: The substantial damages, interest, and legal costs awarded could have a material impact on the Company’s financial position and, consequently, its share value. The outcome of the appeal process remains uncertain.
• Ongoing Disclosure: Shareholders and potential investors are strongly advised to monitor future announcements from the Company, especially regarding the written judgment and the appeal.
• Investor Caution: The Company specifically advises investors to exercise caution in dealing with Hoe Leong Corporation’s securities at this time and to consult professional advisors if in doubt about any action to take.

Conclusion

The High Court’s ruling represents a major development in a protracted litigation process. The sizable financial award and ongoing legal proceedings constitute a significant risk factor for the Company and may result in share price volatility. Investors should stay vigilant for further updates and consider the potential impact carefully.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell, or hold any securities. Investors should consult their own professional advisors before making any investment decisions. The information is based on the latest official company announcements as of 22 December 2025 and is subject to change.

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