Hoe Leong Corporation Ltd. Issues Update on Material Litigation

Key Points of the Announcement

• Material Litigation Update: Hoe Leong Corporation Ltd. (“the Company”) has released an important update regarding ongoing material litigation, specifically relating to the case of Auspicious Journey Sdn Bhd v Ebony Ritz Sdn Bhd & 5 Others in the Kuala Lumpur High Court.
• Notice of Appeal Filed: The Company has filed a notice of appeal on 24 December 2025 against the High Court’s decision dated 11 December 2025.
• Stay of Execution Application: The Company will also be filing an application to stay the execution of the award granted by the High Court.
• Ongoing Developments: The Company will continue to update shareholders and investors on any material developments as they arise.

Details and Implications for Investors

The Company has been involved in a long-standing legal dispute, which has been consistently disclosed in its financial statements and a series of announcements dating as far back as June 2013. The latest development is the High Court’s decision rendered on 11 December 2025, which was not in the Company’s favor, prompting the Company to promptly file a notice of appeal.

The litigation involves significant parties and potential liabilities. The outcome of the appeal and the application to stay the execution of the award may have a substantial impact on the Company’s financial standing and, consequently, its share price. The Company has assured stakeholders that further announcements will be made as and when material developments occur.

Given the legal proceedings, there remains uncertainty regarding the final outcome, which could have direct financial implications for the Company. This includes potential liabilities or financial outflows, as well as possible impacts on the Company’s operations and net asset value depending on the size of the award in question.

Important Considerations for Shareholders

• Potential Price Sensitivity: The appeal process and the outcome of the stay application are material events that may significantly influence the Company’s share price, depending on subsequent court decisions.
• Exercise Caution: Shareholders and potential investors are strongly advised to exercise caution when dealing in Hoe Leong Corporation Ltd.’s securities at this time.
• Seek Professional Advice: If there is any uncertainty or doubt about investment actions, shareholders and investors should consult their stockbrokers, bank managers, solicitors, or other professional advisors.
• Monitor Announcements: Stakeholders should closely monitor further updates from the Company, including the outcome of the appeal, as these may directly affect investment decisions.

Conclusion

The outcome of this litigation is a potentially price-sensitive event. The Company’s appeal and application for a stay of execution represent critical steps in defending its interests. Investors should be aware that any significant changes in the litigation’s progress, or its eventual outcome, could materially affect the Company’s financial status and share price.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors are urged to exercise their own judgment and seek professional advice before making any investment decisions in relation to Hoe Leong Corporation Ltd. The outcome of ongoing legal proceedings remains uncertain and may involve substantial financial risks.

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