Hoe Leong Corporation Ltd. Issues Update on Material Litigation: Potential Impacts for Investors

Key Highlights

• Ongoing Material Litigation: The Company has provided a significant update regarding the longstanding legal dispute referenced in its FY2024 audited financial statements and numerous past announcements.
• Case Details: The litigation concerns a case in the Kuala Lumpur High Court involving Auspicious Journey Sdn Bhd (“AJ”) as plaintiff and Ebony Ritz Sdn Bhd & 5 Others as defendants, which includes Hoe Leong Corporation Ltd.
• Recent Court Decision: At a hearing on 11 March 2026, the Court of Appeal decided to leave the High Court’s conditional stay order on the execution of the judgement sum unchanged, siding with the original High Court order.
• Financial Implication: The Company has been ordered to pay legal costs amounting to RM10,000 to AJ.
• Next Steps: The Company’s appeal against the Kuala Lumpur High Court’s decision dated 11 December 2025 is still pending. Further updates will be provided after the appeal is heard.

Important Information for Shareholders

• Potential Price Sensitivity: The outcome of the pending appeal could have a material impact on the Company’s financial position and, subsequently, on its share price. Investors should be aware that an adverse outcome could result in enforcement of the judgement and additional financial liabilities for Hoe Leong Corporation Ltd.
• Shareholder Actions: The Company has explicitly advised shareholders and potential investors to exercise caution when dealing in its securities. In particular, they should refrain from taking any action regarding their holdings that could be prejudicial to their interests until further information is available.
• Professional Advice: If shareholders or potential investors are uncertain on how to proceed, they are encouraged to consult with their stockbrokers, bank managers, solicitors, or other professional advisors.
• Continuous Disclosure: The Company has committed to providing timely updates, and investors are urged to closely monitor further announcements and the FY2024 Annual Report for material developments.

Summary for Investors

This litigation update is potentially price-sensitive, as it may influence the Company’s liabilities and cash flows depending on the outcome of the pending appeal. The RM10,000 in legal costs already awarded is not material by itself, but the result of the appeal regarding the judgement sum could have a much greater impact.

Investors should remain vigilant and await further disclosures before making any investment decisions related to Hoe Leong Corporation Ltd.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should consult their own professional advisors and review all official company disclosures before making any investment decisions. The information is based on the latest company announcement as of 16 March 2026 and is subject to change as further developments occur.

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