Summary of Developments

Luminor Financial Holdings Limited (“Luminor” or “the Company”), together with its subsidiaries (“the Group”), has issued a material update regarding ongoing legal proceedings involving a significant debtor, KLP, and the status of debt recovery. This follows the Company’s earlier announcement dated 18 July 2025.

Key Highlights for Investors

• High Court Decision: The High Court of Malaya in Kuala Lumpur delivered its decision concerning SAPM’s Order 14A application, which sought determination of legal questions surrounding financing facilities extended to KLP.
• Facility Enforceability: The court ruled that the pre-factoring facility element of SAPM’s financing extended to KLP is unenforceable, while the factoring facility remains enforceable.
• Restitution Ordered: Restitution was allowed for the principal sums advanced under the pre-factoring facility. Both parties have agreed to quantify this at RM9.44 million.
• Ongoing Appeal: SAPM has filed a notice of appeal against the High Court’s decision, and the appeal process is ongoing.
• Outstanding Debt Details: As of 13 January 2025, the outstanding debt from KLP stands at approximately RM14.3 million.
• Provision and Recovery: The Group has already recognised an Expected Credit Loss (ECL) allowance of RM12.5 million and has recovered RM1.8 million in October 2025.
• Financial Impact: The Company believes there is no material impact on the Group’s operations or financials for the financial year ending 31 December 2026.

Implications for Shareholders and Investors

Potential Price Sensitivity: The legal determination of the enforceability of financing facilities and the ongoing appeal process may have significant implications for the Group’s ability to recover the outstanding debt from KLP. The quantified restitution amount and ongoing legal proceedings could influence investor sentiment and potentially impact share prices in the short term, especially depending on the outcome of the appeal.

The Company has taken a prudent approach by recognizing a substantial ECL allowance, which mitigates the risk of further financial impact. However, investors should remain vigilant, as any adverse developments or material changes arising from the appeal could affect the Group’s financial position.

Advice to Investors: Shareholders and potential investors are strongly advised to exercise caution when dealing in or trading the Company’s shares. It is recommended to closely monitor further announcements by Luminor Financial Holdings concerning the appeal and any updates on debt recovery efforts.

Official Statement

The announcement was reviewed by the Company’s sponsor, UOB Kay Hian Private Limited. It should be noted that it has not been examined or approved by the Singapore Exchange Securities Trading Limited (SGX-ST), which assumes no responsibility for its contents.

For further details, the contact person for the Sponsor is Mr Lance Tan, Senior Vice President, at 83 Clemenceau Avenue, #10-01 UE Square, Singapore 239920, telephone (65) 65906881.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are urged to consult their stockbroker, bank manager, solicitor, or another professional adviser if they have any doubt regarding the implications of this announcement. The information herein is based on the latest available company disclosures as of 13 January 2025. Future developments may materially affect the Company’s financial position and share price.

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