For consistency purposes, definitions and abbreviations used throughout this announcement shall have the same meanings as those previously defined in the Company’s announcement dated 16 April 2021.

Reference is made to the announcement dated 16 April 2021 in relation to the Suit filed by the Plaintiffs against HMB and HMM (“Companies”).

As an update, as part of the existing dispute in the Suit, HMM had, between May and November 2021, served several notices to the Plaintiffs to remedy the breaches under a contract between the Plaintiffs and HMM (“Contract”) relating to HMB’s products.  Despite receipt of the said notices, the Plaintiffs have failed, refused and/or neglected to remedy the breaches.  HMM, based on legal advice and as entitled to, terminated the Contract in November 2021.

On 6 December 2021, the Companies received a Writ of Summons and a Statement of Claim, both dated 2 December 2021 filed by the Plaintiffs under the Kuala Lumpur High Court Civil Suit No. WA-22NCvC-781-12/2021 (“Claim”).

The Claim is related to the Suit filed in April 2021 as they arose from the same series of transactions, dealings and disputes between the Plaintiffs and the Companies.

In the Claim, the Plaintiffs claim that the Companies have instead breached the Contract, and they are seeking for, amongst others, the liquidated sum of RM58,225,544.80. In addition, as the Claim and the Suit are inter-related, the Plaintiffs have pleaded that they will be applying to have the Claim and the Suit consolidated and/or heard together.  

Under the Rules of Court 2012, the Companies are required to file their Defence and Counterclaim by 3 January 2022.

Financial and Operational Impact

Based on preliminary assessment of the Claim, the Board is of the opinion that there is no material impact on the operations and financials of HMB and its subsidiaries.

Company’s Position

The Board remains confident of the Companies’ legal position and is of the opinion that the Companies have a strong defence against the Claim, which is unwarranted, premature and vexatious. The Companies based on legal advice, will contest the Claim.

The Company will make the necessary announcement on further developments of the Claim and the Suit from time to time. 

This announcement is dated 10 December 2021.