1. INTRODUCTION

The Board of Directors of LCTH wishes to announce that the Company had on 27 March 2026 been served a sealed Writ of Summons dated 19 March 2026 and Statement of Claim dated 27 March 2026 from Petroleum Logistic Services Sdn Bhd ("Suit"). The Company, its subsidiary, Lotte Chemical Titan (M) Sdn Bhd ("LCTM"), and the Company's Director / President, namely, Jang Seon Pyo, have been named as Defendants.

2. PARTICULARS OF THE CLAIMS UNDER THE WRIT OF SUMMONS AND STATEMENT OF CLAIM

The Plaintiff is seeking, among others :-

(a) declarations;

(b) an indemnity for all tax liabilities, assessments, penalties, fines and charges imposed or to be imposed by the relevant authority(ies) including the proposed tax and penalties of RM18,442,967.77;

(c) a taking of an account of all revenue, profits and gains received or retained by the LCTH and LCTM from domestic sales conducted through or in reliance upon the Plaintiff's licence, and payment of sums found due;

(d) a disclosure order relating to domestic sales under the relevant agreements, including invoices, purchase orders, pricing memos, customer payment records, and sales information for certain period;

(e) special damages of RM18,442,967.77 (proposed tax and penalties);

(f) special damages of RM111,800,840.50 (shortfall based on 15% gross profit margin benchmark);

(g) alternative special damages of RM20,572,165.70 (shortfall based on 3% industry-standard minimum distributor margin);

(h) alternative distribution fees at 15% of total domestic sales or such rate as the Court deems just and equitable;

(i) damages assessed on quantum meruit principles;

(j) general, exemplary, punitive and/or aggravated damages;

(k) general damages to be assessed;

(l) pre-judgment interest at 8% per annum;

(m) post-judgment interest at 5% per annum;

(n) costs on an indemnity basis.

3. FINANCIAL AND OPERATIONAL IMPACT TO LCTH

There is no expected financial impact on the earnings and net assets of LCTH as at the date of this announcement save for the costs on a solicitor-client basis. There is no expected material operational impact to LCTH.

4. STEPS TAKEN/PROPOSED TO BE TAKEN

The Company is seeking legal advice on the matter. Further announcement will be made as and when there is material development on the above matter.

This announcement is dated 31 March 2026.