Reference is made to the Company's announcements dated 28 February 2025, 13 May 2025 and 20 November 2025, as well as the continuous updates provided in the Company's Quarterly Results for the financial period ended 30 June 2025 and 31 March 2026 announced on 29 August 2025 and 29 May 2026 respectively on the above Material Litigation. Unless otherwise stated, the definitions and terms used herein shall have the same meaning as defined in the said announcement.

The Company wishes to inform that a Consent Judgement ("CJ") entered between the HL Advance Technologies (M) Sdn. Bhd. ("Plaintiff") and Encompass Industries Sdn. Bhd. ("Defendant") had been recorded at the High Court of Malaya at Shah Alam on 17 July 2026.

The salient terms of the CJ are as follows:

(1) Defendant shall pay Plaintiff a total settlement sum of RM1,000,000.00 in full and final settlement of the dispute.

(2) The settlement sum shall be paid by the Defendant in twelve (12) monthly instalments commencing from January 2027 and ending in December 2027, with each instalment payable on or before the last day of each month.

(3) Defendant shall withdraw its counterclaim against Plaintiff.

(4) In the event Defendant defaults on any instalment payment, the outstanding balance of the settlement sum (after deducting any payments already made) shall immediately become due and payable, and Plaintiff shall be entitled to commence enforcement and/or execution proceedings without further notice.

(5) The CJ is entered into without prejudice and without any admission of liability by either party. Each party shall bear its own legal costs.

Upon the CJ being recorded, the material litigation by the Plaintiff against the Defendant is hereby concluded.

This announcement is dated 20 July 2026.