CR Sea will do everything possible to seek termination in the hearing scheduled for January 7, 2026.

CR CONSTRUCTION (01582) announces that its indirect wholly-owned subsidiary, CR Sea (Malaysia) Sdn. Bhd. (CR Sea), received a winding-up petition dated May 27, 2025 on May 30, 2025. The petition relates to CR Sea's unpaid debts to subcontractors for aluminum formwork supplies amounting to RM 913,700. On July 28, 2025, CR Sea reached a settlement agreement with the subcontractors, in which CR Sea agreed to pay a total of RM 850,000 in four installments on September 22, 2025, October 1, 2025, November 7, 2025, and November 7, 2025. The first and second installments were paid in full on their respective dates. On October 14, 2025, the High Court of Malaya in Kuala Lumpur issued a winding-up order against CR Sea in the absence of its legal representative, pursuant to Sections 465(1)(e) and 466(1)(a) of the Companies Act 2016, appointing Dato' Dr. Shanmuganathan a/l Vellanthurai as the liquidator. CR Sea and the subcontractors signed a final settlement agreement on November 7, 2025, under which CR Sea agreed to pay RM 551,600 (settlement amount), which was fully paid on the same day. With the full settlement amount paid, CR Sea applied to the court (including) for the termination or revocation of the winding-up order (termination) and sought a stay of the winding-up order with the subcontractors' non-opposition notice. The application for a stay was scheduled for hearing on December 17, 2025. During the hearing held on December 17, 2025, the judge expressed doubts about being the most appropriate candidate to hear the application, and directed the application to be submitted to the court that issued the winding-up order for a hearing. The substantive content of the application has not been decided. According to Malaysian legal advisors, the main legal effects of the stay of the winding-up order are as follows: 1. granting a stay results in the postponement of the winding-up order until a decision on termination proceedings is made; 2. during the period of suspension due to the termination of the winding-up order, the legal and commercial effects of the order are suspended, allowing CR Sea to resume operations, enter into contracts, and make payments in the normal course of business; 3. in essence, granting a stay freezes the powers and duties of the liquidator; 4. seeking a stay is not an incidental or speculative measure but a core element of the termination strategy, aimed at preventing further harm while waiting for the court to rule on the substantive objections to the winding-up order; 5. from the disclosure and risk assessment perspective, granting a stay will significantly change CR Sea's risk profile, as it can stabilize operations, mitigate the immediate risk of contract termination and enforcement, and preserve enterprise value until a final decision is made. CR Sea will vigorously pursue a decision on termination at the hearing scheduled for January 7, 2026. The petition was received by the project manager of CR Sea on May 30, 2025, who was unaware of the importance and urgency of the document and did not immediately submit it to the board of directors of CR Sea. The board of directors of CR Sea only learned of the petition in mid-June and had limited knowledge of the listing rules at that time, so they did not immediately report it to the board. Instead, the board of directors of CR Sea reached a settlement agreement with the subcontractors on July 28, 2025, and paid the first and second installments on September 22, 2025, and October 1, 2025, respectively. Despite receiving payments for the first two installments, the subcontractors did not withdraw the petition, leading to the court issuing the winding-up order against CR Sea on October 14, 2025. The board of directors did not become aware of the petition until early December 2025, and immediately took action to gather documentary evidence and prepare and arrange for the publication of the announcement regarding the winding-up order.