The Board of Directors of the Company wishes to announce that Leong Hup Feedmill Malaysia Sdn Bhd (“LFM”), a wholly-owned subsidiary of the Company, had on 5 August 2022, received a Notice of Proposed Decision issued by the Malaysia Competition Commission (“MyCC”) pursuant to Section 36 of the Competition Act 2010 (“the Act”) (“Proposed Decision”). The Proposed Decision is premised primarily on the allegation that LFM had engaged in agreements and/or concerted practices to fix the quantum of poultry feed price which is in breach of Section 4(1) read together with Section 4(2)(a) and 4(3) of the Act.

The Company would like to clarify that at this juncture, the Proposed Decision including the proposed financial penalty and proposed directions are not final.

The Company and LFM strongly believe that the allegation of the aforesaid infringement is without merit and intend to defend such allegation vigorously. The Company and LFM will review the matter with the external legal counsel and submit written representations within the specified period and make an oral representation before the MyCC.

This announcement is dated 5 August 2022.