Hong Seng Consolidated Berhad referred to the announcements made on 10 June 2022, 9 September 2022, 9 December 2022 and 9 March 2023 for the Memorandum of Understanding (“MOU”) entered with EoCell Inc. (“EoCell”) relating to the project whereby the Parties intend to work together to build and create a regional manufacturing hub in Malaysia to manufacture batteries for electric vehicles (“EV”) and progress to other power storage solutions for EV and to supply to EV manufacturers, assemblers, users in the South East Asian region (“Project”). Unless otherwise stated, defined terms used in this announcement shall carry the same meanings as defined in the Announcements. Pursuant to the MOU, Hong Seng has actively and cautiously sourced for a suitable land for Project Volt's site which is in compliance with the stringent standards and requirements for batteries manufacturing and its related industries.

However, despite the Company's efforts, the search for an appropriate site has exceeded the initial expectations of the Parties due to unforeseen challenges and complexities in identifying a location that satisfies all the necessary criteria. In light of the above and the term of the MOU has expired on 9 June 2023, the Parties are now mutually agreeable to put the Project on hold and decided not to renew the MOU. Thus, the MOU was deemed terminated on 9 June 2023 ("Termination").

The Parties will continue to update each other periodically with the aim of possibly reviving said Project in the near future or collaborating in some other manner or form. The Termination will not have any material impact on the issued share capital, substantial shareholders' shareholdings, net assets, gearing, earnings and earnings per share of Hong Seng Group for the financial year ending 30 September 2023.