Reference is made to the announcement dated 3 October 2025 in relation to the rejection of the Company’s Proposed Regularisation Plan and the subsequent suspension and de-listing notice from Bursa Securities (“Decision”). Reference is also made to the announcement dated 8 October 2025 in relation to the submission of an appeal against the Decision (“Appeal”).

The Board of Directors of KNMG wishes to announce that, after careful deliberation, the Company has on 27 October 2025 resolved to withdraw the Appeal. A formal withdrawal letter has been submitted to Bursa Securities on the even date.

Following the withdrawal of the Appeal, the Company will abide by the Decision. Accordingly, the securities of KNMG will be de-listed from the Official List of Bursa Securities with effect from 5 November 2025.

RATIONALE FOR WITHDRAWAL OF APPEAL

The decision to withdraw the Appeal was made after the Board’s due and careful consideration that it is a necessary step in the paramount interest of all stakeholders including shareholders, creditors and employees.

The Board has assessed that the successful completion of the SPA is critical to the Group’s ongoing efforts to stabilise its financial position. The Board also noted that the timeframe of regulatory processes involved in pursuing the Appeal could potentially affect the completion schedule of the SPA.

The completion of the SPA is the Group’s viable path forward for the following reasons:

(i) The disposal proceeds are essential to settle the Group’s significant debts and reduce its gearing to a sustainable level;

(ii) The Group’s creditors have agreed to allow KNMG to retain RM100.00 million from the disposal proceeds, to be used specifically as working capital to invest in the turnaround of the remaining business of KNMG;

(iii) The failure to complete the SPA would derail the entire restructuring plan, leading to an inevitable liquidation, which would result in minimal to zero recovery for shareholders and impaired recovery for creditors.

Given the above circumstances, the Board had resolved to secure the SPA, which ensures the Company’s survival as a going concern, accepting the delisting decision as a necessary consequence.

THE PATH FORWARD AND CLARIFICATION TO SHAREHOLDERS

The Board wishes to reassure all shareholders that the delisting does not mean the end of the Company or the loss of their shareholdings. KNMG will continue to operate as an unlisted public company. All shareholders and their respective shareholdings will remain intact. All rights as a shareholder are protected under the Companies Act 2016.

As the Company is no longer a listed entity, the Company is not bound to comply with the Listing Requirements of Bursa Securities and can then proceed with the necessary course of actions going forward. With a 35-year track record and a strong presence in the industry as one of the leading Malaysian processing equipment manufacturer, the Board is confident that the RM100.00 million retained working capital will enable the Company to rebuild and revitalise its operations.

The Company will continue to be governed by the Companies Act 2016 and is obligated to, among other things:

(i) Produce audited financial statements annually;

(ii) Hold annual general meetings and extraordinary general meetings, as required;

(iii) Distribute dividends or any other corporate distribution, should the Company be in a position to do so; and

(iv) The Board will remain and will continue to be answerable to all shareholders.

The Board will focus on the operational and financial turnaround of the Group. At the appropriate time, when the Company’s financial health is restored, the Board will consider a re-listing of KNMG, subject to financial performance and requisite approvals.

The Board is fully committed to the turnaround of KNMG and believes this decisive action, while difficult, is the only responsible path to protect the Company and create future value for its stakeholders.

This announcement is dated 27 October 2025.