Reference is made to the Company's announcement dated 19 May 2026 in relation to the termination of the Settlement Agreement ("Announcement"). Unless otherwise defined, the definitions set out in the Announcement shall apply herein.
The Board of Directors of the Company wishes to announce that the Company's wholly-owned subsidiary, Premier Construction (International) Sdn Bhd ("PCI") had on 8 June 2026 served the statutory demand under Section 466(1)(a) of the Companies Act 2016 ("Statutory Demand") to Premier De Muara Sdn Bhd ("PDM").
1. The details of events leading to the serving of the Statutory Demand and the particulars of the claim
PCI was appointed as the main contractor for Picasso Residence by PDM, the developer, to carry out construction activities on a parcel of development land with a leasehold interest for 99 years expiring on 17 February 2108 and held under title no. Pajakan Negeri 52579, Lot 20010 Seksyen 88, Bandar Kuala Lumpur, Daerah Kuala Lumpur, State of Wilayah Persekutuan Kuala Lumpur with title land area measuring 14,307 square metres ("Project").
Pursuant to the Statutory Demand, PCI is claiming from PDM the sum of RM64,240,574.90, being the total outstanding sum due and owing to PCI for the construction work certified to have been performed and rendered by PCI to PDM under the Project.
2. The financial and operational impact of the Statutory Demand
The service of Statutory Demand is not expected to have any material operational impact on the Group as the Project has been completed and the Certificate of Practical Completion has been obtained in November 2025. The remaining obligation relation to the Project are primarily defect liability works, for which the Group has made the necessary accruals and provisions based on management's best estimate for the financial year ended 31 December 2025.
As at the date of this announcement, impairment losses of approximately RM50.3 million and RM13.7 million have been recognised in previous financial years and the financial period ended 31 March 2026, respectively, in respect of the amount due from PDM. The Group is currently assessing the remaining outstanding balance and may be required to recognise a further impairment loss of approximately RM0.2 million, subject to the outcome of management's assessment and audit review.
3. The expected losses, if any arising from the Statutory Demand
Save for legal fees and related cost incurred in connection with the recovery proceeding against PDM, the Company does not expect any material losses to arise directly from the Statutory Demand.
The Group has recognised impairment losses of approximately RM64.0 million in respect of the amount due from PDM up to the financial period ended 31 March 2026. Based on the amount claimed under the Statutory Demand of RM64,240,574.90, the Group may be required to recognise a further impairment loss of approximately RM0.2 million in a future reporting period, subject to the outcome of management's assessment and audit review.
Any recovery of the outstanding amount from PDM in the future may result in a reversal of impairment, subject to the requirements of the applicable accounting standards.
4. The steps taken and proposed to be taken by the Company
In the event PDM fail and/or refuse to make payment of the said sum of RM64,240,574.90 within 21 days from the date of service of the Statutory Demand, appropriate action will be taken for the winding-up of PDM without further notice.
Further announcements on the material development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.
This announcement is dated 8 June 2026.