INTRODUCTION

The Board of Directors of Jiankun wishes to announce that the Company has taken legal proceedings against Lee Khoon Eng (1st Defendant) and Lee Phaik Choo (2nd Defendant) (collectively known as “Defendants”) through their Solicitors, Messrs. Au & Partners vide a Writ of Summons bearing Suit No. PA-22NCC-41-04/2025 (“Writ”) and a Statement of Claim both dated 28 April 2025 (“SOC”) at the High Court of Malaya in Penang for the dispute concerning a Conditional Share and Purchase Agreement in relation to the acquisition of 99.99% of the entire equity interest in Oriental Link Properties (M) Sdn Bhd dated 22 December 2023 entered between the Company and the Defendants (“the Agreement”).

DETAILS OF CIRCUMSTANCES LEADING TO THE LEGAL PROCEEDINGS AGAINST LEE KHOON ENG AND LEE PHAIK CHOO

The circumstances leading to the filing of the Writ of Summons and Statement of Claim by the Company arose from the Defendants’ failure to fulfill their obligations under the Agreement. The Company had remitted RM3,500,000.00 as part-payment, with the expectation that the share transfer would be completed to facilitate its project development activities. Despite repeated demands and extensions, the Defendants failed to complete the share transfer and imposed various additional conditions, resulting in significant delays and financial losses to the Company. Consequently, the Company is exercising its rights under the Agreement to seek specific performance or, alternatively, to terminate the Agreement and recover the RM3,500,000.00 paid, together with claims for damages arising from the Defendants’ breach.

The Company therefore is now claiming the following declarations and orders from the Defendants through the Writ of Summons and Statement of Claim:

(a) a declaratory order that the Agreement is valid and in force;

(b) a declaratory order that the Company has paid RM3,500,000.00 as at 10 April 2025 to the Defendants in accordance with the Agreement;

(c) an order for specific performance for the Defendants to transfer 6,274,595 units of shares (“Shares”) of the Oriental Link Properties (M) Sdn Bhd in accordance with the Agreement the Company and/or their nominees within three (3) days from the date of this order;

(d) Alternative to prayer (a) and (c) above, a declaratory order that the Agreement is to be rescinded with immediate effect;

(e) subsequent to prayer (d), an order for RM3,500,000.00 in respect of item 2 is to be paid by the Defendants to the Company or their solicitors within three (3) from the date of this order;

(f) an order restraining the Defendants themselves and/or through their representatives, agents, and/or servants and/or nominees from selling, transferring, encumbering and/or otherwise changing the ownership of: 

• the Shares;
• the project formally known as Panchor Sanctuary Garden concerning a piece of freehold triangular flat land measuring approximately 7.58 acres having its address at Lot 544, Jalan Bukit Panchor, Nibong Tebal, Pulau Pinang;
• a project currently being developed on Lot 334 Jalan Paboi; and/or
• piece of land held under Lot 20041 Jalan Kampung Bukit, Bayan Lepas;

(g) general damages at an estimation of RM12,000,000.00 to be assessed;

(h) aggravated damages;

(i) exemplary damages; and

(j) such further or other relief as this Honourable Court may deem fit.

STEPS TAKEN AND/OR PROPOSED TO BE TAKEN IN RESPECT OF THE WRIT OF SUMMON AND STATEMENT OF CLAIM

The first e-Review date has been fixed on 21 May 2025.

The Company will make the necessary announcement to Bursa Malaysia Securities Berhad as and when there are further developments in relation thereof and/or upon receipt of any further directions by the Court.

This announcement is dated 2 May 2025.