Huaying Construction (01582): CR Sea will do its best to seek a termination ruling in a hearing to be held on January 7, 2026

Zhitong Finance App News, Huaying Construction (01582) announced that CR Sea (Malaysia), an indirect wholly-owned subsidiary of the Company, Sdn. Bhd. (CR Sea) received a winding-up petition (petition) dated May 27, 2025 on May 30, 2025 relating to CR Sea's outstanding payment of RM913,700 (debt) to its subcontractors (subcontractors) for the supply of aluminum formwork.

On July 28, 2025, CR Sea reached a settlement agreement with the subcontractor. According to this, CR Sea will pay the subcontractor a total of RM850,000 in four installments. The payment dates are September 22, 2025, October 1, 2025, November 7, 2025, and November 7, 2025, respectively. The first instalment and the second instalment were settled on September 22, 2025 and October 1, 2025, respectively.

On October 14, 2025, the High Court of Malaysia (court) petitioned for a winding-up order (winding-up order) against CR Sea and appointed Dato' Dr. Shanmuganathan a/l Vellanthurai as the liquidator (liquidator) in Kuala Lumpur in accordance with sections 465 (1) (e) and 466 (1) (a) of the Companies Act 2016 in the absence of CR Sea's legal representatives.

CR Sea signed a final settlement agreement with the subcontractor on November 7, 2025. According to this, CR Sea must pay RM551,600 (settlement amount) to the subcontractor, and CR Sea settled the full amount on the same day. With all settlement payments finally settled, CR Sea has applied to the court (including) to terminate or rescind the winding-up order (termination), and sought to suspend execution of the winding-up order (stay of execution) until the final ruling, with the support of a notice of no objection issued by the subcontractor. The application for a stay of execution order is scheduled to be heard (application) on December 17, 2025.

At the hearing held on December 17, 2025, the judge expressed doubts about whether he was the most suitable person to hear the application, so he directed that the application must be submitted to the court that issued the winding-up order for hearing. The substance of the application has yet to be determined.

According to the Malaysian Legal Counsel, the main legal effects of a stay of execution order are as follows:

1. The legal consequence of granting a stay of execution order is that the winding-up order will suspend execution until the ruling terminates the proceedings;

2. While execution of the winding-up order was suspended due to termination, its legal and commercial effects were also suspended, enabling CR Sea to resume business operations, sign contracts, and make payments in the normal course of business;

3. In fact, granting a stay of execution order would freeze the powers and powers of the liquidator;

4. The application for suspension of execution is not an incidental or speculative measure, but is a core part of a termination strategy aimed at preventing further damage while awaiting a court ruling on substantive objections to the winding-up order;

5. Also, from the perspective of disclosure and risk assessment, granting a suspension of execution order will significantly change CR Sea's risk situation, as it can stabilize operations, mitigate the immediate risk of contract termination and enforcement, and preserve corporate value before final ruling.

CR Sea will do its best to seek a termination ruling in a hearing to be held on January 7, 2026.

The petition was received by the CR Sea project manager on May 30, 2025. The manager was unaware of the importance and urgency of the document, so it was not immediately forwarded to the CR Sea Board (CR Sea Board). CR Sea's board of directors only learned of the petition until mid-June, and CR Sea's board of directors had limited awareness of the listing rules at the time, so it was unable to immediately report to the board of directors. Instead, CR Sea's board of directors reached a settlement agreement with the subcontractor on July 28, 2025, and paid the first and second instalments on September 22, 2025 and October 1, 2025, respectively. Despite having received payment for the first two instalments, the subcontractor did not apply to the court to withdraw the petition, and the court issued a winding-up order against CR Sea on October 14, 2025 in the absence of CR Sea's legal representative.

The Board of Directors received the petition until early December 2025 and immediately took action to gather documentary evidence and prepare and arrange for the publication of the notice relating to the winding-up order.