Reference is made to the Company's announcement dated 21 August 2026.
The Board of Directors of KSB ("Board") wishes to provide the following additional information:
Authority issuing the order
The freezing of the Accounts was pursuant to an order issued by the Polis Diraja Malaysia ("PDRM") in connection with an investigation pursuant to the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 ("AMLA").
Status of KSFI
KSFI is a major subsidiary of KSB.
Total balance of the frozen Accounts
The aggregate credit balance maintained in the six (6) Accounts at the date of the freezing was approximately RM1.89 million.
Circumstances leading to the investigation
As at the date of this announcement, the Company has yet to receive formal written clarification from PDRM on the specific circumstances or matters leading to the investigation.
However, based on information conveyed by PDRM to the Company, the freezing of the Accounts is not due to or connected with the operations or business activities of the Group.
The Company is actively seeking further clarification and information from PDRM in respect of the matter. The Company will continue to extend its full cooperation to PDRM and the relevant authorities in connection with the investigation.
Appeal to unfreeze the Accounts
The Company has on 24 August 2026 submitted an appeal to PDRM for the freezing order to be lifted and for the Accounts to be unfrozen. The Company will continue to engage with PDRM and the relevant authorities in seeking the release of the Accounts and will provide further updates as and when there are material developments.
Operational disruption and financial impact
The freezing of the Accounts has resulted in certain immediate operational implications, particularly in relation to:
(a) Customer receipts - the affected Accounts are among the accounts utilised by KSFI to receive payments from customers. Accordingly, there may be an immediate impact on the receipt and processing of customer collections through the affected Accounts;
(b) Payments to suppliers and staff salaries - the freezing of the Accounts may also affect the processing of payments to suppliers and the payment of staff salaries through the affected Accounts. The Group is taking the necessary measures to manage these payment arrangements and minimise any disruption to its operations;
(c) Sales and production operations - the extent of any impact on the Group's sales and production operations has yet to be confirmed. The Group is continuing to assess the operational implications and will provide further updates should there be any material development.
Notwithstanding the above, the Group continues to have access to alternative options, which remain available to support and facilitate its ongoing business operations.
Based on the information currently available to the Board, the Board is of the view that the matter is not expected to have a material financial impact on the Group at this juncture, although the financial and operational implications remain subject to further assessment.
The Company will continue to monitor the matter closely and will make further announcements as and when there are any material developments.
This announcement is dated 24 August 2026.