NOTES TO THE FINANCIAL STATEMENTS 39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) Significant events during the financial year are as follows: (continued) (b) Material litigation between Dagang NeXchange Berhad, DNeX Semiconductor Sdn. Bhd., Mimastronics Technologies Company Limited and Tethystronics Technologies Company Limited: (continued) ii. Commencement of Originating Summons by TTCL against DNeX Semi and Silterra in relation to a shareholders’ agreement dated 8 July 2021 entered between TTCL and DNeX Semi (continued) A Consent Order (“Consent Order”) was recorded on 9 January 2023 in the High Court of Kuala Lumpur in relation to the Originating Summons No. WA-24NCC(ARB)-55-12/2022 (“OS”) on mutual agreement between TTCL, DNeX Semi and Silterra. Among others, the Consent Order provides that: 1) The Ad Interim Order dated 14 December 2022 (“Interim Injunction”) was discharged; 2) The Board of Silterra shall not deliberate on matters in respect of the proceeding of the OS and impending arbitrations; 3) The Board of Silterra is entitled to convene subsequent meetings in respect of other matters related to Silterra, and that Silterra shall remain a nominal party in the OS proceedings; 4) TTCL and DNeX Semi shall ensure that their respective nominee directors of Silterra abide by the terms of the Consent Order and that such directors shall continue to act in the best interest of Silterra; 5) The composition of the Board of Silterra shall remain as at the composition prior to 21 November 2022; and 6) The Consent Order shall be effective and enforceable until the disposal of the OS. The Consent Order shall be discharged upon the disposal of the OS. The Consent Order will not have any material financial impact other than legal cost to be incurred and no material operational impact is expected arising from the Consent Order. On contrary, the Consent Order will allow the Board of Silterra to operate their business as usual with a functional Board. iii. Commencement of Arbitration by TTCL against DNeX Semi and Silterra The Company had on 14 December 2022 received a Notice of Arbitration from TTCL (“the Claimant”) to commence arbitration proceedings against the Company’s subsidiaries namely, DNeX Semi (“1st Respondent”) and Silterra (“2nd Respondent”) (collectively referred to as “the Group” or “the Respondents”) under the Asian International Arbitration Centre Arbitration Rules, 2021 (“AIAC Rules”). (a) Background TTCL had entered into the Shareholders’ Agreement dated 8 July 2021 (“SHA”) with DNeX Semi. Silterra became a party to the SHA pursuant to the Joinder Agreement TTCL (“JA”), the Company and Silterra dated 18 February 2022. Disputes and differences have arisen between TTCL, DNeX Semi and Silterra (collectively, “the Parties”) in relation to or arising out of the SHA (“the Disputes”). Disputes between TTCL, DNeX Semi and Silterra arise from the SHA, read with the JA and a further agreement as contained in a letter dated 8 July 2021 between DNeX Semi and the Company on the one part and TTCL, Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) and Mimastronics Technologies Company Limited, on the other part (“Collateral Agreement”). The Collateral Agreement was entered into in connection with the SHA. In connection with the SHA, the Collateral Agreement was entered into for the purposes of, amongst other things, regulating the composition of Silterra’s Board. DNeX INTEGRATED REPORT 2025 222 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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