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(Unless otherwise stated, all abbreviations and definitions used herein shall have the same meaning as defined in the Company’s announcements dated 5 August 2022, 9 August 2022, 5 September 2022, 14 October 2022, 19 December 2022 and 31 January 2023 except where the context otherwise defined herein)

Further to the Company’s announcements made on 5 August 2022, 9 August 2022, 5 September 2022, 14 October 2022, 19 December 2022 and 31 January 2023, the Board of Directors wishes to inform that on 22 December 2023, LFM received a Notice of Finding of An Infringement under Section 40 of the Competition Act 2010 dated 11 December 2023, together with the Decision of Infringement of Section 4(1) read with Sections 4(2)(a) and 4(3) of the Competition Act 2010 dated 11 December 2023 from MyCC (“Decision”).

In the Decision, MyCC:

(a) maintains its finding of price-fixing infringement with imposition of financial penalty of RM157,470,027.02 on LFM; and

(b) maintains the proposed directions in the Proposed Decision, with the following notable modifications:-

1. in respect of submission of a report of poultry feed price changes to MyCC, LFM is required to include specific documentation in its monthly report with specific reporting periods and submission deadlines;
2. LFM is required to implement a competition law compliance programme and enrol broader employees into its competition law compliance programme and training within a specified deadline; and
3. LFM is required to include a provision in its Code of Conduct to acknowledge that involvement of any employee or board member in competition law infringements is a misconduct.

The Company and LFM strongly believe that MyCC’s finding of infringement is without merit. In consultation with its external legal counsels, the Company and LFM will take the necessary and appropriate actions to challenge the Decision and apply for a stay.

This announcement is dated 22 December 2023.