263 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʧ (cont’d) 45. FINANCIAL INSTRUMENTS (CONT’D) (c) Fair value of financial instruments (cont’d) (iv) Level 3 fair value Level 3 fair value for the financial assets and liabilities are estimated using unobservable inputs. Reconciliation of fair value measurement of Level 3 financial instruments: 2024 2023 RM’000 RM’000 Group At FVTOCI Unquoted shares At beginning of the financial year 228,719 235,718 Addition 60,520 5,906 Disposal (10,407) (6,572) Changes in fair value through OCI - (6,333) At end of the financial year 278,832 228,719 Limited partnership At beginning of the financial year 4,729 - Addition - 4,729 At end of the financial year 4,729 4,729 283,561 233,448 46. MATERIAL LITIGATION On 2 June 2023, MYEGC initiated legal action by filing a lawsuit with the Shanghai International Economic and Trade Commission against Jingle Magic (Beijing) Technology Co., Ltd. (“Jingle Magic”) for arbitration. The basis for this arbitration is the alleged failure of the founders of Jingle Magic to fulfill payment obligations outlined in the Redemption Agreement dated 31 May 2022. According to the agreement, the founders had jointly agreed to acquire all Series Pre-B Shares owned by MYEGC in Jingle Magic for a total consideration of RMB10 million. On 23 January 2025, a tribunal issued a final and effective arbitral award requiring the founders to jointly pay MYEGC RMB10 million for the share transfer price, with RMB6 million due within 45 days and the remaining instalments as per the Redemption Agreement. The founders are also required to pay interest at an annual rate of 10% on delayed payments, USD42,259 for MYEGC’s arbitration claims, and 80% of the arbitration fee amounting to RMB229,929. MYEGC is responsible for the remaining 20% of the arbitration fee amounting to RMB57,482. As of the reporting date, no payments have been made by the founders. If they fail to comply, MYEGC may pursue enforcement through the competent court.
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