NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2025 (cont’d) 44. 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: 2025 2024 RM’000 RM’000 Group At FVTOCI Unquoted shares At beginning of the financial year 278,832 228,719 Addition 700 60,520 Disposal - (10,407) At end of the financial year 279,532 278,832 Limited partnership At beginning/end of the financial year 4,729 4,729 284,261 283,561 45. 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. During the financial year, MYEGC filed an enforcement case with Beijing Fourth Intermediate Court to enforce the arbitral award. In the course of the enforcement proceedings, the parties reached an agreement whereby the founders agreed to pay a total sum of RMB11,164,726.71, representing the full settlement of amounts payable under the arbitral award. The total payables were fully collected and received by Zetrix Tech Development (Shanghai) Co., Ltd. on behalf of MYEGC on 9 March 2026. Accordingly, the case has been concluded and closed. 286
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