INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB has received a Letter of Contract Amendment and Extension for the Price Agreement for New and Refurbishment of LPG Cylinders for Petronas Dagangan Berhad: Fabrication, Reconditioning (“RC”) of LPG Cylinders and to Supply & Delivery of LPG Compact Valves (Contract No: PDB/LPG/37/2018/2096).

AND

That its associate company, Edisi Optima Sdn Bhd (“EOSB”), has also received a Letter of Contract Amendment and Extension for the Price Agreement for Refurbishment of LPG Cylinders for Petronas Dagangan Berhad: Requalification (“RQ”) and Shot-Blast Repainting (“SRP”) of LPG Cylinders (Contract No: PDB/LPG/37/2018/2099).

AND that both KKB and EOSB accepted the Price Agreements with a combined total Contract Sum worth approximately RM30.3 million (Ringgit Malaysia: Thirty Million Three Hundred Thousand Only).

DURATION OF CONTRACT

Both PETRONAS Contracts extension term is for a period of two (2) years commencing from 15 March 2022 until 14 March 2024 (“Contract Extension Period”).

FINANCIAL EFFECTS

The abovementioned Contracts will have no effect on Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the supply period.

RISK FACTORS

Risk factors affecting the abovementioned Contracts include execution risks such as the COVID-19 ongoing pandemic and its effect, availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

To the best of our knowledge, none of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned Contracts.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Contracts are the best interest of KKB and its group of companies.

This announcement is dated 24 February 2022.