INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary, OceanMight Sdn. Bhd. has received a Letter of Award from MALAYSIA MARINE AND HEAVY ENGINEERING SDN. BHD. (“MMHE”) for Provision of Fabrication Engineering, Supervision, Manpower, Necessary Equipment/Tools and Consumables to carry out Piles Fabrication, Loadout and Sail Away for SK408W Jerun A CPP Jacket (“Subcontract”).

A formal agreement for the said Subcontract will be executed in due course.

AND

KKB has also received a Letter of Award from Kuching Water Board (“KWB”) for Diversion Works of the Existing 1100mm N.D. MSCL Pumping Mains at Sg. Maong Paroh, Jalan Matang/Batu Kawa, Kuching Division (“KWB Contract”).

The combined total contract sum for the abovementioned Subcontract and KWB Contract is worth approximately RM23.7 million (Ringgit Malaysia Twenty-Three Million Seven Hundred Thousand).

DURATION OF CONTRACTS

The Subcontract will commence in February 2022 and to be completed by February 2023.

For KWB Contract, the contract execution period is Twelve (12) months.

FINANCIAL EFFECTS

The abovementioned Subcontract and KWB Contract will have no effect on Share Capital of KKB and are expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of Subcontract and KWB Contract.

RISK FACTORS

Risk factors affecting the Subcontract and KWB Contract 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’ INTERESTS

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 Subcontract and KWB Contract.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Subcontract and KWB Contract are in the best interest of KKB and its group of companies.

This announcement is dated 4 March 2022.