INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB has received a Letter of Sub-Contract Work: Supply, Fabricate, Painting & Installation of Structural Steel Works for the Proposed Glove Factory for Petchem Industrial Park, Tanjung Kidurong, Bintulu, Sarawak [Sarawak Medical Innovation & Technology Hub (the “SMITH Project”).

KKB has also received a Purchase Order for the C14 RQ Cylinders and C14 Compact Valve from MyGaz Sdn. Bhd (“MyGaz”).

The combined total contract sum for the abovementioned contracts is worth approximately RM17 million (Ringgit Malaysia: Seventeen Million Only).

Both the Sub-Contract and the Purchase Order are scheduled to be completed by the Second Quarter of 2023.

FINANCIAL EFFECTS

The abovementioned Sub-Contract and Purchase Orders 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 endemic 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 in the best interest of KKB and its group of companies.

This announcement is dated 6 September 2022.