INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB” or “the Company”) is pleased to announce that its subsidiary, KKB Industries (Sabah) Sdn. Bhd. has received a Purchase Order from Seri Ghanimi Contractor Sdn. Bhd. for the Supply/Export of MSCL Pipes for project use in Brunei (“Purchase Order”).

AND

Its subsidiary, OceanMight Sdn. Bhd. has received a Service Order from MALAYSIA MARINE AND HEAVY ENGINEERING SDN. BHD. (“MMHE”) for EPCIC Alliance for Kasawari Carbon Capture & Storage (CCS) (“MMHE Project”).

The combined total contract sum for the abovementioned Orders are worth approximately RM27 million (Ringgit Malaysia Twenty-Seven Million Only).

DURATION OF CONTRACT

The duration for the Purchase Order is to be delivered by March 2024.

The completion date for MMHE Project is in July 2025.

FINANCIAL EFFECTS

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

RISK FACTORS

Risk factors affecting the said Orders include execution risks, 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 Orders.

DIRECTORS’ STATEMENT

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

This announcement is dated 17 November 2023.