INTRODUCTION

The Board of Directors (“The Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its associate company, Edisi Optima Sdn Bhd, has received a Letter of Award from PETRONAS Dagangan Berhad (“PETRONAS”) for LPG Cylinder Fabrication and Maintenance for PETRONAS (“PETRONAS Contract”).

AND

That KKB has also received a Purchase Order from Perbena Emas Sdn. Bhd. for the Supply of Mild Steel Concrete Line (“MSCL”) Pipes and Fittings (“Purchase Order”).

A formal agreement for the PETRONAS Contract and the Purchase Order shall be executed in due course.

The combined total contract sum for the abovementioned PETRONAS Contract/Purchase Order is worth approximately RM37.9 million (Ringgit Malaysia Thirty-Seven Million Nine Hundred Thousand Only).

DURATION OF CONTRACT

The PETRONAS Contract is effective from March 2024 for a period of one (1) year with an option to extend for another one (1) year until 2026.

The Purchase Order is scheduled to be completed by the second quarter of 2025.

FINANCIAL EFFECTS

The PETRONAS Contract/Purchase Order will have no effect on Share Capital of the Company and are expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the Contract/supply period.

RISK FACTORS

Risk factors affecting the PETRONAS Contract/Purchase Order include execution risks such as availability of skilled manpower and materials, forex and changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned PETRONAS Contract/Purchase Order.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned PETRONAS Contract/Purchase Order are in the best interest of KKB and its Group.

This announcement is dated 6 May 2024.