INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB and its subsidiary, KKB Industries (Sabah) Sdn. Bhd. has accepted Orders from the following Companies:

(1) PETROSNiaga Sdn. Bhd. (“PNSB”) for the Supply and Delivery of New LPG Cylinders (“PNSB Contract”); and

(2) Gamuda Berhad for the Manufacture, Supply, Deliver and Unloading of Mild Steel Concrete Lined (MSCL) Pipes and Specials in Sabah (“GAMUDA Contract”).

The combined total contract sum for all the two (2) abovementioned Contracts is worth approximately RM89 million (Ringgit Malaysia Eighty Nine Million Only).

DURATION OF CONTRACT

The completion period for PNSB Contract is for three (3) years and the completion date for the GAMUDA Contract is scheduled to be within the Second Quarter of 2026.

FINANCIAL EFFECTS

The PNSB Contract and GAMUDA Contract 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 Contracts/supply period.

RISK FACTORS

Risk factors affecting the PNSB Contract and GAMUDA Contract 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 PNSB Contract and GAMUDA Contract.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned PNSB Contract and GAMUDA Contract are in the best interest of KKB and its Group.

This Announcement is dated 16 December 2024.