The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) wishes to announce that KKB has initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) against Fook Lai Construction & Development Sdn. Bhd. (“Fook Lai”).

Under and by virtue of a Letter of Acceptance for 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 (SMITH)] dated 30 August 2022, Fook Lai engaged KKB for the aforementioned Sub-Contract Work.

KKB is claiming against Fook Lai for the outstanding progressive claims amounting to RM10,059,082.30.

The aforesaid legal action initiated by KKB is not expected to have any material effect on the earnings, net assets and gearing of KKB Group for the financial year ending 31 December 2024. The legal action is also not expected to have any material operational impact on KKB Group.

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 legal action.

The Board will make further announcements if there are any material developments on the above matter.

This Announcement is dated 24 December 2024.