INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“the Company” or “KKB”) is pleased to announce that KKB has entered into an Agreement with Sinohydro Corporation (M) Sdn. Bhd. (“Sinohydro”) for the Supply of Pipes and Fittings.

AND

KKB has received an additional Purchase Order for Annual Supply and Delivery of Steel Products from Syarikat SESCO Berhad (“SESCO”).

The total combined contract sum for the abovementioned two (2) contracts is worth approximately RM29 million (Ringgit Malaysia: Twenty Nine Million Only).

DURATION OF CONTRACT

The contract duration for Sinohydro is approximately nine (9) months whereas the supply for SESCO is approximately four (4) months.

FINANCIAL EFFECTS

The above contracts are expected to contribute positively to the earnings and net assets of the KKB Group for the financial year ending 31 December 2019 and 2020.

RISK FACTORS

Risk factors affecting the Contracts/order include execution risks such as availability of materials and skilled manpower, changes in pricing, weather conditions and/or political, global 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 Contracts/order.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Contracts/order is in the best interest of KKB and its Group.

This announcement is dated 4 September 2019.