ACCEPTANCE ON THE LETTER OF AWARD (“LOA”) FOR RENEWAL OF CA GEN (TSO)  AND REPORT COMPOSER SYSTEM LICENSE FOR LEMBAGA HASIL DALAM NEGERI (LHDN)

1.         Introduction

HeiTech Padu Berhad (“HeiTech” or “the Company”) is pleased to announce that the Company has, on 13.1.2021, signed the LOA for Renewal of CA GEN (TSO) and Report Composer System License Mainframe, for Lembaga Hasil Dalam Negeri (LHDN).

2.         The Contract Value

The Contract Value is RM35,200,000.00 (Ringgit Malaysia Thirty Five Million Two Hundred Thousand Only).

3.         Duration of the Contract

The Contract is for a period of Three (3) years commencing from 1 February 2021 to 31 January 2024.

4.         The effect on net assets of HeiTech Group

The Contract will not have any effect on HeiTech Group’s net asset for the financial year ending 31 December 2021.

5.         The risks in relation to the Contract

The risks are normal risks encountered by companies undertaking a similar endeavour and the Company has taken the necessary steps to protect itself and to mitigate the risks as and when they occur.

6.         Directors' and Substantial Shareholders' Interest

None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of HeiTech has any interest, either direct or indirect in the above Contract.

7.         Statement of the Directors

The Board of Directors is of the opinion that the execution of the Contract is in the ordinary course of business and is in the best interest of the Company.

8.         Financial effects

The Contract is expected to have positive effects on future earnings and earnings per share of HeiTech. Nevertheless, the Contract will have no material effect on the dividend policy, share capital and substantial shareholdings of the Company for the financial year ending 31 December 2021

This announcement is dated 13 January 2021.