The Board of Directors of the Company wishes to announce that the Company’s wholly-owned subsidiary, KNM Process Systems Sdn Bhd (“KNMPS”), had on 13 October 2025 received an email notification from Petroliam Nasional Berhad (“PETRONAS”) in relation to KNMPS’ appeal on its licensing non-compliance status due to the Qualified Auditor’s Report in the Audited Financial Statements for the financial year ended 31 December 2024.

The Board wishes to inform that the said matter can only be fully regularised once the external auditors of KNMPS, Messrs KPMG PLT is able to issue unqualified audit reports, which is not expected in the current financial year. The matter will therefore be revisited during the audit for the financial year ending 31 December 2026.

Notwithstanding the above, the Company is still permitted to undertake PETRONAS projects as a subcontractor. Majority of KNMPS’ existing and ongoing PETRONAS-related projects, including the RAPID project and other smaller projects such as the skid fabrication works at the Gebeng plant, are carried out in this capacity.

The Company will make the necessary announcement to Bursa Malaysia Securities Berhad on any material developments in due course.

This announcement is dated 16 October 2025.