1. INTRODUCTION

The Board of Directors of Kawan Renergy Berhad (“KRB”) is pleased to announce that its wholly owned subsidiary, KAWAN ENGINEERING SDN BHD (“KESB”) had on 21 October 2025 accepted an order from GOVI CAST SDN. BHD. (“GCSB”) to undertake the engineering, procurement and construction of an additional Chemical Production Line (Line 3) at its Port Klang Factory with a order value of RM12,750,000.00 (“Order”), to be delivered and commissioned by 1 May 2026

2.INFORMATION ON GOVI CAST SDN. BHD. (“GCSB”)

GCSB was incorporated on 25 January 2017 and having its registered office address at  No.10, Jalan Sultan Alauddin 5/KY17, Bandar Sultan Suleiman Phase 4, 41200, Port Klang, Malaysia.

GCSB’s nature of business is manufacturing and trading of calcium stearate emulsion and dispersion.

3.FINANCIAL EFFECTS

The Order will have no effect on the issued share capital and substantial shareholdings of the Company as there is no issuance of new ordinary shares in the Company.

However, the Order is expected to contribute positively towards the earnings and net assets of the Company and its subsidiaries for the financial year ending 31 October 2026.

4.RISK FACTORS

The Project is in the ordinary course of business for KESB. KESB does not foresee any exceptional risks other than the normal operational risks associated with the Project.

5.INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSON CONNECTED TO THEM

None of the directors and/or major shareholders and/or persons connected with a director or a major shareholder of KRB have any interest, direct and indirect in the Project.

6.DIRECTORS’ STATEMENT

The Board of Directors having considered all aspects of the purchase order, is of the opinion that the Project is in the best interest of KRB.

This announcement is dated 23 October 2025.