INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB has received two (2) Letters of Award from Jabatan Bekalan Air Luar Bandar Sarawak (“JBALB”) for the Proposed Construction and Completion of Water Supply from Kota Samarahan to Sebuyau, Samarahan Division for Sarawak Water Supply Grid Programme – Stressed Areas. The two (2) Letters of Award is for Contract Package 3A and Contract Package 3B.

In addition, KKB has also received additional supply orders for MSCL Pipes & Specials from the followings:

i)    Laras Jaya Engineering Sdn Bhd

ii)    Cipta Wawasan Maju Engineering Sdn Bhd

iii)   Cityon Development Sdn Bhd

These supply orders are to be delivered in stages within the 1H2020.

The total combined contract sum for the abovementioned contracts and orders is worth approximately RM60.9 million (Ringgit Malaysia Sixty Million Nine Hundred Thousand Only).

DURATION OF CONTRACT

The contract period for Construction Contract Package 3A is fourteen (14) months commencing from end October 2019 and scheduled to complete by December 2020.

For Construction Contract Package 3B, the duration of the contract is sixteen (16) months commencing from end October 2019 and scheduled to complete by February 2021.

FINANCIAL EFFECTS

The contracts will have no effect on the Share Capital of the Company and are expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the contracts.

RISK FACTORS

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

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned contracts.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned contracts are in the best interest of KKB and its Group of companies.

This announcement is dated 21 October 2019.