1.         INTRODUCTION

The Board of Directors of AWC wishes to announce that DDT, had on 28 July 2020 entered into a Memorandum of Understanding (“MOU”) with Techkem Utilities Sdn Bhd (“TECHKEM”)

(each hereinafter referred to as a “Party”, and collectively “the Parties”)

2.         DETAILS OF THE MOU

(a) DDT is a wholly owned subsidiary of AWC, providing services from engineering design, component and equipment supply to installation of rainwater harvesting system for both residential homes and commercial buildings in Malaysia. DDT holds four exclusive dealerships for the distribution of Rainwater Harvesting Components and Products in Malaysia. Some of the iconic landmark projects DDT were involved in includes IKEA Penang, Kuala Lumpur International Airport 2 (klia2), The Astaka in Iskandar Malaysia, Exchange 106 in TRX and the soon to be tallest sky scrapper in Malaysia, the Merdeka PNB 118.

(b)  DDT and TECHKEM are collaborating with each other to jointly explore and finance water related project opportunities in Malaysia and the ASEAN region.

3.         INFORMATION ON TECHKEM

TECHKEM is a wholly-owned subsidiary of the TECHKEM Group, one of the leading water treatment solution providers in process and specialty chemicals, involved in various projects in multiple industries. With more than 18 years’ experience in engineering, procurement, construction, commissioning (EPCC), operation and maintenance (O&M), design, build, operate & transfer (DBOT) and distribution of specialty chemical products for the water and wastewater market, TECHKEM has completed multiple projects locally and internationally.

The Directors and shareholders of TECHKEM are as follows: -

4.         RATIONALE OF THE MOU

The MOU will enable the parties to explore water related project opportunities in Malaysia and the ASEAN region.

5.         DURATION OF THE MOU

This MOU shall come into force from the date of execution and is valid for twelve (12) months unless terminated by the Parties. The MOU shall be terminated automatically if:

(i) The Parties have made a definitive agreement to implement the purposes and objectives of this MOU; or

(ii) the expiration of the term of the MOU, whichever comes first.

6.         EFFECTS OF THE MOU

The MOU will not have any effect on the share capital and substantial shareholders’ shareholdings of AWC. The MOU is not expected to have any material immediate effect on the earnings per share, net assets per share and gearing of AWC for the financial year ending 30 June 2021.

7.         DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors and/or major shareholders of AWC and/or persons connected with them have any interest, whether directly or indirectly, in the MOU.

8.         DIRECTORS’ STATEMENT

The Board of Directors of AWC, having considered all aspect of the MOU, is of the opinion that the MOU is in the best interest of the Company.

9.         DOCUMENT FOR INSPECTION

A copy of the MOU will be available for inspection by the shareholders at the registered office of the Company at Third Floor, No. 77, 79 & 81, Jalan SS 21/60, Damansara Utama, 47400 Petaling Jaya, Selangor from 28 July 2020 for a period of three (3) months.

The Company will make the necessary announcement on further development of the MOU in due course.

This announcement is dated 28 July 2020.