1. INTRODUCTION

The Board of Directors of GCAP are pleased to announce that on 14 December 2020, GHSB a 90% subsidiary of GCAP, has been notified of its successful application for a 10MW small hydropower project in Sungai Perak, Salu (as outlined below) under the small hydro e-bidding process under SEDA Malaysia which was conducted in June 2020.

This has improved the expected annual revenue for this 10MW project by 15.9% over the 21 year tenure.

2. INFORMATION ON GHSB

GHSB (Company Registration No. 513154-T) is a company incorporated in Malaysia under the Companies Act 2016 and having its business address at D-5-10 Block D, Pusat Komersial Southgate, No 2 Jalan Dua, off Jalan Chan Sow Lin, 55200 Kuala Lumpur.

GHSB is 90% owned by GCAP and the remaining 10% is owned by Perak Hydro Renewable Energy Corporation Sdn Bhd (Company Registration No. 908000-H).

3. DETAILS OF THE FIT APPROVAL

a)   GHSB is currently holding a Feed-in Approval Holder (“FiAH”) Certificate issued by SEDA Malaysia on 30 March 2018 bearing application no. H2017100014.

b)   This FiAH Certificate was issued for a 10MW installed capacity low-head small hydropower plant situated on Sungai Perak, Salu which under the administration of Lenggong District Council, Perak. The yearly energy yield of 67,767 Megawatt-hour (MWh) at a fixed price of RM0.25 per kilowatt-hour (kWh) for a period of 21 years is reflected in the signed Renewable Energy Power Purchase Agreement (REPPA) with Tenaga Nasional Berhad (TNB).

c)   In February 2020, SEDA Malaysia announced that it will open an e-bidding process with different tiers of tariff rate;

i) up to RM0.26 per kWh for high-head projects; and

ii) up to Rm0.29 per kWh for low-head projects.

d)  SEDA Malaysia encouraged existing FiAH Certificate holders who have yet to achieve their Commencement Date to participate in this e-bidding process without the requirement to surrender their existing FiAH Certificate.

e)   GHSB’s management took this opportunity and participated in this e-bidding process to secure an improved FiT rate compared to the existing FiAH Certificate.

g)   The relevant changes from the existing FiAH Certificate to the latest FiT Approval are highlighted below:

4. FINANCIAL EFFECTS OF THE FIT APPROVAL

4.1       Share capital and substantial shareholders’ shareholdings

The FiT Approval will not have any effect on the issued and paid-up share capital and the shareholding of the substantial shareholders of GCAP

4.2       Net assets (“NA”) per share and gearing

The FiT Approval is not expected to have any material effect on the consolidated NA and gearing of GCAP for the financial year ending 31 December 2020.

4.3       Earnings and earnings per share (“EPS”)

The FiT Approval is not expected to have any material impact on the earnings and EPS of GCAP for the financial year ending 31 December 2020.

5. APPROVALS REQUIRED

This FiT Approval is not subject to approval from shareholders, other relevant authorities and/or parties.

6. INTERESTS OF DIRECTORS’, MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED TO THEM

None of the directors and/or major shareholders of GCAP and/or persons connected to them has any interest, direct or indirect in relation to this FiT Approval.

7. DIRECTORS’ STATEMENT

The Board is of the opinion that this improved FiT Approval is in the best interest of the Company.

8. DOCUMENT AVAILABLE FOR INSPECTION

The FiT Approval announcement is available for inspection in SEDA Malaysia’s website and at the Company’s registered office of 11B, 2nd Floor, Persiaran Greentown 9, Greentown Business Centre, 30450 Ipoh, Perak Darul Ridzuan during normal office hours from Mondays to Fridays (except on public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 16 December 2020.