1.   INTRODUCTION

The Board of Directors of the Company is pleased to announce that Powerwell's wholly-owned subsidiary, Powerwell International Sdn Bhd, had on 13 July 2021 received a purchase order dated 12 July 2021 from T.T.E. Engineering (M) Sdn Bhd, to supply and install dry type transformer, switchgear and load break switch for an expansion project of a leading multi-national corporation's semiconductor assembly plant and testing facility in Pulau Pinang, Malaysia for a total contract value of RM9,588,675.00 (“Supply Contract”).

The delivery of the Supply Contract is expected to be completed by end of November 2021.

2.   FINANCIAL EFFECTS

The Supply Contract is expected to contribute positively to Powerwell’s consolidated earnings and net assets for the financial year ending 31 March 2022.

3.   RISK FACTORS

The Company does not foresee any exceptional risks other than the normal operational risks associated with the Supply Contract and the Company will take the necessary steps to mitigate the risks.

4.   DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders and/or persons connected with them has any interest, direct or indirect, in the Supply Contract.

5.   STATEMENT BY DIRECTORS

The Board of Directors of Powerwell, having considered all aspects of the Supply Contract, is of the opinion that the Supply Contract is in the best interest of the Company.

This announcement is dated 13 July 2021.