Introduction

HEB wishes to announce that on 16 August 2021, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, has entered into an Engineering Services Contract with Cenviro (Johor) Sdn Bhd [Registration No. 201601019029 (1189966-A)] (“Client”) for the appointment of HSSI as the Owner’s Engineer of the Client for the development of a Scheduled Waste Management Centre in Johor (“Contract”).

Information on the Contract

HSSI’ scope of services under the Contract is to act as the Owner's Engineer of the Client for the proposed development of a Scheduled Waste to Energy Plant in Johor (“Project”) which includes design review, site supervision and monitoring.

Pursuant to the exclusive teaming arrangement between HSSI and HSS Engineering Sdn Bhd (“HSSE”), a wholly-owned subsidiary of HEB, HSSI and HSSE will be collaborating exclusively to execute and complete the Contract. 

The Contract is expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2021 to 31 December 2025.  

The Contract will not have any impact on the share capital and/or shareholding structure of HEB.

Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of HEB and persons connected to them has any interest, direct or indirect, in the Contract.

Risk Factors

The risk factors affecting the Contract include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the said Project given the role of HSSI pursuant to the Contract is to provide project management consultancy services for the Project as described above. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

Directors’ Statement

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of HEB Group and it is in line with the Group’s overall growth strategy embarking into the renewable energy sector.

This announcement is dated 16 August 2021.