The Board of Directors of TH Heavy Engineering Berhad (“THHE” or “the Company”) wishes to announce that its wholly owned subsidiary, THHE Fabricators Sdn Bhd (“THF”) has been awarded by Agensi Penguatkuasaan Maritim Malaysia (“APMM”) a contract Perkhidmatan Penyelenggaraan Kapal KM Bagan Datuk Milik APMM (“Contract”).

The Surat Setuju Terima (“SST”) dated 30 August 2021 was received by THF on 6 September 2021. THF accepted the SST on 14 September 2021 and uploaded the acceptance into Ministry of Finance’s e-perolehan on 17 September 2021.

INFORMATION ON THE CONTRACT
Under the Contract, the Company is to undertake emergency repair of defects list.  The total value of the Contract is Ringgit Malaysia Two Million (RM2,000,000.00). Work under the Contract is scheduled to be completed within four (4) months.

FINANCIAL EFFECTS
The Contract is expected to contribute positively to the earnings and net assets per share of THHE for the financial years ending 31 December 2021.

RISK FACTORS
Risk factors affecting the Contract include but are not limited the execution risks such as availability of skilled manpower and materials, changes in cost/prices of materials, and changes in political, economic and regulatory conditions. The Board and Management believe that the Company is able to mitigate the abovementioned risk factors.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors or major shareholders or persons connected with the Directors or major shareholders of the Company has any direct or indirect interest in the Contract.

DIRECTORS' STATEMENT
The Board of Directors of THHE is of the opinion that securing the award of the Contract is in the best interest of the Company.

This announcement is dated 17 September 2021.