1.  INTRODUCTION

Further to the announcement dated 15 March 2021 and 19 August 2021, the Board of Directors of JRB wishes to announce that the Company’s wholly-owned subsidiary, JAKS Solar Nibong Tebal Sdn Bhd (“JSNTSB”), had on 8 October 2021 awarded a contract to Fabulous Sunview Sdn Bhd (“FSSB”) to appoint FSSB as the main engineering, procurement and construction (“EPC”) contractor (“EPC Contractor”) for the development of a solar photovoltaic energy generating facility with a capacity of 50MWac (“Project”) for connection to electricity networks at Daerah Seberang Perai Selatan, Negeri Pulau Pinang (“Contract”).

2.  INFORMATION ON FSSB

FSSB is a company incorporated in Malaysia which is in the business of providing turnkey solutions from engineering, procurement, construction, commissioning for the implementation of alternative energy systems and financing services.

3.  DETAILS OF THE CONTRACT

JSNTSB has on 19 August 2021 entered into a power purchase agreement with Tenaga Nasional Berhad to design, construct, own, operate and maintain a solar photovoltaic energy generating facility with a capacity of 50MWac on a piece of land located in Mukim 7, Daerah Seberang Perai Selatan, Negeri Pulau Pinang.

Pursuant to the Contract, FSSB is appointed as the EPC Contractor for the Project and shall provide EPC services to design, engineering, procurement, construction, testing and commissioning of the Project.

The Contract governs the obligations of JSNTSB and FSSB to implement the Project in accordance with the terms and conditions as prescribed in the Contract, covering up to the end of the defects liability period which is two (2) years after the commercial operation date or such other extended period as provided in the Contract.

4.  FINANCIAL EFFECTS

The Contract will not have any effect on the share capital and shareholding structure of JRB. It is not expected to have any material impact on the earnings and net assets of JRB group of companies (“JRB Group”) for the financial year ending 31 December 2021. Notwithstanding, with the Solar Plant expected to commence commercial operations in year 2023, the Project is expected to contribute positively to the future earnings of JRB Group.

5.  RISK FACTORS

The Company and JSNTSB do not foresee any exceptional risk other than the normal operational risks associated with the Contract and/or Project. Nevertheless, the Company and JSNTSB will take the necessary steps to mitigate the risks as and when they occur.

6.  DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

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

7.  STATEMENT BY DIRECTORS

The Board of Directors of JRB is of the opinion that the execution of the Contract is in the best interest of the JRB Group.

8.  APPROVAL REQUIRED

The Contract does not require the approval of the shareholders of the Company or any relevant regulatory authorities.

This announcement is dated 8 October 2021.