1.   INTRODUCTION

The Board of Directors of the Company is pleased to announce that its wholly-owned subsidiary, Powerwell International Sdn Bhd, had on 11 March 2022, accepted a Letter of Award dated 9 March 2022 from Tialoc Malaysia Sdn Bhd, to supply, install, testing and commissioning of medium voltage switchgears and power distribution transformers for a new building project of a leading multi-national corporation’s semiconductor production and testing plant in Kulim Hi-Tech Park, Kedah, Malaysia for a total contract value of RM39,871,820.00 (“Supply Contract”).

The delivery of the Supply Contract is expected to be completed by October 2022.

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 2023.

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 14 March 2022.