1.   INTRODUCTION

The Board of Directors of the Company is pleased to announce that its wholly-owned subsidiary, Powerwell International Sdn Bhd, had on 14 June 2022 accepted a Letter of Award dated 10 June 2022 from Tialoc Malaysia Sdn Bhd, for the supply, installation, testing and commissioning of low voltage panels 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 RM94,116,600.00 (“Supply Contract”).

The commencement date of the Supply Contract as per the Letter of Award is 10 June 2022 and the delivery of the Supply Contract is expected to be completed by 15 March 2023.

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 have 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 acceptance of the Supply Contract is in the best interest of the Company.

Please find attached Powerwell's press release entitled "POWERWELL SECURES ITS SECOND CONTRACT FROM TIALOC MALAYSIA IN 2022 WORTH RM94 MILLION".

This announcement is dated 14 June 2022.