The Board of Directors (“the Board”) of TCS wishes to announce that Cahaya Nusantara and TCS Construction (collectively referred as “the Parties”) had mutually agreed to terminate the Letter of Award (“LA”) entered between the Parties in relation to the construction and completion of one level of basement carparks with mechanical and electrical services (B1), one unit of guard house, four retail units, main lobbies, nursery/kindergarden, mechanical and electrical with 33Kv sub-station and landscape works (GL), four levels of carparks podium with mechanical and electrical services (L1-L4), one floor of landscape podium with swimming pools, retail spaces and podium facilities (L5), two tower blocks of 34 storey serviced apartments (Tower A & B) which consist of 336 units per tower with roof top mechanical and electrical services, at PT13108, Precinct 7, Wilayah Persekutuan Putrajaya (“the Project”) with immediate effect.

The LA was entered by the Parties on 30 November 2019 for a total contract sum of RM 223,887,500.00 for the Project.

The LA was mutually terminated due to the delay in the site possession of the project and subsequently the escalation of material prices affecting the viability of the project.

The Board is of the view that, the termination of LA will not have any material effect on the earnings of the Company and net assets of the Group for the financial year ending 31 December 2022.

Having considered all aspects, the Board is of the opinion that the termination is in the best interest of the Company.

This announcement is dated 30 August 2022.