1.      INTRODUCTION

         The Board of Directors of Central Global Berhad (“CGB" or "Company”) wishes to announce that RYRT International Sdn. Bhd. ("RYRT International"), a 70% owned subsidiary of the Company had on 28 September 2022 accepted a letter of award from a third-party main contractor, Pembinaan Urusmesra Sdn. Bhd. for the sub-contract works including the supply of plant, machinery, labour and materials required for the construction and completion of a project known as "Projek Jalan Semawang Ke Tanjung Kuala Gum-Gum, Sandakan, Sabah" for a contract sum of Ringgit Malaysia One Hundred Eighty-Three Million Two Hundred Eighty-Eight Thousand (RM183,288,000.00) ("Contract").

2.      DESCRIPTION OF THE CONTRACT

         The detailed scope of the sub-contract works shall comprise but not limited to the following (“Project”):-

         (i)      To construct and complete "Projek Jalan Semawang Ke Tanjung Kuala Gum-Gum, Sandakan, Sabah" namely Environmental Protection and Enhancement, Traffic Management and Control, Demolition and Site Clearance, Earthworks, Geo-technical Works, Precast Reinforced Panel Wall & Pile Embankment, Drainage Work, Road and Pavings, Internal Bridge, Lighting, Access Road for Esscom, and any provisional sum items as may be instructed by Jabatan Kerja Raya Sabah.

         (ii)     To provide, install, dismantle and remove of all temporary structure, machine and equipment, and scaffolding for successful completion of works.

         (iii)    To provide, maintain and remove all preliminary items such as vehicles, office equipment, office, stores and all other items as specified in Bill of Quantities.

The Project shall commence on 14 October 2022 and is estimated to be completed by 13 October 2025.

3.      RATIONALE

The acceptance of the Contract is in the ordinary course of business of RYRT International and will enhance its existing order book.  It is expected to provide an additional stream of revenue and profits to the Group over the next three (3) years.

4.      RISK

There are no foreseeable significant risks other than normal operational risks associated with projects of such nature during the tenure of the Project.

5.      FINANCIAL EFFECT

The Contract will have no effect on the share capital of the Company but is expected to contribute positively to the earnings and net assets per share of the Group for the financial years ending 2023 to 2025.

6.      DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors and/or major shareholders of the Company or persons connected to with them have any interest, direct or indirect, in the Contract.

This announcement is dated 28 September 2022.