Reference is made to the Company’s announcements dated 27 July 2023 in relation to MGB International For Industry (“MGBI”), an indirect wholly-owned subsidiary of the Company, entered into the Joint Venture Agreement (“JVA”) with SANY Alameriah Industrial (“SA”), a branch of SANY Alameriah For Construction Co., Ltd., on 27 July 2023, to outline the obligations and responsibilities of each party to collaborate and co-operate with each other by way of a joint venture.

The Board of Directors of MGB Berhad (“MGB” or “the Company”) wishes to update that MGBI had on 7 February 2024 accepted two (2) Purchase Orders from SA for a total of approximately Saudi Riyals Ninety-Four Million Five Hundred Three Thousand Three Hundred Sixty Four (SAR 94,503,364.00) (equivalent to approximately Ringgit Malaysia One Hundred Nineteen Million Five Hundred Forty-Six Thousand Seven Hundred Fifty Five and Cent Forty-Six (RM119,546,755.46) at foreign exchange rate of 1.265), in relation to a contract signed between SA and SALD Industrial Company (“SALD”) for the supply and installation of precast elements consisting of walls, staircases, beams and hollow core slabs for 400 Villas in the ROSHN ALAROUS development located north of Jeddah, the Kingdom of Saudi Arabia (“KSA”) (“Purchase Orders”).

The entire scope of supply and installation of precast elements shall be completed within fourteen (14) months from the commencement date, which is the date of receipt of advance payment or the approved shop drawing is submitted, whichever is later.

The ROSHN ALAROUS is a highly prestigious development, that extends over 4 million square meters and will offer more than 18,000 residential units once all phases have been fully developed. The first phase of ALAROUS nicknamed the “The Bride of the Red Sea”, will offer more than 2,200 single family units, as well as pedestrian-friendly streets, green spaces alongside retail, sports and other recreational amenities. ROSHN is a national real estate developer that is backed by the Public Investment Fund (“PIF”) of the KSA. The PIF is the Kingdom’s sovereign wealth fund, which is among the largest sovereign wealth funds in the world with over USD 700 billion in assets under management. In its dedication to supporting the Kingdom’s vision 2030, ROSHN aims to make available 400,000 homes by 2030, of which 30% will be new housing stock.

The Purchase Orders will have no effect on the share capital and shareholding structure of the Company but it is expected to contribute positively to revenue and gross profit of the Company.

None of the Directors, major shareholders and/or chief executive of the Company and/or persons connected with them has any interest, direct or indirect in the Purchase Orders.

This announcement is dated 8 February 2024.