1.   INTRODUCTION

The Board of Directors of the Company is pleased to announce that Powerwell’s wholly-owned subsidiary, Kejuruteraan Powerwell Sdn Bhd, had on 19 April 2024 accepted a Letter of Award for Sub-Contract Work dated 17 April 2024 from One Ocean Environment Sdn Bhd for the supply of low voltage switchboards for the Proposed Development of Sg. Rasau Water Supply Scheme (Stage 1) Selangor Darul Ehsan; Package 1 – Design and Build of Proposed Rasau Intake, Raw Water Pumping Mains, Water Treatment Plant and Associated Works for a total contract sum of RM22,046,964.40 (“Sub-Contract”).

The delivery of the Sub-Contract is expected to be completed by end of June 2025.

2.   FINANCIAL EFFECTS

The Sub-Contract is expected to contribute positively to Powerwell’s consolidated earnings and net assets for the financial year ending 31 March 2025 onwards.

3.   RISK FACTORS

The Company does not foresee any exceptional risks other than the normal operational risks associated with the Sub-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 Sub-Contract.

5.   STATEMENT BY DIRECTORS

The Board of Directors of Powerwell, having considered all aspects of the Sub-Contract, is of the opinion that the Sub-Contract is in the best interest of the Company.

This announcement is dated 22 April 2024.