"Unless otherwise stated, the terms used in this announcement shall carry the same meaning as defined in the Company's announcements dated 29 August 2023, 28 November 2023, 28 February 2024 and 30 May 2024."

1.         INTRODUCTION

On 29 August 2023, the Board of Directors of PMAH had announced that the Company entered into the MOU with XJTU.

Accordingly, the Board of Directors of PMAH wishes to announce that the Company had on 19 July 2024 entered into a Collaboration Agreement (“Agreement”) with XJTU (the Company and XJTU to be collectively referred to as “the Parties”) to collaborate in researching and developing economically viable methods to concentrate, capture and utilise the direct carbon emission that arises from the manufacturing process of the Group’s operations ("Project").

2.         INFORMATION ON XJTU

XJTU is a key university which is directly administered by the Chinese Education Ministry and is one of the oldest current institutions of higher education in China. The predecessor of XJTU was Nanyang College, which was founded in 1896 in Shanghai and renamed Jiaotong University in 1921. In 1956, the main body of Jiaotong University was moved to Xi'an according to the decision issued by the State Council, and was formally named Xi'an Jiaotong University in 1959, which was listed as a national key university.

XJTU is a top university in China, which provides the experiment and simulation infrastructure. The group has conducted 13 scientific research projects and presided over the first batch of original projects of National Natural Science Foundation of China related to carbon dioxide capture, and enterprise projects such as CO2 capture in China National Oil Offshore Company and CO2 capture in Enfield Industrial Flue Gas. The group has published 60 papers in international journals, granted by 10 patents in CO2 capture field. The group won the Excellent Doctoral Dissertation Award of Shaanxi Province and the Excellent Advisor Award of Chinese Mechanical Engineering Society.

3.         RATIONALE

Following the MOU, the Agreement has been entered into to drive research and development efforts in carbon capture and utilisation. This collaboration aims to develop an economically viable carbon capture and utilisation model towards a greener and more sustainable future for PMAH group.

4.        SALIENT TERMS OF THE AGREEMENT

Under the terms of the Agreement, the Parties agreed, inter-alia, on the following:

4.1      Scope of work

(a)      Develop the partnership between the Parties through well-planned research projects;

(b)      Prompt collaborative research between the Parties through conducting joint research projects;

(c)      Conduct collaborative research with PMAH in flue gas collection and analysis, increasing CO2 feedstock concentration and conduct CO2 capture and utilisation; and

(d)      The total grant to be contributed by PMAH is RMB12.0 million based on successful milestones including system design, research fee, professional training programs, resources, transfer of knowledge etc.

4.2      Research Joint Committee

The Parties shall establish a joint committee to identify, plan and manage the Project collaboration in accordance with the Agreement. The committee will set the overall direction, plan and decisions for the Project.

4.3      Intellectual Property Rights

The new intellectual property rights developed and obtained jointly by the Parties during the Project shall be jointly owned by both PMAH and XJTU.

4.4      Unified Commencement

The Parties agree that the obligations, representations and commitments set forth in the Agreement shall be effective as of the same date as the MOU, which is 29 August 2023.

5.         VALIDITY PERIOD OF THE AGREEMENT

The Agreement is effective from 29 August 2023 and shall remain in effect throughout the duration of the Project, continuing until its completion, subject to any extension by a seven (7) days’ notice in writing to be served to the other party before the completion of the Project.

The Project had commenced on 1 September 2023 and is expected to complete by 31 August 2026 or such other extension as may be mutually agreed in writing by the Parties.

6.         FINANCIAL EFFECTS

The Agreement is not expected to have any material effect on the earnings, net assets and gearing of the Company and of the Group for the financial year ended 31 December 2023.

The Agreement will not have any effect on the issued and paid-up share capital of the Company as well as its directors’ or its substantial shareholders’ shareholdings.

7.         APPROVALS REQUIRED

The Agreement is not subject to the approval of the shareholders of PMAH or any other relevant authorities.

8.        DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors, major shareholders and/or persons connected with a director or a major shareholder of the Company, have any interest, direct or indirect, in the Agreement.

 9.       DOCUMENT AVAILABLE FOR INSPECTION

The MOU and Agreement is available for inspection at the registered office of PMAHB at 12th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor during business hours from Monday to Friday (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 19 July 2024.