The Company wishes to announce that KPS-HCM, a 51% owned subsidiary of KPS Berhad and the remaining 49% equity interest owned by HCM Engineering Sdn. Bhd., has at its Members’ meeting held on Thursday, 29 August 2024, resolved that KPS-HCM to be wound up by way of Members’ Voluntary Winding Up pursuant to Section 439(1)(b) of the Companies Act 2016.

A. Information on KPS-HCM

KPS-HCM was incorporated in Malaysia under the Companies Act, 1965 on 8 October 2007. KPS-HCM is principally involved in providing general civil engineering works, building construction and maintenance for both public and private sectors. The present share capital of KPS-HCM is RM5,715,000 comprising 5,715,000 ordinary shares. As of 31 December 2023, the total cost of investment in KPS-HCM is RM2,914,997.00.

KPS-HCM was not a major subsidiary of the Company after the issuance of the Certificate of Practical Completion (CPC) on 31 December 2020 for the infrastructure works for the development of Phase 3C, Pulau Indah Industrial Park.

Other than the expenses to be incurred in relation to the Members’ Voluntary Winding Up, no losses are expected to arise from the Members’ Voluntary Winding Up.

B. Appointment of Liquidator

Mr Khoo Eng Lee and Ms Foo Li Ling of 13A, Jalan SS 21/56B, Damansara Utama, 47400 Petaling Jaya, Selangor Darul Ehsan have been appointed as the Liquidators of KPS-HCM on 29 August 2024 for the purpose of the Members’ Voluntary Winding Up.

C. Rationale of voluntary winding up

KPS-HCM has ceased its operations during the financial year ended 31 December 2023 and it has no intention of carrying on business in the future. The Members’ Voluntary Winding Up will enable KPS Berhad to save future costs associated with maintaining KPS-HCM.

D. Effect of voluntary winding up

The Members’ Voluntary Winding Up will not have any effect on the issued share capital and the substantial shareholders’ shareholding in KPS Berhad.

The Members’ Voluntary Winding Up is not expected to have any material effect on the consolidated net asset per share, gearing, earnings and earnings per share of KPS Berhad for the financial year ending 31 December 2024 as well as the business operations of KPS Berhad.

E. Directors and Major Shareholders Interest

None of the Directors or major shareholders of the Company or persons connected to them have any interest, direct or indirect, in the Members’ Voluntary Winding Up.

This Announcement is dated 29 August 2024.