1. INTRODUCTION

The Board of Directors of the Company is pleased to announce that its wholly-owned subsidiary, Kejuruteraan Powerwell Sdn Bhd, had on 2 September 2024 received two (2) purchase orders dated 22 August 2024 and 29 August 2024 from Raiden M&E Sdn Bhd for the supply, delivery, testing and commissioning of low voltage electrical switchboards and associated equipment components for the Project Rapid Transit System (RTS) Link (Package 2A) for a total combined contract value of RM9.78 million (“Purchase Orders”).

The Purchase Orders are expected to be fulfilled by second quarter of the calendar year 2025.

2. FINANCIAL EFFECTS

The Purchase Orders are expected to contribute positively to Powerwell’s consolidated earnings and net assets for the financial years ending 31 March 2025 and 2026.

3. RISK FACTORS

The Company does not foresee any exceptional risks other than the normal operational risks associated with the acceptance and fulfillment of the Purchase Orders 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 have any interest, direct or indirect, in the acceptance of the Purchase Orders.

5. STATEMENT BY DIRECTORS

The Board of Directors of Powerwell, having considered all aspects of the Purchase Orders, is of the opinion that accepting the Purchase Orders is in the best interest of the Company.

This announcement is dated 2 September 2024.