Reference is made to Rohas’ announcement dated 19 October 2022 regarding arbitration proceedings initiated by its 86.8% owned subsidiary, HG Power Transmission Sdn Bhd (“HGPT”), against Power Grid Company of Bangladesh Ltd. (“PGCB”) (“Announcement”). Unless otherwise stated, the abbreviations used in this announcement shall have the same meaning as set out in the earlier Announcement.

(Note: All currency conversions to RM in this announcement are for illustrative purposes only and are based on the middle exchange rates published by Bank Negara Malaysia on 2 April 2025 at 12 p.m)

Background

On 7 August 2016, HGPT entered into the Contract with PGCB for the design, supply, and installation of 132kV and 230kV transmission lines in Bangladesh. The Contract stipulated that claims for price adjustments related to labour and material costs would be based on a price adjustment formula, as specified in the Contract terms.

A dispute arose when PGCB rejected a significant portion of HGPT’s price variation invoices, prompting HGPT to initiate arbitration on 16 October 2022 under the rules of the International Chamber of Commerce. HGPT sought USD5,518,371.10 (approximately RM 24,542,955.47) from PGCB’s originally rejected amount of USD5,526,367.16, plus an additional price adjustment claim for towers (steel) amounting to no less than USD219,477.25. This resulted in a total claim sum of USD5,737,848.35 (“Claimed Sum”).

Summary of the Final Award

HGPT received the Final Award on 31 March 2025, with the Sole Arbitrator ruling that all disputes and claims have been fully and finally settled as follows:

1.  Out of the Claimed Sum, PGCB is ordered to pay HGPT USD1,890,387.98 (or approximately RM8,407,500.54) with interest from 21 November 2021 until full payment.

2.  The remaining Claimed Sum were dismissed.

3.  Arbitration costs are to be borne equally, with PGCB directed to reimburse HGPT USD68,250 (or approximately RM303,541.88) and USD4,700 (or approximately RM20,903.25) as its share.

4.  Each party is to bear its own legal costs.

Operational and Financial Impact of the Final Award

The Final Award is not expected to have a material impact on HGPT, or Rohas and its subsidiaries’ (“Rohas Group”) operations, as the project was completed in 2020.

The awarded sum of USD1,890,387.98 (or approximately RM8,407,500.54), along with interest and in cost reimbursements, will enhance Rohas Group's cash flow. However, the unrecovered amount of USD3,627,983.12 (or approximately RM16,135,454.93) from the Claimed Sum will negatively impact 2024 earnings. Partial provisions have been made, with the remaining adjustments to be reflected in Rohas’ audited consolidated financial statements for the financial year ended 31 December 2024, subject to review by the Company’s auditors.

This announcement is dated 2 April 2025.