1. INTRODUCTION

HEB wishes to announce that on 8 January 2025, a consortium comprising HEB Energy Sdn. Bhd. (“HEBE”) (Registration No. 202001004301 (1360621-A)), a wholly-owned subsidiary of the Company, and Unique Fire Holdings Berhad (“Unique Fire”) (Registration No. 202101013602 (1413901-D)), (“Consortium”), accepted a Letter of Notification dated 23 December 2024 (“Letter of Notification”) from the Energy Commission (“EC”) to undertake the development of a Large Scale Solar Photovoltaic Power Plant (“LSS Plant”) of 95.00 MW in Hilir Perak, Perak (the “Project”).

The Consortium will be incorporating a special purpose vehicle (“SPV”) for implementation of the Project. HEBE will own 40% of the equity interest in the SPV and the remaining 60% equity interest will be held by Unique Fire.

2. DETAILS OF THE PROJECT

The Letter of Notification was issued in response to the Consortium’s bid submitted pursuant to the Request for Proposal (“RFP”) released by the EC on 1 April 2024. The RFP invited qualified entities to participate in the Government of Malaysia’s fifth Large Scale Solar (“LSS”) bidding exercise, known as "LSS Peralihan Tenaga SuRia" or "LSS PETRA." This round of bidding aimed to allocate a total solar generation quota of 2,000 MWAC, with individual packages ranging from 1 MWAC to 500 MWAC. The initiative aligns with the Government’s commitment to increasing Malaysia’s installed renewable energy capacity to 70% by 2050, reinforcing its low-carbon development strategy.

The consortium submitted its proposal under Package 3, which covers the 30 MWAC to 500 MWAC category, and was subsequently selected as a shortlisted bidder by the EC.

3. SALIENT TERMS OF THE LETTER OF NOTIFICATION

(a) The maximum export capacity of the LSS Plant shall not exceed 95.00 MW;

(b) The Solar Power Purchase Agreement (“SPPA”) will be entered into with Tenaga Nasional Berhad for a term of twenty-one (21) years; and

(c) The scheduled Commercial Operation Date (“COD”) of the Project is 11 October 2027.

4. INFORMATION ON UNIQUE FIRE HOLDINGS BERHAD

Unique Fire Holdings Berhad is a public listed company incorporated in Malaysia and having its registered address at Level 7, Menara Millennium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia. The principal activity of Unique Fire is the provision of a comprehensive range of fire safety products, including fire extinguishers, fire suppression systems, and safety equipment, along with installation and maintenance services.

5. FINANCIAL EFFECTS

The Project is expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2027 to 31 December 2048.

The Project will not have any impact on the share capital and/or shareholding structure of HEB.

The Project is expected to be funded via internally generated funds and/or external borrowings.

6. Risk Factors

The risk factors affecting the Project include, but are not limited to operational risks, such as unforeseen challenges related to the operation and maintenance of the LSS Plant, including equipment failures, system inefficiencies, or unexpected downtimes. Nonetheless, the Board of Directors is confident in HEBE’s ability to foresee, understand, and mitigate these risks effectively, ensuring the Project's success and sustainability.

7. APPROVAL REQUIRED

The acceptance of the Letter of Notification, being part of the ordinary business of HEB group, is not subject to the approval of shareholders of HEB or any relevant authorities.

8. DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/ or Major Shareholders of HEB and persons connected to them has any interest, direct or indirect, in the Project.

9. DIRECTORS’ STATEMENT

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Project is in the best interest of HEB Group and is a significant stepping stone for HEB group and it is in line with the Group’s overall growth strategy, embarking into the renewable energy sector.

This announcement is dated 8 January 2025.