Reference is made to the Company’s announcements dated 28 December 2017, 9 July 2018, 3 May 2019 and 23 September 2019.

1. Introduction

HEB wishes to announce that on 6 July 2022, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, accepted a Letter of Appointment dated 4 July 2022 from China Communications Construction (ECRL) Sdn Bhd (“Client”) appointing HSSI to provide the additional supervising consultancy services for Section 9 from CHK22+038.5 to CHK75+523.429 (“Project”) (“Contract”).

The Project is approximately 53.5km long from Serendah to Port Klang consisting of tunnels, viaducts, at-grade sections and stations.

2. Information on the Contract

Estimated Contract Value         :           RM 16,587,000.00

Commencement                       :           6 July 2022    

Estimated Contract Duration     :          48 months

HSSI’s scope of services under the Contract shall include Construction Supervision.

Pursuant to the exclusive teaming arrangement between HSSI and HSS Engineering Sdn Bhd (“HSSE”), a wholly-owned subsidiary of HEB, HSSI and HSSE will be collaborating exclusively to execute and complete the Service. 

3. Financial Effects

The Contract is expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2022 to 31 December 2027.  

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

4. Risk Factors

The risk factors affecting the Contract include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the projects for which HSSI has been appointed to provide the Services. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

5. Approval Required

The Contract, being part of the ordinary course of business of HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. 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 Contract.

7. Directors’ Statement

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of HEB Group.

This announcement is dated 6 July 2022.