1. Introduction

HEB wishes to announce that late in the evening on 4th August 2022, a joint venture ("JV”) of HSS Integrated Sdn Bhd (“HSSI”) and HSS Engineering Sdn Bhd (“HSSE”) has accepted a Letter of Appointment from MRT Lingkaran Sdn Bhd (“Employer”) to provide Project Management Consultancy Services for the “Projek Mass Rapid Transit Laluan 3: Laluan Lingkaran” (MRT3) (“Project”).

HSSI is an associate company of HEB while HSSE is a wholly owned subsidiary of HEB.

2. Information on the Project

The JV’s role is to manage the delivery of a fully designed, procured, constructed and integrated Project to the Employer.

3. 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 2022 to 31 December 2033.

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

4. Risk Factors

The risk factors affecting the Project include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the said Project given the role of the JV pursuant to the Project is to deliver a fully designed, procured, constructed and integrated Project to the Employer as described above. 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 Project, 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 Project.

7. 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.

This announcement is dated 5 August 2022.