1. Introduction

HEB is pleased to announce that on 30 May 2024, HSS Engineering Sdn Bhd (“HSSE”), a wholly owned subsidiary of HEB, has entered into a Contract Agreement with the Ministry of Public Works and Transport, Kingdom of Cambodia (“Client”) for HSSE to provide Consultant’s Services for the Assignment of Contract Engineer (Owner’s Engineer) for the Phnom Penh-Bavet Expressway Project (“Contract”).

2. Information on the Contract

HSSE’s scope of services under the Contract is to provide technical support and consultancy services to the Client on all technical aspects related to the design, construction, operation and maintenance of the Phnom Penh-Bavet Expressway Project (“the Project”).

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 2024 to 31 December 2028.

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

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

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 Project given the role of HSSE to provide technical and consultancy services for the Project 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 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 30 May 2024.