1. INTRODUCTION

HEB wishes to announce that HSS Engineering Sdn. Bhd. (“HSSE”), a wholly owned subsidiary of HEB, has accepted a Letter Of Appointment (“LOA”) by M/s Ocean Lifespaces India Pvt. Ltd (“Client”) for Building Information Modelling (BIM) and Engineering Design Consultancy Services for the Proposed Development of Container Terminal (“Services”) at Tuna Tekra, India – Design And Build [Package 2] for Hindustan Gateway Container Terminal Kandla Private Limited (“Project”).

2. ESTIMATED PROJECT VALUE

Pursuant to the exclusive teaming arrangement between HSSE and HSS Integrated Sdn Bhd (“HSSI”), an associate company of HEB, HSSI and HSSE will be collaborating exclusively to execute and complete the Services. The scope of services to be undertaken by HSSE includes the provision of Preliminary Engineering Design, Detailed Engineering Design, supplementary Building Information Modelling (BIM) services, as well as all associated Post-Construction Deliverables.

* The professional fees for the Services are structured based on project milestones, as set out below:

(i) 30% of the Services Value, which has been duly received by HSSE for commencement of the Services; and

(ii) The balance 70% to be paid progressively upon the achievement of specified milestones, including approvals of design submissions and completion of post-construction documentation.

3. FINANCIAL EFFECTS

The Project is expected to contribute positively to the revenue, earnings and net assets of HEB Group for the financial years ending 31 December 2025 until 31 December 2027.  

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.

4. RISK FACTORS

The risk factors affecting the Services include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project. 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 due consideration of all relevant factors, is of the opinion that the acceptance of the LOA is in the best interest of the HEB Group. It represents a significant milestone for the Group and aligns with its overarching growth strategy, including geographical expansion into India while complementing our core expertise in the transportation sector.

This announcement is dated 23rd June 2025.