1. INTRODUCTION

HEB wishes to announce that HSS Integrated Sdn. Bhd. (“HSSI”), an associate of HEB, has entered into a Contract Agreement (“Contract”) with Department of Transportation, Republic of Philippines (“the Client”), appointing OCG-HSSI JV (“JV”), a Joint Venture comprising Oriental Consultants Global Co., Ltd., Japan (Lead Partner) (“OCG”), and HSSI (JV Member) to provide consulting services for the Davao Public Transport Modernization Project – Contract Package No. 9 : General Consultant (“Project”).

2. ESTIMATED PROJECT VALUE

The JV will provide General Consultant services encompassing project and contract management, risk and quality control, interface and communication management, environmental and social aspects, economic benefit review, tender support, and anti-corruption compliance (“Services”). The JV will also oversee civil works through design reviews, construction monitoring, quality assurance, safety, and cost management. Additionally, it will manage diesel/EV bus procurement, including design review, testing, inspection, site preparation, and commissioning.

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 to execute and complete the Contract. 

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 2028.  

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 Project include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project 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 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 or Services.

7. DIRECTORS’ STATEMENT

The Board of Directors, after due consideration of all relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of the HEB Group. It represents a significant milestone for the Group and aligns with its overarching growth strategy, while complementing our core expertise in the transportation sector.

This announcement is dated 25th June 2025.