Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), has on 3 April 2017 been appointed by MyHSR Corporation Sdn. Bhd. as the Reference Design Consultant 05 (RDC05) for the Kuala Lumpur – Singapore High Speed Rail (“Contract”).

Information on the Contract

The Contract is for a period of 12 months with a value of RM17,888,181.85 (exclusive of goods and services tax) and is expected to commence within the second quarter of 2017. Pursuant to the exclusive teaming arrangement between HSSI and HEB’s wholly-owned subsidiary, HSS Engineering Sdn Bhd ("HSSE"), HSSI and HSSE will be collaborating exclusively to execute and complete the Contract.

Financial Effects

The Contract is expected to contribute positively to the revenue, earnings and net assets of HEB Group for the financial year ending 2017. 

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

Directors’ and major shareholders’ interests

None of the Directors and/ or Major Shareholders of HEB and persons connected to the Directors and/ or Major Shareholders of HEB have any interest, direct or indirect, in the Contract.

Risk Factors

The risk factors affecting the Contract include, but are not limited to, execution risks, such as the availability of skilled manpower and progress of the project. HEB Group has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believe that HEB Group is able to mitigate the aforesaid risk factors.

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 3 April 2017.