Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), has on 9 August 2017 accepted a Letter of Appointment dated 27 July 2017 from a subsidiary of China Communications Construction Company (M) Sdn Bhd group appointing HSSI as the Design Consultant to provide Preliminary Design Consultancy Services for Infrastructure Works for the East Coast Rail Link (“ECRL”) from KM0 to KM220 of the ECRL (“Contract”).

Information on the Contract

The Contract, with a value of RM16,500,000.00, has commenced from the date of the Letter of Appointment and is expected to complete within the final 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 financial year ending 31 December 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/or persons connected to them have any interest, direct or indirect, in the Contract.

Risk Factors

The risk factors affecting the Contract include, but is not limited to, execution risks such as dependency on the progress of the ECRL given the role pursuant to the Contract is for the preparation and completion of the infrastructure works for the ECRL. HEB Group has, throughout the years, established its track record and expertise to undertake such projects. As such, the Board of Directors believes 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 9 August 2017.