Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd (“HSSI”) has on 11 July 2019 accepted a Letter of Appointment dated 8 July 2019 from China Communications Construction (ECRL) Sdn Bhd appointing HSSI to provide Consultancy Services for the New Railway Scheme and Scheme Design Study for the East Coast Rail Link (“ECRL”) (including other technical advisory services related to the Railway Scheme) (“Contract”). 

Information on the Contract

The Contract, with an estimated contract value of RM4,950,000, commenced from the second quarter of  2019 and is expected to complete within the third quarter of 2020.

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 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 years ending 31 December 2019 and 31 December 2020.  

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

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.

Risk Factors

The risk factors affecting the Contract include, but not limited to, execution risks such as dependency on the progress of the ECRL, in particular the realignment, given that the role pursuant to the Contract is for the preparation and completion of the Scheme Design for the realignment of 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’ and/or major shareholders’ interests

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

The Company will make further announcements in relation to any material developments concerning the Contract.

This announcement is dated 11 July 2019.