Reference is made to the Company’s announcement dated 26 February 2021 and reply to query dated 2 March 2021 in respect of the extraction and supply agreement signed between Malayan Energistik Solutions Sdn Bhd (“MES”) and V-Development Group (“V-Development”), a subsidiary group of Vinvest Capital Holdings Berhad.

The Company wished to announce that V-Development had deemed the above supply agreement as terminated on 4 November 2021, due to non-fulfilments of certain contractual obligations by MES.  

The supply agreement with MES is similar to regular trading purchase orders (POs) and thereby has no material impact on our operations and/or our supply contracts, namely to Zhen Hua Engineering Company Ltd - China Communications Construction Company Ltd - CCCC Dredging (Group) Company Ltds (“ZHEC-CCCC-CDC), a joint venture contractor appointed to undertake the main reclamation woks for the Hong Kong International Airport Three Runway System Project. Furthermore, the supply agreement with MES is easily replaceable/interchangeable with supply agreement from other marine sand suppliers.  

This announcement is dated 19 December 2022.