Reference is made to the Company’s announcement on 28 February 2018 on the Notice of Adjudication pursuant to Section 8 of Construction Industry Payment Adjudication Act 2012 served by Kuasatek (M) Sdn Bhd (“Kuasatek”) on HCM Engineering Sdn Bhd (“HCM”), a wholly owned subsidiary of the Company for the sum of RM 3,270,635.20 (“Claim”).

The Company wishes to announce that HCM had received Adjudication Decision whereby HCM shall pay to Kuasatek the sum of RM2,959,490.44 within 14 days from the date of the said Adjudication Decision.

The Claim was in relation to a dispute arising between HCM and Kuasatek pursuant to a Letter of Appointment for Mechanical and Electrical Works Packages (Contract No: HCM/P48-AFC/LA/C/16/V1(07) dated 15 March 2016, a work package under a project previously awarded to HCM known as “The Design And Built Contract For The Proposed Additional Of A 4 Storey Office Building With Basement Car Parking To The Existing Facilities On Lot No. 38627, Bukit Jalil, Mukim Petaling, Daerah Kuala Lumpur, Malaysia For Asian Football Confederation.” Kuasatek was the mechanical and electrical works sub-contractor for HCM.

HCM shall seek advice from its firm of solicitors on the Adjudication Decision and will make further announcements on any material development on this matter in due course.