Reference is made to the Company’s announcement dated 30 November 2023 (“Announcement”). Unless otherwise stated, the definitions set out in the Announcement shall apply herein.

The Board of Metronic would like to inform that the funding for the projects are slow due to the following reasons:-

a) For the solar projects, the progress are slow due to several issues faced by the Company among others the impending resolution of the revision of contract terms mainly related to the tariff rate resulted from the recent increase in construction cost particularly the price of imported equipment.  In addition to that the delay also due to constraint in its resources resulted from the resignation of engineer in-charges of the project.  However, the Company has worked closely with the appointed consultant and contractor to complete the project. The Company is also still in the process to renegotiate the contract terms for the remaining identified projects with the estimated project cost of RM12.4 million.

b) For the engineering projects, the Group is also unable to secure high value contracts pursued previously due to a very competitive bidding and also the delay in the awarding of the identified projects by the project owners.

As stated in the previous announcement, the balance unutilised proceeds were placed as fixed deposit with Komani. The fixed deposits have an effective interest rate ranging from 1.95% to 3.10% and have maturity of 3 to 6 months.

This announcement is dated 4 December 2023.