Gadang Holdings Berhad (“Gadang” or “Company”) is pleased to announce that its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd (“GESB”), has on 26 April 2024 accepted a Letter of Award dated 24 April 2024, for a contract from TM Technology Services Sdn. Bhd. (“TM”) for the design and development of Klang Valley Data Centre (“KVDC”) Block 2, Cyberjaya, Selangor Darul Eshan for a total contract sum of RM280,000,000 (Ringgit Malaysia: Two Hundred and Eighty Million only) (“the Contract”).

The Contract period is for a duration of two (2) years, commencing from 24 April 2024 until 23 April 2026.

The Contract is not expected to have an immediate material effect on the earnings per share, net assets per share, and gearing of Gadang for the financial year ending 2024. However, the Contract is expected to contribute positively to the earnings of Gadang and its subsidiaries (“the Group”) for the financial year ending 31 May 2025 onwards, during the duration of the Contract.

The risk factors affecting the Contract comprise mainly the normal construction risk of material price fluctuations, operational and execution risks, which the Group would take appropriate measures to address and mitigate the risks.

The Contract will not affect the share capital and substantial shareholders’ shareholding in Gadang as it does not involve any allotment or issuance of new shares by Gadang.

None of the directors and/or major shareholders of Gadang, or persons connected with them, has any interest, whether direct or indirect, in the Contract.

This announcement is dated 26 April 2024.