1.         INTRODUCTION

The Board of Directors of Cosmos is pleased to announced that Cosmos Instruments Sdn Bhd (“Cosmos Instruments”), a wholly-owned subsidiary of Cosmos, had on 2 May 2023 accepted the award of a framework agreement dated 14 April 2023 awarded by Pengurusan Air Selangor Sdn Bhd (“Air Selangor”) for the supply, deliver, commissioning and integration of the electromagnetic meters complete with data loggers for Air Selangor (“Framework Agreement”).

2.         INFORMATION ON AIR SELANGOR

Air Selangor, a company incorporated in Malaysia and having its registered address at Level 4, Air Selangor Head Office, Jalan Pantai Baharu, 59200 Kuala Lumpur and is in the business water supply system for purposes of providing treated water to consumers in the State of Selangor, Federal Territories of Kuala Lumpur and Putrajaya, and for purposes thereof carries out such duties and functions that encompasses the undertaking and management of all works, including civil and mechanical contracting works, and services for the supply and distribution of water to the consumers.

3.         SALIENT TERMS OF THE FRAMEWORK AGREEMENT

(a)      The contract period of the Framework Agreement is 24 months commencing from 19 April 2023 and shall expire on 18 April 2025 (“Year 1 and Year 2”), with an option to extend the contract period for a further term of 12 months (“Year 3”), subject to terms in the Framework Agreement (“Contract Period”).

(b)      The total estimated contract sum for the Framework Agreement is RM3.60 million for Year 1 and Year 2, and RM0.63 million for Year 3 (subject to extension).

4.         RISK FACTORS

There are no foreseeable significant risks other than operational risk associated with the Framework Agreement during the Contract Period.

5.         FINANCIAL EFFECTS

The Framework Agreement is expected to contribute positively towards the future earnings and net assets per share of Cosmos and its subsidiaries for the financial year ending 30 April 2024 and the financial years thereafter for the duration of the Framework Agreement and will not have any effect on the share capital and substantial shareholders’ shareholdings of the Company.

6.         INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM

None of the Directors or major shareholders of the Company or persons connected with them has any interest, whether direct or indirect in the Framework Agreement.

This announcement is dated 2 May 2023.