Introduction

The Board of Directors of Advancecon is pleased to announce that Advancecon Infra Sdn. Bhd. (“AISB”), a wholly-owned subsidiary of the Company had on 10 November 2023 accepted the Letter of Acceptance (“LOA”) from Sime Darby Property (Pagoh) Sdn. Bhd. for the appointment of AISB as the contractor for the proposed construction and completion of earthworks and auxiliary works for Plot B1-B7 at Industrial Park for development of Bandar Universiti Pagoh, Mukim Jorak, Daerah Muar, Johor Darul Takzim for the total contract sum of RM22,778,492.20 (“the Contract”). The Contract period shall be commencing from 23 November 2023 until 22 May 2025.

AISB is principally involved in the business of providing earthworks and civil engineering services and sales of construction materials.

Risk Factors

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

Financial Effects

Barring any unforeseen circumstances, the Contract is expected to contribute positively towards the future earnings of Advancecon Group for the duration of the Contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of Advancecon Group.

The Group intends to fund the Contract via internally generated funds and/ or external borrowings.

Directors' and Substantial Shareholders' Interest

None of the Directors and/or substantial shareholders and/or any person connected to them has any interest, either direct or indirect in the Contract.

Directors’ Statement

The Board of Directors, after due consideration, is of the opinion that the Contract is in the best interest of the Group. The Contract is being entered into in the ordinary course of business and is not subject to the approval of shareholders of the Company.

This announcement is dated 10 November 2023.