1. INTRODUCTION
Pursuant to Rule 9.03 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Flexidynamic (“Board”) wishes to announce that Flexidynamic Engineering Sdn Bhd (“FESB”), a wholly-owned subsidiary of Flexidynamic, has on 11 March 2024 accepted a letter of award (“LOA”) from Usaha Pammek Sdn Bhd (“Usaha Pammek”) to supply and install mechanical and electrical works for water treatment plant and intake at Loji Rawatan Air Chupak, Jajahan Gua Musang, Kelantan for a contract sum of RM12,433,944.93 (“Project”).

2. INFORMATION ON USAHA PAMMEK
Usaha Pammek, a private company limited by shares was incorporated in Malaysia on 24 January 1990 and it is principally involved in electrical and mechanical contractor and trading of electrical spare parts.

3. DURATION AND DETAILS OF THE PROJECT
The expected completion date of the Project shall be on 20 March 2025 or as otherwise mutually agreed between FESB and Usaha Pammek.
The Contract covers the supply of machineries, equipment and manpower to completion of the whole contract works in line with the requirements of Pengurusan Aset Air Berhad (“PAAB”), which includes but not limited to the following: -

(i) Mechanical Works and Electrical Works of the Intake Station; and
(ii) Mechanical Works, Electrical Works, SCADA Works, Instrumentation and Security System of the Water Treatment Plant

4. FINANCIAL EFFECTS OF THE PROJECT
The Project will not have any effect on the issued share capital and shareholdings structure of Flexidynamic. The Board is of the opinion that the Project is expected to contribute positively to Flexidynamic’s earnings and net assets per share from the financial year ending 31 December 2024 onwards until the completion of the Project.

5. SALIENT TERMS OF THE LOA
Claims and payments shall be made on a monthly basis, subject to the certification of completion of actual site progress work, as certified by Usaha Pammek or its representatives.

6. RISK FACTORS
The Company does not foresee any exceptional risk other than the normal operational risks. Nevertheless, the Company will take the necessary steps to mitigate such risks, if any, as and when they occur.

7. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS, CHIEF EXECUTIVE AND/OR PERSONS CONNECTED TO THEM
None of the Directors, major shareholders, chief executive and/or persons connected with a Director or major shareholder of the Company, have any interest, whether direct or indirect, in the Project.

8. STATEMENT BY THE BOARD
The Board, after considering all aspects of the Project, is of the opinion that the Project is within the ordinary course of business of Flexidynamic and is in the best interest of Flexidynamic.

This announcement is dated 11 March 2024.