1. INTRODUCTION 

The Board of Directors of KTI wishes to announce that its wholly-owned subsidiary, K.T.I. Sdn Bhd had on 18 July 2025 accepted the Letter of Acceptance of Tender (“Letter”) from Lembaga Pembangunan Industri Pembinaan Malaysia (“CIDB Malaysia”) for the construction of the Akademi Binaan Malaysia’s Wilayah Sabah (ABM) campus located at Lot CL.025418722, Kg. Beringgis, Daerah Papar, Sabah (“Contract”). 

CIDB Malaysia is a statutory body under the Ministry of Works. It was established under the Construction Industry Development Act (Act 520) to develop the capacity and capability of the construction industry through enhancement of quality and productivity by placing great emphasis on professionalism, innovation and knowledge in the endeavour to improve the quality of life.

2. SALIENT TERMS 

The total estimated value of the Contract is RM130,599,329.92.  

The tenure of the Contract is 24 months from 1 July 2025 until 30 June 2027. 

3. RISK FACTORS

The risk factors affecting the Contract includes changes in economic, political and regulatory environment and operational risks such as completion risk and shortage of materials and skilled labour, which the Group would take appropriate measures to minimise.

4. FINANCIAL EFFECT

The Contract will further increase and enhance the existing order book of the Group.

The Contract will have no effect on the issued share capital and the shareholding of the substantial shareholders of the Company but it is expected to contribute positively to the earnings and net assets per share of the Group for the financial years ending 2025 to 2027.

5. APPROVALS REQUIRED

The acceptance of the Letter is not subject to the approvals of the shareholders of KTI and/or any relevant regulatory authorities.

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

None of the Directors and/or major shareholders of KTI and/or person connected with them have any interest, whether direct or indirect, in the Contract.

7. DIRECTORS’ STATEMENT 

The Board of Directors of the Company, having considered all aspect of the Contract, is of the opinion that it is in the best interest of the Company and its shareholders.

This announcement is dated 18 July 2025.