The Company hereby announce that the total raw water intake fee incurred by the Company's subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn. Bhd. ("PBAPP") in the financial year ended 31 December 2025 was RM13,222,336. The raw water intake fee was calculated based on the annual actual water production volume in the year 2025 at the rate of 3 sen per cubic meter ("cu.m") imposed by the State Government of Penang ("Water Intake Fee").

The above Water Intake Fee is regarded as recurrent related party transaction ("RRPT") pursuant to Paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad ("Listing Requirements") by virtue of the substantial shareholdings held by the State Government of Penang through the State Secretary, Penang ("SSI") in the Companyand the relationship between State Government of Penang and SSI. SSI is a major shareholder of the Company, holding 55% of the total issued shares of the Company as at 31 December 2025. The RRPT involves the payment of annual Water Intake Fee by PBAPP to the State Government of Penang, of which SSI is deemed to have an interest.

Please refer to the attachment for announcement details.

The announcement is dated 3 March 2026.