INTRODUCTION

The Board of Directors ("Board") of ASTEEL is pleased to announce that ASTEEL Synergy Sdn Bhd ("ASYN"), a wholly owned subsidiary of ASTEEL Resources Sdn Bhd, which in turn is  80.36% owned by ASTEEL, had on 21 May 2026 accepted a Letter of Award from Leong Siew Weng Metal Hub Sdn Bhd to ASYN for the Supply and Installation of External Facade, Roofing and Siphonic Drainage System at Vantage DTC KUL22 Project, Selangor Dahrul Ehsan ("the Project") with a subcontract sum of approximately RM13.7 million.

DETAILS OF THE PROJECT

The Project involves design, fabricate, supply and install exterior insulated metal wall panel, roofing and siphonic drainage system, in accordance with the terms and conditions of the Letter of Award, Tender Documents, Specifications, Drawings and Bills of Quantities with construction time of five (5) months from the commencement date.

BACKGROUND INFORMATION OF ASYN

ASYN was incorporated in Malaysia on 22 January 2020 under the Companies Act 2016.  As of the date of this announcement, the total issued share capital and number of issued shares of ASYN is RM1,000,000 and 1,000,000 ordinary shares respectively.

ASYN is principally engaged in manufacture and sale of metal roofing, coated steel products, trading of hardware and building materials, as well as supply and construct of steel truss and roof coverings. 

RATIONALE FOR THE PROJECT

The Project enables ASTEEL to enhance its project reference and provide a competitive advantage in future construction projects.

FINANCIAL EFFECTS OF THE PROJECT

The Project will not have any effect on the share capital and substantial shareholders' shareholding of ASTEEL and is not expected to have any material effect on the net assets per share and gearing of ASTEEL and its subsidiaries ("ASTEEL Group") for the financial year ending 31 December 2026. 

Barring unforeseen circumstances, the Project is expected to contribute positively to the earnings and earnings per share of the ASTEEL Group for the current financial year.

RISK FACTORS

Risk factors affecting the Project include execution risks such as availability of skilled manpower and building materials, availability of funding, weather conditions and/or political, economic and regulatory conditions.

INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM

None of the Directors and/or major shareholders of ASTEEL and/or persons connected with them in ASYN and ASTEEL have any interest, direct or indirect in the Project.

DIRECTORS' STATEMENT

The Board, having considered all aspects of the Project was of the opinion that the Project is in the best interest of ASYN and ASTEEL Group.

This announcement is dated 21 May 2026.