INTRODUCTION

The Board of Directors of Cosmos is pleased to announce that its wholly-owned subsidiary, Cosmos Instruments Sdn Bhd, had on 28 July 2026 accepted a contract dated 22 July 2026 awarded by Pengurusan Air Selangor Sdn Bhd ("Air Selangor") for the outsourcing program for replacement of mechanical water meters to electromagnetic (EM) meters ("Contract").

The Contract has a total value of RM4.77 million and is for a period of 15 months, commencing from the date stipulated by Air Selangor and is expected to be completed by October 2027 ("Contract Period").

This Contract adopts a performance-based profit-sharing mechanism whereby the profit sharing shall be based on a gain sharing mechanism for each mechanical water meter replaced with electromagnetic meter.

RISK FACTORS

There are no foreseeable significant risks other than normal operational risk associated with the Contract during the Contract Period. Nevertheless, the Group will take the necessary steps to mitigate the risks as and when they occur.

FINANCIAL EFFECTS

The Contract is expected to contribute positively towards the future earnings and net assets of the Group for financial year ending 30 April 2027 and throughout the duration of the Contract. The Contract is not expected to have any effect on the issued share capital and substantial shareholders' shareholdings of the Company.

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

None of the Directors or major shareholders of the Company or persons connected with them has any interest, whether direct or indirect, in the Contract.

APPROVAL REQUIRED

The acceptance of the Contract is undertaken in the ordinary course of business of the Group and is not subject to the approval of the shareholders of Cosmos or any relevant regulatory authorities.

STATEMENT BY DIRECTORS

The Board of Directors of Cosmos, having considered all aspects of the Contract, is of the opinion that the Contract is in the best interest of the Company.