The Board of Directors of Kelington Group Berhad ("KGB" or the "Company") wishes to refer to the Company's announcement dated 29 September 2026 in relation to the contract of approximately RM172 million secured by its wholly-owned subsidiary, Kelington Technologies Sdn. Bhd. ("KTSB"), from a manufacturing company at Sama Jaya Free Industrial Zone in Kuching, Sarawak ("Customer"), for the provision of engineering and early-stage infrastructure development for an advanced data storage manufacturing facility.
The Company wishes to further announce that KTSB has on 2 October 2026 been awarded a further contract from the same Customer in relation to the Customer's expansion project in Kuching, Sarawak ("Project"), with a contract value of approximately RM133 million ("New Award").
The New Award encompasses the major structural steel works forming part of the overall advanced data storage manufacturing facility project.
The New Award is expected to commence immediately and be completed in by April 2028.
As announced on 29 September 2026, the aggregate value of contracts and purchase orders secured by KTSB from the Customer for the Project stood at approximately RM283 million. With the New Award of approximately RM133 million, the aggregate value of awards secured by KTSB from the Customer for the Project now stands at approximately RM416 million.
The New Award is expected to contribute positively to the earnings and net assets of the KGB Group for the financial years ending 31 December 2026 and thereafter until the completion of the New Award.
KTSB expects to continue securing further contracts from the Customer covering various scopes of work in relation to the Project in Kuching, Sarawak. Any material development arising therefrom will be announced by the Company, as and when required.
The New Award is not expected to have any material effect on the share capital and substantial shareholders' shareholdings of KGB.
The Company does not foresee any exceptional risks other than the normal operational risks associated with the New Award.
None of the Directors, major shareholders of KGB and/or persons connected with them has any interest, direct or indirect, in the New Award.
The Board of Directors of KGB is of the opinion that the acceptance of the New Award is in the best interests of the KGB Group.
This announcement is dated 5 October 2026.