Introduction
The Board of Directors of Xin Hwa Holdings Berhad (“XHH”) is pleased to announce that the Company’s wholly-owned subsidiary, Xin Hwa Trading & Transport Sdn. Bhd. (“XHTT”) has on 3 August 2015 been awarded with two (2) contracts by the following parties:
(a) Contract by Malaysia Marine and Heavy Engineering Sdn. Bhd. (“MMHE”) for the transportation of spent copper slag from MMHE yard to the site of MMHE’s customer(s) (“Contract 1”); and
(b) Contract by Techno Indah Sdn. Bhd. (“TEIN”), a subsidiary of MMHE, for the transportation of Sludge from Kerteh, Terengganu and Sg. Udang, Melaka to TEIN (“Contract 2”).
The Sum of the Contracts
The total sum for Contract 1 is estimated to be RM1,200,000.00 while the total sum for Contract 2 is estimated at RM600,000.00.
Duration of the Contracts
The duration for both the Contracts 1 and 2 is for twelve (12) months, commencing from 3 August 2015 and 1 August 2015 respectively.
Financial effect of the Contracts
The Contracts will have no effect on the issued and paid-up capital of the Company but are expected to contribute positively towards the Group's earnings and net assets per share for the financial year ending 31 December 2015 and 2016.
The risk in relation to the Contracts
Risk factors affecting the Contracts include execution risks such as availability of experienced drivers, changes in prices of diesel, changes in political, economic and regulatory conditions. Throughout the years, XHH has established its track record and expertise to undertake awards of similar nature. Notwithstanding this, XHH shall ensure strict compliance to the safety and operational procedures in the execution of the Contracts requirements.
Directors’ and Substantial Shareholders’ Interest
None of the Directors or substantial shareholders of XHH or person connected with them have any interest, whether direct or indirect, in the aforesaid Contracts.
Directors’ Statement
The Board of Directors of XHH is of the opinion that the acceptance of the Contracts is in the best interest of XHH.
This announcement is dated 4 August 2015.