The Board of Directors of SunCon announce that Sunway Construction Sdn Bhd, had on 1 July 2023 accepted the Letter of Award dated 28 June 2023 issued by Sunway REIT Management Sdn Bhd as attorney for RHB Trustees Berhad, in respect of the Main Building Works for the refurbishment of the existing 4-storey shopping complex and 1-storey cultural/commercial centre with 1-storey basement under Lot Nos. 5497, 5498 and 5499, Pinang. The salient terms of the Letter of Award, are inter alia as follows: The awarded contract sum for the Project is RMB 253 million which shall be included the cost of all preliminaries, transportation, load and unloading, wastages, taxes, duties, tariff, freight, insurances, warehouse storage, profits and everything else necessary for the performance and conduct of operations required for the execution and completion of the Project.

The Project is for a period of 24 months from the date of commencement on 1 July 2023, and is expected to be completed by 30 June 2025. RISK FACTOR: The Project is subject to the normal construction risk of material price fluctuations. However, with the past experience and expertise of SCSB in construction projects, these risks could be mitigated.

FINANCIAL EFFECTS: The Project will not have any effect on the share capital and substantial shareholders' shareholding of SunCon as it does not involve any allotment or issuance of new shares by SunCon. The Project is not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon for the financial year ending 31 December 2023. However, barring any unforeseen circumstances, the Project is expected to contribute positively to the earnings of SunCon Group for the financial year ending 31 December 2023 onwards.