AWC Berhad ("AWC" or "the Group"), a leading engineering services firm listed on the Main Board of Bursa Malaysia Securities Berhad, has announced a strategic Memorandum of Understanding (MOU) with Beijing Energy Envision Linking Smart (Beijing) Technology Co., Ltd. Southwest Branch ("BEELS") and Zhizi Automotive Technology Co., Ltd. ("ZATC"). The MOU, signed today, marks the start of a significant collaboration aimed at exploring opportunities in the importation, production, and sales of new energy heavy trucks and construction machinery in Malaysia.

About the Partners:

• BEELS: A joint-stock company formed by Beijing Energy Group and Envision Technology Group, BEELS specialises in promoting and applying new energy heavy trucks in China. The Southwest branch will manage domestic used car procurement, transportation, sales, and service provider management within the collaboration.
• ZATC: A subsidiary of Shaanxi Automobile Group, ZATC focuses on designing, producing, and selling heavy-duty trucks in China. It will provide technical support, oversee domestic modification and installation, and manage construction activities in Malaysia and other Southeast Asian countries as part of the collaboration.

MOU Rationale: This MOU signifies a major step towards tapping into the potential of new energy trucks in the Malaysian market. BEELS and ZATC intend to invest in Malaysia to establish it as a distribution hub and development centre for new energy trucks in Southeast Asia. This initiative aligns with AWC's strategy to expand its Environmental, Social, and Governance (ESG) activities and supports Malaysia's net-zero emissions target by 2050, as well as a 45% reduction in CO2 intensity against GDP by 2030.

New Contract Award: In addition to the strategic MOU, AWC Berhad's wholly-owned subsidiary, Qudotech Sdn. Bhd. ("Qudotech"), has received a Letter of Acceptance (LOA) from CBTECH (M) Sdn. Bhd. ("CBTECH"). The LOA covers the supply, delivery, installation, testing, commissioning, service, and maintenance of cold water and sanitary plumbing systems, rainwater downpipe services, and the installation of sanitary fittings and accessories for a multi-block serviced apartment development in Kuala Lumpur. The Sub-Contract Works will start on 18 June 2024 and are expected to be completed by 31 August 2027, with a total contract value of RM10.2 million.

Statement from AWC Group CEO/President Dato' Ahmad Kabeer: "AWC is already a leader in advancing ESG-related activities with our STREAM Automated Waste Collection System (AWCS). This new collaboration with BEELS and ZATC brings a fresh dimension to our Group and places us at the forefront of a burgeoning market. We anticipate a similar transformation in the commercial vehicle space as seen with passenger vehicles. We are excited to drive forward the adoption of new energy trucks and construction machinery in Malaysia."

"Additionally, the new contract awarded to Qudotech underscores our capabilities and reinforces our position as a premier plumbing contractor in Malaysia. We look forward to executing this project in the months ahead," he added.