1. COMMISSIONING OF SOLAR PV SYSTEM PURSUANT TO POWER PURCHASE AGREEMENT
The Board of Directors of G Capital Berhad (“GCAP” or “the Company”) wishes to announce that Solarcity Malaysia Sdn Bhd (“Solarcity”), a 70.0%-owned subsidiary of the Company had on 15 November 2022, completed the installation and commence operation of a 2,380.32KWp solar photovoltaic electric power generation system (“Solar PV System”) for the Power Purchase Agreement (“PPA”) with Chin Well Fasteners Co Sdn. Bhd. [Company Registration No. 198801003395 (170752-X) ] (“Chin Well Fasteners”).
Pursuant to the PPA dated 9 May 2022, Solarcity shall install 2,380.32 KWp of Solar PV System to premises located on No. 1586, MK11 Lorong Perusahaan Utama 1, Bukit Tengah Industrial Estate, 14000 Bukit Mertajam, Penang, Malaysia (“the Plant”).
Both Solarcity and Chin Well Fasteners have accepted that 15 November 2022 to be the commercial operation date for the Plant.
2. INFORMATION ON CHIN WELL FASTENERS
Chin Well Fasteners is a private limited company, incorporated and domiciled in Malaysia and having its business address at No. 1586, MK11 Lorong Perusahaan Utama 1, Bukit Tengah Industrial Estate, 14000 Bukit Mertajam, Penang. Chin Well Fasteners principally involves in manufacturing and sale of screws, nuts, bolts and other fastening products.
Chin Well Fasteners is a wholly-owned subsidiary company of Chin Well Holdings Berhad, [Company Registration No. 199501042347 (371551-T)], a company listed on Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) with its registered address at 51-21-A, Menara BHL, Jalan Sultan Ahmad Shah, 10050 Georgetown, Penang, Malaysia. The group of companies are principally involved in manufacturing business of wide range fastening products and wire products.
3. FINANCIAL EFFECTS OF THE COMPLETION AND COMMISSIONING OF THE PLANT
The Plant will be contributing revenue and earnings to the Group over a span of Twenty-Five (25) years from 15 November 2022, the commercial operation date, in accordance to the agreed terms in the PPA.
Save for the above, the PPA is not expected to have any material impact on the earnings and net assets of the Group for the financial year ending 31 December 2022.
4. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the Directors or major shareholders of GCAP and persons connected with them has any direct or indirect interests, in the PPA and hence the commissioning of the Plant.
5. STATEMENT BY DIRECTORS
The Board of GCAP is of the opinion that the commissioning of the Plant pursuant to the PPA is in the best interest of the Group.
6. APPROVAL REQUIRED
The commissioning of the Plant pursuant to the PPA does not require the approval of shareholders of the Company, Bursa Malaysia Securities Berhad or Securities Commission Malaysia.
This announcement is dated 16 November 2022.