Reference is made to the news article entitled “Sunview swings from black to red” which was published by The Edge Malaysia on 2 February 2026 in particular referring to the following paragraphs:

“It attributed the discrepancy to contract costs that were capitalised in prior periods for projects that were “pending award” but ultimately failed to materialise. Once it became clear these contracts would not proceed, the costs were deemed unrecoverable and expensed in full.”

“While the accounting explanation may be technically defensible, it raises uncomfortable questions. Why were such material costs capitalised before contracts were secured? And why did it take until the audit stage for management to conclude that the projects were unlikely to proceed? At best, this points to weak project assessment and overly aggressive accounting judgement; at worst, it suggests poor internal control over financial reporting.”

The Board of Directors (“Board”) of Sunview wishes to clarify that there was no discrepancy in the contract cost position, as it comprises two (2) different components.

The first component amounting to RM2.373 million was expensed for project that was ultimately not awarded. The Company adopted a prudent approach in expensing it off given the absence of certainty of award over a period of more than one year.

The second component, being an impairment of RM75.3 million recognised in financial period ended 30 September 2025 (“FY2025”) relates to works completed under the LSS4 project for PKNP Reneuco Suria Sdn. Bhd. (“PKNP Reneuco”). As the impairment reflects sunk costs incurred over the past two years, it does not impact Sunview and its subsidiaries, collectively (“Group”)’s current cash flow position. These costs were previously capitalised as contract assets as the underlying works had been performed, with progressive billings raised and payments received from the customer up to the point when they were classified under Practice Note 17 (PN17).

Accordingly, these were driven by prudence in accounting measures and subsequent financial conditions of PKNP Reneuco, and were not attributable to projects being unsecured, deficiencies in project execution or weak project assessments.

For information purposes, Sunview was initially awarded an engineering, procurement, construction and commissioning (“EPCC”) Sub-Contract by Reneuco Engineering Sdn. Bhd. on 13 June 2022, for the development of a solar photovoltaic plant (“Project”). Subsequently, on 18 July 2023, the full EPCC contract for Project amounted to RM179.5 million, was novated to Fabulous Sunview Sdn. Bhd., a wholly-owned subsidiary of the Company. The Group successfully executed the EPCC works and achieved progressive completion of the Project as at April 2025. However, certification for progress claims of the said EPCC works has yet to be completed.

On 8 February 2024, Reneuco Berhad, which holds a 95% equity interest in PKNP Reneuco, was classified as an affected listed issuer under PN17. In addition, the financier of PKNP Reneuco has exercised its rights following PKNP Reneuco’s failure to make payments. Consequently, Receivers and Managers were appointed over the whole of the undertaking and assets of PKNP Reneuco.

In light of these circumstances, Sunview has strategically opted to submit an offer to participate in the tender sale by the Receivers and Managers of PKNP Reneuco to acquire the assets of PKNP Reneuco. The said acquisition facilitates the Group to assume full ownership of the solar assets (which was partially completed), necessary control to complete the Project, and reach commercial operations stage. Sunview views this as a strategic initiative that will expand the Group’s solar asset portfolio and generate stable recurring income. The Group will leverage existing expertise and operational experience to maximise project efficiency and returns and strengthen the Group’s long-term sustainability and earnings visibility, reinforcing its market position in the renewable energy sector.

We regret for any confusion that may have arisen from these articles.

This announcement is dated 3 February 2026.