Reference is made to the announcement by CPE Technology Berhad ("CPE" or "the Company") dated 14 July 2026 ("Announcement") in respect of the aforesaid matter. Unless otherwise defined, the abbreviations used herein shall have the same meaning as those mentioned in the Announcement.
The Board of Directors of CPE wishes to provide the following additional information raised by Bursa Malaysia Securities Berhad in relation to the Establishment of Joint Venture:
1. The market in which the materials and/or products utilizing passivation treatment technology will be marketed.
The products will be marketed primarily to the semiconductor industry, mainly the precision components for the integrated gas supply systems. These components are made by ultra-high purity ("UHP") steel materials.
2. Expected commencement date of the manufacturing and sale of the materials and/or products.
The JV Company is expected to be incorporated within 60 days from 14 July 2026. Thereafter, the surface treatment production line will be installed and tested. The installation and testing of the surface treatment production line are expected to be completed within 12 months from the incorporation of the JV Company. Accordingly, the commencement of manufacturing activities and the sale of the materials and/or products are expected in the third quarter of the financial year ending 2027 (Q3 FY2027).
3. The scope and responsibility of CPE in the JV Company.
CPE's scope and responsibilities in the JV Company include the preparation of site, the establishment of the surface treatment production line, the manufacturing of products through the surface treatment technology, the marketing of products manufactured using the surface treatment technology, and the development and maintenance of customer relationships. Upon commencement of operations, the JV Company will provide surface treatment services exclusively to the CPE and its group of subsidiaries (collectively known as "CPE Group"). In addition, the JV Company will facilitate the transfer of technical knowledge, operational expertise and relevant skills to the CPE Group.
4. Whether the matters set out in Sections 3.4 and 3.5 of the announcement are also applicable to CPE.
Sections 3.4 and 3.5 of the Announcement are not applicable to CPE, save and except that the shareholding proportions of 50.5% for CPE and 49.5% for Kanekita shall remain applicable.
CPE's initial capital injection is expected to be approximately RM2 million to RM3 million, which will be utilized for the JV Company's operational requirements, including site preparation and the establishment of the surface treatment production line.
This announcement is dated 16 July 2026.