We refer to Bursa Securities' query letter dated 7 August 2026 and to the Company's announcement dated 6 August 2026, and reply as follows:-

1. Key milestones in the preparation of the Annual Report 2025

2. Current status of the audit process

The audit of the Group for the financial period ended 31 December 2025 is at an advanced stage. The statutory auditors have confirmed to the Company, by their letter dated 10 August 2026, the status of the audit and the matters that remain to be completed before their opinion can be finalised. Those matters are set out at item 3 below.

A principal cause of the delay has been the audit of the subsidiary Tenzin Heavy Machinery (M) Sdn Bhd ("Tenzin"). Tenzin has a financial year ending 31 January and is audited by a separate firm of auditors, Messrs Khoo Wong & Chan (Audit Firm No. AF0736). The Company's own statutory auditors are Messrs SBY Partners PLT. The Company's statutory auditors, not being the auditors of Tenzin, required Tenzin's audited financial statements to have been issued and signed by its auditors before the figures could be treated as final for the purposes of the Group consolidation. Those financial statements were signed on 6 July 2026, issued to the Company on 30 July 2026 and provided to the Company's statutory auditors on the same day. A number of the matters at item 3 below continue to concern Tenzin.

The Company holds 600,000 ordinary shares in Tenzin, representing 30% of its 2,000,000 issued ordinary shares. Tenzin is nonetheless accounted for as a subsidiary and consolidated in the Group's financial statements, control for that purpose being determined under MFRS 10 Consolidated Financial Statements by the power to direct the relevant activities of the entity rather than by the proportion of shares held.

Tenzin does not constitute a major subsidiary of the Company, which does not contribute 70% or more of the profit before tax or total assets employed of the Company on a consolidated basis.

3. Key outstanding matters hindering completion

The Company's external auditors, SBY Partners PLT, confirmed on 10 August 2026 that the following matters remain outstanding for the finalisation of the audit of Handal Energy Berhad for the financial period ended 31 December 2025:-

(a) completion of the audit work on the subsidiary Tenzin Heavy Machinery (M) Sdn Bhd, comprising the auditors' comments on its cash flow projections, verification procedures on its inventories, and the assessment of expected credit losses on its receivables;

(b) finalisation of the cash flow projections of the Group;

(c) completion of the assessment of contingent liabilities in respect of material litigation, under MFRS 137 Provisions, Contingent Liabilities and Contingent Assets, together with receipt of the outstanding confirmation from the Company's solicitors;

(d) completion of the impairment assessment in respect of certain plant and equipment held by subsidiaries of the Company;

(e) finalisation of certain accounting treatments, comprising the deferred tax liability arising on the revaluation reserves and the reconciliation of intercompany balances; and

(f) the remaining steps in the audit closure process, comprising the auditors' review of the working papers prepared by the Company's consultant, the presentation of the Audit Completion Memorandum and the approval of the financial statements by the Boa

The consultant referred to above and in item 1 is Ms Phoo Siew Mun, who was engaged by the Company as Finance Consultant on 16 August 2025. Her scope of work is to provide professional accounting advice, support and consultation to ensure that the Group's accounting matters are properly managed and carried out in accordance with applicable accounting standards, statutory requirements and the Group's internal policies and procedures. In relation to the financial period ended 31 December 2025 she has assisted with the review process and with the preparation and finalisation of the audited financial statements, and on 6 August 2026 she circulated the drafted audited financial statements and the Group consolidation working file.

The external auditors have tentatively targeted the approval of the financial statements by the Board by 30 September 2026, provided that they receive the full cooperation of Management in resolving the matters set out above.

4. Specific target date for the issuance of the Annual Report 2025

The External Auditors have confirmed in writing on 10 August 2026 that, subject to receiving the full cooperation of management in resolving the matters set out at item 3 above, they expect the financial statements to be approved by the Board tentatively by 30 September 2026.

Accordingly, the Company's specific target date for the issuance of the Annual Report 2025, together with the audited financial statements for the financial period ended 31 December 2025, is on or before 15 October 2026. In setting that date the Board has allowed a period of approximately two weeks after the date by which the statutory auditors expect the financial statements to be approved, for the administrative work required to finalise and issue the Annual Report and to allow a margin for contingencies. The target date falls within the period of six months from 30 April 2026 referred to in the Company's announcement of 6 August 2026 and in paragraph 9.28(6) of the Main Market Listing Requirements.

The Company will announce any change to this target date immediately.

This announcement is dated 11 August 2026.