KUCHING: KKB Engineering Bhd (KKB) has secured two contracts, one of which is in Sabah, with a combined value of about RM17.75 million.
Subsidiary KKB Industries (Sabah) Sdn Bhd has received a purchase order from Leadshine Sdn Bhd for the supply and delivery of concrete-lined mild steel pipes.
The contract duration for Leadshine is about 10 months, KKB said in a filing with Bursa Malaysia.
The second contract KKB secured was awarded by Syarikat Sesco Bhd for the annual supply and delivery of steel products for about one year.
“The contracts are expected to contribute positively to the earnings and net assets of KKB group for the financial year ending 31 December 2019,” said the company.
On the risk factors affecting the two contracts, KKB said these include execution risks, such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions.
Last month, KKB group replenished its order book with three contracts with combined value of RM30.8 million.
The contract included one from Petronas Dagangan Bhd for the price agreement for new and refurbishment of LPG cylinders and supply and delivery of LPG compact valves.
Petronas Dagangan also awarded a contract to KKB’s associate company Edisi Optima Sdn Bhd for the price agreement for refurbishment of LPG cylinders for Petronas Dagangan: requalification and shot-blast repainting of LPG cylinders.
The third was a purchase order from Laras Jaya Engineering Sdn Bhd for the supply of mild steel concrete lined pipes for Sarawak water supply grid programme – stressed areas.
In February this year, KKB won two contracts worth RM110.87 million from Jabatan Bekalan Air Luar Bandar Sarawak under the Sarawak water grid project.
One of the contracts is for the design, construction, completion, testing and commissioning of the proposed Package SRI (southern region) while the second is for the proposed water supply from Kota Samarahan to Sebuyau – construction and completion of mild steel concrete lined pipeline and all associated works.
So far this year, KKB group has secured contracts worth a total value of about RM159.5 million.
Meanwhile, YKGI Holdings Bhd told Bursa that it has won a court case against Datapreneur Sdn Bhd over the supply, installation and commission of ERP system program.
YKGI said the Shah Alam High Court has dismissed Datapreneur’s claims against the company with cost of RM30,000 and that the court has allowed YKGI’s counterclaim against Datapreneur as follows:
* a refund of RM887,125 which has been paid by YKGI to Datapreneur;
* a reimbursement of RM45,580 being the cost incurred by YKGI for migrating of data from certain module under the software programme to YKGI’s existing system, and
* interest rate of 5 percent from the date of judgement (April 12, 2019) till realisation.
To recap, Datapreneur had filed a writ of summons and statement of claim dated April 13, 2017 against YKGI, which has entered into a license agreement with Datapreneur for the supply, installation and commission of ERP system program, which it (Datapreneur) had later terminated.
Datapreneur has claimed payment, together with additional costs, totalling about RM1.17 million after it claimed it had successfully supplied, installed and commissioned the ERP system.
But YKGI denied categorically that the ERP system was fully functional as Datapreneur had failed to delivered a functional system, and that Datapreneur’s termination of the licence agreement was unlawful and amounted to a repudiatory breach.
YKGI has defended the suit by Datapreneur and filed a counter-claim against the latter.
