KRONO bags RM23 million contract from world’s largest technology firms in China
(The definitions used in this announcement shall have the same meanings as that used in the announcement made on 2 November 2020 (“Announcement”) unless stated otherwise.)
We refer to the Announcement and the letter from Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 4 November 2020 with reference number IQL-04112020-00001 requesting for the following additional information on the Contract:-
1. The date on which the Contract was awarded.
Contract / PO date: 2 November 2020
2. The name of the party whom awarded the Contract.
The customer is one of the world’s largest technology firms by internet-derived revenue and is a market-leading web search, online community and artificial intelligence services provider in the People's Republic of China.
Due to the stringent legal confidentiality terms stipulated by the customer in the Contract – the Company is unable to currently publicly disclose the name of the contracting party in order to comply with the terms of the Contract and to protect the inherent economic interests of our shareholders.
3. The risks in relation to the Contract.
The Company does not expect any material risk arising from the Contract other than the normal operational risks associated with the Contract and within the industry.
4. The commencement and completion dates of the Contract.
Project commencement: Early Dec 2020
Project completion/deployment: Apr-Jun 2021
5. Whether the Contract is renewable. If so, for how many years.
Upon completion of the deployment and implementation, as part of the Contract terms – the Group will continue to provide a further 6-years maintenance support ending in around June 2027.
6. The value of the Contract.
Based on the existing CNY/MYR exchange rate, the Contract value is approximately MYR 23 million.
7. The financial effect of the Contract on the group.
This Contract is not expected to have a material effect on the gearing of Krono Group for the financial period ending 31 January 2021. However, the Contract is expected to contribute positively to the earnings of Krono Group for the financial period ending 31 January 2021.
This announcement is dated 5 November 2020.