Reference is made to the announcement dated 28 July 2026 in relation to the Acceptance of Contract Amounting to RM4.77 million. The Company is pleased to furnish the following additional information in respct of the said Contract:
1. Terms of the gain sharing mechanism including the breakdown of each party's proportion of the gain.
This Contract adopts a performance-based profit-sharing mechanism whereby the profit sharing shall be based on a gain sharing mechanism for each mechanical water meter replaced with electromagnetic meter. The gain sharing shall be derived from the incremental billed consumption (m3) resulting from the replacement of mechanical water meters with electromagnetic (EM) meters. Only actual billed consumption gains, as recorded and verified by Air Selangor, shall be eligible for gain sharing.
Upon verification of eligible billed consumption gains, the profit sharing shall be applied in accordance with the profit-sharing ratio stipulated in the Contract. Cosmos shall be entitled to sixty-two percent (62%) of the eligible billed consumption gains, while Air Selangor shall be entitled to the remaining thirty-eight percent (38%).
2. Duration of the profit sharing/ gain sharing including commencement and expiry date.
The duration of the profit-sharing period shall be nine (9) months following the successful installation and commissioning period, which shall commence on 27 January 2027 and expire on 26 October 2027.