1. INTRODUCTION
The Board of Directors of Powerwell ("Board") wishes to announce that Powerwell International Sdn. Bhd. ("PISB"), a wholly-owned subsidiary of the Company, had on 29 September 2026 entered into a Strategic Collaboration Agreement ("Agreement") with Socomec Innovative Solution (Malaysia) Sdn. Bhd. ("Socomec") to collaborate on opportunities within the large data centre and hyperscale segment in Malaysia, primarily involving PISB acting as the system integrator for power train units ("PTU") incorporating uninterruptible power supply ("UPS") systems supplied by Socomec ("Collaboration").
PISB and Socomec are collectively referred to as the "Parties" and individually as a "Party".
2. INFORMATION ON THE PARTIES
2.1 PISB
PISB [Registration No.: 200101018483 (554240-T)] is a wholly-owned subsidiary of the Company, with its business address at No. 4, Jalan Anggerik Mokara 31/44, Kota Kemuning, Seksyen 31, 40460 Shah Alam, Selangor Darul Ehsan. PISB is principally engaged in the design, manufacturing and integration of electrical power distribution systems.
2.2 Socomec
Socomec [Registration No.: 202401045608 (1591454-A)] was incorporated in Malaysia on 29 October 2024 as a private limited company under the Companies Act 2016, with its registered address at FF26, Pusat Perniagaan Amber, Persiaran Oleander, Gamuda Kemuning 25.7, 42500 Telok Panglima Garang, Selangor. Socomec is engaged in the business of supplying UPS systems and related solutions.
As at the date of this announcement, the issued share capital of Socomec is RM1,000,000 comprising 1,000,000 ordinary shares and the sole shareholder is Socomec Holding Asia Pte Ltd. The directors of Socomec are:
- Cyril, Jean-Francois, Marie Mouterde;
- Chee Choon Sing; and
- Wai Tai Yeap.
3. SALIENT TERMS OF THE AGREEMENT
3.1 Nature of the Collaboration
The Parties agree to collaborate on a non-exclusive and project-by-project basis in relation to opportunities within the large data centre and hyperscale segment in Malaysia. The Agreement establishes a framework for collaboration between the Parties. Any opportunity arising from the collaboration will be considered by each Party based on its own business needs and priorities. The Agreement does not commit either Party to any specific project, contract value or purchase volume.
3.2 Roles of the Parties
a. Socomec shall act as the provider and supplier of UPS systems and related equipment, including the provision of product and technical support in respect of its scope.
b. PISB shall be responsible for the complete PTU scope and act as the system integrator, including the design, manufacture, procurement, assembly, build, integration, supply, delivery, installation, testing and commissioning of the PTU.
3.3 Other Terms
The Agreement contains customary provisions on confidentiality, non-circumvention and the protection of each Party's intellectual property.
3.4 Tenure and Termination
The Agreement shall be for a period of one (1) year commencing from 29 September 2026 and ending on 28 September 2027. The Agreement shall lapse upon its expiry unless the Parties mutually agree in writing to extend it. The Agreement may be terminated by either Party upon thirty (30) days' prior written notice to the other Party or if the other Party commits a material breach of this Agreement, becomes insolvent, or ceases or threatens to cease carrying on its business.
4. RATIONALE AND PROSPECTS
The Collaboration allows PISB to combine its capabilities as a power distribution system manufacturer and integrator with Socomec's UPS products and technical expertise. This enables the Parties to offer a more complete power solution to customers in the large data centre and hyperscale segment.
The Board believes the Collaboration will strengthen the Group's competitiveness in pursuing data centre opportunities in Malaysia, a segment that is a growing focus of the Group's business.
5. FINANCIAL EFFECTS
The Agreement does not involve any capital outlay by the Group and it is not expected to have any material effect on the share capital, substantial shareholders' shareholdings, net assets per share, earnings per share and gearing of the Company for the financial year ending 31 March 2027.
6. RISK FACTORS
Save for the normal operational and business risks, the Board is not aware of any other risk factors which may arise from the Agreement.
7. APPROVALS REQUIRED
The Agreement is not subject to the approval of the shareholders of the Company or any relevant regulatory authorities.
8. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM
None of the Directors and/or major shareholders of the Company and/or persons connected with them has any interest, direct or indirect, in the Agreement.
9. STATEMENT BY THE BOARD
The Board, having considered all aspects of the Agreement, is of the opinion that the Agreement is in the best interest of the Company.
10. DOCUMENTS AVAILABLE FOR INSPECTION
A copy of the Agreement is available for inspection at the registered office of the Company at Unit 30-1, Level 30, Tower A, Vertical Business Suite Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, during normal business hours from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement.
This announcement is dated 29 September 2026.