KPHealthTech awarded RM48.64 million contract to supply airbag for GeNose Covid-19 Kits

KPower Healthcare & Technologies Sdn. Bhd. (“KPHealthTech” or “the Company”), a wholly-owned subsidiary of KPower Berhad(formerly known as Kumpulan Powernet Berhad) (“KPower” or “the Group”) (“7130”) has accepted a contract yesterday to supply airbag/breathing bag for GeNose and GeNose Covid-19 test machine (“Airbag and GeNose Covid-19 kits”) from PT. Biotech Maju Sejahtera (“PT BMS”), a company incorporated in the Republic of Indonesia.

The contract is valued at a minimum of RM48.64 million (approximately US$12.03 million) in total. The contract is effective for a period of 12 months from the acceptance date and shall be governed under the laws of the Republic of Indonesia.

Under the contract, PT BMS will submit a written request for the supply of the Airbag and GeNose Covid-19 kits by way of purchase order which will then be delivered by KPHealthTech to PT BMS’ warehouse located in Bekasi, Republic of Indonesia. PT BMS will then be obligated to render payment within 40 days from the date of the Airbag and GeNose Covid-19 kits arrival at the warehouse.

“This contract further enhances our role in combatting the Covid-19 pandemic while growing our healthcare segment in one of the most populous countries in the world. Including this new contract, we have clinched over RM70 million worth of contracts in the healthcare segment under KPHealthTech in Indonesia to date. Together with our logistics arm, Chemtrax Sdn Bhd’s involvement via the transportation of nitrile butadiene rubber and synthetic latex which are key materials for rubber gloves, we believe that we can contribute to the global efforts against the Covid-19 pandemic. As a regional player, we are committed to support the fight and help build a more resilient and sustainable future,” said Mustakim Mat Nun, KPower’s Group Managing Director.

“We are very interested in the healthcare space and this letter of award further solidifies our efforts in building the right structure for our healthcare and technologies segment. With the acquisition of 70 percent in Granulab (M) Sdn. Bhd. (“Granulab”) early last month, we have built in-house technical knowledge, the license to manufacture and distribute medical devices in Malaysia as well as various international certifications.”

“Healthcare is a serious business with long-term prospects, as such we have been careful in strategising the right structure to support this business. Combined with our network and resources, we believe that our venture into this segment will be a worthwhile endeavour.”

The latest contract comes on the back of the Group’s maiden foray into the healthcare and technology business with the acquisition of Granulab and the RM24 million (approximately USD6 million) contract to distribute the PCR Reagent Kit for Covid-19 in Indonesia in January 2021. Granulab is 30 percent owned by Sirim Tech Venture Sdn Bhd (“STV”), a subsidiary of SIRIM Berhad.

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