Further to the collaboration agreement dated 6 October 2022 signed between Genetec Technology Berhad and Citaglobal Berhad to jointly establish a broad-based multi-angle and exclusive collaboration and strategic cooperation arrangement in connection with the development of battery energy storage system (BESS), the board of directors of Genetec announced that the Parties have formalized the collaboration via a new joint venture company named "Citaglobal Genetec BESS Sdn Bhd" ("CG BESS") ("Joint Venture"). The Parties mutually agreed to adopt the Terms of Reference of CG BESS to govern the roles and responsibilities of the Parties in respect of the Joint Venture and not to enter into a definitive agreement or shareholders' agreement pursuant to the Collaboration Agreement. CG BESS was incorporated on 19 January 2023 in Malaysia as a private limited company under the Companies Act 2016.

CG BESS has an initial issued share capital of MYR 1,000 comprising 1,000 ordinary shares ("Shares") during incorporation, equally held by Genetec and Citaglobal. The Parties intend to increase the share capital of CG BESS to MYR 500,000 comprising 500,000 Shares by the second (2nd) quarter of 2023 whereby Genetec and Citaglobal shall each subscribe for 249,500 new Shares for an aggregate sum of MYR 499,000 ("Additional Subscription") so that Genetec and Citaglobal's shareholding in CG BESS shall be held in the following shareholding proportions:- Salient Terms of the Terms of Reference of CG BESS:- The purposes of the Joint Venture are for the Parties to collaborate in the following areas:- develop, design and build integrated manufacturing facilities for BESS; develop BESS integrated solution; sharing of related technologies and know-how for the development of the BESS; and develop and own intellectual property and trademark for the BESS under CG BESS. CG BESS shall strive on securing BESS system development, construction, manufacturing and supply projects in Malaysia and other countries.

The board of directors of CG BESS ("CG BESS Board") consisted of four (4) members comprising two directors nominated by Citaglobal and two (2) directors nominated by Genetec. The Chairman of CG BESS Board shall be appointed by Citaglobal and shall have casting vote in event of equal deliberation for any resolution. The operational affairs of CG BESS shall be managed by a Management Committee which consists of four (4) members, out of which two (2) shall be nominated by Citaglobal and two (2) shall be nominated by Genetec.

Roles of the Parties for the Joint Venture: Citaglobal shall be responsible for, among others, the following:- responsible for exploring business opportunity and demand for BESS in Malaysia, ASEAN region and global positioning; bb) obtaining and securing the necessary government approvals, licenses, authorisations, permits or waiver from the relevant federal and state authorities to undertake business ventures and projects; and carrying out engagement and liaison activities with the federal and state governments and other such assistance and engagements as may be required to facilitate the approval, smooth development and implementation of business ventures and projects. Genetec shall be responsible for, among others, the following: providing technical expertise, advice and know-how on BESS and its related technologies to CG BESS; the injection of manufacturing and supply capabilities of BESS and its related technology products into CG BESS; and knowledge transfer of the above so that CG BESS can become a full-fledged BESS technology developer and provider. Notwithstanding the above, both Citaglobal and Genetec shall be jointly responsible for the following: overseeing all works and activities required to be undertaken for the entire development, implementation and management of all business ventures and projects; seeking, negotiating, structuring and raising all necessary financing required for the business ventures and projects; and budgeting and planning for the contracting services relating to the business ventures and projects, including negotiations with the selected contractors and subcontractors.

The Joint Venture allows the Parties to draw on and combine the respective unique resources, expertise, knowledge and experience of Genetec and its group of companies ("Group") as well as Citaglobal and its group of companies in respect of the BESS projects which would create a platform to tap into the energy storage segment which is seen as defensive with good potential for growth.