Vivocom’s Group Game Changer – Multi-Billion Sand Project Secured

• Initial contract worth RM3.79 billion
  for three years
• Aspires to be a major industry player ‘with
  exponential growth prospects’

KUALA
LUMPUR, MALAYSIA – Media
OutReach – 26 February 2021 – In
a filing to Bursa Malaysia this
evening, Vivocom Intl Holdings Berhad (‘Vivocom’) announced that V Development
Group via one of its subsidiaries has secured a ‘massive win’ worth
approximately USD934.7 million or the equivalent of RM3.79 billion.

 

Rain
International Sdn Bhd (‘Rain International’) is a 97% owned subsidiary under the
V Development Group which was recently merged into the Vivocom Group. The
Company’s proposed acquisition of V Development Group had been recently approved by the
relevant authorities.

 

Rain
International is principally involved in the mineral trading and exportation business,
supplying sand to its client mainly in Hong Kong and China for reclamation and
construction works.  The Company had
recently signed a contract for the supply of marine sand for a minimum period
of three years.

 

The
contract is for the supply of sand to Zhen Hua
Engineering Company Ltd-China Communications Construction Company Ltd-CCCC
Dredging (Group) Company Ltd. (ZHEC-CCCC-CDC), a Joint Venture contractor
appointed to undertake the main reclamation works for the Hong Kong
International Airport Three Runway System Project.

 

Director
Mr William Chan Ching-Kee said: “As the appointed agent for the ZHECC-CCCC-CDC
Joint Venture, we are looking forward to the exportation of sand from Malaysia
to our client in Hong Kong to commence without any further delay.”

 

Dato
Seri Chia is optimistic that the contract would be extended for another two to three
years and could potentially generate revenue of up to RM6 billion.

 

“The
sand business is a major boost because it gives us tremendous visibility. The
potential revenue is huge, recurring and highly scalable,” its jubilant CEO,
Dato Seri Chia Kok Teong exclaimed.

 

“The
potential for explosive growth in the sand business is real and tangible, and
bodes well for the Group in the next few years.”

 

“We
are starting with 3 years but the contract can easily be increased to 5 years
and beyond, with higher tonnage shipped every 6 months. The exportation of sand
will increase sharply over time,” he added.

 

Besides
the reclamation works for the Hong Kong International Airport, the rapid pace
of construction and reclamation works in China and Singapore also requires heavy
demand for sand, which is a considerable boon to Malaysia.

 

“The
market for sand export is extremely humongous and will fuel the Group’s rapid growth
for the next several years. The RM3.79 billion Win is the first of many more to
come.”

 

“I
have in fact urged my team to secure up to RM10 billion worth of sand contracts
by the end of 2021. This is part of our overall transformation strategy to
become a multi billions conglomerate,” declared Dato Seri Chia.

 

“It
is our core strategy to strengthen and diversify the Group’s revenues
generation capabilities and capacities and not be too narrowly focussed.”

 

“Presently,
we are already in negotiations for another RM2 to RM3 billion sand contract.
Once finalised, we will make the relevant announcement as per Bursa Malaysia’s requirements,” Dato
Seri Chia elaborated.

 

The
sand would be procured from an approved permit holder to export sand overseas,
and sourced from concession areas in Sandakan and Sungai Beluran in Sabah and
throughout Malaysia.

 

“Even
with this massive sand contract already secured, we will not be complacent. I
have earlier promised to transform Vivocom into a behemoth Conglomerate and I
will work non-stop to deliver on the promise,” Dato Seri assured.

 

Since Dato Seri Chia’s entry into Vivocom in January 2020 when its
price was at 15 cents, the share has climbed sharply and last closed at RM1.06
on Thursday, 25^th February 2021.

 

“I
am very optimistic that Vivocom shares will continue to grow strongly and be worth
a lot more than presently over time. I’m proud to say that we are no longer a
penny stock,” he reflected.

 

“My team is totally committed to building Vivocom into a reputable and
profitable public company, one with solid fundamentals, sustainable profits and
healthy cashflows.”

 

“As a priority, we will work towards getting the Group elevated to the
Main Board of Bursa Malaysia and be a dividends-paying company soonest possible,”
quipped Dato Seri.

 

To show his commitment, Dato Seri
Chia has undertaken a voluntary self–imposed moratorium (or SIM) in that he
will not dispose his personal stakes in Vivocom for the next 3 years. This will ensure the
company’s long-term price stability and sustainability.

 

“We
want a stable and strong share price so that the Company can use its shares
with its high liquidity as a currency for M&A activities to fund and
fast-track expansion and growth,” he explained.

 

“A
strong share with high liquidity is a most valuable and prized asset. We will
use it to buy Companies with game-changing and disruptive strategies. To look
for the Next Big Thing.”

 

“The enormous followings in the
Company are what is driving in tremendous liquidity and momentum giving our
share price added impetus,” Dato Seri proudly asserts.

 

“We aspire to emulate Berkshire Hathaway strategy started over 40
years ago by Mr Warren Buffet. Mr Masayoshi Son built SoftBank Group of Japan
along the same philosophy and Alphabet in US adopted similar strategies.”

 

“These three companies are presently amongst the most valuable and
admired companies in the world. I have the same dream for Vivocom. I
am determined to leave behind an enduring legacy for all our valued
shareholders,” concluded Dato Seri Chia.