Kim Heng : Positive Profit Guidance For The 12 Months Ended 31 December 2022

KIM HENG LTD.

(Company Registration Number: 201311482K) (Incorporated in the Republic of Singapore on 29 April 2013)

POSITIVE PROFIT GUIDANCE FOR THE 12 MONTHS ENDED 31 DECEMBER 2022

The Board of Directors of Kim Heng Ltd. (the "Company") wishes to inform the shareholders and potential investors that based on the information currently available and the management's preliminary review of the unaudited consolidated financial results of the Company and its subsidiaries (the "Group") for the 12 months ended 31 December 2022 ("FY2022"), it is expected that the Group's net profit for FY2022 will be positive when compared to that for the 12 months ended 31 December 2021.

The Group's expected positive net profit for FY2022 was mainly attributable to operating profit and increase in other income contributed by gain on disposal of vessels. The Group is able to achieve such positive net profit due to (a) stronger demand for marine and offshore services, (b) the Group's prudent acquisition of vessels during the economic downturn and (c) able to leverage on knowledge from Oil & Gas operations to repurpose the existing fleet of vessels by retrofitting, modifying and reconstructing at our Group's two shipyards to meet customers' requirements. Repurposing of existing fleet for sale is in the ordinary course of business for the Group.

The group is strengthening its offshore capabilities by repositioning to actively pursue more opportunities in offshore windfarm projects in Taiwan, Vietnam and United States of America.

The Company is still in the process of finalising the Group's financial results for FY2022. Further details of the Group's financial performance will be disclosed when the Company announces its unaudited financial results for FY2022 on or before 28 February 2023.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company. If shareholders and potential investors are in doubt as to the action they should take, they should seek advice from their stockbrokers, bankers, solicitors, accountants, tax advisers or other professional advisers.

By Order of the Board

Tan Keng Siong Thomas

Executive Chairman & CEO

Kim Heng Ltd.

21 February 2023

This announcement has been reviewed by the Company's sponsor, SAC Capital Private Limited (the "Sponsor"). This announcement has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms. Tay Sim Yee (telephone (65) 6232 3210) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.