MMAG Holdings Berhad (“MMAG” or “the  Group”) is pleased to reaffirm its solid financial position following the successful completion of  key financial measures and strategic initiatives. While the Group’s FY2023 audit report raised  concerns regarding its going concern status, these concerns stemmed solely from the delay in  completing the Rights Issue. This issue has since been fully addressed with the successful  completion of the Rights Issue in January 2024, raising RM145.34 million.

Additionally, the Group has further strengthened its financial standing by securing RM92.09  million through the conversion of warrants. This substantial conversion not only demonstrates  the shareholders' strong confidence in MMAG but has also improved the Group’s financial  position, boosting cash flow and enhancing the current ratio, with current assets now exceeding  current liabilities. With these developments, the Board of Directors is confident that MMAG’s  financial foundation is strong, positioning the Group for sustained growth moving forward. 

MMAG has also implemented a comprehensive range of strategic initiatives aimed at driving  sustainable revenue growth and enhancing operational efficiency. Key to these efforts has been  significant investment in infrastructure and facilities, including the development of larger and  automated courier and logistics hubs, the expansion of the vehicle and aircraft fleet, and the  establishment of an automated cargo terminal and oceanic transshipment hub at KLIA.  Moreover, the Group has integrated advanced IT and AI technologies, solidifying its position as  the only integrated, full-fledged supply chain provider offering 3PL, 4PL, last-mile, and mid-mile  delivery services among others across both land and air. 

Executive Director Mr. Chin Boon Long commented, “The actions we’ve taken, including the  successful Rights Issue and substantial warrant conversion by our shareholders, have decisively  strengthened our financial position. The material uncertainty raised in the FY2023 audit report  was a direct result of the timing issue related to the Rights Issue, which has now been fully  addressed. With our enhanced financial foundation and strategic contracts in place, we expect 

financial quarter 6 of the year 2024, from 1 July 2024 until 30 September 2024, and the  subsequent financial quarters to be highly profitable, driven largely by the profit contributions from the supply chain and aviation business segment. This anticipated profitability  demonstrates our strong recovery and the success of our strategic initiatives.” 

MMAG’s supply chain solutions arm has secured major contracts with most of the leading  telecommunications providers in the nation, while its aviation arm has established key  partnerships with industry leaders. This includes a collaboration with Menzies Aviation to set up  the ground handling business in Malaysia, interline partnerships with MasKargo, Teleport, ANA,  China Southern Airlines, and others, as well as a partnership with Unilode Aviation Solutions for  smart ULD management solutions. These strategic partnerships, combined with MMAG’s  advanced capabilities, have positioned the Group to capture new business opportunities and  enter a new era of growth. 

“Our logistics, courier, and aviation segments are now on a clear path to stabilisation and  expansion. Significant infrastructure investments have laid a robust foundation for future revenue  growth, and MMAG’s position as the only integrated, full-fledged supply chain group with its own  aviation arm provides a distinct competitive advantage. As we move forward, we expect to build  on this anticipated profitability and accelerate growth through operational efficiencies and  strategic investments,” Mr. Chin added. 

MMAG is committed to maintaining transparency with stakeholders and will continue to provide  updates in compliance with Bursa Malaysia’s Listing Requirements. 

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