KUALA LUMPUR: MMAG Holdings Bhd
said it is now classified as a Guidance Note 3 (GN3) status company after triggering Paragraph 2.1(g) of GN3 of the ACE Market listing requirements of Bursa Malaysia Securities.
In a filing with Bursa Malaysia, the group revealed that external auditors have expressed material uncertainty related to the going concern of the company in the audited financial statements for the financial year ended March 31, 2023.
In addition, the shareholders' equity of the company on a consolidated basis is 50% or less of its issued share capital calculated based on the unaudited financial results of the Company as at June 30, 2024.
However, MMAG said it will submit an application for a waiver from being classified as an affected listed issuer to Bursa Securities as it has already taken measures by undertaking and completing a rights issue on Jan 23, 2024, raising RM145.34mil.
It said warrants converted subsequent to January 2024 to-date have raised an additional RM92.09mil.
"Following the successful completion of the rights issue and the proceeds arising from the conversion of the warrants, the board of directors is of the view that the group’s net assets has strengthened from RM170.62mil based on the audited financial statements for the financial year ended 31 March 2023 to RM220.77mil based on the unaudited financial results as at June 30, 2024," it said.
The group’s cash position has also improved from RM13.03mil based on the audited financial statements for the financial year ended March 31, 2023, to RM78.86mil based on the unaudited financial results as at June 30, 2024.
Net current assets (current assets have exceeded current liabilities) have also improved from a net current liabilities of RM56.87mil based on the audited financial statements for the financial year ended March 31, 2023, to net current assets of RM39.46mil based on the unaudited financial results as at June 30, 2024.
In a separate statement, executive director Chin Boon Leong commented that the actions taken by the group, including the successful rights issue and substantial warrant conversion by shareholders, have decisively strengthened its 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 six of the year 2024, from July 1, 2024, until Sept 30, 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.”
He added that 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,” Chin added.
