PETALING JAYA: Carzo Holdings Bhd
(CHB) is proposing to cease its core business of distributing fresh fruits and fruit products, with immediate effect.
In a filing with Bursa Malaysia, the company said this was in view of the consecutive net losses recorded by the group for the financial years ended June 30, 2023 and June 30, 2024 of RM18.89mil and RM6.55mil, respectively, as well as capital deficiency of RM12.08mil recorded as at June 30, 2024.
“The management has been taking the necessary steps to address its capital deficiency and cashflow position via focusing on costs saving measures to reduce its operational expenses, such as scaling down the business of distribution and retailing of a variety of fresh fruits as well as disposing of identified fixed assets to improve the cash flow of the group since July 2024.
“Despite the management’s effort to improve the financial position of the group, the board noted that the scaling down of operational activities to a certain extent has helped the group to keep its operating cost at the minimal level.
“But the limited supplies of fresh fruits to customers as a result of cash flow constraints of the group have led to significant loss in sales of fresh fruits, which have impacted the group’s fruit distribution business in the last few months.
“Hence, the board further noted that the management’s effort to turn around the business of the group was not fruitful due to unsustainable revenue generated in the past few months.”
Pursuant to Rule 6.06 of the LEAP Market Listing Requirements, CHB noted that it must, at all times, have a clearly identifiable core business.
“If CHB does not have a clearly identifiable core business, CHB must make an announcement to Bursa Malaysia and within nine months from the date of the announcement, to acquire a new core business and comply with Rule 7.07 of the LEAP Market Listing Requirements relating to a significant change in business direction or policy; or apply to the bourse for a withdrawal of listing.”
With the cessation of core business of the group, CHB said it is still in the midst of determining an appropriate next course of action and possible options in relation to the future plan of the group.
