KUALA LUMPUR: MMAG Holdings Bhd has reaffirmed its solid financial position following the successful completion of key financial measures and strategic initiatives.
While the group’s FY23 audit report raised concerns on its going concern status, these concerns stemmed solely from the delay in completing the rights issue which has been fully addressed 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 which not only demonstrated 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.
According the press statement, 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 Chin Boon Long said, “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 FY23 audit report was a direct result of the timing issue related to the rights issue, which has now been fully addressed.”
With the enhanced financial foundation and strategic contracts in place, he added they expect financial quarter 6 of year 2024, from July 1 until Sept 30, 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,” said Chin.
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.
MMAG said they are committed to maintaining transparency with stakeholders and will continue to provide updates in compliance with Bursa Malaysia’s listing requirements.
