MSTGOLF Annual Report 2024

SECTION 2: OUR STRATEGIC CONTEXT 32 Golf Coaching contributed RM5.14 million in revenue, a slight decrease of 2.98% compared to FY2023 due to lower revenue from driving range. The Group operates a total of 11 academy locations including two (2) located at driving ranges in Kuala Lumpur Golf & Country Club and Royal Selangor Golf Club, and seven (7) indoor facilities of which three (3) in Malaysia, two (2) in Singapore and two (2) in Indonesia. We have more than 20 dedicated pro instructors and fitters to conduct lessons and club fitting through MST Golf Lab, combining MST Golf Academy and The Golf Lab SEA. Golf coaching is part of our golf services, aimed at attracting more customers to our retail stores by enhancing their playing experience, which we believe will ultimately encourage them to play more frequently. d) Indoor Golf Revenue from indoor golf activities saw a rise of 2.1% in FY2024 compared to FY2023. This growth is mainly due to increased bay utilisation with three (3) new locations established in 2024. However, the contribution from the new outlets was partially offset by lower Food & Beverage (F&B) sales, resulted from the outsourcing of our F&B operations at IOI Mall Damansara as part of our cost-optimisation measures. The new opening at Toppen Shopping Centre, Johor Bahru offers minimal Food & Beverage options, whereas the Food & Beverage at our two locations in Indonesia are outsourced to third party operators. In total, the Group currently operates 6 indoor golf centres, with 4 in Malaysia and 2 in Indonesia. The Group in November 2024 opened its second indoor golf facility in Indonesia with MST Golf Arena at Agora Mall, Jakarta. FINANCIAL POSITION The Group maintained a strong financial position as the net assets remain at RM251.60 million and net cash and bank balances of RM49.30 million (excluding the short-term investment in money market of RM27.80 million [2023: RM26.66 million]). Total borrowings of RM44.81 million, which comprises of term loans and short-term trade facilities borrowings remain at a comfortable debt to equity ratio of 0.18. Our inventory level of RM165.75 million which represents a 10.00% increase, mainly from our new subsidiaries in Indonesia, is still at a manageable level to support our sales growth in 2025. Indoor Golf revenue RM5.89mil No. of Indoor Golf Facilities 6 The lower net cash and bank balances of RM24.03 million compared to the previous financial year is mainly due to our continued capital investments of RM17.14 million, particularly for Indonesian operations, and total dividend payments to shareholders of RM10.26 million during the year. CAPITAL EXPENDITURE The Group's capital expenditure (“CAPEX”) totalled RM17.14 million in FY2024, a marginal 1.0% decrease compared to the previous year. The main allocation of CAPEX, accounting for 63.7%, was incurred for our retail expansion in Indonesia, which included the opening of four additional stores in Jakarta, Indonesia. The remaining CAPEX was invested in enhancing the existing stores in Malaysia and Singapore through refurbishments and facility upgrades, as well as further investment in systems and technology to improve operational efficiency. MANAGEMENT DISCUSSION & ANALYSIS

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