39 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD The Group’s golf academy and coaching initiatives support structured talent development and contribute to the long term growth of the golf ecosystem 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. Indoor Golf Indoor Golf Revenue RM5.2 million 1.8% of Total Group Revenue Number of Indoor Golf Facilities 6 centres The Indoor Golf segment registered revenue of RM5.2 million in FY2025, a decrease of RM0.6 million or 10.8% from FY2024. The softer performance was primarily due to lower Food and Beverage (“F&B”) sales during the year. As of 31 December 2025, the Group operated six (6) indoor golf centres, comprising four (4) in Malaysia and two (2) in Indonesia. The segment remains an important component of the Group’s integrated golf ecosystem, supporting customer engagement and broadening participation in golf through accessible indoor formats. Financial Position As of 31 December 2025, the Group’s financial position reflects a strategic consolidation and balance sheet optimisation amidst a challenging retail landscape. Total Shareholders’ Funds stood at RM215.3 million, a 7.1% decrease from RM231.8 million in FY2024, primarily due to the net loss recorded for the year. The loss was largely driven by non-cash administrative and other expenses, specifically the impairment of property, plant and equipment and right-of-use assets totaling RM8.7 million. These impairments represent a prudent accounting measure to align the carrying value of our assets with current market conditions and expected future returns. A key highlight of our financial management this year was the significant reduction in group inventories, which decreased by 20.5% to RM131.8 million. This was the result of a concerted strategic effort on inventory management and optimizing our inventory turnover. The improved inventory position not only enhances our agility in responding to new market trends but also freed up significant cash flows. The Group maintained a disciplined and prudent approach to capital management throughout FY2025, with a clear focus on preserving liquidity and strengthening its balance sheet amid a challenging macroeconomic environment. Despite recording a net loss for the year, the Group delivered strong operating cash flow, generating net cash from operating activities of RM59.0 million, representing a 204.9% increase compared with RM19.3 million in FY2024. This reflects the Group’s continued focus on improving working capital management and operational efficiency. Indoor golf facilities complement MST Golf’s core retail operations by enhancing customer experience and engagement
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