Carzo Holdings has ceased its primary operation in the distribution of fresh fruits and fruit products amid financial challenges. The company disclosed to the bourse that this move comes after facing continuous net losses and cashflow issues. It reported a net loss of approximately $4.25 million (RM18.89 million) for the fiscal year ending 30 June 2023, and about $1.47 million (RM6.55 million) for the year ending 30 June 2024, with a negative cashflow position of around $126,000 (RM0.56 million) and a capital deficiency of approximately $2.72 million (RM12.08 million) as of 30 June 2024.
In efforts to mitigate its financial situation, Carzo scaled down its fresh fruit distribution and retail operations and liquidated fixed assets to bolster cash flow. Despite these measures, the restricted supply of fresh fruits to customers due to cashflow limitations led to a substantial decrease in sales, affecting the business negatively. The company acknowledged that attempts to revitalize the business did not yield the desired outcomes, leading to the cessation of its core business activity "with immediate effect."
As a participant in the LEAP Market of Bursa Malaysia Securities Bhd, Carzo is obligated to maintain a distinct core business or face potential suspension or delisting. The company is exploring its next moves and considering various options for its future direction.
Source: The Malaysian Reserve