Bursa Announcements

We refer to the announcement made on 26 December 2024 in relation to the temporary halt of bird’s nest export to China as announced from the Department of Veterinary Services (DVS) with effect from 25 December 2024 (“Temporary Suspension”) (“Announcement”). Unless otherwise defined, the definitions set out in the Announcement shall apply herein.

The Temporary Suspension has caused a temporary disruption to the Company’s operations and affected the Company’s supply chain and revenue streams tied to the China market as exportation to China is one of the major markets for the Company. There are orders for approximately RM2.50 million to be exported to China which the Company is unable to fulfil due to the Temporary Suspension. The Company is unable to fully quantify the financial impact of the Temporary Suspension at this juncture as the situation in relation to the Temporary Suspension remains fluid. Regardless, the Company is still incurring its monthly overhead cost of approximately RM92,000 notwithstanding the Temporary Suspension.

Taking the above into account, the Board of Directors of MYMBN (“Board”) is of the view that the financial impact of the Temporary Suspension is not expected to be material at this juncture.

Notwithstanding to the above, the Board have assessed the situation immediately and are taking the following actions to manage this crisis effectively: -

1. Engaging with Authorities: MYMBN is actively collaborating with relevant regulatory bodies to address the issues leading to the Temporary Suspension and expedite the resolution process.
2. Diversifying Markets: Efforts are underway to strengthen MYMBN’s presence in alternative markets to mitigate dependency on the China market during this period.
3. Internal Adjustments: Operational workflows are being optimised to manage inventory and production levels efficiently while maintaining product quality.
4. Communication Strategy: Transparent communication with stakeholders, including suppliers and partners, is being prioritised to ensure alignment and sustained confidence.

This announcement is dated 31 December 2024.