PETALING JAYA: Jade Marvel Group Bhd (JMGB) has proposed a diversification of its existing businesses to include mining, sale and trading of iron ore, dolomite, sand and other minerals to expand its revenue stream.
JMGB is principally involved in four main business segments namely investment holdings segment, manufacturing segment, property development segment, and money lending segment. For the past three financial years, the revenue of the group’s manufacturing segment, which consists the manufacturing and trading of bituminous premix, tarmac, emulsion and operation of quarry, has been declining mainly due to the interruption of business operation due to Covid-19.
“The board anticipates that the new business will potentially contribute 25% or more of the group’s net profit and/or result in a diversion of 25% or more of the group’s net assets,” the group said in a filing with Bursa Malaysia today.
JMGB intends to fund the new business through its internally-generated funds. It intends to commence the mining operations upon successful discovery of high mineralisation and high grade iron ore in the remaining Kuala Krai Land subject to satisfactory geology report and feasibility study and hence no additional capital outlay is required at this juncture. In the event of any shortfall from the group’s internally-generated funds, it intends to fund the shortfall by utilising bank borrowings and/or capital fund raising.
“Additionally, the group will continue to seek further opportunities by seeking for new viable mining contracts/leases and exploring joint venture or co-operation opportunities with business partners to undertake mining and mining-related activities as well as exploring the sale and trading of other minerals. Furthermore, the group is able to tap into the competency and experience of key management personnel identified to spearhead the group’s new business to enhance the group’s prospects,” said JMGB.
The proposed diversification is subject to the approvals being obtained from the shareholders at the EGM to be convened; and is expected to be completed by the third quarter of 2022.
