SMTrack Berhad ("SMTrack") was listed in the ACE Market of Bursa Malaysia Securities Berhad in 2011. During our IPO, SMTrack was more than 300 times over-subscribed, one of the highest ever recorded over option on the Malaysian Stock Exchange. Its primary business activity is in information technology in general and in this respect its specialty is in providing online track and trace solutions and platforms using its state oft RFID technology coupled with a first-class tracking engine dubbed as SMTrack.
SMTrack had acquired a subsidiary called Asia Cargo Wings Sdn Bhd (formerly known as Citilink Aviation (M) Sdn Bhd) to carry out cargo airfreight business in July 2019, recognizes to be the potential of Air Freighter Services needs and to be based in Kuala Lumpur International Airport's (KLIA). The uniqueness of KLIA Airport position in the regional and national economy and its desire to derive added value from its location in the midst of a region of high-level commercial, transportation and logistics activities. With the aircraft fleet of Boeing 737-400 series, SMTrack had projected to ensure that the operating cost will be kept as low as possible to generate maximum revenue while offering a reliable service with reasonable fare. In view of the high demand for air cargo services, SMTrack had begun to transport air cargo with cargo business collaboration with Cainiao. SMTrack outlook for air cargo industry is likely to remain stable in the near term due to the sustained demand for air cargo services from the growth in e-commerce transactions, the use of air cargo services to transport high value to weight ratio goods, as well as the growth in international and domestic trade activities.
In 2022, SMTrack had diversity into the beauty and wellness industry by inking an agreement with Gan and GWT Wellness Sdn Bhd to acquire a 30% stake in V Ultimate Sdn Bhd for RM18 million to be fully satisfied via the issuance of 211,764,705 consideration shares.
In 2023, SMTrack again diversified their business into property related business, oil & gas and foods & beverages business in line with the group's objective to expand its revenue stream by diversifying into other viable businesses. We believe that by venturing into the property-related industry, it should provide a pool of additional income streams and an income base given the optimistic outlook in the property development sector. This sector is gradually recovering from the epidemic following the reopening of the economy and national borders.
SMTrack also stated that by venturing into support services for the Oil and Gas (O&G) industry, it can improve the group's financial performance and also reduce its dependence on existing businesses. Regarding the Foods and Beverages (F&B) business, SMTrack believe the segment is expected to be one of the group's stable businesses. The F&B segment is expected to contribute positively to its earnings taking into account the profit guarantee provided under the Share Sale and Purchase agreement (SSPA) and the favorable outlook and prospects of the F&B service industry.