We refer to the previous monthly announcements in relation to the Company being classified as an affected listed issuer pursuant to Practice Note 17 (“PN17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“Listing Requirements”).

The Board of Directors of the Company (“Board”) wishes to inform that the Company is still in the midst of formulating its regularisation plan and has approximately 5 months (until 27 February 2021) to submit its regularisation plan.

Save for the termination of the Heads of Agreement entered with MRI VC Berhad which was announced on 15 September 2020, there were no other major developments subsequent to the previous monthly announcement announced on 1 September 2020 in relation to the Company’s regularisation plan.

This announcement is dated 1 October 2020.

Brahim’s Holdings Berhad (“BHB”) is an investment holding company to a group of Food & Beverages (“F&B”) related subsidiaries; one of them is the country’s leading Halal in-flight catering company through its 51% equity interest in Brahim’s SATS Investment Holdings Sdn Bhd (“BSIH”) which in turn owns 70% of Brahim’s SATS Food Services Sdn Bhd (“BSFS”). The remaining 30% equity of BSFS is owned by Malaysia Airlines Berhad (“MAB”).

BSFS is the principal in-flight catering service provider at KLIA, KLIA2 and Penang International Airport. BSFS serve 35 international airlines with MAB remaining as the major customer.

BSFS operates 24 hours daily with maximum capacity of about 65,000 meals production daily, previously (Pre-Covid-19) cater to an average of 230 aircraft per day and prepares an average of 45,000 to 50,000 inflight meals per day from its certified Halal kitchen located in KLIA and Penang International Airport.

Current Overview (Post Covid-19)

BSFS has been struggling ever since the announcement of the movement control order (“MCO”) which was initially scheduled between 18 March and 31 March, requiring non-essential businesses to stop operations, while the public was ordered to stay at home with stern travelling restrictions.

The MCO later on has been extended and reclassified into conditional movement control order (“CMCO”) beginning 4 May to 9 June and latest into recovery movement control order (“RMCO”) beginning 10 June until 31 December.

The aviation and tourism industries have been severely affected by this pandemic and the salvage is unlikely to happen anytime soon. People are still sceptical and having concern over travelling even after the MCO is uplifted.

While the international borders remain closed, BSFS production has dropped drastically. With over 1,400 staffs manning the kitchen previously, recent Mutual Separation Scheme (“MSS”) exercise by the company has resulted in the latest number of staffs reducing to only about half. This MSS is expected to significantly manage BSFS cashflows and reduce the losses.

The group will continue to closely monitor the latest development of the recovery progress and take appropriate measures to mitigate any upcoming risks, as well as provide updates on any further development.

Strategies, planning and action has been put in place for new business exploration and adoption to innovative ways of doing things. Facilitation from the government and financial institutions have also become the agenda for the management of BSFS to pursue.

The business prospect in the aviation segment remain uncertain; any policies or incentives set by the government with regards to the aviation industries will certainly give positive implication to BSFS. BSFS has started to explore the non-aviation segment in the effort to remain relevant in the industries.

This announcement is dated 1 September 2020.