AEON CO. (M) BHD.

(Incorporated in Malaysia)(Company No. 198401014370 (126926-H))

QUARTERLY REPORT FOR THE
FINANCIAL PERIOD ENDED 30 JUNE 2024

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
ANNOUNCEMENT
The Board of Directors of AEON CO. (M) BHD. (“AEON” or “the Company”) presents the following unauditedcondensed consolidated financial statements for the second quarter ended 30 June 2024 which should be read in
conjunction with the audited financial statements for the financial year ended 31 December 2023 and theaccompanying explanatory notes attached to the unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Individual Quarter
Cumulative Period
Quarter ended
Period ended
30 June30 June
2024
2023
2024
2023
RM'm
RM'm
RM'm
RM'm
Revenue
Total operating expenses

1,020.9(962.5)

1,033.0(967.2)

2,188.3(2,018.9)

2,139.8(1,998.2)

Other operating income

8.4

6.9

14.4

14.8

Profit from operations

66.8

72.7

183.8

156.4

- Lease interest- Interest charges(19.3)(4.4)(23.7)(22.2)(4.1)(26.3)(39.1)(8.9)(48.0)(42.7)(8.3)(51.0)

Finance income

1.6

2.7

3.6

5.8

Share of results of associate

0.8

-

0.9

-

Profit before tax
Tax expense

45.5(17.8)

49.1(18.9)

140.3(55.1)

111.2(42.8)

Profit for the period

27.7

30.2

85.2

68.4

Basic earnings per ordinary
share (sen)(Note B11)

1.97

2.15

6.07

4.87

Interest expense

1

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Individual Quarter
Quarter ended
30 June
2024
2023
RM'm
RM'm

Cumulative Period
Period ended
30 June
2024
2023
RM'm
RM'm

Profit for the period

27.7

30.2

85.2

68.4

Other comprehensive income:Gain/(loss) on fair value ofother investments

11.2

(0.7)

17.7

(6.1)

Total comprehensive income for theperiod

38.9

29.5

102.9

62.3

2

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2024
RM'm

31 December 2023
RM'm

ASSETS
Non-current assets
Property, plant and equipment
Intangible assets
Right-of-use assets
Investments in associates
Other investment
Other assets
Deferred tax assets
Current assets
Inventories
Contract assets
Receivables, deposits and prepayments
Tax recoverable
Cash and cash equivalents

TOTAL ASSETS

3

3,046.3
32.5
1,016.3
1.8
69.4
27.9
184.9
4,379.1

3,090.2
39.3
1,071.2
0.9
51.7
17.9
183.1
4,454.3

535.1
16.9
112.8
111.8
776.6

553.4
16.4
98.1
1.5
99.8
769.2

5,155.7

5,223.5

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
30 June 2024
RM'm

EQUITY AND LIABILITIES

31 December 2023
RM'm

Share capital
Reserves

702.0
1,203.6

702.0
1,156.9

TOTAL EQUITY

1,905.6

1,858.9370.0
1,377.5
1.6
51.5
1,800.6370.0
1,441.7
4.9
48.5
1,865.1

70.2
71.1
174.9
1,118.9
14.4
1,449.5

81.7
50.0
182.2
1,185.6
1,499.5

TOTAL LIABILITIES

3,250.1

3,364.6

TOTAL EQUITY AND LIABILITIES

5,155.7

5,223.5

LIABILITIES
Non-current liabilities
Borrowings
Lease liabilities
Payables and accruals
Other liabilities

Current liabilities
Contract liabilities
Borrowings
Lease liabilities
Payables and accruals
Current tax liability

4

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Non-distributable
Distributable
Share
Fair value
Retained
capitalreserveearnings
RM'm
RM'm
RM'm

At 1 January 2024

Total
equity
RM'm

702.0

50.7

1,106.2

1,858.9

-

17.7

85.2

102.9

-

-

(56.2)(56.2)At 30 June 2024

702.0

68.4

1,135.2

1,905.6

At 1 January 2023

702.0

57.4

1,047.6

1,807.0

-

(6.1)

68.4

62.3

-

-

(56.2)(56.2)

702.0

51.3

1,059.8

1,813.1

Total comprehensive income
for the period
Final dividend in respect of year
ended 31 December 2023

Total comprehensive income
for the period
Final dividend in respect of year
ended 31 December 2022
At 30 June 2023

5

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Cumulative Period Ended
30 June 2024
30 June 2023
RM'm
RM'm
CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax

140.3

111.2

Adjustments for:
Depreciation and amortisation
Other non-cash items
Interest expense
Finance income

207.7
(4.2)
48.0
(3.6)

212.1
2.8
51.0
(5.8)

Operating profit before changes in working capital

388.2

371.3

Changes in working capital
Cash generated from operations(87.1)
301.1(26.1)
345.2

Tax paid
Net cash generated from operating activities(41.0)
260.1(49.9)
295.3

CASH FLOWS FROM INVESTING ACTIVITIESAcquisition of property, plant and equipment and intangible
assetsProceeds from disposal of property, plant and equipment
Finance income received
Net cash used in investing activities(79.1)
1.1
3.6(74.4)(219.2)0.6
5.8(212.8)

CASH FLOWS FROM FINANCING ACTIVITIESPayment of lease liabilities
Net drawdown/(repayment) of borrowings
Interest paid
Dividend paid^
Net cash used in financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 30 June

(90.6)
21.1(47.8)(56.4)(173.7)
12.0
99.8
111.8

(81.1)(38.9)(46.8)(56.0)(222.8)(140.3)
237.5
97.2^ As at 30 June 2023, there is dividend payable amounting RM0.2 million in relation to final dividend declared forfinancial year ended 31 December 2022. The dividend payable has been paid as at 30 June 2024.

6

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART A – EXPLANATORY NOTES PURSUANT TO
MALAYSIAN FINANCIAL REPORTING STANDARD 134
1

Basis of Preparation
The unaudited quarterly report has been prepared in accordance with the reporting requirements as set out in
Malaysian Financial Reporting Standard (“MFRS”) 134 “Interim Financial Reporting”, Paragraph 9.22 andAppendix 9B of the Bursa Malaysia Securities Berhad Main Market Listing Requirements (“Bursa Securities
Listing Requirements”) and should be read in conjunction with the audited financial statements for thefinancial year ended 31 December 2023.

2

Significant Accounting Policies
The accounting policies and methods adopted for the unaudited condensed financial statements are consistent
with those adopted for the audited financial statements for the financial year ended 31 December 2023 except
for the adoption of the following Amendments to Standards during the current financial period:•••

Amendments to MFRS 16, Leases – Lease Liability in a Sale and Leaseback
Amendments to MFRS 101, Presentation of Financial Statements – Non-current Liabilities with
Covenants and Classification of Liabilities as Current or Non-current
Amendments to MFRS 107, Statement of Cash Flows and MFRS 7, Financial Instruments: Disclosures –Supplier Finance Arrangements

Malaysian Accounting Standards Board had issued the following amendments and new standards which are
effective for the following financial years:(i) Financial year beginning on or after 1 January 2025:•

Amendments to MFRS 121, The Effects of Changes in Foreign Exchange Rates – Lack of
Exchangeability(ii) Financial year beginning on or after 1 January 2026:•

Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures –Amendments to the Classification and Measurement of Financial Instruments(iii) Financial year beginning on or after 1 January 2027:••

MFRS 18, Presentation and Disclosure in Financial Statements
MFRS 19, Subsidiaries without Public Accountability: Disclosure(iv) Effective date yet to be confirmed:•

Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in
Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture

The Company plans to apply the abovementioned accounting standards, interpretation and amendments in therespective financial years when the above accounting standards, interpretation and amendments become
effective where applicable.

7

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART A – EXPLANATORY NOTES PURSUANT TO
MALAYSIAN FINANCIAL REPORTING STANDARD 134 (continued)
3

Seasonal/Cyclical Factors
The operations of the Company typically experience higher customer count, transaction value and sales during
weekends, public holidays, school holidays and festive seasons.

4

Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flow
There were no unusual items affecting the assets, liability, equity, net income or cash flows for the financial
period ended 30 June 2024.

5

Material Changes in Estimates
There were no material changes in estimates of amounts reported in prior financial year that have a material
effect for the financial period ended 30 June 2024.

6

Debt and Equity Securities
There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities for thefinancial period ended 30 June 2024, other than as disclosed in this quarterly report.

7

Dividends Paid
During the financial period ended 30 June 2024, the final single-tier dividend of 4.0 sen per ordinary share in
respect of the financial year ended 31 December 2023 amounting to RM56,160,000 was paid on 20 June 2024.

8

Material Events Subsequent to End of Financial Period
There were no material events subsequent to end of financial period to be disclosed in the financial statements
for the financial period ended 30 June 2024, other than as disclosed in this quarterly report.

9

Effects of Changes in the Composition of the Company
There were no changes in the composition of the Company for the financial period ended 30 June 2024.

8

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART A – EXPLANATORY NOTES PURSUANT TO
MALAYSIAN FINANCIAL REPORTING STANDARD 134 (continued)
10 Operating Segments
The operating segments analysis is as follows:
Property Management
Services
Period ended
30
30
June
June
2024
2023
RM’m
RM’m

Retailing
Period ended
30
30
June
June
2024
2023
RM’m
RM’m
Revenue

Total
Period ended
30
30
June
June
2024
2023
RM’m
RM’m

1,817.3

1,805.4

371.0

334.4

2,188.3

2,139.8

54.2

40.0

147.8

125.6

202.0
(18.2)

165.6
(9.2)

Segmental profit
Less: Unallocated expenses
Profit from operations
Interest expense- Lease interest- Interest charges
Finance income
Share of results of associate

183.8

156.4

(39.1)
(8.9)
3.6
0.9

(42.7)(8.3)
5.8-

Profit before tax
Tax expense

140.3(55.1)

111.2(42.8)

Profit for the period

85.2

68.4

* As part of the Company's re-alignment of segmental operating result, the comparatives are restated by reallocating expenses across the segments.
11 Revenue
Quarter ended
30 June 2024
30 June 2023
RM’m
RM’m
Sale of goods
Net commission from concessionaire sales
Property management services
Others9

Period ended
30 June 2024
30 June 2023
RM’m
RM’m

728.7
91.8
186.3
14.1

739.6
109.4
170.8
13.2

1,571.7
215.9
375.1
25.6

1,551.5
224.4
338.5
25.4

1,020.9

1,033.0

2,188.3

2,139.8

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART A – EXPLANATORY NOTES PURSUANT TO
MALAYSIAN FINANCIAL REPORTING STANDARD 134 (continued)
12 Related Party Transactions
During the current quarter under review and up to the date of this announcement, the Company did not enter
into any Related Party Transactions or Recurrent Related Party Transactions of a revenue or trading nature that
had not been included or exceeded the estimated value by 10% or more of the total aggregate amount which
had been mandated by the shareholders during the Annual General Meeting held on 23 May 2024.
13 Contingent Liabilities or Contingent Assets
There were no contingent liabilities or contingent assets since the last audited financial statements for thefinancial year ended 31 December 2023.
14 Capital Commitments
Capital commitments not provided for in the financial statements as at the end of the financial period are as
follows:
30 June 2024
RM’m

31 December 2023
RM’m

157.8

13.8

Property, plant and equipment
Contracted but not provided for and not payable

15 Fair value measurements
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in thevaluation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

10

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART A – EXPLANATORY NOTES PURSUANT TO
MALAYSIAN FINANCIAL REPORTING STANDARD 134 (continued)
15 Fair value measurements (continued)
The table below analyses financial instruments carried at fair value and those not carried at fair value for which
fair value is disclosed, together with their carrying amounts shown in the statement of financial position.
Fair value of financial instruments
not carried at fair value
Level 1
Level 2
Level 3
RM’m
RM’m
RM’m

Fair value of financial
instruments carried at fair value
Level 1
Level 2
Level 3
RM’m
RM’m
RM’m

Carrying
amount
RM’m

30 June 2024
Financial Asset
Investment in quoted equities
Financial Liabilities
Borrowings

69.4

-

-

-

-

-

69.4

-

-

-

-

-

(448.8)(441.1)

Fair value of financial instruments
not carried at fair value
Level 1
Level 2
Level 3
RM’m
RM’m
RM’m

Carrying
amountRM’mFair value of financial
instruments carried at fair value
Level 1
Level 2
Level 3
RM’m
RM’m
RM’m
31 December 2023
Financial Asset
Investment in quoted equities
Financial Liabilities
Borrowings

51.7

-

-

-

-

-

51.7

-

-

-

-

-

(429.7)(420.0)11

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS
1

Review of Performancea.

Performance of the current quarter (Second Quarter FY24) against the corresponding quarter (Second
Quarter FY23)
Quarter Ended
30 June2024
RM’m

Quarter Ended
30 June2023
RM’m

Changes
%

836.8
184.1
1,020.9
66.8
45.5

864.0
169.0
1,033.0
72.7
49.1

-3.1%
8.9%
-1.2%
-8.1%
-7.3%

Revenue by segment:
Retail business
Property management services
Total Revenue
Profit from operations
Profit before tax

For the current quarter, the Company registered a total revenue of RM1,020.9 million, 1.2% lower ascompared to corresponding quarter of RM1,033.0 million.
Retail business recorded revenue at RM836.8 million, 3.1% lower compared to corresponding quarter of
RM864.0 million. The decline in revenue is mainly due to timing of the festive season.
Revenue from the property management services segment at RM184.1 million, is 8.9% higher compared tocorresponding quarter of RM169.0 million. The growth was contributed by improvement in occupancy rateand effective rental renewals.
The Company registered a profit before tax of RM45.5 million for the quarter, as compared to thecorresponding quarter of RM49.1 million, which recorded a 7.3% decline, mainly driven by lower revenue.
b.

Performance of the current quarter (Second Quarter FY24) against the preceding quarter (First Quarter
FY24)
Current
Quarter
30 June2024
RM’m

Revenue by segment:
Retail business
Property management services
Total Revenue
Profit from operations
Profit before tax

836.8
184.1
1,020.9
66.8
45.5

12

Preceding
Quarter
31 March
2024
RM’m
980.5
186.9
1,167.4
117.0
94.8

Changes%-14.7%-1.5%-12.5%-42.9%-52.0%

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
1

Review of Performance (continued)b.

Performance of the current quarter (Second Quarter FY24) against the preceding quarter (First Quarter
FY24) (continued)

For the current quarter, the Company registered a total revenue of RM1,020.9 million, 12.5% lower compared
to preceding quarter of RM1,167.4 million.
Retail business recorded revenue at RM836.8 million, is 14.7% lower compared to preceding quarter of
RM980.5 million. The decline in revenue is mainly due to higher festivities spending in the preceding quarter.
Revenue from the property management services segment at RM184.1 million, is 1.5% lower compared topreceding quarter of RM186.9 million. The decline is mainly from higher sales commission in preceding
quarter during the festive season.
The Company’s profit before tax for the current quarter of RM45.5 million, is 52.0% lower compared topreceding quarter of RM94.8 million, mainly driven by lower revenue.
c.

Performance of the current period (YTD June 2024) against the corresponding period (YTD June 2023)
Period Ended
30 June 2024
RM’m

Period Ended
30 June 2023
RM’m

Changes%

1,817.3
371.0
2,188.3
183.8
140.3

1,805.4334.4
2,139.8
156.4
111.2

0.7%
10.9%
2.3%
17.5%
26.2%

Revenue by segment:
Retail business
Property management services
Total Revenue
Profit from operations
Profit before tax

For the current period, the Company registered a total revenue of RM2,188.3 million, 2.3% higher ascompared to corresponding period of RM2,139.8 million.
Retail business recorded revenue at RM1,817.3 million, is 0.7% higher compared to corresponding period of
RM1,805.4 million, supported by higher customer spending.
Revenue from the property management services segment at RM371.0 million, is 10.9% higher compared tocorresponding period of RM334.4 million. The growth was contributed by improvement in occupancy rate andeffective rental renewal.
The Company registered a profit before tax of RM140.3 million for the period compared to corresponding
period of RM111.2 million, which recorded 26.2% increase, contributed by higher revenue and disciplined
cost management.

13

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
2

Prospects for the Financial Year Ending 31 December 2024 (FY2024)
The Malaysian economy grew in the first half of 2024 on the back of strong domestic consumption, improved
labour market and the recovery in tourism. While inflation remained relatively stable with pressures seen fromglobal commodity prices (exacerbated by geopolitical factors) and the impending RON95 fuel subsidy
rationalisation plan, AEON expects challenging conditions reflecting the current economic environment of
subdued consumer sentiment and constrained purchasing power.
In conjunction with AEON’s 40th Anniversary celebration and its Vision “to create more smiles and connect tothe hearts” of our customers, a series of promotional events, activities and reward programmes, incollaboration with our tenant partners and suppliers, have been rolled out and planned for in FY2024. Some ofthese include attractive product assortments along with special events such as A-Day and store re-opening
promotions to bring more value to AEON customers. In the coming months, we are also accelerating
renovation projects at selected AEON stores and malls to provide customers with greater shopping experience.
Looking ahead, the Company remains focused on executing its strategic priorities, both on the retail businessand property management services front, accelerate digital initiatives, grow private brands, create more AEON
Living Zones in local community, implement sustainability initiatives while managing operating cost
efficiently.

3

Profit Forecast/Profit Guarantee
Not applicable as the Company did not publish any profit forecast or profit guarantee.

4

Tax expense
Tax expense comprises:
Quarter ended
30 June 2024
30 June 2023
RM’m
RM’m
Current tax expense
Deferred tax expense

Period ended
30 June 2024
30 June 2023
RM’m
RM’m

18.4
(0.6)

24.6
(5.7)

56.9
(1.8)

55.9
(13.1)

17.8

18.9

55.1

42.8

The Company’s effective tax rate is higher than the statutory tax rate mainly due to expenses not deductible fortax purposes.

14

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
5

Notes to the Statement of Profit or Loss
Quarter ended
30 June 2024
30 June 2023
RM’m
RM’m
Profit before tax is arrived at after
charging/(crediting):
Depreciation and amortisation
Depreciation of right of use assets
Interest expense- lease interest- interest charges(Reversal of impairment)/Impairment
loss on trade receivables
Reversal of impairment loss onproperty, plant and equipment
Fixed assets written off
Finance income:- interest income- gain on disposal of unit trusts

Period ended
30 June 2024
30 June 2023
RM’m
RM’m

65.5
38.4

72.1
37.4

131.5
76.2

141.6
70.5

19.3
4.4

22.2
4.1

39.1
8.9

42.7
8.3

(1.0)

0.7

(0.8)

2.4

0.2

0.1

(0.9)
1.3

0.3

(1.6)
-

(1.3)
(1.4)

(3.6)
-

(4.1)
(1.7)

Other disclosure items pursuant to Appendix 9B Note 16 of the Listing Requirements of Bursa Malaysia
Securities Berhad are not applicable.
6

Status of Corporate Proposal
There was no corporate proposal announced but not completed as at the date of this report.

7

Borrowings and Debt Securities

Unsecured
Term loan
Revolving credits
Islamic Medium Term Notes

Long term
RM denomination
RM’m

As at 30 June 2024
Short term
RM denomination
RM’m

Total borrowings
RM denomination
RM’m

370.0

11.1
60.0
-

11.1
60.0
370.0

370.0

71.1

441.1

15

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
7

Borrowings and Debt Securities (continued)

Unsecured
Term loan
Islamic Medium Term Notes(i)Long term
RM denomination
RM’m

As at 30 June 2023
Short term
RM denomination
RM’m

Total borrowings
RM denomination
RM’m

11.1
170.0

77.8
200.0

88.9
370.0

181.1

277.8

458.9

The term loans are unsecured, bear interest ranging from 2.99% to 3.03% (2023: 2.99% to 3.03%) per
annum and are repayable on quarterly basis up to 29 July 2024.

(ii) The unsecured revolving credits bear interest rate of 3.92% (2023: Nil) per annum.
(iii) The unsecured Islamic Medium Term Notes bear interest rate of 4.28% to 4.41% (2023: 3.15% to 3.65%)
per annum.

16

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
8

Changes in Material Litigation
On 2 March 2021, the Company received a legal suit from Betanaz Properties Sdn. Bhd. (“Plaintiff”). The
Plaintiff alleged that the Company did not comply with its obligations under the Tenancy Agreement dated 24
August 2017 (“Tenancy Agreement”) to fulfill the conditions precedent under the Tenancy Agreement and had
wrongfully terminated the Tenancy Agreement. The Plaintiff is seeking for, among others, the following reliefs:(i) Rental payment payable to the Plaintiff for the tenancy period between 1 April 2020 to 17 December 2021
and for the initial term of ten (10) years of the lease amounting to a total sum of RM59,302,302.97; or(ii) Expenditure allegedly incurred by the Plaintiff for the project, including but not limited to site clearance
and earthworks, consultancy fees, financing costs and other incidental costs arising from the banking
facilities and others costs amounting to RM18,936,207.76.
On 29 March 2021, the Company filed and served its defence against the Plaintiff. Further, the Company, as theplaintiff, filed a counterclaim against Betanaz Properties Sdn. Bhd. as the first defendant, and Ahmad Zaki
Resources Berhad (“AZRB”) as the second defendant due to the non-fulfillment of the condition precedents on
the part of the defendants prior to the expiry of the respective conditional periods and the Tenancy Agreement
and Commercial Agreement dated 24 August 2017 had been rendered void due to the expiry of the conditional
periods on 23 October 2020 and 23 January 2020 respectively.
The Company is claiming, among others, the return or payment of approximately RM2,303,087.00 being theconsultation fees for the project from the Plaintiff as first defendant and approximately RM28,415,094.44 being
the contribution towards the construction of the bridge connecting Bandar Kuantan to Bandar Putra, Tanjung
Lumpur, Pahang (“Bridge”), from AZRB as the second defendant.
AZRB further filed the application to strike out the Company’s counterclaim against AZRB on 7 May 2021 andon 22 October 2021, the High Court allowed AZRB’s application to strike out the Company’s counterclaim
against AZRB on the basis that the bridge across the Kuantan River, connecting Bandar Kuantan to Bandar
Putra, Tanjung Lumpur (“Bridge”) was completed and the Company’s counterclaim is not sustainable.
On 26 October 2021, the Company filed and served the Notice of Appeal against the decision of the High Court
judge and the hearing date is fixed on 9 May 2022.
Pursuant to the Company’s appeal against the High Court’s decision to allow AZRB’s application to strike out
the Company’s counterclaim against AZRB on 9 May 2022, the Court of Appeal has decided in favor of theCompany, and as a result, AZRB will be reinstated as a party to the Company’s counterclaim as the second
defendant in the trial for the Main Suit. Subsequently on 13 June 2022, the Court agreed to bring forward thetrial dates for the Main Suit to 6 to 7 July 2023 and 3 to 4 August 2023, respectively.
The trial for the Main Suit has commenced on 6 and 7 July 2023 and the Court has vacated the trial dates fixedon 3 and 4 August 2023. The Court has subsequently fixed further trial dates for the continuation of the trialfrom September 2023 to August 2024.
Based on the advice by the Company’s legal counsel, the Directors are of the view that the Plaintiff is notentitled to the reliefs because the Tenancy Agreement and Commercial Agreement dated 24 August 2017 hadbeen rendered void due to the expiry of the conditional periods on 23 October 2020 and 23 January 2020
respectively. In addition, the damages sought by the Plaintiff in relation to the rental are contradictory to theRules of Court as the said category of claim is general damages which should not have been quantified as if itwere special damages. Hence, provisions are not required in respect of these matters, as it is not probable that a
future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.
17

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
9

Dividend
No dividend was proposed or declared for the financial period ended 30 June 2024.

10 Qualification of the Preceding Audited Annual Financial Statements
There was no qualification to the preceding audited annual financial statements for the financial year ended 31
December 2023.
11 Earnings Per Share
Quarter ended
30 June 2024
30 June 2023

Period ended
30 June 2024
30 June 2023

Profit attributable to the owners for theperiod (RM’m)

27.7

30.2

85.2

68.4

Weighted average number of ordinary
shares in issue (’m)

1,404

1,404

1,404

1,404

Basic earnings per ordinary share (sen)

1.97

2.15

6.07

4.87

Diluted earnings per share is not applicable for the Company.
12 Material Event During the Financial Period
Acquisition of property, plant and equipment
On 4 June 2024, the Company entered into a Sale and Purchase Agreement (“SPA”) with Real Attraction Sdn.
Bhd., in respect of the acquisition of two (2) pieces of land both situated in Seremban, Negeri Sembilan, thedetails are as below:- PAJAKAN NEGERI 49354, LOT 50880, Bandar Seremban Utama, Daerah Seremban, Negeri Sembilan

measuring approximately 2.382 acres or 9,639 square metres or 103,753.33 square feet (“the LeaseholdLand”); and- GERAN 281688, LOT 50465, Bandar Seremban Utama, Daerah Seremban, Negeri Sembilan measuring
approximately 20.663 acres or 83,620 square metres or 900,078.18 square feet (“the Freehold Land”)

The purchase consideration in accordance to the SPA is RM102,891,466. The Company will pay 10% of thepurchase price upon signing SPA and remaining 90% of the purchase price shall be paid progressively to thevendor until the successful transfer of title in the Company’s name based on the agreed milestones.
On 7 June 2024, first progress payment amounting to RM10,289,146.60 was paid and classified in “Other
assets” as at 30 June 2024. The balance consideration is included in capital commitment.

18

AEON CO. (M) BHD.
(Incorporated in Malaysia)(Company No. 198401014370 (126926 - H))
QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2024
PART B – EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIESLISTING REQUIREMENTS (continued)
13 Material Event Subsequent to End of Financial Period
Establishment and issuance of Sukuk Wakalah Programmes
On 2 July 2024, the Company has established an Islamic Commercial Papers ("ICP") Programme ("ICPProgramme") and an Islamic Medium Term Notes ("IMTN") Programme ("IMTN Programme") with a
combined aggregate limit of up to RM2.0 billion in nominal value based on the Shariah principle of Wakalah
Bi Al-Istithmar. The ICP Programme shall have a programme tenure of seven (7) years while the IMTN
Programme shall have a perpetual programme tenure. The Company intends to utilise the proceeds for thefollowing purposes:(a)Working capital requirements, capital expenditures, investments and other general corporate purposes of
the Issuer;(b) Refinancing of existing conventional borrowings/existing corporate bonds and refinancing of existing
and/or future Islamic financing/existing and/or future Sukuk issues of the Issuer; and/or(c)

Payment of fees, costs and expenses in relation to the Sukuk Wakalah Programmes

On 16 August 2024, the Company issued the first series of IMTN amounting RM220.0 million with tenure of 5
years and ICP amounting RM30.0 million with tenure of 6 months.

19