1. INTRODUCTION

The Board of Directors of SMTrack Berhad ("SMTrack" or "the Company") hereby announces that SMTrack has triggered the prescribed criteria pursuant to Rule 2.1(c) of Guidance Note 3 ("GN3") of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities") ("ACE LR"), whereby:-

(i)  SMTrack has incurred an aggregated  loss of RM46.764  million for the financial year ended 31 December 2023 and financial period ended ("FPE") 31 December 2024  which exceeded the amount of its shareholders' equity of RM45.731 million;

(ii)  the loss for the FPE 31 December 2024 of RM30.951 million is more than 50% of the loss of RM15.812 million incurred in the FPE 31 December 2023; and 

(iii) the shareholders' equity for FPE 31 December 2024 was less than 50% of the share capital of SMTrack at the end of the said financial period.

2. OBLIGATIONS OF THE COMPANY PURSUANT TO GN3

Pursuant to GN3, the Company is required to comply with the following:

(i) within twelve (12) months from the date of the Company is a GN3 company, i.e. 13 April 2026;

(a)   submit a regularisation plan to the Securities Commission Malaysia ("SC") for approval, if the plan will result in a significant change in the business direction or policy of the Company; or

(b)   submit a regularisation plan to Bursa Securities and obtain Bursa Securities' approval to implement the plan, if the plan will not result in a significant change in the business direction or policy of the Company;

(ii)   complete the implementation of the regularisation plan within the time frame stipulated by the SC or Bursa Securities, as the case may be;

(iii)  announce within three (3) months from this First Announcement, on whether the regularisation plan will result in a significant change in the business direction or policy of the Company;

(iv)  announce the status of its regularisation plan and the number of months to the end of the relevant time frames referred to in Paragraphs 5.1 and 5.2 of GN3, as may be applicable, on a monthly basis until further notice from Bursa Securities;

(v)   announce its compliance or non-compliance with a particular obligation imposed pursuant to GN3, on an immediate basis;

(vi)  announce the details of the regularisation plan ("Requisite Announcement") and sufficient information to demonstrate that the Company is able to comply with all the requirements set out in Paragraph 5.4 of GN3 after implementation of the regularisation plan, which shall include a timeline for the complete implementation of the regularisation plan. The Requisite Announcement must be made by the Company's Principal Adviser; and 

(vii)  where the Company fails to regularise its condition, it will announce the dates of suspension and de-listing of its listed securities, immediately upon notification of suspension and de-listing by Bursa Securities.

3.  CONSEQUENCE OF NON-COMPLIANCE

In the event the Company fails to comply with the obligations to regularise its condition, all its listed securities will be suspended from trading on the next market day after five (5) market days from the date of notification of suspension by Bursa Securities and de-listing procedures shall be taken against the Company, subject to the Company's right to appeal against the de-listing.

4.  STATUS OF THE PLAN TO REGULARISE THE COMPANY'S CONDITION

The Board is taking the necessary steps to formulate a regularisation plan to address the Company's GN3 status and will make the necessary announcements on the regularisation plan in due course.

This announcement is dated 18 May 2026.