REPL::Annual Reports and Related Documents::

CONTENTS

01 Corporate Profile

02 Chairman's Message

04 Business Segments

08 Corporate Structure

1. Corporate Milestones
2. Board of Directors

1. Management Team
2. Operations Review

17 Corporate Governance Report

41 Financial Statements

This annual report has been prepared by the Company and its contents have been reviewed by the Sponsor, UOB Kay Hian Private Limited ("Sponsor") for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist. This annual report has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this annual report including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Mr Lance Tan, Senior Vice President at 8 Anthony Road, #01-01, Singapore 229957, telephone: [phone].

CORPORATE

PROFILE

MeGroup Ltd. ("MeGroup" or the "Company", and together with its subsidiaries, the "Group") is a Malaysian-based automotive company involved in the manufacturing of noise, vibration and harshness ("NVH") and non-NVH components for the automotive industry, and the operation of automobile dealerships in Malaysia. The Manufacturing business segment specialises in manufacturing NVH components such as headliners and engine outers which are incorporated into various parts of automobiles, including the ceiling, dashboard, hood and boot, as well as non-NVH components such as parcel trays and board assembly decks. The Dealership business comprises several 3S and 4S automobile dealerships for the sale of new automobiles with brands such as Ford, Honda, Hyundai, Mazda, Mitsubishi, Peugeot, and Proton. These Dealerships are owned and operated by MeGroup.

MANUFACTURING

DEALERSHIP

01 ANNUAL REPORT 2021

CHAIRMAN'S MESSAGE

Dear Shareholders,

I am pleased to present MeGroup Ltd.'s annual report for the financial year ended 31 March 2021 ("FY2021").

It was a unique and challenging year that we had to face. COVID-19 struck the global economy almost to a standstill. We were not spared, as the Malaysian government implemented several Movement Control Orders (MCO) to battle the pandemic and curb local infection rates. With every MCO issued, all non-essential businesses and operations had to halt, which meant our Manufacturing and Dealership businesses could not operate during those periods.

However, we persevered through, and achieved several positive developments.

Manufacturing

On top of obtaining new manufacturing projects from existing customers, we have also secured three new customers, all of which are globally renowned automotive brands. The new manufacturing contracts will see MeGroup produce and supply NVH components to these carmakers from calendar year 2021 until the end of each of the car model's production lifecycle.

Additionally, we began producing and supplying a mattress protection layer to a major mattress maker. Though small, this showcases our ability in leveraging on our capabilities and technical knowledge on insulation products, to successfully expand our product offering and customer base beyond the automotive sector.

In August 2020, we completed the move of our Mazda assembly plant from Batu Kawan in Pulau Pinang to Kulim Hi-tech Park in Kedah. The shift has allowed us to be closer to our customers and achieve some cost savings at the same time. We have also embarked on a green initiative and are in the midst of installing solar panels in our main manufacturing plant. By tapping on solar energy, we are effectively reducing our carbon footprint and overhead expenses. We are committed to manufacture components in a sustainable and environmentally friendly manner.

MR WONG CHEONG CHEE

Executive Chairman and CEO

"MOST RECENTLY, WE SECURED PROTON AS A NEW BRAND PRINCIPAL TO ADD TO OUR GROWING DEALERSHIP PORTFOLIO. THIS IS OUR FIRST PROTON DEALERSHIP OUTLET AND WE ARE EXPECTING IT TO COMMENCE OPERATIONS BY DECEMBER 2021. THIS LATEST AWARD INCREASES THE NUMBER OF BRANDS WE REPRESENT TO SEVEN, AND THE NUMBER OF DEALERSHIP OUTLETS TO 11"

MEGROUP LTD. 02

Dealership

In November 2020, we completed the acquisition of MJN Motors Sdn Bhd ("MJN Motors") and now hold 80% interest in the subsidiary. MJN Motors operates the Group's Honda dealerships in Cheras and Kuala Selangor, Malaysia.

Over the course of the year, our first Mitsubishi outlet commenced showroom operations in August 2020 and began offering after-sales services in April 2021. Through the success of our first Mitsubishi dealership, we were subsequently awarded operating rights for a second Mitsubishi outlet. Located at Bandar Bukit Raja, it is expected to commence operations in 1QFY2022.

Though construction activities were delayed due to the MCO, we are pleased to have finally completed construction of the new 3S facility for our Honda Kuala Selangor dealership outlet. Business operations have commenced, and with the new and bigger facility, we are now able to receive more customers for after-sales services, transforming it into a 'one-stop shop' for automobile retail and service centre.

Most recently, we secured Proton as a new brand principal to add to our growing Dealership portfolio. This is our first Proton Dealership outlet and we are expecting it to commence operations by December 2021. This latest award increases the number of

brands we represent to seven, and the number of dealership outlets to 11 under the Ford, Honda, Hyundai, Mazda, Mitsubishi, Peugeot and Proton brands.

Dividend

In appreciation of the support and faith our shareholders have in us, we declared an interim dividend of RM0.012 or 1.2 Sen, and a special dividend of RM0.008 or 0.8 Sen per ordinary share to all our shareholders for FY2021. The interim and special dividends have been distributed to shareholders on 30 June 2021.

Words of Appreciation

Despite the headwinds faced in the past year, we have remained resilient and profitable.

We would like to express our gratitude to the Board for their wise counsel, providing valued guidance to MeGroup as we navigate in the current challenging business environment. We would also like to welcome Mr Chong Kwea Seng to our Board as an Independent Non- Executive Director. With his prior working experiences at Sime Darby, MeGroup will continue to benefit from his contributions to our Board.

The MeGroup team has worked hard and will continue to push forward to grind through this difficult period. I believe in our creative and innovative team, and trust that they will

be able to steer the Company on the path of sustainable growth. We are always on the lookout for opportunities, be it within the automotive sector or outside it, to create recurring income streams for the Group.

We are unable to predict how long this pandemic will last and what its full impact will be on the Group, however, we are optimistic that the automotive sector will remain in demand as it is considered a necessity in Malaysia.

I would like to take this opportunity to extend my sincere appreciation to the Group's shareholders, as we would not have made it here without your trust in us. I would also like to thank our business partners and associates, professional advisers, and above all, the entire MeGroup team. Your dedication has not gone unnoticed, and together, we will be able to see through this pandemic.

Yours sincerely,

Wong Cheong Chee

Executive Chairman and CEO

03 ANNUAL REPORT 2021