Jocom Holdings Corp. 2025 Annual Report: Key Points and Investment Insights

By Financial Reporter

Corporate Overview & Structure

Jocom Holdings Corp. is a Nevada-incorporated company with business operations primarily in Malaysia. The company has two main subsidiaries:

• Jocom Holdings Corp. (Nevada, USA): Incorporated January 8, 2021. Principal activities are holding company functions.
• JHC Digital Sdn. Bhd. (Kuala Lumpur, Malaysia): Incorporated June 12, 2024, with 10,000 shares of RM1 each. Its business includes e-commerce, logistics, software consulting, and development.

The company presents its consolidated financial statements as “the Company” for Jocom Holdings Corp. and its subsidiaries.

Business Model & Strategic Initiatives

Jocom Holdings is positioning itself as a data-driven, technologically advanced e-commerce player, planning to integrate machine learning into its sales platform. This will enable the company to track user behaviors, predict customer needs, and boost sales and customer experience. The company also aims to differentiate itself as an environmentally and health-conscious brand—an approach not yet widely adopted among its competitors.

Financial Performance (Year Ended December 31, 2025)

• Revenue: The company reported no revenue for 2025, primarily due to a change in directors and company direction.
• Net Loss: Jocom Holdings reported a net loss of \$839,842, compared to a net profit of \$68,519 in 2024. The loss increase is attributed to costs related to new management, business restructuring, and a significant impairment of receivables and deposits totaling \$648,000.
• Liquidity & Capital Resources: The company is reliant on financing activities for working capital and operations. There were no cash flows provided by or used in investing activities for 2024 and 2025. The company does not have any credit facilities or access to bank credit.
• Outstanding Shares: As of December 31, 2025, there were 65,680,500 shares of Common Stock outstanding, held by 66 beneficial owners. The par value per share is \$0.0001.
• Equity Compensation Plan: Currently, there is no equity compensation plan in place.
• Stock Repurchases: No shares were repurchased during the year.

Trading & Market Information

• Market Listing: Common Stock is quoted on the OTC Market – OTCQB. The aggregate market value of voting and non-voting common stock held by non-affiliates as of June 30, 2025, was approximately \$12,602,990 based on an average bid/ask price of \$1.18.
• Penny Stock Status: The company’s stock may be classified as “penny stock,” with a market price below \$5.00. This subjects it to additional trading restrictions and suitability requirements, potentially limiting liquidity and investor ability to buy or sell shares.
• Transfer Agent: VStock Transfer, LLC, 18 Lafayette Place, Woodmere, NY 11598, +1 (212) 828-8436.

Corporate Governance & Internal Controls

• Internal Control Weaknesses: Management identified material weaknesses in internal control over financial reporting as of December 31, 2025, specifically:
  • Inadequate segregation of duties and effective risk assessment.
  • Insufficient written policies and procedures for accounting and financial reporting with respect to US GAAP and SEC guidelines.

  These weaknesses resulted in the company’s disclosure controls and procedures being not effective.

• Audit Committee: The company does not have a formal audit committee, citing cost and developmental stage considerations. The Board of Directors performs audit committee functions.
• Code of Ethics: No formal written code of business conduct and ethics has been adopted, as it is not required at this stage.
• Executive Compensation: The CEO and CFO received total compensation of \$55,509.68 in 2025. There are no pension, retirement, or similar benefit arrangements for directors or executive officers. The Board may grant incentive bonuses at its discretion, though none are currently in place.

Legal Proceedings & Risks

• No Legal Proceedings: The company is not engaged in any material, active, or pending legal proceedings and is not aware of any proceedings involving its directors, officers, affiliates, or major shareholders.
• Risk Factors: As a smaller reporting company, Jocom Holdings is not required to provide detailed risk factor disclosures, though it highlights general risks such as reliance on cash flow, economic and regulatory changes, actions by competitors and government authorities, business strategy shifts, and the need for additional capital.

Other Shareholder Information

• Dividend Policy: There are currently no plans to pay dividends. Any future dividend payments are at the discretion of the Board of Directors.
• Shareholder Communication: Shareholders may communicate with the Board of Directors via written request to CEO Sew Wen Chean at the company’s official address.

Key Price-Sensitive Issues & Potential Share Price Impact

• Zero Revenue & Large Net Loss: The absence of revenue and the substantial net loss for 2025, primarily due to management and strategic restructuring, may significantly affect investor sentiment and share value.
• Material Weaknesses in Internal Controls: The identification of ongoing material weaknesses in financial reporting controls is a critical governance risk and may impact market confidence.
• Liquidity Reliant on Financing: The company’s dependence on financing to fund operations, and lack of bank credit or credit facilities, indicates elevated financial risk.
• Corporate Restructuring: The change in company direction and new management, combined with a significant impairment expense, signals a business transition period that may affect future performance.
• Regulatory Risks: “Penny stock” classification and lack of an audit committee or code of ethics may affect investor confidence and limit institutional investment.

Conclusion

Investors should carefully consider the company’s current lack of revenue, recent substantial net loss, material internal control weaknesses, dependency on external financing, and the risks associated with “penny stock” status. These factors are likely to influence the company’s share price and market perception moving forward.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information herein is based on the company’s 2025 Annual Report and is subject to change without notice.

View JOCOM HOLDINGS CORP. Historical chart here