Lien Hoe’s independent auditors raise going concern doubts following FY2024 audit
Lien Hoe's board, in response, stated that it remains appropriate to prepare the financial statements on a going concern basis
KUALA LUMPUR (April 15): Lien Hoe Corp Bhd (KL:LIENHOE) announced that its audited accounts for the financial year ended Dec 31, 2024 (FY2024) raised a material uncertainty related to its ability to continue as a going concern, according to its independent auditors, UHY Malaysia PLT.
Despite the concern, UHY Malaysia issued an unmodified audit opinion.
The audit highlighted a net loss of RM8.56 million for FY2024, with current liabilities exceeding current assets by RM5.74 million. However, UHY Malaysia did not raise any key audit matters regarding the company’s financial statements.
Lien Hoe's board, in response, stated that it remains appropriate to prepare the financial statements on a going concern basis, citing several ongoing measures to address the financial uncertainty. These include introducing new hotel packages aimed at boosting occupancy rates and focusing on local tourism and the meetings, incentives, conventions, and exhibitions (MICE) market.
The group is also disposing of low-yielding land assets, engaging with banks for financing support, and receiving continued financial backing from its major shareholder.
According to Bloomberg data, Christine Holding Sdn Bhd holds a 59.24% stake in the company.
Lien Hoe has been reporting annual losses for 11 years straight, since 2014. It posted a net loss of RM8.56 million on RM28.93 million in revenue for FY2024. As of Dec 31, 2024, the group had RM1.77 million in cash and bank balances, and RM29.4 million in borrowings. Its accumulated losses total RM98.3 million.
Lien Hoe's share price closed unchanged at 22 sen on Tuesday, with a market capitalisation of RM73.1 million.