Clarifications to The Edge Malaysia Article “YNH’s Auditor Issues Qualified Opinion On Financial Statements In Relation To JV, Turnkey Contracts” Dated 27 October 2023

In relation to the above-mentioned article, YNH Property Berhad (YNH) wishes to clarify that the qualified opinion issued by its external auditors is only limited to the joint venture (JV) and turnkey contracts for property development work.

It is important to note that the external auditor, namely Baker Tilly Monteiro Heng PLT, has given a true and fair view of the financial position of the Group and of the Company as well as its financial performance and cash flow for the 18-month financial period ended 30 June 2023.

As such, YNH wishes to highlight that its filing to Bursa Malaysia on 27 October 2023, entitled ‘Audit Report - Modified Opinion / Material Uncertainty Related To Going Concern: Qualified Opinion’ should be read as a modified opinion and not material uncertainty related to going concern. This distinction in critical to allay any possible misperception from our concerned shareholders.  

In a bid to provide further clarity, the qualified opinion issued by the Group’s external auditors was due to the lack of time for YNH to complete an independent review of the joint ventures and turnkey contracts. The independent review was carried out at the request of its external auditor to determine the possibility of related party transactions concerning joint ventures and turnkey contracts entered by the Group.

YNH has openly and willingly agreed to carry-out the independent review in order to resolve this compliance matter to the satisfaction of its auditors.

The request for an independent review by YNH’s external auditors was made following queries by the regulatory authorities for the sale of its landbank in Desa Sri Hartamas. YNH has already responded to all the queries made by the regulatory authorities and will continue to give its full cooperation to the authorities if any further inquiries to be raised in relation to this matter.

The disposal exercise of the said landbank in Desa Sri Hartamas is still on-going as all parties have agreed to extend the conditional period for three (3) months and the exercise is subject to approval from YNH’s shareholders at an extraordinary general meeting that is to be convened on a later date.

In relation to the resignation of two YNH independent and non-executive directors, namely, Ching Nye Mi @ Chieng Ngie Chay and Ding Ming Hea, we wish to draw attention to YNH’s filing on Bursa Malaysia dated 1 June 2023. The announcements on the Change in Boardroom have clearly stated that both independent non-executive directors have served the Board for more than 12 years and their resignation was in line with the mandatory 12 years tenure limit for Independent Director under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, which came into effect on 1 June 2023.

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