We refer to the Company’s First Announcement dated 30 April 2023 and the subsequent monthly announcements dated 30 May 2023, 30 June 2023, 31 July 2023, 28 August 2023, 29 September 2023, 31 October 2023, 30 November 2023, 29 December 2023, 30 January 2024, 29 February 2024, 29 March 2024, 29 April 2024, 2 May 2024, 5 June 2024, 28 June 2024, 30 July 2024, 30 August 2024, 30 September 2024, 25 October 2024, 29 October 2024, 18 November 2024, 28 November 2024, 27 December 2024, 28 January 2025 and 25 February 2025 made by the Company in relation to the classification of the Company as an affected listed issuer under PN17. 

Unless otherwise defined, the definitions set out in the First Announcement shall apply therein. 

Pursuant to paragraph 4.1 of PN17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of the Company wishes to announce that the Company is in the midst of formulating a regularisation plan to address its financial condition (“Regularisation Plan”). 

The Company wishes to highlight that in relation to disclaimer of opinion disclosed in the Independent Auditors’ Report for the Financial Year Ended 31 December 2023, the Company has taken necessary steps as stated below:-

Material uncertainty as regards going concern

(a) Practice Note 17 (“PN 17”)

As announced on 18 November 2024, Bursa Securities had, through its letter dated 15 November 2024, granted a further extension of time of six (6) months up to 30 April 2025 for the Company to submit its regularisation plan to the relevant regulatory authorities for approval. The Company is actively addressing the ongoing PN17 issues and is making significant progress in formulating a comprehensive regularisation plan to enhance its financial position and long-term sustainability. As part of this effort, the Company is actively engaging with professional advisors to ensure a strategic and effective turnaround.

(b) Trade receivables

The Company has been actively pursuing the recovery of the awarded sum of RM252.8 million. Significant efforts have been made, including collaboration with solicitors and relevant authorities in both Abu Dhabi, United Arab Emirates, and Malaysia. Diplomatic channels have also been engaged in an attempt to expedite the recovery process.

Despite these ongoing efforts, the Company has assessed the recoverability of the awarded sum and determined that there is significant uncertainty regarding the timing and certainty of collection. Given the prolonged nature of the recovery process and the inherent challenges involved, the Company has made the decision to fully impair the RM252.8 million in the Financial Year Ended 31 December 2024.

This impairment reflects a prudent and conservative approach in line with applicable financial reporting standards, ensuring that the financial statements provide a fair and accurate representation of the Company’s financial position. Nevertheless, the Company remains committed to exhausting all available avenues for recovery and will continue to make new efforts to recover the arbitration award.

(c) Borrowings

The Company has complied with the monthly repayment schedule per the approved rescheduling agreement dated 15 December 2023. The Company is monitoring its cash flow to ensure that all obligations are met promptly.

(d) Use of the going concern assumption

The Company is of the opinion that the Proposed Regularisation Plan once formulated and implemented after obtaining the approval from relevant authorities will enable the Company to generate sufficient cash flows to meet its obligations and continue sustainable and viable operations.

There was no material event subsequent to the end of the Financial Year Ended 31 December 2024.

With the extension of time granted by Bursa Securities until 30 April 2025, the Company has approximately two (2) months to submit its regularisation plan to Bursa Securities for approval to implement the same.

The Company will make the necessary announcement(s) should there be any material developments on its regularisation plan.

This announcement is dated 28 February 2025.