KUALA LUMPUR (Sept 26): Trading in the shares of Lambo Group Bhd (KL:LAMBO) will be suspended from Oct 4, following Bursa Malaysia’s rejection of the company’s application for a further extension of time to submit its regularisation plan.
The counter will be delisted on Oct 8, unless an appeal is submitted to the regulator by Oct 3, the information technology service provider said in a filing.
Lambo said it intends to submit an appeal to Bursa on the decision to delist its securities.
Bursa Securities rejected the company’s application for a 12-month extension until Aug 20, 2025, after it had missed the deadline of Aug 21, 2024.
Bursa said the rejection was due to the company having not demonstrated to the satisfaction of Bursa Securities any material development towards the finalisation and submission of the regularisation plan.
Lambo was classified as a Guidance Note 3 (GN3) company in Feb 2023, after its external auditors had expressed a disclaimer of opinion on the company’s consolidated audited financial statements for the 16-month period ended Sept 30, 2022.
CAS Malaysia PLT said, in its auditor’s report, that among the bases for the disclaimer of opinion was the inability to ascertain the accuracy, completeness and validity of the financial statements concerning Lambo’s subsidiary Fujian Accsoft Technology Development Co Ltd.
Fujian Accsoft was involved in software development, internet information services, enterprise management and consulting services.
CAS Malaysia said it was not able to gather sufficient appropriate audit evidence to verify Fujian Accsoft’s financials up to the date it was deregistered or wound up in China in May 2022.
China-based Fujian Accsoft, an indirect unit of Lambo, came under the spotlight in July 2022 when China’s Ministry of Finance said the company’s audited financial statements for 2016, 2017 and 2018 were falsified and a penalty was imposed on its auditor.
The winding up of the company resulted in the deconsolidation of Fujian Accsoft in Lambo’s financial statement from the beginning of the financial year June 1, 2021 and a loss on deregistration of RM3.96 million, which were included in the group’s income statement.
Lambo’s largest shareholder is Cheetah Holdings Bhd (KL:CHEETAH), with an 18.8% stake.
In December last year, Morgan Stanley & Co International plc ceased to be its substantial shareholder after disposing of its entire 12.26% stake.
Lambo executive director Koo Kien Yoon also ceased to be a substantial shareholder in March this year, having pared his stake to 3.8% from 7.04% previously.
Lambo's share price closed unchanged at 2.5 sen on Thursday for a market capitalisation of RM39 million.