KUALA LUMPUR (Nov 5): Logistics service firm Xin Hwa Holdings Bhd (KL:XINHWA) said on Tuesday its cargo transport unit’s licence to transport goods has been suspended by authorities, which it expects to adversely impact its operations.

The Johor Bahru Land Public Transport Agency (Apad) suspended the licence of its wholly owned subsidiary, Xin Hwa Trading & Transport Sdn Bhd (XHTT), due to its failure to comply with safety requirements, specifically in ensuring that all goods vehicles under its operation were maintained in a condition deemed safe for use by the Director General of Road Transport.

“The suspension will take effect from Nov 13, 2024, to Feb 10, 2025, or until XHTT achieves full compliance with the Code of Practice for Industrial Safety (ICOP-Keselamatan),” the group said.

XHTT will not be permitted to operate or provide any services using vehicles covered under the terms of its operator licence during the suspension period.

“The company acknowledges that the suspension would have an adverse impact on its operations. In response, the company is taking immediate corrective actions to ensure full compliance with the ICOP-Keselamatan,” the group added

XHTT intends to submit a formal written appeal regarding the suspension, which it hopes to be lifted as soon as possible.

Shares in Xin Hwa remained unchanged at 18 sen on Tuesday, valuing the company at RM47.3 million. Year-to-date, the stock has dropped seven sen or 26%.