KUALA LUMPUR (Jan 13): Logistics service provider Xin Hwa Holdings Bhd's (KL:XINHWA) cargo transport unit has resumed normal operations after the suspension of its goods vehicle operator licence, which was in place for over two months since November last year, was lifted.
The company’s wholly owned Xin Hwa Trading & Transport Sdn Bhd (XHTT) is now fully operational under its reinstated licence, Xin Hwa said in a filing with Bursa Malaysia on Monday.
The licence was initially suspended for three months until Feb 10, but the period was shortened following the company's appeal to the Johor Bahru Land Public Transport Agency (Apad). “The company has not received any further enquiries or requests for clarification from the authorities in relation to the suspension. This development confirms the conclusion of the matter, and XHTT can now proceed with its normal operations,” the company said.
XHTT’s licence was suspended by Apad due to non-compliance with safety requirements, specifically the failure to ensure that all goods vehicles were maintained in a condition deemed safe for use by the director general of Road Transport. During the suspension period, XHTT was barred from operating or providing services using vehicles covered under its operator licence.
Xin Hwa previously estimated that the suspension would result in a financial impact of 15% to 20% of the group’s monthly revenue. If the full three-month suspension had been enforced, the group’s revenue for the financial year would have been adversely affected by approximately 4% to 5%.
For the first six months of its financial year ending Sept 30, 2025 (1HFY2025), Xin Hwa's net losses stood at RM1.08 million, down from RM7.27 million recorded over the same period in 1HFY2024, as revenue rose 11% to RM76.51 million from RM68.77 million on improved sales. The bottomline was also lifted by lower operating expenses, and lower depreciation and salaries expenses, as well as the disposal gain of property, plant and equipment.
Shares in Xin Hwa closed unchanged at 19 sen on Monday, giving the company a market capitalisation of RM48.58 million.