This article first appeared in The Edge Malaysia Weekly on April 14, 2025 - April 20, 2025

The special independent review of YNH Property Bhd’s (KL:YNHPROP) RM1.1 billion worth of joint ventures (JVs) and turnkey contracts has been finally completed. The completion date had been delayed several times.

The independent review, which started in June last year, was conducted by UHY Advisory (KL) Sdn Bhd after YNH’s former auditor flagged the fact that the company’s JVs and turnkey projects were listed as inventories valued at RM1.1 billion on the balance sheet.

YNH said UHY’s key findings included the fact that two of the JV companies shared a common director and shareholder, who was also a former shareholder and employee of YNH. The announcement did not disclose the name of the companies or the individuals involved.

UHY suggested that the turnkey contracts with certain JV companies could be considered related-party transactions (RPTs) under Malaysian Financial Reporting Standard 124 due to shared ownership or control.

The concentration of power in a small group of individuals across several companies warrants careful scrutiny to ensure that all transactions are fair, properly disclosed and legally compliant, says UHY in the review.

The question of accountability thus arises.

It is worth noting that the company reshuffled its board members last December when the independent review was ongoing. Datuk Yu Kuan Huat was redesignated as the executive chairman to replace his brother Datuk Dr Yu Kuan Chon — YNH’s single largest shareholder with a 24.41% stake. Kuan Huat, who holds a 4.48% stake, was previously the managing director. Kuan Chon, better known as Dr Yu, is now an executive director, along with his son Yu Jian Loong, 24, and his nephew Yu Kai Leun, 34 (son of Kuan Huat).

Apart from members of the Yu family, YNH also appointed Koh Liong Boon as independent non-executive director and Loh Sah Hooi as non-independent non-executive director in December. Lee Zhi Yan, 30, was reappointed as independent non-executive director, making her the sole female representative in YNH, a day after her re-election was rejected at the annual general meeting at the time.

YNH’s board consists of nine members, of whom four are independent directors. Another two independent directors are Khong Kam Hou and Ching Lee Fong, both of whom were appointed in March 2023.

All said and done, how will reshuffling the board help improve YNH’s commitment to refining “governance structures and enhancing transparency”? Furthermore, does YNH need to make impairmement on its inventories that are made up of JVs and turnkey projects which its former auditor flagged? Its inventories amounted to RM858.9 million as at end-2024.

Are the authorities looking into the insights provided by UHY?

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