KUALA LUMPUR (July 28): Smile-Link Healthcare Global Bhd (KL:SMILE) has been publicly reprimanded after the dental services firm failed to issue its annual audited accounts within deadline.

The company breached Rule 6.13 of the LEAP Market listing requirements after announcing its audited financial statements and relevant reports six months past the deadline, according to a statement from Bursa Malaysia.

The exchange directed Smile-Link’s board to review and assess the adequacy and competency of its finance and accounting resources, as well as the effectiveness of its policies and procedures in financial reporting.

A company listed on the LEAP Market, in which trading is available only to sophisticated investors, must announce its annual audited financial statements together with the auditors’ and directors’ reports within four months from its financial year end.

Smile-Link only announced its audited statements for the 18-month period ended June 30, 2024 on April 30, 2025, way past the deadline on or before Oct 31, 2024.

Smile-Link’s delay stemmed from unresolved issues and disputes with its former external auditors, HLB Ler Lum Chew, culminating in the latter’s removal at an extraordinary general meeting on Jan 20, 2025.

Still, Bursa said this did not justify the delay, stressing that all listed companies are obliged to manage engagements with auditors to ensure timely compliance.

The company’s largest shareholder, Smile Link Resources (M) Sdn Bhd, holding a 46.36% stake, had in December 2024 called for an EGM to remove HLB Ler Lum Chew, citing significant delays in the release of the audited financial statements.

Smile-Link alleged that the auditor withheld results due to an outstanding audit fee of RM180,000, which it could not settle.

In January this year, shareholders approved resolutions to remove the auditor, with the company subsequently seeking a replacement to finalise its accounts.

HLB Ler Lum Chew, in a letter sighted by The Edge in December 2024, had rejected claims of wrongdoing, adding that it would pursue legal recourse over what it termed as “untrue” statements by the company.

Trading in Smile-Link’s shares was suspended on Nov 8, 2024, for non-compliance with reporting requirements, with Bursa warning of possible delisting if statements were not submitted within six months.

The exchange stressed that timely submission of financial statements is a “fundamental obligation” of listed companies to ensure an orderly and fair market.

Smile-Link, which operates 56 dental clinics and one dental centre across eight states, reported a net loss of RM4.17 million in the six months ended June 2024, contributing to a cumulative 18-month net loss of RM4.04 million on revenue of RM49.66 million.

Shares of Smile-Link were last traded at 13 sen, valuing the company at RM32.8 million.