KUALA LUMPUR (April 16): Rimbunan Sawit Bhd (KL:RSAWIT) said on Thursday that its external auditor has issued an unmodified audit opinion with a material uncertainty related to going concern for the financial year ended Dec 31, 2025.

In a filing with Bursa Malaysia on Wednesday, the plantation group said Crowe Malaysia PLT noted that the group's current liabilities exceeded current assets by RM119.9 million as at Dec 31.

“This condition indicates that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” the auditor said in its report.

An unmodified opinion indicates that the financial statements comply with applicable accounting standards, despite the highlighted uncertainty.

In addition, the auditor flagged impairment of the group’s oil palm plantation assets as a key audit matter. The assets had a carrying amount of RM534.1 million as at Dec 31, 2025, with no impairment recognised during the year.

However, the auditor noted that certain plantations recorded losses, indicating potential impairment. It said assessing the recoverable amount of these assets involves significant judgement and was therefore an area of audit focus.

Rimbunan Sawit is the plantation arm of Sarawak-based conglomerate Rimbunan Hijau Group, which was founded by the late tycoon Tan Sri Tiong Hiew King.

Notably, this is the fifth consecutive year in which Rimbunan Sawit’s auditors have raised a material uncertainty regarding the group’s going concern status.

In response, Rimbunan Sawit said it recorded earnings before interest, tax, depreciation and amortisation (Ebitda) for FY2025 and expects to generate positive operating cash flows in the next financial year.

The group also has access to unutilised banking facilities and has not defaulted on any obligations, although some short-term facilities are subject to renewal.

Nevertheless, the group said its earnings and liquidity remain exposed to external risks, including volatile crude palm oil prices, weather- and labour-related production fluctuations, and changes in input costs, while continued access to short-term facilities is not fully within its control.

“The financial statements were prepared on a going concern basis as management believes the group will be able to continue operating and meet its obligations as they fall due,” it said.

Shares in Rimbunan Sawit rose half a sen or 2.8% to 18.5 sen on Thursday, valuing the group at RM377.7 million.