KUALA LUMPUR (May 4): Bursa Malaysia has asked GIIB Holdings Bhd (KL:GIIB) to explain the sudden sharp rise in its share price which jumped as much as 50% in morning trade.
The stock rose to 16.5 sen before easing to close at 16 sen on Monday, still up about 45.45% and at a more than four-year high. Some 56.8 million shares changed hands. It was the fifth most actively traded stock on the exchange.
The regulator issued an unusual market query earlier on Monday, seeking information on whether there are any corporate developments, rumours, reports, or other possible explanations for the trading activity in the rubber products manufacturer and trader, tire retreading operator, rubber trading, and property development company.
Last Thursday, the company’s external auditor, Baker Tilly Monteiro Heng PLT, issued a qualified opinion on its financial statements for the year ended Dec 31, 2025, and highlighted a material uncertainty about the company’s ability to continue operating, otherwise known as going concern.
The company had concluded that it no longer controls glove manufacturing subsidiary GIIB Healthcare Products Sdn Bhd (GHP) and removed it from its consolidated accounts, resulting in a one-off gain of RM17.6 million. GHP is now accounted for as an associate, while receivables from it remain recorded in the books. The group and the company reviewed how much of the money owed by GHP can be recovered. They assessed recoverability based on the estimated value of GHP’s assets and recorded impairment losses of RM17.7 million (group) and RM9.8 million (company) in their financial statements. The directors believe this impairment is adequate and expect the remaining amounts owed to still be recoverable.
The qualified opinion arose because the auditors could not verify the deconsolidation of GHP and the recoverability of amounts owed to the group, meaning they were unable to determine whether any adjustments to the financial statements were required.
The auditors also highlighted that the company and its group made net losses of about RM24.3 million and RM27.0 million, and their short-term liabilities exceed their assets. The group also had negative operating cash flow of RM9.2 million, meaning it is spending more cash than it generates. It said this indicated that a material uncertainty exists in the company’s ability to continue operations.