KUALA LUMPUR (Aug 20): Bursa Malaysia has publicly reprimanded property developer Hua Yang Bhd (KL:HUAYANG) for breaching listing rules governing the purchase of its own shares, after the company acquired 4.48 million shares from a shareholder through a direct business transaction instead of the market.

Hua Yang bought the shares for RM876,515.98 or 19.5 sen each on April 22, contravening paragraph 12.04 of Bursa’s Main Market listing requirements, which requires share buybacks to be conducted on the market of the exchange.

In a bourse filing on Thursday, Hua Yang said the reprimand was imposed after Bursa completed due process and considered the facts and circumstances of the case, including the materiality of the breach.

While Bursa did not find that any of Hua Yang’s directors had caused or permitted the breach, it said directors have a duty to maintain appropriate standards of responsibility and accountability in ensuring compliance with the Main Market listing requirements.

The directors at the time were chairman Tan Sri Dr Ting Chew Peh, chief executive officer Ho Wen Yan and non-executive directors Tengku Datuk Rahimah Al-Marhum Mahmud, Choo Seng Choon, Chew Hoe Soon and Ho Wen Fan.

Bursa said the requirement was fundamental to ensuring that share buybacks are carried out in an open and transparent manner and subject to the safeguards and parameters under Chapter 12 of the listing rules. The rules are also intended to prevent selective share buybacks or preferential treatment of specific shareholders, it said.

Under paragraph 12.26(2) of the Main Market listing requirements, a listed company may purchase odd-lot shares — securities comprising fewer than 100 units — through a direct business transaction.

However, the entire 4.48 million-share block bought by Hua Yang did not qualify as an odd lot and therefore should have been acquired through the market, Bursa said.

Hua Yang reported a net loss of RM4.58 million for the financial year ended March 31, 2026, compared to a net profit of RM6.57 million a year earlier. Revenue fell 39% to RM64.02 million from RM104.56 million.

The company attributed the weaker performance to fewer ongoing projects, delays in new launches pending regulatory approvals and market timing, as well as compressed margins resulting from lower economies of scale and sustained operating costs.

Hua Yang shares closed unchanged at 18 sen on Thursday, valuing the company at RM79.2 million. The stock has declined 18.2% this year.