KUALA LUMPUR (Aug 28): Kawan Food Bhd (KL:KAWAN) said on Friday that it has appointed Grant Thornton Malaysia PLT as its external auditor for the financial year ending Dec 31, 2026 (FY2026).

The move came after a majority of the frozen food manufacturer's shareholders rejected the reappointment of the previous auditor, RKT & Associates PLT (formerly known as RSM Malaysia PLT), at the company’s annual general meeting (AGM) held in June.

“The appointment also marks an important step in ensuring continuity in our audit and financial reporting processes as we continue to execute our growth strategy,” Kawan Food’s chairman emeritus and acting group managing director Gan Thiam Chai said in a bourse filing.

At the AGM in June, 47 shareholders, representing 99.23% of the votes cast, rejected the resolution seeking the reappointment of RSM Malaysia, which had served as Kawan Food's external auditor since FY2019.

In its latest financial results, the company posted a second quarter net loss of RM5.66 million for the second quarter ended June 30, 2026, a sharp reversal from a net profit of RM3.3 million a year earlier, mainly due to weaker sales demand and pricing adjustments. Revenue declined 15.6% to RM50.8 million from RM60.2 million.

Shares of Kawan Food closed one sen or 1.35% lower at 73 sen on Friday, giving the company a market capitalisation of  RM265.7 million. Year to date, the stock has fallen 22.34%.