KUALA LUMPUR (Sept 9): Bursa Malaysia Securities has publicly reprimanded Techna-X Bhd (KL:TECHNAX) for the late issuance of its 2025 annual report and inaccuracies in its previously announced unaudited financial results.

The reprimand comes just days after the regulator separately questioned Techna-X over contradictory disclosures surrounding its proposed RM45 million disposal of a 50% stake in Hong Kong-based battery maker HK Aerospace Beidou New Energy Technology Co Ltd (HKAB).

In a statement on Wednesday, Bursa Securities said Techna-X failed to issue its annual report for the 18-month financial period ended Dec 31, 2025 by the April 30 deadline.

The company eventually issued the annual report on May 8, five market days late. Bursa Securities said the delay was mainly due to Techna-X failing to maintain or provide the necessary information, documents and accounting records to its external auditors in time to complete the audit.

The stock exchange regulator also found that Techna-X failed to ensure that its sixth quarterly report for the financial period, announced on Feb 27, took into account adjustments that were subsequently disclosed in May.

Techna-X had reported an unaudited loss attributable to owners of RM23.58 million in the quarterly report, compared with an audited loss of RM29.26 million in its eventual financial statements.

The RM5.68 million difference represented a deviation of 24.1%.

Techna-X previously attributed the difference to additional audit adjustments, including impairment losses on other receivables, amounts owing from associates and intangible assets, as well as accounting adjustments arising from the waiver of debts owed to directors of a subsidiary.

However, Bursa Securities said the circumstances giving rise to the adjustments had already existed when the quarterly report was prepared.

As such, the regulator said Techna-X could not rely on the finalisation of the audit or recommendations from its external auditors to justify its failure to reflect the adjustments and ensure that the quarterly report was accurate when issued.

Bursa Securities also directed Techna-X to have its external auditors conduct limited reviews of its quarterly reports for four quarters, beginning no later than the quarter ending Sept 30, 2026.

The company must also ensure its directors and relevant personnel undergo training on compliance with the Main Market Listing Requirements, while its board must review the adequacy of its finance and accounting resources as well as its financial reporting policies and procedures.

Bursa Securities said it has not found any Techna-X director to have caused or permitted the breaches, but reminded the board of its responsibility to ensure compliance with listing requirements.

The reprimand follows Bursa Securities query earlier this week over Techna-X's proposed RM45 million cash disposal of its 50% stake in HKAB to Tess Global Sdn Bhd.

The regulator had questioned how Techna-X could enter into the Sept 3 disposal agreement after its audited financial statements had indicated that it had no effective ownership or voting interest in HKAB following an earlier agreement in December 2025 to sell the same 100,000 shares.

Techna-X subsequently clarified that the earlier sale had not been completed after the purchaser defaulted, and that the agreement was terminated on July 10. It said legal and beneficial ownership of the shares therefore remained with Techna-X.

The company also said the lack of effective ownership disclosed in its audited accounts reflected the company's accounting treatment of HKAB and did not mean that Techna-X had ceased to legally own the shares.

The proposed RM45 million disposal consideration is significantly larger than Techna-X's current market capitalisation. The company has said it intends to obtain an independent valuation of HKAB.

Shares of Techna-X closed unchanged at 2.5 sen on Wednesday, valuing the company at RM7.3 million.