KUALA LUMPUR (Oct 28): Kanger International Bhd's (KL:KANGER) trading suspension looms after Bursa Malaysia Securities rejected its request for more time to issue its interim audited financial statements.
In a bourse filing on Wednesday, Kanger said it had sought an extension until Dec 31 to issue the statements for the 21-month financial period from Oct 1, 2024 to June 30, 2026, from the original Oct 31 deadline.
The delay stems from the need for newly appointed auditor Morison LC PLT to complete the examination of Kanger's books. Morison was only appointed on Sept 4 after the original auditor, SBY Partners PLT, resigned.
Kanger said its trading securities would be suspended if it failed to issue the interim audited financial statements within five market days after the deadline, which is Nov 6.
As Nov 9 is a public holiday in conjunction with Deepavali, the suspension is scheduled to take effect at 9am on Nov 10, unless otherwise determined by Bursa Securities.
Kanger is the second company this week to face a potential trading suspension from Nov 10, after HB Global Ltd said it expected to miss the Oct 30 deadline to issue its annual report following the withdrawal of its external auditor and the rejection of its appeal to change its financial year end.
Audit completion targeted by Dec 31
Kanger said its management and finance personnel would continue working closely with Morison to provide the accounting records, financial information and supporting documents needed to complete the audit.
The company will also prioritise resolving outstanding audit queries and matters identified by Morison, while monitoring progress and coordinating with the auditor to complete the remaining audit procedures and clearance processes.
The board will continue to monitor the audit timeline and inform Bursa Securities and shareholders of material developments in accordance with the ACE Market Listing Requirements, it said.
Kanger added that it had continued to announce its unaudited quarterly financial results in line with reporting requirements, providing shareholders and investors with updates on the group's financial performance.
Based on Morison's written assessment dated Oct 8, the audit is tentatively expected to be completed by Dec 31, said Kanger.
“The company will endeavour to expedite the audit process and issue the Interim AFS earlier, where practicable,” it said, adding that it would make further announcements on material developments concerning the audit.
Shares of Kanger closed unchanged at 1.5 sen on Wednesday, giving it a market capitalisation of RM15.3 million.