KUALA LUMPUR (Nov 2): Handal Energy Bhd (KL:HANDAL) has been issued a show-cause notice by Bursa Malaysia to explain why it should not be delisted after failing to submit its annual report more than six months past the April 30 deadline.
In a Bursa Malaysia filing on Monday, the oil and gas services provider said it is preparing a written explanation to be submitted by the Nov 10 deadline.
Handal Energy has not released its annual report and audited financial statements for the financial period ended Dec 31,2025.
The group said that if Bursa Malaysia decides to delist the company, its securities will be removed from the exchange withing seven market days unless an appeal is lodged within the prescribed timeframe.
If Bursa decides against delisting, the company may still face other regulatory actions or penalties.
The company has repeatedly postponed the release of its annual report, most recently busting its pledge of releasing it by Oct 28.
On Oct 20, Handal Energy announced the resignation of its external auditor, SBY Partners PLT, after the board expressed dissatisfaction with the progress of the audit and indicated its intention to appoint a replacement.
The company had previously identified the audit of its 30%-owned subsidiary, Tenzin Heavy Machinery (M) Sdn Bhd, as a major reason for the delay. Outstanding audit matters included cash flow projections, asset impairment assessments and litigation-related liabilities.
It has been loss-making for 13 consecutive quarters. For the second quarter ended June 30, 2026, it posted a net loss of RM3.13 million on revenue of just RM53,000.
Handal Energy's shares have been suspended from trading since May 11 after it missed the original submission deadline.
The stock last traded at one sen, valuing the company at approximately RM4.5 million.