YNH Property expects independent review of JV and turnkey contracts to be completed by Feb 15

• The property developer informed Bursa Malaysia that UHY is in the final stages of completing the assessment, with the remaining pending items being cheque images from the bank. The company did not provide further details.

KUALA LUMPUR (Jan 27): YNH Property Bhd (KL:YNHPROP) announced on Monday that the independent review of its joint venture (JV) and turnkey contracts, conducted by Messrs UHY, is expected to be completed and issued by Feb 15, 2025.

The property developer informed Bursa Malaysia that UHY is in the final stages of completing the assessment, with the remaining pending items being cheque images from the bank. The company did not provide further details.

“The company is closely monitoring the progress, and shall release further announcements if there are any significant developments,” it added.

YNH had appointed UHY in June 2024 to conduct an independent review of certain JV and turnkey contracts undertaken by its wholly owned unit, Kar Sin Bhd.

The move followed a qualified opinion issued by its former statutory auditor, Baker Tilly Monteiro Heng PLT, regarding payments totalling RM1.1 billion related to these contracts in the 18 months ended June 30, 2023.

At the time, Baker Tilly refused reappointment as YNH’s external auditor and requested YNH to conduct a special review, following investigations by regulatory authorities regarding JV and turnkey contracts signed for development work with JV parties or landowners.

Later, its subsequent external auditor Morison LC PLT, who replaced Baker Tilly, also said there was insufficient evidence for certain ventures and contracts when reviewing its financial statements for the year ended June 30, 2024 (FY2024).

Morison noted that certain turnkey contracts were terminated or deemed incomplete, leading to the reclassification of RM66.88 million from inventories to other receivables, with the remaining RM1.03 billion recorded as inventories.

YNH initially estimated that the review by UHY would cost RM370,000 and take three months to complete. However, delays occurred due to “strained resources”, with the company attributing the setback to its finance team’s focus on meeting the 2024 audit reporting deadline in October.

Last week, YNH announced that it is selling a two-storey shopping mall, AEON Mall Seri Manjung in Perak, to Sunway Real Estate Investment Trust (KL:SUNREIT) for RM138 million. The sale is expected to be completed within six months.

Shares of YNH were trading down 1.5 sen or 3.03% at 48 sen on Monday, valuing the group at RM260 million. Over the past year, the counter has depreciated over 45%.

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