Cymao clarifies won’t be classified as PN17 company

  • Corporate News
  • Thursday, 16 Jul 2020

The wood-based product maker won't be classified as a PN17 company due to relief measures that would be in effect from April 17,2020 to June 30,2021. (File pic shows a Cymao timber processing factory)

PETALING JAYA: Loss-making Cymao Holdings Bhd, which has triggered the Practice Note 17 (PN17) criteria after its external auditors raised doubts over the group’s going concern, clarified that it will not be classified as a PN17 company.

The wood-based product maker said that it was saved from slipping into PN17 status, thanks to Bursa Malaysia’s PN17 relief measures that would be in effect from April 17,2020 to June 30,2021.

Cymao’s external auditors, Messrs PKF, have issued an unqualified audit opinion with indication on material uncertainty relating to going concern in respect to the group’s audited financial statements for the financial year ending Dec 31,2019 (FY19).

The audit opinion also pointed out that Cymao’s shareholders’ equity on a consolidated basis is 50% or less of its share capital excluding treasury shares as at March 31.

“For the avoidance of doubt, Cymao will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to Paragraph 8.04 and PN17 of the Main Listing Requirement (LR) for a period of 12 months from the date of this announcement.

“Cymao will re-assess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main LR upon the expiry of the 12 months from the date of this announcement, ” it said in a filing with Bursa Malaysia.

For context, the PN17 relief measures were introduced to assist listed entities that were affected by the Covid-19 outbreak.

In another announcement, Cymao said there is a deviation of more than 10% between the unaudited financial results announced on Feb 27 and its unaudited financial statements for FY19.

This was in relation to the group’s net loss after tax of RM11.10mil in the audited financial statement as compared to RM4.68mil as announced in the unaudited financial results.

“The variance of more than 10% was due to the impairment of property, plant and equipment (PPE) of RM6.7mil being recognised in the 2019 audited financial statements. The said impairment of PPE was not reflected in the fourth quarter of FY19 as the auditors’ assessment was based on value in use calculations.

“However, based on a valuation report which was drawn up after the announcement of the fourth quarter of FY19 results, the company reflected the impairment of RM6.7mil in the 2019 audited financial statement, which explains the deviation of 10% between the profit or loss after tax and non-controlling interest stated in the quarter and the 2019 audited financial statement, ” it said.

It is worth noting that Cymao was temporarily suspended earlier between 9.47am to 2.30pm yesterday, pending the announcements.

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