Auditors flag going concern risk at Lien Hoe


PETALING JAYA: Lien Hoe Corp Bhd has received an unmodified audit opinion for its financial year ended Dec 31, 2025, as its auditors flagged a material uncertainty related to the group’s ability to continue as a going concern.

In a filing with Bursa Malaysia, the company's external auditors, UHY Malaysia PLT, highlighted concerns stemming from its financial position and recent performance.

According to the auditors’ report, the group recorded a net loss of RM9.61mil for the financial year 2025 (FY25), while its current liabilities exceeded current assets by RM19.67mil.

“These events or conditions (among others) indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern,” the auditors said, adding that their opinion remains unmodified.

The auditors also noted there were no key audit matters identified for the financial year under review.

Lien Hoe’s board said the preparation of its financial statements on a going concern basis remains appropriate.

The company outlined several measures aimed at addressing the uncertainty and strengthening its financial position.

Among these, the company said it is focusing on improving performance in its hotel segment by introducing more competitive and targeted offerings.

This includes promotional packages and marketing campaigns aimed at boosting occupancy rates, particularly by tapping into domestic tourism and the meetings, incentives, conventions and exhibitions (MICE) segment.

In addition, Lien Hoe plans to dispose of low-yielding or non-strategic land assets as part of efforts to unlock value and improve liquidity.

The company is also continuing its engagement with financial institutions to secure banking facilities and support its operational needs.

Also its major shareholder has committed to providing ongoing financial backing to the group.

“The directors are working on achieving the above plans and activities to enable the group to continue as a going concern,” the company said.

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