Bintai Kinden Corporation Berhad (“BKCB” or the “Company”; Bursa: BINTAI, 6998), a mechanical and electrical (“M&E”) engineering services specialist, construction, medical device manufacturer and facilities operator, today announced that its audited financial statements for the financial year ended 31 March 2025 (“FY2025”) have been deemed true and fair in all material respects by its external auditors, HLB Ler Lum Chew PLT, despite a technical qualification related to prior-year figures.
The technical qualification stems from the auditors’ inability to obtain sufficient evidence regarding opening balances for liabilities, trade receivables, and contract assets from FY2024.
As a result, the auditors could not determine whether adjustments were necessary to FY2025’s profit or loss and retained earnings. Crucially, the qualification does not relate to FY2025 transactions, and the auditors confirmed the financial statements otherwise present a true and fair view of the Group’s current financial position.
BKCB reiterated that the issue raised pertains only to legacy balances and does not reflect any material misstatements relating to FY2025’s accounts. The Group has since undertaken corrective measures to enhance financial transparency and accountability.
For FY2025, BKCB recorded revenue of RM25.29 million, down 31.30% from RM36.79 million in FY2024. The decline was largely due to the termination of ten contracts in the M&E segment last year.
While several new projects were secured during FY2025, most remained in early mobilisation stages at year-end, limiting revenue recognition.
The Group reported a loss before tax of RM31.97 million, compared to a profit before tax of RM5.17 million in the prior year. This was mainly driven by reduced revenue and several one-off items. BKCB remains focused on operational recovery, cost rationalisation, and rebuilding its order book to return to profitability.
Several significant non-recurring items were recognised during the year:
- Expected credit loss provisions of RM3.65 million, in line with prudent risk management practices.
- Reversal of RM2.40 million in profit guarantee provisions, due to uncertainty over the recoverability of escrow shares.
- Share option charge of RM6.94 million related to share options granted to a Director, as disclosed in the shareholders’ circular dated 28 January 2025.
- Back-charges provision of RM18.71 million, arising from legacy contract claims—this one-off adjustment followed extensive internal review.
- Professional fees of RM2.25 million, incurred in preparing and submitting the Group’s Regularisation Plan.
Despite the reported loss, the Group’s financial position has strengthened compared to FY2024. As at 31 March 2025, BKCB recorded a net current asset position of RM9.11 million.
This improvement was primarily driven by proactive financial measures, including the successful issuance of private placement shares, restructuring of bank facilities, and other strategic cash flow management initiatives.
Datuk Tay Chor Han, Managing Director cum CEO of BKCB said,
“While the audit qualification reflects a technical issue relating to past records, it does not take away from the progress we’ve made this year. Our focus remains on restoring profitability, strengthening governance, and regaining investor confidence.”
BKCB has already begun seeing the fruits of its restructuring. As of 30 June 2025, the Group’s unbilled construction order book stood at RM128.61 million, providing strong earnings visibility. The M&E division is also expected to contribute positively in the current year, following the resolution of a dispute with Tenaga Nasional Berhad.
With the Regularisation Plan fully implemented on 21 May 2025, and a clearer financial footing in FY2025, the Group is optimistic about being uplifted from PN17 status in the current financial year.
For more information, visit bintai.com.my.
