Bintai Kinden Corporation Berhad has stated that its financial statements for the year ending 31 March 2025 (FY2025) have been confirmed as accurate by its external auditors, HLB Ler Lum Chew PLT, even though there was a technical issue regarding previous year figures.
The technical issue was due to the auditors not being able to get enough information about the starting balances for debts, trade receivables, and contract assets from FY2024. Because of this, the auditors could not confirm if changes were needed for FY2025’s profit or loss and retained earnings. Importantly, this issue does not affect FY2025 transactions, and the auditors assured that the financial statements accurately reflect the Group’s current financial status.
BKCB emphasized that the concern only involves old balances and does not indicate any significant errors in FY2025’s accounts. The Group has taken steps to improve financial transparency and responsibility.
For FY2025, BKCB reported revenue of RM25.29 million, down 31.30% from RM36.79 million in FY2024. The drop was mainly due to the ending of ten contracts in the M&E segment last year. Although several new projects were won during FY2025, most were still in early stages by the end of the year, limiting revenue recognition.
The Group showed a loss before tax of RM31.97 million, compared to a profit before tax of RM5.17 million the previous year. This was mainly due to lower revenue and some one-off expenses. BKCB is focused on recovering operations, reducing costs, and rebuilding its order book to become profitable again.
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 loss, the Group’s financial position improved compared to FY2024. As of 31 March 2025, BKCB had a net current asset position of RM9.11 million. This improvement was mainly due to effective financial actions, such as issuing private placement shares, restructuring bank loans, and managing cash flow strategically.
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 is experiencing positive results from its restructuring, with an unbilled construction order book of RM128.61 million as of 30 June 2025, indicating strong earnings visibility. The M&E division is also expected to perform well after resolving a dispute with Tenaga Nasional Berhad. With the Regularisation Plan implemented on 21 May 2025 and a more stable financial outlook for FY2025, the Group is hopeful about being uplifted from PN17 status this financial year.