KUALA LUMPUR: YNH Property Bhd confirmed that it has received offers from interested parties to buy its shopping mall, situated on 2.42 hectares in Mont Kiara, Kuala Lumpur.

The property developer said this in response to a query about unusual market activity (UMA) submitted by Bursa Malaysia Securities Bhd on January 12, 2024, and its response letter dated January 19, 2024, which addressed the UMA query.

On January 18, intense selling pressure revealed an oversight by YNH regarding the non-disclosure of its plan to purchase a 2.06-hectare plot of land in Desa Hartamas, Kuala Lumpur, for RM150 million.

Despite a subsidiary, Kar Sin Bhd, disclosing a land disposal in May 2023, the acquisition was not publicised.

Bursa Securities requested details from YNH to provide information on the steps taken to correct the oversight.

As per YNH's announcement, the selection decision is anticipated to be finalised within a month.

"The indicative highest percentage ratio applicable to the proposed disposal is 19.11 per cent," it said.

YNH said that after a decision is made and the terms are finalised and accepted by both parties, it will make an announcement regarding the proposed disposal.

However, neither the indicative price range nor the materiality of the disposal were disclosed by the developer.

YNH, in which well-known investor Datuk Dr. Yu Kuan Chon owns a 32.6 per cent stake, posted losses in the last three financial years.

In the financial year 2021 (FY2021), it reported a net loss of RM2.79 million for the year. This increased to RM14.59 million in FY2022, and to RM18.23 million in the final 18 months of FY2023, which ended on June 30, 2023.

Even though revenue increased by 19 per cent to RM62.74 million from RM52.84 million in the previous year, YNH's net loss for the July to September months increased to RM10.22 million from RM2.22 million in the first quarter of FY2024.

Lower other income, increased expenses, and increased cost of sales all contributed to the quarter's poor performance.

The company's stock stabilised yesterday (Jan 23) following a decline to 55.5 sen, the lowest level in 14 years.

The stock opened the day at 60 sen and fluctuated between 57 and 82 sen during the day. Over 300 million shares, or 57 per cent of its total issued share capital, were traded. The stock closed at 61 sen, up 5.5 sen or 9.91 per cent, giving it a market capitalisation (market cap) of RM208 million.

The battered stock has dropped 86 per cent so far this year, or RM3.64, costing the company about RM1.92 billion in market cap.