KUALA LUMPUR (April 15): YNH Property Bhd said the independent review of its joint venture (JV) and turnkey construction agreements, which was initially slated to be completed this week, needs more time.

The property developer said it had only been able to move towards finalising the appointment of a professional firm after it appointed a new audit committee chairman and engaged with new statutory auditors last month.

“There will be a revised timeline for the intended appointment and the estimated completion date,” it said in a bourse filing on Monday, adding that the appointment was initially expected to be made in November 2023.

YNH reiterated its commitment to ensuring that the review would be completed as soon as possible, such as by providing necessary resources and support to the appointed professional firm.

The independent review was requested last year by YNH’s then external auditor Messrs Baker Tilly Monteiro Heng PLT over a RM1.1 billion sum the group paid to JV parties or landowners for property development work.

Baker Tilly said it could not obtain sufficient appropriate audit evidence concerning the sum, which was included in YNH's inventories regarding contracts it entered into with the JV parties or landowners, hence it expressed a qualified opinion on YNH's financial statements for the 18 months ended June 30, 2023.

However, Baker Tilly later ceased to be the company’s external auditor as it notified YNH that it did not wish to seek reappointment in December 2023.

It was not until last month that YNH redesignated its senior independent non-executive director Khong Kam Hou as the chairman of its audit committee, and appointed Messrs Morison LC Malaysia as its new external auditor.

At Monday’s close, YNH shares were down by two sen or 4.21% to 45.5 sen. Year to date, the counter has plummeted by RM3.59 or 88.74%, wiping off as much as RM1.9 billion in terms of market capitalisation.