Country Heights auditor flags material uncertainty on going concern

KUALA LUMPUR: Country Heights Holdings Bhd’s (CHHB) external auditor, UHY Malaysia PLT, has raised a material uncertainty related to the group’s ability to continue as a going concern in its audit report for the financial year ended June 30, 2025.

In its audit report, UHY said the group and the company recorded net losses of RM45.52mil and RM286.80mil for the financial year ended June 30, 2025, with current liabilities exceeding current assets by RM27.27mil and RM526.33mil, respectively.

The group has also posted losses for three consecutive financial periods.

UHY also identified a key audit matter relating to impairment on trade receivables amounting to RM10.19mil, citing the judgment involved in assessing recoverability and adequacy of impairment allowances.

In response, CHHB said it has undertaken several measures to strengthen its financial position, including cost rationalisation, asset disposals, fund-raising exercises, and debt-restructuring efforts. The group has also enhanced credit-control measures to improve collections and reduce impairment risks.

The board said it targets measurable progress on these initiatives within the next 12 to 18 months, in line with its strategic restructuring and capital management plans for the financial years ending June 30, 2026, and 2027.