BINTAI KINDEN ANNOUNCES IMPROVEMENTS TO CASHFLOW POSITION AND POSITIVE PROGRESS TOWARDS ADDRESSING PN17 STATUS

PETALING JAYA, 31 JULY 2024 – Bintai Kinden Corporation Berhad ("BKCB" or the "Company"; Bursa: BINTAI, 6998), a mechanical and electrical (“M&E”) engineering services specialist, medical device manufacturer, and facilities operator, is pleased to announce that, to date, the Group has successfully restructured and rescheduled all of its defaulted banking facilities with its financiers. In furtherance thereto, BKCB's external auditors, HLB Ler Lum Chew PLT, who had previously expressed a Disclaimer of Opinion on going concern for the financial year ended 31 March 2023, have lessen their modified opinion to a Qualified Opinion with no modifications related to going concern for the current financial year 31 March 2024.

To recap, BKCB has reported revenue of RM36.8 million and net profit of RM3.2 million for the financial year ended 31 March 2024. This is a significant improvement compared to its results for financial year ended 31 March 2023, whereby revenue was RM116.1 million with net loss of RM114.5 million. The increase in profit after tax was due to lower operating cost achieved via the downsizing and effective costs control measures.

BKCB has made substantial progress through strategic initiatives including securing a robust order book, negotiating favorable terms with banks and creditors, implementing cost-cutting measures, finalising outstanding projects, and ensuring timely debtor payments. These efforts have been critical in driving the Company towards recovery.

On 30 July 2024, Bintai received Maybank’s approval for the restructuring and rescheduling of its wholly-owned subsidiary, Kejuruteraan Bintai Kindenko Sdn Bhd (“KBK”) banking facilities. This restructuring involves converting the outstanding Contract Overdraft/Trade Bills into a Term Loan facility, reinstating an Overdraft facility of RM6.9 million, and a Bank Guarantee facility of RM10.0 million, as per the bank’s Letter of Offer dated 30 July 2024. With this approval, all of Bintai Group’s banking facilities have been regularised, marking another milestone in the Company’s recovery journey.

Datuk Tay Chor Han, Managing Director cum CEO of Bintai Kinden, commented, “The removal of any adverse statement relating to going concern by our external auditors is a testament to the significant strides we have made in stabilising and strengthening our financial position. This, along with the restructuring of our banking facilities and recent contract awards, showcases our commitment to return Bintai Kinden onto a path of sustainable growth. We are grateful to our stakeholders for their unwavering support and confidence in our turnaround efforts.”

Building on these positive developments, Bintai Kinden will engage its adviser to formulate a self-regularisation plan aimed at uplifting its PN17 status.

The Company is committed to keep all key stakeholders informed on further progress in this regard.