THHE to be delisted from bourse on Sept 5 after Bursa rejects time extension appeal

KUALA LUMPUR (Aug 30): TH Heavy Engineering Bhd (THHE) will be delisted from the Main Market of Bursa Malaysia effective next Monday (Sept 5).

The delisting comes after Bursa Malaysia dismissed THHE’s further appeal for an extension of time to submit its regularisation plan to the relevant authorities for approval pursuant to paragraph 8.04 of Bursa Securities Main Market Listing Requirements, according to the oil-and-gas-turned-shipbuilding company’s filing with Bursa Malaysia.

“Upon the delisting of the company, the company will continue to exist but as an unlisted entity. The company is still able to continue its operations and businesses and proceed with its corporate restructuring and its shareholders can still be rewarded by the company’s performance. However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Securities,” it added.

THHE said it had appealed on Aug 22 (last Monday) to seek a six-month extension to submit its regularisation plan on Feb 22, 2023, from Aug 22, 2022.

Prior to this, it had received multiple extensions since it fell into PN17 status in April 2017 after its auditors expressed a disclaimer opinion on its audited financial statements for its financial year ended Dec 31, 2016.

In a separate filing with the local bourse, THHE suffered a net loss of RM656,000 in the second quarter ended June 30, 2022 (2QFY22). The net loss was lower compared with RM5.35 million a year ago due to higher recovery from waivers of debt.

Quarterly revenue, however, took a nosedive as it was down by 97.8% to RM84,000 in 2QFY22 from RM3.83 million a year ago, due to lower fabrication activities and most of the projects being at the tail end.

For the cumulative six-month period, THHE’s net loss widened to RM6.24 million from RM4.5 million in the previous year, while revenue tumbled 91.64% to RM478,000 from RM5.72 million a year before.

Meanwhile, it had short-term debt commitments of RM151.87 million and accumulated losses of RM645.99 million.

THHE anticipates the fabrication business to remain challenging in view of the present competitive environment.

With its current exposure and experience in the marine sector, the group has expanded into ship repair and shipbuilding activities. It also plans to venture into refurbishment and maintenance works and non-oil and gas-related fabrication works.

THHE shares have been suspended since Dec 10 last year. The counter was last traded at one sen.