KUALA LUMPUR (Dec 4): Sentoria Group Bhd (KL:SNTORIA) said it has triggered Bursa Malaysia's Practice Note 17 (PN17) criteria after its shareholders’ equity fell to 33% of its issued and paid-up capital, based on its just released financial statement for the year ended Sept 30, 2024 (FY2024).

The company noted that its auditors had previously raised concerns about the company's ability to continue as a going concern, when its shareholders' equity was reported at 89% of its issued capital in the FY2023 financial statement.

In a bourse filing on Wednesday, Sentoria said another assessment revealed that the company is facing limited business operations, with its consolidated revenue for FY2024 falling below 5% of its issued and paid-up capital.

Sentoria said it is required to regularise its financial condition within 12 months. It said it must submit a regularisation plan, detailing whether the plan will lead to a significant change in its business direction or policy.

Failure to comply may lead to the suspension of its listed securities and potential delisting, it added.

Sentoria, a builder and developer, has been under scrutiny due to a dispute with its former CEO Datuk Loh Yuen Tuck following allegations of misconduct. The company has reported losses since FY2019. For FY2024, the company reported a net loss of RM89.04 million on revenue of RM7.55 million.

Sentoria’s largest shareholder is Sentoria Capital Sdn Bhd (SCSB), controlled by joint managing directors Datuk Chan Kong San and Datuk Gan Kim Leong, with a 35.8% stake.

Shares of Sentoria, which have fallen over 55% since the start of this year, closed unchanged at four sen on Wednesday. This gives the company a market capitalisation of RM24.5 million.