KUALA LUMPUR: MAA Group Bhd has received a warning from its external auditor KPMG regarding significant uncertainty over its ability to continue operating and meet its financial obligations over the next 12 months.
This follows a RM106.9 million loss in its financial year 2026 (FY26), the group said in a filing with Bursa Malaysia today.
MAA said it received an unqualified audit opinion with a material uncertainty related to going concern for the financial year ended June 30, 2026.
KPMG noted that MAA’s current liabilities of RM102.5 million exceeded its current assets of RM99.4 million as of June 30, leaving a shortfall of RM3.1 million.
“These conditions indicate that material uncertainties exist that may cast significant doubt on the ability of the group to continue as a going concern and to meet its financial obligations over the next twelve months from the date of the authorisation of these financial statements,” KPMG said in its audit report.
An unqualified audit opinion means the financial statements are fairly presented under applicable accounting standards.
However, the going concern warning highlights uncertainty over the group’s financial position.
MAA’s board believes the financial difficulties are temporary and has outlined several measures to improve liquidity.
These include plans to raise RM139.1 million by disposing of stakes in certain entities outside the group’s consolidated accounts, properties and a hotel operation.
The group also expects gross settlements of RM38 million from efforts to recover credit-impaired loans in its financial services business.
In addition, MAA said it secured funding through investment notes issued by a subsidiary and is pursuing further issuances to raise additional funds.
It also cited continued financial support from a substantial shareholder.
Based on these measures, the board maintained that preparing the FY26 financial statements on a going concern basis was appropriate.
MAA was previously involved in a legal dispute with Bursa Malaysia over a proposed disposal of German assets owned by now-delisted KNM Group Bhd, in which MAA was the largest shareholder.
In May, the High Court dismissed Bursa’s lawsuit seeking to stop an extraordinary general meeting (EGM) called by MAA to obtain KNM shareholders’ approval for the proposed sale of Deutsche KNM GmbH.
Bursa filed the suit in October 2025, arguing that the EGM should not proceed until KNM had complied with the Main Market Listing Requirements.
The court ruled that MAA, as a shareholder, should not automatically bear the full obligations of a listed issuer simply because it had called the EGM under the Companies Act 2016.
MAA held a 19.37 per cent stake in KNM at the time.
The dispute centred on KNM’s proposed €270 million (about RM1.26 billion) sale of its German unit to Japan’s NGK Insulators Ltd. The deal subsequently fell through.
KNM, classified as a Practice Note 17 company in 2022, had pursued the disposal as part of efforts to restructure its finances and meet debt obligations.
Bursa rejected KNM’s regularisation plan in October 2025, and the company subsequently proceeded with its delisting.
KNM has since sued NGK Insulators, seeking damages over the failed transaction.