KUALA LUMPUR: YNH Property Bhd has secured an unmodified audit opinion from its external auditor, Morison LC PLT, for the financial year ended June 30, 2026 (FY26), ending three consecutive reporting periods of qualified opinions.
The property developer also reduced its total borrowings by 23.3 per cent year-on-year to RM409.8 million, from RM534.1 million a year earlier, as it stepped up efforts to strengthen its balance sheet and financial position.
For YNH, the clean audit opinion marks a significant milestone in the company’s efforts to resolve legacy financial-reporting issues and tighten corporate governance, particularly its investment review and approval processes.
During FY26, the company strengthened its investment governance framework following findings from a Special Independent Review completed in April 2025.
On Feb 6, 2026, YNH appointed an independent professional consultancy firm to develop its Investment Governance Standard Operating Policies and Procedures (Investment SOPP) and reassess 17 existing joint venture (JV) and tenancy collaboration agreement (TCA) arrangements against the new framework.
The Investment SOPP and independent reassessment report were subsequently deliberated and approved by the board on March 26, 2026.
The framework establishes clearer procedures for investment evaluation, related-party transaction reviews, approval limits and payment processes to address shortcomings identified in the earlier review.
Group managing director Allan Yu Kai Leun said the unmodified audit opinion reflected the board and management’s efforts to resolve historical matters and strengthen investment governance.
“It gives our stakeholders a clearer foundation on which to assess our progress. We have also made real progress in deleveraging. Over the past two years, we have cut our borrowings by about half and our finance costs by a third.
“Our priorities now are to complete our proposed land disposals, further reduce debt and channel our resources into delivering our developments and long-term value for our shareholders,” he said.
YNH reduced its borrowings by RM124.3 million during FY26, bringing total debt down from RM534.1 million to RM409.8 million as of June 30, 2026.
Over the past two financial years, borrowings have declined by RM425.5 million from RM835.4 million as of June 30, 2024.
Its gearing ratio improved to 0.44 times from 0.52 times a year earlier and 0.71 times in FY24, reflecting continued debt repayments and asset monetisation.
Finance costs fell 22.4 per cent to RM37.6 million in FY26 from RM48.4 million in FY25 and by a third from RM56.4 million in FY24, while administrative expenses also declined 26.9 per cent to RM56.06 million.
YNH said the reduction in borrowings was driven mainly by asset monetisation, notably the RM138 million disposal of the Aeon Seri Manjung shopping mall to RHB Trustees Bhd, as trustee of Sunway Real Estate Investment Trust, which was completed on July 25, 2025.
The term loans secured against the mall were fully redeemed using the sale proceeds.
Looking ahead, YNH has proposed land disposals worth a combined RM625 million.
On July 8, 2026, its subsidiary YNH Land Sdn Bhd entered into a conditional sale and purchase agreement with Chin Hin Property (JSI) Sdn Bhd for the disposal of a freehold commercial development land parcel in Kuala Lumpur for RM455 million, mainly in cash.
This is in addition to a proposed RM170 million disposal of another Kuala Lumpur land parcel to Sunway Living Space Sdn Bhd.
Both transactions are subject to shareholders’ approval and other conditions. Their completion is expected to further strengthen the group’s financial position.
Operationally, YNH remains focused on completing its Solasta Dutamas development in Kuala Lumpur and advancing its township projects in Seri Manjung, Perak, while evaluating selective monetisation of investment properties and landbank parcels.
The latest progress follows a separate development on Oct 27, 2026, when wholly-owned subsidiary YNH Construction Sdn Bhd reached an amicable settlement with the Inland Revenue Board of Malaysia (LHDN), which confirmed that its winding-up petition against the subsidiary would be withdrawn.
Moving forward, YNH said it would focus on enforcing its enhanced governance framework, completing the proposed land disposals, reducing borrowings and delivering its development projects to create sustainable long-term shareholder value.