KUALA LUMPUR (April 28): Frozen food manufacturer HB Global Ltd said its external auditors Messrs RT LLP have issued a statement of material uncertainty about its ability to continue as a going concern in relation to its audited financial statements for the financial year ended Dec 31, 2016 (FY16).

In a filing with Bursa Malaysia today, HB Global said RT had pointed to the group's net loss of RMB24.89 million in FY16, noting that its current liabilities exceeded its current assets by RMB51.55 million.

"The current liabilities include bank loans of RMB92.9 million, which are contractually due within 12 months from the end of the reporting period.

"Should the group not be able to roll over the existing loans or alternative refinancing of the loans be unsuccessful, the group may have insufficient cash to fulfil obligations at the relevant repayment dates," said HB Global.

Nevertheless, it said RT have expressed unqualified opinion on the group's audited financial statement for FY16.

In a separate filing, HB Global said its audited net loss for FY16 has deviated by 16.78% from the unaudited net loss of RMB29.9 million as announced on Feb 28, 2017.

The audited net loss as at Dec 31, 2016 now stands at RMB24.89 million.

HB Global’s shares were untraded today. They last closed 25% higher at eight sen yesterday, valuing the group at RM35.1 million.