KUALA LUMPUR (Oct 25): Asia Media Group Bhd said there is a significant variation between its audited and unaudited financial results for the financial year ended Dec 31, 2018 (FY18), following discovery of impairment losses and provisions that were not accounted for by the previous management.
The transit television network provider said in a stock exchange filing today that the impairment losses — on property, plant, equipment and receivables — together with the provisions for litigation claims affecting the group, amounted to RM22.9 million.
The variation resulted in Asia Media’s FY18 net loss widening to RM26.51 million from RM3.14 million reported previously, on the back of revenue of RM13.43 million.
Asia Media, whose shares have been suspended from trading since May 9 this year after it failed to submit its Annual Report 2018 and its FY18 audited financial statements on time, released both today.
The audited financial statements contained in its Annual Report 2018, were released following several postponements since July 19, amid a boardroom tussle which resulted in the ouster of five directors — including chief executive officer (CEO) Datuk Wong Shee Kai — through an extraordinary general meeting on July 25. In their place, four new directors were appointed to the board.
Subsequently, the group's auditor Messrs UHY resigned on Aug 7, following which Messrs STYL Associates PLT was appointed as the group's new auditor on Sept 17.
In a separate filing today, Asia Media also revealed that it has triggered the Practice Note 17 criteria as its shareholders' equity on a consolidated basis of less than RM40 million is now 25% or less of its issued capital. This means it has to regularise its condition within 12 months from today, failing which the trading of its shares could be suspended and later delisted.
A day earlier, its chief financial officer (CFO) Chong Choon Yeng resigned after just over two months on the job, citing internal reorganisation as the reason. Chong was appointed as CFO on Aug 1.
Shares of Asia Media was last traded at 13.5 sen prior to its suspension in May, which gave it a market capitalisation of RM32.33 million. The stock will resume trading next Tuesday (Oct 29).