Kar Sin
What we found
Kar Sin Berhad, a wholly-owned subsidiary of YNH, proposed the disposal of freehold vacant land in the Mukim of Kuala Lumpur for a total cash consideration of RM170.00 million to Sunway Living Space Sdn Bhd, according to a Bursa Malaysia announcement dated 17 January 2024.
The evidence
3 claims across 2 areasRegulatory and legal
NegativeBursa Securities issued a further set of queries to YNH Property over the RM170 million disposal of Sri Hartamas land by its wholly owned subsidiary Kar Sin Bhd, seeking clarification of Kar Sin's deferred registration as registered proprietor of the land and asking why a turnkey construction agreement dated 20 June 2016 and its termination on 1 April 2023 had not been publicly disclosed.
Corporate continuity
NegativeAn independent assessment by UHY Advisory of RM1.1 billion of joint venture and turnkey contracts entered into by Kar Sin Bhd found that two of the joint venture companies shared a common director and shareholder who was also a former shareholder and employee of YNH Property, that multiple JV entities shared addresses and company secretaries, and that YNH Property lacked documented policies or procedures for contracting and payment processes, with security deposits predominantly authorised by the finance manager alone regardless of transaction size.
One more finding
External auditor Morison LC PLT issued a qualified opinion on YNH Property's financial statements for the year ended 30 June 2024, stating that the outcome of regulatory authorities' investigation remained unknown and a special independent review was still pending; the article records that Kar Sin Bhd had terminated three joint ventures under turnkey construction agreements for projects in Mukim Belanja and Mukim Batu since March 2024 and was pursuing recovery of funds paid.
