Lion Industries auditor identifies going-concern uncertainty
The group obtained approval to reschedule a RM33.5 million term loan, but its auditor said liquidity remains dependent on planned initiatives.
Lion Industries Corp Bhd said on Oct 8 that Forvis Mazars PLT had identified material uncertainty over whether the group and company could continue as going concerns. The independent auditor nevertheless issued an unqualified opinion on the financial statements covering the 18-month period that ended on June 30, 2026.
In its report filed with Bursa Malaysia, Forvis Mazars noted a group net loss of RM211 million and operating cash outflow of RM10 million. For the company, the corresponding figures were RM117 million and RM7 million, while net current liabilities stood at RM144 million on June 30, 2026.
The lender approved a revised repayment schedule for a RM33.5 million term loan, extending its tenure to Dec 31, 2027. The auditor said this would ease near-term repayments and allow more time for planned asset disposals, rationalisation, monetisation and operational improvements.
However, Forvis Mazars said adequate liquidity and timely payment of obligations depended on those initiatives succeeding and cost optimisation and efficiency measures delivering their expected benefits. Neither the company nor the group had committed banking facilities remaining undrawn when the financial statements were approved.
The proposed initiatives remained under evaluation or negotiation and were subject to definitive agreements and applicable conditions. The auditor said their timing, value and outcome also depended on counterparties, market conditions and factors outside the group’s full control.
Lion Industries shares closed on Oct 8 at 11 sen, down 0.5 sen or 4.35%, valuing the group at RM72.46 million.
