3 days ago
- Business
- Malaysian Reserve
EquitiesTracker's auditors flag going concern risk amid deepening losses
EquitiesTracker Holdings Bhd (ETH) has received a statement of material uncertainty related to going concern from its external auditors, ChengCo PLT, for its financial year ended Dec 31, 2024 (FY24), raising questions over the company's ability to remain financially viable.
In a filing with Bursa Malaysia, the investment research and analytics firm reported a significantly widened net loss of RM12.81 million in FY2024, compared to RM3.25 million in the previous year.
As of end-2024, the company also reported net current liabilities of RM1.63 million, reversing from net current assets of RM11.27 million a year earlier.
The auditors noted that these financial conditions 'indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.'
However, the audit opinion was not modified.
ETH clarified that the material uncertainty applies solely to the company level and does not affect the financial standing of the group.
In an effort to address liquidity concerns, ETH had earlier embarked on a private placement exercise approved by Bursa Securities in January 2025.
The company successfully raised RM2.77 million and RM3.5 million in two tranches in February and June respectively, issuing a total of 28.48 million shares at RM0.22 apiece.
'With the completion of the private placement, the company has addressed the issue of net current liabilities,' the filing said.
ETH is listed on Bursa Malaysia's LEAP Market. –TMR
