Instead of making a profit of $1.2 million for the 1HFY2022 ended June 30, Mainboard-listed Yeo Hiap Seng would have made a net loss for the six-month period.
Based on the group’s initial guidance, Yeo Hiap Seng would have expected to see a net profit for the 1HFY2022, reversing from the previous year’s net loss. The performance growth was mainly attributed to the group’s better performances in Malaysia and Cambodia.
On Oct 19, the group said that there had been an understatement in the net loss of its Malaysian subsidiary, Yeo Hiap Seng (Malaysia) due to “certain accounting errors on consolidation adjustments” in the group’s Malaysian subsidiary.
“There had been an understatement in the net loss in the consolidated financial statements of Yeo Hiap Seng (Malaysia) of $2.1 million for the FY2021 ended Dec 31, 2021 (FY2021 misstatement), and $1.8 million for the 1HFY2022 ended June (1HFY2022 misstatement),” says the group via a bourse filling.
Had the accounting errors been known at the time of the unaudited results for the six-month period, the group would have seen a net loss of $0.6 million instead of a net profit of $1.2 million if the 1HFY2022 misstatement had been adjusted for.
Had both misstatements been adjusted for, Yeo Hiap Seng would have registered a net loss of $2.7 million instead.
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According to the group, the misstatements have no significant impact on the group’s net asset position and operating cash flows for the period ended June 30. The misstatements will be adjusted in the group’s FY2022 financial statements ending Dec 31.
The misstatements were said to be the result of human error. The board adds that they “are not aware of any fraud”.
Shares in Yeo Hiap Seng closed flat at 71 cents on Oct 19.
