KUALA LUMPUR: Xin Hwa Holdings Bhd today said the suspension of the goods carrying license for its major subsidiary, Xin Hwa Trading & Transport Sdn Bhd, for three months could see it lose up to five per cent of its revenue for the year.
This is considering that it could lose up to 20 per cent of its revenue for every month its license is suspended.
The group revealed this in its response to additional queries from Bursa Malaysia Securities following its announcement of the suspension of its goods vehicle operator license on Nov 5, 2024.
"The expected losses are estimated to be about 21 per cent (being the gross profit margin taken from the audited financial statements for the financial year ended March 31, 2024) of the affected revenue," it said.
Xin Hwa nevertheless said the company is taking immediate actions to mitigate the losses by arranging the vehicles registered under other subsidiaries to fulfil the urgent deliveries of XHTT and outsource some of the services to competent third party(ies) transporters.
It updated however that the group has submitted a formal written appeal to the Land Public Transport Agency on Nov 6, 2024, with supporting facts that the compliance issues raised by APAD have since been solved.
"In the appeal, the company has requested for the suspension to the lifted as soon as possible in order for the operations of XHTT to be resumed," it said in the filing with the bourse.
Xin Hwa's share price was down almost three per cent to 16.5 sen a share.