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KUALA LUMPUR (May 1): Landmarks Bhd (KL:LANDMRK) said its external auditor KPMG PLT has issued an unqualified opinion with a material uncertainty related to the group’s ability to continue as a going concern.
KPMG, which audited Landmark's financial statements for the year ended Dec 31, 2025 (FY2025), noted that that resort and property developer recorded losses of RM19.9 million at the group level and RM15.1 million at the company level.
The group had net current assets of RM300,000, while the company was in a net current liability position of RM113 million, said Landmarks in a filing with Bursa Malaysia on Thursday, citing the auditor's report.
Among the key audit matters highlighted by KPMG was the valuation of assets in Treasure Bay Bintan (TBB), a 338-hectare integrated waterfront resort in Indonesia. As at end-December 2025, the bulk of the group’s assets was concentrated in the TBB project, comprising buildings, infrastructure and development land.
In addition, Landmarks’ investments in subsidiaries which make up the majority of the group’s total assets are largely tied to entities operating in TBB, many of which continue to record losses.
To address its financial position, Landmarks said it is undertaking the disposal of Andaman Resort Sdn Bhd’s assets, including hotel land and staff quarters, in two stages.
The first phase, involving the sale of the hotel land, was completed on Nov 15, 2024, while the second phase — the disposal of its equity interest in ARSB via a share sale agreement (SSA) — remains pending.
The group said completion of the SSA is subject to the resolution of a tax appeal linked to income tax on fire insurance compensation. Part of the proceeds from the land sale has been placed in an escrow account to meet potential tax liabilities, with discussions with tax authorities ongoing.
Upon resolution, Landmarks said the SSA is expected to be completed with proceeds from the disposal (including funds held in escrow) anticipated to be sufficient to support operations. This would place the group in a net cash position with zero gearing, strengthening its financial footing to pursue new business opportunities.
In the meantime, the group noted that its inventories, mainly development land in TBB, are unencumbered and could be monetised or used as collateral to raise financing.
Despite these measures, Landmark said its board acknowledged that a material uncertainty remains, particularly if there are delays or unfavourable outcomes relating to the SSA and tax appeal. Nevertheless, it maintains that it is appropriate to prepare the financial statements on a going concern basis due to ongoing engagement with authorities and alternative funding options.
Landmarks has been in the red since FY2021. For FY2025, it posted a net loss of RM19.89 million, narrowing from RM28.62 million a year earlier, as revenue declined 11.3% to RM22.2 million from RM25.04 million.
Shares in Landmarks settled up one sen or 11.11% at 10 sen on Thursday, giving the group a market capitalisation of RM63.79 million.
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