KUALA LUMPUR (March 17): Khee San Bhd (KL:KHEESAN) has confirmed the completion of its regularisation plan and is now eyeing an exit from its Practice Note 17 (PN17) status as well as a return as the market leader in the confectionery industry.

The plan’s completion follows the effective implementation of its employees’ share scheme (ESS) on Tuesday, the candy maker said in a statement.

“The completion of our regularisation plan is a monumental achievement for Khee San. Today, the group stands well-positioned to reclaim its position as a market leader in the confectionery industry,” Khee San managing director Yong Loong Chen said.

As it moves closer to exiting its PN17 status, Yong said the company now shifts its focus to driving sustainable profitability, innovating its product offerings and delivering long-term value to its stakeholders.

The ESS implementation follows the completion of other components of Khee San’s regularisation plan, including a debt settlement via a scheme of arrangement, share capital reduction and rights issue.

Khee San fell into PN17 in November 2021 after its wholly-owned unit Khee San Food Industries Sdn Bhd, which accounted for over half of its total assets, was placed under judicial management following an application by Maybank Islamic Bhd to put the unit under court-supervised restructuring. The unit was embroiled in a legal battle with several banks over debts owed.

The company had a period of loss-making from FY2019 to FY2022. Since then, however, it has returned to profit.

For the financial year ended June 30, 2025 (FY2025), Khee San logged a net profit of RM1.78 million on a revenue of RM57.4 million.

Shares in Khee San ended half a sen or 4% higher at 13 sen, valuing the company at RM145.49 million.

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Khee San completes debt settlement and share capital reduction, moving towards PN17 exit