KUALA LUMPUR (March 3): Automobile parts manufacturer China Automobile Parts Holdings Ltd (CAP) has received yet another reprieve by Bursa Securities from being delisted on the Main Market of Bursa Malaysia, after it managed to issue its annual report for the financial year ended June 30, 2021 (FY21) for public release.

As a result, trading in the company's shares will resume on Friday (March 4).

Trading of CAP shares has been suspended since June 8, 2017, after it first failed to submit its quarterly report for the financial period ended March 31, 2017 (FPE17) within the stipulated time frame. Since then, it has received several reprieves from being delisted.

In the latest round, CAP had until Dec 22, 2021 to submit an appeal to Bursa Securities before its securities were to be delisted five market days later.

In a bourse filing on Thursday (March 3), CAP said Bursa Securities has decided to allow its appeal and not to de-list the company, after it had on Feb 25 submitted its outstanding annual report for FY21 that included the audited financial statements for FPE17 to FY21 to the regulator for public release. It will also hold its annual general meeting virtually on March 31.

Still, the road ahead is not all clear yet. CAP was classified as a Practice Note 17 (PN17) in January 2018, after its external auditor Messrs PFK had expressed an audit disclaimer of opinion in the company’s accounts for the financial year ended Dec 31, 2015 on undisclosed material liabilities.

CAP has sought from Bursa Securities a further extension of time of up to Sept 10 to submit its regularisation plan and is awaiting the regulator's decision. On Jan 28, the company announced that it had entered into a memorandum of understanding with Tan Sri Datuk Seri Panglima Joseph Lo @ Lo Tain Foh and Datuk Jonathan Lo Chaw Loong to negotiate the acquisition by CAP of the entire equity interest of Azam Jaya Properties Sdn Bhd, Pembinaan Azam Jaya Sdn Bhd and Kolopsi Jaya Sdn Bhd, as part of its proposed regularisation plan. The target companies are principally engaged in construction work, civil engineering, road maintenance, construction of highways, flyovers and bridges in Sabah.

In FY21, CAP posted a smaller net loss of RMB348,000, compared with RMB1.09 million in FY20.