KUCHING: Reneuco Bhd, formerly known as KPower Bhd, has come under regulatory action after Bursa Malaysia Securities Bhd publicly reprimanded five of its directors for breaches of the Main Market Listing Requirements, with one director also fined RM2,500.
The directors involved are executive chairman Datuk Mustakim Mat Nun, executive director Sarah Azreen Abdul Samat, and independent non-executive directors Ahmad Riza Mohd Saian, Datuk Dr Muhammad Mahadi Mohamad and Tan Yee Hou.
Mustakim was singled out for the monetary penalty.
The reprimand arose from Reneuco’s failure to issue its annual report for the 15-month period ended Sept 30, 2023, which included the audited financial statements and auditors’ and directors’ reports, by the Jan 31, 2024 deadline. The report was only released on Feb 8, 2024, five market days late.
In addition, the company did not make a timely announcement that it would miss the deadline, only disclosing this on Jan 30, 2024, one market day before the due date, instead of by Jan 26, 2024 as required.
Bursa Malaysia Securities said timely submission of financial statements is a fundamental obligation of listed companies and critical to maintaining an orderly and fair market, as well as supporting informed investment decisions.
Reneuco, which has been classified as a Practice Note 17 (PN17) company, said the regulator had reminded both the company and its board of their responsibilities to uphold proper standards of corporate responsibility and accountability.
The delay stemmed mainly from unresolved issues with the company’s external auditors, resulting in a disclaimer of opinion on the audited financial statements for 2023. This subsequently triggered PN17 status when the annual report was finally issued.
Bursa Malaysia Securities noted that Reneuco and its directors failed to provide sufficient and appropriate audit evidence to address issues raised as early as Oct 12, 2023, despite changing the financial year-end to Sept 30, 2023 to allow more time for audit completion. In particular, key “special independent review and technical due diligence” reports were only provided to auditors in late January 2024, hindering timely assessment.
As part of remedial measures, Reneuco is required to ensure its directors, except Ahmad Riza who has since retired, and relevant personnel attend compliance training focused on financial reporting obligations. The board must also review the adequacy and effectiveness of the group’s finance and accounting resources and reporting procedures.
Separately, Bursa Malaysia Securities granted Reneuco extensions until Feb 7, 2026 to regularise the composition of its audit committee and to implement a proposed private placement. The placement, approved in June 2025, involves up to 114.25 million new shares, or 10% of issued capital, and is expected to raise about RM4.57 million, partly to repay creditors.
Reneuco said its PN17 status has constrained funding, with banks suspending further drawdowns. As at Dec 31, 2024, most of its RM10.03 million cash balance was pledged, while current liabilities exceeded current assets by RM14.39 million.
The group is formulating a regularisation plan and pursuing a court-approved scheme of arrangement. Despite financial strain, Reneuco continues to pursue projects in renewable energy, including solar and hydro power developments in Pahang, Kelantan and Sabah.
