Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-W)] (Bursa Malaysia Securities) has publicly reprimanded Techna-X Berhad (TECHNAX) for breaches of the Bursa Malaysia Securities Main Market Listing Requirements (MAIN LR).

TECHNAX was publicly reprimanded for committing the following breaches of the MAIN LR: -

1. Paragraph 9.23(1) of the MAIN LR for failing to issue the company's annual report that included the annual audited financial statements together with the auditors' and directors' report for the 18-month financial period ended (FPE) 31 December 2025 (AR 2025) on or before 30 April 2026. TECHNAX had only issued the AR 2025 on 8 May 2026, after a delay of five (5) market days.

    

2. Paragraph 9.35A(1)(a) of the MAIN LR for failing to ensure that its 6^th quarterly report for the FPE 31 December 2025 (QR6 2025) announced on 27 February 2026 took into account the adjustments stated in the company's announcement dated 14 May 2026.

TECHNAX was also required to: -

• carry out a limited review on the company's quarterly report submission. The limited review must be performed by the company's external auditors for four quarters commencing no later from the quarterly report for the financial period ended 30 September 2026;
• ensure that its directors and relevant personnel attend a training programme in relation to compliance with the MAIN LR particularly pertaining to financial statements; and
• ensure its Board of Directors (Board) reviews and assesses the adequacy and competency of the company's finance and accounting resources and adequacy, comprehensiveness, implementation and effectiveness of the company's policies and procedures in respect of financial reporting.

The finding of breach and imposition of the above penalties on TECHNAX were made pursuant to paragraph 16.19 of the MAIN LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including the materiality of the breaches and the impact of the breaches to TECHNAX and its shareholders/investors.

While Bursa Malaysia Securities had not found any of TECHNAX's directors to have caused or permitted the breaches by the company, Bursa Malaysia Securities wishes to highlight and remind that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the MAIN LR. The Board of TECHNAX at the material time of the announcements of the QR6 2025 and AR 2025 was as follows: -

1. Y.A.M Tunku Naquiyuddin Ibni Tuanku Ja'afar
2. Yen Soon Jin
3. Fan Kah Seong
4. Sakthi Kumar A/L Ramadas
5. Y.A.M. Tengku Shahrain Shah Bin Tengku Sulaiman Shah
6. Dato' Geh Guat Yeow
7. Irmmie Josfina Binti Abd Rahman
8. Sharvin A/L Ravindran

Bursa Malaysia Securities views the breaches seriously and has reminded TECHNAX and its Board of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public and ensure that such breaches do not recur.

BACKGROUND

TECHNAX had delayed in issuance of the AR 2025 mainly due to the failure to maintain/provide the necessary information/documents/accounting records to the external auditors to facilitate completion of the audit towards issuance of the AR 2025 within the stipulated timeframe.

Notwithstanding that the delay in issuance of the AR 2025 was five (5) market days, investors were deprived of TECHNAX's audited financial information for an extended period of more than 18 months for AR 2025.

In addition, upon issuance of the AR 2025, TECHNAX had reported an audited loss attributable to the owners of the company of RM29.259 million in the audited financial statements for the FPE 31 December 2025 (AFS 2025) compared with the unaudited loss attributable to the owners of the company of RM23.582 million in the QR6 2025 which represented a difference of RM5.677 million/24.1% between the QR6 2025 and the AFS 2025.

TECHNAX had on 14 May 2026 announced that the deviation was due to additional audit adjustments recognised during the finalisation of the AFS 2025, including impairment losses on other receivables, amounts owing from associates and intangible assets, as well as accounting adjustments arising from the waiver of debts owing to directors of subsidiary.

The underlying circumstances giving rise to the adjustments existed when QR6 2025 was prepared. Hence, there was no reasonable change in circumstances and TECHNAX could not rely on the finalisation of the audit or external auditors' recommendations to justify its failure to take into account the adjustments in the QR6 2025 and ensure that QR6 2025 was accurate when issued.