KUALA LUMPUR: Xin Hwa Holdings Bhd today flagged impact to its operations after the Land Public Transport Agency (APAD) announced that its subsidiary, Xin Hwa Trading & Transport Sdn Bhd's (XHTT) goods vehicle operator license will be suspended.
The suspension will run for four months, from Nov 13, 2024 to Feb 10, 2025, or until XHTT achieves full compliance with the Code of Practice for Industrial Safety (ICOP-Keselamatan).
Land transport, warehousing and distribution contributed about 78 per cent of the RM120.5 million revenue for the group in financial year ended March 31, 2024.
The suspension was imposed due to XHTT's non compliance with the ICOP-Keselamatan, specifically in ensuring that all goods vehicles under its operation are maintained in a condition deemed safe for use by the Director General of Road Transport.
XHTT received notice regarding the suspension of its license to transport goods on Nov 4, 2024.
Xin Hwa Holdings has acknowledged the potential impact and is taking immediate corrective actions to address compliance issues.
The company plans to submit a formal appeal to APAD in hopes of lifting the suspension swiftly, while ensuring all vehicles meet mandated safety standards.
The company emphasised its commitment to meeting regulatory safety requirements, expressing a goal to resume normal operations promptly without compromising the safety of its fleet or operational integrity.
Xin Hwa's share price were trading unchanged at 18.5 sen a share earlier.