YNH settles tax petition, plans Manjung tech park

YNH Property Bhd says the Inland Revenue Board (LHDN) will withdraw the winding-up petition it filed against a subsidiary, YNH Construction Sdn Bhd. LHDN confirmed this in a letter dated 23 October 2026 after the two sides settled, YNH told Bursa Malaysia on 27 October.

YNH's annual report, released three days later, also shows a new plan in its home town of Seri Manjung, Perak: about 100 acres of its Manjung Point township are planned for a proposed Manjung Technology Park for future AI infrastructure.

The petition

• What it was: LHDN's petition, dated 30 March 2026 and served on 14 April, was over RM7.21 million of unpaid tax. YNH said management only learned of it when it was advertised
• The settlement: in July LHDN approved a revised plan. YNH Construction was to pay RM5.16 million by 10 September 2026, and LHDN agreed to waive a RM1.71 million tax increase under Section 103 of the Income Tax Act 1967 if it paid in full
• In court: no winding-up order was made at the 16 July hearing, and the case was fixed for 27 October
• Size: YNH says YNH Construction is not a major subsidiary. Its investment in the company cost RM2.5 million

Manjung Point and the tech park

• The land: Manjung Point in Seri Manjung "continues to anchor" YNH's development work, with about 500 acres still undeveloped, the annual report says
• The plan: the township's master plan is being redesigned to include the proposed Manjung Technology Park, about 100 acres for future AI infrastructure. No partner, approval or timetable has been announced
• More land in Mukim Lumut: its largest Manjung holdings include 34.67 acres of vacant leasehold land on Lot 10153, 50 acres of joint-development land on PT 10415 and PT 10416, and 25.87 acres on Lot 400, Bandar Lumut
• Industrial land: in July 2025 its subsidiary Kar Sin Bhd ended a joint venture and bought the leasehold industrial land on Lot 15083, Mukim Lumut, from its partner for RM45 million
• Already sold: AEON Mall Seri Manjung, to Sunway REIT for RM138 million, completed in July 2025

The balance sheet

• Borrowings: RM409.8 million at 30 June 2026, down 23.3% in a year and from RM835.4 million in 2024, the company said
• Audit: a clean (unmodified) opinion for the year to June 2026, after qualified opinions for the three periods before
• Sales pending: RM625 million of Kuala Lumpur land. That is 2.61 acres on Jalan Sultan Ismail to Chin Hin Group Property for RM455 million (our report) and 5.098 acres in Desa Sri Hartamas to Sunway for RM170 million, whose conditional period now runs to 31 December 2026. Both still need shareholders' approval
• Due next: a RM170 million Sukuk Wakalah falls due on 26 February 2027

Update, 10 November: rating cut and the repayment plan

• Rating: MARC Ratings cut YNH's RM700 million Islamic medium-term notes programme to B-IS from BB-IS on 6 November and put it on MARCWatch Negative, EdgeProp reported. The trigger was a RM6.8 million shortfall in the sukuk reserve account, which held RM54.4 million on 27 October against a required RM61.2 million. MARC treats it as a technical default to be fixed within a 30-day remedy period
• YNH's reply: the shortfall is in the scheduled build-up of reserves, not a missed principal payment, and it is taking steps to fix it in time
• The repayment plan: for the RM170 million due on 26 February 2027, YNH is counting mainly on the Desa Sri Hartamas sale to Sunway Living Space Sdn Bhd. About RM65 million of the price will settle the loan on that land, leaving about RM105 million. MARC expects the sale to turn unconditional by the end of November and complete in January 2027, and the Jalan Sultan Ismail sale to complete the same month; about RM409.5 million of that sale's cash is meant to redeem RM350 million of perpetual securities and pay deferred coupons
• The Hartamas land: the RM170 million works out to about RM766 per sq ft (our calculation). The sale was first announced in May 2023; a sixth extension in September 2026 moved the deadline to 31 December 2026, after which Sunway Living Space may end the deal. YNH is also counting on sales from Solasta Dutamas in Kuala Lumpur and its Manjung townships, The Edge reported
• Land bank: YNH points to more than 800 acres of undeveloped land as a longer-term pipeline, though not an immediate source of cash
• Earlier deal: in October 2025 YNH's unit Kar Sin Bhd agreed a joint venture to develop Genland Sdn Bhd's 7,235 sq m plot in Bangsar South. Genland gets at least about RM60 million or 18% of the project's sales value, whichever is higher, implying a project of about RM333 million, The Edge reported