Troubled Malaysian air cargo company Transmile today dramatically wrote down its financial results for the last two years after previously announcing net profits for 2006 and 2005.

Transmile, whose shareholders include reclusive billionaire Robert Kuok, had to restate two years of profits into losses after a special audit uncovered false statements of revenue and asset purchases.

Transmile said it recorded a net loss of RM126.3 million for 2006 after a loss of of RM369.6 million in 2005.

Revenue for 2006 was RM655.8 million compared to RM356.4 million the previous year, it said in a statement to the stock exchange.

The company had previously reported net profits of RM157.5 million for 2006 and RM74.8 million for 2005.

Transmile shares were suspended from trading Monday to facilitate the release of the restated results.

Its share price has fallen 65 percent from RM13.00 in early May to its last traded price of RM4.54 on Friday.

Deadline missed

Transmile's accounting woes came to light on May 7 when it announced that it failed to meet the deadline to submit audited financial statements for 2006.

It commissioned Moores Rowland Risk Management to carry out a special audit which uncovered accounting irregularities that went as far back as 2004.

The company has since been raided by the watchdog Securities Commission, who vowed to conduct a swift probe. Company officials also lodged a police report on June 19.

Transmile said it made numerous changes to its boardroom and the audit committee last month. Its chief executive officer, Gan Boon Aun, voluntarily relinquished all his functions.

Along with Robert Kuok, a Hong Kong-based Malaysian, the firm's shareholders include investment banks JP Morgan and Goldman Sachs, the Singapore government and national postal company Pos Malaysia, whose main shareholder is state investment arm Khazanah Nasional.