Loss-making LYC Healthcare shares dive on annual report delay warning

New Straits Times

5 days ago

KUALA LUMPUR: Shares of loss-making LYC Healthcare Bhd plunged over 70 per cent to a record low of one sen this morning, after the company failed to submit its annual report for the financial year ended March 31, 2025.
The stock opened 28.57 per cent or one sen lower at 2.5 sen, before crashing 71.43 per cent or 2.5 sen to one sen in active morning trade.
By 10.35am, the counter had pared some losses to two sen, still down 1.5 sen or 42.9 per cent, with 4.4 million shares traded, its highest volume in nearly two months.
Year to date, the Guidance Note 3 (GN3)-status healthcare and wellness company has seen its market value wiped out by 80.95 per cent, falling from 10.5 sen on Jan 2.
In a bourse filing yesterday, LYC Healthcare said it may not be able to submit its financial year 2025 (FY25) annual report, which includes the audited financial statements and auditors' and directors' reports, by the July 31 deadline set by Bursa Malaysia.
The company said the delay was due to management requiring more time to resolve outstanding audit matters and provide necessary information to external auditors.
Failure to submit the report within five market days after the deadline could lead to a suspension in trading from Aug 8, while a delay of more than six months may trigger de-listing procedures.
LYC Healthcare was classified as a GN3 issuer on May 30, after its shareholders' equity fell below 25 per cent of its issued share capital based on unaudited FY25 results.
The company is still in the midst of appointing a sponsor and formulating a regularisation plan, which must be submitted to Bursa by June 30, 2026, to avoid de-listing under GN3 rules.
LYC Healthcare operates in Malaysia and Singapore, specialising in mother and child services, senior living and nutraceuticals.
For the fourth quarter ended March 31, 2025, the group posted a net loss of RM8.7 million, slightly narrowing from RM8.9 million a year earlier, as cost-cutting helped cushion weaker revenue.
It attributed the reduced loss to lower operating costs, partially offset by higher interest expenses and impairment charges.
Quarterly revenue fell 10 per cent to RM31.82 million, from RM35.22 million a year ago, dragged by weaker performance in Malaysia.
For the full year, the company recorded a net loss of RM17.39 million, narrowing from RM19.16 million in FY24, while revenue rose 18 per cent to RM153.53 million, boosted by stronger contributions from its Singapore healthcare segment.