KUALA LUMPUR (May 30): LYC Healthcare Bhd (KL:LYC) has been classified as a Guidance Note 3 (GN3) company after its shareholders’ equity fell below 25% of its issued share capital, based on unaudited results for the financial year ended March 31, 2025 (FY2025).

GN3 status applies to financially distressed companies listed on Bursa Malaysia’s ACE Market, similar to Practice Note 17 (PN17) classification on the Main Market.

The loss-making healthcare group — which operates confinement homes, childcare centres, senior living homes and family clinics — said it is formulating a regularisation plan to address the GN3 classification.

The company has 12 months to submit its plan and secure Bursa Malaysia’s approval. If it fails to do so, its securities may be suspended and the company will be delisted.

For the fourth quarter ended March 31 (4QFY2025), LYC Healthcare narrowed its net loss to RM8.7 million from RM8.91 million a year earlier amid lower operating costs.

Quarterly revenue fell 9.6% to RM31.82 million from RM35.22 million, mainly due to weaker contributions from its Malaysian operations.

For the full year, the group narrowed its net loss to RM17.39 million from RM19.16 million in FY2024, as revenue rose 17.9% to RM153.53 million. LYC has been loss-making since 2012.

Separately, the group announced the appointment of Lee Ai Vi, its group accountant, as new chief financial officer.

Looking ahead, LYC said it will continue to pursue expansion both locally and abroad, focusing on growing its clinical and nutraceutical segments while optimising the performance of its subsidiaries.

“The group remains confident in its longer-term growth by improving our positioning in the growing healthcare markets and we will continue delivering encouraging performance in coming years through consolidation and execution of our committed business plans,” it added.

Shares of LYC Healthcare closed down half a sen or 8.33% to 5.5 sen on Friday, valuing the group at RM44.4 million.