KUALA LUMPUR (Aug 27): LYC Healthcare Bhd’s (KL:LYC) external auditors has issued an unqualified opinion with material uncertainties related to the postpartum care centre operator’s ability to continue as a going concern.
SBY Partners PLT, which audited LYC Healthcare’s financial statements for the year ended March 31, 2026 (FY2026), noted the group incurred a loss of RM12.69 million, with a net current liabilities position of RM72.15 million. Shareholder deficit stood at RM10.62 million, it also noted.
The auditor flagged an extension granted to the redemption period of the group’s redeemable preference share 1 (RPS 1) and RPS 2, which were previously set to expire in September and October 2025, respectively.
It noted RPS 1 and RPS 2, which totalled RM57 million in aggregate as at end-March, had their redemption period extended “verbally by the third-party subscriber” until Sept 23, 2026, and Oct 19, 2026, respectively.
The auditor, however, said it was unable to obtain sufficient appropriate audit evidence on the extension granted by the third-party subscriber.
SBY Partners also flagged LYC Healthcare’s classification as an affected listed issuer under Guidance Note 3 (GN3) and its proposed plan to list a newly incorporated foreign unit, LYC Healthcare (Cayman) Ltd, on the Nasdaq.
LYC Healthcare was classified as a financially distressed company in March 2025, as 25% of shareholders’ equity was less than its issued share capital, and is required to submit a regularisation plan. It secured a six-month extension earlier this year and has until end-November to submit the plan.
Annual report issued, to resume trading on Friday
Meanwhile, LYC Healthcare has issued its annual report, and in turn, its securities are slated to resume trading on the bourse at 9am on Friday.
The annual report was initially due on July 31, but it was delayed due to “the inability to obtain timely access to the records and information” of Elite Dental Team Sdn Bhd after the unit was sold off in December 2024, the company previously said.
Shares of LYC Healthcare were last traded on Aug 7, when it closed at half a sen, valuing the group at RM3.7 million.