LYC – from Nasdaq dreams to GN3

LYC Healthcare Bhd, an operator of confinement centres and aesthetic clinics, appears to be facing significant challenges after years of losses.

A far cry for a company that, as recently as early last year, had plans to list a subsidiary on Nasdaq, while the year before it had proposed listing another subsidiary on Singapore’s Catalist board.

The ACE Market-listed company has steadily acquired businesses over the years, from dental clinics to a supplier of nutraceutical ingredients, and even specialist clinics in Singapore.

However, profitability has remained elusive.

LYC had sought to become a healthcare provider and garner the premium valuations that companies in the sector enjoy. But the big plans are not panning out, as its losses keep widening.

For the financial year ended March 31, 2026 (FY26), the company reported a net loss of RM23.3mil against RM17mil in FY25. Revenue fell 14% to RM134.2mil, as higher operating costs as well as depreciation and amortisation expenses weighed on its core healthcare services business.

On June 5, the company obtained a six-month extension until the end of November to submit a regularisation plan under Guidance Note 3 (GN3).

LYC was classified as a GN3 company on May 30, 2025, due to its financial condition, including accumulated losses and shareholders’ equity falling below 25% of its issued share capital.

What this means is that shareholders will get nothing when all assets have been liquidated and all debt paid off as, based on its latest unaudited results, the company’s borrowings exceed its cash holdings by RM52.5mil.

LYC is now at risk of being delisted unless it can come up with a credible business recovery plan. Given its track record, the going seems rough.

Investors must learn from this episode that not all companies targeting to get into high-growth sectors such as healthcare can automatically make it.