LY Corporation Limited: Financial Report Analysis and Recommendations

Company Overview

LY Corporation Limited is a company incorporated in the Republic of Singapore. It operates in an unspecified industry.

Key Facts

• The company’s financial year ended on 31 December 2024.
• The report was published on 11 April 2025.
• The financial statements have been audited and show material variances between the unaudited and audited financial statements.

Business Description

The company’s core business operations, business segments, and geographic footprint are not explicitly stated. However, based on the information provided, it appears to be a Singapore-based company with operations in the country.

Financial Performance

The company’s financial performance is as follows:

• Loss for the year: RM 5,751,000 (compared to RM 3,742,000 in the previous year)
• Loss per share: 1.42 sen (compared to 1.04 sen in the previous year)

Financial Statement Analysis

Income Statement

• Revenue: Not stated
• Cost of sales: Increased by 1.1% to RM 208,957,000
• Loss for the year: RM 5,751,000 (compared to RM 3,742,000 in the previous year), an increase of 53.7%
• Loss per share: 1.42 sen (compared to 1.04 sen in the previous year), an increase of 36.5%

Balance Sheet

• Intangible assets: Increased by 7.0% to RM 10,504,000
• Inventories: Decreased by 4.0% to RM 54,495,000
• Trade and other receivables: Decreased by 6.2% to RM 25,889,000
• Trade and other payables: Decreased by 7.1% to RM 19,392,000

Cash Flow Statement

• Net cash flows used in operating activities: RM 21,648,000 (compared to RM 20,416,000 in the previous year)
• Net cash flows used in investing activities: RM 9,950,000 (compared to RM 13,900,000 in the previous year), a decrease of 28.4%.
• Net cash flows used in financing activities: RM 5,460,000 (compared to RM 2,824,000 in the previous year), an increase of 93.3%.

Recommendations

For current investors: Based on the analysis of the financial statements, it appears that the company has experienced a significant increase in loss for the year. The material variances between the unaudited and audited financial statements also raise concerns about the accuracy of the financial reporting. We recommend exercising caution when holding this stock.
For potential investors: The company’s financial performance has shown a decline in profitability, with a significant increase in loss for the year. The material variances between the unaudited and audited financial statements also raise concerns about the accuracy of the financial reporting. Therefore, we recommend not investing in this stock until further review of the company’s financial health and strategies.

Disclaimer

The recommendation is based solely on the information provided in the report and may not reflect the current market situation. It is essential to conduct thorough research and analysis before making any investment decisions.

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