Medi Lifestyle Limited 2Q2025 & HY2025 Results: Navigating Uncertainty, Seeking Opportunities
Medi Lifestyle Limited has released its unaudited interim financial statements for the second quarter (2Q2025) and half-year ended 30 June 2025 (HY2025). The company, listed on the Singapore Exchange, operates across three segments: Healthcare Services, Outsourced Services, and Commodity Trading. This review provides key metrics, performance trends, management commentary, and actionable insights for investors.
Key Financial Metrics & Comparative Performance
| Metric |
2Q2025 |
1Q2025 |
2Q2024 |
YoY Change |
QoQ Change |
| Revenue (RM’000) |
745 |
3,333 |
277 |
+169% |
-78% |
| Gross Profit/(Loss) (RM’000) |
38 |
-19 |
-26 |
n.m. |
n.m. |
| Net Loss (RM’000) |
(876) |
(881) |
(1,390) |
-37% |
n.m. |
| EPS (Basic, Malaysia sen) |
(0.53) |
(0.54) |
(0.93) |
-43% |
n.m. |
| Dividend |
None |
None |
None |
No change |
No change |
| Net Asset Value/Share (Malaysian sen) |
(1.9) |
(1.4) |
(1.4) |
-36% |
-36% |
Performance Review & Segment Highlights
- Revenue Growth: The Group posted RM745k in revenue for 2Q2025, a substantial YoY increase due to the launch of commodity trading (mainly coffee beans and palm oil derivatives). However, quarterly revenue dropped sharply QoQ as the initial trade spike normalized.
- Gross Profit Recovery: For 2Q2025, gross profit turned positive (RM38k) versus a gross loss last year, attributable to contributions from all operating segments.
- Net Loss Narrows: Net loss for 2Q2025 was RM876k, a 37% improvement YoY, reflecting tighter cost controls and lower finance costs due to debt conversions and repayments.
- EPS Improvement: Basic and diluted EPS losses narrowed considerably to (0.53) sen from (0.93) sen YoY.
- No Dividend: The Board did not declare any interim dividend due to ongoing losses.
Historical Trends & Cash Flow
- Commodity Trading: New segment contributed RM576k in 2Q2025 and RM3.77m in HY2025, driving top-line growth.
- Healthcare Services: Revenue declined YoY and QoQ as stem cell product sales softened; however, gross profit turned positive, aided by reversal of accrued sales commissions.
- Outsourced Services: Recruitment revenue was weaker due to fewer mandates and market saturation.
- Operating Cash Flow: Group used RM2.4m in operating activities for HY2025, mainly due to losses and increased receivables tied to commodity trades. Financing inflows (RM2.6m) came from shareholder loans.
Balance Sheet & Capital Structure Developments
- Negative Equity: The Group remains in a net capital deficiency (RM3.1m negative equity), with current liabilities exceeding current assets by RM3.2m.
- Shareholder Support: Lingholm Holdings Pte Ltd provided financial undertakings and new interest-free loans (S\$820k/~RM2.7m) to support working capital.
- Convertible Debt Conversion: Multiple convertible loan notes were converted into shares, reducing finance costs and improving capital structure.
- No Share Buybacks or Dilution: No share buybacks, new options, or placements occurred in the period.
Exceptional Items & Related Party Transactions
- No Asset Revaluations or Delays: No revaluations or delays were reported.
- No Exceptional Earnings/Expenses: No material early or delayed recognition, except fair value adjustments on convertible notes conversion (RM4k expense).
- Related Party Transactions: Only director/key management remuneration and shareholder loans; no general mandate for interested person transactions, and no material IPTs reported.
Chairman’s Statement
“The Group remains actively engaged across its three strategic business segments: Healthcare, Commodity Trading, and Outsourced Services. We have approached 2025 with measured optimism. Despite global trade uncertainties, shifting demographic dynamics, and geopolitical complexities, we see these challenges as opportunities to refine our strategies, strengthen our resilience, and position ourselves for sustainable growth.”
“Across all divisions, the Group remains focused on building an agile, technology-enhanced business anchored in regional relevance and long-term sustainability. Backed by sector-specific momentum and a proactive strategy, we are confident in our ability to deliver sustainable growth and operational resilience throughout 2025 and beyond.”
The tone reflects cautious optimism, acknowledging sector headwinds but emphasizing strategic agility and operational improvements.
Industry Trends & Strategic Outlook
- Healthcare: The group is targeting high-density urban markets in Malaysia, capitalizing on demographic shifts and rising wellness awareness. The cell-therapy segment is expanding regionally; global market forecasts indicate robust growth, presenting long-term opportunities.
- Outsourced Services: The recruitment segment is undergoing strategic realignment to integrate AI-driven capabilities, with plans to reposition for long-term scalability.
- Commodity Trading: Coffee and palm oil trades are focused on China and Southeast Asia, leveraging regional demand and shifting trade flows. PAO trading benefits from biofuel mandates in Indonesia.
Events & Corporate Actions
- No Divestments, IPOs, or Major Asset Sales: No material divestments or asset sales reported.
- Subsidiary Strike-Off: Application for striking off dormant subsidiary Impact BPO Sdn. Bhd. completed in September 2024.
- Convertible Bond Termination: Convertible bond subscription agreement terminated in February 2024; all proceeds previously raised have been fully utilized.
Conclusion & Investment Recommendations
Overall Assessment: The financial performance for 2Q2025 and HY2025 shows early signs of improvement, with revenue growth driven by the new commodity trading segment and narrowing losses. However, the Group remains loss-making, in negative equity, and dependent on shareholder support for going concern. Cost controls are effective, and segmental margins are stabilizing, but sustainable profitability remains elusive.
- If You Are Currently Holding This Stock: Consider holding only if you believe in management’s turnaround strategy and the growth potential of commodity and cell-therapy businesses. Monitor closely for further progress in cost control, margin improvement, and successful fund-raising or debt conversion. Be aware of high risk due to ongoing losses and negative equity.
- If You Are Not Currently Holding This Stock: Exercise caution. Wait for clearer signs of sustainable profitability, improved balance sheet, and successful execution of strategic pivots (especially in commodity trading and AI-driven recruitment services). The stock remains speculative until positive cash flow and profitability are demonstrated.
Disclaimer: This review is based strictly on disclosed financial data and management commentary. It does not constitute investment advice. Investors should consider their own risk tolerance, conduct further due diligence, and consult professional advisors before making investment decisions.
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