Camsing Healthcare Limited: 2Q & 1H FY2026 Financial Analysis and Investor Outlook

Camsing Healthcare Limited (“Camsing” or “the Group”) released its unaudited interim financial statements for the six months ended 31 July 2025. The report provides detailed insights into the Group’s operational performance, financial health, and strategic direction amidst ongoing restructuring and market challenges.

Key Financial Metrics

Note: “N.M.” means “not meaningful”, due to changes in direction (profit to loss).

Historical Performance Trends

• The Group has continued to record losses over the reporting periods. The net loss for 6MFY2026 was S\$423,000, marginally higher than the S\$412,000 loss in 6MFY2025.
• Revenue declined 21% YoY in 6MFY2026 due to retail outlet closures.
• Gross margin for the latest quarter rose to 57% from 51% YoY, driven by a greater proportion of higher-margin sales, but 1H gross margin decreased to 54% from 56% due to product mix shifts.
• Operating expenses reduced substantially, especially in marketing and distribution (down 44% YoY for 1H), reflecting cost controls and rationalization of the retail footprint.
• Cash flow remains tight, with cash and cash equivalents falling to S\$37,000 from S\$128,000 at the start of the period. The Group continues to rely on shareholder loans to maintain liquidity.

Balance Sheet and Capital Structure

• Net liabilities widened to S\$5.68 million as at 31 July 2025, from S\$5.26 million at 31 January 2025.
• Total borrowings increased to S\$2.79 million (from S\$2.18 million), with additional loans from major shareholders and third-party lenders to fund working capital.
• The Group issued S\$2.5 million of zero-coupon mandatory convertible bonds in July 2024, classified as equity—potentially dilutive with up to 50 million shares issuable at conversion.
• No changes occurred in ordinary share count during the period; no treasury shares outstanding.

Corporate Actions and Related-Party Transactions

• In the past year, the Group raised S\$3 million in equity and S\$2.5 million via convertible bonds to shore up its balance sheet.
• Further loans from major shareholders and third parties were executed to support liquidity.
• Unusual fund flows and related-party transactions remain under scrutiny, especially concerning historical balances with I-Nitra Consulting Limited. Auditors have qualified their opinion on these legacy consignment arrangements, though no conclusive evidence of round-tripping was found.
• No share buybacks, mandates, or asset revaluations occurred.

Exceptional Items and Expenses

• The 1H 2025 period included a one-off gain on lease termination of S\$278,000.
• Interest expenses were lower due to smaller outstanding loan balances and waived interest on certain borrowings after resumption of trading.

Events Affecting Business

• Retail footprint reorganization: Eight outlets were closed between March and August 2025, leaving only four operational. The Group is redirecting customers to remaining outlets and its online platform.
• Online channel growth is cited as a positive development, mitigating losses from physical store closures.
• No significant litigation, natural disasters, or regulatory changes were reported.

Chairman’s Statement

“With uncertain global economic conditions, the Company anticipates consumer sentiment may be adversely impacted in the coming quarters. Nonetheless, we will continue to execute our core strategies in developing new products and expanding into new sales channels, albeit doing so with prudent cost management principles.

Based on our ongoing review of the core business, the Company has begun reorganizing the retail portfolio at the start of FY2026 by closing down loss-making outlets while expanding our presence online. It is worth highlighting that despite multiple retail closures, the Company managed to retain most of its customers via redirection to other outlets or digital channels. On the other hand, our online channel also shown promise with an improved growth during the period. As a result, we are cautiously optimistic that the Group’s performance should see improvement.”

The tone is cautiously optimistic, stressing ongoing restructuring, cost management, and digital expansion as key drivers for future improvement despite current losses.

Directors’ Remuneration

• Key management compensation for Q2 FY2026 was S\$216,000 (director: S\$95,000, other key management: S\$40,000).
• No interested person transactions exceeding S\$100,000 during the period.

Dividends

• No interim or final dividends were declared for the period, in line with ongoing losses and liquidity constraints.

Outlook & Risks

• The Group is reliant on ongoing shareholder support to meet its obligations and continue as a going concern.
• Liquidity remains extremely tight, with low cash reserves and continued dependence on loans.
• Restructuring has reduced costs, but revenue continues to trend lower as retail outlets are shuttered.
• The online channel’s growth provides some hope, but the Group remains loss-making with negative equity.
• Auditor’s qualified opinion on legacy transactions is a risk factor for investor confidence.

Conclusion & Investor Recommendations

Summary: Camsing Healthcare Limited remains in a weak financial position, with continuing losses, negative equity, shrinking cash balances, and heavy reliance on shareholder loans. Strategic actions to close loss-making outlets and pivot to online sales have reduced some operating costs, but revenue remains under pressure. The Chairman expresses cautious optimism for future improvement, but risks are elevated due to qualified audit opinions and unresolved legacy issues.

Investor Recommendations

• If you currently hold this stock: Consider whether your investment thesis is based on a successful turnaround and digital growth. Given the ongoing net losses, negative equity, tight liquidity, and auditor’s qualified opinion, risk is high. If your risk tolerance is low or you require near-term returns/dividends, you may wish to reduce your exposure. If you believe in the restructuring plan and can withstand volatility, monitor the next few quarters closely for signs of sustained improvement.
• If you do not currently hold this stock: Exercise caution before initiating a position. The stock may offer turnaround potential if management delivers on cost control and online channel growth, but the financial risks are considerable, and visibility on profitability remains low. Wait for clear evidence of a return to positive cash flow or profitability before considering entry.

Disclaimer: This analysis is based solely on the contents of Camsing Healthcare Limited’s interim financial statements. It does not constitute investment advice. Investors should conduct their own due diligence and consider their personal financial situation and risk tolerance before making any investment decision.

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