Camsing Healthcare Responds to SGX Query on Going Concern Status

Key Points from the Report

• SGX Query on Financial Health: The Singapore Exchange (SGX-ST) raised concerns regarding the Group’s ability to continue as a going concern after reviewing the unaudited financial statements for the year ended 31 January 2026. The query was prompted by the Group’s low cash reserves, high current liabilities, and reported net losses.
• Financial Position:
  • Current assets: \$718,000
  • Cash and cash equivalents: Only \$40,000
  • Current liabilities: \$5.99 million (of which \$2.3 million are borrowings; \$3.0 million are trade and other payables)
  • Net loss for the year: \$910,000
  • Net cash used in operating activities: \$381,000
• Board’s Assessment: Despite the challenging figures, the Board believes the Group can continue as a going concern and meet its short-term obligations as they fall due. This assessment is based on several key factors (detailed below).

Details Investors Must Know

1. Shareholder Support: The Board highlighted a critical factor underpinning their confidence—a formal undertaking from a controlling shareholder to provide or procure the provision of necessary financial support. This includes both past and ongoing shareholder loans, some of which are interest-free, indicating strong backing from major stakeholders. This continued financial support is a major stabilizing force and likely to be price sensitive, as withdrawal of such support could have immediate implications.
2. Cost Reduction Measures: The Group has implemented aggressive cost-saving strategies, including the closure of loss-making retail outlets and reduction in payroll expenses. These measures have already led to a significant reduction in operating costs, improving the Group’s ability to manage its cash flow.
3. Growth of E-commerce Revenue: Despite retail closures, the Group has successfully redirected customers to other outlets and digital channels. The Board notes successful growth in the Group’s e-commerce revenue, which is expected to be maintained in the next financial year. This shift towards digital could be a positive signal for long-term sustainability and growth.
4. Customer Retention: Most customers have been retained despite the closure of multiple physical outlets, which bodes well for revenue stability.
5. Potential Strategic Partnerships: The Company is in discussions with potential strategic partners to explore new revenue streams. Any positive developments here could be materially significant and affect the share price once announced.

Important Considerations and Price Sensitive Information

• Ongoing Shareholder Support: The Group’s continued operation is heavily reliant on shareholder loans and support. Any change in this support could have immediate and significant effects on the share price.
• Liquidity Concerns: With only \$40,000 in cash, the Group’s liquidity position remains tight. Investors should closely monitor future announcements regarding cash flow and funding.
• Cost Management and Online Expansion: The closure of retail outlets and shift towards digital sales has reduced costs and allowed the Group to retain customers. This transition may affect future revenue composition and profitability.
• Strategic Partnerships: Negotiations with potential partners could result in new opportunities or capital inflow, which would be price sensitive once details are released.

Conclusion

The Company’s response to SGX’s query provides reassurance that, despite weak liquidity and ongoing losses, significant shareholder support, cost-cutting initiatives, and a successful shift to e-commerce underpin the Board’s confidence in continuing as a going concern. However, the Group remains highly dependent on continued shareholder support and the outcome of ongoing partnership discussions. Investors should stay alert for further announcements, as new developments could materially impact the Company’s valuation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information herein is based on unaudited financial disclosures and Company responses as at 20 April 2026. Market conditions and Company prospects may change without notice.

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