Capital World 1H FY2026 loss widens to RM1.6m with no revenue booked; going-concern hinges on RM370m Johor asset sale
Summary:
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The Group reported no revenue for the six months to 31 December 2025 versus a RM1.0m reversal of sale in the prior period, resulting in a net loss of RM1.6m, almost double last year’s RM0.8m loss as other income normalised.
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General and administrative expenses stood at RM1.6m after being offset by a RM2.05m reversal of trade receivable impairment and RM0.08m unrealised FX gain, compared with RM1.0m reported previously on larger FX gains and write-backs.
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Capital World remains asset-rich with RM325.2m in total assets, including RM109.4m of inventory properties and RM199.7m of non-current assets held for sale, supporting net assets of RM141.1m and NAV of 0.88 sen per share.
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The Group’s ability to continue as a going concern depends on completing the SPA to sell its Johor properties, for which RM96m (about 26% of purchase consideration) of deposits have been received, and securing payment deferrals totalling roughly RM27.2m from key creditors.
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Operating cash outflow narrowed sharply to RM0.5m, aided by impairment reversals and working-capital management, while RM2.0m earnest deposit inflow lifted cash and cash equivalents (excluding RM3.0m frozen by MACC) to RM2.3m.