Rich Capital Holdings says it is expecting to report a net profit for the 1HFY2026 ended Sept 30, reversing from a net loss in the same period the year before.
The anticipated net profit is mainly due to the gain on disposal of Rich Capital’s wholly-owned subsidiary, Rich Batam. The disposal was completed on May 13.
Rich Batam was sold to an independent third party, Yi Chengshu, for $1. Based on Rich Capital’s FY2024 financial results, the subsidiary has negative equity value of $0.16 million. This includes $0.17 million owed to the company and will be “forgiven” prior to the completion of the disposal.
Rich Capital also recorded a non-controlling interest relating to Oxley Batam, which Rich Batam owns 80% of, amounting to $1.08 million. The remaining 20% stake in Oxley Batam is held by Oxley International Holdings.
If the disposal had been completed on Sept 30, 2024, Rich Capital would have logged a gain on disposal of the same amount.
Rich Capital will release its 1HFY2026 results on or before Nov 14.
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Shares in Rich Capital closed flat at 0.1 cent on Oct 28.
