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Canadian Halal Investor.

Screened October 1, 2026 · TSX: QRC · Q3 FY2026 results (nine months ended May 31, 2026)

FAIL

Is Queen's Road Capital Investment Ltd. (QRC) halal?

Queen's Road Capital Investment Ltd. (TSX: QRC) is a Hong Kong-based, dividend-paying investment company that finances resource companies — primarily through interest-bearing convertible debentures with coupons of 8–12%, paid in cash and/or shares. The business itself is conventional interest-based finance. Interest income on convertible debentures of ~US$15.6M is ~10.1% of ~US$154.0M total income for the nine months ended May 31, 2026, over the ~5% ceiling. Interest-bearing debt of ~C$43M is ~5.8% of a ~C$743M market cap (passes); cash of ~US$5.6M is ~1.0% of market cap (passes). Result: FAIL on the non-compliant-income gate. Data from Q3 FY2026 interim filings, screened October 1, 2026.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — flagged

QRC (formerly Lithion Energy Corp.; change of business to an investment issuer completed February 2020; redomiciled to the Cayman Islands; listed on the TSX since July 6, 2022) describes itself as a resource-focused investment company acquiring and holding securities for long-term capital appreciation, with a stated focus on convertible debt securities of resource issuers in advanced development or production located in safe jurisdictions. Its current debenture book includes US$70M of Moxico Resources (11.0% coupon), US$25M of ATHA Energy (12.0%), US$30M of Gold Royalty (10.0%), US$70M of NexGen Energy (9.0%), US$20M of Contango (9.0%), plus IsoEnergy, Los Andes Copper and Challenger Gold debentures at 8–10%. No alcohol, gambling, weapons, or pork segments are disclosed — but earning interest on conventional loans is the core of the business model itself, which is what the income gate measures.

Gate two: the ratios — interest income fails

The FAIL comes from the interest-income gate alone; the debt and cash gates pass with wide margins.

What other screeners say

The bottom line

This screener gives Queen's Road Capital Investment Ltd. (TSX: QRC) a FAIL. Its debt (~5.8% of market cap) and cash (~1.0% of market cap) both pass — but the company is, at its core, an interest-based lender to resource companies, and that interest income (~US$15.6M, ~10.1% of total income for the nine months ended May 31, 2026) is over the ~5% ceiling. Because the income stream is structural to QRC's stated investment strategy, a flip would require the company to change its business, not just its balance sheet. Snapshot dated October 1, 2026; re-checked quarterly after earnings.

Sources

Related screeners

Frequently asked questions

Is Queen's Road Capital (QRC) halal?

Our screener gives Queen's Road Capital Investment Ltd. a FAIL screening result. QRC is a Hong Kong-based, resource-focused investment company whose core strategy is investing in interest-bearing convertible debentures of resource companies (coupons of 8–12%, paid in cash and/or shares). The decisive factor is the non-compliant-income gate: interest income on convertible debentures of ~US$15.6M is ~10.1% of ~US$154.0M total income for the nine months ended May 31, 2026, over the ~5% ceiling. Interest-bearing debt of ~C$43M is ~5.8% of a ~C$743M market cap (passes); cash of ~US$5.6M is ~1.0% of market cap (passes).

Why does Queen's Road Capital fail the screen?

QRC's business model is conventional interest-based finance: it lends to resource companies via convertible debentures and earns interest as a core, recurring revenue stream. For the nine months ended May 31, 2026, the company reported interest income on convertible debentures of US$15,593k against total income from investments of US$154,035k — about 10.1%, roughly double the ~5% AAOIFI-style ceiling. Its debenture book carries coupons such as 11.0% (Moxico, US$70M), 12.0% (ATHA Energy, US$25M), 10.0% (Gold Royalty, US$30M) and 9.0% (NexGen, US$70M).

Do Queen's Road Capital's debt and cash ratios pass?

Yes. Interest-bearing debt is modest: borrowings of ~US$31.4M (a secured margin loan at May 31, 2026, up from US$29.1M at August 31, 2025) plus long-term lease liabilities of ~US$0.2M — roughly US$31.6M, about C$43M, which is ~5.8% of a ~C$743M market cap (C$14.14 × ~53.96M shares outstanding), well under the ~33% ceiling. Cash and cash equivalents of US$5,598k at May 31, 2026 are ~1.0% of market cap, also under the ~33% ceiling. Only the interest-income gate fails.

What do Zoya, Musaffa and ShariaPortfolio say about Queen's Road Capital?

As of October 1, 2026: Zoya's screening data is app-gated and we found no public QRC page, so Zoya coverage cannot be confirmed or denied; Musaffa publishes per-stock pages for TSX tickers but site search returns zero results for QRC, so Musaffa does not appear to cover it; ShariaPortfolio has no public per-stock screener database. Our screener reports its own figure-by-figure analysis above.

Could Queen's Road Capital become halal?

Unlikely in the near term. The FAIL is structural, not a near-miss: earning interest on convertible debentures is QRC's stated core investment strategy, and that interest income (~10.1% of total income) would need to fall below ~5% — which would require the company to change what it does, not just pay down a loan. Debt and cash both pass with wide margins, so the income gate is the binding constraint. Re-screen quarterly after earnings.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).