REPUBLIC HC(08357) - 2019 Q3 - 季度财报

Financial and Operating Highlights 2019 Third Quarter Financial Highlights For the nine months ended September 30, 2019, the Group achieved significant growth in revenue and gross profit, successfully returning to profitability, primarily due to the absence of one-off non-recurring listing expenses incurred in the prior year period, with no interim dividend declared by the Board 2019 Nine-Month Financial Summary | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 9.8 million Singapore Dollars | 7.6 million Singapore Dollars | +28.9% | | Gross Profit | 6.9 million Singapore Dollars | 5.1 million Singapore Dollars | +35.3% | | Profit/(Loss) After Tax | 1.3 million Singapore Dollars | (0.9) million Singapore Dollars | Returned to Profitability | | Dividend | None | None | - | - Performance turned profitable from a loss in the prior year period, mainly due to approximately 2.4 million Singapore Dollars in one-off non-recurring listing expenses incurred in the prior year period[8] Management Discussion and Analysis Management reviewed the business and financial performance for the period, outlining future prospects, with the Group operating a clinic network in Singapore under "DTAP" and "SA" brands, planning further expansion using IPO funds, and achieving profitability despite increased staff and operating expenses due to expansion Business Review and Outlook The Group operates medical and aesthetic clinic networks in Singapore under the "Dr. Tan & Partners (DTAP)" and "S Aesthetics (SA)" brands, with 9 clinics as of the reporting date, planning future expansion using approximately 9.1 million Singapore Dollars in net IPO proceeds, and focusing on cost control through technology while noting strong demand in niche markets like sexual health and infectious diseases - The Group operates 7 DTAP clinics and 2 SA aesthetic clinics in Singapore, with plans to open a new clinic in Bugis[29] - Approximately 9.1 million Singapore Dollars in net IPO proceeds are planned for business expansion and growth in Singapore[29] - Future strategic focus is on managing expenses, particularly by enhancing and leveraging technology to reduce labor intensity and control staff costs[29] Financial Review The period saw strong financial performance, with revenue increasing by 28.9% year-on-year due to existing service sales growth and brand awareness, gross margin improving from 67.6% to 70.6% due to effective drug cost control, and the company returning to profitability with a net profit of 1.3 million Singapore Dollars despite increased staff welfare and other operating expenses - Revenue increased by 28.9% from 7.6 million Singapore Dollars to 9.8 million Singapore Dollars year-on-year, primarily due to increased sales of existing services and market penetration[33] - Gross margin increased from 67.6% to 70.6%, mainly due to efforts to reduce drug costs used in treatments[34] - Staff welfare expenses and other operating expenses increased by 33.3% and 72.7% respectively, due to the recruitment of new staff and an increase in the number of clinics[35][36] - The company turned profitable with a net profit of 1.3 million Singapore Dollars from a loss of 0.9 million Singapore Dollars in the prior year period, mainly due to approximately 2.4 million Singapore Dollars in one-off non-recurring listing expenses incurred in the prior year period[37] Liquidity and Capital Position The Group primarily meets working capital needs through operating cash flow and shareholder contributions, holding approximately 11.9 million Singapore Dollars in cash and cash equivalents with no bank borrowings as of September 30, 2019, while the debt-to-equity ratio increased from 12.2% to 19.1%, and total employees grew from 36 to 53 Liquidity and Capital Position Summary | Metric | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 11.9 million Singapore Dollars | 12.4 million Singapore Dollars | | Bank Borrowings | None | None | | Debt-to-Equity Ratio | 19.1% | 12.2% | | Number of Employees | 53 | 36 | Unaudited Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the nine months ended September 30, 2019, the Group's total revenue reached 9.78 million Singapore Dollars, a 28.6% year-on-year increase, achieving a pre-tax profit of 1.61 million Singapore Dollars and a net profit of 1.27 million Singapore Dollars, reversing a prior year loss of 0.86 million Singapore Dollars due to revenue growth and cost control in the absence of significant listing expenses Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item (Singapore Dollars) | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Revenue | 9,780,985 | 7,606,621 | | Profit/(Loss) Before Income Tax | 1,606,407 | (864,338) | | Profit/(Loss) for the Period | 1,271,560 | (867,565) | | Basic and Diluted Earnings/(Loss) Per Share | 0.28 cents | (0.19 cents) | Consolidated Statement of Changes in Equity As of September 30, 2019, the Group's total equity increased to 13.85 million Singapore Dollars, primarily driven by the 1.27 million Singapore Dollars net profit recorded during the period, compared to 12.57 million Singapore Dollars at the beginning of the year - Total equity increased from 12,574,614 Singapore Dollars as of January 1, 2019, to 13,846,174 Singapore Dollars as of September 30, 2019[13] - The increase in equity is primarily due to the profit of 1,271,560 Singapore Dollars recorded during the period[13] Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations of the company's basic information, accounting policies, revenue composition, taxation, and earnings per share calculation, noting the company's GEM listing on June 15, 2018, its primary operation of medical centers in Singapore, adherence to International Financial Reporting Standards, and a Singapore income tax rate of 17% Revenue Composition The Group's total revenue of 9.78 million Singapore Dollars was entirely derived from medical services, with treatment services being the largest contributor at 5.75 million Singapore Dollars, followed by medical examination services at 3.04 million Singapore Dollars and consultation services at 0.99 million Singapore Dollars Revenue by Service Type | Revenue Source | Nine Months Ended Sep 30, 2019 (Singapore Dollars) | Nine Months Ended Sep 30, 2018 (Singapore Dollars) | | :--- | :--- | :--- | | Treatment Services | 5,753,490 | 4,899,188 | | Medical Examination Services | 3,040,290 | 1,848,500 | | Consultation Services | 987,205 | 790,145 | | Total | 9,780,985 | 7,537,833 | Earnings Per Share Basic and diluted earnings per share for the period were 0.28 Singapore cents, a turnaround from a loss of 0.19 Singapore cents per share in the prior year period, calculated based on a weighted average of 460,876,000 ordinary shares, with diluted EPS being identical to basic EPS due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation | Item | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company | 1,271,560 Singapore Dollars | (867,565) Singapore Dollars | | Weighted Average Number of Ordinary Shares | 460,876,000 | 460,876,000 | | Earnings/(Loss) Per Share | 0.28 Singapore cents | (0.19) Singapore cents | Corporate Governance and Other Information Directors' and Major Shareholders' Interests As of September 30, 2019, Dr. Tan Chee Siang, Chairman and Executive Director, held 75% of the issued shares through his wholly-owned Cher Sen Holdings Limited, making him the controlling shareholder, with no share options granted since the adoption of the share option scheme - Dr. Tan Chee Siang, Chairman and Executive Director, is deemed to have an interest in 390,000,000 shares, representing 75% of the company's issued shares[54][57] - These shares are held by Cher Sen Holdings Limited, which is wholly owned by Dr. Tan[57][61] - No share options have been granted by the company since the adoption of the share option scheme on May 18, 2018[53] Compliance and Governance The company complied with all applicable code provisions of the GEM Listing Rules' Corporate Governance Code during the reporting period, with an Audit Committee comprising three independent non-executive directors having reviewed the quarterly report, and directors adhering to prescribed standards for securities transactions, with no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the period - The company complied with all applicable code provisions of the Corporate Governance Code during the period[65] - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements and this report[70] - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[69]