SBC Medical Group Holdings Conference Summary Company Overview - SBC Medical Group Holdings Inc. trades on NASDAQ under the symbol SBC and is headquartered in Irvine, California, and Tokyo, Japan. The company provides management services and products to cosmetic treatment centers [4][5]. Core Business and Performance - SBC primarily offers comprehensive management support services to franchise clinics, focusing on aesthetic medicine. The company generates income through franchise fees and has diversified its offerings to include orthopedics, ophthalmology, health treatment, and infertility treatment [5][6]. - The total number of franchise clinics has increased to 259, with a net addition of 36 clinics since the previous year [6]. - Despite severe competition in Japan's aesthetic medicine industry, the number of customers has steadily increased, reaching 6.3 million annually [7]. Financial Performance - In February 2024, SBC began restructuring its business, which included revising franchise fees. This led to an 18% year-on-year decline in total revenue [8]. - Increased point redemption by customers reduced revenue, impacting management service revenues, while procurement and rental revenue rose due to higher purchases of medical materials [9]. - The company acquired MB carrier lounge, adding Zoom clinic to its network, which operates six clinics known for customizable laser treatments [9][10]. Strategic Initiatives - SBC launched NIO Skin Clinic in April, targeting expert-level customers with advanced global treatments, which has quickly gained popularity [12]. - The company is enhancing its medical tourism strategy, particularly focusing on Chinese tourists, by increasing its presence on social media and hosting promotional events [13]. - SBC is concentrating on high-growth areas such as orthopedics and AG treatment, responding to Japan's aging demographics [14]. Management and Global Expansion - The company has strengthened its management structure in the U.S. by hiring experienced professionals from various industries [15][16]. - SBC is committed to expanding its global business, including launching Japanese language services in Singapore [16]. Financial Strategy and Shareholder Returns - SBC maintains a robust financial base with sufficient cash on hand for domestic and global growth, including M&A opportunities [17]. - The company is considering new share issuance and partial sales by the founder to improve liquidity and accessibility for a broader investor base [18]. - SBC conducted its first share buyback program from May to July, which positively contributed to its share price and liquidity [18]. Future Outlook - The company aims to strengthen its core business in Japan while expanding into general medical areas and establishing a solid foundation in the U.S. and Southeast Asia [28]. - SBC plans to balance growth investment with shareholder returns, prioritizing funds for growth while ensuring support from a wider range of investors [25][26]. Key Takeaways - SBC Medical Group Holdings is focused on expanding its aesthetic medicine services while diversifying into other medical fields. - The company is undergoing strategic restructuring to position itself for future growth despite recent revenue declines. - There is significant growth potential in the aesthetic medicine market in Japan, with only about 10% of the population currently utilizing these services [22]. - SBC is actively working on enhancing its brand visibility and liquidity to attract more institutional investors [18].

(活力中国调研行)中国唯一"医疗特区"加速开拓东南亚市场 中新社海南琼海9月24日电 (记者 张茜翼 贾靖峰)作为中国唯一的"医疗特区"，海南博鳌乐城国际医疗旅 游先行区(简称"乐城先行区")正加速开拓印尼、新加坡、老挝等东南亚国家的医疗旅游市场。 截至目前，86国人员可免签入境海南，直接利好乐城先行区的医疗旅游发展。据统计，今年上半年，乐 城先行区共接待国际游客约1800人次，主要集中在健康体检、医疗美容和中医服务等领域。 乐城先行区成立于2013年，依托"特许医疗、特许研究、特许经营、特许国际医疗交流"政策，已基本实 现医疗技术、装备、药品与国际先进水平"三同步"，成为国际创新药械进入中国市场的重要门户。截至 目前，该区已引进超过500种国内未上市、国外已上市的临床急需特许药械，落地运营医疗机构30余 家。(完) 来源：中国新闻网 编辑：王永乐 乐城先行区管理局医疗旅游部部长闫路恺24日受访时透露，借力"零关税"进口药械政策和特许食品政 策，乐城先行区的国际医疗旅游产品体系初具规模，已推出31款医疗旅游产品，覆盖心脑健康、关节修 复、五官科等多个专业领域。 8月6日，印尼游客来到海南博鳌乐城国际医疗旅游先 ...

博鳌乐城国际医疗旅游先行区不仅是医院集群，还是集"医、药、研、养、游"于一体的国际健康目的 地。乐城已与海南省内琼海、万宁等地合作，推出20多条医疗旅行线路，实现资源联动。 目前，已有30余家医疗机构开业，与20个国家和地区180多家药械企业建立合作关系，引进512种国际创 新药械，累计惠及患者18万余人次。乐城也被称为"希望之城"。琼海市委书记、乐城管理局党委书记周 长强表示，乐城拥有全球最新的药品和医疗器械，不少患者慕名而来，平均每年医疗流动人口比例在 30%。 作为全国唯一的医疗特区，海南博鳌乐城国际医疗旅游先行区可以说是健康界的"免税天堂"，已成为国 际创新药械加速进入中国市场的主要通道和吸引医疗境外消费回流的靓丽名片。 ...

Core Insights - The introduction of the Koli Ear Nexa system has enabled 100 hearing-impaired patients in China to regain their hearing since its launch in the Boao Lecheng International Medical Tourism Pilot Zone [1] - The Lecheng Pilot Zone has established itself as a key channel for international innovative medical devices and drugs to enter the Chinese market, having introduced 504 types of urgently needed foreign medical products that are not yet available domestically [1] - The Pilot Zone has launched 31 medical tourism products across various fields, supported by favorable policies such as "zero tariff" for imported medical devices, which injects new momentum into the medical tourism industry [2] Group 1 - The Lecheng Pilot Zone has become a major hub for international innovative medical products, achieving synchronization with international standards in medical technology, equipment, and pharmaceuticals since its establishment in 2013 [1] - The zone has over 30 operational medical institutions, creating a medical industry landscape led by top public hospitals and specialized international and domestic brands [1] - The Pilot Zone's policies allow for faster access to international advanced medical devices for patients with urgent clinical needs, significantly reducing the traditional clinical verification cycle [1] Group 2 - The Boao Yiling Life Care Center has launched various medical tourism products that have gained popularity among international tourists, offering services that combine traditional Chinese medicine with cultural experiences [2] - The center has attracted patients from countries such as the United States, Russia, and Canada, providing a diverse range of health management services that integrate both Eastern and Western medical practices [2] - The Lecheng Pilot Zone is actively expanding its international market presence by hosting promotional events in countries like Indonesia and establishing connections with local travel agencies and insurance companies [3] Group 3 - Future promotional efforts will extend to Southeast Asia, Europe, America, and Australia, enhancing the zone's international outreach [3] - The Pilot Zone is also working on partnerships with overseas insurance companies to facilitate cross-border insurance payments, improving the medical service experience for international visitors [3]

Core Viewpoint - The establishment of Tianjin Pengruili Hospital as China's first wholly foreign-owned tertiary hospital marks a significant milestone in the integration of foreign investment in the Chinese healthcare sector, aiming to provide high-quality medical services while addressing the challenges of profitability and patient attraction in a market dominated by public hospitals [4][6][12]. Group 1: Hospital Overview - Tianjin Pengruili Hospital features a modern design with hotel-like decor and advanced medical facilities, including a 3.0T MRI and 256-slice CT scanner, reflecting the high standards typically associated with foreign hospitals [3][4]. - The hospital has a total investment of 1 billion yuan and is equipped with 500 beds, aiming to provide a comfortable and efficient healthcare experience [3][4]. Group 2: Market Position and Challenges - The hospital's integration into Tianjin's medical insurance system allows for easier access to services, countering the perception that foreign hospitals are prohibitively expensive [4][5]. - Despite the advantages of foreign ownership, the hospital faces challenges in attracting patients, as public hospitals dominate the market, accounting for 83.5% of total patient visits in China [6][7]. Group 3: Strategic Vision - The hospital aims to diversify its patient base by not only serving expatriates but also local patients and medical tourists, inspired by successful models in countries like Singapore [12][13]. - Plans include enhancing service offerings through advanced technology and flexible payment options, with a focus on integrating more commercial insurance and high-end medical insurance networks [12][13]. Group 4: Leadership Insights - The CEO of the parent company, Chen Meilan, emphasizes the importance of adapting to local healthcare practices and understanding the career aspirations of Chinese medical professionals to improve the hospital's operational effectiveness [6][8]. - The hospital's leadership acknowledges the need for a long-term strategy to achieve profitability, recognizing that the healthcare sector is a slow and complex business [13].

Core Viewpoint - The article highlights the growing trend of medical tourism from Russia to China, particularly in cities like Heihe, where Russian patients seek dental and traditional Chinese medicine services due to lower costs and better service quality compared to Russia [3][4][5]. Medical Tourism Growth - Medical tourism in border cities like Heihe and Suifenhe is attracting a significant number of Russian patients, especially for dental care and traditional Chinese medicine [3][4]. - The cost of dental procedures in China is approximately one-third of that in Russia, making it a financially attractive option for Russian patients [4][10]. - In 2024, the number of Russian visitors to China reached 2.78 million, with a significant increase in flight connections facilitating this trend [5][10]. Economic Context - The depreciation of the Russian ruble and high inflation rates have led to a decline in disposable income for many Russians, prompting them to seek more affordable medical options abroad [4][44]. - Despite a reported GDP growth of 4.1% in Russia for 2024, the economy is primarily driven by defense spending, with consumer spending under pressure [4]. Local Impact - The influx of Russian patients has created a burgeoning medical service industry in Heihe, with local businesses adapting to cater to this new clientele [10][11]. - The local economy in Heihe has seen a growth of 26.48% in the tertiary sector in 2024, largely driven by services catering to Russian tourists [10]. Cultural Exchange - The article notes a cultural exchange where Russian patients are increasingly engaging with Chinese medical practices, such as acupuncture and traditional therapies, which they find effective [18][36]. - Russian patients often express satisfaction with the services received in China, leading to repeat visits and recommendations among their peers [46]. Challenges and Adaptations - The article discusses the challenges faced by local businesses in adapting to the changing economic landscape, including the need to adjust pricing strategies to accommodate the reduced spending power of Russian clients [44][46]. - Communication barriers remain a challenge, with many Russian patients relying on translation services to navigate medical consultations and treatments [34][35].

Group 1 - The Thai Ministry of Public Health has announced a strategic plan to promote the health industry, which includes measures such as popularizing the use of Thai herbal medicine, accelerating medical tourism development, and strengthening local manufacturing of medical devices [1] - The Thai government aims to establish a Health Economy and Policy Office to implement this strategic plan, with an expected economic value of 690 billion THB by 2025, contributing 3.39% to the country's GDP [1] - The Thai government has approved a strategy to develop Thailand into an international medical center from 2025 to 2034, focusing on health promotion services, medical treatment, academic research, and pharmaceutical products [1] Group 2 - Thailand has a long history of developing medical tourism, officially launching its strategy in 2004, with the aim of becoming a global health tourism hub [2] - In 2022, Thailand had nearly 39,000 medical institutions, with 64% being private, and ranked fourth globally in medical tourism revenue in 2023 [2] - The Thai government has extended the medical tourism visa to 90 days to facilitate international patients seeking medical care [2] Group 3 - The international appeal of Thailand's health industry is increasing, with a strategic partnership formed between Guangdong Panhua Blue Cross Health Management Co., Ltd. and Thailand's BWC Anti-Aging Center to promote market activities in anti-aging and healthcare [3] - Medical tourism in Thailand is attracting visitors from the Middle East, with an average spending of approximately 89,000 THB per visit, indicating the attractiveness of high-end medical tourism projects [3]