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].