Chairman's Statement

Dear Shareholders,

On behalf of the board and management, I am pleased to present to you the annual report of AsiaMedic Limited (“AsiaMedic” or the “Group”) for the financial year ended 31 December (“FY”) 2023.

I am pleased to report that the Group's sustained efforts in proactively pursuing opportunities for expansion has borne fruit as AsiaMedic marked new milestones and achieved commendable results during the financial year under review.

The Group achieved record revenue of S$23.6 million for FY2023 following three consecutive years of revenue growth, representing an increase of 25% from S$18.9 million for FY2022. The increase in revenue followed the Group's expansion of its medical imaging and aesthetics businesses. After excluding reversal of impairment loss on non-current assets (net), the adjusted earnings before interest, taxes, depreciation, and amortization of the Group rose 32% from S$2.5 million for FY2022 to S$3.3 million for FY2023.

IMAGING BUSINESS

Diagnostic imaging and radiology services revenue increased by 72% from S$6.8 million for FY2022 to S$11.7 million for FY2023 as demand for the Group's services remained strong across the entire spectrum of healthcare providers, including general practitioners, specialist clinics and hospitals.

The increase in referrals from clinics and hospitals in FY2023 reflects AsiaMedic's trusted track record and its ability to provide tailored offerings to meet the individual needs and specific preferences of patients and their doctors.

In September 2023, the Group became the first in Asia Pacific to commence operations of the SIGNATM Hero 3T MRI scanner which delivers higher image quality with improved efficiency, comfort, and productivity. This milestone marks significant capacity expansion for the Group's diagnostic imaging and radiology services, and we will continue to invest in the latest technology to enhance the patient experience and maintain our position as a preferred provider of diagnostic imaging and radiology services.

WELLNESS BUSINESS

Medical wellness and health screening services revenue, comprising health screening at AsiaMedic's flagship centre at Shaw Centre and onsite healthcare projects, declined by 8% from S$10.2 million for FY2022 to S$9.4 million for FY2023, brought about mainly by a lower level of activities from the Health Promotion Board's school and community screening projects for FY2023 following the completion of certain projects. The reduction in revenue from onsite healthcare projects was mitigated by the Group's health screening business which continued to deliver steady performance amid a highly competitive landscape in FY2023.

The commendable performance of the Group's health screening business reflects its reputation as one of the leading health screening providers in Singapore. This is made possible by our expert team of medical professionals who are committed to providing quality services to our patients. Our centrally located flagship health screening centre at the intersection of Orchard Road and Scotts Road is fully equipped with a suite of advanced screening facilities and equipment for the convenience of our patients.

AESTHETICS BUSINESS

Medical aesthetic services revenue increased by 46% from S$1.3 million for FY2022 to S$1.9 million for FY2023 following the engagement of a locum doctor since July 2023. The maiden contribution post-acquisition of LE Private Clinic in August 2023 also contributed to the increase in medical aesthetic services revenue.

I am encouraged by the fruition of our efforts to grow the Group's aesthetics business which materialized in the second half of 2023. FY2023 was a positive year of development for the Group's aesthetics business as we continued to broaden the Group's revenue stream.

PRIMARY CARE BUSINESS

Primary healthcare services revenue increased by 11% from S$1.8 million for FY2022 to S$2.0 million for FY2023 as patient volume grew in line with the return of expatriates to Singapore. We continue to aim to create a distinctively privileged healthcare experience for our patients while leveraging Singapore's status as one of the best cities in Asia for expatriates.

OUTLOOK

Like the healthcare industry in general, the Group continues to face intense competition, a shortage of skilled manpower and rising manpower costs. We have intensified our efforts to mitigate the impact of these challenges by adopting new technology to enhance patients' experience, and improve workflows, efficiency, and patient care.

The Group is aware that continuous investment to stay contemporary with the latest medical technology and equipment will help to achieve and maintain the Group's position as a preferred choice for health screening and diagnostic imaging, and will continue to do so taking into consideration the Group's available resources. In February 2024, the Group replaced its CT scanner with the new generation model. Investments in latest technology and equipment will enhance the Group's ability to generate clinical outcomes with shorter scanning time and higher quality images and improve its patients' positive experiences.

The long-term prospects of the aesthetic services market hold significant potential as demographic trends and new consumer preferences in an ageing population continues to drive demand, while previously underserved segments such as men and millennials show growing interest in aesthetic services. In order to capture these opportunities, the Group will strive towards increasing the breadth and depth of its aesthetics expertise and service offerings. For the current financial year ending 31 December 2024, we target to fully integrate our medical aesthetics practices to provide better and wider range of aesthetic services to our patients.

Amidst an ageing population and an increase in chronic illnesses, Singapore's Healthier SG initiative signals the seriousness of the healthcare system's shift towards focusing on preventive health which relies on regular screenings. The rising awareness of preventive healthcare and the adoption of employee wellness programmes contributes positively to the long-term demand for the Group's established medical wellness and health screening services.

The Group intends to intensify its collaboration with insurance companies to open new opportunities for the Group's medical wellness and health screening services. In addition, we will also continue to strengthen the operations of our primary care clinic to enhance the patient experience.

IN APPRECIATION

On behalf of the Group, I would like to express our heartfelt gratitude to our many patients, clients and vendors for their continued trust and support. To all our staff, I am grateful for their hard work, sacrifices and dedication towards helping our patients achieve positive clinical outcomes. I would like to thank the Board and management for their contributions and invaluable guidance during the past year. I would also like to thank our valued shareholders for their unwavering support of the Group.

AsiaMedic recorded its highest-ever annual revenue for FY2023, and with your continued support, we look forward to achieving new heights in the years ahead.

Charles Wang
Non-Executive Chairman