Beverly JCG Ltd. Financial Analysis – Net Profit Decline by 79%

Business Description

Beverly JCG Ltd. is incorporated in Singapore and primarily operates in the aesthetic medical and healthcare industry, trading and distribution of steel-related products, and investment management. The company operates predominantly in Singapore and Malaysia, with its subsidiaries engaging in aesthetic medical services, trading, and investment activities [[10]].

Industry Position and Market Share

The company is part of the growing aesthetic medical and healthcare industry in the Asia-Pacific region, which is expected to grow significantly. The company faces competition from other aesthetic service providers and healthcare facilities [[26]]. Its market share specifics are not detailed in the report, but the company shows efforts to expand its market presence and service offerings [[26]].

Revenue Streams and Customer Base

The primary revenue stream of Beverly JCG Ltd. is its aesthetic medical services, contributing significantly to its revenue. The company’s customer base includes individuals seeking aesthetic, cosmetic, and healthcare services [[12]].

Financial Statement Analysis

Income Statement

For the nine months ended 30 September 2024, the company reported a net loss of S\$3.15 million, compared to a S\$1.76 million loss for the same period in 2023, indicating a 79% increase in losses. Revenue decreased by 29% from S\$6.29 million to S\$4.47 million, primarily due to lower performance in the aesthetic medical segment [[2]].

Balance Sheet

As of 30 September 2024, the company’s total assets stood at S\$5.89 million, with liabilities at S\$8.53 million, resulting in negative net assets of S\$2.63 million. The significant decrease in assets was due to impairment losses on goodwill and intangible assets [[3]].

Cash Flow Statement

Net cash from operating activities was S\$1.02 million. The company utilized S\$0.03 million in investing activities and S\$0.63 million in financing activities, leading to an overall cash increase of S\$0.2 million during the period [[4]].

Dividend and Earnings

No dividend was declared or recommended for the financial period ended 30 September 2024 due to operational and financial cash needs [[26]].

Key Findings and Recommendations

Strengths

• Positive cash flow from operations indicates effective cash management despite the increase in net losses [[4]].

Risks

• Significant net loss increase and negative net asset position [[2], [3]].
• Uncertainty in securing qualified personnel affecting operations [[24]].

Special Activities

The company plans to raise approximately S\$5 million through equity and debt instruments to support acquisitions and improve its financial position [[11]].

Investment Recommendations

For Current Stockholders: Given the net loss increase and operational challenges, it might be prudent to hold off on further investments until the company demonstrates improved financial stability and successful implementation of its strategic initiatives.

For Potential Investors: Consider the investment only if you have a high-risk tolerance and are confident in the company’s strategic plans to improve its financial position and operations.

Disclaimer: This analysis is based on provided financial statements and should not be considered as financial advice. Investors should conduct their due diligence before making investment decisions.

Report Date and Financial Year

The report is dated 14 November 2024 and covers the financial period ending 30 September 2024 [[27]].

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