Financial Analysis Report: Beverly JCG Ltd. (Net Profit Decline)
Company Overview
Beverly JCG Ltd. is a Singapore-incorporated company with a presence in the aesthetic medical and healthcare segment in Malaysia. The company’s core business operations include providing medical and healthcare services.
Business Segments and Geographic Footprint
The company operates in the aesthetic medical and healthcare segment, primarily in Malaysia.
Industry Position and Competitors
The report does not provide detailed information on the company’s position within the industry, its competitors, and its market share.
Revenue Streams and Customer Base
The company’s revenue streams are not explicitly stated in the report. However, it is mentioned that the financial performance of the aesthetic medical and healthcare segment in Malaysia is expected to continue to improve.
Financial Statement Analysis
Income Statement
The company incurred a net loss of S$5,808,000 for the financial year ended 31 December 2024, compared to a net loss of S$2,412,000 in 2023.
The net loss increased by S$3,396,000, indicating a decline in profitability.
Balance Sheet
The company’s current liabilities exceeded its current assets by S$5,843,000 as at 31 December 2024.
The company was in a capital deficiency position of S$5,342,000 as at 31 December 2024.
Cash Flow Statement
The report does not provide a detailed cash flow statement.
Key Facts and Investor Action
The company’s independent auditor, UHY Lee Seng Chan & Co, has issued a disclaimer of opinion on the financial statements due to material uncertainties on the company’s ability to continue as a going concern.
The company’s directors believe that the use of the going concern assumption is appropriate, citing various assumptions and measures, including:
Raising additional capital of S$900,000 through share subscription agreements.
Capitalization of debts pertaining to directors’ fees and salaries amounting to S$608,000.
Financial support undertaking letter from Dato’ Ng Tian Sang @ Ng Kek Chuan to provide continuing financial cash flow support for the next 18 months.
Dividend and Earnings
No dividend is proposed.
Special Activity or Action
The company is taking steps to improve its profitability, including:
Raising additional funds through equity and debt instruments to augment its cash flows.
Making further acquisitions to generate additional revenue.
Report Date and Financial Year
The report date is 14 April 2025.
The financial year reported is for the period ended 31 December 2024.
Recommendation
Based on the analysis, we recommend that investors currently holding this stock exercise caution and closely monitor the company’s progress in addressing its material uncertainties and improving its profitability.
For investors currently not holding this stock, we recommend avoiding investment at this time due to the high level of uncertainty and risk associated with the company’s ability to continue as a going concern.
Disclaimer
The recommendation is based solely on the information provided in the report and should not be considered as investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
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