AsiaMedic Limited Addresses Shareholder Concerns Ahead of 2026 AGM

AsiaMedic Limited has released a detailed response to substantial and relevant questions submitted by shareholders ahead of its Annual General Meeting (AGM) scheduled for 29 April 2026. The company, a prominent healthcare provider in Singapore, outlined its financial position, strategic investments, risk management approach, and future expansion plans. Below, we break down the key points and potential price-sensitive updates that shareholders should note.

1. Strengthening the Balance Sheet and Cash Position

• Cash and Borrowings: As at 31 December 2025, AsiaMedic held total cash and near-cash balances of approximately S\$9.7 million, comprising S\$5.7 million in cash and equivalents and S\$4.0 million in other financial assets. Total borrowings stood at S\$17.9 million, of which S\$9.4 million comprised lease liabilities (mainly for long-term rental of premises, such as the Novena Centre) and S\$8.5 million were actual borrowings, primarily for medical equipment.
• Accounting Impact: The company clarified that a significant portion of its borrowings are lease liabilities recognised under SFRS(I) 16 and not traditional debt. These represent future rental commitments, not cash borrowings, and are reflected as right-of-use assets and lease liabilities on the balance sheet.
• Prudent Financial Management: Management emphasised ongoing focus on prudent financial management, disciplined capital allocation, and steady operating cash flow generation. The company reiterated its commitment to maintaining a balanced and sustainable capital structure.

2. Earnings Fluctuations and Profit Sustainability

• Key Drivers: Earnings volatility in recent years was attributed to the ramp-up phase of the Novena Centre, which brought increased operating costs—especially manpower, depreciation, and lease expenses. One-off items, such as gains from the disposal and deconsolidation of the aesthetic business in FY2025, also contributed to fluctuations.
• Stable Core Performance: Despite these fluctuations, the core business remained robust. FY2025 revenue reached S\$35.2 million, up from S\$28.9 million in FY2024, mainly driven by growth in the diagnostic imaging segment, with health screening and primary care providing steady contributions.
• Future Outlook: As the Novena Centre continues to scale and utilisation improves, the company expects better operating leverage and more consistent financial performance over the medium to long term.

3. Performance of New Imaging Investments

• Novena Centre Ramp-up: Investment in the Novena Centre is seen as a key strategic move to strengthen diagnostic imaging capabilities and support long-term growth. The company acknowledged a typical ramp-up period for healthcare facilities, during which costs are incurred ahead of revenue stabilisation.
• Encouraging Progress: Management reported encouraging trends in utilisation and expects the centre to contribute meaningfully as patient volumes grow and utilisation rates improve.

4. Potential for Additional Funding and Shareholder Dilution

• No Immediate Need for Equity Fundraising: Based on current cash flow and liquidity, AsiaMedic does not foresee the need for new equity fundraising in the near term. The company expects to meet its operational and capital requirements with existing resources.
• Prudent Capital Approach: Any future funding needs, including potential equity issuance, will be carefully evaluated with consideration for shareholder value and possible dilution. The company remains committed to financial discipline and aligning funding decisions with strategic objectives.

5. Key Risks and Mitigation Strategies

• Operational and Cost Pressures: The healthcare sector faces manpower constraints and rising costs. The company is addressing these through efficiency improvements, resource optimisation, and disciplined cost management.
• Competitive Landscape: AsiaMedic operates in a highly competitive market, particularly in diagnostic imaging and healthcare services. It is responding by strengthening service quality, investing in advanced technology, and expanding referral networks.
• Risk Management: The Board and management continuously monitor risks as part of a structured risk management framework, aiming for balanced and sustainable growth.

6. Expansion Beyond Singapore

• Current Focus: The primary strategic focus remains on consolidating and maximising returns from Singapore operations, especially the recent investments in diagnostic imaging.
• Potential Overseas Expansion: While open to exploring overseas opportunities, the company stresses any expansion will be measured and likely involve partnerships or joint ventures. Funding for such ventures will be approached with prudence, factoring in financial position and capital allocation priorities.
• Shareholder Notification: Any material developments regarding expansion will be promptly disclosed in line with SGX listing requirements.

Potential Price-Sensitive Highlights

• The company’s clarification on its net debt position, largely affected by accounting standards rather than actual borrowing, may alleviate investor concerns regarding leverage.
• No immediate need for equity fundraising reduces the risk of shareholder dilution in the short term.
• Strong revenue growth in core segments and the steady ramp-up of new investments suggest positive momentum, which could impact market sentiment.
• Management’s openness to strategic overseas expansion, if materialised, could be a significant growth catalyst.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making investment decisions. The views expressed are based on the company’s public disclosures as of 24 April 2026 and may be subject to change.

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