DC HEALTHCARE ANNOUNCES FY2023 Q3 FINANCIAL PERFORMANCE

Group Navigates Market Challenges While Maintaining Focus on Strategic Growth and Expansion

KUALA LUMPUR, 30 NOVEMBER 2023 – DC Healthcare Holdings Berhad ("DC Healthcare" or the "Group"), an aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures, today unveiled the financial results for the third quarter ended 30 September 2023 (3Q FY2023). The Group reported a revenue of RM15.52 million, with aesthetic services contributing approximately 84.28% to the total revenue.

This quarter, while DC Healthcare encountered a loss before tax of RM3.13 million, this was primarily due to one-off IPO-related expenses amounting to RM3.85 million. When these unique, non-recurring costs are set aside, the Group's core operations demonstrated remarkable resilience, achieving a Profit from Operations of RM1.11 million. This performance highlights the underlying strength and robustness of DC Healthcare’s business model, reflecting its potential for continued growth and success in the aesthetic medical industry.

For the quarter ended 30 September 2023, DC Healthcare does not have a comparative analysis against the prior year's results.

In a quarter-on-quarter comparison, DC Healthcare experienced a slight revenue decrease to RM15.51 million from RM17.89 million. This was mainly attributed to lower aesthetic service sales, relatively balanced by gains in general medical services and skincare products. The quarter saw a shift to a loss before tax of RM3.13 million from a profit of RM5.27 million in the preceding quarter. This was due to increased staff costs, change in bookings trend, and additional expenses associated with new tenancies and IPO activities. The Group is proactively implementing cost control measures and pursuing outlet expansion strategies to enhance the Group’s market position.

Following the conclusion of this quarter, DC Healthcare has undertaken key strategic initiatives to enhance the Group’s market presence. A significant move in this direction is the acquisition of I Bella Sdn. Bhd. (“I Bella”), which diversifies the Group's service offerings and extending reach in the Malay market. This acquisition is partially financed through the issuance of shares at RM0.580 each, a figure that represents a premium over the current share price. The acquisition will also strengthen DC Healthcare’s portfolio with RM11.4 million profit guarantee for the financial years ending 31 March 2024 and 2025.

In addition, the Group has proposed a reallocation of RM15.0 million from IPO proceeds to fund this acquisition, a strategic step to broaden its market scope. Alongside this, DC Healthcare is issuing 249.08 million free warrants and establishing an Employee Share Option Scheme (“ESOS”). These initiatives collectively underscore the Group's commitment to rewarding its existing shareholders (excluding I Bella acquisition issuing shares) and employees, paving the way for future expansion and value creation. The multiple proposals are subject to Bursa Securities and shareholders’ approval.

Dr. Chong Tze Sheng, Managing Director of DC Healthcare, reflected on the quarter and the Group's future strategy, stating, “Our results for Q3 FY2023 are foundational for what is set to be a period of transformation at DC Healthcare. The acquisition of I Bella, along with our initiatives like the bonus warrant issue and ESOS, heralds an exciting phase of expansion. These strategic moves are aligned with our goal to enhance our service offerings and shareholder value. As we step into this new phase, we’re well-equipped to harness the opportunities presented by the rapidly growing aesthetic medicine market in Malaysia.”

With the aesthetic medicine market projected to grow at a CAGR of 18.8% up to 2027, DC Healthcare is strategically positioned to capitalise on this growth, promising a bright future for the company in the dynamic healthcare landscape.