Small Cap Asia and Beverly JCG Interview: Revolutionising Aesthetic Medicine – A Strategic Vision for Beverly JCG with CEO Dato’ Francis Ng

James Yeo: “Can you provide a detailed overview of Beverly JCG Ltd’s (BJCG) evolution and strategic transformations since its inception, particularly focusing on the key acquisitions and expansions and explain how these moves align with the company’s vision of becoming a major player in the aesthetic and healthcare industry in the region?”

Dato’ Ng: “BJCG has undergone several strategic shifts and significant acquisitions. It was established as Albedo Limited in 2005 as an industrial products trading company before it ventured into the healthcare sector by investing in China Medical (International) Group Limited (CMIG) in 2016. In January 2019, the company was renamed JCG Investment Holdings Ltd.”

In Nov 2019, it acquired 51% of Beverly Wilshire (BW) group of companies, which operates a branded chain of aesthetics medicine, plastic surgeries, dental clinics, and regenerative stem cell medicine, including hair transplants in Malaysia in Kuala Lumpur, Klang Valley and Pelating Jaya, Bangsar, Ipoh and Johor Bahru.

The Ng family, headed by myself, was the controlling shareholder of BW group, with key doctors as my shareholders. BJCG recently acquired two aesthetic and beauty spa clinics, including Dr BK Kim, in 100 AM Mall Amara Hotel in Tanjong Pagar Singapore CBD. This will start our first foray into Singapore and will contribute Singapore revenue to BJCG.

This will also position BJCG as a regional player in aesthetic medicine and have Singapore as our business headquarters. We are also cautiously venturing into Indonesia, Vietnam, and China via mergers & acquisitions (M&As) to augment the company’s profit.

Recently, BJCG acquired the balance of 49% of BW Group, ensuring the shareholders’ goals and objectives are fully aligned. This acquisition is a significant milestone for the company and shall further strengthen the BW brand in Singapore and the region to make the BW brand a household word.

The decision to list the company’s shares in Singapore was strategic, leveraging Singapore as a centre of medical excellence and its reputation as an international financial centre. Through these transformations and strategic decisions, the company’s aim has always been clear – to become a major player in the aesthetic and healthcare industry in the region.”

James Yeo:

“How has BJCG’s financial performance evolved post-acquisition, and what strategies are being implemented to maintain profitability and expand growth opportunities, particularly in Malaysia and regionally?”

Dato’ Ng:

“BJCG recorded a revenue of about S$10.5 million in FY2022. Despite the global pandemic, BW made its maiden profit in 2021, particularly through our Malaysian operations.

We aim to solidify our regional presence and explore new profitable avenues, maintaining a strong performance while embracing growth opportunities.”

James Yeo:

“Could you explain the rationale and strategic significance behind the 50:1 share consolidation and how this move enhances the company’s market appeal, share liquidity, and overall financial strategy in preparation for future growth initiatives?”

Dato’ Ng:

“The share consolidation, at 50:1 (consolidating every 50 ordinary shares into one ordinary share), will reduce the issued shares from 29.1 billion to about 582.2 million. This is a strategic move to enhance our market appeal and improve the share liquidity and volatility.

It’s a step to recalibrate our share structure, making our stock more attractive and meaningful to investors. This consolidation is part of a broader strategy to fortify our financial foundation and prepare for future growth initiatives.”

James Yeo:

“Can you elaborate on the structure and objectives of the Rights Cum Warrants Issue at a 3:1 ratio, particularly in the context of the recent share consolidation, and explain how this initiative aims to attract investment and support BJCG’s growth strategies?”

Dato’ Ng:

“In our recent Rights Cum Warrants Issue, structured at a 3:1 ratio following the share consolidation, we’ve set an advantageous issue price of S$0.035 per Rights Share, a significant reduction from the initially announced S$0.05. This new issue price is strategically placed at a 30% discount to the post-consolidation last traded price of S$0.05 per Share and about 24% below the theoretical ex-rights price of S$0.046 per Share.

We’re offering free detachable Rights Warrants with an exercise price of S$0.051 for each Warrant Share, compared to the previously announced S$0.06. This exercise price represents a modest 2% premium over the post-consolidation last traded price and is approximately 10% higher than the theoretical ex-rights price.

These adjusted prices for both the Rights Shares and the Warrants are designed to enhance the appeal of our offering to investors, aligning with our strategic goal of bolstering BJCG’s growth and expansion, particularly in the wake of our recent share consolidation. We believe this initiative is pivotal in attracting investment and fortifying our market position.”

James Yeo:

“Could you describe BJCG’s philosophy and approach towards service and safety in the healthcare sector, and how does this ethos contribute to the company’s distinction in the competitive aesthetic market?”

Dato’ Ng:

“We are a branded, fully integrated healthcare outfit. And our philosophy is that we always provide the Best 5-star services and practice safety first.”

James Yeo:

“Could you discuss how investors may underappreciate the share consolidation and Rights Cum Warrants Issue in terms of their potential to enhance the company’s market dynamics and attract strategic long-term investment, especially considering your growth projections from 2024 onwards?”

Dato’ Ng:

“Some investors may not fully recognise BJCG’s growth potential. Our share consolidation and subsequent Rights Cum Warrants Issue are geared towards creating a more dynamic market for our shares and attracting long-term, strategic investors.

By setting an attractive post-consolidation Rights share base price, good M&As, and a well-defined strategic alliances plan, BJCG will do better from 2024 onwards.”

James Yeo:

“As BJCG navigates its strategic initiatives and market developments, what message would you like to convey to our readers about the company’s direction, its approach to creating stakeholder value, and the opportunities it presents for investors in its ongoing transformation and growth?”

Dato’ Ng:

“While share consolidation often leads to initial market reactions, we are confident about our strategic direction. We have several key initiatives underway that should positively influence our stakeholders’ value.

Our approach goes beyond mere market trends; we are actively shaping our future with a clear strategic vision, a dedicated team, and a commitment to growth. BJCG represents a solid investment choice and a journey of transformation and success.”