KUALA LUMPUR: DC Healthcare Holdings Bhd
remains optimistic about its prospects, supported by competitive strengths that are poised to foster sustainable growth in a dynamic market.
The aesthetic medical services provider said it is committed to enhancing its standing in the medical aesthetic sector through targeted business strategies.
DC Healthcare said these efforts include expanding clinics in both the southern and northern regions of Malaysia, attracting highly skilled and experienced personnel, and consistently updating medical equipment with the latest technology to support growth and enhance service quality.
In the first quarter ended March 31, DC Healthcare posted a net loss of RM7.9mil, or loss per share of 0.79 sen against a net profit of RM2.3mil, or 0.30 sen achieved last year.
The group said the losses reflects higher administrative expenses, which included an increase in marketing costs amounting to RM1.8mil, aimed at bolstering the group's market presence and customer engagement strategies.
During the quarter, its revenue dipped to RM9.4mil from RM16.8mil posted a year prior, primarily attributed to a lower redemption rate in aesthetic services.
Despite the lower redemption rates, the Group’s contract liabilities have increased to RM9.6mil, up from RM3.7mil as of Dec 31, 2023.
DC Healthcare said contract liabilities consist of prepaid packages that have not yet been redeemed and recognised as the group's revenue. These contract liabilities represent obligations to deliver services in the future.
"Despite a lower redemption rate in our aesthetic services, our ability to maintain strong cash collections underscores the effectiveness of our customer relations and the intrinsic value of our services.
“We are taking strategic steps to adjust to market dynamics and enhance our service offerings. We also believe that effective management of the contract liabilities will ensure long-term financial health and customer satisfaction,” managing director Dr Chong Tze Sheng said in a statement.
