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HC Surgical Specialists: Responding to SGX Queries Download PDF

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HC SURGERY SPECIALISTS LIMITED

Incorporated into the Republic of Singapore

Registration No. 201533429G

ANSWER TO SGX QUESTIONS

The Board of Directors (the “Plank“) of HC Surgical Specialists Limited (the “Company” and with its subsidiaries, the “Band“) would like to announce its responses to questions raised by Singapore Exchange Securities Trading Limited (the “SGX-ST“) on August 4, 2022 (“SGX-STQueries“) in connection with the Company’s August 3, 2022 announcement relating to the August 3, 2022 Straits Times article “SMC Seeks Longer Suspension for 2 Physicians for Sexual Exploitation of Patient” ( the “Announcement“) as following:

Unless otherwise specified, capitalized terms used in this announcement shall have the same meaning as in the Announcement.

Query 1

Please provide details of the findings of the Singapore Medical Council Disciplinary Tribunal (“CMS“), including when it was concluded/when the Society and/or Dr. Julian Ong were made aware of these findings. Please explain why an announcement was not made sooner.

Company response

In April 2022, the Board was informed by Dr Ong of the 8-month suspension by the SMC Disciplinary Tribunal (“DT Sentence“) and that he was in the process of appealing against this sentence DT (the “Call“).

The Board had a discussion and concluded that no announcement was necessary at this time for the following reasons:-

  1. The DT sentence is classified by the SMC as “private and confidential” and it is important to allow due process to take its course until the appeal is completed;
  2. As the appeal process is ongoing, the DT award is not binding on Dr. Ong until it is completed and as such is not a material development until its conclusion. ;
  3. Dr. Ong is still permitted to continue his medical practice while the appeal is pending subject to any stipulations imposed by the SMC to which he continues to adhere; and
  4. The Group’s business and operations have not been affected since Dr Ong’s SMC complaint was first published in the Straits Time in April 2020 (see table below). As the Group is constantly seeking to grow its business, the Company has also acquired Dr. Goh Minghui, who took up his post in July 2020, to strengthen the Group’s pool of doctors.

S$’000

Financial year

Financial year

Financial year

ended May 31, 2020

ended May 31, 2021

ended May 31, 2022

(“FY2020“)

(“FY2021“)

(“FISCAL YEAR 2022“)

(retirement)

Group turnover

16,723

23,358

19,311

Group profit

at

parent owners

3,987

8,000

6,379

The table above shows the increase in Group revenue from approximately S$16,723,000 in fiscal year 2020 to approximately S$19,311,000 in fiscal year 2022; and profits for the owners of the parent company increased from approximately S$3,987,000 in fiscal year 2020 to approximately S$6,379,000 in fiscal year 2022. Fiscal year 2021 was a exceptional as the Group experienced pent-up demand for its medical services after the lifting of the circuit breaker measures on June 2, 2020.

The Group had already written down the goodwill on Dr. Ong’s company, Julian Ong Endoscopy & Surgery Pte. ltd. (“JOES“) of S$722,000 in fiscal year 2020 and S$745,000 in fiscal year 2022, representing less than 5% of Group revenue for the respective fiscal years, in accordance with applicable accounting policies as described in its financial statements.

In addition, as announced on December 31, 2020, the Company had signed a revised sale and purchase agreement with Dr. Ong to amend the terms relating to the acquisition of the remaining 30% stake in JOES, in the awaiting the outcome of the SMC investigation, in order to protect the Company’s interests. Please refer to the December 31, 2020 announcement for more details.

Query 2

Please provide the name of the Board of Directors and Nominating Committee (“CN“) assessment and justification of the suitability of Dr. Julian Ong to remain one of the Group’s key physicians.

Company response

Dr. Ong is one of the Group’s surgeons and has no executive responsibility or is a Group officer. He operates like any other surgeon employed by the Group, like the other surgeons that the Group employs and in which it invests.

Notwithstanding the foregoing, the Board and NC note that Dr. Ong’s professional conduct as a specialist in the Group has not previously been affected by his personal conduct. The Board wishes to reiterate that prior to the complaint filed with SMC, neither Dr. Ong nor the Company had received any complaints regarding Dr. Ong’s conduct or the medical services he provided, and patients were generally satisfied. of his professionalism.

Accordingly, given that the appeal is ongoing and not complete, to date the Board and NC have determined that despite his personal indiscretions, Dr. Ong is a surgeon who has continued to provide services. quality medical care to its patients and continues to do so.

Query 3

What is the impact of the conclusions of the SMC on the Group’s operations and finances?

Company response

As the appeal was not concluded and Dr. Ong is still permitted to continue his medical practice, the SMC’s findings have no impact on the Group’s operations and finances.

Please also refer to the answer to question 1 regarding the Group’s prudence regarding its investment in JOES.

Query 4

Please disclose any other material information of which shareholders should be aware.

Company response

The Board believes that there is no other material information of which shareholders should be aware pending the outcome of the appeal.

The Council will provide further updates, as they become available, in accordance with the requirements of the Catalist Rules.

By order of the council

Dr. Heah Sieu Min

Executive Director and CEO

August 5, 2022

About HC Surgical Specialists Limited

HC Surgical Specialists Limited (the “Company”) was incorporated on September 1, 2015 in Singapore and listed on the Catalist of the Singapore Exchange Securities Trading Limited on November 3, 2016. The Company, its subsidiaries and the associated company are a service group medical primarily engaged in the provision of endoscopic procedures, including gastroscopies and colonoscopies, and general surgery services with a focus on colorectal procedures through a network of 16 clinics located across Singapore.

This announcement was prepared by the Company and reviewed by the Company’s sponsor, Novus Corporate Finance Pte. ltd. (the “Sponsor”), pursuant to Rule 226(2)(b) of Section B of the Listing Handbook of the Singapore Exchange Securities Trading Limited (the “SGX-ST”): Catalist Rules.

This announcement has not been reviewed or endorsed by SGX-ST and SGX-ST assumes no responsibility for the content of this announcement, including the accuracy of any statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr. Pong Chen Yih, Chief Operating Officer, at 7 Temasek Boulevard, #18-03B Suntec Tower 1, Singapore 038987, telephone (65) 6950 2188.

Disclaimer

HC Surgical Specialists Ltd. published this content on August 05, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Aug 06, 2022 11:23:00 AM UTC.

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All news about HC SURGICAL SPECIALISTS LIMITED

Sales 2021 23.5 million
17.0 million
17.0 million
Net income 2021 8.00M
5.79 million
5.79 million
Net cash 2021 3.12M
2.26 million
2.26 million
PER 2021 ratio 9.00x
2021 performance 8.33%
Capitalization 70.0 million
50.6 million
50.6 million
EV / Sales 2020 2.77x
EV / Sales 2021 2.91x
# of employees
Floating 16.8%

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