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What were the key takeaways from SBC Medical Group's earnings call?

- **Customer Growth**: Franchisee clinics expanded to 258 locations, serving 6.5 million annual customers.
- **Thailand Expansion**: Laser treatment POC in Thailand with BLEZ ASIA, targeting Southeast Asian market expansion.
- **Waku Synergy**: Acquired Waku for R&D integration, enhancing regenerative medicine offerings in AGA and orthopedics.
- **Financial Recovery**: Q3 sales stabilized, with operating income improving due to cost reductions.
- **Liquidity Focus**: Enhancing share liquidity via buybacks and founder share sales, with potential dividend policy.
- **US Strategy**: Exploring partnerships to adapt Japanese aesthetic model to US market.

**【CFO Presentation Summary】**
- **Franchisee Clinic Growth**: Total clinics expanded to 258 (up 34 locations), with annual customers reaching 6.5 million. Average spend per customer is recovering due to pricing strategies and multi-brand dermatology offerings.
- **Financial Recovery**: Q3 sales stabilized after restructuring, driven by point-related revenue growth. Operating and net income improved due to reduced racing-related costs and share-based compensation.
- **Thailand Expansion**: Partnered with BLEZ ASIA for laser treatment POC in Thailand, targeting affordable pricing for Japanese and Thai customers. Plans to expand to Malaysia and Indonesia post-POC.
- **Waku Acquisition**: Completed tender offer to acquire Waku for R&D synergy, aiming to integrate Waku’s regenerative medicine expertise with SBC’s clinic network for AGA and orthopedics treatments.
- **Balance Sheet Management**: Maintained strong cash position with bank financing for working capital. Improved liquidity through share buybacks and founder share sales to enhance free float.
- **Capital Policy**: Focus on improving share liquidity via new share issuance and founder share sales. Considering dividend policy but prioritizing M&A growth opportunities.

**【Q&A Highlights】**
- **COVID-19 Costs**: Q3 cost increase due to medical equipment leases and Singapore subsidiary consolidation. CFO expects financial performance to remain stable in Q4 and 2026.
- **Thailand Market Impact**: Near-term financial impact minimal, but POC success could enable rapid expansion across Southeast Asia.
- **Waku Integration**: Roadmap includes leveraging Waku’s R&D for skincare products and outsourcing cell culture operations within the group.
- **US Strategy**: Exploring partnerships to adapt Japanese aesthetic model to US market, with potential tech引进 back to Japan.
- **M&A Strategy**: Domestic focus on medical clinics; global strategy emphasizes smart industry investments and US partnerships.
- **Financial Guidance**: Considering providing revenue and profit guidelines in future, but no concrete targets yet.
- **Liquidity Improvement**: Plans to increase free float through share buybacks and founder share sales to address low liquidity.
- **Dividend Policy**: Dividends under consideration but secondary to growth via M&A.


SBC Medical Group Holdings Inc (SBC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SBC

SBC fundamentals

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