CHA Healthcare incorporates Singapore's SMG as subsidiary
Woo-Sang Lee
4 HOURS AGO
South Korea's CHA Healthcare Co., CHA Biotech's overseas medical business affiliate incorporated Singapore's SMG as a subsidiary.
CHA Healthcare announced on Monday that it incorporated Singapore Medical Group (SMG), which operates 46 specialty clinics across three Southeast Asian countries, as a subsidiary.
With SMG's performance in CHA Healthcare's consolidated financial statements from September this year, the company expects an increase in revenue and operating profit.
CHA Healthcare's consolidated revenue last year was 701.2 billion won ($527 million).
SMG, established in 2005, is the largest specialty clinic group in Southeast Asia. It operates specialty clinics such as women's health, obstetrics and gynecology, cancer treatment, radiology, pediatrics, and cosmetic dermatology, primarily in Singapore, and in major cities in Indonesia and Vietnam.
CHA Healthcare began strategic equity investment in SMG in 2017 and became the largest shareholder in 2019 by securing a 24% stake. In 2023, it increased its stake to 42.4% and recently expanded it to 64.2%.
Following CHA Healthcare's investment, SMG expanded its clinics from 30 to 46, showing steady growth. Revenue increased from 68 million Singapore dollars ($51.9 million) in 2017 to 123 million Singapore dollars ($93.9 million) in 2023.
EBITDA also grew from 13 million Singapore dollars ($9.9 million) to 23 million Singapore dollars ($17.6 million) over the same period.
CHA Healthcare operates over 70 global healthcare platforms and services in six countries, including the US, Australia, and Japan.