Earnings call transcript: Lung Lad Hospital’s Q2 2025 earnings beat boosts stock

Lung Lad Hospital reported a stronger-than-expected financial performance for the second quarter of 2025, with earnings per share (EPS) at $2.14, surpassing the forecast of $2.12. The revenue also exceeded expectations, reaching $6.1 billion compared to the anticipated $6.06 billion. This positive surprise sent the stock price soaring by 10.96% in pre-market trading, moving from $146 to $162. According to InvestingPro data, the company’s stock has delivered an impressive 49.59% return over the past year, though current technical indicators suggest the stock is in overbought territory. InvestingPro analysis indicates the stock is currently trading above its Fair Value.

Key Takeaways

• EPS and revenue both surpassed analyst forecasts.
• Stock price surged by 10.96% following the earnings announcement.
• Record EBITDA margin of 41.6% achieved.
• Insurance revenue showed significant growth of 11.7%.
• Non-Thai patient revenue declined by 6.6%.

Company Performance

Lung Lad Hospital experienced a mixed quarter, with overall revenue declining by 3.6% and net profit falling by 3.8%. However, the company achieved a record EBITDA margin of 41.6%, indicating strong operational efficiency. While revenue from non-Thai patients decreased, the hospital saw a robust 11.7% growth in insurance revenue, highlighting its ability to diversify income streams.

Financial Highlights

• Revenue: $6.1 billion, a 3.6% decline from the previous year.
• Earnings per share: $2.14, beating the forecast of $2.12.
• EBITDA margin: 41.6%, a record high.
• Insurance revenue: Increased by 11.7%.

Earnings vs. Forecast

Lung Lad Hospital’s actual EPS of $2.14 exceeded the forecasted $2.12, resulting in a 0.94% surprise. Revenue also beat expectations, with a 0.66% positive surprise. This marks a modest but positive deviation from forecasts, contributing to the strong market reaction.

Market Reaction

The hospital’s stock price increased by 10.96% in pre-market trading, reflecting strong investor confidence following the earnings beat. This movement is significant compared to broader market trends, indicating a positive response to the company’s performance and future outlook.

Outlook & Guidance

The company provided optimistic guidance for Q3 2025, projecting a 3-5% increase in top-line revenue growth. It expects the second half of 2025 to outperform the first, with continued focus on cancer care and wellness innovations. The potential resumption of the Kuwaiti patient market and expansion of AI and digital health capabilities are also anticipated.

Executive Commentary

• "We’re trying to make people live healthier, better, not just longer," stated Doctor Poliquette, CEO of the Vital Life Scientific Wellness Center, emphasizing the company’s focus on wellness.
• Kunil Sorrentino, Corporate Chief Strategy Officer, described the new cancer center as "the most modern, advanced technological, comprehensive cancer center in all of Southeast Asia."

Risks and Challenges

• Decline in non-Thai patient revenue by 6.6% poses a challenge in international markets.
• Decrease in Chinese tourist numbers by 30-40% could impact future revenue.
• Ongoing geopolitical challenges in regional markets may affect growth.

Q&A

Analysts inquired about the potential recovery of the Kuwaiti market and the performance of the insurance segment. The company also addressed challenges in China and Cambodia, emphasizing its strategy to balance revenue intensity and patient mix.

Full transcript - Bumrungrad Hospital PCL (BH) Q2 2025:

Acheya Sanatana, Investor Relations, Lung Lad Hospital Public Company Limited: Hello, everyone. Welcome to the Analyst Presentation once again with the Management for the Performance for the 2025 from Lung Lad Hospital Public Company Limited. My name is Acheya Sanatana, Investor Relations. So today, for this time around, we have local analysts joining us on-site here at the hospital, while we also have the online channel for our foreign analysts as well. We have uploaded the presentation file, the PDF, on our website, IR page already this morning.

So you can check the file out before the meeting starts. So for today, we will have the agenda for today, we will begin with the presentations and then followed by the Q and A session. So before we begin with the presentations, let me introduce our management that are here with us today. We have Kunil Sorrentino, Corporate Chief Strategy Officer and we have Kunathirajarukit, Pipad, Chief Executive Officer and we have Kunalapan Womuang, Chief Financial Officer. And on the floor, we also have management that’s going to give us an update presentations on the performance as well.

We have Khun Rajiv, Rajan’s Chief Business Development Officer and we have Doctor. Kwala Kip Chee Hakir, Khun, Chief Executive Officer at the Vital Life Scientific Research Center at Esperan as well as Chief Science Officer of BHPCL. And we have Kunpatara Pong Gan Pakdi, Chief Administrative Officer, who will give us an update on the expansion project of the Annex Building. So today, for the since we have the time limit, we will start to give the priority with the Q and A session for the questions that we receive on-site first, and then I will go through the questions that we receive online channel. And if we don’t have enough time, we will answer those questions through e mail.

So without further ado, let me hand over the presentations to Sunil Sorrentino to talk about the key takeaway. Thank

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: you, Luna. Welcome to you all. As you know, we’re switching on a hybrid basis where we’re doing two of these online and then two of these in person based upon input from all of you and others online because it’s easier sometimes for you to come a couple of times a year rather than four times a year with so many companies that you’re covering. So, let’s get right into the Q2 analysis and performance. First slide, please.

As I’ve talked to you about in the past, you’re not particularly used to our second quarter being stronger than our first quarter because of Ramadan. But if you recall, I mentioned to you that because of the Islamic calendar going backwards or forwards, depending upon how you think about it, now what you see is second quarter being stronger than first quarter because 90% of Ramadan occurred for us in the first quarter, 10% occurred in the second quarter. So, what you’re seeing in the second quarter is that first bullet up there regarding the growth in The Middle East business, which was very dramatic. You can see that Qatar was up 18%, UAE 46%, Oman 28% and Saudi 54%. Those are impressive numbers, but what’s more important than the percentage is the base.

There is this false narrative that, oh, Bamanglav is losing market share in the Middle East sector. Our turnover for the quarter was 6,000,000,000 baht and 23% of that, which is almost 1,400,000,000.0 baht was Middle Eastern business, very strong second quarter for us. Good growth back in all of those four markets, including we’re most proud of the UAE market. Because if you recall, you look at the numbers all the time back in Q4 and then in Q1, Q1 typically though was because of Ramadan. We had a slide off in UAE, but that’s come back pretty significantly in the quarter, in the second quarter.

So, don’t be unimpressed or be impressed by market share issues. No one knows what the total market share is out of any particular market because there’s nobody submitting data in a national repository about data regarding what’s coming out of these markets all over the world, especially Middle East. When you look at Qatar as an example, we showed 18% growth in the second quarter. So, what is the base? That’s the more important question.

What is the base that you’re growing this off of? In 2024, our Qatar revenue base was over 4,000,000,000 baht. So, when you see others reporting, oh, Qatar up 20%, Qatar up 25%, ask the question, what’s the base? So, when you’re talking when you’re thinking about market share, that’s what’s the determining factor is what is the base that you’re growing up to or going down against. So, for the second quarter, we had a company forty five year record of EBITDA margin being 41.6%.

That’s a combination of many things, as you know. Volume is one, revenue intensity is another. But we had a stronger impact on cost control, Una Thirat’s team and her operations staff did an excellent job in cost control, making up slightly for a little bit on the revenue intensity part. Before Ramadan, when you look at Qatar, our biggest Middle East market, there were a lot of long stayed term patients here. When Ramadan came, they went back.

It’s typical. That’s very, very typical during Ramadan. They weren’t at the same level as it was in Q4, as an example, into Q1 because they didn’t come back, they stayed back in their own country. So, that brought the revenue intensity down slightly. But in return, the outpatient business and the inpatient admissions were very strong in Q2, given those percentage numbers.

And because of all of those factors, our EBITDA margin was the highest in the company’s history. Now, I keep getting asked by the investor community, how far can this go on EBITDA margin? Of course, this is best in class. There’s no one even in The United States that has this kind of EBITDA margin, all of Asia. There’s no one in Asia that has EBITDA margin like this.

And it’s a combination of the things I just mentioned, and we’re proud of it. A week ago at our Board meeting, our Board and our Chairman rose as a percentage of EPS because EPS was down year over year slightly from 40 EPS was 40 the dividend payout was 44% of EPS this time for the interim dividend versus a year ago, which was 41%. And that’s because we had to make it larger because the EPS was slightly smaller in 2025 versus 2024. But the Board did not want to cut that back to the same percentage level. So, they raised the percentage level of dividend payout, which equal to 2 baht per share for the interim dividend.

Una Arpan is going to talk to you in detail about the financial performance beyond what I’m going to cover. But I’m going to cover a little bit more on the market share piece, so you have a better understanding of what that is. Next slide, please. So, I prepared a couple of slides for you that shows the company’s performance, and these are all absent COVID. We just took COVID out of the base because the world was closed during COVID, no one calculates what happened during the period during COVID.

But when you look at this, you look at the compound annual growth rate of 5.8% and from ’eighteen to ’twenty four, we grew this non tie revenue 40. So, when you look at especially ’twenty three to ’twenty four, you see ’twenty two to ’twenty three, that period there, the EPS grew by 42% year over year. 2024, the EPS grew by 11%. Next

Daniel, Insurance Operations Representative, Lung Lad Hospital: slide.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: And this all goes to the market share question that I want to impress upon you in terms of what this company’s performance has been. So, on the non tie by nationality group, you can see here that the compound annual growth rate was 7.7%, but up 56.2% from ’nineteen to ’eighteen to ’twenty four and Non Middle East, Middle East was on the left hand side and Non Middle East was up 31.7% with compound annual growth rate of almost 5%. These slides will all be available on our website. But this tells the investor community what the growth has been year over year over year absent COVID. And in looking at 2H twenty twenty five, my outlook for 2H is going to be stronger than 1H.

We have started Q3 very strong, and I expect 2H twenty twenty five to be better than 1H twenty twenty five. Next slide. So, I mentioned earlier about our turnover and the percentages by nationality or market, however you want to look at it. So, if you consider that our turnover was 6,000,000,000 baht for the quarter, I’m pretty close about that, aren’t I, Kunim? 6,000,000,000 for the quarter, When you take the 23%, which was The Middle East part, The Middle East was $1,400,000,000 and we’re running anywhere between 64% to 66% of total revenue combining all of those non Thai.

And Thai was 36% for the quarter. So, you can see Indochina 16%, others 25%. And now, of course, you also know that for all of the healthcare facilities in Thailand, Cambodia and China are going to be negative year over year because of the Cambodia Thai problem, which hopefully is behind us, but also because of the arrivals is down almost a third from Chinese nationals coming from Mainland China. And that’s a statistic for Thailand. And we’re pretty close modeling that statistic.

And all the other hospitals that you cover will show the same thing. Next slide. So, these are the top 10 nationalities. You can look at them for yourself online. When you look at, as an example, The U.

K. And The United States, these are principally expat driven from the local market here in the Greater Bangkok area. Bangladesh was a strong market for us and continues to be a strong market for us. You can see China here down. You can see Cambodia here down.

You’ll see that across all the other hospitals you cover. We have a clinic there that we’re seeing patients about, And it was running very, very well until this dispute occurred. And hopefully, it will start back up again in Q3. But the most positive aspect of the beginning of Q3 is Middle East business. Our Middle East business in Q3 starting is very strong.

Please go back to the takeaway slide. So, let’s switch a little bit to the Phuket Hospital update because I get a lot of questions about that. Just moving along, the pilings are finished. We’re going to start building the retaining wall, which is a almost a rectangular retaining wall going very, very deep that keeps the dirt out as we dig up and start coming out of the ground. And we’ll be coming out of the ground quite likely here once the retaining wall is done in late September.

But it is on target. We’re looking to have a soft opening on Q1 twenty twenty seven. And there’s a lot of excitement in the market. There continues to be a lot of excitement. We get a lot of doctors asking, when is the hospital going to open?

How can I get on medical staff privileges? Rajeev will be principally responsible for driving the international business there. You may know, we’ve talked about it that it’s about 53 some odd international flights coming into Phuket every day from around the world. I was just there two weeks ago and there were many, many, many Middle Eastern patients many, many Middle Eastern families there all over Phuket because now school is out. And that’s part of the reason why many Middle Easterners are traveling.

And it’s part of the reason why we’re busy in Q3 with Middle East business. As we submitted the results for Q2 after our Board meeting last Wednesday, we had a remarkable reaction, positive reaction by the investor community for our stock. We traded 52,000,000 shares in five days There were a couple of days that we traded 14,000,000 shares. And our average trading volume, as some of you may know, is 2,000,000 to 3,000,000 shares a day. And the stock price jumped 16% during that one week period, somewhere from the 140s to the 170s, very low 170s, 172, I think was the high.

So, there’s and when I look at it, there’s a lot of international investors re interested in the company. We’ll see where that goes in Q3 and Q4. But that’s remarkable because we haven’t had something like that happen in a long time, and I thought it was worth mentioning. As I said about the outlook for Q3, the guidance outlook for Q3, I expect 1H will be, as I said, less than 2H. 2H will be much better than 1H.

And then, I’ll talk about the 3Q guidance later. Go back to the other slides, please. Konarapan?

Kunalapan Womuang, Chief Financial Officer, Lung Lad Hospital: Morning, Kaswathi Kas. I will report in terms of the revenue and financial highlight for your Kas. Can you go to my slide, please? Okay. Second quarter this year, total revenue declined by 3.6% EBITDA and net profit declined by 1.63.8% respectively.

The decline in revenue mainly came from non Thai patient revenue down by 6.6% and Thai patient revenue slightly declined by 0.2%. The EBITDA margin and net profit margin this quarter were 41.630.4% respectively. The EBITDA margin and net profit margin for first half this year were 39.629.2%, respectively. I walk you through more detail in financial performance section, Okay. In second quarter this year, the total revenue was million but declined from second quarter last year by 3.6%.

The total revenue decline mainly came from the decrease in revenue from hospital operation, which declined by 4.4% when compared to second quarter last year. This was primarily due to 6.6% decrease in revenue from non Thai, as Kuni already mentioned, and 0.2% declines from Thai patient. For non Thai patient, revenue decline mainly came from MDA segment, declined by 12.4%, mainly from Qatar, Kuwait and Oman. And Indo China segment declined by 2.6%, mainly came from Cambodia and offset with the increase in Myanmar about 10.1% and Bangladesh increased by 5.8% and Indonesia increased by 55.8%. For other non Thai segment declined by 2.9% mainly came from China.

In first half this year, the total revenue was NZD12310 million, declined from same period last year by 4.6%. The total revenue decline mainly came from the decrease in revenue from hospital operation, which declined by 5.3% when compared to first half last year. This was primarily due to 8.2% decrease in revenue from non Thai, partially offset by 0.5% increase in revenue from Thai patient. For non Thai patient revenue decline, mainly came from media segment declined by 22.4% and Indo China segment increased by 0.4%, mainly came from Myanmar increased about 15.3% and Indonesia 52% offset with the Cambodia declined by 17.8. For other non Thai segment increased by 1.4%, mainly came from U.

S, France and offset with Japan and China car. So move on to see the revenue contribution by service. In second quarter this year and second quarter last year, the revenue contribution from outpatient service and inpatient service remained at 50%. In first half this year, the total revenue contribution from our patient service increased to 51% from 49% in first half last year due to OPD revenue decreased at 1.2%, while revenue IPD decreased at 7.5%, mainly due to lower length of stay. In term of revenue contribution by payer type, insurance contribution in first half this year increased to 22% from 19% in the same period last year due to revenue from insurance in first half this year grew by 11.7%.

The government third party contribution in first half this year was 14%, dropped from 18% in first half last year due to lower Middle East revenue. And self pay contribution increased to 63% in first half this year from 62% in first half last year. In term of EBITDA and EBITDA margin, 100

Acheya Sanatana, Investor Relations, Lung Lad Hospital Public Company Limited: in second quarter this year EBITDA was 2,037

Kunalapan Womuang, Chief Financial Officer, Lung Lad Hospital: million, decreased from same period last year by 1.6%. The decrease mainly due to total revenue declined by 3.6% and offset with cost of hospital declined by 4.8% and selling admin declined by 22.5%, mainly came from supply and marketing expense reduction, respectively. The EBITDA margin in this quarter was 41.6%. For EBITDA in first half this year was PHP4876 million, but declined from same period last year by 7.2%. The decrease mainly due to the total revenue decline by 4.6% and offset with cost of hospital decline by 4.1% and selling admin decline by 14.2%, mainly came from the supply coefficient fee and marketing fee reduced in this first half and offset with the admin expense increase about 4.1%.

EBITDA margin in first half this year was 39.6%. In term of net profit and net profit margin, net profit for second quarter this year was RMB1858 million, which declined by 3.8% from second quarter last year. This was due to the lower tax incentive from BUICSR project. Net profit margin of second quarter this year was 30.4, slightly up from 30.5% in second quarter last year. For net profit in first half this year was million, a decline from same period last year by 8.3%, with net profit margin 29.2%.

In term of level at ratio, net debt to EBITDA of first half this year was negative at 0.2x and net debt to equity was also negative at 0.1x due to less net debt. In term of liability to asset, at the end of second quarter this year, the percent liability to asset remain at low level around 14.2%. This is due to the higher net asset continuously. In term of cash flow statement, at the end of first half this year, total cash investment increased to about B14.9 billion from B12.3 billion in first half last year. This came from the accumulated operating cash flow and cash collection from account receivable, especially Middle East account, offset with the dividend payment to the shareholder.

In term of increasing in short term and long term investment, we allocate excess cash to invest in multiple financial assets to capture the higher interest income yield in this year cap. These are our financial highlights and financial performance of second quarter and first half this year, Kai. Thank you for your attention.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: A few comments about the financials. Firstly, Q2 twenty twenty four will be the last overhang of revenue from Kuwait. So, we will no longer have to be covering that differential, which is important going forward from Q3 forward. That’s an important point for you to consider. Secondly, the guidance for Q2 twenty twenty five was minus 3% to minus 5% revenue, top line revenue negative growth.

And we only were at three point what was it, 3.4%. Is that the number? So, we were pleased with that small of a differential, negative differential period over period. But the Kuwait part is important. And while I’m on Kuwait, I’ll give you an update about it as well.

We have had I have had direct discussions, I and Rajiv together, have had direct discussions with principals in The Kingdom Of Kuwait about where they are and where they’re going on two issues. One, payment to hospitals in Thailand and two, their opinion about whether or not they’re going to return to Thailand and if so, under what conditions. As you know, all Kuwaitis, for the most part, there’s a few going to The U. S. For cancer care.

But for the most part, they’ve concentrated all Kuwaiti care in government hospitals in country. They needed to resolve what they describe as going from administration to administration, as you know, the last Amir passed away. And then looking at it under the hood, so to speak, they found a lot of irregularities, many, many, many irregularities in country. And they’ve been trying to resolve those over the last eighteen months. And it sounds like in listening to them and in talking with them, it sounds like they’re almost at the end of that clearance and they’re almost at the end of developing guardrails and utilization controls, not only in healthcare, but across the system, real estate, energy, all of that.

As you know, Kuwait is a very rich country in energy. And as we have spoken to them, in fact, some of these same people we’ve spoken to have been patients at Bamgrat. So, they know our institution well. I’ve also told you that during the time that Kuwaiti patients were coming to Thailand, of seventy there were seventy deaths recorded of Kuwaiti patients here in Thailand. So, the reputation of Thailand from a Kuwaiti standpoint was not good.

Healthcare is expensive everywhere in the world. We’re cheaper than all of Western Europe, all The United States, all of Singapore. So, like that about Thailand that the cost is less, but they were quite upset about these seventy deaths occurring in Thailand. But we’ve gotten past that with them because they see us as a one off positive institution here in Thailand, and we have a good relationship with them. We do expect in listening to them and in talking with them, we do expect them to start paying hospitals in Thailand.

What that will be, at what level it will be, at how much it will be, is something that is a negotiated issue between the hospital and the Department of Finance in country, the Department of Audit. They have now a Ministry of Audit. They have a Ministry, of course, of Finance. They have a Ministry of well, several ministries. We spoke to four of them.

Spoke to them personally online. So, my sense about Kuwait is that hospitals will begin to be paid on a one to one negotiated basis. It is not clear to me because they’re being purposely vague. It’s not clear to me that they’ll be sending patients to Thailand because of the history. But it’s also not clear to me that they will not.

They considering this. Why? Because of cost. It’s just much cheaper to come to Thailand than it is to go to New York. And they spent internationally pardon me, they spent internationally US12 billion dollars in healthcare for their Kuwaiti citizens.

It’s a huge number, five here in Thailand because they sent a lot of Kuwaiti’s who came to Thailand for care. So, one bears watching. I’m cautiously optimistic that we and others will get paid. And I’m thinking and waiting to see what they do about whether or not they send patients back to Thailand. But if they do, I do believe that they’ll be coming to Bamgraat.

At what level? No one knows. But I get this clear sense that we are an outlier in terms of being considered a first class institution providing first class care to their patients. That could be a positive in the future. We’ll see.

I’ll hold guidance for Q3 later. Rajiv, over to you.

Rajiv, Chief Business Development Officer, Lung Lad Hospital: Sorry, Karp. For overall, when we present the second quarter financials, I think starting with the overall performance, which was, let’s say, in terms of revenue, quarter over quarter, 4.4% less. For the Thai segment, minus 0.2% and for the non Thai segment, minus 6.6%. I would like to further might be add some more contrast market wise, segment wise for The Middle East, non Middle East, for the Thai segment in my next slide. For The Middle East, in terms of Kunil had showed that overall quarter over quarter, like first quarter into second quarter, we had double digit growth specifically from our target markets, Qatar, UAE, Oman and Saudi Arabia.

For the second quarter, there are a couple of outliers, which I would present. One of the outlier would be the end of Ramadan. After the 10% of end of the Ramadan period, immediately, we had the earthquake. So because of that earthquake, we had seen a lot of cancellations, slowdown, delay of appointments, rescheduling of appointments. So the first half of the second quarter was a slow start because of this apprehension where most of them had was Thailand safe to travel.

And this was one of the key contributors why we had mostly less intensity because we had shorter duration of patients staying during this period. But on the other hand, the rebound was phenomenal. We didn’t expect such a rebound in terms of within a short period of time. So the second half of the second quarter, we saw those numbers come back in terms of OPD numbers, both in terms of volume, in terms of admissions. So specifically to mention for Qatar for second half, for second half, we had approximately 9.3% growth year over year for the second quarter only in admissions.

And for UAE, we had close to around 28% growth in terms of admissions in the second half year over year and 1.3 growth in OPD numbers. So for the OPD numbers and for the admission for all across key target markets, whether it be Qatar, UAE, Oman, Saudi Arabia, all has been positive in the second quarter year over year. But because of the intensity, which is because of shorter duration of stay during this period, that resulted in lesser revenue during the second half of this period. But in terms of performance, I think Qatar has the all time highest in terms of our patient flow. As Kunil mentioned, the base that we have, both in terms of revenue and in terms of the number of patients from Qatar that we cater to, the base is huge.

And on top of that, to grow that base in terms of numbers by OPD numbers and as well as IPD numbers, We’re quite happy. And I think that will translate to better revenues as well for the next quarter because that will carry forward to the next quarter. Overall, for Middle East, when we compare 2025 with 2024, Overall, we have 1.7% growth for OPD visits, 9.4 growth in terms of admissions. Revenue intensity, of course, because of the said reasons, we had a shortage of revenue intensity. But also one of the other outliers, as also Kunil mentioned in his opening, is Kuwait business.

We still have that tail end of the Kuwait business, which was present in 2024, but absent in second quarter twenty twenty five. But going forward, in the third quarter, we won’t be having that because it was almost flat out and towards a declining and diminishing phase where the government business was almost absent and we only had few self pay. But even for those self pay, the base is quite low, which is not a big margin to cover up for. In terms of the first half overall, again, the OPD visits were down 4.5%. Admissions were up 1.1.

What we think in terms of the going forward for a few of the specific markets, as Kunil also mentioned, for Kuwait is with all these discussions with them, we have been told the same message that to be patient. We have been patient. But I think based on the final now what we hear from them, things are settling down. Things seems to be much more clearer. They have opened up and had an official dialogue with us on official platforms where we are communicating much better in a much more transparent way.

We feel that again, as Kunil also mentioned, this part, they are seeing it into two phases. Phase one to be settling all the past dues, reconciling and clearing off all the old receivables. And second phase could be potential collaboration for new business. So for the first phase, we are in active negotiations and reconciliations. We are in dialogue with the Ministry of Finance and Ministry of Health of Kuwait.

Bills have been submitted. And so far, we have been told that bill submissions are as per track. There are no queries on that so far. And for the second part, they were very clear since the beginning of why the business to Thailand had to come to a pause. That is because of governance where they had too many patients in Thailand, but they were accessing multiple many different service providers in Thailand, over 17 to 18 service providers.

Lack of governance led to a care which was compromised. That led to specific mortality rates where more than seventy Kuwaitis were discovered, that they lost their lives, unfortunately, in Thailand, where I think that could have situations when it was reconciled, it was discovered that this situation could have been avoided. And so to iron out these issues, they were very clear that they will specifically select few service providers, prominent service providers who are best in class, best in quality, and that quality part would not be compromised. It’s not about the money they spend because they’re looking at an alternate destination to the West. They’re looking at high end quality, high end technology and service offerings, which are there.

So ideally, we still hear that it would be one or few best service providers in Thailand who would be screened and shortlisted for this service going forward. At what intensity, at what volumes, we don’t know. But I think once we settle with Stage one, Stage two would be much clearer. And hopefully, in the next meeting, we will have more news to share on this subject. For UAE, we are very positive to what we have seen because in 2024, we’ve seen a decline in OPD numbers.

We’ve seen a decline in IPD numbers. We also shared that during that period, because of the decentralization, we were also in active dialogue for recontracting with multiple other individual institutional business from within the country. And during 2024, that recontracting with negotiations earned good dividend for us in Q1 and Q2. As you might see, even the intensity admissions, all time highest in terms of UAE admissions for us in Q1 and Q2. But Q2, it was slow again.

Similar trend across all GCC markets. Q2, as I said, divided into two half. First half, we had a slowdown because of these outliers with predominantly the earthquake situation. And second half, we saw much better, which is the first forty five days, second. And moving into the non Middle East segment.

Non Middle East segment, because of the geopolitical situation within this region, which is basically the political tensions between Thailand and Cambodia, it is quite obvious that we saw less travelers, less medical tourists coming in from Cambodia because they’re scared to travel to Thailand. But now hopefully, with time to come in the next quarter and so forth, we will see that stabilize, hopefully, and things get back to normal, which will bring back the Cambodian revenue in terms of the OPD footfalls and also the admissions. For Myanmar, even though we had the earthquake situation, but we still saw a double digit growth in terms of revenue, in terms of admissions, in terms of OPD footfalls from that region, which is also because of our strong partner that we have in Myanmar. Mandalay Airport resumed operations towards the mid of Q2. And it was during irrespective of that airport being shut down, we still saw a good number of patients coming in through the Yangon.

We have a clinic in Yangon. And with our strong partner, we were able to also do outreach in Yangon. We facilitated the outreach by taking our doctors there. We did three outreach during this period, which was highly recognized and appreciated by the community, which translated to high intensity referrals and admissions from that region. China is a market which we’re seeing from Mainland China, the trend of Chinese tourists not increasing.

It is still on a slow. It still continues the trend what we started to see in Q1. There has not made much improvement in that. The overall number of tourists in country from China has reduced by over 30% to 40% year over year. That mostly was because of safety and security issue, which were concerns which came up in terms of kidnapping.

That safety and security issue, I think there were multiple other episodes also as follow-up to that, which continues that scare among the community. And when we interact with our partners, there is a sense of fear and apprehension that needs to be strengthened within the yes, okay, we are ready to travel. Yes, it’s good destination. It’s value for money, but is it safe? So that question of is it safe still exists, and that usually is influencing the decision to

Doctor Kwala Kip Chee Hakir, Chief Executive Officer, Vital Life Scientific Research Center, Esperan: might

Rajiv, Chief Business Development Officer, Lung Lad Hospital: be select another destination or might be stray locally within country for their care. But we continue our reach of reach and diversification within China. As of now, we have our offices. We started with two in Beijing and in Shanghai, but we further diversified ourselves into Chengdu, Chongqing, and we’ll be having a couple of new offices in new cities as well. We are adding a few more partners.

We are engaging through online platforms to engage with the community, specifically targeting high end care like prominent specialties like oncology, GI. We are having these online webinars and sessions for closed rooms. And when we started this last year, towards the third quarter of last year, the participation was limited. But now through the last session that we organized, we were able to reach up to 15,000 impressions for the online event that we conducted for oncology. So I think we’ll continue that effort.

And we since our footprint in China is also expanding through our partnerships and local offices that we have, we’re positive that we can we’ll be able to connect with the community and bridge high intensity and optimize referrals from that region. So for other markets like Cambodia, Laos, Vietnam, from where we get a lot of expats, which are European expats and Americans who are deployed in that region who prefer to come to us over care. Because of the overall geopolitical situation, the soft economy, the we feel that there is tension within the community. Nothing has changed. The dynamics has not changed so far.

But within the community, there are tensions of the future for them because most as we all know, international companies, international organizations, which have its presence in the Asia Pacific region, are cutting down on costs, especially on manpower costs, trying to trim down, downsize. So that could affect some large organizations where expats from these regions might have to go back. That’s not happened yet at a large scale. But overall, there is a sense of apprehension among most of these international communities that this is something that they expect in the near future can happen. So in addition to that, other expats living in Thailand, U.

K. Expats, U. S. Expats, New Zealand, Australia, we’ve seen significant growth specifically from them. We continue our community connect and engagement programs through all the relevant institutions like the Chambers of Commerce, embassies, international schools, the different clubs and institutions that are there here in Thailand as well as in the neighboring countries in the CLMV.

And through this connect and through different strategic initiatives and promotion, we are getting good response in terms of admissions and also OPD footfalls for specific health checkup programs that we conducted during this period. Last slide. Sorry, I missed out Bangladesh. So as we all know that Bangladesh, same time, almost close to same time, Bangladesh went through a major political coup. In result of that, the country went through a major blackout for almost sixty, sixty five days.

And the ruling Prime Minister was exiled from the country, then came in the interim government, Nobel laureate, Mr. Yunus, who is still in charge. So it’s been one year since the political coup, but not much has stabilized. The political system or the elections, which was expected to happen in less than six months of the interim government takeover has not yet happened. And the political stability is overall stable, but still the democracy is not yet in place.

And we towards first quarter, we had seen the restrictions which government put on citizens traveling abroad because they want to restrict the flow of cash flow out of the country. They don’t want wealthy citizens to leave the country. So the protocols for travel for rich become more stricter, and they imposed a lot of policies and regulations of declaration before traveling internationally. That continue in the similar fashion. But for Thailand also, first half, we also faced issues related to slow visas for coming into Thailand.

For Health, it became a little more lenient. Towards the second half, we could see that where we much more visas were granted. We’re working closely with the Royal Thai Embassy in Dhaka. And with the help of the Royal Thai Embassy in Dhaka, we facilitated those visas and we got patients in. But again, the nature of patients is quite different.

Previously, we had more of patients who used to come and visit us in the OPDs, a lot of elective procedures. But now it’s mostly high intensity, acute, chronic and air ambulances and transfers, which we are experiencing now. And we facilitated them. So in terms of the second quarter, we saw that revenue revenue as well as OPD visits and IPD admissions increase was compared to the first quarter and also compared year over year the second quarter by almost 6%. I think I covered most of the segment, and I’ll I’m happy to answer any questions in the quick Q and A.

Thank you.

Hospital Operations Presenter, Lung Lad Hospital: Good morning, everyone. I’m very pleased to be with all of you today. So I would like to start my presentation for the hospital operation update for the second quarter. This slide showing that we are very truly grateful to be recognized by Newsweek as Bam Noograd is now one of the best specialized hospital in nine specialties. And we got ranked number one in Thailand for six out of nine specialties.

Actually, the eight specialties remain the same as previous year, but we achieved the better rank as you can see in the slide. This year, the new recognition is neurology, which is newly ranked at number 88. So this is to prove that we are very well accepted for the one of the best hospital worldwide. This is the next slide. As you know that our core value of Bamunga, we focus on the patient safety and quality.

So this is another proven record of our quality system. We got third re accreditation from Advance and this time, this accreditation will last for four years. Next slide. This is another clinical care program certifications. We got the recertify of our heart failure programs.

So this is the first recertification for heart failure and another breast cancer programs that we achieved the first certification. In May, we make decision to launch disease screening campaign. This is not only the shake up programs that we provide special price for our patients. The objective is we would like to generate high downstream revenue. So this campaign will be last for four months from May to August.

Only two months past, we achieved nearly 96,000,000 baht. So the very successful program is the gastroenteroscopy and mammogram for breast cancer screening. Next. This is to show that we continue to upgrade our medical innovation. This is a new DaVinci or robotic surgery.

We upgrade to be the another version we call DaVinci Xi. The objective of this upgrading version, we would like to expand our robotic surgery to more specialties. In the past, we the majority is on the urology and general surgery, but now we can expand to CVT and ENT and colorectal and gynecology. We start in March and until the July, we success around 25 cases, which is only four point five months. Each case will spend around over about million baht per case.

And not only the specialty that we expand, we also have nearly 46 surgeons that more than half now completely training. So we will have more robotic surgery cases Next, this is another one that showing the group practice that for the advanced arthritis and arthroplasty center, we focus on our orthopedics expertise and robotic assisted surgery as well. So we got a group of the surgeon from July and our full time surgeons work collaboratively, so we can receive more patients. Next. This is my last slide because today we have many presenters.

So the total center of excellence for AS center excellence, if you see the numbers, we still have the very good growth for our heart center, which is nearly 8% driving by the expert and international patients and nearly 4% growth from neuroscience center from the Thai patients. For the rest, I think the minority is urology and another one, the breast, mainly declined from international patients. In total, center of excellence, we have declined only 2%. So you see that according to Kunil mentioned about Kuwait market, Kunlativ mentioned about Myanmar earthquake and Bangladesh, we have many unexpected event that impact to our volume. However, our BD team is very work very hard and did put a lot of effort and dedication, they can provide the new markets and also strengthen to our key stakeholder and third party payer relationship, including our corporate sales team and insurance team as well.

So thanks to everyone, Kai. So this is my last slide. Thank you.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: Thank you, Ka.

Patra Pong Kang Pakti, Chief Annual Executive Officer for Cancer Center, Lung Lad Hospital: Good morning, everyone. I’m Patra Pong Kang Pakti, Chief Annual Executive Officer for Cancer Center, Accessory Services, Health Information Management and Human Resources. Today, I’m honored to present our strategic initiative, expanding of our holistic cancer care. This is under the news Cancer Comprehensive Care in the Futures at Bangladesh. This is one of the strategic rationale is about the global cancer landscape.

Cancer is growing global health crisis. For this year, ’25, the world is expected to see over twenty million new cancer cases a year and projections to thirty five cancer new cases in 02/1950. The interesting information is about over half, almost half of the new cancer cases, around forty nine percent we detected in the Southeast Asia country, including Thailand, and fifty three percent of that is the cancer deaths in every single of the year, very interesting. For the another key market segment country is Middle East, even we cannot file the officially statistic of cancer incident, but we have known that the case of cancer incident in increasing rapidly, that’s come from the lifestyle changes and also aging preparations. The type of cancer is the more common, is the breast cancer and colorectal cancer.

In Thailand, our home country, we expect that for this year, we will have the incident of nucleases around one hundred eighty three thousand cases. In the in collection list, we are improving in disease free survival and overall survival is driven by the early detections, predictions beside the exotic and personalized care by targeted therapies. From this one of the strategic rationale that BAMGRID as a global leading healthcare provider, we recognize that the cancer care should be comprehensive, continuous and personalized. We entire the span of the patient journey, including the prediction and screening through the diagnostic and treatment to the palliative care and the personalized of care is still be required a multidisciplinary of subspecialty of oncologists and healthcare professionals. Increasingly, medical oncologists still with the main key player of the systemic cancer, hematologic oncologists for the breast cancer type.

In combination of therapy adjuvant and the old adjuvant, we still need some oncology radiologist. And we need to engage the surgical oncology at the starting of the patient who detected the cancer T2 for T2 biopsy. There are not some of type of the cancer we need very sub specialty of cancer type in example of breast cancer and other professional including palliative specialist, oncology nutritionist, oncology nurse, oncology pharmacy, etcetera. This team work together to ensure that we will provide effective treatment and personalized care in every single of patients. To serve the strategic rationale and strategic initiative, this is the strategic objective to decide for our new campus facility for the main four main initiative starting with the we expand physical capacity and clinical capability for cancer patient right now to enhance care process and patient experience in not just only for the patient cancer cancer patient, but also the families and the other people in the campus to deliver the personalized of cancer care journey for every patients, because all of every single of the cancer patient has different type.

If you can more precisely, we can solve the problem very fast and very targeted. And the last but not least, to integrate advanced technologies and create a hearing environment and atmosphere. The initiative for Form four initiative transform into the tangible infrastructure and ensure the care process is to deliver the service excellence and personalized care. One of the key strategy that we have done since last year to strengthen the team and ensure that we are building the new campus and the new care model to serve the future of cancer. We have collaborated with our leading healthcare providers, Matt Generals, Wickham’s healthcare provider.

We are to co developing the care model and we create the design facility, empower the team and strengthen the team to be the same goal. The three goal is about a good clinical outcome and good patient experience and also the good quality of life for every single of the patients. I would like to introduce the campus facility. The facility is located between Sukhoi Soi 1 and Sukhoi Soi 1 Sled 1. This one, if you see, the building connected with the Bamurat Main Building B by the connecting bridge.

That mean the patient can walk through the Banglat Building B to the Annex Building. The Annex, this is the nickname of the new campus of cancer building. The facility overview is spanned by six floor and one basement. Starting with the Ground 4, the Ground 4 which is only the main entrance and about some of the parking, but the parking areas will be in the Building C and the Building A. For the clinic facility, for all the sub specialty of oncology and healthcare professional, we dedicate the second and the third for them.

And the first four, we decide to one patient centric for breast cancer. We’re including the breast center and breast imaging together in the same area. For the Chemotherapy Administration, we dedicate Level five and Level six, including Chemotherapy Admitter and we’re adding some Psychological and Music Therapy area at in the Sixth Floor. For the basement, we introduced very new brand new about the Kitchen Chalk Kit for teaching the family and the patient, the cancer patient when they come back their home. We would like to introduce the cancer that is restaurant, not just only for the patients, but also for all the people who interested about the food without carcinogen.

We introduced about the Healthy Living program, the wellness integrated with the Cancer Care program and also we have some the imaging boutique for the patient. In summarize, the key highlight of the capacity expansion. The first one, we increased consulting room from 10 to 23 to serve the growth in the future and to serve our all the subspecialty oncologists. Secondly, we’re integrating Breast Center and imaging in the patient centric model care model. But for the breast cancer, they can go to the same area and finish one stop service.

We’re designing the teamwork room and the tumor board room. This is a very important area that we learn from the Matt and Brickham Cancer Center, because the health professional need the area for make decision, for talk to the patient and family for to do the tumor board action activity before they deliver and final decision about the tailor of the treatment plan in every single of the patients. We expand chemotherapy infusions room. The room is bigger at the number from 18 to 30, designed by cultural sensitivity and adding some psychological support, music therapy and palliative care. And the last but not least, we would like to introduce the Cancer Day at Kitchens for teaching the cancer patient and family.

Cancer Day at Restaurant for all the people, Imaging Boutique for some of the patient and complementary cancer program by integrating with Vital Eye and Doctor. Purikit will introduce in the detail. For the interior design and conceptual design, we have five, the principal design. The first one, we focus on patient centric. Second one, we create the area, decide the area for collaborative and comprehensive care to serve to all type of the cancer.

We focus on the safety and flexible space to our child by situation and serve for the future growth of cancer patients. We integrated with longevity and wellness because this is a very important part of the cancer program. And the last is healing. We try to decide atmosphere to healing and we will create the green space for our patient and family. And finally, right now, I would like to update projects.

The project projection around 40%. Right now, we are on state of kinematic design, it’s about interior design. And concurrently, we have started the basic constructions on the basement. We expect to complete the project in during 2027. In the last slide, I would like to tell all of you that it’s not just the building, it’s about the strategic lift, which expanded the clinical capacity, clinical capability by global collaboration and we create the personalized care for every single of the patients.

We are ready to meet the future era of the cancer. Thank you for your attention and look forward to welcoming you when the news open. Thank you.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: This will be a most modern, advanced technological, comprehensive cancer center in all of Southeast Asia, especially with our partnership with Mass General Brigham because they’ll be bringing their clinical practice guidelines here, and there’s some other technologies that we’re not going to get into now, but we’ll be the only ones in Thailand offering it. Thank you, Gao. Doctor. Polakit Kapp?

Doctor Kwala Kip Chee Hakir, Chief Executive Officer, Vital Life Scientific Research Center, Esperan: Good morning, everyone. Let me close the presentation session today with the Vital Life. I’m sure most of you have heard about Vital Life. And this year, we are going to mark the twenty fifth anniversary. Who we are?

Many times we talk about Vital Life, but let me start off with the fundamental shift of the modern medicine, where we try to move from the reactive sick care model into the proactive preventive care model. And that’s why Vital Life comes into play. Memorial Hospital is 45 years old, Vital Life Scientific Wellness Center is almost 25 years old and it was founded in 2001 with the idea of introducing the first of its kind anti aging, later on moving to the wellness and most recently longevity medicine. And later on, Esperanz, which is the third entity that would come into the picture, like Patrapol mentioned, this is the Integrative Cancer Center, but we may not have time to talk about these aspirants for today, so we’ll keep it for the next time. As I mentioned, if you’re talking about how we are going to shift from the reactive from the sick care into the proactive preventive care to serve the longevity economy, we need to talk about the aging population.

If you look on this slide, the world’s 60 plus population would double by 02/1950. Economy that serve the older people is not something that we can just like overlook anymore. And I think this is real. If you look at the right figure, you can see that if I use The U. S.

Economy as the model, the percent of The U. S. GDP that would account for the longevity economy is perhaps beyond the other economy. By 02/1932, it will be like 52% compared to 48% for other U. S.

Economy. So we have seen, I would say, an immense opportunity to create the center, which we haven’t seen before in the region. And Vital Life with scientific evidence will be one of its kind, where we combine and unite advanced diagnostics, preventive medicine, personalized healthcare, together with the AI driven innovations. So I would say that this year for Vital Life, it’s the year of expansion, the year of innovation and also the year of collaboration. Last year, when I presented and maybe you have heard from my colleagues in 2024, we did have a huge transformation for Y2Life, which I can show you the slides later on.

So this year, we’ll move from the seamless transformation into the expansion, collaboration and innovation. Why are we talking about the longevity, which is in the new era of medicine? People live longer. The mission and vision for Vital Life, I would say, is very simple, but very bold. So, we’re trying to make people live healthier, better, not just longer.

And that’s why longevity is the new era of the medicine. This is not theoretical for us in Burma Rudd Hospital, but I think it’s I would say that the size is here. The opportunity is very global and the demand is growing, as I show you. In order to do that, we need to be served by people around the world in terms of scientific evidence. And also, we brought in the scientific advisory board from around the world, like these four renowned world renowned scientists.

Together with our twenty plus years of expertise, insights from advanced biomarkers through cutting edge diagnostics. As I mentioned, we’re trying to focus on proactive prevention through holistic launch of the approach. And also, what we’re trying to close the gap, again, is to focus on the preventive on the proactive care, not just only for the healthcare. And that’s why youthful longevity term comes into play. We’re trying to go beyond just conventional healthcare.

We have created this concept and this is our own concept, illness wellness continuum. If you look at the comfort zone and sometimes we call false wellness or false condition, like you’re not sick, but at the same time, you have some underlying risk factors behind the surface, beneath the surface. We’re trying to move you from the comfort zone, which is the false wellness to the right, which is the high level wellness, maximize and optimize the health well-being by using diagnostics, prevention, innovation and also AI driven intervention. Most people who come to Boomerang Hospital will fall into the leftmost disease, sometimes they have poor health condition And the people in the medical community have done so well to bring all of them from the leftmost to false wellness. But Vital Life has tried to bring them from false wellness all the way to the right most, which is the maximize well-being.

And that’s why we talk about longevity across the lifespan here at our organization, ranging from prenatal testing, newborn genetic screening, wellness and longevity, early disease screening using advanced diagnostics. Even when you are trying to set up the family or even like plan for having a baby, we will bring all diagnostics into the picture, providing preconception genetic testing and all the way to the geriatric care. Given all of this last year, I think it’s about ten months, we have opened the Building B, which is a six-four medical center and just strategically located within this campus. If you have a chance, I would welcome all of you to see it is the patient centric style, non fixed room. And I know that the Annex Cancer Center will be very similar to the point that the patient, the customers, clients or even sometimes we call health partners will be the center of focus.

All medical personnels will go and serve those clients and patients in the room. We also opened the Vital Life clinic in Phuket at the very same time. So the performance has been very well in the past four months. Again, very similar to Bunrak Hospital, so we serve patients and clients around the world across six continents. So that’s why when we look at the international strategy and market for this year, number one, we focus on service innovation and differentiation, not just physical innovation, but also conceptual innovation.

Digital and AI would be very trendy as most of you know. We have used digital and AI platform in our marketing, and I can show you later. We have launched new programs providing high intensity. And also this year, again, is the year of collaboration for us. And you will hear more and more from us throughout the 2025.

But basically, I’ll give you an example, luxury wellness tourism integration, corporate and high net worth or ultra high net worth collaborations. I’m going to skip these. Okay. So with digital and AI power marketing, as you can see that we serve internationally. So we have launched multilingual websites serving seven languages together with a new Vital Life mobile application that can be connected with Burmuran Hospital application.

For service innovation and differentiation, this year, we focus on lifestyle medicine. Lifestyle medicine is not just only the idea, but it’s the clinical discipline for us. So, we provide lifestyle medicine at Vital Life as an approach to modifying risk factors using lifestyle coach. And lifestyle coach has been we have two or three lifestyle coaches that have been Mayo Clinic certified. We also provide recovery unit following the exercise.

We also launched the longevity gym on Soi 1 together with physical performance unit and also lifestyle cafe integrated with IoT and wearable devices. Moreover, we are going to have the Vitalife IV Lounge, which is one of the expanded unit. I’ll give you example of a couple of services that we have recently launched in the past several months. The first thing is a Swiss made machine called DD Robotic, which this one is the AI driven muscle centric physical training machine. So you can use this machine to improve and augment your balance, your gauge, your reflex and at the same time, your cognitive function.

The other thing that has been launched at least in the past couple of months called Cognify program, again, this is Swiss made non invasive brain stimulation technology that help improve your brain function and this is suitable for people with various indications ranging from just brain fog or even like brain health, all the way to mild to moderate Alzheimer’s disease and Parkinson’s disease of any levels. Again, as I mentioned, we have launched new products and high intensity program called Vital Subscription Program. If you remember some of the slides that I mentioned, we try to close the gap between sick care and well care and then provide the illness, continuum. And that’s why subscription programs comes into play. Because if you would like to look at the patients or customers in the longitudinal view, we have to make sure that they follow the programs that we have set forth.

Again, personalized, however, together with all the set programs. Otherwise, they would not fall into the right wellness program that we are supposed to follow. This is one year subscription program for an in-depth checkup and scientific aging evaluation together with our own AI engine. So you can monitor all the data together with IoT and wearable devices. However, people will look at the subscription program, they will feel that it’s very fixed, which is not true.

It’s still personalized. And also, we provide them on top with a personalized lifestyle coach that has been a Mayo Clinic certified. I’m going to finish here with all the updates for Vital Life. And again, I think we are going into the twenty fifth anniversary next month. If you have any questions, feel free to ask.

Thank you.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: Thank you, Doctor. Poliquette. At our next meeting, I’m going to introduce you to a gentleman by the name of Henrik Andersen. He is our Chief Technology and Innovation Officer. We’re doing many, many different things regarding AI.

We’ve talked a little bit about it here, but we’re doing many, many different applications of artificial intelligence at Pammengrat. And I’ll ask him to give you a fifteen, twenty minute presentation. On the final item, as far as the agenda goes, is the Q3 twenty twenty five guidance. I’m guiding 3% to 5% top line revenue growth for Q3. We’ll see where that goes, but I’m optimistic given where we are, where we come out of Q2 and where we’re starting in Q3.

That being said, we’ll take questions. And while you’re thinking about questions, do you have any comments, Daniel, about insurance operations that you’d like to offer? I always like to not tell Daniel that I’m going to call on him. I want to see how well prepared he is. He’s generally very well prepared.

Daniel, Insurance Operations Representative, Lung Lad Hospital: Yes. Well, without support from the background and the presentation, I’ll just give you a quick update on the Insurance business. From a year to date basis, we continue to post solid and healthy growth of 12%. How is that broken down into? So from an OPT standpoint, it’s down around 4%.

But on admission standpoint, it’s up 4.5%. The key driver this year actually and also this quarter is intensity. Intensity has grown by 16%. Now where has that come from? It’s come from our heart center that Kunleng mentioned, but also oncology, neuroscience, all the key specialties that we’re focused on.

So we start to see high demand coming in from the oncology side on the insurance segment. Kungao has been working very closely with us on this aspect. And recently, we started noticing a lot more neuroscience issues regarding stroke and cancer related issues in the brain as well. Some key takeaways from you as well is maybe after a while, you might be thinking, okay, many of our existing patients converting simply from self pay to insurance. And some of that is true.

But what I like to see and what we have seen is very encouraging. Number one, the percentage of new patient revenues, I. E, those who registered during this fiscal year and have used our services, the revenue generated from new patients is 3.5%. How does that compare with the six months last year? It’s 3.4%.

And in 2023, it was 3.1%. So we’re increasing the percentage of new patients from the Insurance segment, and that is quite encouraging. That is on top of a higher base as well on Insurance. So in growth terms for the new business segment, we’re up approximately 22% on new patients. From existing patients, we’re up around thirteen percent.

So it’s quite healthy across the board as well. And I think going forward, how we look at things is there has always been the concern in the past few quarters about co pay and also about how simple disease admissions may impact Bamunra. There has been some impact. We’ve seen some volumes decrease. But given the offset in intensity, we’ve managed to follow through with that.

We’ve managed to cover that and managed to post growth in the areas that we’re targeting in particular. We also think that the economic situation is, of course, somewhat weak. So we start to see a slowdown in local insurance growth. Local insurance has trailed behind international insurance. It’s around 8% in terms of growth, but international insurance has grown around 17%.

So that is also good and bad news because on the international insurance side, the average spend is higher. But on the local insurance side, there’s a lot of volume coming in. So there is some of that offset coming in. We continue to work how we work, which is to focus on developing and strengthening our strategic relationships and partnerships. On the insurance agency side, that has posted particularly strong growth and that has been one major driver of new patient growth as well.

So we’ve started to see referrals continue

Doctor Kwala Kip Chee Hakir, Chief Executive Officer, Vital Life Scientific Research Center, Esperan: to

Daniel, Insurance Operations Representative, Lung Lad Hospital: see referrals from upcountry for complex treatments, as I mentioned, oncology, heart, neurology, etcetera as well. So I think that’s a good quick update for you. Thank you.

Kunil Sorrentino, Corporate Chief Strategy Officer, Lung Lad Hospital: Yes. This business continues to grow for us. It’s somewhere between 3,500,000,000.0 to $4,000,000,000 Am I right, Daniel, on an Yes. Annual

Daniel, Insurance Operations Representative, Lung Lad Hospital: We’re on track to be at $5,000,000,000 this year already.

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