hospitals for expansion by the year
2018. Other that increasing the number
of KPJ hospitals organically, the Group
plans to also increase its capabilities
through acquisition or joint ventures.
Additionally, KPJ’s Indonesian operations
reported a stellar performance in 2015,
recording revenue of RM52 million which
is an increase of 30.9% from RM39.7
million a year earlier. This was due to
higher revenue-generating outpatient
activities at both its hospitals, particularly
Rumah Sakit Bumi Serpong Damai
(“RSBSD”) which is in its sixth year of
operations in Indonesia. Consequently,
profit jumped 198% to RM2.3 million
from a loss of RM2.3 million in 2014.
The growth in outpatients was mainly
attributable to the implementation of
Indonesia’s Jaminan Kesehatan Nasional
(“JKN”) scheme, which is expected to
trigger further demand for hospital-
based services in the country. Under
this scheme, the Social Security
Management Agency (“BPJS” – Badan
Penyelenggaraan Jaminan Sosial
Kesehatan) acts as an insurer, providing
healthcare management for the public.
BPJS had entered into a contract with
RSBSD, which is now a panel hospital
for the JKN scheme, thus boosting the
hospital’s outpatient activity.
Meanwhile, contributions from the
Vejthani Hospital in Thailand increased
by 58.3% to RM3.8 million from RM2.4
million in the preceding year, brought
about by increased political stability in
the said country.
Our Senior Living Care Facility in
Australia has in 2015, increased its
capacity to 648 beds from 540 beds.
This resulted in 24.7% higher revenue of
RM36.8 million compared to the
RM29.5 million recorded in 2014.
However, losses increased to RM5.5
million from RM3.2 million in the
previous year due to higher depreciation
and interest costs.
Even though our revenue has improved
by 7.9% in 2015, the Group’s net profit
was however marginally lower by 1.4% at
RM145.13 million compared to the
RM147.25 million recorded in 2014. This
was largely due to the provision for the
Employee Share Option Scheme (“ESOS”)
and Restricted Issue to Hospital
Consultants based on an independent
valuation at the financial year-end.
In the year under review, the bulk of the
Group’s revenue was largely generated
by its Malaysian hospitals. This
a c h i e v eme n t s e r v e s t o f u r t h e r
substantiate the Group’s plans to build
eight new hospitals over the next five
years, of which six are expected to be
operational by the end of 2018. KPJ has
also identified six of our existing
16
President & managing
director’s statement
