Since establishment, we have grown rapidly through both organic growth and investments. We seek to align our growth to anticipate and meet the evolving needs of our patients, and to expand into new service areas and jurisdictions where there is patient-demand.
Expand Into Carefully Selected Markets
The Company plans to expand its network of franchised dental clinics into carefully selected and diverse geographic markets, such as Indonesia, Hong Kong, Australia and China.
The Company focuses on markets that:
(i) offer the opportunity to gain market share leadership;
(ii) have a prevalence of dental group practices;
(iii) have favourable demographics and projected economic growth; and
(iv) have access to dental schools.
To date, the Company has identified multiple markets that currently meet its market selection criteria. The Company believes that operating in multiple markets increases the attractiveness of the Company and its franchisees to insurance companies who seek to contract with dental providers that are strategically located in attractive markets and that offer a comprehensive range of multi-disciplinary dental care services.
The Company also believe that China represents an attractive growth market driven by strong fundamental and demographic factors. Through leveraging the strategic value of possible joint venture partners, we seek to replicate and adapt our proven business model to the challenges and opportunities of the Chinese market, seeking to use contractual arrangements that are appropriate for our strategic objectives.
Franchise With And/Or Acquire Established Dental Clinics
Add Value To Each Franchised Clinic With Proprietary Technology
The Company supports its franchisees with a broad range of services designed to enhance their practice revenue, improve operating efficiencies and expand operating margins. The Company shares the best practices with each franchisee and assists them with an analysis of its revenue and payor mix, capacity, utilisation, staffing, scheduling and productivity. The Company also integrates our proprietary dental practice management cloud system, providing assistance with modern information systems, budgeting, financial reporting, facilities management, supplies and equipment procurement, quality assurance initiatives, billing and collecting accounts receivable, marketing and recruiting, hiring and training support staff.
We believe that our cloud system is critical in maintaining our competitive advantage. We plan to continuously enhance, upgrade and leverage our customised and scalable technological systems to further improve service delivery to our clients to foster relationships and maximise patient retention. We expect these initiatives will help to facilitate our delivery of affordable and accessible dental services, which allows us to reinforce our value proposition to our clients.
Our fully-owned healthcare information database continues to grow as our client base increases. By leveraging on our integrated business intelligence and analytics platform, we believe that we are able to organise and analyse data to obtain insights on healthcare service patterns. These insights can be used to enhance clinic’s service quality, save costs and provide greater customisation in designing solutions for our patients.
Focus On Quality Care
Excellent patient care is our first priority and we aim to continue to capitalise on improved customer feedback by combining our provision of consistent, high-quality dental care with more flexible and convenient services, such as more-convenient opening hours. We are also leading industry efforts to improve clinical excellence and provide practice transparency. We have built and will continue to refine our centralised talent sourcing function, and we are in the process of launching the NF Academy, a dentist training centre and online training initiative for continued professional training of our dentists, hygienists and nurses. The employment of KPIs and centralised management systems improve visibility of dentist performance and drive revenue delivery. We are also focused on retaining and training our hygienists and nurses, who provide critical elements of our dental services.
The Company pursues various initiatives to help franchisees provide the highest quality of care and service. The Company provides its franchisees with the opportunity to share their clinical knowledge and best clinical practices. The Company also implements comprehensive patient satisfaction surveys administered by independent third parties.
The Company believes that its focus on quality care enhances:
(i) franchisee’s relationships with patients;
(ii) franchisee’s ability to recruit dentists; and
(iii) the Company’s ability to attract new dental groups as franchisees.
Our dentists will continuously pursue medical education, training and product knowledge, and capitalise on technology advancements to provide comprehensive and enhanced types of dental services. At the same time, costs to the patients are carefully controlled so as to maintain affordability with no compromise on the standard of care. We also intend to use information technology to provide better service through more efficient handling of patient data, a more efficient billing process and to streamline our inventory management.
Enhance Value Proposition To Patients & Capture More Margins
We believe vertical integration across healthcare value chain into new service segments will continue to be an attractive growth area due to increasing demand for specialty services in the Asia-Pacific region. The Company will continuously seek to provide new services on top of dental services. The Company believes that there is much potential in the General Practitioner and Aesthetics market and may seek to convert each clinic to provide dual type of services to add value to the Company’s business.
Our successful integration of different businesses in each clinic will add to our ability to grow organically. We may also consider acquiring such complementary clinic and we believe that our disciplined approach to growth allows us to concurrently sustain organic growth alongside our acquisition strategy, by ensuring that management attention and resources continue to be prudently deployed to achieve operational efficiencies.
We are well positioned to maximise the benefits from our vertical integration, as we have an extensive base to recommend patients to other services we also offer. Through cross-referrals of services and patients and refining operational efficiencies, we seek to increase profitability across our businesses.
Continue To Strengthen Profitability Through Economics Of Scale
Whilst we differentiate our offering through the provision of consistent, high-quality dental care to our patients, we believe that we are also able to drive cost synergies by standardising, simplifying and sharing systems and best practices across our Group. We intend to drive patient numbers through postal and SMS marketing programmes, through investments in customer relationship management (“CRM”) technology and through improved online interaction with our patients. Our initiatives centralising and insourcing IT, talent sourcing, training, clinic management, compliance, health and safety and other functions will continue to drive efficiency, and we intend to lower costs by using our scale to negotiate volume discounts in supply chain sourcing and procurement. At the same time, we intend to leverage the returns from our central costs to grow our revenues by investing in high quality personnel, processes and IT. As part of our efforts to exploit economies of scale, we also intend to continue to merge the smaller practices which we acquire under our existing NoFrills Dental franchise.
Expand Through Acquistions, Joint Ventures Or Strategic Alliance
Expansion through value-creating acquisitions, joint ventures or strategic alliances will continue to play a key role in our growth strategy. Compared to greenfield projects, acquisitions, joint ventures or strategic alliances allow us to establish an immediate presence in new markets, expand service offerings and acquire new clients much more rapidly.
We will continue to adopt a disciplined approach to the execution of our growth strategy and focus on identifying healthcare business and assets with the following key criteria:
(i) a strong management team;
(ii) strong or established brand and reputation;
(iii) proven track record of profitability;
(iv) synergies with our existing businesses; and
(v) potential for further growth.
We will continue to leverage our business development team and on-the-ground expertise to evaluate market dynamics and risks, and assess potential target companies and business partners. In addition, we will continue to work with our partners who have relationships with the incumbent players in local markets to provide us with referrals to potential acquisition targets and opportunities to enhance our business development initiatives.