Apex development of manufacturing, marketing, consumer healthcare products

Apex Healthcare Berhad is founded in year 1962.The
founder of Apex Healthcare Berhad is Mr. Tan Peng Kee. The headquater is in
Melaka. Apex Healthcare Berhad is a leading healthcare group. It operates in
Malaysia, Vietnam, Myanmar and Singapore. Besides that, Apex Healthcare Berhad
is listed in Bursa Malaysia and it is an investment holding company. Apex
Healthcare Behad is involved in the process of developing, manufacturing, sales
and marketing, wholesaling and distribution of the pharmaceutical and consumer
healthcare products. Apex Healthcare Berhad provides a various types of
pharmaceutical and consumer healthcare products such as anti-defectives, anti-diabetics,cough
mixture and many more. They are produced in the form of oral liquid, tablets, capsules,powder
and others. Through the brand names of AVEX, PURE HEALTH, KAPS and XepaSP ,it
distributes its products to consumers.

       The
current financial standing of Apex Healthcare Berhad is stable and there is no
cash flow problems in the company. The share capital in the company now is
RM117146093.Apex Healthcare Berhad recorded that the consolidated revenue in
year 2016 is RM581 million and is higher 10% than in year 2015.The financial
position and liquidity of Apex Healthcare Berhad remains strong in year
2016.The total assets of the company in year 2016 rises to RM418407878 compared
to year 2015.The total liability of Apex Healthcare Berhad also increases from
RM2613795 to RM106020564.

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        Although Apex has no problem on cash flow
and the financial is stable but it also wants to raise its funds to upgrade, add
new infrastructure and construct a new oral solid dosage manufacturing
facility. Solid-dosage manufacturing is the process that involves advance
technologies to take a formulated API through to a completed measurement frame.
It is to create capsule, tablets, powders and others to cure illness. The other
purpose that Apex Healthcare Berhad wants to raise funds is for the development
of manufacturing, marketing, consumer healthcare products and others. It also
requires funds for new infrastructure and equipment. In future plan, Apex
Healthcare Berhad wishes to upgrade the facilities and investigate more
consumer healthcare products, pharmaceutical and diagnostics and surgical
supplies. Furthermore, there are also new product launches. The three new group
brands, name AEVA consisting of a range of generic pharmaceuticals, SMART
ATHLETE comprising sunblock spray and lotion and HENNSON, a range of adult
diapers were introduced to the market. The company needs about RM3 million to
conduct the plans. So, it needs to raise funds in order to conduct these plans.

      Apex Healthcare Berhad raises its funds by
investment from the shareholders. Apex Healthcare Berhad issues  or allots the ordinary shares. Shareholders
subscribe the  ordinary shares. The
ordinary shares are the shareholders’ investment in the company. Through
selling ordinary shares to the shareholders, it can help the company to raise
the capital for the future plan that Apex wishes to carry out. Apex Healthcare
Berhad also use leasing in order to raise the funds.Leasing is a contract
between two parties when Apex Healthcare Berhad agrees to rent its assets to another
party.

      In my
opinion, issuing or allotting shares in order to raise funds for the
company  is the most appropriate method. This
is because it is the way to raise funds without borrowing and incurring too
much debt from the financial institutions. Apex Healthcare Berhad can avoid
taking on debts from loans. This will secure the company when it is unable to
pay for the debts. Apex Healthcare Berhad can use this source of funding to
implement the future plans. Besides that, Apex Healthcare Berhad can pay
dividend to the shareholders only when it can make the profits. Other than
that, I think that Apex Healthcare Berhad raises funds through share capital is
most appropriate is because the shareholders and the company share the risk of
the business together. If the business fails, the company no need to pay back
the money to the shareholders. Due to this method, the cash flow of Apex
Healthcare Berhad will be stable and also the liquidity because the company has
enough capital to generate the future plans.  

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