Asian Medical

ASIAN HOSPITAL, INC.
2020
NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS
AND
INFORMATION STATEMENT
SEC FORM 20-IS
NOTICE OF VIRTUAL ANNUAL MEETING OF STOCKHOLDERS
Please be advised that the Annual Meeting of the stockholders of ASIAN HOSPITAL, INC.
for the year 2020 will be conducted online on Tuesday, 15th day of September 2020 at 10:30
A.M. Stockholders may watch and participate in the proceedings by signing on at the
following URL address: ahiagm.asianhospital.com.
The following shall be the agenda of the meeting:
I. Call to Order
II. Certification of Notice and Quorum
III. Approval of the Minutes of the Annual Meeting of Stockholders held on April
30, 2019
IV. Presentation of the Report of the Chief Executive Officer
V. Presentation of the Audited Financial Statements of the Corporation for the
Year Ended December 31, 2019
VI. Ratification of the Corporate Acts of the Board of Directors since April 30,
2019
VII. Election of Directors
VIII. Appointment of External Auditor
IX. Adjournment
Minutes of the 2019 Annual Meeting of Stockholders is available at the website of the
Company and will be made available to all stockholders as of record date along with the
Information Statement.
The Board of Directors has fixed the close of business on August 25, 2020 as the record
date for the determination of stockholders entitled to notice of and to vote at the Annual
Stockholders’ Meeting.
Given the current circumstances and in order to ensure the safety and welfare of our
stockholders in light of the COVID-19 situation, the Company will dispense with the physical
attendance of stockholders at the meeting and will allow attendance only by remote
communication and by voting in absentia or voting through the Chairman of the meeting as
proxy.
Duly accomplished proxies shall be submitted on or before September 14, 2020 at

Executive Office, 5th Floor, Tower 2, Asian Hospital and Medical Center, 2205 Civic Drive,
P P
Filinvest Corporate City, Alabang, Muntinlupa City and/or by email to

ahiagminfo@asianhospital.com.
Stockholders intending to participate by remote communication should notify the

Corporation by email to ahiagminfo@asianhospital.com on or before September 11, 2020.
Stockholders may vote electronically in absentia, subject to validation procedures.
The rules and procedures for participating in the meeting through remote communication
and for casting their votes in absentia are set forth in the Information Statement.
In compliance with the SEC Advisory dated May 6, 2015, a copy of the Interim Unaudited
Financial Statements of the Company as of and for the quarter ended March 31, 2020 with
Management Discussion and Analysis is posted in the website of the Company. A hard copy
of the same Interim Unaudited Financial Statements will be provided to any requesting
shareholder, free of charge.
Very truly yours,
RICARDO M. PILARES III

Corporate Secretary
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 20-IS
INFORMATION STATEMENT PURSUANT TO SECTION 20

OF THE SECURITIES REGULATION CODE
1. Check the appropriate box:
[] Preliminary Information Statement
[x] Definitive Information Statement
2. Name of Registrant as specified in its charter Asian Hospital, Inc. (“AHI”)
3. Philippines
Province, country or other jurisdiction of incorporation or organization
4. SEC Identification Number AS094-00011249
5. BIR Tax Identification Number 004-502-062-000
6. 2205 Civic Drive, Filinvest Corporate City, Alabang, Muntinlupa City 1780
Address of principal office and Postal Code
7. Registrant’s telephone number, including area code (632) 771-9000 to 9002
8. Date, time and place of the meeting of security holders
Date: September 15, 2020

Time: 10:30 AM
Place: To be conducted virtually and may be accessed at
ahiagm.asianhospital.com
9. Approximate date on which the Information Statement is first to be sent or given to

security holders is on or before September 8, 2020.
10. Securities registered pursuant to Sections 8 and 12 of the Securities Regulation Code
(“SRC”) (information on number of shares and amount of debt is applicable only to
corporate registrants): Not applicable
11. None of AHI’s securities is listed on the Philippine Stock Exchange.

2
PART I.
INFORMATION REQUIRED IN INFORMATION STATEMENT
A. GENERAL INFORMATION
1. Date, time and place of meeting of security holders
Date: September 15, 2020

Time: 10:30 AM
Place: To be conducted virtually and may be accessed at
ahiagm.asianhospital.com
Mailing Address: 2205 Civic Drive, Filinvest Corporate City

Alabang, Muntinlupa City
The date on which the Information Statement is first to be sent or given to stockholders is on
or before September 8, 2020.
2. Dissenters' Right of Appraisal
Under Section 80 of the Revised Corporation Code of the Philippines (the “Revised
Corporation Code”), a stockholder has the right to dissent and demand payment of the fair
value of his shares in the following cases: (i) amendments to the Articles of Incorporation which
has the effect of changing or restricting the rights of any stockholder or class of shares; or of
authorizing preferences in any respect superior to those of outstanding shares of any class;
or of extending or shortening the term of corporate existence; (ii) sale, lease, exchange,
transfer, mortgage, pledge or other disposition of all or substantially all of the corporate
property and assets; (iii) merger or consolidation, and (iv) investment of corporate funds for
any purpose other than the primary purpose of the corporation.
At the September 15, 2020 annual stockholders’ meeting (the “Annual Meeting”), no
matter shall be acted upon by stockholders as would give rise to a right of appraisal.
3. Interest of Certain Persons in or Opposition to Matters to be Acted Upon
There is no person who has been a Director or officer of AHI at any time since the
beginning of the last fiscal year, or who is a nominee for election as Director, or an associate
of any of the foregoing persons who has a substantial interest, direct or indirect, in any matter
to be acted upon at the Annual Meeting. No member of the AHI’s Board of Directors (the
“Board”) has informed AHI that he/she intends to oppose any action to be taken by AHI at the
Annual Meeting.
B. CONTROL AND COMPENSATION INFORMATION
SEC Form 17-IS

December 2003
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4. Voting Securities and Principal Holders Thereof
(a)The total number of shares issued and outstanding as of July 31, 2020 is
1,936,728,391 shares. All these shares are common shares, with each share entitled to one
vote in accordance with the Amended By-Laws of AHI. In respect of the Annual Meeting, all
of the issued and outstanding shares have voting rights, with the exception of delinquent
4,949,956 shares. 1 Under Section 70 of the Revised Corporation Code, no delinquent stock
shall be voted for or be entitled to vote or to representation at any stockholders’ meeting, nor
shall the holder thereof be entitled to any of the rights of a stockholder except the right to
dividends in accordance with the provisions of the Revised Corporation Code.
(b)The record date for purposes of determining the stockholders entitled to vote is
August 25, 2020 (the “Record Date”). Stockholders are entitled to cumulative voting in the
election of the members of the Board as provided for in the Revised Corporation Code.
(c) Under Section 23 of the Revised Corporation Code, a stockholder may vote such
number of shares for as many persons as there are Directors to be elected or he may cumulate
said shares and give one candidate as many votes as the number of Directors to be elected
multiplied by the number of his shares shall equal, or he may distribute them on the same
principle among as many candidates as he shall see fit: provided, that the total number of
votes cast by him shall not exceed the number of shares owned by him as shown in the books
of AHI multiplied by the whole number of Directors to be elected: provided, however, that no
delinquent stock shall be voted.
There is no condition precedent to the exercise of the stockholders’ cumulative voting

right.
(d) (i)Security Ownership of Certain Record and Beneficial Owners
The names, addresses, citizenship, number of shares held, and percentage of total
ownership of persons (including any group) owning more than 5% of the outstanding voting
shares of AHI as of 31 July 2020 were as follows:
Title of Name and Address of Name of No. of Percen

Class Record Owner and Beneficial Citizenship Shares 2 tage of
Relationship with Owner Class
Issuer
Common Metro Pacific Hospital MPHHI Filipino 1,016,151,999 52.47
Holdings, Inc. (formerly, (R & B)
Neptune Stroika
Holdings, Inc.)
(“MPHHI”) 3
1AfterAHI sent letters to stockholders were declared delinquent giving them sixty (60) days to settle the unpaid
subscription in full, three (3) shareholders with aggregate shareholdings of 674,318 shares fully paid their
subscription payable to AHI. This resulted in the reduction of the number of delinquent shares from 5,062,342
shares in 2017 to 4,949,956 shares in 2019.
2 Nature of ownership is indicated as (R) for record owner and (B) for beneficial owners.
3The voting of the shares owned by MPHHI will be directed by such person as may be duly authorized by the Board
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December 2003
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10th Floor MGO Building,

Legazpi cor. Dela Rosa
Streets, Legazpi Village,
Makati City
Stockholder
Common AHI Hospital Holdings AHHC Filipino 532,582,396 27.50
Corporation (formerly, (R & B)
Bumrungrad
International Philippines
Inc.) (“AHHC”) 4
10th Floor Net One
Center, 26th cor. 3rd
Avenues, Bonifacio
Global City, Taguig
Stockholder
Common Metro Pacific MPIC Filipino 109,278,743 5.64
Investments (R&B)
Corporation(“MPIC”) 5
10th Floor MGO Building,
Legazpi cor. Dela Rosa
Streets, Legazpi Village,
Makati City
Stockholder
Except as stated above, the Board and Management of AHI have no knowledge of any
person who, as of the Record Date, was directly or indirectly the beneficial owner of more than
5% of AHI’s outstanding shares of common stock or who has voting power or investment
power with respect to shares comprising more than 5% of AHI’s outstanding common stock.
(d) (ii) Security Ownership of Management, as of July 31, 2020:
Title of Name of Beneficial Amount and Nature of Citizenship Percent of

Class Owner Beneficial Ownership Class
of Directors of MPHHI and as may be named in the proxy letter that will be submitted by MPHHI to AHI’s Corporate
Secretary in accordance with AHI’s Amended By-laws. MetroPac Apollo Holding, Inc. owns 56.25% of the
outstanding capital stock of MPHHI. MPHHI’s proxy is Mr. Augusto P. Palisoc Jr., or in his absence, the Chairman
of the Annual Meeting.
4The voting of the shares owned by AHHC will be directed by such person as may be duly authorized by the Board
of Directors of AHHC and as may be named in the proxy letter that will be submitted by AHHC to AHI’s Corporate
Secretary in accordance with AHI’s Amended By-Laws. On July 1, 2014 MPIC assigned all of its rights, titles and
interests in all of its shareholdings in AHHC constituting 100% of the outstanding capital stock of AHHC to its
subsidiary, Metro Pacific Hospital Holdings, Inc. (formerly Neptune Stroika Holdings, Inc.) (“MPHHI”). Pending the
transfer of legal title over the shares in AHHC to MPHHI, MPIC assigned all voting rights over its shares in AHHC
to MPHHI. AHHC’s proxy is Mr. Augusto P. Palisoc Jr., or in his absence, the Chairman of the Annual Meeting.
5 On May 20, 2014, MPIC executed a Deed of Assignment transferring all of its beneficially and directly-owned
shares of stock in AHI to MPHHI. The application for issuance of the Certificate Authorizing Registration (“CAR”)
is currently being processed with the Bureau of Internal Revenue. MPIC has also executed an irrevocable proxy in
favor of MPHHI authorizing MPHHI to exercise and enjoy all rights arising from the AHI shares sold pending the
transfer of legal title over the shares to MPHHI.MPHHI’s proxy with respect to these shares of stock is Mr. Augusto
P. Palisoc Jr., or in his absence, the Chairman of the Annual Meeting.
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Andres M. Licaros Jr.

President & CEO/
Common Director 1 -- Direct Filipino Nil
Manuel V. Pangilinan
Jose Ma. K. Lim
David J. Nicol
Common Director 1 -- Direct Australian Nil
Augusto P. Palisoc Jr.
Common Chairman 1 -- Direct Filipino Nil
Fernandino Jose A.
Fontanilla --Direct & 0.02%
Common Independent Director 442,478 --Indirect Filipino
Carmelita I.
Quebengco
Common Independent Director 1 -- Direct Filipino Nil
Ricardo V.
Buencamino
Jose Noel C. de la Paz
Sol Z. Alvarez
Common Director 295,754 -- Direct Filipino 0.02%
Retired Chief Justice
Artemio Panganiban
Common Independent Director 1 -- Direct Filipino Nil
TOTAL 738,241 0.04%
(d) (iii) Voting Trust Holders of 5% or more
Under the Voting Agreement dated February 18, 2005, MPHHI, Dr. Jorge M. Garcia
and AHHC agreed to vote together as one block with respect to various stockholder matters,
including the renewal of the Management and Consultancy Services Agreement between AHI
and AHHC dated December 8, 1997, as amended on February 17, 2005 (“Management
Agreement”), election of Directors of AHI and the amendment of AHI’s Articles of
Incorporation. For this purpose, each of MPHHI, Dr. Jorge M. Garcia and AHHC have agreed
to execute irrevocable proxies. The Voting Agreement refers to the outstanding common
shares of stock in AHI of each of MPHHI, Dr. Jorge M. Garcia and AHHI as disclosed in Part
B (4) d (i) above, which also discloses the addresses of the said parties. The Voting Agreement
is effective until terminated by mutual agreement of the parties or upon expiration of the
Management Agreement (as the same may be renewed from time to time), whichever is
earlier.
(e) Change in Control
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There is no arrangement which may result in a change of control of AHI since the last
fiscal year.
5. Directors and Executive Officers
(a) (i) Members of the Board shall serve for a term of one year and until their
successors shall have been duly elected and qualified. The following are the current Directors
and executive officers of AHI, including the respective business experience during the past
five (5) years of each Director and executive officer:
Date of First Election to

Name of Director Age Citizenship
the Board
Fernandino, Jose A.
Fontanilla 55
(Independent Filipino July 25, 2006
Director)
Manuel V. Pangilinan 73 Filipino December 6, 2011
Jose Ma. K. Lim 67 Filipino December 6, 2011
David J. Nicol 60 Australian December 6, 2011
Augusto P. Palisoc Jr. 62 Filipino December 6, 2011
Andres M. Licaros Jr. 61 Filipino December 6, 2011
Carmelita I. Quebengco 72
(Independent Director) Filipino March 21, 2012
Ricardo V. Buencamino 75 Filipino February 27, 2013
Jose Noel C. de la Paz 63 Filipino April 30, 2015
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Sol Z. Alvarez 87 Filipino August 7, 2015
Retired Chief Justice

Artemio Panganiban 83 Filipino March 3, 2017
(Independent Director)
FERNANDINO JOSE A. FONTANILLA is a medical doctor by profession and one of

Asian Hospital’s credentialed Ophthalmologist since 2002. Currently, he is the Dean of the
San Beda University - College of Medicine and is Head of the Uveitis Section of the
Department of Ophthalmology at The Medical City. Dr. Fontanilla is the Treasurer and
Member of the Board of Trustees of the Association of Philippine Medical Colleges. In
September of 2018, he was appointed as a member of the Continuing Professional
Development (CPD) Council for Medicine of the Professional Regulations Commission. He
is a founding partner of the Eye, Gland & Glucose Specialists, is Vice President of Fabel
Corporation and holds a directorship position in Lubel Corporation.
Dr. Fontanilla received his medical degree from the University of Philippines College
of Medicine and did his residency training in Ophthalmology at the Philippine General Hospital.
He pursued further training in Ophthalmology by doing a Clinical Fellowship in Uveitis and
Ocular Immunology at the University of Illinois - Deicke Eye Center in Chicago, U.S.A. Dr.
Fontanilla holds a Master’s degree in Business Administration and Health (Gold Medal
Awardee) from the Ateneo Graduate School Business.
MANUEL V. PANGILINAN assumed chairmanship of the Board of Metro Pacific

Investments Corporation in March 2006 and remain as such up to the present. Born in the
Philippines in July 1946, Mr. Pangilinan graduated cum laude in 1966 from the Ateneo de
Manila University, the Philippines, with a Bachelor of Arts degree in Economics. He received
his MBA degree in 1968 from the Wharton School of Finance and Commerce at the University
of Pennsylvania, where he was a Procter & Gamble Fellow. After graduating from Wharton,
he worked in Manila for Philippine Investment Management Consultants Inc. (the PHINMA
Group) and in Hong Kong with Bancom International Limited and American Express Bank,
and thereafter with First Pacific Company Limited. Mr. Pangilinan founded First Pacific in 1981
and serves as its Managing Director and Chief Executive Officer. Within the First Pacific
Group, he holds the position of President Commissioner of P.T. Indofood Sukses Makmur, the
largest food company in Indonesia.
He is currently the Chairman of the Board of Trustees of the San Beda College. In
August 2016, the Samahang Basketbol ng Pilipinas (SBP) – the National Sport Association
for basketball requested Mr. Pangilinan to be its Chairman Emeritus after serving as
President since February 2007. Effective January 2009, MVP assumed the Chairman of the
Amateur Boxing Association of the Philippines (ABAP), a governing body of amateur boxers
in the country. In October 2009, Mr. Pangilinan was appointed as Chairman of the Philippine
Disaster Resiliency Foundation, Incorporated (PDRF), a non-profit foundation established to
formulate and implement a reconstruction strategy to rehabilitate areas devastated by floods
and other calamities. Mr. Pangilinan is Chairman of Philippine Business for Social Progress
(PBSP), the largest private sector social action organization made up of the country’s largest
corporations. In June 2012, he was appointed as Co-Chairman of the US-Philippines
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Business Society (USPS), a non-profit society which seeks to broaden the relationship
between the United States and the Philippines in the areas of trade, investment, education,
foreign and security policies and culture.
JOSE MA. K. LIM is the incumbent President and CEO of Metro Pacific Investments
Corporation. Born in the Philippines in April 1952, Mr. Lim graduated from the Ateneo de
Manila University, with a Bachelor of Arts degree in Philosophy. He received his MBA degree
in 1978 from the Asian Institute of Management.
Mr. Lim worked as a senior officer for various local and foreign banking institutions
from 1988 to 1995. He was Director for Investment Banking of the First National Bank of
Boston from 1994 to 1995, and prior to that, Vice President of Equitable Banking Corporation.
In 1995, Mr. Lim joined Fort Bonifacio Development Corporation (FBDC) as Treasury Vice
President and eventually was appointed Chief Finance Officer in 2000. In 2001, Mr. Lim
assumed the position of Group Vice President and Chief Finance Officer of FBDC’s parent
company, Metro Pacific Corporation (MPC) on a concurrent basis. He was then elected
President and CEO of MPC in June 2003. In 2006, MPC was reorganized into Metro Pacific
Investments Corporation (MPIC), where he continues to serve as President and CEO.
Mr. Lim has received various awards relating to Corporate Governance and Investor
Relations and most recently, he was accorded the Triple A award from Asian Institute of
Management for his excellent performance in his field of profession. He is a founding member
of the Shareholders Association of the Philippines and an active member in various business
organizations. He was awarded by the Corporate Governance Asia as the Best CEO for
Investors Relations from 2012-2015 and 2018 to 2019.
DAVID J. NICOL is the Executive Vice President and Chief Financial Officer of MPIC
and is responsible for leading and developing MPIC’s overall financial strategy, its systems
and processes, and treasury function. Mr. Nicol’s expertise comes from a consistent record
of building shareholder value through operational improvement, restructuring, mergers and
acquisitions and entering new markets in a wide range of businesses in listed and PE backed
environments. His 4 -year appointment as Chief Financial Officer and subsequent 4 years as
Group Chief Executive Officer of Berli Jucker Plc., an affiliate of First Pacific Company Ltd.,
drove shareholder value growth and steered the company through the South-East Asian
Financial crisis. Prior to joining MPIC, Mr. Nicol was Director and CFO of Reconomy
(Holdings) Ltd. where he led the acquisition of nine businesses in UK’s waste management
and recycling sector. Prior to this, he held positions as President and CEO of Sirva, Inc. for
Europe and Asia Pacific and Interim CEO of Pinnacle Regeneration Group, a leading privately
owned social housing infrastructure manager and refurbishment provider.
AUGUSTO P. PALISOC JR. is the Chairman of the Board of Directors of the

Corporation. He has been with the First Pacific group of companies for over 35 years. He is
currently an Executive Director of MPIC and is the President & Chief Executive Officer and
Director of Metro Pacific Hospital Holdings Inc., which is the group’s holding company for all
hospital and healthcare investments. Prior to joining MPIC, he was the Executive Vice
President of Berli Jucker Public Company Limited in Thailand from 1998 to 2001. Mr. Palisoc
served as President and CEO of Steniel Manufacturing Corporation in the Philippines from
1997 to 1998. He has held various positions within the First Pacific group as Group Vice
President for Corporate Development of First Pacific Company Limited in Hong Kong, and
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Group Managing Director of FP Marketing (Malaysia) Sdn. Bhd. in Malaysia. Before he joined
First Pacific in 1983, he was Vice President of Monte Real Investors, Inc. in the Philippines.
Mr. Palisoc earned his Bachelor of Arts Degree, Major in Economics (with Honors) from De
La Salle University, and his Master’s in Business Management (MBM) Degree from the Asian
Institute of Management. Mr. Palisoc was born in January 1958.
ANDRES M. LICAROS JR. is a licensed Civil Engineer with three decades of

management experience across various industries namely: Pharmaceutical, Commercial
Feeds and Livestock, Confectionery, and Healthcare. He has a massive leadership
experience in two tertiary hospitals acquired and managed by the Metro Pacific Investments
Corporation (MPIC) Hospital Group- Davao Doctors Hospital from 2008 to 2011, and Asian
Hospital and Medical Center from 2012 to present - as the President and Chief Executive
Officer.
He has implemented a management philosophy in Asian Hospital and Medical Center

that enabled the workplace to allow each staff and employee to be able to contribute their very
best. He consistently leads by example while building a strong culture of compassion,
excellence, and accountability that requires all leader-managers to diligently mentor their
teams; deliberately preparing for a continuous succession of well-trained and able Asian
leaders.
With the firm commitment and passion in transforming the healthcare milieu, he
established flagship services paving the way in the creation of Integrated Practice Units,
primarily the creation of the Asian Cancer Institute in 2015 - a one-stop, integrated, multi-
disciplinary Cancer prevention and management facility; and the acquisition of the Gold Seal
of Approval, the most prestigious gold standard in the global healthcare community from the
Joint Commission International, in 2013 and 2016. These are his visions of providing value
healthcare with excellent outcomes coming from an unforgettable experience of care.
In 2018, three other institutes were launched namely: Asian Brain Institute, Asian
Cardiovascular Institute, and the Senior Wellness Institute.
In his past professional experience, he also shared his expertise and passion in
healthcare as the Director for Marketing and Sales in The Medical City from 2007 to 2008 and
as the Vice President for Marketing Division in St. Luke’s Medical Center-Quezon City from
2001 to 2005.
CARMELITA I. QUEBENGCO was selected as an independent director of AHI on

March 21, 2012. An educator by profession, Dr. Quebengco obtained her bachelor and
masteral degrees from the University of the Philippines, her doctorate degree from De La Salle
University, and was conferred an honorary doctorate in educational leadership by St. Mary's
University in Minnesota. She holds the distinction of having been the only lay President of De
La Salle University, where she is currently Chancellor Emeritus and University Fellow. She is
also a member of the Board of Trustees of several educational institutions, including the
Philippine Accrediting Association of Schools, Colleges and Universities, La Salle College in
Antipolo, University of San Carlos in Cebu City, Lourdes College in Cagayan de Oro, Marist
School of Marikina, St. Paul University in Manila, St. Michael College in Iligan and Miriam
College, University of St. La Salle in Bacolod, Friendly Care Foundation, University of the
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Immaculate Conception in Davao, De La Salle University – Yuchengco Center, De La Salle

University Museum, Philippine Women’s University and Arnold Jannsen Foundation. She is
also a Director at Large of the International Association of Lasalian Universities. She was
conferred as second honorary doctorate in Educational Leadership and Management by St.
Mary’s College California.
RICARDO V. BUENCAMINO was the President and Chief Executive Officer of Clark
Electric Distribution Corporation from January 28, 2015 to December 31, 2018. Mr.
Buencamino served as Senior Executive Vice President and Head of Networks, Manila
Electric Company’s biggest technical organization before his retirement in 2014. He
graduated from Mapua Institute of Technology with a Bachelor of Science degree in Electrical
Engineering and a licensed Professional Electrical Engineer. He holds a Master’s Degree in
Management from Asian Institute of Management and completed the General Management
of Electric Utilities Program at the International Management Development Center in Austin,
Texas, USA. He is also IIEE’s (Institute of Integrated Electrical Engineers of the Philippines,
Inc.) 2005 Most Outstanding Electrical Engineer – Corporate Management Category.
Mr. Buencamino is formerly a member of the board of directors of Meralco Industrial

Engineering Services Corporation, Meralco Energy Inc., Miescor Logistics Inc., MRail Inc. and
Clark Electric Distribution Corporation.
JOSE NOEL C. DE LA PAZ is MPHHI’s Director for Corporate Development since

2014. Prior thereto, he assumed the same position in MPIC from 2007 to 2014. He is
responsible for MPHHI’s acquisition and investment initiatives on the healthcare sector,
beginning with the identification of projects, preliminary evaluation, due diligence, investment
structuring, negotiations and execution, up to participation in management. He deal managed
ten of the eleven hospitals currently invested in by MPHHI, and is currently active as board
member for seven. Prior to his stint in MPIC/MPHHI, he has had over 20 years of investment
banking experience, arranging debt and equity financings and rendering financial advisory
services for fund raising and M & A transactions. He was the Philippine Deputy Country Head
for New York-based Bankers Trust Company that originated and lead managed global bond
offerings and bank loan syndications, and worked on advisory engagements for major project
financings in the country. He brings this Corporate Finance experience to MPHHI in setting
up bank working capital lines, and arranging bank term loan syndications and equity rights
offerings for selected hospitals.
SOL Z. ALVAREZ was elected as director of AHI on August 7, 2015. An educator by

profession, Dr. Alvarez obtained his bachelor and doctorate degree and his residency in
Internal Medicine from the University of Santo Tomas, residency in Cardiology from
Philadelphia General Hospital, residency in gastroenterology from Cook County Hospital
Chicago, Illinois and fellowship in Gastroenterology from Lahey Clinic, Boston,
Massachusetts. He served as the Chief of the Gastroenterology Section of AHI from 2000 to
2008 and the Chairman of AHI Credential Committee from 2004 to 2015. He is currently
engaged as a professor of medicine at the University of Santo Tomas Faculty of Medicine and
Surgery since 1984 to present.
RETIRED CHIEF JUSTICE ARTEMIO V. PANGANIBAN, obtained his Associate in

Arts “With Highest Honors” and later his Bachelor of Laws with “Cum Laude” and “Most
Outstanding Student” honors. He placed sixth in the 1960 bar examinations. A well-known
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December 2003
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campus leader, he founded and headed the National Union of Students of the Philippines. He
is also the recipient of several honorary doctoral degrees.
In 1995, he was appointed Justice of the Supreme Court, and in 2005, Chief Justice of
the Philippines. Aside from being a prodigious decision writer, he also authored eleven books
while serving in the highest court of the land. His judicial philosophy is “Liberty and Prosperity
Under the Rule of Law.” He believes that the legal profession and the judiciary must not only
safeguard the liberty of the people but must also nurture their prosperity and economic well-
being. To him, justice and jobs, ethics and economics, democracy and development, nay,
liberty and prosperity must always go together; one is useless without the other. On his
retirement on 7 December 2006, his colleagues acclaimed him unanimously as the
“Renaissance Jurist of the 21st Century.”
Prior to entering public service, Chief Justice Panganiban was a prominent practicing
lawyer, law professor, business entrepreneur, civic leader and Catholic lay worker. He was
the only Filipino appointed by the late Pope John Paul II to be a member of the Vatican-based
Pontifical Council for the Laity for the 1996-2001 term. At present, he is a much sought-after
independent director and adviser of business firms, and writes a column in the Philippine Daily
Inquirer.
Name of Officer Position Age Citizenship
Augusto P. Palisoc Jr. Chairman 62 Filipino
Andres M. Licaros Jr. President and Chief 61 Filipino

Executive Officer
Robert D. Martinez Chief Finance Officer 56 Filipino
Reymundo S. Cochangco Treasurer 53 Filipino
Ricardo M. Pilares III Corporate Secretary 38 Filipino
Jane Catherine C. Rojo Assistant Corporate 35 Filipino

Secretary
Dr. Jose M. Acuin Chief Medical Officer 61 Filipino
Sharon C. Hernandez Chief Strategy 44 Filipino

Officer/Head of the
Strategic Support Group
AUGUSTO P. PALISOC JR. (See business profile above)
ANDRES M. LICAROS JR. (See business profile above)
REYMUNDO S. COCHANGCO (See business profile above)
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ROBERT D. MARTINEZ is the incumbent Chief Finance Officer of AHI. He is a

Certified Public Accountant and a Certified Financial Consultant. He graduated “Cum Laude”
in the University of the East and was a member of the Accounting Honors’ Program. Mr.
Martinez started his career at Ernst & Young and prior to joining AHI in April 2019, he has
gained a vast and relevant working experience with several multinational companies such as;
Philips, Pepsi Cola, Asea Brown Boveri, Alstom Power, Alcan Packaging, DB Schenker, DHL
and Getz Bros. (i.e., to name a few) where he honed his Financial Skills as Analyst, Auditor,
Controller and as a CFO starting with Pepsi Cola (San Fernando Plant).
RICARDO M. PILARES III is the Vice President for Legal and Compliance Officer of
Metro Pacific Investments Corporation. He graduated from the Ateneo Law School in 2006
and passed the Philippine Bar Examinations in 2007 with the second highest ranking. Before
joining Metro Pacific Investments Corporation, Mr. Pilares was an associate in ACCRA Law
Offices, and subsequently in Puno and Puno Law Offices, where he handled litigation cases
and corporate projects for various clients. He is also a member of the faculty of the Ateneo
Law School. Mr. Pilares joined the Legal Department of MPIC in 2010, providing legal services
in MPIC and its various subsidiaries and affiliates. He was appointed as AHI’s Assistant
Corporate Secretary on January 18, 2012.
JANE CATHERINE C. ROJO is the current Assistant Corporate Secretary of the

Corporation and is part of the Legal Department of Metro Pacific Investments Corporation as
Senior Legal Counsel. She graduated from the Ateneo Law School in 2012 and passed the
Philippine Bar Examinations in 2013. Before joining Metro Pacific Investments Corporation,
Ms. Rojo was an associate at Castillo Laman Tan Pantaleon and San Jose Law Offices, where
she handled litigation and labor cases as well as corporate projects for various clients.
DR. JOSE M. ACUIN is the current Chief Medical Officer of Asian Hospital and Medical
Center (AHMC) since October 2017 and a Consultant in the Department of Ear, Nose and
Throat – Head and Neck Surgery. He was the Chief Quality Officer since 2014, and the Joint
Commission International (JCI) Survey Coordinator since 2013. He is also a Professor and
Consultant in De La Salle University College of Medicine in Dasmariñas, Cavite since 1998.
Dr. Acuin obtained his Doctor of Medicine degree from the University of the Philippines from
1978 to 1982 and finished his residency training from Philippine General Hospital in 1987. He
had his M.S. Clinical Epidemiology from the University of the Philippines College of Medicine
from 1992 to 1999. He also took the Evidence-based Quality Improvement from Tohoku
University, Sendai, Japan in 2001 and had his Masters in Business Administration (Health)
from Ateneo Graduate School of Business from 2005 to 2008. He is also a fellow of the
Philippine Society of Otolaryngology – Head and Neck Surgery.
SHARON C. HERNANDEZ is currently the Chief Strategy Officer and Head of the
Strategic Support Group of Asian Hospital and Medical Center. She joined AHI in 2012 as
Human Resources Director and promoted in 2017 as Chief Strategy Officer. Ms. Hernandez
acquired her Bachelor of Arts major in Economics and Master Degree in Business
Administration at De La Salle University. She also gained her diploma for Training and
Development at College of St. Benilde - De La Salle University.
Ms. Hernandez also held the position of Vice President for HSBC and Assistant Vice
President for Corporate Training and Organizational Development in AIG, Philamlife. She has
more than 20 years relevant work experiences in leading teams achieve their corporate goals,
align strategic directions with operational tasks, manage people and organizational
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development, and partner with business units in maximizing team strengths and better
operational efficiencies. She has also a hands-on experience in designing, implementing, and
recommending human capital management interventions, specifically in the areas of personal
and employee engagement projects, organizational development activities, talent
management, recruitment and workforce augmentation programs, office administration, etc.
Have done such functions in corporate and consultancy capacities for leading local and multi-
national companies, across many industries. Technical and Executive Recruitment, Local and
(some) International Labor Laws Implementation, Philippine Based Administrative
Management, Executive and Management Development Programs, Career Development
Plans for Managers and up, Core Employee Programs / Succession Planning Programs,
University Based Learning and Organizational Programs and Basic Compensation / Benefits
Programs.
(a) (ii) Certain Relationships and Related Transactions
AHI executed a Consultancy Services Agreement with BIL effective January 1, 2008,
under the terms of which BIL will make available to AHI information, materials and other
consultancy services relating to health care service operations, including cost, budget, and
wage and salary administration, business and information systems, and supervision and
administration of ancillary medical services.
AHI executed a Services Agreement with Bumrungrad International Holdings Pte Ltd.
(BIHPL), an affiliate of BIL, effective January 1, 2008, under the terms of which BIHPL will
provide material management support, quality assurance and certain training services relating
to the hospital business.
BIL and BIHPL entered into an Assignment and Accession Agreement on December
6, 2011, wherein BIL and BIHPL transferred to MPIC all of their rights and obligations under
the Consultancy Services Agreement and Service Agreement, respectively. On July 1, 2014,
MPIC assigned all of its rights and obligations under the Consultancy Services Agreement and
Service Agreement to MPHHI.
(a) (iii) Election of Members of the Board
There will be an election of the members of the Board during the Annual Meeting. In
accordance with AHI’s Manual for Corporate Governance (the “Manual”), the Nomination
Committee has pre-screened all candidates nominated to become a member of the Board in
accordance with the following qualifications and disqualifications set forth in the Manual:
A. Qualifications:
(i) He shall be a holder of at least 1 share of stock of AHI;

(ii) He shall be at least a college graduate or have sufficient experience in
managing a hospital to substitute for such formal education;
(iii) He shall be at least 21 years old;
(iv) He shall have proven to possess integrity and probity; and adequate
competency and understanding of the business; and
(v) He shall be assiduous.
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B. Disqualifications:
(i) Any person finally convicted judicially of an offense involving moral

turpitude, such as but not limited to, graft and corruption, fraud,
embezzlement, theft, estafa, counterfeiting, misappropriation, forgery,
bribery, perjury, falsification or other fraudulent acts or transgressions;
(ii) Any person finally found by the Securities and Exchange Commission
(“SEC”), judicial courts or other administrative bodies to have willfully
violated, or willfully aided, abetted, counseled, induced or procured the
violation of, any provision of the Securities Regulation Code (the
“SRC”), the Revised Corporation Code, or any other law administered
by the SEC or Bangko Sentral ng Pilipinas (the “BSP”), or any rule,
regulation or order of the SEC or BSP;
(iii) Any person judicially declared to be insolvent;
(iv) Any person finally found guilty by a foreign court or equivalent financial
regulatory authority of acts, violations or misconduct similar to any of
the acts, violations or misconduct listed in the foregoing paragraphs;
(v) Conviction by final judgment of an offense punishable by imprisonment
for a period exceeding 6 years, or a violation of the Revised Corporation
Code committed within 5 years prior to the date of his election or
appointment;
(vi) If an independent director of the Company becomes an officer,
employee or consultant of the Company, he shall be automatically
disqualified from being an independent director;
(vii) Any person convicted by final judgment or order by competent judicial
or administrative body of any crime that:
a. Involves the purchase or sale of securities, as defined in

the Securities Regulation Code;
b. Arises out of the person’s conduct as an underwriter,
broker, dealer, investment adviser, principal, distributor,
mutual fund dealer, futures commission merchant,
commodity trading advisor, or floor broker; or
c. Arises out of his fiduciary relationship with a bank, quasi-
bank, trust company, investment house or as an
affiliated person of any of them;
d. Any person who, by reason of his misconduct, after
hearing, is permanently enjoined by final judgment or
order of the SEC or any court or administrative body of
competent jurisdiction from:
1. Acting as an underwriter, broker, dealer,

investment adviser, principal distributor, mutual
fund dealer, futures commission merchant,
commodity trading advisor, or floor broker;
2. Acting as director or officer of a bank, quasi-
bank, trust company, investment house, or
investment company;
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3. Engaging in or continuing any conduct or

practice in any of the capacities mentioned in
sub-paragraphs (a) and (b) above; or
4. Willfully violating the laws that govern securities
and banking activities.
The disqualification shall also apply if such person is

currently the subject of an order of the SEC or any court
or administrative body denying, revoking or suspending
any registration, license or permit issued to him under
the Revised Corporation Code, Securities Regulation
Code or any other law administered by the SEC or BSP,
or under any rule or regulation issued by the SEC or
BSP, or has otherwise been restrained to engage in any
activity involving securities and banking, or such person
is currently the subject of an effective order of a self-
regulatory organization suspending or expelling him
from membership, participation or association with a
member or participant of the organization.
C. Grounds for Temporary Disqualification:
(i) Refusal to fully disclose the extent of his business interests and
disclosure requirements as required under the SRC and its
Implementing Rules and Regulations. This disqualification shall be in
effect as long as his refusal persists;
(ii) Absence or non-participation for whatever reason/s for more than 50%
of all meetings, both regular and special of the Board during his
incumbency, or any 12-month period during said incumbency except if
due to illness, death in the immediate family, or serious accident. This
disqualification applies for purposes of the succeeding election;
(iii) Dismissal/termination from directorship in another corporation covered
under the Revised Manual of Corporate Governance for cause. This
disqualification shall be in effect until he has cleared himself of any
involvement in the alleged irregularity;
(iv) If the beneficial security ownership of an independent director in AHI or
in its related companies shall exceed two percent (2%) of its subscribed
capital stock. The disqualification shall be lifted if the limit is later
complied with; and
(v) Conviction that has not yet become final referred to in the grounds for
the permanent disqualification of directors.
A temporarily disqualified director shall, within sixty (60) business days

from such disqualification, take the appropriate action to remedy or
correct the disqualification. If he fails or refuses to do so for unjustified
reasons, the disqualification shall become permanent.
The following are the members of the Nomination Committee:
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1. Jose Noel C. de la Paz

2. Dra. Carmelita I. Quebengco (independent director)
3. Mr. Manuel V. Pangilinan
The following are the nominees for directors of AHI for 2020-2021:
Regular Directors:
1. Manuel V. Pangilinan
2. Andres M. Licaros Jr.
3. Jose Noel C. de la Paz
4. Augusto P. Palisoc Jr.
5. Ricardo V. Buencamino
6. Sol Z. Alvarez
7. Reymundo S. Cochangco
8. Celso Bernard G. Lopez
Independent Directors:
1. Fernandino Jose A. Fontanilla
2. Carmelita I. Quebengco
3. Retired Chief Justice Artemio V. Panganiban
The nominees for Independent Directors possess and have continuously possessed
the qualifications and none of the disqualifications of an Independent Director from the time
they were first elected as such. Fernando Jose A. Fontanilla and Carmelita I. Quebengco have
served for a total of eight (8) consecutive terms since 2012 and are due to observe the cooling-
off period of two (2) years. The Securities and Exchange Commission has been notified of
their nomination for re-election in a letter dated 02 March 2020 attached herewith as Schedule
I.
Fernandino Jose A. Fontanilla, Carmelita I. Quebengco and Retired Chief Justice

Artemio V. Panganiban were nominated by Dr. Edgard Simon. Dr. Edgard Simon is a
stockholder of the Corporation. Dr. Edgard Simon has no relationship with Fernandino Jose
A. Fontanilla, Carmelita I. Quebengco and Retired Chief Justice Artemio V. Panganiban.
A brief description of the background and the business experience of the nominees for
directors is provided for in Part B (5) (a) (i) above.
In the election of Independent Directors, the following guidelines set forth in Section
38 of the SRC, SRC Rule 38, SEC Memorandum Circular No. 02-02 dated April 5, 2002 and
SEC Memorandum Circular No. 16-02 dated November 28, 2002 must be considered:
A. An “Independent Director” means a person who, apart from his fees and
shareholdings, is independent of management and free from any business or
other relationship which could, or could reasonably be perceived to, materially
interfere with his exercise of independent judgment in carrying out his
responsibilities as a director and includes, among others, any person who:
(i) Is not a director or officer or substantial stockholder of AHI or of its

related companies or any of its substantial stockholders (other than as
an independent director of any of the foregoing);
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(ii) Does not own more than 2% of the shares in AHI and/or its related
companies or its substantial stockholders;
(iii) Is not related to any director, officer or substantial stockholder of AHI,
any of its related companies or any of its substantial stockholders. For
this purpose, relatives include spouse, parent, child, brother, sister, and
the spouse of such child, brother or sister;
(iv) Is not acting as a nominee or representative of any director or
substantial stockholder of AHI, and/or any of its related companies
and/or any of its substantial stockholders pursuant to a Deed of Trust
or under any contract or arrangement;
(v) Has not been employed in any executive capacity by AHI, any of its
related companies and/or by any of its substantial stockholders within
the last 5 years;
(vi) Is not retained, either personally or through his firm or any similar entity
as professional adviser by AHI, any of its related companies or any of
its substantial stockholders within the last 5 years; or
(vii)Has not engaged and does not engage in any transaction with AHI
and/or with any of its related companies and/or with any of its
substantial stockholders, whether by himself and/or with other persons
and/or through a firm of which he is a partner and/or a company of which
he is a director or substantial stockholder, other than transactions which
are conducted at arm’s length and are immaterial.
No person convicted by final judgment of an offense punishable by

imprisonment for a period exceeding 6 years, or a violation of the SRC
committed within 5 years prior to the date of his election, shall qualify as an
Independent Director. This is without prejudice to other disqualifications under
AHI’s Revised Manual on Corporate Governance.
B. When used in relation to AHI:

(i) Related company means another company which is: (a) its holding
company, (b) its subsidiary, or (c) a subsidiary of its holding company;
and
(ii) Substantial stockholder means any person who is directly or indirectly
the beneficial owner of more than 10% of any class of its equity security.
C. An Independent Director shall have the following qualifications:

(i) He shall have at least 1 share of stock of AHI;
(ii) He shall be at least a college graduate or he shall have been engaged
or exposed to the business of AHI for at least 5 years;
(iii) He shall possess integrity/probity; and
(iv) He shall be assiduous.
D. An independent director shall likewise be disqualified during his tenure

under the following instances or causes:
(i) Any person who has been finally convicted by a competent judicial or
administrative body of the following: (a) any crime involving the
purchase or sale of securities, e.g., proprietary or non-proprietary
membership certificate, commodity futures contract, or interest in a
common trust fund, pre-need plan, pension plan or life plan; (b) any
crime arising out of the person's conduct as an underwriter, broker,
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dealer, investment company, investment adviser, principal distributor,

mutual fund dealer, futures commission merchant, commodity trading
advisor, floor broker; and (c) any crime arising out of his relationship
with a bank, quasi-bank, trust company, investment house or as an
affiliated person of any of them;
(ii) Any person who, by reason of any misconduct, after hearing or trial, is
permanently or temporarily enjoined by order, judgment or decree of
the SEC or any court or other administrative body of competent
jurisdiction from: (a) acting as an underwriter, broker, dealer,
investment adviser, principal distributor, mutual fund dealer; futures
commission merchant; commodity trading advisor, or a floor broker; (b)
acting as a director or officer of a bank, quasi-bank, trust company,
investment house, investment company or an affiliated person of any of
them; (c) engaging in or continuing any conduct or practice in any of the
capacities mentioned in sub-paragraphs (a) and (b) above in
connection with any such activity or willfully violating laws governing
securities, and banking activities. Such disqualification shall also apply
when such person is currently subject of an effective order of the SEC
or any court or other administrative body refusing, revoking or
suspending any registration, license or permit issued under the
Corporation Code, SRC, or any other law administered by the SEC or
BSP, or under any rule or regulation promulgated by the SEC or BSP,
or otherwise restrained from engaging in any activity involving securities
and banking. Such person is also disqualified when he is currently
subject of an effective order of a self-regulatory organization
suspending or expelling him from membership or participation or from
associating with a member or participant of the organization;
(iii) Any person finally convicted judicially or administratively of an offense
involving moral turpitude, such as but not limited to, graft and corruption,
fraud, embezzlement, theft, estafa, counterfeiting, misappropriation,
forgery, bribery, perjury, falsification or other fraudulent act or
transgressions;
(iv) Any person finally found by the SEC or a court or other administrative
body to have willfully violated, or willfully aided, abetted, counseled,
induced or procured the violation of any provision of the SRC, the
Corporation Code, or any other law administered by the SEC or BSP,
or any rule, regulation or order of the SEC or BSP;
(v) Any person judicially declared to be insolvent;
(vi) Any person finally found guilty by a foreign court or equivalent financial
regulatory authority of acts, violations or misconduct similar to any of
the acts, violations or misconduct listed in paragraphs (i) to (v) hereof;
(vii) Any affiliated person who is ineligible, by reason of paragraphs (i) to (v)
hereof to serve or act in the capacities listed in those paragraphs;
(viii) Conviction by final judgment of an offense punishable by imprisonment
for a period exceeding 6 years, or a violation of the Corporation Code,
committed within 5 years prior to the date of his election or appointment;
(ix) He becomes an officer, employee or consultant of AHI where he is such
member of the board of directors/trustees, or becomes any of the
persons enumerated in item (i) to (viii) hereof;
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(x) His beneficial security ownership exceeds 2% of the outstanding capital

stock of AHI where he is such director;
(xi) Fails, without any justifiable cause, to attend at least 50% of the total
number of Board meetings during his incumbency unless such
absences are due to grave illness or death of an immediate family; and
(xii) Such other disqualifications which AHI’s Manual provides.
Only the nominees for Directors and Independent Directors whose names appear in
this Information Statement shall be eligible for election as Independent Director. No further
nomination shall be entertained or allowed on the floor during the actual Annual Meeting.
The Chairman of the Annual Meeting shall inform all stockholders in attendance of the
mandatory requirement of electing at least two (2) Independent Directors. He shall ensure that
at least two (2) Independent Directors are elected during the Annual Meeting. Specific slots
for Independent Directors shall not be filled by a nominee who is not qualified to sit as an
independent director of the Company. In case of failure of election for Independent Directors,
the Chairman of the Annual Meeting shall call a separate election during the same meeting to
fill up the vacancy.
The conduct of the election of Directors, including the Independent Directors, shall be
made in accordance with AHI’s Amended By-Laws.
(a) (iv) Other Significant Employees
There are no other significant employees of AHI.
(a) (v) Family Relationship
There are no family relationships among the employees, officers and directors of AHI.
Metro Pacific Hospital Holdings, Inc. through its President and CEO, Mr. Augusto P. Palisoc
Jr. and Dr. Edgard Simon nominated the regular directors and independent directors,
respectively. Mr. Augusto P. Palisoc Jr. and Dr. Edgard Simon do not have any family
relationships among the any of the directors.
(a) (vi) Involvement in Certain Legal Proceedings
The Company is not aware of any pending case that may materially affect the ability
of the nominees to adequately and ably perform their duties as directors of the Company, once
elected.
6. Compensation of Directors and Executive Officers
(a) (i) Summary Compensation Table
Except for executive officers included under the compensation table below, all other
directors do not receive salaries.
Below is the summary of the annual compensation of the executive officers of AHI:
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SUMMARY COMPENSATION TABLE

Annual Compensation
Year Salary (in Bonus (in Other Annual
Php) Php) Compensation
(in Php)
Andres M. Licaros Jr., Chief Executive Officer 2016 21,149,048 8,415,725 4,342,750
Grace M. Aba, Chief Financial Officer (resigned)
Carlito B. Soliman, Chief Financial Officer
Jose Acuin, Chief Medical Officer
Joven Jeremius Tanchuco, Chief Medical Officer
(resigned)
Manuel E. Villegas, Jr., Chief Medical Officer
(resigned)
Sharon Hernandez, Chief Strategy Officer and
Head of the Strategic Support Group
All other officers 55,344,942 16,098,894 5,800,772

Manuel E. Villegas, Jr., Chief Medical Officer
(resigned)
Jose Acuin, Chief Quality Officer


Carlito B. Soliman, Chief Finance Officer (resigned)
Robert D. Martinez, Chief Finance Officer

Projected 2020 23,047,800 8,747,785 2,941,703
Andres M. Licaros Jr., Chief Executive Officer
Robert D. Martinez, Chief Finance Officer
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(a) (ii) Compensation of Directors

The Board approved the grant of per diem in the amount of Php 10,000 to each
independent director of AHI for every Board and Board committee meeting attended by such
independent director, effective March 18, 2011.
(a) (iii) Employment Contracts and Termination of Employment and Change in Control
Arrangements
As of December 31, 2019, there are no employment contract or compensatory plan or
arrangement between AHI and any of its executive officers except as stated above under the
Summary Compensation Table (Annual Compensation).
(a) (iv) Warrants and Options Outstanding

There are no warrants and/or options outstanding.
7. Independent Public Accountants

(a) SyCip Gorres Velayo & Co. (SGV) is the current independent auditor of AHI.
SGV has been the independent auditor of AHI since 1998. The partner-in-charge of the audit
for the past fiscal years, including the year ended 2003, was Mr. Gemilo San Pedro. The
partner-in-charge of the audit for the years ended 2004 until 2008 was Mr. Aldrin Cerrado. The
signing partner of SGV is Ms. Aileen Saringan from 2014 to 2017 and Ms. Julie Christine
Mateo for 2009 to 2013 and for 2018 to 2019.
AHI has the same independent public auditor, but has always complied with the
provisions on long association of personnel (including partner rotation) with an audit client as
prescribed in the Code of Ethics for Professional Accountants in the Philippines as adopted
by the BOA and PRC and such other standards as may be adopted by the Commission.
There have been no disagreements between SGV and AHI on any matter of
accounting principle or policy, or regarding AHI’s financial statements or disclosures.
(b) External Audit Fees
(i) Audit and Audit-Related Fees
SGV billed AHI the amount of Php 1.2 Million and Php 1.6 Million for 2019 and 2018,
respectively as fees for the examination of the financial statements of AHI and related out-of-
pocket expenses.
(ii) Tax Fees and Other Fees

The company engaged the tax services of SGV in 2011 to secure a BIR ruling to
change the estimated useful lives of its assets. There are no other tax engagements done by
SGV for 2019.
(c) As indicated in 7 (a) above, SGV has complied with the requirements on long
association of personnel (including partner rotation) with an audit client as prescribed in the
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Code of Ethics for Professional Accountants in the Philippines as adopted by the BOA and
PRC and such other standards as may be adopted by the Commission, as mandated by Part
1(3)(B)(ix) of the Revised SRC Rule 68.
(d) On February 18, 2020, the Board shall recommend the appointment of SGV as
the external auditor of AHI for 2020, provided that a prior favorable recommendation from the
Audit Committee is obtained. The members of the Audit Committee are Dr. Fernandino Jose
A. Fontanilla (independent director and chairman), Ricardo V. Buencamino and David J. Nicol.
AHI’s Treasurer, Mr. Reymundo S. Cochangco, was also appointed as a non-voting member
of the Audit Committee.
(e) Representatives of the current independent auditor of AHI will be present
during the 2020 AGM and will have the opportunity to make a statement if they desire to do
so and are expected to be available to respond to appropriate questions.
8. Legal Proceedings
There are no material pending legal proceedings that involve AHI or any property of
AHI.
C. ISSUANCE AND EXCHANGE OF SECURITIES
9. Financial and Other Information
The Corporation’s audited financial statements for the year 2019 and the interim
financial statements for the quarter ending June 30, 2020 are attached hereto as Annex “B”.
and is hereby incorporated by reference.
D. OTHER MATTERS
11. Action with Respect to Reports
The minutes of the last annual meeting of the stockholders held on April 30, 2019 will
be submitted to the stockholders for approval. A copy of the minutes is attached hereto as
Annex “C” and is incorporated by reference.
12. Other Proposed Action
The following are the other matters to be taken up during the Annual Meeting:
a. Approval of the minutes of the annual stockholders’ meeting held on April 30,
2019;
b. Presentation of the Report of the Chief Executive Officer;

c. Presentation of the Audited Financial Statements of AHI for the year ended
2019;
d. Ratification of corporate acts since April 30, 2019;
e. Election of Directors; and
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f. Appointment of External Auditor for 2020.
The following acts of the Board and all the acts and transactions of the officers of AHI, among
others, since April 30, 2019, as reflected in the books, records, and financial statements of
AHI shall be ratified by the stockholders:
1) Opening of bank accounts and changes in bank signatories;

2) Renewal of credit facilities;
3) Approval of recommendation to re-appoint SGV & Co. as external auditor;
4) Appointment of court representatives in civil cases;
5) Appointment of authorized representatives for lease agreements;
6) Approval of Audited Financial Statements for the year 2018;
7) Approval of the schedule of the 2019 Annual Stockholders’ Meeting.
13. Voting Procedures
a) Each stockholder shall be entitled to one (1) vote for each share.
b) The items in the agenda require the affirmative vote of the stockholders entitled to
vote representing a majority of the outstanding capital stock of the Company.
c) In the election of directors, each stockholder entitled to vote may cumulate and
distribute his votes in accordance with the Corporation Code of the Philippines.
d) In order to ensure the safety and welfare of our directors, management and
stockholders and taking into account the recent regulations issued in light of the
COVID-19 situation, the Company will dispense with the physical attendance of
stockholders at the 2020 annual meeting of the stockholders and will allow
attendance only by remote communication and by voting in absentia, or voting
through the Chairman of the meeting as proxy 6.
e) Stockholders must notify the Company of their intention to participate in the meeting
by remote communication to be included in the determination of quorum.
f) A stockholder may vote electronically through the Company’s Electronic Voting in

Absentia System at ahiagm.asianhospital.com subject to validation procedures. A
stockholder voting electronically in absentia shall be deemed present for purposes of
quorum.
g) Proxies shall be in writing, signed and filed by the stockholder and shall be received
by the Office of the Corporate Secretary on or before September 14, 2020.
6
On July 16, 2020, the Company’s Board of Directors issued a resolution allowing stockholders who cannot physically
attend to participate in the stockholders’ meeting through remote communications or other alternative modes
communication, and for this purpose, such remote or in absentia participation shall be considered in the determination of
quorum.
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h) All votes received shall be tabulated by the Office of the Corporate Secretary with the
assistance of the Company’s stock transfer agent. The Corporate Secretary shall
report the results of voting during the meeting.
i) The detailed instructions for participation through remote communication are set forth
in Annex “A” – Requirements and Procedures for Electronic Voting in Absentia.
In all items for approval, except in the election of directors, each share of stock entitles its
registered owner to one vote.
For the purpose of electing directors, a stockholder may vote such number of his shares for
as many persons as there are directors to be elected or he may cumulate said shares and
give one candidate as many votes as the number of directors to be elected multiplied by the
number of his shares shall equal, or he may distribute them in the same principle among as
many candidates as he shall see fit.
The Corporate Secretary will be responsible for counting votes based on the number of shares
entitled to vote owned by the stockholders who are participating in the meeting by remote
communication and are voting in absentia or represented by proxies.
Method of counting votes
The Corporate Secretary will be responsible for counting votes based on the number of shares
entitled to vote owned by the stockholders who are participating in the meeting by remote
communication and are voting in absentia or represented by proxies at the Annual Meeting of
the stockholders.
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PART II.
SIGNATURE PAGE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this report is true, complete and correct. This report is signed in the City
of Makati on 03 September 2020.
By:

Corporate Secretary
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MANAGEMENT REPORT
General Nature and Scope of Business
Business Development
The Issuer, Asian Hospital, Inc. (“AHI” or the “Company”) was incorporated on December 12,
1994 with Securities and Exchange Commission (“SEC”) Registration No. ASO94-00011249.
AHI operates and manages the Asian Hospital and Medical Center (the “Hospital”), a
tertiary hospital located at 2205 Civic Drive, Filinvest Corporate City in Alabang, Muntinlupa
City. The Hospital’s operations started on March 15, 2002.
AHI has not filed for bankruptcy, receivership or other similar proceedings.
Business of Issuer
Under its Articles of Incorporation, the primary purpose of AHI is to establish, maintain,
operate, own and manage hospitals, medical and other related healthcare facilities and
businesses including pharmacies, diagnostics centers, ambulatory clinics, medical
laboratories, scientific research and educational institutions and other allied undertakings and
services which shall provide professional, medical, surgical, nursing, therapeutic, paramedic
or other care.
The principal products or services offered by the Hospital are divided into Routine
Services and Ancillary Services. The Routine Services include room and board, general
nursing units, perioperative services, critical care and emergency services. Ancillary Services
include pharmacy, pathology and clinical laboratories, radiology, radiotherapy and other
oncology care services, pulmonary and respiratory therapy, rehab medicine, heart station,
neuroscience, cardiac catheterization laboratory, audiology and dermatology. The contribution
of these products and services to revenues is discussed in the Management Discussion and
Analysis and Plan of Operations under Income Statement.
Competition
The 296-bed Hospital is one of the major medical care facilities of its standard in the
country. The immediate catchment area of the Hospital includes the cities of Las Piñas,
Muntinlupa and Parañaque and the secondary catchment area of the Hospital is the fast-
growing Cavite-Laguna-Batangas area (the Calabarzon).
The 2015 census recorded Philippine population at 100.98 million. Among the
country’s 18 regions, Calabarzon (Region 4-A) had the largest population with 14.41 million,
followed by the National Capital Region (NCR) with 12.88 million and Central Luzon (Region
3) with 11.22 million.
Of the municipalities in Metro Manila, the areas with the fastest growing populations
are found in the immediate South -Muntinlupa City and Region IV (the provinces to the South
of Metro Manila). Muntinlupa is considered the “gateway” to the southern regions. The
SEC Form 17-IS

December 2003
27
continued positive developments in the Calabarzon, with the development of new residential
and industrial communities, augur well for the Hospital. The members of these communities
have access to quality healthcare facilities without having to travel to Makati.
The primary competitors of AHI are Makati Medical Center in Makati City, St. Luke’s
Medical Center in Taguig and The Medical City in Pasig City, all of them tertiary hospitals.
Makati Medical Center is a tertiary hospital that provides medical and surgical facilities
which started its operations in 1969. St. Luke's Medical Center-Global City opened in late
2009. It has a 14-storey, more than 600-bed nursing tower that houses its services. Its clinics
are located at the 11-storey Medical Arts Building. The Medical City (TMC), on the other hand,
is a tertiary care hospital with over fifty years’ experience in hospital operation and
administration.
BALANCE SHEET
Comparing June 30, 2020 and December 31, 2019
The total assets as of June 2020 increased to Php5.18 billion from December 2019
level of Php5.16 billion. Total liabilities ended at Php697.12 million, from last year’s
balance of Php743.47 million, while shareholders’ equity increased to Php4.48 billion from
Php4.42 billion in 2019.
Total current assets increased to Php957.62 million from Php854.10 million in

December 2019. Cash and cash equivalents increased to Php487.21 million from
Php385.90 million in 2019. Accounts receivables decreased to Php239.89 million as
against Php273.48 million in December 2019. The level of inventory of medicines and
medical supplies went up to Php204.98 million from the Php167.81 million level in
December 2019. Prepaid expenses and other current assets slightly decreased to
Php25.54 million from Php26.91 million in 2019.
Total non-current assets, which accounted for about 81.50% of the total assets in
June 2020 and 83.46% in December 2019 amounted to Php4.22 billion in June 2020 and
Php4.31 billion in December 2019. Cost of the hospital building and investment in medical
equipment comprised the bulk of the non-current assets.
Total current liabilities slightly decreased to Php645.30 million in June 2020 from
Php690.98 million in 2019 while accrued retirement benefit decreased to Php51.82 million
from Php52.49 million in 2019.
Comparing December 31, 2019, 2018 and 2017
Comparing December 31, 2019 and 2018
The total assets at year-end 2019 ended at Php5.2 billion higher by 6.8% from 2018.
Total liabilities increased by Php68.5 million, while stockholders’ equity closed at Php4.4
billion, higher by 6.2% from previous year.
SEC Form 17-IS

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Total current assets increased to Php854.1 million as against Php710.2 million in 2018.
Cash and cash equivalents increased to Php385.9 million from Php337.7 million in 2018.
Accounts receivable increased to Php273.5 million from Php220.9 million in 2018. The level
of inventory of medicines and medical supplies increased to Php167.8 million in 2019 from
Php126.7 million in 2018. The variance is attributed to year-end safety stock requirement.
Total non-current assets, which accounted for about 83.5% of the total assets in 2019
and 85.3% in 2018, amounted to Php4.3 billion in 2019 and Php4.1 billion in 2018. Cost of
the hospital building and investment in medical equipment comprised the bulk of the non-
current assets.
Total current liabilities increased to Php691.0 million in 2019 from Php641.7 million in
2018.
Non-current liabilities which consisted of retirement benefits accrual is reported at

Php52.5 million in December 2019 versus Php33.3 million at the end of 2018 due to
remeasurement loss in accrued retirement benefits liability owing to unfavorable discount rate
adjustment as a result of a change in valuation from PDEx (PDST-R2) to Bankers Association
of the Philippines (BAP) PHP Bloomberg BVAL Reference Rates (BVAL).
The shareholders’ equity increased to Php4.4 billion in 2019 from Php4.2 billion in
2018. The movement is attributable to the net income earned for the period partially offset by
the cash dividends paid in 2019.
Securities of the Registrant

The following is a list of the top twenty (20) stockholders of AHI and their corresponding
shareholdings as of July 31, 2020:
NO. NAME TOTAL SHARES %

METRO PACIFIC HOSPITAL HOLDINGS, INC.
1 1,016,151,999 52.477
(Formerly, Neptune Stroika Holdings, Inc.)
ASIAN HOSPITAL HOLDINGS CORPORATION
2 532,582,396 27.50
(Formerly, Bumrungrad International Philippines, Inc.)
3 METRO PACIFIC INVESTMENTS CORPORATION 109,278,743 5.64
4 GARCIA, JORGE M. 64,302,100 3.32
5 GILT-EDGED PROPERTIES, INC. 8,396,450 0.43
6 MENDIOLA, ROLANDO 1,806,210 0.09
7 ARCILLA, LEONIDA C. 1,481,423 0.08
8 EJERCITO, BEATRIZ DE CASTRO 1,478,769 0.08
MAGPANTAY, NAPOLEON N. &/OR MAGPANTAY,
1,478,769 0.08
CRISTETA B.
NCPS, INC. 1,478,769 0.08
PILIPINAS GEM CORPORATION 1,478,769 0.08
9 LIRIO, RENATO E. 1,183,015 0.06
YATCO, EMILIO B. &/OR YATCO, JOSEPHINE B. 1,183,015 0.06
10 MARTINEZ, DANILO 940,497 0.05
11 D.M. CONSUNJI, INC. 904,119 0.05
12 CARLOS, CRIS &/OR CARLOS, JOSEFINA 895,188 0.05
13 ALIBUDBUD, BIENVENIDO A. 887,261 0.05
SEC Form 17-IS

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EQUITABLE PCI BANK, INC. 887,261 0.05

MADERAZO, EUFRONIO G. 887,261 0.05
SINGSON, CARLO ROY R. 887,261 0.05
SINGSON, JAIME ENRICO R. 887,261 0.05
SINGSON, MARC OLIVER R. 887,261 0.05
SINGSON, MELISSA VICTORIA R. 887,261 0.05
14 ABEJUELA, MARIE MICHELLE PACIENCIA S. 827,210 0.04
IMPERIAL, ANN MARIE Y. CO / IMPERIAL, MARK
15 816,280 0.04
ANTHONY T.
16 CHUA, THOMAS Y. 789,871 0.04
17 ZARAGOZA, RAFAEL 769,020 0.04
18 LITONJUA, AUGUSTO D. 738,232 0.04
19 CACDAC, MANUEL 731,008 0.04
20 DEL MUNDO, AMOR S. 709,809 0.04
Comparing December 31, 2018 and 2017
The total assets at year-end 2018 ended at Php4.8 billion higher by 6.2% from 2017.
Total liabilities decreased by Php37.8 million, while stockholders’ equity closed at Php4.2
billion, higher by 8.4% from previous year.
Total current assets increased to Php710.2 million as against Php678.7 million in 2017.
Cash and cash equivalents increased to Php337.7 million from Php232.2 million in 2017.
Accounts receivable decreased to Php220.9 million from Php264.6 million in 2017. The level
of inventory of medicines and medical supplies decreased to Php126.7 million in 2018 from
Php153.5 million in 2017. The variance is attributed to additional provision for expired, non-
moving & slow-moving medical supplies inventory and change in purchasing approach
resulting to minimal inventory build up as a result of process improvement deployed this year.
Total non-current assets, which accounted for about 85.3% of the total assets in 2018
and 85.1% in 2017, amounted to Php4.1 billion in 2018 and Php3.9 billion in 2017. Cost of
the hospital building and investment in medical equipment comprised the bulk of the non-
current assets.
Total current liabilities decreased to Php641.7 million in 2018 from Php650.5 million in
2017.
Non-current liabilities which consisted of retirement benefits accrual is reported at

Php33.3 million in December 2018 versus Php62.3 million at the end of 2017 due to
remeasurement gain in accrued retirement benefits liability owing to favorable discount rate
adjustment as a result of a change in valuation from PDEx (PDST-R2) to Bankers Association
of the Philippines (BAP) PHP Bloomberg BVAL Reference Rates (BVAL).
The shareholders’ equity increased to Php4.2 billion in 2018 from Php3.8 billion in
2017. The movement is attributable to the net income earned for the period partially offset by
the cash dividends paid in 2018.
SEC Form 17-IS

December 2003
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INCOME STATEMENTS
Comparing June 30, 2020 and June 30, 2019
Total patient revenues stood at Php1.68 billion in the first six months of 2020, lower
by 13.63% or Php264.65 million against last year. The decrease in revenue is mainly
attributed to the impact of global pandemic, coronavirus disease 2019 (COVID-19). Of
the total patient revenues, inpatient revenues went up by 3.54% to Php1.15 billion from
last year’s Php1.12 billion, while outpatient services declined by 36.83% to Php521.82
million from Php825.99 million in the same period last year. Discounts decreased to
Php184.42 million in the first six months of 2020 from Php186.42 million in the same period
of 2019.
Inpatient census registered an average of 133 per day in the first six months of
2020 compared to 177 per day in the same period of 2019, while outpatient recorded an
average of 379 per day in 2020 and 692 per day in 2019.
Operating expenses consist mainly of direct costs, depreciation and amortization

and administrative expenses. The following table summarizes these operating expenses
for January to June 2020 and 2019:
PHP (In Thousand) 1H 2020 1H 2019

Medicines and medical supplies 419,987 427,404
Personnel expenses 313,463 312,693
Depreciation and amortization 199,764 176,256
Professional Fees and Outside Services 160,040 168,920
Reader's fee 76,548 108,732
Communication, Light and Water 65,398 80,906
Provision for bad debts 29,391 15,304
Repairs and maintenance 25,197 35,131
Patient meals 21,040 21,416
Others 119,026 106,574
Total 1,429,856 1,453,335
Medicines and medical supplies decreased by 1.74% in the first half of 2020 mainly
due to lower patient volume. Depreciation and amortization went up by 13.34% mainly
due to acquisition of medical equipment. The decrease in patient volume resulted to lower
reader’s fee. The decrease in communication, light and water is mainly due to lower power
rates and consumption. The increase in provision for bad debts is mainly due to slow
down in Philhealth payment. The decrease in repairs and maintenance is due to higher
facility related repairs done in prior year.
On March 11, 2020, the World Health Organization declared the novel strain of
coronavirus (COVID-19) a global pandemic and recommended containment and
mitigation measures worldwide.
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December 2003
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On March 16, 2020 Philippine President Rodrigo Duterte declared the entire Luzon
area in the Philippines under “enhanced community quarantine” (ECQ) which is effectively
a total lockdown, restricting the movement of the population but with exceptions, in
response to the growing pandemic of COVID-19 in the country. The quarantine was
originally set to last until April 12, 2020, but President Duterte accepted the
recommendation of the Inter-Agency Task Force on Emerging Infectious Diseases (IATF-
EID) to extend the Luzon ECQ up until April 30, 2020.
On May 1, it was extended again until May 15 but only on selected places which
are considered high-risk areas while low-risk to moderate-risk areas were placed under
general community quarantine (GCQ or a less strict quarantine), including the rest of the
country. On May 12, the government announced that only Metro Manila and Laguna in
Luzon would be under modified ECQ o MECQ from May 16 to 31 because these areas
are categorized as high-risk while moderate risk places are going to be under GCQ.
Originally, low-risk areas would neither be under ECQ nor GCQ but it was later clarified
that low-risk areas would be under modified GCQ. On May 15, a resolution by the IATF-
EID declared additional areas in Luzon under MECQ from May 16 to 31
namely Bataan, Bulacan, Nueva Ecija, Pampanga (including Angeles), and Zambales.
On May 28, President Duterte downgraded the tier of quarantine of Metro Manila and other
areas in Luzon to GCQ starting on June 1.
The coronavirus pandemic is adversely affecting, and is expected to continue to

adversely affect, our operations. We have experienced and expect to continue to
experience unpredictable reductions in demand for some of our services. While we expect
the impacts of COVID-19 to have an adverse effect on our business, financial condition
and results of operations, we are unable to reasonably estimate the extent or nature of
these impacts at this time.
Comparing December 31, 2019, 2018 and 2017
Comparing 2019 and 2018
Net patient service revenues grew by 6.2% to Php3.6 billion from Php3.4 billion in the
previous year. Of the gross patient service revenues, ancillary services contributed
Php3,627.1 million in 2019 and Php3,379.4 million in 2018, while routine services, which
include room and board, reported Php343.3 million in 2019 and Php324.3 million in 2018.
Cost of services and sales increased by 5.9% to Php2.0 billion in 2019.
Cost of Services and Sales 2019 2018

Medicine and Medical supplies 860,648,132 814,018,345
Personnel costs 339,822,117 283,265,426
Reader's Fee 219,814,860 213,706,432
Depreciation 202,748,295 178,989,893
Professional fees and outside services 196,168,238 195,573,699
Communication, light and water 120,448,020 131,705,935
Patient meals 45,843,265 43,338,866
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Supplies 25,536,754 23,943,881

Rent 11,768,772 9,769,154
Repairs and maintenance 11,755,669 9,980,148
Others 12,459,811 29,346,952
Total 2,047,013,933 1,933,638,731
Medicines and medical supplies inched up by 5.7% mainly due to the increase in
patient volume. Personnel expenses which consist of salaries, wages and employee benefits
were higher by 20.0% primarily due to the increase in headcount and higher salary resulting
from annual salary increases and adjustments. Readers fee increased by 2.9% due to higher
volume.
The increase in depreciation is mainly attributed to the acquisition of medical

equipment. The decrease in communication, light and water is mainly due to lower power rate
and consumption. The increase in patient meals is mainly due to higher patient census.
Rent expense increased primarily due to rental of reefer container van as canteen
storage while canteen is under renovation and increase in consumption of printer. The
increase in repairs and maintenance is mainly due to repair of medical equipment. The
decrease in others is mainly attributed to lower provision for expired and slow moving
inventories
Operating Expenses 2019 2018

Personnel costs 276,935,415 245,017,768
Depreciation 150,969,460 130,563,777
Taxes and licenses 26,740,814 24,182,689
Provision for doubtful accounts 19,185,493 36,541,421
Entertainment, amusement and recreation 18,355,301 16,590,637
Advertising 18,325,971 13,945,310
Supplies 17,923,450 17,155,841
Insurance 13,367,362 13,629,365
Transportation and travel 12,888,179 11,273,229
Rent 11,412,171 8,348,255
Amortization of software 6,990,740 5,590,262
Others 26,146,091 47,491,615
Total 853,298,061 807,622,999
The spike in personnel expenses is attributed to annual salary increases and

adjustments and increase in headcount. The increase in Professional fees and outside
services is mainly due to janitorial and security.
SEC Form 17-IS

December 2003
33
The increase in depreciation is mainly due to depreciation of building and hospital

information system. The increase in advertising is mainly due to signages and murals for Joint
Commission International (JCI) accreditation and photo and video coverage for various
events. The increase in rent expense is mainly due to parking rate increase. The decrease
in others is mainly due to reversal of prior year’s accrual of Filinvest art fund assessment fee.
Financing expenses declined by Php1.1 million or 30.1% compared to the same period
last year mainly due to lower interest from retirement expense.
The depreciation of the US dollar against the Philippine peso resulted from an un
favorable exchange of foreign currency denominated receivables.
The decrease in Other Income is mainly due to income from canteen operations.
Comparing 2018 and 2017
Net patient service revenues grew by 9.0% to Php3.4 billion from Php3.1 billion in the
previous year. Of the gross patient service revenues, ancillary services contributed
Php3,379.4 million in 2018 and Php3,067.1 million in 2017, while routine services, which
include room and board, reported Php324.3 million in 2018 and Php322.9 million in 2017.
Cost of services and sales increased by 11.8% to Php1.9 billion in 2018.
Cost of Services and Sales 2018 2017

Medicine and Medical supplies 814,018,345 716,330,779
Personnel costs 283,265,426 268,090,710
Reader's Fee 213,706,432 161,952,794
Depreciation 178,989,893 164,032,745
Patient meals 43,338,866 42,597,150
Supplies 23,943,881 20,716,051
Rent 9,769,154 9,449,285
Others 29,346,952 20,572,935
Total 1,933,638,731 1,728,929,964
Medicines and medical supplies inched up by 13.6% mainly due to the increase in
volume and opening of outpatient pharmacy. Personnel expenses which consist of salaries,
wages and employee benefits were higher by 5.7% primarily due to the increase in headcount
and higher salary resulting from annual salary increases and adjustments. Readers fee
increased by 32.0% due to higher volume. Professional fees and outside services went up
owing to the increase in contracted services and medical staff fees. The increase in
depreciation is mainly attributed to the acquisition of medical equipment.
The increase in rent expense is attributed to the increase in medical equipment rental.
SEC Form 17-IS

December 2003
34
Operating Expenses 2018 2017

Personnel costs 245,017,768 239,382,433
Depreciation 130,563,777 121,326,040
Provision for doubtful accounts 36,541,421 15,512,998
Taxes and licenses 24,182,689 20,665,441
Supplies 17,155,841 17,371,587
Entertainment, amusement and recreation 16,590,637 18,681,336
Advertising 13,945,310 18,285,241
Insurance 13,629,365 17,780,262
Transportation and travel 11,273,229 15,321,709
Rent 8,348,255 6,593,707
Amortization of software 5,590,262 2,538,976
Others 47,491,615 33,252,269
Total 807,622,999 745,139,167
The spike in personnel expenses is attributed to annual salary increases and

adjustments and increase in headcount. The increase in Professional fees and outside
services is mainly due to security services and new maintenance contract of all equipment.
The increase in depreciation is mainly due to depreciation of hospital information and

equipment system. The increase in provision for doubtful accounts is mainly due to first year
adoption of PFRS 9 (Expected Credit Loss).
Financing expenses declined by Php13.8 million or 78.4% compared to the same

period last year due to the full payment of loan in 2017.
The appreciation of the US dollar against the Philippine peso resulted from a favorable
exchange of foreign currency denominated receivables.
The increase in Other Income is mainly due to income from canteen operations.
There were no material events that will trigger will trigger direct or contingent
financial obligation that is material to the company, including any default or acceleration
of an obligation.
There were no material off-balance sheet transactions, arrangement, obligations

(including contingent obligations), and other relationships of the company with
unconsolidated entities or other persons created during the reporting period.
There were no material commitments for capital expenditures, general purpose of

such commitments, expected sources of funds for such expenditures.
SEC Form 17-IS

December 2003
35
There were no material known trends, events or uncertainties which have material
impact on sales.
There were no material causes for any changes from period to period of Financial
Statements.
There were no significant elements of income or loss that we are aware of either
arising from the Hospital’s continuing operations or otherwise.
HISTORICAL AND NEW DEVELOPMENTS
After months of negotiations with the syndicate of creditors on the restructuring of the
loans and with the prospective investor, Bumrungrad Hospital Public Company Ltd. (”BHI”),
together with a local group of investors (the Investors) on the fresh equity infusion, the first
quarter of 2005 saw the fruition of AHI’s efforts.
On February 7, 2005, the SEC approved the amendment to the Articles of

Incorporation of AHI in respect to the decrease in AHI’s capital stock from 2,000,000,000
shares with a par value of PHP1.00 per share to PHP573.7 million, consisting of 573,738,133
shares with a par value of PHP1.00 per share, and the subsequent increase to PHP2.0 billion,
consisting of 2,000,000,000 shares with a par value of PHP1.00 per share.
On February 8, 2005, following the approval of the SEC, the Board approved a
resolution authorizing AHI to perform the following acts to execute transactions with BHI and
a local group of investors as well as the restructuring of AHI’s loans with effectivity to retroact
to the date based on the parties’ agreement (referred to as the closing date):
• Execute a Master Investment Agreement (MIA) with the following stockholders:

MPHHI, representing BHI, Filinvest, Insular BIPI, a company acquired by BHI,
and certain stockholders setting forth the terms and conditions and the manner
of subscriptions in the AHI’s share and perform acts and execute such
documents as may be necessary to implement the terms of the MIA;
• In consideration for the BIPI subscription, AHI shall release and waive and
cause its wholly owned subsidiary, HealthCare Properties, Inc., to irrevocably
release and waive any and all claims against BIPI for acts or omission
committed or occurring prior to closing date;
• Execute a waiver and release to BIPI;
• Execute a Buyer Undertaking in favor of BIPI shareholders to reimburse BIPI

shareholders the IFC Loan commitment amount and to acknowledge the
release of BIPI under the funding letter;
• Restructure the secured Local Loans with local lenders;
SEC Form 17-IS

December 2003
36
• Execute a restructuring agreement and the sixth amendment of the Omnibus

Loan and Security Agreement (OLSA), and the Supplemental Indenture to the
Equipment MTI, with the local lenders, Trustee and IFC;
• Execute an amendment of the Guarantee Agreement and the Share Retention

Agreement with IFC, BIPI Health Delivery Systems, Inc., a shareholder, and to
terminate the Project Funds Agreement and the Fee Subordination Agreement
with BIPI and IFC;
• Execute an amended Management Consultancy Service Agreement (MCSA)

with BIPI for the provision of management and consultancy services to AHI ;
• Execute a software license and system implementation agreement with BHI

and a subscription and support service agreement with Global Care Solution
(Thailand) Co. Ltd.;
• Execute a restructuring agreement with IFC for the restructuring of the IFC
Loan;
• Accept the waiver issued by IFC waiving the requirements that the
management fee payable under the amended MCSA shall no longer be
subordinated to the IFC Restructured Loan Agreement and consent to the
amended MCSA as defined under the MIA;
• Accept the partial offsetting of the assignment of HCPI payables to BIPI and
BIPI’s subscription payable to AHI;
• Execute various deeds of assignment with respect to the settlement of the buy-
back share agreement with FAI through assignments of portion of advances to
the Parent Company in exchange for shares at a subscription price of PHP1.30
per share; and
• Payment to BIPI of the unpaid management fees amounting to PHP30.2 million

which BIPI shall simultaneously pay back to AHI to subscribe 26,795,145
shares.
On February 24, 2005, the restructuring agreements with the syndicate of local banks
and the IFC were signed. General terms of the restructuring of the local loans included the
following:
• All outstanding principal amounts of the loans plus a portion of the capitalized
overdue and accrued interest were restructured into 2 loan tranches, consisting
of PHP1.4 billion in Tranche A Loans and PHP215.4 million in Tranche B
Loans, after an upfront payment of PHP100 million.
• All accrued interest and all default penalty charges due on the existing loans
up to the restructuring were waived.
SEC Form 17-IS

December 2003
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• Term of 12 years, inclusive of a 4-year grace period on principal repayments.
• Effective interest rate of 15.1% and 15.5% for Tranche A and Tranche B loans
respectively, starting at 9% for the first 3 years, 11.5% on the 4th to 6th years,
12% on the 7th to 9th years and 13.45% on the last 3 years. For Tranche B loan,
a fixed interest rate of 5% p.a.
• Principal repayments are tiered up starting at 1.25% of principal for the first 4
payments; 2.5% for the succeeding 4 payments; 5.5% for the next 4 payments;
7.5% for the succeeding 4 payments and a balloon payment of 33%.
The IFC carried similar terms and conditions for its two tranches, a Senior Loan of
USD2.8 million after the application of a prepayment of USD1.2 million and a Subordinated
Loan in the amount of USD1 million. The Senior Loan carries a rate of LIBOR plus 2.5%
spread, while the rate for the Subordinated Loan is LIBOR and an income participation ranging
from 1% to 2% of EBITDA for each year from 2003 to 2016.
The restructured loans are secured by a Mortgage Participation Certificate (MPC)

under the MTI and Equipment MTI, which cover all of AHI’s land, building improvements
(through its former subsidiary, HCPI) and equipment and machinery.
Also, as of the same date, the following payments for cash subscriptions were received
by AHI from the relevant parties:
• Cash payments in the amount of PHP551.6 million as payment for the

subscriptions of new investors and certain stockholders.
On March 3, 2005, the Notice of Closing was issued informing parties involved of the
official closing of the various transactions in connection with the investments of BHI and by
various investors in AHI as well as the restructuring of AHI’s loans. The Notice of Closing is
dated February 24, 2005 in accordance with the parties’ agreement to make the effectivity of
the various transactions retroact to said date. Accordingly, the transactions contemplated
above and agreements in connection therewith have been declared, officially completed and
satisfied.
Under the Amended MCSA with BIPI, a stockholder of AHI, BIPI will provide
management, development and consultancy services to AHI. Beginning April of 2005, BIPI
nominated key executives for the Board’s review and approval.
Throughout the year, the new Management of AHI pursued several initiatives to further
reduce and control operating expenses and increase Hospital revenues. A revised 5-year plan
was prepared and submitted to the syndicate of creditors by May of 2005. Purchasing of
medical equipment and supplies were done at the regional level wherever possible to avail of
substantial discounts. A new Business Development Director was hired by mid-2005 to focus
on new marketing initiatives that would generate additional patient volume for the Hospital.
AHI’s Board and Management actively pursued compliance of SEC’s Corporate Governance
rules throughout AHI. A new IT system (Hospital 2000, or H2000) was put in place and went
live by December 4, 2005. Inpatient and outpatient admissions as well as surgeries and
procedures increased significantly during the year.
SEC Form 17-IS

December 2003
38
During 2006 and 2007, Management continued to focus on business initiatives to

increase volume, improve revenues and reduce operating expenses. There was a major focus
during the year on program development and improving Medical Office Building clinic usage
and referrals. The Hospital targeted corporations and insurance companies to promote the
services and facilities of the Hospital which resulted in the increase in the corporate and Health
Maintenance Organization (HMO) clients utilizing the Hospital services. With the
implementation of the H2000 information system, AHI was able to closely monitor revenue
and expenses with real time data to ensure that operating margins continued to improve.
On February 8, 2008, AHI entered into Local Currency Loan Agreements with the
IFC and DEG in the maximum disbursement amount of PHP1, 260 million and PHP595
million, respectively. The terms of the loan agreements provide that the proceeds of the
loan be used for the refinancing of AHI’s existing debt and the expansion of AHI’s Hospital
facilities.
The following acts were completed on February 8, 2008 in relation to the loan
agreements with IFC and DEG:
• Execution of a second supplemental agreement to the Equipment MTI to

establish a mortgage and security interest in favor of IFC and DEG over the
assets of AHI to secure the loans.
• Execution of a second supplemental agreement to the restructured loan

agreement between AHI and IFC to ensure consistency of the IFC loan entered
in 2008 with the restructured loan agreement.
• Execution of a Share Retention Agreement among AHI, BIL, BIPI, MPHHI and
IFC and DEG, wherein so long as the loans to IFC and DEG are not paid in full:
(a) BIL undertakes to maintain a certain percentage of direct or indirect

ownership in BIPI and MPHHI; and
(b) BIPI and MPHHI undertake to maintain a certain percentage of their

direct or indirect ownership in AHI.
In addition, AHI executed a seventh amendment to the OLSA dated June 19, 2008,
which includes IFC and DEG and excludes the local lenders as parties to the contract.
On March 10, 2010, AHI availed of the remaining undisbursed amounts from IFC and
DEG, amounting to PHP252.0 million and PHP119.0 million, respectively.
The construction period of AHI’s Phase 1 Expansion continued until the 3rd quarter
2009 during which the new upper ground connector opened to the public in early August. The
Patio that houses AHI’s conference facility opened in early September. The 4th floor outpatient
facility opened its doors to clients and patients in October 2009.
The outpatient facility is housing the Lifestyle Medicine Center, a unique center that is
focusing on the maintenance of people’s health in a pro-active way.
SEC Form 17-IS

December 2003
39
The acquisition of some state-of-the-art equipment during the year 2009 such as the
64-slice CT scanner, the new Lithotripsy and fully integrated Minimal Invasive Operating
Room, the first of its kind in the Philippines, allowed surgical procedures to be performed with
minimal trauma to a patient. Technology upgrades continued in 2010 with the installation of
the new Catheterization Laboratory that will allow more extensive diagnostic and directly
invasive procedures. These investments were made for the continued growth of the Hospital.
AHI’s conference facility is used extensively for lay forums, workshops and
symposiums since its opening in September 2009. The facility is designed to be used for
educational purposes and training for students, nurses and doctors.
The construction of the new Hospital tower started in January 2010. With the
increasing census in 2011, AHI Management equipped the 11th floor nursing ward to increase
bed capacity by 24 beds and opened last August 2012.
Effective July 1, 2011, AHI revised the estimated useful life of certain property and
equipment from 15 years to 5 years resulting in an increase in depreciation totaling PHP 328
million, of which PHP246.1 million was taken in the year 2011.
In October 2011, the SRA with BIL, AHI, MPHHI and AHI’s creditors was terminated,
releasing BIL from all its share retention obligations. On the same date, MPHHI executed a
new SRA with MPIC, AHI and AHI’s creditors subject to the same terms and conditions of the
old SRA. In the new SRA, all share retention obligations of BIL were transferred to MPIC.
On December 6, 2011, the controlling interest in the Company was purchased by Metro
Pacific Investment Corporation (MPIC) from Bumrungrad International Limited (BIL) and
another person. Correspondingly, the Company’s parent as of December 31, 2011 is MPIC.
Prior to December 6, 2011, the parent company is BIL.
On April 19, 2012, a mandatory tender offer for the 43.50% stake held by the
Company’s non-controlling investors launched by MPIC was completed. MPHHI, a wholly-
owned subsidiary of MPIC, and a non-controlling investor of AHI, exercised its right of first
refusal and purchased an additional 27.98% stake in the Company from other non-controlling
investors. This resulted to an increase in MPHHI’s beneficial and/or legal ownership in AHI to
52.41% for 2012. Effectively, the Company’s immediate parent as of December 31, 2012 is
MPHHI while the Company’s ultimate parent is MPIC, being the stockholder owning one
hundred percent (100%) of the outstanding capital stock of both MPHHI and BIPI.
AHI acquired the brain lab machine for the image-guided surgery in July 2012.
On September 2013, the hospital opened its breast center facility. The center is the
first and the biggest integrated facility that offers a one-stop shop for breast care using the
latest technology and medical expertise. The breast center facility is located at the 4th floor of
the new hospital tower.
AHI opened the Chemo Infusion Unit and Upper Ground Floor of Tower 2 which is the
expansion of the outpatient services facility in October 2013.
SEC Form 17-IS

December 2003
40
On December 9, 2013, AHI received its first Gold Seal of Approval from the Joint
Commission International (JCI) – a United States-based international accreditation body which
aims to help health care organizations globally deliver the highest quality of patient care
services. JCI sets strict standards that ensure patient safety and improve organizational
management, facility management and safety, and quality of care.
On May 20, 2014, MPHHI acquired from MPIC additional shares in AHI which resulted
to an increase in MPHHI’s ownership in AHI to 58.1% as of December 31, 2014. In addition,
MPHHI also acquired 100% of the outstanding capital stock of Bumrungrad International
Philippines, Inc. (BIPI) on July 1, 2014. BIPI has legal and beneficial ownership in AHI of
27.5%. As of December 31, 2014 MPHHI effectively owns 85.56% of AHI.
On July 1, 2014, MPHHI, together with AHI, MPIC, BIPI and AHI’s creditors executed
an Amendatory Agreement to the SRA amending certain provisions of the SRA to allow the
transfer of ownership of 100% of the outstanding capital stock of BIPI from MPIC to MPHHI
and reducing MPIC’s ownership requirement of MPHHI.
AHI Management equipped the 10thand 9thfloor nursing ward of the new hospital tower
in April and October 2014 respectively, to increase bed capacity by 60 beds.
On July 23, 2015, the company launched the Asian Cancer Institute (ACI), the very
first cancer facility in the country that fully integrates the most appropriate care each patient
requires to conquer cancer. ACI is equipped with newer and advanced TomoTherapy HDA-
H Series machine, a top of the line equipment which can deliver a very accurate radiotherapy
treatment for cancer.
AHI has gained its second accreditation on September 2016 from Joint Commission
International (JCI), in pursuit to persistently strive and achieve a quality medical service for
the patients and the communities it serves.
AHI opened the Emmanuel Center on February 13, 2017. It is an innovative,

multidisciplinary, patient-centered ambulatory care facility that provides screening, diagnosis,
and surgical care for cancer patients.
AHI expanded its Hemodialysis and Endoscopy units in February 2017.
On February 24, 2017, AHI opened the Chrys Specialty Pharmacy. Chrys Specialty
Pharmacy is an outpatient pharmacy that serves the special needs of patients with complex
disease conditions like cancer and other chronic ailments. It provides a wide range of High
Quality anticancer drugs and prescription drugs related to cancer treatment at very reasonable
prices.
On May 9, 2017, Asian Hospital Outpatient Pharmacy started its operations.
On June 2017, AHI opened Neuro ICU to its patients. AHI was also re-accredited by
the Department of Health as Mother Baby Friendly Hospital. AHI was initially accredited last
June 2014.
SEC Form 17-IS

December 2003
41
AHI has completed its loan payment to IFC and DEG in November and September
2017, respectively.
Asian Cardiovascular Institute was launched in January 2018.
Asian Ambulatory Care Facility was launched in September 2018.
Asian Brain Institute and Asian Senior Wellness Institute were launched in August
2019.
AHI has recently gained its third re-accreditation in September 2019 from Joint
Commission International (JCI).
On May 2020, AHI launches “eConsults” and Online Appointments. “eConsults” is an

online platform where patients can communicate and consult their health concerns with Asian
Hospital doctors at the comforts of their homes, for their convenience and protection, during
and after community quarantine. Online Appointments, is similar to the eConsults where
patients can book their appointments before arriving at the hospital. On the same period, due
to the rising cases of COVID, AHI applied to be an accredited COVID-19 Testing Center and
achieved its level five molecular laboratory testing center achievement where it can
independently conduct reverse transcription-polymerase (RT-PCR) testing.
Except for those disclosed above, there are no other known trends, events or
uncertainties that will have a material impact on AHI liquidity or have a material impact on
revenue. AHI relies on the balance of the equity infusion and cash flows from operations as
sources of its liquidity. Neither are there seasonal aspects, causes for any material changes
from period to period or material off-balance sheet transactions, arrangements, obligations
that may have material impact on AHI financial conditions or results of operations. AHI does
not have any plan for product research and development over the next twelve (12) months.
ADDITIONAL NOTES TO FINANCIAL STATEMENTS
Basis of Preparation
The accompanying financial statements have been prepared on a historical cost basis, except
for financial assets at fair value through other comprehensive income (FVOCI). The financial
statements are presented in Philippine Peso, which is the Company’s functional and
presentation currency, and all values are rounded to the nearest Peso except when otherwise
indicated.
Statement of Compliance
The financial statements of the Company are prepared in accordance with Philippine Financial
Reporting Standards (PFRSs). The term PFRS includes all applicable PFRS, Philippine
Accounting Standards (PAS) and interpretations issued by the Philippine Interpretations
Committee and International Financial Reporting Interpretations Committee (IFRIC) which
have been approved by the Philippine Financial Reporting Standards Council (FRSC) and
adopted by the Philippine SEC.
SEC Form 17-IS

December 2003
42
Changes in Accounting Policies and Disclosures

The accounting policies adopted are consistent with those of the previous financial year,
except that the Company has adopted the following new accounting pronouncements starting
January 1, 2019. Except as otherwise indicated, the adoption of these new accounting
pronouncements and amendments did not have any significant impact on the financial
statements of the Company.
• PFRS 16, Leases
PFRS 16 supersedes PAS 17, Leases, Philippine Interpretation IFRIC 4, Determining whether
an Arrangement contains a Lease, Philippine Interpretation Standard Interpretations
Committee (SIC) 15, Operating Leases-Incentives and Philippine Interpretation SIC-27,
Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard
sets out the principles for the recognition, measurement, presentation and disclosure of leases
and requires lessees to recognize most leases on the balance sheet.
Lessor accounting under PFRS 16 is substantially unchanged from today’s accounting under
PAS 17. Lessors will continue to classify all leases using the same classification principle as
in PAS 17 and distinguish between two types of leases: operating and finance leases.
Therefore, PFRS 16 did not have an impact for leases where the Company is the lessor.
The Company elected to use transition practical expedient to not reassess whether a contract
is, or contains a lease at January 1, 2019. Instead, the Company applied PFRS 16 only to
contracts that were previously identified as leases. Upon adoption of PFRS 16, the Company
availed the recognition exemption for short-term leases and leases of low-value assets. Lease
payments on short-term leases and leases of low-value assets are recognized as expense on
a straight-line basis over the lease term.
• Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

• Amendments to PFRS 9, Prepayment Features with Negative Compensation
• Amendments to PAS 19, Employee Benefits, Plan Amendment, Curtailment or
Settlement
• Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures
• Annual Improvements to PFRSs 2015-2017 Cycle
o Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint
Arrangements, Previously Held Interest in a Joint Operation
o Amendments to PAS 12, Income Tax Consequences of Payments on Financial
Instruments Classified as Equity
o Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for
Capitalization
Standards Issued but not yet Effective

Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the
Company does not expect that the future adoption of the said pronouncements will have a
significant impact on its financial statements. The Company intends to adopt the following
pronouncements when they become effective.
SEC Form 17-IS

December 2003
43
Effective beginning on or after January 1, 2020
• Amendments to PFRS 3, Definition of a Business

• Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting
Policies, Changes in Accounting Estimates and Errors, Definition of Material
• PFRS 17, Insurance Contracts
Deferred effectivity
• Amendments to PFRS 10, Consolidated Financial Statements and PAS 28, Sale or
Contribution of Assets between an Investor and its Associate or Joint Venture
Material events and uncertainties

Aside from the above discussions, there are no known trends, demands, commitments, events
or uncertainties that will have a material impact on the issuer’s liquidity. There are no events
that will trigger direct or contingent financial obligation that is material to the company,
including any default or acceleration of an obligation. There is nothing to disclose on material
off-balance sheet transactions, arrangements, obligations (including contingent obligations),
and other relationships of the company with unconsolidated entities or other persons created
during the reporting period. There are no material commitments for capital expenditures, the
general purpose of such commitments and the expected sources of funds for such
expenditures. There are no known trends, events or uncertainties that have had or that are
reasonably expected to have a material favorable or unfavorable impact on net
sales/revenues/income from continuing operations. There are no significant elements of
income or loss that did not arise from the issuer’s continuing operations. There are no
seasonal aspects that had a material effect on the financial condition or results of operations.
There are no other material subsequent events requiring adjustments or disclosures that have
not been reflected or disclosed in the financial statements
KEY PERFORMANCE INDICATORS
A. Hospital Census
The number of average daily inpatient census as of December 2019 increased to

179 from the average of 170 in 2018, while outpatient census increased to an average of
696 per day as of December 2019 from 638 over the same period last year. The hospital’s
total revenue from services to patients for 2019 went up by 7.4% or Php225.9 million.
2019 2018
Average Daily Inpatients 179 170
Average Daily Outpatients 696 638
SEC Form 17-IS

December 2003
44
B. Health Maintenance Organization (HMO) Accreditation
AHI was monitoring the utilization and revenue contribution of each HMO. In 2007,
AHI started a project to improve and align processes with numerous HMOs in order to reduce
the collection period for outstanding invoices. As of the end of 2019 and 2018, the Company
has 21 and 18 accredited HMOs, respectively.
C. Patients Receivable Management
AHI’s existing policy in providing allowance for doubtful accounts is based on net
revenues adjusted by the result of aging analysis. The Company adopted PFRS 9 –
Expected Credit Loss (ECL) as mandated, beginning January 1, 2018, in calculating the
required allowance for bad debts. AHI decided to use the simplified provision matrix in
estimating the ECL for its collective assessment of impairment of receivables. The
Company has identified different macroeconomic factors for each segment of its
receivable to comply with the requirements of PFRS 9 to incorporate forward-looking
information.
Comparable figures as of December 31, 2019 and 2018 are as follows:
Year 2019 Year 2018

Percentage of Allowance for
Doubtful Accounts (ADA) over
Accounts Receivable 26.3% 31.0%
Days’ Revenues in Receivables* 28 29
* calculated by dividing average Accounts Receivable - Trade as of balance sheet date by

the accumulated average daily revenues
AHI continues to adhere to the top-up payment and collection policy for all
admissions including elective surgery as well as scheduled and emergency admissions.
A pre-admission payment is required upon admission and regular top-ups are actively
pursued as hospital bills accumulate. AHI’s Accounts Receivable Section has been
closely monitoring the progress of patient receivables and has been meeting regularly for
this purpose.
The collection of long outstanding accounts receivables has been outsourced to a

collecting agent who is officially communicating with patients who have outstanding payables
to AHI. This agency has been instructed to legally pursue some of the receivables from
patients who have refused to react to payment notices issued by the Hospital.
D. Inventory Management
On a regular basis, the Supply Chain Management Department reviews the reorder
quantity and lead-time to ensure that inventory is kept at the optimum level. The levels of
inventories for medical supplies and for the inpatient pharmacy - including critical lifesaving
SEC Form 17-IS

December 2003
45
medicines that were added to the formulary - were adjusted in response to the patient
volumes.
As an indicator, the Hospital has set days’ sales in inventory to 60 days. Comparable
figures as of December 31, 2019 and 2018 are as follows:
Year 2019 Year 2018
Days’ Sales in Inventory* 63 64
* calculated by dividing the average ending inventory by the average cost of sales per day
E. Rationalization of Manpower Level
The Hospital increased the number of staff (a) to provide the best care possible that
each patient deserves and (b) to have adequate staffing for the new services. The
Management of the Hospital continues to monitor the manpower allocation consistent with the
workloads and service requirements of each department to ensure quality service delivery at
all times. AHI continue to outsource some of its noncritical staffing requirements (security,
janitorial and laundry services).
Following is the comparative manpower levels of the Hospital as of December 31, 2019
and 2018:
Year 2019 Year 2018

Regular* 1,296 1,272
Probationary* 324 194
1,620 1,466
* Actual headcount
Dividends
AHI declared dividends with a total amount of Php240.2 million in 2019 and Php185.9
million 2018, respectively.
SEC Form 17-IS

December 2003
46
CORPORATE GOVERNANCE
AHI fully subscribes to the practice of corporate governance. It is making every attempt
to monitor and comply with the Corporate Governance Manual (Manual) submitted to the SEC
under Memorandum Circular No. 2 dated April 5, 2002 and all related circulars issued.
In compliance with Section 6 (Monitoring and Assessment) of its Manual, the Manual
was reviewed and revised. The revisions to the Manual were approved by the Board at its
September 6, 2005 meeting. One of the revisions involves the amendment of AHI’s Amended
By-Laws as discussed in Item 4 (ii).
AHI’s Code of Ethics was also put in place for all its employees to observe. Members
of the Board attended a seminar on corporate governance on October 21, 2005 by the
Philippine Institute of Certified Public Accountants (PICPA) to better understand and support
corporate governance.
AHI continued to monitor and significantly comply with the good governance practices
and principles outlined in the SEC Corporate Governance Self-Rating Form (CG-SRF). In
numerous areas, AHI continued to improve with its cooperation with various committees of the
AHI, i.e., quarterly meetings were held with the Audit Committee, and the Internal Audit
function – ad-interim outsourced to KPMG – reviewed internal processes in mid-2006 followed
by a comprehensive report.
During the January 25, 2008 meeting, the Board authorized the amendment of AHI’s
Manual to require the directors to attend a seminar on corporate governance to be conducted
by a duly recognized private or government institute before assuming office as such in
compliance with the directive of the SEC.
At the June 24, 2010 meeting, the Board approved the amendment of AHI’s Manual to
incorporate the duties and responsibilities of the Chairman, Vice-Chairman, Chief Executive
Officer, President, Treasurer and Chief Financial Officer. AHI’s Manual of Corporate
Governance Manual was further revised and amended to comply with the requirements of the
SEC Memorandum Circular No. 6, Series of 2009. These amendments and revisions to AHI’s
Revised Manual on Corporate Governance were approved by AHI’s Executive Committee at
its February 17, 2011 meeting and were ratified by the Board at the March 18, 2011 Board
meeting.
Other than the provisions of the Revised Manual that were revised, there has been
no deviation from the Revised Manual. Neither has there been any director or executive
officer of AHI who has violated any provision of the Revised Manual.
SEC Form 17-IS

December 2003
47
SCHEDULE I:
LETTER TO THE SEC ON THE EXTENSION OF TERM
OF AHI INDEPENDENT DIRCTORS
02 March 2020
SECURITIES & EXCHANGE COMMISSION

G/F Secretariat Building
PICC Complex, Roxas Boulevard
Manila, 1307
Attention: DIR. RACHEL ESTHER J. GUMTANG-REMALANTE

Corporate Governance and Finance Department
Re: AHI Independent Directors - Extension of Term
Dear Dir. Remalante,
In relation to the filing of Asian Hospital, Inc. (“AHI”) of its Information Statement as required
under Rule 20 of the 2015 Implementing Rules and Regulations of the Securities
Regulation Code, we would like to notify the Honorable Commission of AHI’s intention to
re-elect its incumbent independent directors: i. Fernando Jose A. Fontanilla; and (ii)
Carmelita I. Quebengco, for the year 2020-2021. The foregoing directors were due to observe
the cooling off period of two (2) years on May 2017 but the Corporation opted to have them
re-elected as AHI was unable to find other replacements that will provide the same or
comparable skills, qualification and experience that the incumbent independent directors are
currently providing. The AHI Board is likewise convinced that Directors Fontanilla and
Quebengco remain independent and are qualified for re-election to the AHI Board.
We trust that you find the foregoing in order.
Very truly yours,
JANE CATHERINE C. ROJO

Assistant Corporate Secretary
SEC Form 17-IS

December 2003
48
ANNEX “A”

VIRTUAL ANNUAL STOCKHOLDERS’
MEETING
REQUIREMENTS AND
PROCEDURES FOR
ELECTRONIC VOTING IN
ABSENTIA
Please be advised that the Annual Meeting of the stockholders of ASIAN HOSPITAL,
INC. will be held on Tuesday, 15th day of September 2020 at 10:30 A.M.
In order to ensure the safety and welfare of our stockholders in light of the COVID-19
situation, the Company will dispense with the physical attendance of stockholders at the
meeting and will allow attendance only by remote communication and by voting in
absentia, or voting through the Chairman of the meeting as proxy.
Registration Period
Registration to vote in absentia or via an absentee ballot may be made through the
Company’s Electronic Voting in Absentia System at ahiagm.asianhospital.com (the
“Website”) from 8:00 A.M. of August 18, 2020 until 5:00 P.M. of September 11, 2020 (the
“Registration Period”). Beyond this time and date, a Stockholder may no longer be
allowed to participate in the Annual Meeting of the stockholders.
Registration Requirements
The following are needed for the online registration:
For Individual Stockholders
1. The unique Stockholder ID to be secured by the stockholder from the Company’s

stock transfer agent. Stockholders may reach the Company’s stock transfer
agent within the Registration Period, Monday to Friday from 9:00 a.m. to 5:00
p.m. at:
PROFESSIONAL STOCK TRANSFER INC.

10th Floor Telecom Plaza, 316 Gil Puyat Avenue, Makati City
Telephone Number: (632) 8687-4053
Look for: Ms. Hilda Amion or Ms. Edelyn Jimeno
(Email Address: hilda.amion@professionalstocktransfer.com or
edelyn.jimeno@professionalstocktransfer.com )
2. Full name of the stockholder;
3. Valid and current email address;
4. Valid and current contact number, including the area code (landline or mobile
SEC Form 17-IS

December 2003
49
number);
5. Citizenship/Nationality; and
6. Digital copy of the stockholder’s valid and unexpired government-issued
ID.
For Corporate Stockholders
1. Secretary’s certificate or equivalent document (in case of a non-resident

stockholder) attesting to the authority of the representative to vote for and on
behalf of the corporation;
2. The unique Stockholder ID to be secured by the stockholder from the Company’s
stock transfer agent. Stockholders may reach the Company’s stock transfer
agent within the Registration Period, Monday to Friday from 9:00 a.m. to 5:00
p.m. thru the contact details provided above.
3. Full name of the stockholder’s Authorized Representative;
4. Valid and current email address of the stockholder’s Authorized Representative;
5. Valid and current contact number, including the area code (landline or mobile
number) of the stockholder’s Authorized Representative;
6. Citizenship/Nationality of the stockholder’s Authorized Representative; and
7. Digital copy of the valid and unexpired government-issued ID of the
stockholder’s Authorized Representative.
Online Registration Procedure
1. Log in into the Electronic Voting in Absentia System at the Website using your
unique Stockholder ID. Please ensure that you have prepared the necessary
information and requirements.
2. Read the Data Privacy Notice in the Website. If you agree to its terms, please
check the box signifying your consent to the processing of your personal
information which shall be used only for purposes of the Annual Meeting of the
stockholders.
3. Enter the information required in the respective fields and upload the digital copy
of your valid government-issued ID. When all information and documents have
been uploaded, please click the “Submit” button.
Reminders:
• A stockholder’s online registration cannot be completed if any of the mandatory

requirements are not submitted.
• Only stockholders who submitted the complete requirements thru the Website by
September 11, 2020, 5:00 P.M., are entitled to participate in the Annual Meeting
of the AHI stockholders.
• Please take note of your Stockholder ID and Authentication Code and keep them
in a safe place.
• In case of any issues relating to your registration in the Website, or in case you
SEC Form 17-IS

December 2003
50
lost your Stockholder ID or Authentication Code, please send an email to

ahiagminfo@asianhospital.com
Verification of Stockholder Registrations
The Company or its stock transfer agent shall verify the information and details submitted
through the Electronic Voting in Absentia System, starting on April 30, 2020.
After verification of complete submission of the required information and documents, the
stockholder shall receive an e-mail through the stockholder’s registered e-mail address
confirming registration in the Website. Such e-mail confirmation shall also contain a
unique Authentication Code per stockholder.
Please call or contact the Company’s stock transfer agent or

ahiagminfo@asianhospital.com in case you have not received any notification by
September 15, 2020.
Conduct of the Annual Meeting
The Annual Meeting of the stockholders shall be broadcasted online. The procedure for
online voting shall be emailed to the stockholders who successfully registered before the
expiration of the Registration Period.
Data Privacy
Each individual stockholder’s (or that of the corporate stockholder’s Authorized

representative) data will be collected, stored, processed and used exclusively for the
purposes of the Annual Meeting of the stockholders. Personal information will be
processed in accordance with the Philippine Data Privacy Act of 2012 and applicable
regulations. The detailed data privacy policy of the Company may be accessed in the
Website.
SEC Form 17-IS

December 2003
51
ANNEX “B”
2019 AUDITED FINANCIAL STATEMENTS
The Company will provide without charge to each person solicited, upon the written
request of any such person, a copy of the Company’s Annual Report in SEC Form 17-A
which includes the AFS for the year ended December 31, 2019. Such written request
should be directed to the Corporate Secretary, Asian Hospital, Inc., c/o 10th Floor, MGO
Building, Legazpi cor. Dela Rosa Sts., Legazpi Village, Makati City.
The Audited Financial Statement, Notice and Agenda and this Information Statement are
posted on the Company’s website and can be accessed at
https://www.asianhospital.com/about/annual-stockholders-meeting.
SEC Form 17-IS

December 2003
Asian Hospital, Inc.
(A Subsidiary of Metro Pacific Hospital
Holdings, Inc.)
Financial Statements
As at December 31, 2019 and 2018
and for the Years Ended December 31, 2019,
2018 and 2017
and
Independent Auditor’s Report

SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders

Asian Hospital, Inc.
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Asian Hospital, Inc. (a subsidiary of Metro
Pacific Hospital Holdings, Inc.) (the Company) which comprise the statements of financial position as at
December 31, 2019 and 2018, and the statements of comprehensive income, statements of changes in
equity and statements of cash flows for each of the three years in the period ended December 31, 2019,
and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2019 and 2018, and its financial performance and its cash
flows for each of the three years in the period ended December 31, 2019 in accordance with Philippine
Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the
ethical requirements that are relevant to our audit of the financial statements in the Philippines, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises the information
included in the SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report
for the year ended December 31, 2019, but does not include the financial statements and our auditor’s
report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual
Report for the year ended December 31, 2019 are expected to be made available to us after the date of this
auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any
form of assurance conclusion thereon.
*SGVFS038907*
A member firm of Ernst & Young Global Limited
-2-
In connection with our audits of the financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
audits or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PFRSs, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
*SGVFS038907*
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· Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
· Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Report on the Supplementary Information Required Under Revenue Regulations No. 15-2010
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken
as a whole. The supplementary information required under Revenue Regulations No. 15-2010 in Note 27
to the financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is
not a required part of the basic financial statements. Such information is the responsibility of the
management of Asian Hospital, Inc. The information has been subjected to the auditing procedures
applied in our audit of the basic financial statements. In our opinion, the information is fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
SYCIP GORRES VELAYO & CO.
Julie Christine O. Mateo

Partner
CPA Certificate No. 93542
SEC Accreditation No. 0780-AR-3 (Group A),
August 16, 2018, valid until August 15, 2021
Tax Identification No. 198-819-116
BIR Accreditation No. 08-001998-68-2018,
February 26, 2018, valid until February 25, 2021
PTR No. 8125278, January 7, 2020, Makati City
February 18, 2020
*SGVFS038907*
(A Subsidiary of Metro Pacific Hospital Holdings, Inc.)
STATEMENTS OF FINANCIAL POSITION
December 31
2019 2018
ASSETS
Current Assets
Cash and cash equivalents (Note 4) P
=385,903,844 =337,734,440
P
Receivables (Notes 5 and 23) 273,482,135 220,929,931
Inventories (Note 6) 167,805,634 126,690,067
Other current assets (Note 7) 26,905,962 24,841,487
Total Current Assets 854,097,575 710,195,925
Noncurrent Assets
Property and equipment (Note 8) 4,163,459,904 3,963,744,700
Deferred income tax assets - net (Note 20) 99,192,841 101,755,326
Other noncurrent assets (Note 9) 47,206,930 60,934,002
Total Noncurrent Assets 4,309,859,675 4,126,434,028
TOTAL ASSETS P
=5,163,957,250 =4,836,629,953
P
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and other current liabilities
(Notes 10, 13 and 23) P
=592,181,063 =586,325,615
P
Income tax payable 91,437,719 48,816,587
Due to a related party (Note 23) 7,361,859 6,550,019
Total Current Liabilities 690,980,641 641,692,221
Noncurrent Liability
Accrued retirement benefits liability - net (Note 19) 52,491,491 33,260,885
Total Liabilities 743,472,132 674,953,106
Equity
Capital stock [held by 604 and 603 equity holders in 2019 and 2018,
respectively] (Note 12) 1,933,624,405 1,933,085,816
Additional paid-in capital 185,465,780 185,465,780
Retained earnings (Note 12) 2,301,171,160 2,026,301,030
Other comprehensive income - net of tax
(Notes 9, 12 and 19) 223,773 16,824,221
Total Equity 4,420,485,118 4,161,676,847
TOTAL LIABILITIES AND EQUITY P

=5,163,957,250 =4,836,629,953
P
See accompanying Notes to Financial Statements.
*SGVFS038907*
STATEMENTS OF COMPREHENSIVE INCOME
Years Ended December 31

2019 2018 2017
REVENUE (Note 13) =3,578,115,812

P =3,370,469,518
P =3,091,379,692
P
COST OF SERVICES AND SALES (Note 14) (2,047,013,933) (1,933,638,731) (1,728,929,964)
GROSS PROFIT 1,531,101,879 1,436,830,787 1,362,449,728

Operating expenses (Note 15) (853,298,061) (807,622,999) (745,139,167)
Other operating income - net (Note 16) 58,432,077 64,942,866 63,108,167
OPERATING INCOME 736,235,895 694,150,654 680,418,728

Interest income (Notes 4 and 5) 1,901,905 2,143,871 1,760,066
Finance costs (Note 17) (2,653,454) (3,798,293) (17,606,684)
INCOME BEFORE INCOME TAX 735,484,346 692,496,232 664,572,110
PROVISION FOR (BENEFIT FROM)

INCOME TAX (Note 20 )
Current 210,611,505 208,715,846 185,186,366
Deferred 9,848,391 (1,118,007) 14,164,204
220,459,896 207,597,839 199,350,570
NET INCOME 515,024,450 484,898,393 465,221,540
OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income to be reclassified to
profit or loss in subsequent periods
(Notes 9 and 12) − − 1,700,000
Other comprehensive income (loss) not to be
reclassified to profit or loss in subsequent
periods, net of applicable income taxes
(Notes 9, 12 and 19) (16,600,448) 21,493,730 (3,333,070)
(16,600,448) 21,493,730 (1,633,070)
TOTAL COMPREHENSIVE INCOME =498,424,002

P =506,392,123
P =463,588,470
P
BASIC/DILUTED EARNINGS PER SHARE

(Note 26) =0.2659
P =0.2504
P =0.2402
P
*SGVFS038907*
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
Other Comprehensive
Retained Income (Loss) -
Capital Stock Additional Earnings net of tax
(Note 12) Paid-in Capital (Note 12) (Notes 9, 12 and 19) Total
BALANCES AT DECEMBER 31, 2016 P
=1,932,243,847 P
=185,465,780 P
=1,407,361,651 (P
= 3,036,439) P
=3,522,034,839
Application of dividends against subscriptions receivable (Note 12) 333,347 − − − 333,347
Net income for the year − − 465,221,540 − 465,221,540
Other comprehensive loss (Notes 9, 12 and 19) − − − (1,633,070) (1,633,070)
Total comprehensive income (loss) − − 465,221,540 (1,633,070) 463,588,470
Total before dividend declaration 1,932,577,194 185,465,780 1,872,583,191 (4,669,509) 3,985,956,656
Cash dividends (Note 12) − − (145,254,629) − (145,254,629)
=1,932,577,194 P
=185,465,780 P
=1,727,328,562 (P
= 4,669,509) P
=3,840,702,027

=1,932,577,194 P
=185,465,780 P
=1,727,328,562 (P
= 4,669,509) P
=3,840,702,027
Other comprehensive income (Notes 9, 12 and 19) − − − 21,493,730 21,493,730
Total comprehensive income − − 484,898,393 21,493,730 506,392,123
Total before dividend declaration 1,933,085,816 185,465,780 2,212,226,955 16,824,221 4,347,602,772
=1,933,085,816 P
=185,465,780 P
=2,026,301,030 P
=16,824,221 P
=4,161,676,847

=1,933,085,816 P
=185,465,780 P
=2,026,301,030 P
=16,824,221 P
=4,161,676,847
Other comprehensive loss (Notes 9, 12 and 19) − − − (16,600,448) (16,600,448)
Total comprehensive income (loss) − − 515,024,450 (16,600,448) 498,424,002
Total before dividend declaration 1,933,624,405 185,465,780 2,541,325,480 223,773 4,660,639,438
=1,933,624,405 P
=185,465,780 P
=2,301,171,160 P
=223,773 P
=4,420,485,118
*SGVFS038907*
STATEMENTS OF CASH FLOWS
Years Ended December 31

2019 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax P
=735,484,346 =692,496,232
P =664,572,110
P
Adjustments for:
Depreciation and impairment loss (Notes 8 and 9) 353,717,756 309,553,670 285,358,785
Retirement benefit cost (Notes 18 and 19) 8,043,066 11,006,389 10,376,530
Interest expense (Notes 11, 17 and 19) 2,270,999 3,395,693 17,100,491
Amortization of software and licenses (Note 9) 7,685,351 6,443,552 5,553,338
Unrealized foreign exchange loss (gain) - net 1,624,283 (975,970) 1,727,580
Loss (gain) on disposal of property and equipment
(Notes 8 and 16) 930,109 1,838,681 (1,334,700)
Interest income (Notes 4 and 5) (1,901,905) (2,143,871) (1,760,066)
Provision (reversal of provision) for inventory
obsolescence (Note 6) (1,662,584) 16,109,787 8,137,663
Operating income before working capital
changes and provisions 1,106,191,421 1,037,724,163 989,731,731
Decrease (increase) in:
Receivables (52,145,839) 43,769,593 (77,746,534)
Inventories (39,452,983) 10,650,331 (34,872,519)
Other current assets (2,064,475) 3,599,271 (907,692)
Increase (decrease) in:
Accounts payable and other current liabilities 10,916,748 31,346,845 52,716,129
Due to a related party 811,840 7,120 (22,495)
Cash generated from operations 1,024,256,712 1,127,097,323 928,898,620
Interest received 1,901,905 2,143,871 1,760,066
Contribution to the retirement fund and benefits paid (Note 19) (15,369,813) (14,754,005) (13,928,564)
Income taxes paid, including creditable withholding tax (167,990,373) (195,715,159) (184,960,655)
Net cash from operating activities 842,798,431 918,772,030 731,769,467
CASH FLOWS USED IN INVESTING ACTIVITIES
Additions to:
Property and equipment (Notes 8 and 25) (560,321,020) (586,769,435) (356,970,265)
Software and licenses (Notes 9 and 25) (11,613,713) (12,564,060) (7,567,690)
Proceeds from disposal of property and equipment (Note 8) 95,215 301,075 113,124
Decrease (increase) in:
Advances to contractors 18,810,870 (29,449,355) 6,622,549
Other noncurrent assets 46,000 (255,000) (150,000)
Net cash used in investing activities (552,982,648) (628,736,775) (357,952,282)
CASH FLOWS USED IN FINANCING ACTIVITIES
Payments of:
Long-term debts (Note 11) − − (309,488,000)
Interest (Notes 11 and 25) − − (35,336,093)
Dividend (Notes 11 and 25) (239,615,731) (185,417,303) (144,921,283)
Cash used in financing activities (239,615,731) (185,417,303) (489,745,376)
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (2,030,648) 924,128 1,440,048
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 48,169,404 105,542,080 (114,488,143)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 337,734,440 232,192,360 346,680,503
CASH AND CASH EQUIVALENTS
AT END OF YEAR (Note 4) =385,903,844
P =337,734,440
P =232,192,360
P
*SGVFS038907*
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information and Authorization for Issuance of Financial Statements
Corporate Information
Asian Hospital, Inc. (AHI or the Company) is a stock corporation organized and registered with the
Philippine Securities and Exchange Commission (SEC) on December 12, 1994. Its primary purpose
is to operate and manage tertiary hospitals and other allied undertakings and services.
On December 6, 2011, the controlling interest in the Company was purchased by Metro Pacific
Investments Corporation (MPIC) from Bumrungrad International Limited (BIL). Correspondingly,
MPIC became the Company’s parent in 2011. Prior to December 6, 2011, the parent company was
BIL.
On April 19, 2012, a mandatory tender offer for the 43.50% stake held by the Company’s
non-controlling investors launched by MPIC was completed. Metro Pacific Hospital
Holdings, Inc. (MPHHI), a subsidiary of MPIC, and a non-controlling investor of AHI, exercised its
Right of First Refusal and purchased an additional 27.98% stake in the Company from other non-
controlling investors. This resulted to an increase in MPHHI’s ownership in AHI to 52.41% as of
April 19, 2012.
On May 20, 2014, MPHHI acquired from MPIC additional shares in AHI which resulted to an increase
in MPHHI’s ownership in AHI to 58.1% as of December 31, 2014. In addition, MPHHI also acquired
100% of the outstanding capital stock of Bumrungrad International Philippines, Inc. (BIPI) on
July 1, 2014. BIPI has legal and beneficial ownership in AHI of 27.5%. As at December 31, 2018,
MPHHI effectively owns 85.6% of AHI.
MPHHI is 85.6% owned by MPIC as at December 31, 2018.
On December 9, 2019, together with MPHHI, completed a series of transactions for the investment and
entry of Buhay Holdings (PH) Inc. (“Buhay PH”), a subsidiary of global investment firm KKR Asia
Limited (KKR), alongside GIC Private Ltd. (GIC), through Arran Investment Private Limited, in and
to, MPHHI. Separately, GIC has agreed to restructure its current investment in MPHHI and re-invest
alongside KKR in Buhay PH.
As at December 31, 2019, MPIC holds 530,663,048 of MPHHI’s common shares equivalent to 80.26%
of its total issued and outstanding common shares, Buhay PH holds 130,518,178 of MPHHI’s common
shares equivalent to 19.74% of its total issued and outstanding common shares. MPHHI also issued
850,000,000 preferred shares to MetroPac Apollo Holdings Inc. (“Apollo”), a Philippine registered
company, representing 100% of the total issued and outstanding preferred shares and 56.25% of total
issued and outstanding shares entitled to vote.
MPHHI is incorporated in the Philippines and its registered office address is 10th Floor, MGO Building,
Legaspi corner Dela Rosa Streets, Legaspi Village, Makati City.
The registered business address of the Company is 2205 Civic Drive, Filinvest Corporate City,
Alabang, Muntinlupa City.
*SGVFS038907*
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Authorization for Issuance of Financial Statements

The financial statements were authorized for issue by the Board of Directors (BOD) on
February 18, 2020.
2. Summary of Significant Accounting Policies and Financial Reporting Practices
Basis of Preparation
The accompanying financial statements have been prepared on a historical cost basis, except for
financial assets at fair value through other comprehensive income (FVOCI). The financial statements
are presented in Philippine Peso, which is the Company’s functional and presentation currency, and all
values are rounded to the nearest Peso except when otherwise indicated.
Statement of Compliance
The financial statements of the Company are prepared in accordance with Philippine Financial
Reporting Standards (PFRSs). The term PFRS includes all applicable PFRS, Philippine Accounting
Standards (PAS) and interpretations issued by the Philippine Interpretations Committee and
International Financial Reporting Interpretations Committee (IFRIC) which have been approved by the
Philippine Financial Reporting Standards Council (FRSC) and adopted by the Philippine SEC.
Changes in Accounting Policies and Disclosures

The accounting policies adopted are consistent with those of the previous financial year, except that the
Company has adopted the following new accounting pronouncements starting January 1, 2019. Except
as otherwise indicated, the adoption of these new accounting pronouncements and amendments did not
have any significant impact on the financial statements of the Company.
· PFRS 16, Leases
PFRS 16 supersedes PAS 17, Leases, Philippine Interpretation IFRIC 4, Determining whether an
Arrangement contains a Lease, Philippine Interpretation Standard Interpretations Committee (SIC)
15, Operating Leases-Incentives and Philippine Interpretation SIC-27, Evaluating the Substance of
Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to recognize
most leases on the balance sheet.
Lessor accounting under PFRS 16 is substantially unchanged from today’s accounting under
PAS 17. Lessors will continue to classify all leases using the same classification principle as in
PAS 17 and distinguish between two types of leases: operating and finance leases. Therefore,
PFRS 16 did not have an impact for leases where the Company is the lessor.
The Company elected to use transition practical expedient to not reassess whether a contract is, or
contains a lease at January 1, 2019. Instead, the Company applied PFRS 16 only to contracts that
were previously identified as leases. Upon adoption of PFRS 16, the Company availed the
recognition exemption for short-term leases and leases of low-value assets. Lease payments on
short-term leases and leases of low-value assets are recognized as expense on a straight-line basis
over the lease term.
· Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

· Amendments to PFRS 9, Prepayment Features with Negative Compensation
· Amendments to PAS 19, Employee Benefits, Plan Amendment, Curtailment or Settlement
· Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures
*SGVFS038907*
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· Annual Improvements to PFRSs 2015-2017 Cycle

o Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint Arrangements,
Previously Held Interest in a Joint Operation
o Amendments to PAS 12, Income Tax Consequences of Payments on Financial Instruments
Classified as Equity
o Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for Capitalization
Standards Issued but not yet Effective

Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the Company
does not expect that the future adoption of the said pronouncements will have a significant impact on
its financial statements. The Company intends to adopt the following pronouncements when they
become effective.
· Amendments to PFRS 3, Definition of a Business

· Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies,
Changes in Accounting Estimates and Errors, Definition of Material
· PFRS 17, Insurance Contracts
Deferred effectivity
· Amendments to PFRS 10, Consolidated Financial Statements and PAS 28, Sale or Contribution of
Assets between an Investor and its Associate or Joint Venture
Current versus Noncurrent Classification

The Company presents assets and liabilities in the statement of financial position based on whether it
is current and noncurrent classification.
An asset is current when it is:

· Expected to be realized or intended to be sold or consumed in normal operating cycle;
· Held primarily for the purpose of trading;
· Expected to be realized within twelve months after the reporting period; or
· Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as noncurrent.
A liability is current when:

· It is expected to be settled in normal operating cycle;
· It is held primarily for the purpose of trading;
· It is due to be settled within twelve months after the reporting period; or
· There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
The Company classifies all other liabilities as noncurrent.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities, respectively.
*SGVFS038907*
-4-
Fair Value Measurement

The Company measures financial instruments, such as financial asset at FVOCI at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
· In the principal market for the asset or liability, or

· In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level of input that
is significant to the fair value measurement as a whole:
· Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
· Level 2 - Valuation techniques for which the lowest level of input that is significant to the fair value
measurement is directly or indirectly observable
· Level 3 - Valuation techniques for which the lowest level of input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.
At each reporting date, management analyzes the movements in the values of assets and liabilities
which are required to be re-measured or re-assessed as per the Company’s accounting policies. For
this analysis, management verifies the major inputs applied in the latest valuation by agreeing the
information in the valuation computation to contracts and other relevant documents.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.
*SGVFS038907*
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Cash and Cash Equivalents

Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash with original maturities of three months or less
from date of acquisition and that are subject to an insignificant risk of change in value.
Financial Instruments: Financial Assets
Initial recognition and measurement

Financial assets are classified, at initial recognition, and subsequently measured at amortized cost,
FVOCI, and fair value through profit or loss (FVPL).
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them. With the exception
of trade receivables that do not contain significant financing component or for which the Company has
applied the practical expedient, the Company initially measures a financial asset at fair value plus, in
the case of a financial asset not at fair value through profit or loss, transaction costs.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to give
rise to cash flows representing solely payments of principal and interest (SPPI) on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Company’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognized on the trade date,
i.e., the date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
· Financial assets at amortized cost (debt instruments)
· Financial assets at FVOCI with recycling of cumulative gains and losses (debt instruments)
· Financial assets designated at FVOCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
· Financial assets at FVPL
As at December 31, 2019 and 2018, the Company has no financial assets at fair value through OCI with
recycling of cumulative gains and losses (debt instruments) and financial assets at FVPL.
Financial assets at amortized cost (debt instruments)

This category is most relevant to the Company. The Company measures financial assets at amortized
cost if both of the following conditions are met:
· The financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows, and
· The contractual terms of the financial asset give rise on specified dates to cash flows that are closely
payments of principal and interest on the principal amount outstanding.
*SGVFS038907*
-6-
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method
and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is
derecognized, modified or impaired.
As at December 31, 2019 and 2018, the Company’s financial assets at amortized cost includes cash in
bank and cash equivalents, receivables and refundable deposits included under “Other noncurrent
assets” in the statements of financial position (see Notes 4, 5 and 9).
Financial assets designated at FVOCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at FVOCI when they meet the definition of equity under PAS 32, Financial
Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized
as other income in profit or loss when the right of payment has been established, except when the
Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which
case, such gains are recorded in Other Comprehensive Income (OCI). Equity instruments designated
at FVOCI are not subject to impairment assessment.
The Company elected to classify irrevocably its equity investments under this category as the Company
considers these investments to be strategic in nature.
As at December 31, 2019 and 2018, the Company’s financial assets at FVOCI includes investment in
shares included under “Other noncurrent assets” in the statements of financial position (see Note 9).
Impairment of financial assets

The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not
held at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance
with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows
from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the 12 months (a 12-month ECL). For those credit exposures for
which there has been a significant increase in credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life of the exposure, irrespective of timing of the
default (a lifetime ECL).
For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the
Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime
ECLs at each reporting date. The Company has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to debtors and the
economic environment.
The Company considers a financial asset in default when contractual payments are past due. However,
in certain cases, the Company may also consider a financial asset to be in default when internal or
external information indicates that the Company is unlikely to receive the outstanding contractual cash
flows in full before taking into account any credit enhancements held by the Company. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
*SGVFS038907*
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Financial Instruments: Financial Liabilities
Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
The liabilities are recognized initially at fair value and are subsequently carried at amortized cost, taking
into account the impact of applying the effective interest method of amortization (or accretion) for any
related premium, discount and any directly attributable transaction costs.
Subsequent measurement - financial liabilities at amortized cost

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization
process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortization is included as finance costs under
the “Finance costs” in the statement of comprehensive income.
As of December 31, 2019 and 2018, the Company’s accounts payable and other current liabilities
(excluding statutory payables and contract liabilities) and due to a related party are classified under this
category.
Derecognition of financial assets and financial liabilities

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognized when:
· the right to receive cash flows from the asset has expired;
· the Company retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a ‘pass-through’ arrangement; or
· the Company has transferred its right to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its right to receive cash flows from a financial asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the
asset, the financial asset is recognized to the extent of the Company’s continuing involvement in the
financial asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay. Where continuing involvement takes the form of a written and/or
purchased option (including a cash-settled option or similar provision) on the transferred asset,
the extent of the Company’s continuing involvement is the amount of the transferred asset that the
Company may repurchase, except that in the case of a written put option (including a cash-settled option
or similar provision) on an asset measured at fair value, the extent of the Company’s continuing
involvement is limited to the lower of the fair value of the transferred asset and the option exercise
price.
*SGVFS038907*
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A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
has expired.
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability
and the difference in the respective carrying amounts is recognized in profit or loss.
Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously. The Company assesses that it has a currently enforceable right of offset if the right is
not contingent on a future event, and is legally enforceable in the normal course of business, event of
default, and event of insolvency or bankruptcy of the Company and all of the counterparties.
Inventories
Inventories are valued at the lower of cost and net realizable value (NRV). Cost is the purchase cost
determined using weighted average method for medicines and medical supplies. NRV of inventories
is the selling price in the ordinary course of business, less estimated costs necessary to make the sale.
Inventories are derecognized either when sold or written-off. When inventories are sold for operations,
the carrying amount of those inventories shall be recognized as an expense in the period in which the
related revenue is recognized.
Allowance is made, when necessary, for obsolete, slow-moving and defective inventories. The amount
of any write-down of inventories to NRV and all losses of inventories shall be recognized as an expense
in the period the write-down or loss occurs.
The amount of any reversal of any write-downs of inventories, arising from an increase in NRV, shall
be recognized as a reduction in the amount of inventories recognized as an expense in the period in
which the reversal occurs.
Other Current Assets

Other current assets include prepaid expenses, creditable withholding taxes and input value-added tax
(VAT). Other current assets are expenses paid in advance and recorded as asset before they are used or
consumed, as the service or benefit will be received in the future. Prepayments are recognized as
expenses either with the passage of time or through use or consumption.
The Company conducts regular assessment on the recoverability of the account balance depending on
how these are to be utilized. The amount of the loss is measured as the difference between the asset’s
carrying amount and estimated recoverable value. Impairment loss is recognized in the statement of
comprehensive income and the carrying amount of the asset through the use of an allowance.
Property and Equipment

Property and equipment, except land, are stated at cost less accumulated depreciation and any
impairment in value. Land is stated at cost less any impairment in value.
*SGVFS038907*
-9-
The initial cost of property and equipment consists of its purchase price, including import duties, taxes,
and any costs directly attributable in bringing the asset to its working condition and location for its
intended use. Expenditures incurred after the property and equipment have been put into operation,
such as repairs and maintenance costs, are recognized in profit or loss in the period the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an
increase in the future economic benefits expected to be obtained from the use of an item of property
and equipment beyond its originally assessed standard of performance, the expenditures are capitalized
as additional cost of the property and equipment.
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as
follows:
Number of Years
Buildings 40
Building equipment 15 to 25
Building improvements 5
Medical equipment and instruments 2 to 20
Hospital furniture, fixtures and equipment 3 to 20
Office furniture and equipment 5 to 20
Depreciation commences once the assets are available for use. It ceases at the earlier of the date that
it is classified as held for sale and the date the asset is derecognized.
The useful lives and depreciation method are reviewed periodically to ensure that the periods and
method of depreciation are consistent with the expected pattern of economic benefits from items of
property and equipment. When assets are sold or retired, the cost and the related accumulated
depreciation and any impairment in value are eliminated from the accounts. Any gain or loss resulting
from the disposal is recognized in profit or loss.
Construction in progress and equipment for installation are stated at cost less any impairment in value.
These include cost of construction, equipment, borrowing costs and other direct costs.
Construction in progress and equipment for installation are not depreciated until such time as the
relevant assets are completed and put into operational use.
Software and Licenses

Software and licenses, which are included under “Other noncurrent assets” in the statement of financial
position, are measured on initial recognition at cost. Following initial recognition, software and
licenses are carried at cost less accumulated amortization and any accumulated impairment losses.
Amortization is calculated using the straight-line method over its estimated useful life of five (5) years.
Investment Properties
Investment properties, pertaining to a condominium unit, included under “Other noncurrent assets” in
the statement of financial position, are measured initially at cost, including transaction costs.
Subsequent to initial recognition, it is stated at cost less accumulated depreciation and any impairment
in value.
*SGVFS038907*
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Transfers are made to investment property when, and only when, there is a change in use, evidenced
by ending of owner-occupation, commencement of an operating lease to another party or ending of
construction or development. Transfers are made from investment property when, and only when, there
is a change in use, evidenced by commencement of owner-occupation or commencement of
development with a view to sale.
Depreciation on the condominium unit is calculated using the straight-line method over the estimated
useful life of twenty-five (25) years.
Investment properties are derecognized when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its
disposal. Any gain or loss on the retirement or disposal of an investment property are recognized in
profit or loss in the year of retirement and disposal.
Impairment of Nonfinancial Assets

Property and equipment, software and licenses and investment properties are reviewed for impairment
whenever events or changes in circumstances indicate that testing is required for an asset, and where
the carrying values exceed the estimated recoverable amount. If any such indication exists, the assets
or cash-generating units are written down to their recoverable amount. The recoverable amount is the
greater of fair value less cost to sell or value-in-use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups
of assets.
In determining fair value less costs to sell, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators. For an
asset that does not generate largely independent cash inflows, the recoverable amount is determined for
the cash-generating unit to which the asset belongs. Impairment losses, if any, are recognized in profit
or loss.
Capital Stock
Capital stock is measured at par value for all shares issued. When the Company issues more than one
class of stock, a separate account is maintained for each class of stock and number of shares issued.
When the shares are sold at a premium, the difference between the proceeds and the par value is credited
to the “Additional paid-in capital” account. When shares are issued for a consideration other than cash,
the proceeds are measured by the fair value of the consideration received. In case the shares are issued
to extinguish or settle the liability of the Company, the shares shall be measured either at the fair value
of the shares issued or fair value of the liability settled, whichever is more reliably determinable.
Subscription receivable is presented in the statement of financial position as a deduction from the
related subscribed ordinary shares; however, when it is collectible within one year, this may be shown
as a current asset. It is debited for the total proceeds of the subscriptions to the ordinary shares and
credited for the collections on the subscriptions.
Retained Earnings
Retained earnings represent the cumulative balance of periodic net income or losses, dividend
distributions, prior period adjustments, effect of changes in accounting policies and other capital
adjustments. When the retained earnings account has a debit balance, it is called “deficit”. A deficit is
not an asset but a deduction from equity.
*SGVFS038907*
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Other Comprehensive Income (OCI)
OCI comprises items of income and expense that are not recognized in profit or loss for the year in
accordance with PFRS. OCI includes fair value changes financial asset at FVOCI and available-for-
sale (AFS) financial assets and remeasurement gains or losses on retirement benefits.
Revenue Recognition
Accounting Policy Starting January 1, 2018
Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at amount that reflects the consideration to which the Company expects to
be entitled in exchange for those goods and services. The Company has generally concluded that it is
principal in its revenue arrangements because it typically controls the goods and services before
transferring them to the customer.
Patient service revenue

Patient service revenue qualifies for revenue recognition over time under paragraph 35(a) of PFRS 15
because the patient simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs. The Company elects to use the right to invoice practical
expedient in recognizing revenue because the Company has a right to consideration from the patient in
an amount that corresponds directly with the value to the patient of the Company’s performance
completed to date. Payment is due once the Company satisfies its performance obligation except for
certain corporate customers which are allowed to settle the payment within 30-90 days
Pharmacy sales
The Company assessed pharmacy sales to be either combined as one performance obligation with the
healthcare services if the medicines are part of a series of distinct goods and services which cannot be
separately identified or as a separate performance obligation if the patient can benefit solely from the
goods, are readily available to the patient and separately identifiable from other goods and services of
the Company. In the former case, pharmacy sales shall have the same measure of progress as the
inpatient service revenue (i.e. over time) while in the latter, revenue shall be recognized as these are
sold outright (i.e. point in time).
In determining the transaction price for the sale of healthcare services and goods, the Company
considers the effects of any variable consideration such as discounts, rebates and implicit price
concession. The variable consideration is estimated at contract inception and constrained until it is
highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will
not occur when the associated uncertainty with the variable consideration is subsequently resolved.
Contract Balances
Trade receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due).
*SGVFS038907*
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Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the
customer. If the Company performs by transferring goods or services to a customer before the customer
pays the consideration or before payment is due, a contract asset is recognized for the earned
consideration that is conditional.
The Company has no contract assets and has no outstanding performance obligations as at
December 31, 2019 and 2018.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If the customer
pays consideration before the Company transfers goods or services to the customer, a contract liability
is recognized when the payment is made or the payment is due (whichever is earlier). Contract
liabilities are recognized as revenue when the Company performs under the contract.
As at December 31, 2019 and 2018, the Company reported contract liabilities pertaining to advances
received from patients for medical services that has yet to be performed. This can be redeemed by the
patients in a future time through rendering of services and was presented as part of “Accounts payable
and other current liabilities” on the statements of financial position (see Notes 10 and 13).
Accounting Policies Prior to January 1, 2018

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the amount of revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received. The Company assesses its revenue arrangements against specific criteria
in order to determine if it is acting as principal or agent. The Company has concluded that it is acting
as a principal in all of its revenue arrangements. The following specific recognition criteria must also
be met before revenue is recognized:
Patient service revenue

Revenue from patient services is recognized when services are rendered.
Pharmacy sales
Revenue from pharmacy sales is recognized when medicines are charged to patients.
Discounts
Discounts pertain to patient discounts and package deal discounts. These also include senior citizen
discount which is computed as 20% of the “medically necessary” care levels for the diagnosis and/or
treatment of an illness or injury for senior citizen patients. Discounts are a contra revenue account and
recognized when revenue is earned.
Accounting Policies Applicable to All Periods Presented
Interest income
Revenue is recognized as the interest accrues considering the effective yield of the assets.
Rent income
Revenue under operating lease agreements is recognized on a straight-line basis over the lease term.
*SGVFS038907*
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VAT
Revenues, expenses, and assets are recognized net of the amount of VAT, if applicable.
When VAT from sales of goods and/or services (output VAT) exceeds VAT passed on from purchases
of goods or services (input VAT), the excess is recognized as payable in the statement of financial
position. When VAT passed on from purchases of goods or services (input VAT) exceeds VAT from
sales of goods and/or services (output VAT), the excess is recognized as an asset in the statement of
financial position to the extent of the recoverable amount.
Cost and Expense Recognition

Costs and expenses are recognized in profit or loss in the year they are incurred. The following specific
costs and expense recognition criteria must also be met before costs and expenses are recognized:
Cost of services
Costs are generally recognized when the services are rendered and when the supplies necessary in
rendering healthcare services to patients are used.
Cost of sales - pharmacy

Cost of sales is recorded in the books when the medicines are administered to patients.
Operating expenses
Operating expenses constitute the costs of administering the business and are expensed as incurred.
These expenses pertain to personnel costs, supplies expenses, utilities expense and other expenses
incurred by the general and administrative departments of the Company.
Retirement Benefits Cost and Other Employee Benefits

The net accrued retirement benefits liability or asset is the aggregate of the present value of the defined
benefit obligation at the end of the reporting period reduced by the fair value of plan assets (if any),
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling is
the present value of any economic benefits available in the form of refunds from the plan or reductions
in future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
Retirement benefits costs comprise the following:

- Service cost
- Net interest on the net defined benefit liability
- Remeasurements of net defined benefit liability
Service costs which include current service costs, past service costs and gains or losses on non-routine
settlements are recognized as expense in profit or loss. Past service costs are recognized when plan
amendment or curtailment occurs. These amounts are calculated periodically by independent qualified
actuaries.
Net interest on the net accrued retirement benefits liability is the change during the period in the net
accrued retirement benefits liability that arises from the passage of time which is determined by
applying the discount rate based on government bonds to the net defined benefit liability or asset.
*SGVFS038907*
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Net interest on the net accrued retirement benefits liability recognized as expense or income in profit
or loss and is presented under “Finance costs” in the statement of comprehensive income.
Remeasurements comprising actuarial gains and losses and return on plan assets (excluding net interest
on accrued retirement benefits liability) are recognized immediately in OCI in the period in which they
arise. Remeasurements are not reclassified to profit or loss in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Company, nor can they be paid directly to
the Company. Fair value of plan assets is based on market price information. When no market price
is available, the fair value of plan assets is estimated by discounting expected future cash flows using
a discount rate that reflects both the risk associated with the plan assets and the maturity or expected
disposal date of those assets (or, if they have no maturity, the expected period until the settlement of
the related obligations). If the fair value of the plan assets is higher than the present value of the defined
benefit obligation, the measurement of the resulting defined benefit asset is limited to the present value
of economic benefits available in the form of refunds from the plan or reductions in future contributions
to the plan.
The Company’s right to be reimbursed of some or all of the expenditure required to settle a defined
benefit obligation is recognized as a separate asset at fair value when and only when reimbursement is
virtually certain.
Termination benefit
Termination benefits are employee benefits provided in exchange for the termination of an employee’s
employment as a result of either the Company’s decision to terminate an employee’s employment
before the normal retirement date or an employee’s decision to accept an offer of benefits in exchange
for the termination of employment.
A liability and expense for a termination benefit is recognized at the earlier of when the entity can no
longer withdraw the offer of those benefits and when the entity recognizes related restructuring costs.
Initial recognition and subsequent changes to termination benefits are measured in accordance with the
nature of the employee benefit, as either post-employment benefits, short-term employee benefits, or
other long-term employee benefits.
Employee leave entitlement

Employee entitlements to annual leave are recognized as a liability when they accrue to the employees.
The undiscounted liability for leave expected to be settled wholly before twelve months after the end
of the annual reporting period is recognized for services rendered by employees up to the end of the
reporting period.
Leases
Leases (Starting January 1, 2019)

A lease arrangement is established by a contract (the lease) that conveys to the user (the lessee) the
right to control the use of an identified asset for a period of time in exchange for consideration. A
portion of an asset is an identified asset if it is physically distinct. If it is not physically distinct, the
portion of an asset is not an identified asset, unless the lessee has the right to use substantially all of the
capacity of the asset during the lease term.
If a contract contains more than one lease component, or a combination of leasing and selling
transactions, the consideration is allocated to each of the lease and non-lease components on conclusion
and on each subsequent measurement of the contract on the basis of their stand-alone selling prices.
*SGVFS038907*
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The Company as lessee

The Company has certain leases of machineries, office equipment, and parking lots and spaces of land.
Generally, the leases have lease terms of one year or less and are renewable under certain terms and
conditions to be mutually agreed upon by the parties. The Company applies the “short-term lease” and
“lease of low-value assets” recognition exemptions for these leases. Lease payments on short-term
leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease
term.
Leases (Prior to January 1, 2019)

The determination of whether an arrangement is, or contains a lease is based on the substance of the
arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset. A reassessment
is made after inception of the lease, only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or an extension of the arrangement;
(b) a renewal option is exercised or an extension is granted, unless that term of renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset; or
(d) there is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the assessment for scenarios (a), (c) or (d) above, and at the date
of renewal or extension period for scenario (b).
The Company as lessee

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the profit or
loss on a straight-line basis over the lease term.
Leases - Applicable to all periods presented
The Company as lessor

Leases where the Company retains substantially all the risks and benefits of ownership of the assets are
classified as operating leases. Rental income under operating leases is accounted for in accordance
with the terms of the leases and generally on a straight-line basis and is included under “Other operating
income” in the statement of comprehensive income.
Income Taxes
Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that have been enacted or substantively enacted as of the reporting
date.
Deferred income tax

Deferred income tax assets are provided, using the balance sheet liability method, on all temporary
differences at the reporting date between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
*SGVFS038907*
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Deferred income tax liabilities are recognized for all taxable temporary differences. Deferred income
tax assets are recognized for all deductible temporary differences to the extent that it is probable that
sufficient future taxable profits will be available against which the deductible temporary difference can
be utilized.
Deferred income tax, however, is not recognized when it arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable income or loss.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient future taxable profits will be available to allow all
or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are
reassessed at each reporting date and are recognized to the extent that it has become probable that
sufficient future taxable profits will allow the deferred income tax asset to be recovered.
Deferred income tax relating to items recognized outside profit or loss is recognized in correlation to
the underlying transaction either in OCI or directly in equity.
Deferred income tax assets and deferred income tax liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realized or the liability is settled, based on tax rates
and tax laws that have been enacted or substantively enacted at the reporting date.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right
exists to offset current income tax assets against current income tax liabilities and the deferred income
tax relates to the same entity and the same taxation authority.
Foreign Currency-denominated Transactions and Translations
The functional currency of the Company is the Philippine Peso. Transactions denominated in foreign
currencies are recorded in Peso using the applicable exchange rate at the date of the transaction.
Outstanding monetary assets and monetary liabilities denominated in foreign currencies are restated
using the applicable closing exchange rate at the reporting date. Foreign exchange gains or losses are
recognized in profit or loss.
Provisions and Contingencies
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The expense
relating to any provision is presented in profit or loss, net of any reimbursement. If the effect of the
time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision
due to the passage of time is recognized as an interest expense.
Contingent liabilities are not recognized in the financial statements but are disclosed unless the
possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are
not recognized in the financial statements but are disclosed when an inflow of economic benefits is
probable. Contingent assets are assessed continually to ensure that developments are appropriately
reflected in the financial statements. If it has become virtually certain that inflow of economic benefits
will arise, the asset and the related income are recognized in the financial statements.
*SGVFS038907*
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Events After the Reporting Date

Events after the reporting date that provide additional information about the Company’s position at the
reporting date (adjusting event), if any, are reflected in the financial statements. Events after the
reporting date that are not adjusting events, if any, are disclosed in the notes to financial statements
when material.
Earnings per Share (EPS)
Basic earnings per share is computed by dividing net income by the weighted average number of shares
outstanding during the year, after giving retroactive effect to any stock split and stock dividends
declared during the year.
The Company does not have potentially dilutive shares.
3. Management’s Use of Significant Judgments, Accounting Estimates and Assumptions
The preparation of the financial statements in accordance with PFRS requires management to exercise
judgments, make accounting estimates and use assumptions that affect the amounts reported in the
financial statements and accompanying notes. The judgments, estimates and assumptions used in the
financial statements are based upon management’s evaluation of relevant facts and circumstances as of
the date of the financial statements. Future events may occur which can cause the assumptions used in
arriving at those judgments and estimates to change. The effects of any changes will be reflected in the
financial statements as they become reasonably determinable.
Judgments
In the process of applying the Company’s accounting policies, management has made the following
judgments, apart from those involving estimations, which have the most significant effects on amounts
recognized in the financial statements:
Determination of whether the Company is acting as principal or agent
The Company assesses its revenue arrangements against specific criteria in order to determine if it is
acting as principal or agent. The Company has concluded that it is acting as principal on all of its
revenue arrangements because the Company is the primary obligor who is responsible for providing
the services to the patients and the Company bears the credit risk. The Company presents its revenues
from pharmacy and hospital services, net of applicable discounts.
Operating lease commitments
The Company as lessee (Starting January 1, 2019)
Lease liabilities
At the commencement date of the lease, the Company recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in substance fixed payments) less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise price of a purchase option reasonably certain
to be exercised by the Company and payments of penalties for terminating a lease, if the lease term
reflects the Company exercising the option to terminate. The variable lease payments that do not depend
on an index or a rate are recognized as expense in the period on which the event or condition that
triggers the payment occurs.
In calculating the present value of lease payments, the Company uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit in the lease is not readily determinable.
*SGVFS038907*
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After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of equipment.
It also applies the leases of low-value assets recognition exemption to leases of office equipment that
are considered of low value (i.e., below =
P0.3 million). Lease payments on short-term leases and leases
of low-value assets are recognized as expense on a straight-line basis over the lease term.
The Company as lessee (Prior to January 1, 2019)

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating leases are recognized as expense in profit or loss on a straight-
line basis over the lease term.
The Company as lessor (Applicable to all periods presented)
The Company has entered into commercial property leases on its investment property and
concessionaire agreements with various business entities on certain areas of its building. The Company
has determined that it retains all the significant risks and rewards of ownership of its investment
property and certain areas of its building which are leased out on operating leases. Contingent rents
are recognized as income in the period in which they are earned.
Accounting Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainties at the
reporting date that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are as follows:
Estimation of the fair value of financial assets and financial liabilities
The Company carries certain financial assets and financial liabilities at fair value, which requires
extensive use of accounting estimates and judgment. While significant components of fair value
measurement were determined using verifiable objective evidence (i.e., foreign exchange rates, interest
rates, volatility rates), the amount of changes in fair value would differ if the Company utilized a
different valuation methodology. Any change in fair value of these financial assets and financial
liabilities would affect the profit or loss and other comprehensive income of the Company.
As at December 31, 2019, and 2018, financial assets recognized in the statements of financial position
amounted to =P674.7 million and =
P573.6 million, respectively, while financial liabilities amounted to
=576.7 million and P
P =558.8 million, respectively (see Note 22).
Provision for expected credit losses (ECL) of trade receivables (PFRS 9 – Starting January 1, 2018)
The Company uses a provision matrix to calculate ECLs for trade receivables. The provision rates are
based on days past due for groupings of various customer segments that have similar loss patterns. The
provision matrix is initially based on the Company’s historical observed default rates. The Company
calibrates the matrix to adjust the historical credit loss experience with forward-looking information.
At every reporting date, the historical observed default rates are updated and changes in forward-
looking estimates are analyzed.
The assessment of the correlation between observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of
forecast economic conditions. The Company’s historical credit loss experience and forecast of
economic conditions may also not be representative of the customer’s actual default in the future.
*SGVFS038907*
- 19 -
In its ECL model, the Company relies on a broad range of forward looking information as economic
inputs such as gross domestic product and inflation. The inputs and models used for calculating ECLs
may not always capture all characteristics of the market at the date of the financial statements. To
reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when
such differences are significantly material.
Provision for ECL amounted to = P19.2 million and =P36.5 million in 2019 and 2018, respectively
(see Note 15). Receivables, net of allowance for ECL, amounted to =
P273.5 million and =
P220.9 million
as at December 31, 2019 and 2018, respectively (see Note 5).
Estimation of allowance for doubtful accounts (PAS 39 – Prior to January 1, 2018)

The Company maintains allowances for doubtful accounts at a level considered adequate to provide for
potential uncollectible receivables. The Company reviews the age and status of receivables, designed
to identify accounts with objective evidence of impairment, and provide the appropriate allowance for
impairment. Management evaluates on the basis of factors that affect the collectibility of the accounts.
These factors include, but are not limited to, the length of the Company’s relationship with the
customer, the customer’s payment behavior and known market factors.
Provision for doubtful accounts amounted to P
=15.5 million in 2017 (see Note 15).
Estimation of allowance for inventory losses

Provisions are made for expired and slow-moving medicines and medical supplies pending disposal.
Medicines and medical supplies, net of allowance for inventory losses, amounted to P
=167.8 million and
=126.7 million as at December 31, 2019 and 2018, respectively. Inventory write-off amounted to
P
=4.6 million and =
P P5.1 million as at December 31, 2019 and 2018, respectively (see Note 6).
Recovery from provision on inventory obsolescence included in “Others” under “Cost of Sales and
Services” amounted to = P1.7 million in 2019 and provision for inventory obsolescence included in
“Others” under “Cost of Sales and Services” amounted to =
P16.1 million and =
P8.1 million in 2018 and
2017, respectively (see Notes 6 and 14).
Estimation of impairment of property and equipment, investment properties, and software and licenses
The Company assesses the impairment of property and equipment and investment properties whenever
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is
recognized. The recoverable amount is the higher of an asset’s net selling price and value-in-use.
The net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction
while value-in-use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are
estimated for individual assets or, if it is not possible, for the cash-generating unit to which the asset
belongs.
No impairment losses was recognized on property and equipment, investment properties, and software
and licenses in 2019, 2018 and 2017 (see Notes 8 and 9). Accumulated impairment losses on property
and equipment amounted to P =1.3 million as at December 31, 2019 and 2018 (see Note 8).
*SGVFS038907*
- 20 -
As at December 31, 2019, the carrying values of property and equipment, investment properties, and
software and licenses amounted to P
=4,163.5 million, P
=2.7 million and P
=16.2 million, respectively, while
its carrying value as at December 31, 2018 amounted to P =3,963.7 million, P =2.8 million and
=11.3 million, respectively (see Notes 8 and 9).
P
Recognition of deferred income tax assets

The Company reviews the carrying amounts of deferred income taxes at each reporting date and reduces
deferred income tax assets to the extent that it is no longer probable that sufficient future taxable profits
will be available to allow all or part of the deferred income tax assets to be utilized.
Management recognized deferred income tax assets amounting to =

P99.2 million and =P102.0 million as
at December 31, 2019 and 2018, respectively, because management expects to realize their benefits in
the future (see Note 20).
Estimation of retirement benefits cost

The cost of defined benefit pension plans as well as the present value of the pension obligation are
determined using actuarial valuations. The actuarial valuation involves making various assumptions.
These include the determination of the discount rates, future salary increases, mortality rates and future
pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-
term nature, accrued retirement benefits liability are highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.
In determining the appropriate discount rate, management considers the interest rates of government
bonds that are denominated in the currency in which the benefits will be paid, with extrapolated
maturities corresponding to the expected duration of the defined benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific country and is modified
accordingly with estimates of mortality improvements. Future salary increases and pension increases
are based on expected future inflation rates for the specific country.
Net retirement benefit cost recognized in profit or loss amounted to = P8.0 million, P
=11.0 million and
=10.4 million in 2019, 2018 and 2017, respectively, while net interest expense from retirement benefit
P
cost amount to = P2.3 million, =
P3.4 million and = P3.1 million in 2019, 2018 and 2017, respectively
(see Notes 18 and 19). Actuarial loss on accrued retirement benefits liability net of tax recognized in
OCI amounted to P =17.0 million and ₱3.3 million in 2019 and 2017, respectively. Actuarial gain on
accrued retirement benefits liability net of tax recognized in OCI amounted to ₱20.1 million in 2018
(see Note 19). As at December 31, 2019 and 2018, accrued retirement benefits liability amounted to
=52.5 million and =
P P33.3 million, respectively (see Note 19).
Contingencies
The Company is a party in various lawsuits, the outcome of which is presently undeterminable.
All such cases are in the normal course of business and are not deemed to be considered as material
legal proceedings. Further, these cases are either pending in courts or under protest, the outcome of
which are not presently determinable. Management and its legal counsel believe that the liability, if
any, that may result from the outcome of these litigations and claims will not materially affect their
financial position or performance.
*SGVFS038907*
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4. Cash and Cash Equivalents
2019 2018
Cash on hand and in banks P
=355,903,844 =337,734,440
P
Time deposit 30,000,000 –
P
=385,903,844 =337,734,440
P
Cash and cash equivalents include cash in banks and temporary placements that are made for varying
periods up to three months depending on the immediate cash requirements of the Company. Cash in
banks earn interest at the prevailing bank rates.
Interest income earned from cash and cash equivalents amounted to =

P1.8 million, =
P2.0 million and
P1.6 million in 2019, 2018 and 2017, respectively.
=
5. Receivables
2019 2018
Trade:
Health maintenance organizations (HMO) P
=95,023,200 =58,180,056
P
Philippine Health Insurance Corporation
(PhilHealth) 91,348,137 65,730,284
Corporate accounts 51,673,480 31,701,971
International insurance 34,513,358 45,603,091
Self-pay 29,256,378 50,184,316
Others 43,165,522 38,383,623
Nontrade:
Others 25,888,762 30,267,535
370,868,837 320,050,876
Less allowance for ECL 97,386,702 99,120,945
P
=273,482,135 =220,929,931
P
Movements in the allowance for ECL follow:
2019 2018
Beginning balances P
=99,120,945 =72,261,792
P
Provision for ECL (Note 15) 19,185,493 36,541,421
Write off (20,919,736) (9,682,268)
Ending balances P
=97,386,702 =99,120,945
P
The Company’s outstanding trade receivables from related parties are =

P18.7 million and =
P13.4 million
as at December 31, 2019 and 2018, respectively (see Note 23).
Interest income earned from late payment charges totaled P

=0.1 million in 2019 and 2018, and
=0.2 million in 2017.
P
Accounts provided with allowance were evaluated on a continuous basis and specifically identified by
management on the basis of factors that affect the collectability of each account.
*SGVFS038907*
- 22 -
6. Inventories
2019 2018
At Cost:
Medicines P
=71,286,514 =60,841,786
P
Medical supplies 110,081,252 85,633,977
181,367,766 146,475,763
Less allowance for inventory obsolescence 13,562,132 19,785,696
P
=167,805,634 =126,690,067
P
The cost of medicines and medical supplies carried at net realizable value amounted to P
=13.6 million
and P=19.8 million as at December 31, 2019 and 2018, respectively. All inventories carried at net
realizable value were fully provided with allowance.
Movements in the allowance for inventory obsolescence accounts follow:
2019 2018
Beginning balance P
=19,785,696 =8,732,518
P
Provision (reversal of provision) for inventory
obsolescence (Note 14)* (1,662,584) 16,109,787
Write off (4,560,980) (5,056,609)
P
=13,562,132 =19,785,696
P
*Presented as “Others - net” under “Cost of Services and Sales”.
7. Other Current Assets
2019 2018
Prepaid expenses P
=16,234,561 =12,127,837
P
Creditable withholding tax (CWT) 9,740,018 11,374,523
Input VAT 931,383 1,339,127
P
=26,905,962 =24,841,487
P
Prepaid expenses mainly pertain to advance payments for subscription, insurance and supplies.
CWT represents amount withheld by counterparty for services rendered by the Company which can be
claimed as tax credits.
Input VAT pertains to VAT imposed on purchases of services. These are expected to be offset against
output VAT arising from the Company’s revenue/income subject to VAT in the future.
*SGVFS038907*
- 23 -
8. Property and Equipment
As at December 31, 2019:

Medical Hospital Construction in
Equipment Furniture, Office Progress and
Building Building and Fixtures and Furniture and Equipment for
Land Buildings Equipment Improvements Instruments Equipment Equipment Installation Total
Cost
Beginning balances = 506,088,432
P = 2,675,805,232
P = 1,077,397,752
P = 246,598,250
P = 1,983,673,693
P = 381,499,278
P = 81,145,805
P = 223,957,068
P = 7,176,165,510
P
Additions − 41,694,175 19,809,591 6,816,863 114,287,624 48,203,103 14,660,362 309,071,613 554,543,331
Reclassifications − 335,225,425 24,954,145 – 96,515,000 1,882,932 340,693 (458,918,195) −
Disposals − − − − (53,920,773) (3,490,684) (198,277) – (57,609,734)
Ending balances 506,088,432 3,052,724,832 1,122,161,488 253,415,113 2,140,555,544 428,094,629 95,948,583 74,110,486 7,673,099,107
Accumulated Depreciation
Beginning balances − 724,833,725 500,382,924 234,862,820 1,409,588,416 273,854,434 67,615,117 − 3,211,137,436
Depreciation (Notes 14 and 15) − 76,228,886 47,299,001 4,733,963 182,639,725 35,424,329 7,226,899 − 353,552,803
Disposals − − − − (52,732,913) (3,427,167) (174,330) − (56,334,410)
Ending balances − 801,062,611 547,681,925 239,596,783 1,539,495,228 305,851,596 74,667,686 − 3,508,355,829
Accumulated Impairment
Losses − − − − 866,303 41,312 375,759 − 1,283,374
Net Book Value = 506,088,432
P = 2,251,662,221
P = 574,479,563
P = 13,818,330
P = 600,194,013
P = 122,201,721
P = 20,905,138
P = 74,110,486
P = 4,163,459,904
P
As at December 31, 2018:

Medical Hospital Construction in
Equipment Furniture, Office Progress and
Building Building and Fixtures and Furniture and Equipment for
Land Buildings Equipment Improvements Instruments Equipment Equipment Installation Total
Cost
Beginning balances =506,088,432
P =2,584,177,516
P =1,060,134,844
P =243,575,250
P =1,793,345,274
P =347,584,931
P =78,484,762
P P81,451,299
= =6,694,842,308
P
Additions – 4,329,561 26,219,706 3,023,000 219,827,364 39,243,894 3,149,471 237,803,924 533,596,920
Reclassifications – 87,298,155 – – 8,000,000 – – (95,298,155) –
Disposals – – (8,956,798) – (37,498,945) (5,329,547) (488,428) – (52,273,718)
Ending balances 506,088,432 2,675,805,232 1,077,397,752 246,598,250 1,983,673,693 381,499,278 81,145,805 223,957,068 7,176,165,510
Beginning balances – 659,017,251 462,659,813 230,490,820 1,287,642,462 248,688,218 62,959,120 – 2,951,457,684
Depreciation (Notes 14 and 15) – 65,816,474 44,763,420 4,372,000 158,894,656 30,470,805 5,071,362 – 309,388,717
Disposals – – (7,040,309) – (36,948,702) (5,304,589) (415,365) – (49,708,965)
Ending balances – 724,833,725 500,382,924 234,862,820 1,409,588,416 273,854,434 67,615,117 – 3,211,137,436
Accumulated Impairment
Losses – – – – 866,303 41,312 375,759 – 1,283,374
Net Book Value =506,088,432
P =1,950,971,507
P =577,014,828
P =11,735,430
P =573,218,974
P =107,603,532
P =13,154,929
P =223,957,068
P =3,963,744,700
P
*SGVFS038907*
- 24 -
The cost of fully depreciated property and equipment that are still being used in operations amounted
to =
P1,204.6 million and =
P1,169.4 million as at December 31, 2019 and 2018, respectively.
The Company disposed some items of property and equipment in 2019, 2018 and 2017. Transactions
are as follows:
2019 2018 2017

Proceeds P
=95,215 =301,075
P P113,124
=
Add: Trade-in value 250,000 424,997 1,400,003
Less: Net book value (1,275,324) (2,564,753) (178,427)
Gain (loss) on disposal (P
=930,109) (P
=1,838,681) =1,334,700
P
Trade-in value received by the Company upon sale of property and equipment was included as part of
the additions in property and equipment.
9. Other Noncurrent Assets
2019 2018
Software and licenses P
=16,240,984 =11,346,233
P
Advances to contractors 13,018,248 31,829,118
Financial assets at FVOCI 8,568,000 8,168,000
Refundable deposits 6,712,970 6,758,970
Investment properties 2,666,728 2,831,681
P
=47,206,930 =60,934,002
P
a. Software and licenses as at December 31 follow:
2019 2018
Cost
Beginning balance P
=137,225,773 =124,852,992
P
Additions 12,580,102 12,372,781
Ending balance 149,805,875 137,225,773
Accumulated Amortization
Beginning balance 125,879,540 119,435,988
Amortization (Notes 14 and 15) 7,685,351 6,443,552
Ending balance 133,564,891 125,879,540
Net Book Value P
=16,240,984 =11,346,233
P
b. In 2019, the Company reclassified to noncurrent assets the advances to contractors previously
classified as “Other current assets” in 2018 statement of financial position. The Company assessed
that the advances to contractors are determined to be noncurrent since it will be applied as payment
for assets to be classified as property and equipment. The change in the presentation does not have
an impact in the Company’s statements of comprehensive income, cash flows and equity.
c. Movement in the carrying values of financial assets at FVOCI as at December 31 are as follows:
2019 2018
Beginning balance P
=8,168,000 =6,768,000
P
Unrealized gain on changes in fair value 400,000 1,400,000
Ending balance P
=8,568,000 =8,168,000
P
*SGVFS038907*
- 25 -
Movement in the unrealized gain on fair value changes of financial assets at FVOCI as at December
31 are as follows:
2019 2018
Beginning balance P
=5,535,000 =4,135,000
P
Unrealized gain on changes in fair value 400,000 1,400,000
Ending balance P
=5,935,000 =5,535,000
P
d. As at December 31, 2019, and 2018, refundable deposits consist of Meralco deposit equivalent to
an estimated one month billing and a meter deposit made in 2001 for the installation of electricity
lines in the Hospital buildings.
e. Investment property consist of a condominium unit as at December 31:
2019 2018
Cost P
=4,123,808 =4,123,808
P
Beginning balance 1,292,127 1,127,174
Depreciation (Note 15) 164,953 164,953
Ending balance 1,457,080 1,292,127
Net Book Value P
=2,666,728 =2,831,681
P
The fair value of the investment property cannot be determined as there is no recent market
transaction for these investments. No impairment loss was recognized on investment property in
2019, 2018 and 2017.
There are no direct operating expenses including repairs and maintenance arising from investment
property that generated rental income in 2019, 2018 and 2017.
10. Accounts Payable and Other Current Liabilities
2019 2018
Trade accounts payable P
=368,040,761 =334,580,927
P
Accrued expenses 127,695,427 151,606,481
Retention payable 30,591,029 29,605,885
Physician fees 23,945,931 4,507,893
Statutory payables 21,309,452 21,660,540
Refund payable 10,407,313 24,546,703
Contract liabilities (Note 13) 1,534,762 12,371,226
Others 8,656,388 7,445,960
P
=592,181,063 =586,325,615
P
a. Trade payables include unpaid billings of creditors, suppliers and contractors. The trade suppliers
generally provide 7, 15 or 30-day terms to the Company. Prompt payment discounts of 1%, 1.25%,
1.5%, 2% and 5% are given by a number of trade suppliers.
Related party balances included in “Trade accounts payable” and “Accrued expenses” amounted
to =
P21.5 million and =
P12.4 million as at December 31, 2019 and 2018, respectively (see Note 23).
*SGVFS038907*
- 26 -
b. Accrued expenses include accruals for various expenses used in the operations of the Company.
Details of accrued expenses as at December 31 are as follows.
2019 2018
Outside services P
=33,000,388 =36,895,229
P
Cost of medical supplies 21,575,147 20,884,431
Professional fees 17,790,564 17,462,947
Personnel 15,014,316 17,142,390
Utilities 11,615,565 13,320,212
Rebate 3,219,317 5,264,926
Maintenance 2,898,128 21,151,621
Others 22,582,002 19,484,725
P
=127,695,427 =151,606,481
P
c. Retention payable pertains to the 10% of progress billings related to the construction of the fit-outs
to be paid upon satisfactory completion of the construction.
d. Physician fees pertain to professional fees, payable to its physicians and being remitted upon
collection of the related receivables from patients. The Company is a party under a ‘pass-through’
arrangement wherein it acts as a collecting agent from patients and remits professional fees to its
physicians upon collection of the related receivables.
e. Statutory payables pertain to VAT payable, expanded withholding taxes payable, withholding taxes
payable on compensation, and contributions to Social Security System, PhilHealth and Pag-IBIG.
f. Refund payable pertains to payments received by the Company in excess of the final invoice
amount.
g. Contract liabilities pertain to advances received from patients for medical services that has yet to
be performed which can be redeemed by the patient in a future time through rendering of services
(see Note 13).
h. Others represent advances from employees and other officers, cooperative dues, and charities fund,
among others.
11. Long-term Debts

International Finance Corporation (IFC) and Deutsche Investitionsund
Entwicklungsgeselleschaft mbH (DEG) Local Currency Loans
On February 8, 2008, the Company entered into local currency loan agreements with IFC and DEG in
the maximum disbursement amount of = P1,260.0 million and P=595.0 million, respectively. The
proceeds of these loans were used in the refinancing of the Company’s long-term debts and the
expansion of the Company’s hospital facilities.
*SGVFS038907*
- 27 -
The following acts were completed on February 8, 2008 in relation to the loan agreements with IFC
and DEG:
· Execution of a second supplemental agreement to the Equipment Mortgage Trust Indenture to

establish a mortgage and security interest in favor of IFC and DEG over the assets of the Company
to secure the loans;
· Execution of a Second Supplemental Agreement to the Restructured Loan Agreement between the
Company and IFC to ensure consistency of the IFC loan entered in 2008 with the restructured loan
agreement; and
· Execution of a Share Retention Agreement among the Company, BIL, BIPI, MPHHI and IFC and
DEG, wherein so long as AHI’s loans payable are not paid in full:
a. BIL will continue to maintain a certain percentage of direct or indirect ownership in MPHHI
and BIPI; and,
b. MPHHI and BIPI will continue to maintain a certain percentage of their direct or indirect
ownership in AHI.
In addition, the Company executed a seventh amendment to the Omnibus Loan and Security Agreement
dated June 19, 2008 which includes IFC and DEG and excludes the local lenders as parties to the
contract.
In October 2011, the SRA with BIL, AHI, NSHI and AHI’s creditors was terminated, releasing BIL
from all its share retention obligations. On the same date, MPHHI executed a new SRA with MPIC,
AHI and AHI’s creditors subject to the same terms and conditions of the old SRA. In the new SRA,
all share retention obligations of BIL were transferred to MPIC.
On July 1, 2014, MPHHI, together with AHI, MPIC, BIPI and AHI’s creditors executed an Amendatory
Agreement to the SRA amending certain provisions of the SRA to allow the transfer of ownership of
100% of the outstanding capital stock of BIPI from MPIC to MPHHI and reducing MPIC’s ownership
requirement of MPHHI.
As at December 31, 2017, all parties are in compliance with the Share Retention Agreement and the
Amendatory Agreement.
The relevant terms of the loans are as follows:

· The interest rates on the first drawdown of IFC and DEG loans were fixed at 8.5% and 9.1% per
annum, respectively. Interest rates on the second drawdown were fixed at 8.1% and 8.6%,
respectively.
· The principal repayments of the IFC and DEG loans which started on May 15 and
March 15, 2010, respectively, consist of 16 unequal semi-annual principal repayments as follows:
% of Principal Cumulative %
First two payments 3% 6%
Next two payments 5% 16%
Next twelve payments 7% 100%
*SGVFS038907*
- 28 -
· The Company is prohibited, among others, to:

(a) Declare or pay any dividend or make any cash distribution on its capital stock unless the
proposed payment is out of retained earnings and the Company notifies IFC and DEG in writing
that:
· no event of default or potential event of default has occurred and is continuing;
· after giving effect to such action, (i) the current ratio will be at least 1.2 and ii) the liabilities
to tangible net worth ratio will not be greater than 1.1; and
· The peak debt service coverage ratio is not less than 1.3 provided always that the retained
earnings out of which any dividend will be paid should in no event include any amount
resulting from revaluation of any of the Company’s assets.
(b) Incur expenditures or commitments for expenditures of fixed or other noncurrent assets, other
than those required for the expansion project, or necessary for repairs and maintenance and
replacements of equipment used in the Company’s operations;
(c) Incur, assume or permit to exist any financial debt except for the IFC and DEG loans, other
financial debt existing at the date of the loan agreements and short-term peso-denominated
working capital financing equal to the Company’s previous month’s net revenue;
(d) Enter into financial leases, except for leases with aggregate annual lease payments of not more
than US$500,000;
(e) Enter into any derivative transaction;
(f) Enter into guarantees; and

(g) Create liens on any property, revenue or other assets of the Company, except for the security
on the IFC and DEG loans and any lien arising from operation of law.
As at May 2, 2017, the Company’s current ratio is below the minimum, thus the Company was
prohibited from declaring dividends. In 2017, the Company was able to declare dividends after
obtaining the approval from IFC and DEG (see Note 12).
As long as the Company is unable to meet the requirements set out in the loan agreement, the Company
needs to obtain the approval from IFC and DEG before declaring dividends.
The Company has repaid in full all amounts owing to IFC and DEG in respect of the Loan secured by
the Real Estate and Equipment Mortgage Trust Indenture in accordance with the Local Currency
Loan Agreement.
Furthermore, all securities pursuant to the Loan Agreement cease to be effective. Accordingly, IFC
and DEG have surrendered to Development Bank of the Philippines – Trust Services as MTI Trustee
the Mortgage Participation Certificates.
The Company has completed its loan payment to IFC and DEG in November and September 2017,
respectively.
IFC Subordinated Loan

In February 2005, the Company availed of a Subordinated Loan from IFC amounting to
US$1.0 million, with annual interest based on LIBOR. The Subordinated Loan is subject to Income
Participation Amount (IPA) ranging from 1% to 2% of the earnings before income tax, depreciation
and amortization (EBITDA), as defined in the loan agreement.
*SGVFS038907*
- 29 -
The loan agreement provides that as long as the availed loan remains outstanding, the Company should
maintain certain current and debt service coverage ratios.
The loan payment was completed on April 30, 2017.
Movements of unamortized transaction costs are as follows:
2019 2018 2017

Beginning balances P
=– =–
P =623,041
P
Accretion – – (623,041)
Ending balances P
=– =–
P =–
P
Financial expenses recognized in the profit or loss follows (see Note 17):
2019 2018 2017
Interest expense from long-term
debts (Note 25):
Nominal P
=− =−
P =12,980,879
P
Accretion − − 623,041
Supervision fees on long-term debts − − 268,758
Others − − 98,246
− − 13,970,924
Bank charges and others 382,455 402,600 506,193
P
=382,455 =402,600
P =14,477,117
P
12. Equity
Capital Stock
Number of Shares
2019 2018
Authorized - =
P1 par value 2,000,000,000 2,000,000,000
Issued and subscribed 1,936,728,391 1,936,728,391
Subscription receivable
Movement of subscription receivable as at December 31 are as follows:
2019 2018 2017

Beginning balance ₱3,642,575 ₱4,151,197 ₱4,484,544
Application of dividends against subscription
receivable (see Note 25) (538,589) (508,622) (333,347)
Ending balance P
=3,103,986 =3,642,575
P ₱4,151,197
Retained Earnings
As at December 31, 2019 the Company’s unappropriated retained earnings exceeded its paid-in capital.
The Company plans to declare its excess retained earnings over paid-in capital as at December 31, 2019
as cash dividends in 2020.
*SGVFS038907*
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Details of the Company’s cash dividend declarations are as follows:

Outstanding
Dividend Shares as of
BOD Declaration Date Record Date Payment Dates Per Share Declaration Date Total
April 30, 2019 May 15, 2019 May 30, 2019 = 0.062
P 1,936,728,391 P120,077,160
=
November 26, 2019 December 7, 2019 December 19, 2019 = 0.062
P 1,936,728,391 120,077,160
= 240,154,320
P
Outstanding
April 30, 2018 May 15, 2018 May 30, 2018 =0.060
P 1,936,728,391 =116,203,703
P
November 15, 2018 November 30, 2018 December 14, 2018 =0.036
P 1,936,728,391 69,722,222
=185,925,925
P
Outstanding
May 2, 2017 May 15, 2017 May 30, 2017 =0.0375
P 1,936,728,391 =72,627,315
P
November 21, 2017 December 4, 2017 December 15, 2017 =0.0375
P 1,936,728,391 72,627,315
=145,254,630
P
Other Comprehensive Income (Loss) - net

Accumulated other comprehensive income (loss) presented in the statements of financial position as at
the years ended consists of the following, net of applicable income taxes:
2019 2018 2017
Actuarial gain (loss) in accrued retirement
benefits liability (P
=5,711,227) =11,289,221
P (P
=8,804,509)
Unrealized gain on fair value changes of financial
assets at FVOCI 5,935,000 5,535,000 –
Unrealized gain on fair value changes of AFS
financial assets − − 4,135,000
P
=223,773 =16,824,221
P (P
=4,669,509)
13. Revenue
Disaggregated Revenue Information
Set out below is the disaggregation of the Company’s revenue from contracts with customers for the
year ended December 31.
2019 2018 2017
By source
Patient service revenue P
=3,285,861,438 =3,059,965,400
P =2,809,702,439
P
Pharmacy sales 684,544,591 643,790,720 580,249,275
Discounts (392,290,217) (333,286,602) (298,572,022)
P
=3,578,115,812 =3,370,469,518
P =3,091,379,692
P
By customers
Inpatient P
=2,292,583,081 =2,137,622,160
P =2,033,724,882
P
Outpatient 1,677,822,948 1,566,133,960 1,356,226,832
Gross revenue 3,970,406,029 3,703,756,120 3,389,951,714
Discounts (392,290,217) (333,286,602) (298,572,022)
P
=3,578,115,812 =3,370,469,518
P =3,091,379,692
P
*SGVFS038907*
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Contract Balances
The Company’s trade receivables amounted to = P345.0 million and =
P289.8 million as at
December 31, 2019 and 2018, respectively (see Note 5).
Contract liabilities include deposits received from patients to perform medical services, amounting to
=1.5 million and =
P P12.4 million as at December 31, 2019 and 2018, respectively (see Note 10). Revenue
recognized from contract liabilities included in 2019 and 2018 amounted to P =11.4 million and
=1.0 million, respectively.
P
14. Cost of Services and Sales
2019 2018 2017

Medical supplies P
=464,055,853 =437,061,293
P =393,085,986
P
Personnel costs (Note 18) 339,822,117 283,265,426 268,090,710
Reader’s fee 219,814,860 213,706,432 161,952,794
Depreciation (Notes 8 and 9) 202,748,295 178,989,893 164,032,745
Professional fees and outside
services 196,168,238 195,573,699 184,688,694
Communication, light and water
(Note 23) 120,448,021 131,705,935 121,821,671
Patient meals 45,843,264 43,338,866 42,597,150
Supplies 25,536,754 23,943,881 20,716,051
Rent (Note 24) 11,768,772 9,769,154 9,449,285
Repairs and maintenance 11,755,669 9,980,148 18,677,150
Amortization of software (Note 9) 694,611 853,290 3,014,405
Others - net (Note 6) 11,765,200 28,493,662 17,558,529
Cost of services 1,650,421,654 1,556,681,679 1,405,685,170
Cost of sales – Pharmacy 396,592,279 376,957,052 323,244,794
P
=2,047,013,933 =1,933,638,731
P =1,728,929,964
P
15. Operating Expenses
2019 2018 2017

Personnel costs (Note 18) P
=276,935,416 =245,017,768
P =239,382,433
P
Professional fees and outside
services (Note 23) 156,008,828 136,462,617 118,560,679
Depreciation (Notes 8 and 9) 150,969,461 130,563,777 121,326,040
Repairs and maintenance 52,313,267 54,266,596 55,872,339
Communication, light and water
(Note 23) 45,735,519 46,563,616 43,994,150
Entertainment, amusement and
recreation 18,355,301 16,590,637 18,681,336
Advertising 18,325,970 13,945,310 18,285,241
Supplies 17,923,450 17,155,841 17,371,587
Insurance 13,367,362 13,629,365 17,780,262
Taxes and licenses 26,740,814 24,182,689 20,665,441
(Forward)
*SGVFS038907*
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2019 2018 2017

Provision for ECL/doubtful
accounts (Note 5) P
=19,185,493 =36,541,421
P =15,512,998
P
Entertainment, amusement and
recreation 18,355,301 16,590,637 18,681,336
Advertising 18,325,970 13,945,310 18,285,241
Supplies 17,923,450 17,155,841 17,371,587
Insurance 13,367,362 13,629,365 17,780,262
Transportation and travel 12,888,179 11,273,229 15,321,709
Rent (Note 24) 11,412,171 8,348,255 6,593,707
Amortization of software (Note 9) 6,990,740 5,590,262 2,538,976
Others (Note 6) 26,146,090 47,491,616 33,252,269
P
=853,298,061 =807,622,999
P =745,139,167
P
16. Other Operating Income - Net
2019 2018 2017

Rent income (Note 24) P
=20,396,318 =19,281,226
P =18,097,866
P
Foreign exchange gain (loss) - net 2,873,586 7,312,546 6,744,256
Gain (loss) on disposal of property
and equipment (Note 8) (930,109) (1,838,681) 1,334,700
Recovery of impairment loss on
property and equipment
(Note 8) − 653,222 −
Others 36,092,282 39,534,553 36,931,345
P
=58,432,077 =64,942,866
P =63,108,167
P
Others pertains to income from canteen operations and parking fees, among others.
17. Finance Costs
2019 2018 2017

Net interest from retirement
benefits cost (Note 19) P
=2,270,999 =3,395,693
P P3,129,567
=
Financial expenses (Note 11) 382,455 402,600 14,477,117
P
=2,653,454 =3,798,293
P =17,606,684
P
18. Personnel Costs
2019 2018 2017

Salaries and wages
(Notes 14 and 15) P
=608,714,467 =517,276,805
P =497,096,613
P
Retirement benefits cost (Note 19) 8,043,066 11,006,389 10,376,530
P
=616,757,533 =528,283,194
P =507,473,143
P
*SGVFS038907*
- 33 -
19. Retirement Benefits
The Company has a non-contributory retirement plan which provides retirement benefit equal to one hundred percent (100%) of plan salary for every year of credited
service of qualified employees, not less than the regulatory benefit under the Retirement Pay Law (Republic Act No. 7641). The retirement plan trustee, as appointed by
the Company in the trust agreement executed between the Company and the duly appointed retirement plan trustee, is responsible for the general administration of the
retirement plan and the management of the retirement fund. The retirement plan trustee may seek the advice of counsel and appoint the investment managers to manage
the retirement fund, an independent accountant to audit the fund and an actuary to value the retirement fund.
Changes in Net Accrued Retirement Benefits Liability in 2019
Remeasurements in Other Comprehensive Income
Net Retirement Benefits Cost in Statement of Return on Actuarial Actuarial
Comprehensive Income Plan Assets Changes Arising Changes Arising
Current (Excluding from Changes in from Changes in
January 1, Service Cost* Net Interest** Contributions and Amount Included Demographic Financial Experience December 31,
2019 (Notes 15 and 18) (Note 17) Subtotal Benefits Paid Settlement Loss in Net Interest) Assumptions Assumptions Adjustments Subtotal 2019
Present value of defined benefit
obligation P
=72,345,146 P
=8,043,066 P
=6,069,758 P
=14,112,824 (P
=2,983,901) P
=− P
=− P
=2,607,805 P
=27,176,181 (P
=4,992,533) P
=24,791,453 P
=108,265,522
Fair value of plan assets (39,084,261) − (3,798,759) (3,798,759) (12,385,912) − (505,099) − − − (505,099) (55,774,031)
Net defined benefit liability P
=33,260,885 P
=8,043,066 P
=2,270,999 P
=10,314,065 (P
=15,369,813) P
=− (P
=505,099) P
=2,607,805 P
=27,176,181 (P
=4,992,533) P
=24,286,354 P
=52,491,491
*Presented as retirement benefits cost under “Personnel Cost”.
**Present as net interest from retirement benefit cost under “Finance Cost”.
Current (Excluding from Changes in from Changes in
January 1, Service Cost* Net Interest** Contributions and Amount Included Demographic Financial Experience December 31,
2018 (Notes 15 and 18) (Note 17) Subtotal Benefits Paid Settlement Loss in Net Interest) Assumptions Assumptions Adjustments Subtotal 2018
obligation P90,081,233
= =11,006,389
P P5,413,882
= =16,420,271
P (P
=3,119,166) P−
= =−
P =6,304,509
P (P
=31,325,159) (P
=6,016,542) (P
=31,037,192) P72,345,146
=
Fair value of plan assets (27,763,097) − (2,018,189) (2,018,189) (11,634,839) − 2,331,864 − − − 2,331,864 (39,084,261)
Net defined benefit liability =62,318,136
P =11,006,389
P =3,395,693
P =14,402,082
P (P
=14,754,005) =−
P =2,331,864
P =6,304,509
P (P
=31,325,159) (P
=6,016,542) (P
=28,705,328) =33,260,885
P

Current (Excluding Amount from Changes in from Changes in
January 1, Service Cost* Net Interest** Contributions and Included in Net Demographic Financial Experience December 31,
2017 (Notes 15 and 18) (Note 17) Subtotal Benefits Paid Settlement Loss Interest) Assumptions Assumptions Adjustments Subtotal 2017
obligation P74,902,383
= =10,376,530
P P4,456,692
= =14,833,222
P (P
=3,165,942) P−
= =−
P =1,778,369
P =8,728,559
P (P
=6,995,358) P3,511,570
= P90,081,233
=
Fair value of plan assets (16,923,308) − (1,327,125) (1,327,125) (10,762,622) − 1,249,958 − − − 1,249,958 (27,763,097)
Net defined benefit liability =57,979,075
P =10,376,530
P =3,129,567
P =13,506,097
P (P
=13,928,564) =−
P =1,249,958
P =1,778,369
P =8,728,559
P (P
=6,995,358) =4,761,528
P =62,318,136
P
*SGVFS038907*
- 34 -
The principal actuarial assumptions used to determine retirement benefits are as follows:
2019 2018 2017

Discount rate 5.57% 8.39% 6.01%
Salary increase rate 7.00% 7.00% 8.00%
Employees covered 1,560 1,474 1,410
The 2001 CSO Table - The 2001 CSO Table - The 2001 CSO Table -
Mortality rate Generational Generational Generational
The Disability Study, The Disability Study, The Disability Study,
Disability rate Period 2 Benefit 5 Period 2 Benefit 5 Period 2 Benefit 5
Withdrawal rates are as follows:
Nurse Non-Nurse
Age 2019 2018 2017 2019 2018 2017
19 - 24 25.50% 25.00% 22.00% 23.75% 25.25% 26.00%
25 - 29 35.75% 33.25% 33.75% 23.00% 23.25% 23.75%
30 - 34 30.00% 28.00% 30.00% 20.00% 19.00% 17.75%
35 - 39 25.00% 24.50% 24.00% 8.50% 11.00% 12.25%
40 - 44 9.00% 7.50% 11.50% 7.00% 8.50% 9.75%
≥ 45 4.00% 1.50% 3.00% 6.50% 6.75% 7.50%
The composition of the fair value of plan assets by each class as at December 31 is as follows:
2019 2018
Cash and cash equivalents P6,559,026
= P14,062,517
=
Government securities 47,547,361 26,080,927
Others 1,667,644 (1,059,183)
Fair value of plan assets =55,774,031
P =39,084,261
P
The distribution of fair value of plan assets by each class as at December 31, 2019 are as follows:
2019 2018
Cash and cash equivalents 11.76% 35.98%
Government securities 85.25% 66.73%
Others 2.99% (2.71%)
100.00% 100.00%
All debt instruments held have quoted prices in active markets. The remaining plan assets do not have
quoted market prices in active markets.
The plan assets consist mainly of government securities that are risk-free.
Each sensitivity analysis on the significant actuarial assumptions was prepared by re-measuring accrued
retirement benefits liability at the end of the reporting period after first adjusting one of the current
assumptions according to the applicable sensitivity increment or decrement (based on changes in the
relevant assumption that were reasonably possible at the valuation date) while all other assumptions
remained unchanged. The sensitivities were expressed as the corresponding change in the accrued
retirement benefits liability:
*SGVFS038907*
- 35 -
2019 2018
Accrued Accrued
Increase Retirement Increase Retirement
(decrease) Benefits (decrease) Benefits
Discount rates 1.0% (P
=11,074,496) 1.0% (P
=5,689,007)
(1.0%) 13,102,729 (1.0%) 8,160,399
Future salary increases 1.0% 12,782,462 1.0% 8,189,428
(1.0%) (11,033,140) (1.0%) (5,822,663)
No attrition rates 152,095,281 74,679,200
The retirement plan trustee has no specific matching strategy between the plan assets and the plan
liabilities. But, the plan trustee is generally assumed to use an approach that would meet the goals of
the fund.
The Company is not required to pre-fund the future defined benefits payable under the retirement plan
before they become due. For this reason, the amount and timing of contributions to the retirement fund
are at the Company’s discretion. However, in the event a benefit claim arises and the retirement fund
is insufficient to pay the claim, this will then be due and payable from the Company to the retirement
fund.
The weighted average duration of the defined benefit obligation is 10.6 years and 10.2 years on
December 31, 2019 and 2018, respectively.
Shown below is the maturity analysis of the undiscounted benefit payments as at December 31:
2019 2018
Not exceeding one year P
=12,852,694 =12,172,429
P
More than one year but not exceeding two years 4,645,260 3,414,563
More than two years but not exceeding five years 21,049,578 18,555,584
More than five years but not exceeding ten years 44,362,893 39,239,189
P
=82,910,425 =73,381,765
P
The latest actuarial valuation report of the Company is as at December 31, 2019. The Company does
not expect to contribute to the plan asset in the next financial year.
20. Income Taxes

a. The provision for (benefit from) income tax consists of:
2019 2018 2017

Current:
RCIT P
=210,270,423 =208,316,260
P =184,902,273
P
Final tax on interest income 341,082 399,586 284,093
210,611,505 208,715,846 185,186,366
Deferred 9,848,391 (1,118,007) 14,164,204
P
=220,459,896 =207,597,839
P =199,350,570
P
*SGVFS038907*
- 36 -
b. The components of the Company’s net deferred income tax assets as at December 31 are as follows:
2019 2018
Deferred income tax assets on:
Difference between the depreciation expense per
books and the depreciation expense
deducted for income tax purposes P
=37,403,015 =46,923,205
P
Allowance for:
ECL 29,216,011 29,736,283
Inventory obsolescence 4,068,640 5,935,709
Accrued retirement benefits liability - net 15,747,447 9,978,266
Accrued expenses 9,263,006 8,437,946
Unamortized past service costs 2,210,128 262,343
Unrealized foreign exchange loss - net 487,285 −
Rental deposit 412,297 389,353
Allowance for possible loss of equipment 385,012 385,012
99,192,841 102,048,117
Deferred income tax liability on unrealized foreign
exchange gain - net − (292,791)
P
=99,192,841 =101,755,326
P
2019 2018
Deferred tax asset (liability) recognized in other
comprehensive loss (income) - actuarial loss
(gain) on accrued retirement benefits liability P
=7,285,906 (P
=8,611,598)
c. A reconciliation of the Company’s provision for income tax computed at the statutory income tax
rate based on income before income tax to the provision for income tax is as follows:
2019 2018 2017

Provision for income tax
computed at the statutory
income tax rate P
=220,645,304 =207,748,870
P =199,371,633
P
Additions to (reductions in)
income tax resulting from:
Interest income subjected to
final tax (526,490) (616,710) (477,846)
Final tax on interest income 341,082 399,586 284,093
Nondeductible expenses − 66,093 172,690
Provision for income tax P
=220,459,896 =207,597,839
P =199,350,570
P
21. Capital Management
The primary objective of the Company’s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximize stockholder value.
*SGVFS038907*
- 37 -
The Company monitors capital using the liabilities to tangible net worth ratio. Liabilities include
accounts payable and other current liabilities, accrued retirement benefits liability, income tax payable
and due to a related party. Tangible net worth pertains to the total stockholders’ equity minus intangible
assets. Ratio should not be greater than 1:1.
2019 2018
Liabilities (a):
Accounts payable and other current liabilities P
=592,181,063 =586,325,615
P
Accrued retirement benefits liability 52,491,491 33,260,885
Income tax payable 91,437,719 48,816,587
Due to a related party 7,361,859 6,550,019
P
=743,472,132 =674,953,106
P
Tangible net worth (b):

Capital stock P
=1,933,624,405 =1,933,085,816
P
Additional paid-in capital 185,465,780 185,465,780
Retained earnings 2,301,171,160 2,026,301,030
Other comprehensive loss – net of tax 223,773 16,824,221
4,420,485,118 4,161,676,847
Less software and licenses - net 16,240,984 11,346,233
P
=4,404,244,134 =4,150,330,614
P
Liabilities to tangible net worth ratio (a/b) 0.17:1.0 0.16:1.0
22. Financial Instruments and Financial Risk Management Objectives and Policies
The Company’s principal financial instruments comprise mainly of cash and cash equivalents. The
Company has various other financial assets and financial liabilities such as trade receivables and trade
payables, which arise directly from its operations.
It is, and has been throughout the year, the Company’s policy that no free-standing derivatives or
trading in financial instruments shall be undertaken.
Fair Value Information

The following methods and assumptions were used to estimate the fair value of each class of financial
instruments for which it is practicable to estimate such value:
Current financial assets and financial liabilities

Due to the short-term nature of the transactions, the fair value of cash and cash equivalents, receivables,
accounts payable and other current liabilities, excluding statutory payables and contract liabilities, and
amounts due to a related party approximate the carrying amount as of the reporting date.
Refundable deposits
The carrying value approximates the fair value of refundable deposits included under “Other noncurrent
assets” in the statements of financial position because of recent and regular repricing based on market
conditions.
*SGVFS038907*
- 38 -
Financial asset at FVOCI

The fair value of equity financial assets designated at FVOCI included under “Other noncurrent assets”
in the statement of financial position is based on the quoted prices in the active market.
Fair Value Hierarchy
The Company’s financial assets that are carried at fair value are the quoted shares classified as equity
financial assets as at December 31, 2019, and 2018, the fair value of these investments amounting to
=8.6 million and =
P P8.2 million, respectively, are determined and disclosed using Level 1 inputs, which
are quoted in active markets for identical assets. In 2019 and 2018, there were no transfers into and out
of the different levels of fair value measurements.
Financial Risk Management Objectives and Policies

The main risks arising from the Company’s financial instruments are credit risk, liquidity risk and
foreign currency risk. The BOD reviews and approves policies for managing these risks and they are
summarized as follows:
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other
party by failing to discharge an obligation. The Company extends credit only to reputable HMO or
insurance companies. The receivable balances are regularly monitored. Credit limits are set in the
system and a regular review of these limits is being done by management.
As a healthcare provider, the Company is exposed to credit risk on patients who are unable to pay their
medical bills upon discharge. The Company has a policy to require deposits from patients upon
admission and to require top-ups from patients whose bills have exceeded deposited amount. To lessen
the exposure on credit risk, the Company closely monitors its receivables on an on-going basis.
The Company’s exposure to credit risk arises from default of the counterparty.
The table below provides the maximum credit risk exposure of the Company as at December 31:
Gross Maximum Exposure(1) Net Maximum Exposure(2)

2019 2018 2019 2018
Cash and cash equivalents* ₱376,392,394 =324,553,507
P P
=372,892,394 =321,553,507
P
Receivables 273,482,135 220,929,931 273,482,135 220,929,931
Refundable deposits** 6,712,970 6,758,970 6,712,970 6,758,970
Financial asset at FVOCI** 8,568,000 8,168,000 8,568,000 8,168,000
P
=665,155,499 =560,410,408
P P
=661,655,499 =557,410,408
P
(1)
Gross financial assets before taking into account any collateral held or other credit enhancements or insurance in case of bank deposits.
(2)
Net financial assets after taking into account any collateral held or other credit enhancements or insurance in case of bank deposits.
*Excluding cash on hand amounting to = P9.5 million and =
P 13.2 million as at December 31, 2019 and 2018, respectively.
**Included as part of “Other noncurrent assets” account.
The maximum exposure to credit risk on cash and cash equivalents without considering the effects of
collaterals, credit enhancements and other credit risk mitigation techniques is the carrying value of this
financial asset. After considering the credit enhancement pertaining to insured deposits in banks as
prescribed by Philippine Deposit Insurance Corporation, net maximum exposure as at
December 31, 2019 and 2018 amounted to P =661.6 million and P =557.4 million, respectively.
*SGVFS038907*
- 39 -
The tables below provide the age analysis of the Company’s financial assets according to the
Company’s credit ratings of debtors:
December 31, 2019
Neither Past Past Due
Due nor 30-60 61-90 91-120 >120 Provision
Impaired <30 Days Days Days Days Days for ECL Total
Cash and cash equivalents* = 376,392,394
P =–
P =–
P =–
P =–
P =–
P =– P
P = 376,392,394
Receivables:
Trade:
HMO 45,771,293 44,095,638 3,428,750 396,365 67,860 1,263,294 (9,898,788) 85,124,412
Philhealth 12,214,174 14,046,694 15,920,390 13,910,595 6,282,350 28,973,934 (29,405,029) 61,943,108
Corporate accounts 16,233,673 14,837,656 7,203,062 2,825,171 577,532 9,996,386 (11,667,710) 40,005,770
International insurance 4,233,536 14,334,754 9,209,926 2,988,027 3,305,822 441,293 (3,390,931) 31,122,427
Self-pay − 1,078,242 2,885,570 2,011,868 690,410 22,590,288 (21,110,611) 8,145,767
Others 34,996,617 7,778,191 − − − 390,714 (9,029,782) 34,135,740
Nontrade:
Others 1,896,566 3,477,409 2,289,756 1,652,072 2,317,240 14,255,719 (12,883,851) 13,004,911
Refundable deposits** 6,712,970 − − − − − − 6,712,970
Financial assets at FVOCI** 8,568,000 − − − − − − 8,568,000
= 507,019,223 P
P = 99,648,584 P = 40,937,454 = 23,784,098
P = 13,241,214
P = 77,911,628 (P
P =97,386,702) P
= 665,155,499
*Excluding cash on hand amounting to =P9.5 million as at December 31, 2019.
** Included as part of “Other noncurrent assets” account.
December 31, 2018

Neither Past Past Due
Due nor 30-60 61-90 91-120 >120 Provision
Impaired <30 Days Days Days Days Days for ECL Total
Cash and cash equivalents* =324,553,507
P =–
P =–
P =–
P =–
P =–
P =– P
P =324,553,507
Receivables:
Trade:
HMO 34,401,791 17,756,934 2,552,414 635,675 935,551 1,897,691 (2,897,806) 55,282,250
Philhealth 12,959,245 14,124,484 4,747,680 6,155,273 10,500,387 17,243,215 (20,174,443) 45,555,841
Corporate accounts 10,242,584 10,382,225 5,743,547 2,745,082 1,078,548 1,509,985 (3,200,356) 28,501,615
International insurance 7,797,258 13,444,161 14,961,132 1,225,584 510,417 7,664,539 (10,710,034) 34,893,057
Self-pay 1,506,516 2,606,116 2,019,322 1,165,636 589,466 42,297,260 (50,184,316) −
Other trade receivables 35,609,277 1,517,405 143,866 191,589 – 921,486 (6,265,956) 32,117,667
Nontrade:
Other 4,777,327 5,401,790 3,932,162 1,327,882 9,140,340 5,688,034 (5,688,034) 24,579,501
Refundable deposits** 6,758,970 – – – – – – 6,758,970
Financial assets at FVOCI** 8,168,000 – – – – – – 8,168,000
=446,774,475 P
P =65,233,115 P =34,100,123 P =13,446,721 =22,754,709
P =77,222,210
P (P
=99,120,945) P=560,410,408
*Excluding cash on hand amounting to =
P13.2 million as at December 31, 2018.
For cash and cash equivalents, the Company applies the low credit risk simplification. The probability
of default and loss given defaults are publicly available and are considered to be low credit risk
investments. It is the Company’s policy to measure ECLs on such instruments on a
12-month basis. However, when there has been a significant increase in credit risk since origination,
the allowance will be based on the lifetime ECL. The Company uses the ratings from the external
credit rating agencies to determine whether the debt instrument has significantly increased in credit risk
and to estimate ECLs.
For trade and other receivables, an impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on days past due for
groupings of various customer segments with similar loss patterns (i.e., by customer type or by payors).
The calculation reflects the probability-weighted outcome, the time value of money and reasonable and
supportable information that is available at the reporting date about past events, current conditions and
forecasts of future economic conditions. Based on the Company’s credit risk experience, expected
credit loss rate increases as the age of receivables also increases.
*SGVFS038907*
- 40 -
Credit quality
The financial assets of the Company are grouped according to stage whose description is explained as
follows:
Stage 1 - Those that are considered current and up to 120 past due and based on change in rating
delinquencies and payment history, do not demonstrate significant increase in credit risk.
Stage 2 - Those that, based on change in rating, delinquencies and payment history, demonstrate
significant increase in credit risk, and/or are considered more than 120 to 360 days past due but does
not demonstrate objective evidence of impairment as of reporting date.
Stage 3 - Those that are considered in default or demonstrate objective evidence of impairment as of
reporting date.
The table below shows determination of ECL stage of the Company’s financial assets:
December 31, 2019
Stage 1 Stage 2 Stage 3 Total
12-month ECL Lifetime ECL Lifetime ECL
Cash and cash equivalents* ₱376,392,394 P
=− P
=− ₱376,392,394
Trade receivables 281,324,166 63,655,909 − 344,980,075
Nontrade receivables 11,633,043 14,255,719 − 25,888,762
Refundable deposits** 6,712,970 − − 6,712,970
Financial asset at
FVOCI** 8,568,000 − − 8,568,000
Total financial assets P
=684,630,573 P
=77,911,628 P
=− P
=762,542,201
* Excluding cash on hand amounting to =
P 9.5 million.
December 31, 2018

Stage 1 Stage 2 Stage 3 Total
12-month ECL Lifetime ECL Lifetime ECL
Cash and cash equivalents* =324,553,507
P =−
P =−
P P324,553,507
=
Trade receivables 218,249,165 71,534,176 − 289,783,341
Nontrade receivables 24,579,501 5,688,034 − 30,267,535
Refundable deposits** 6,758,970 − – 6,758,970
Financial asset at
FVOCI** 8,168,000 − – 8,168,000
Total financial assets =582,309,143
P ₱77,222,210 =−
P =659,531,353
P
* Excluding cash on hand amounting to =P 13.2 million.
*Included as part of “Other noncurrent assets” account.
Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial instruments. The Company’s objective is to be able to finance its working capital
requirements and capital expenditures. To cover the Company’s financing requirements, the Company
uses internally-generated funds. Projected and actual cash flow information are regularly evaluated to
ensure it meets these requirements.
The tables in the next page summarize the maturity profile of the financial liabilities of the Company
based on remaining undiscounted contractual obligations. The table also analyzes the maturity profile
of the Company’s financial assets in order to provide a complete view of the Company’s contractual
commitments and liquidity:
*SGVFS038907*
- 41 -
Financial assets
The maturity grouping is based on the remaining period from the end of the reporting period to the
contractual maturity date or if earlier, the expected dates the assets will be realized.
Financial liabilities
The maturity grouping is based on the remaining period for the end of the reporting period to the
contractual maturity date.
December 31, 2019
Within More than
On demand one year 1-2 years 2-3 years 3-4 years 4 years TOTAL
Cash and cash equivalents = 355,903,844
P = 30,000,000
P =–
P =–
P =–
P =–
P = 385,903,844
P
Trade receivables – 260,477,224 – – – – 260,477,224
Nontrade receivables – 13,004,911 – – – 13,004,911
Refundable deposits* – – 6,712,970 – – – 6,712,970
Financial assets at FVOCI* – – 8,568,000 – – – 8,568,000
Total financial assets 355,903,844– 303,482,135 15,280,970 – – – 674,666,949
Accounts payable and other
current liabilities** – 569,336,849 – – – – 569,336,849
Due to a related party – 7,361,859 – – – – 7,361,859
Total financial liabilities – 576,698,708 – – – – 579,698,708
Liquidity position (gap) = 355,903,844
P (P
=273,216,573) = 15,280,970
P =–
P =–
P =–
P = 97,968,241
P
**Excluding statutory payable and contract liabilities amounting to =
P 21.3 million and =
P 1.5 million respectively, as at December 31, 2019
December 31, 2018

Within More than
On demand one year 1-2 years 2-3 years 3-4 years 4 years TOTAL
Cash and cash equivalents =
P337,734,440 ₱− =–
P =–
P =–
P =– =
P P337,734,440
Trade receivables – 196,098,837 – – – – 196,098,837
Nontrade receivables – 24,831,094 – – – – 24,831,094
Refundable deposits** – – 6,758,970 – – – 6,758,970
Financial assets at
FVOCI** – – 8,168,000 – – – 8,168,000
Total financial assets 337,734,440 220,929,931 14,926,970 – – – 573,591,341
Accounts payable and other
current liabilities* – 552,293,849 – – – – 552,293,849
Due to a related party – 6,550,019 – – – – 6,550,019
Total financial liabilities – 558,843,868 – – – – 558,843,868
Liquidity position (gap) =337,734,440 (P
P =337,913,937) P =14,926,970 =–
P =–
P =– P
P =14,747,473
**Excluding statutory payable and contract liabilities amounting to =
P 21.7 million and =
P 12.4 million respectively, as at December 31, 2018
The Company expects that the cash generated from operations will adequately cover those immediately
maturing obligations. All expected collections, check disbursements and other cash payments are
determined daily to arrive at the projected cash position to cover its obligations and to ensure that
obligations are met as they fall due. The Company monitors its cash flow position, particularly
collections from receivables and the funding requirements of operations to ensure an adequate balance
of inflows and outflows. The Company has online facilities with its depository banks wherein bank
balances are monitored daily to determine the Company’s actual cash balances at any time. The
Company also has available credit facilities from which it can draw to ensure sufficient available
funding for its projects.
Foreign Currency Risk

Foreign exchange risk is the risk to earnings or capital arising from changes in foreign exchange rates.
The Company has foreign currency risk arising from its cash and cash equivalents and international
insurance included under receivables. The Company also has transactional currency exposures arising
from purchases of medical equipment or supplies in currencies other than the Peso. The Company
relies on its ability to generate dollar-based revenue from its foreign patients to mitigate this risk.
*SGVFS038907*
- 42 -
The table below shows the details of the Company’s currency exposure in US dollar (US$) on its cash
and cash equivalents and receivables:
2019 2018
Peso Peso
Original Currency Equivalent Original Currency Equivalent
Cash and cash equivalents US$1,075,058 P
=54,440,937 US$1,438,396 =75,630,861
P
Receivables 576,093 29,173,350 352,944 18,557,796
US$1,651,151 P
=83,614,287 US$1,791,340 =94,188,657
P
As at December 31, 2019, and 2018, the exchange rates used were =
P50.64 and =
P52.58 per US$1.00,
respectively.
The tables below represent the impact on the Company’s profit or loss before income tax due to changes
in fair value of monetary assets brought about by a change in Peso to US dollar exchange rates (holding
all other variables constant):
Foreign exchange Increase (Decrease) Impact on Income

rate in Foreign Currency Before Tax
2019 ₱50.64 3.69% P
=3,085,367
(3.69%) (3,085,367)
2018 52.58 5.31% 5,001,418
(5.31%) (5,001,418)
There is no other effect on the Company’s equity other than those already affecting the profit or loss.
23. Significant Related Party Transactions
Related party relationship exists when one party has the ability to control, directly, or indirectly through
one or more intermediaries, the other party or exercise significant influence over the other party in
making financial and operating decisions. Such relationships also exist between and/or among entities
which are under common control with the reporting enterprise, or between and/or among the reporting
enterprise and its key management personnel, directors or its stockholders.
On November 4, 2011, MPIC and BIL executed a Sales and Purchase Agreement (SPA) whereby MPIC
purchased BIL’s ownership interest in the Company, resulting to the transfer of controlling equity
interest in the Company to MPIC.
In connection with the SPA, MPIC, BIL and Bumrungrad International Holdings Pte Ltd. (BIHPL)
entered into an Assignment and Accession Agreement on December 6, 2011, wherein BIL and BIHPL
transferred to MPIC all of their rights and obligations under the Consultancy Services Agreement and
Service Agreement, respectively.
The consultancy services agreement with BIL provide for fees equivalent to 3% of net revenue and 5%
of EBITDA of the Company, payable in cash to the extent of US$70,572 annually, with the balance
payable by way of issuance of the Company’s shares or shall be deemed to be payment for subscription
of the Company’s shares based on a subscription price at the higher of (a) ten times the earnings per
share of the Company during the previous fiscal year or (b) =
P1.13 as may be adjusted by reason of any
change in par value.
*SGVFS038907*
- 43 -
Under the services agreement with BIHPL, the fees shall be payable in cash to the extent of US$70,572
annually.
For both the Consultancy Services Agreement and Service Agreement, the basis of the cash payment
to be made to MPIC, previously entered with the Company, shall be amended annually based on the
change in the Philippine Consumer Price Index (CPI) for the most recent past twelve months.
On January 1, 2015, the right to collect management fee was transferred to MPHHI.
On February 24, 2015, the Company changed the currency denomination from US Dollar to Philippine
Peso using the foreign exchange rate as at February 16, 2015.
Increase in CPI of 6% and 4% in 2019 and 2018, respectively, resulted to increase in management fee
in 2019 and 2018.
The tables below provide the total amount of transactions and their outstanding balances included in
“Accounts payable and other current liabilities” with other related parties as of and for the years ended
Nature of Transactions for the year Outstanding balances
transactions 2019 2018 2019 2018 Terms Conditions
Parent
Due every month;
MPHHI Management fee = 10,116,942
P =9,606,805
P = 2,234,716
P =1,422,876
P Cash payment adjusted for Unsecured
the changes in the CPI
Group Purchasing 800,000 800,000 1,385,714 1,385,714 Due upon receipt of invoice Unsecured
Legal 1,440,000 1,440,000 3,741,429 3,741,429 Due upon receipt of invoice Unsecured
Total ₱12,356,942 ₱11,846,805 = 7,361,859
P =6,550,019
P
The Company also avails of and provides several services from its affiliates under normal terms and
conditions and which are also offered to third parties.
The tables below provide the total amount of transactions and their outstanding balances included in
“Accounts payable and other current liabilities” with other related parties as of and for the years ended
Nature of Transactions for the year Outstanding balances
transaction 2019 2018 2019 2018 Terms Conditions
Receivables
Affiliate Under Common
Control
Philippine Long Distance Hospital bills = 18,150,786
P =23,605,603
P = 18,011,828
P =12,050,517
P 30 days; Unsecured
Telephone Company noninterest-
bearing
Smart Communications, Rental income 1,079,910 =653,271
P 554,698 =1,228,786
Inc. noninterest-
bearing
Digitel Mobile Philippines, Rental income – 69,810 101,826 101,826 30 days; Unsecured
Inc. noninterest-
bearing
= 19,230,696
P =24,328,684
P = 18,668,352
P =13,381,129
P
Payables
Affiliate Under Common
Control
Philippine Long Distance Availment of = 5,621,425
P =5,517,753
P = 469,699
P =572,699
Telephone Company communication noninterest-
services bearing
MeralcoPowerGen Availment of 134,692,938 145,779,148 10,628,699 11,702,930 30 days; Unsecured
Corporation electric services noninterest-
bearing
Medi Linx Laboratory Inc. Laboratory services 12,547,190 – 10,254,174 – 30 days; Unsecured
and purchase of noninterest-
reagents bearing
Smart Communications, Availment of 1,283,572 1,355,394 106,000 103,100 30 days; Unsecured
Inc. communication noninterest-
services bearing
= 154,145,125
P ₱152,652,295 = 21,458,572
P =12,378,729
P
*SGVFS038907*
- 44 -
The compensation of key management personnel follows:
2019 2018
Salaries and short-term employee benefits P
=123,060,998 =111,329,782
P
Post-employment retirement benefits 5,278,833 7,892,246
P
=128,339,831 =119,222,028
P
24. Leases
The Company as lessor
a. The Company entered into various lease agreements with its concessionaires. These leases
generally provide for either (a) a fixed monthly rent or (b) a minimum rent or a certain percentage
of gross revenue. Fixed rent income from leases amounted to P =13.4 million, P
=12.4 million and
=11.8 million in 2019, 2018 and 2017, respectively. Contingent rent income recognized in profit
P
or loss amounted to P =6.3 million, P =6.2 million and P =5.5 million in 2019, 2018 and 2017,
respectively. Generally, the lease term is 1 year and renewable annually.
b. The Company entered into one-year lease agreements with its doctors for the rent of two
condominium units as clinics. One of the lease contracts expired on March 31, 2014. The
condominium units are located in the Medical Office Building and are owned by the Company.
The Company earned rent income of P=0.7 million in 2019 and 2018, and =
P0.8 million in 2017.
The Company as lessee (Starting January 1, 2019)
The Company has certain leases of machineries, office equipment, and parking lots and spaces of land.
Generally, the leases have lease terms of one year or less and are renewable under certain terms and
conditions to be mutually agreed upon by the parties. The Company applies the “short-term lease” and
‘lease of low-value assets’ recognition exemptions for these leases. Lease payments on short-term
leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease
term.
In 2019, rental expenses relating to short-term and low value assets charged to operations and
administrative expenses amounted to P =11.8 million and P =11.4 million, respectively
(see Notes 14 and 15).
The Company as lessee (Prior to January 1, 2019)
The Company rents various office, parking and medical equipment on a per request basis. Rental
expenses charged to operations and administrative expenses as follows:
2018 2017
Cost of services and sales P
=9,769,154 =9,449,285
P
Operating expenses 8,348,255 6,593,707
P
=18,117,409 =16,042,992
P
*SGVFS038907*
- 45 -
25. Note to Statements of Cash Flows
a. Principal non-cash investing activities pertain to the unpaid acquisitions of property and equipment
amounting to P =33.7 million and P =39.5 million for years ended December 31, 2019 and 2018,
respectively, and unpaid acquisition of software and licenses amounting to = P1.0 million and
=0.1 million for the years ended December 31, 2019 and 2018, respectively.
P
b. Changes in liabilities arising from financing activities
Long-term Accrued Dividends

debt interest payable
(Note 11) (Note 11) (Note 12)
Balance as at December 31, 2016 =308,796,959
P =21,988,210
P =−
P
Cash flow (see Statements of Cash Flows)

Payments of/for:
Long-term debt (309,488,000) − −
Interest − (35,336,093) −
Dividends − − (144,921,283)
(691,041) (13,347,883) (144,921,283)
Non-cash:
Amortization of transaction costs 623,041 (623,041) −
Foreign exchange movement 68,000 − −
Accrued interest expense − 13,970,924 −
Dividends declared − − 145,254,629
Application of dividends against
subscriptions receivable − − (333,346)
691,041 13,347,883 144,921,283
Balance as at December 31, 2017 =−
P =−
P =−
P

Payments of dividends − − (185,417,303)
Non-cash:
Dividend declaration − − 185,925,925
− − 185,417,303
P =−
P =−
P

Payments of dividends − − (239,615,731)
Non-cash:
Dividend declaration − − 240,154,320
− − 239,615,731
P =−
P =−
P
*SGVFS038907*
- 46 -
26. Basic/Diluted Earnings per Share
The table below represents information necessary to compute the basic/diluted earnings per share:
2019 2018 2017

(a) Net income P
=515,024,450 =484,898,393
P =465,221,540
P
(b) Adjusted weighted average
number of shares 1,936,728,391 1,936,728,391 1,936,728,391
Basic/diluted earnings per share
(a/b) P
=0.2659 =0.2504
P =0.2402
P
There were no potentially dilutive shares as at December 31, 2019, 2018 and 2017. Thus, the basic
earnings per share is equal to the diluted earnings per share as of those dates.
27. Disclosures Required Under RR 15-2010 of the Bureau of Internal Revenue (BIR)
The Company reported and/or paid the following taxes, duties and license fees during the year:
Value Added Tax (VAT)

The Company is primarily engaged in the sale of medical and hospital services and lease of properties
which is incidental to its operation. Sec. 109(l) of the 1997 Tax Code, as amended, provides that
“Medical and hospital services are VAT Exempt”. However, lease of properties which are not
connected to medical and hospital services are subject to VAT. RA No. 9337 increased the VAT rate
from 10% to 12%, effective February 1, 2006.
Output VAT
The breakdown of the Company’s sales transaction for the year ended December 31, 2019 is as follows:
Base Amount Output VAT

Vatable sales:
Lease income P20,396,318
= P2,447,558
=
Others 113,676,290 13,641,155
VAT exempt 3,521,635,280 –
Total =3,655,707,888
P =16,088,713
P
Others pertains to sale of medicines and medical supplies to outpatient.
VAT exempt revenues from hospital services account for 96% of the total sales; hence the Company
does not recognize input VAT from purchases of goods and services from different suppliers/vendor
except purchases related to outpatient pharmacy and purchases of power from Meralco wherein the
Company claims 7.69% of the total bill as tenant’s share which is directly connected to vatable rental
income. Any VAT passed on by VAT registered suppliers of goods and services (except outpatient
pharmacy purchases and 7.69% VAT on Meralco bill) are recorded as part of the cost as mandated by
existing laws and regulation.
*SGVFS038907*
- 47 -
Input VAT
The amount of VAT input taxes claimed are broken down as follows:
Balance at January 1, 2019 =–
P
Current year’s domestic purchases/payments for:
Domestic purchase of goods other than capital goods −
Domestic purchase of services 11,238,998
Applied against output VAT (10,307,615)
Balance at December 31, 2019 =931,383
P
Input VAT claimed from Meralco for the year ended December 31, 2019 amounted to P
=1,185,737.
VAT payments made during the year amounted to P

=4,522,735.
Outstanding balance of output VAT and input VAT as at December 31, 2019 amounted to
=1,258,363 and =
P P931,383, respectively. Output VAT and input VAT are presented as part of “Statutory
payables” under “Accounts payables and other current liabilities” and “Other current assets”,
respectively, in the statements of financial position.
The Company’s vatable revenue are based on actual cash collections, hence may not be the same with
the amounts accrued in the statements of comprehensive income.
Withholding Taxes
The categories of the Company’s withholding taxes for the year ended December 31, 2019 are as
follows:
Expanded withholding taxes =112,731,541
P
Compensation and benefits 26,438,013
Final taxes 3,558,665
Withholding VAT –
Total =142,728,219
P
Taxes and Licenses and Other Matter

The Company did not have any importations nor purchases of products subject to excise tax in 2019.
The components of the Company’s taxes and licenses for the year ended December 31, 2019 are as
follows:
Business taxes =20,441,521

P
Real estate taxes 4,852,069
Fringe benefits tax 220,153
Community tax certificate 10,500
Barangay permit 15,000
Other taxes 2,216,291
Total =27,755,534
P
Permits and licenses included as part of business taxes amounted to P

=1,014,720 is presented as “Others”
under “Cost of Sales and Services”
*SGVFS038907*
- 48 -
Tax Assessments
On November 17, 2017, the Company received a Final Assessment Notice and Formal Letter of
Demand from the BIR covering the taxable year 2013 amounting to =
P674.9 million covering deficiency
income tax, documentary stamp tax, withholding tax on compensation, expanded withholding tax,
final tax, and compromise penalties. Consequently, the Company filed a Protest Letter on
November 27, 2017.
In 2019, the Company and the BIR had a meeting to discuss several issues regarding the arguments
advanced by the Company in its Protest Letter dated November 27, 2017 and the Company submitted
position letter to the BIR to formally respond to the issue and clarify the Company’s position indicated
in the Protest Letter.
As of date, the Company have yet to receive response from the BIR.
Aside from above mentioned, the Company does not have any outstanding deficiency tax assessments
as at December 31, 2019.
*SGVFS038907*
52
ANNEX “C”
MINUTES OF THE SHAREHOLDERS’ MEETING DATED APRIL 30, 2019
MINUTES OF THE ANNUAL MEETING

OF THE STOCKHOLDERS
OF ASIAN HOSPITAL, INC.
Held on April 30, 2019

Ballroom 1 & 2 Crimson Hotel,
Alabang, Muntinlupa City
I. Call to Order
After the invocation and national anthem, the Chairman, Mr. Augusto P. Palisoc
Jr., called the meeting to order. The Corporate Secretary, Mr. Ricardo M. Pilares III,
recorded the minutes of the proceedings.
II. Certification of Notice and Quorum
The Corporate Secretary, Mr. Pilares, certified that notices of the 2019 Annual
Stockholders’ Meeting (“AGM”), together with the Corporation’s Definitive Information
Statement (“DIS”), were sent to all stockholders of record of the Corporation by mail
and special messengerial services as provided in its By-Laws and existing rules of the
Securities and Exchange Commission (“SEC”). In addition, the notice and agenda for
the 2018 AGM were posted in the Corporation’s website on February 21, 2019 and
published in the Philippine Star on February 24 and 26, 2019.
The Chairman reported that based on the examination of the proxies submitted
and the list of stockholders personally present vis-à-vis the stock and transfer agent’s
stockholders register and their outstanding stockholdings as of April 10, 2019 (“Record
Date”), out of the total of 1,936,728,391 common shares issued, outstanding and
entitled to vote as of the Record Date, the holders of 1,663,727,351 common shares
were present today either in person or proxy, representing 85.90% of the Corporation’s
outstanding capital stock. Since a total of 85.90% or more than a majority of the
outstanding capital stock were present or duly represented in the AGM, the Chairman,
upon the certification of the Corporate Secretary, declared that there was a quorum
for the transaction of business by the stockholders.
SEC Form 17-IS

December 2003
53
III. Ratification of the Minutes of the Previous Meeting
The Chairman informed the stockholders that the next order of business is the
ratification of the minutes of the last annual stockholders’ meeting held on April 30,
2018. The Chairman informed the stockholders that copies of the minutes of the
meeting of the last annual stockholders’ meeting were sent to all stockholders of
record, together with the notices of the 2019 AGM and the DIS.
Upon motion duly made and seconded, the stockholders unanimously

approved the minutes of the 2018 AGM.
IV. Presentation of the Report of the Chief Executive Officer
Mr. Andres M. Licaros Jr. presented the updates on the operations and
financials of the Hospital. A copy of his presentation is attached herein as “Annex A”.
Among the salient points of his report are as follows:

1. Mr. Licaros reported that the Hospital celebrated its 16th year last 2018. For
2018, the Hospital focused on collaborations, teamwork and improvement in
various processes. The Asian Cancer Institute celebrated its third-year
anniversary with events such as “Love Your Colon” Awareness, “Beauty for
HOPE”, “Pink Positive, Think Positive” Breast Cancer Month Celebration, and
“Hair to Go, Life to Glow”. The Hospital also held a summit, wherein eleven (11)
neighboring hospitals were invited from various areas in the South.
2. Three institutes were launched in the previous year to address the top three (3)
diseases that are rampant throughout the country: Asian Cancer Institute, Asian
Brain Institute and Asian Cardiovascular Institute. Mr. Licaros then presented
the various activities that were conducted by the institutes.
3. Mr. Licaros presented the eight (8) domains of the Hospital: people, patient,
family, partners, admissions, discharge, facility and experience. In order to
improve patient experience, the Hospitals focuses on the employees such as
doctors, nurses and staff. The Hospital will continue to innovate the way the
patients are welcomed and how they are cared for during their stay and a more
efficient way to handle the discharge. He also mentioned that in 2018, the goal
was not to merely monitor patient satisfaction, but also patient experience which
will measure the total performance of the Hospital.
4. Mr. Licaros reported the notable performances of 2018, such as the residency
and fellowship programs. The Hospital has 3 residency programs which are the
SEC Form 17-IS

December 2003
54
general pediatrics, internal medicine and surgery. The fellowship program for
cardiology will be launched soon. The other programs included in 2018 are: (i)
Fracture Liaison Services; (ii) HIV/AIDS Treatment Facility Hub; (iii) Child Life
Program; (iv) Asian Ambulatory Facility: Diabetes Center; and (v) Corneal
Donation Program.
5. Mr. Licaros discussed the Performance Measurements. The Hand Hygiene
Compliance Rate, which is the main driver in prevention of infection in hospitals,
is at 80%, which is the World Health Organization standard, The average length
of stay in the Emergency Room is 3.37 hours with 2,500 more patients than in
the previous year. Only 0.01% of patients returned to the emergency
department within 72 hours. The In-Patient Experience scores remained above
the 50th percentile rank for all four quarters in 2018, peaking at the 78th
percentile rank in the second quarter. The Collaborative Care Planning is eighty
percent (80%) complied within the six months of implementation in 2018.
6. Financial performance of the Hospital as compared to the past five years was
also discussed in detail. He also added that the 2019 budget will breach the
Four Billion pesos by the end of the year. The Hospital declared cash dividends
for the year 2018 amounts to Php 120,077,160 with Php 0.062 per common
share.
7. Lastly, Mr. Licaros informed the shareholders that the Asian Hospital Charities
is now PCNC Recognized and has a BIR Donee Status.
Following the President’s report, the Chairman informed the shareholders that
the floor has been opened for shareholders of record to raise questions and/or
comments for the Board and/or the management. Dra. Jo inquired on the potential
initial public offering of MPHHI and how will this affect the individual shareholders of
the Hospital. Mr. Palisoc clarified that the MPHHI is the holding company for all the
hospitals of the MPIC Group and if there are any changes in the shareholdings of
MPHHI, it will just be at the MPHHI level.
Dra. Jo also inquired about the shareholders’ various investment. Mr. Palisoc
explained that due to the difference in the pricing during that time and 2018 year-end,
the value is now is roughly at Php 2.12 per share and the loss that the original
shareholders incurred have been recovered due to the increase in the share price. Mr.
Cochangco added that the dividends declarations throughout the years can also be
added to the recovery of the loss.
After the open forum where all issues have been adequately addressed by the
party concerned and upon motion duly made and seconded, the stockholders present
SEC Form 17-IS

December 2003
55
unanimously resolved to receive and adopt the report of the CEO and to adopt the
Corporation’s annual report for the year ended 31 December 2018.
V. Approval of the Audited Financial Statements of the Corporation for the

Year Ended December 31, 2018
The Chairman informed the stockholders that the next item in the agenda is the
approval of the audited financial statements of the Corporation as of December 31,
2018, which was included in the annual report, distributed to the stockholders prior to
the stockholders’ meeting in accordance with existing rules of the SEC. The Chairman
also mentioned that the salient points of the audited financial statements were included
in the report of the President and CEO.
Upon motion duly made and seconded, the stockholders unanimously

approved the audited financial statements of the Corporation as of December 31,
2018.
VI. Ratification of Corporate Acts
ratification of the acts of the Board of Directors and management since April 30, 2018,
as set forth in the minutes of the meetings of the Board of Directors of the Corporation,
the disclosures filed with the SEC, and the Corporation’s DIS distributed to the
stockholders. Upon motion duly made and seconded, the stockholders unanimously
resolved to ratify all the actions of the Board of Directors and management of the
Corporation since April 30, 2018.
VII. Election of Directors
election of directors for the year 2019-2020. The Chairman requested the Corporate
Secretary to enumerate the names of those who were nominated for election as
directors of the Corporation for the year 2019-2020. The Corporate Secretary
enumerated the following nominees:
A. Regular Directors

2. Mr. Augusto P. Palisoc Jr.
SEC Form 17-IS

December 2003
56
3. Mr. Andres M. Licaros Jr.

4. Mr. Jose Ma. K. Lim
5. Mr. David J. Nicol
6. Mr. Jose Noel C. de la Paz
7. Mr. Ricardo V. Buencamino
8. Dr. Sol Z. Alvarez
B. Independent Directors
1. Dr. Fernandino Jose A. Fontanilla

2. Dr. Carmelita I. Quebengco
3. Former Chief Justice Artemio V. Panganiban
The Corporate Secretary informed the shareholders that the qualifications of

the nominees were reviewed by the Corporation’s Nomination Committee and that a
brief statement of the business background of each nominee was included in the
Corporation’s DIS distributed to the stockholders. He also noted that considering that
there are as many candidates as there are seats in the Corporation’s Board of
Directors, all nominees are eligible to be elected as Directors of the Corporation for
the year 2019-2020.
After the motion was duly seconded, and no objections being raised, the
Chairman informed the body that the following were elected as directors of the
Corporation by the stockholders holding 85.90% of the outstanding capital stock of the
Corporation:
A. Regular Directors

2. Mr. Augusto P. Palisoc Jr.
3. Mr. Andres M. Licaros Jr.
4. Mr. Jose Ma. K. Lim
5. Mr. David J. Nicol
6. Mr. Jose Noel C. de la Paz
7. Mr. Ricardo V. Buencamino
8. Dr. Sol Z. Alvarez
SEC Form 17-IS

December 2003
57
B. Independent Directors
1. Dr. Fernandino Jose A. Fontanilla

2. Dr. Carmelita I. Quebengco
3. Former Chief Justice Artemio V. Panganiban
VIII. Appointment of External Auditor for 2019
After the election of directors of the Corporation, the Chairman opened the floor
for the nomination of the Corporation’s external auditor. The nomination of the
Corporation’s external auditor was closed after SGV & Co. was nominated.
Upon motion duly made and seconded, the stockholders holding 85.90% of the
Corporation’s outstanding capital stock unanimously re-appointed SGV & Co. as the
Corporation’s external auditor for the year 2019-2020.
IX. Adjournment
There being no other matters to discuss, and upon motion duly made and
seconded, the meeting of the stockholders was adjourned.
Prepared by:

Secretary of the Meeting
Noted by:
AUGUSTO P. PALISOC JR.

Chairman of the Meeting
SEC Form 17-IS

December 2003
58
ANNEX “D”
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
AHI is already debt free in 2017 and has tremendously increase its cash position,
thereby all major capital expenditure, new and replacements, are funded from cash generated
from operations. The Company does not intend to raise additional funds nor to obtain new
loan to fund its capital expenditures and has no product research and development plan in the
next twelve months. The Company is expecting to purchase medical equipment in 2021 as
replacement only of existing equipment.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING

AND FINANCIAL DISCLOSURE
Sycip Gorres Velayo & Co. is the current independent auditor of AHI. SGV has been
the independent auditor of AHI since 1998. The partner-in-charge of the audit for the past
fiscal years, including the year ended 2003, was Mr. Gemilo San Pedro. The partner-in-charge
of the audit for the years ended 2004 until 2008 was Mr. Aldrin Cerrado. The signing partner
of SGV is Ms. Aileen Saringan from 2014 to 2017 and Ms. Julie Christine Mateo for 2009 to
2013 and for 2018 to 2019.
AHI has the same independent public auditor, has always complied with the provisions
on long association of personnel (including partner rotation) with an audit client as prescribed
in the Code of Ethics for Professional Accountants in the Philippines as adopted by the BOA
and PRC and such other standards as may be adopted by the Commission.
There have been no disagreements between SGV and AHI on any matter of
accounting principle or policy, or regarding AHI’s financial statements or disclosures.
SEC Form 17-IS

December 2003
Annex "E-1"
Annex "E-2"
Annex "E-3"

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ASIAN HOSPITAL, INC.

The following shall be the agenda of the meeting:

Duly accomplished proxies shall be submitted on or before September 14, 2020 at

Filinvest Corporate City, Alabang, Muntinlupa City and/or by email to

Stockholders intending to participate by remote communication should notify the

Very truly yours,

RICARDO M. PILARES III

SEC FORM 20-IS

INFORMATION STATEMENT PURSUANT TO SECTION 20

1. Check the appropriate box:

[] Preliminary Information Statement

[x] Definitive Information Statement

2. Name of Registrant as specified in its charter Asian Hospital, Inc. (“AHI”)

4. SEC Identification Number AS094-00011249

5. BIR Tax Identification Number 004-502-062-000

7. Registrant’s telephone number, including area code (632) 771-9000 to 9002

8. Date, time and place of the meeting of security holders

Date: September 15, 2020

9. Approximate date on which the Information Statement is first to be sent or given to

11. None of AHI’s securities is listed on the Philippine Stock Exchange.

INFORMATION REQUIRED IN INFORMATION STATEMENT

1. Date, time and place of meeting of security holders

Date: September 15, 2020

Mailing Address: 2205 Civic Drive, Filinvest Corporate City

2. Dissenters' Right of Appraisal

3. Interest of Certain Persons in or Opposition to Matters to be Acted Upon

B. CONTROL AND COMPENSATION INFORMATION

SEC Form 17-IS

4. Voting Securities and Principal Holders Thereof

There is no condition precedent to the exercise of the stockholders’ cumulative voting

(d) (i)Security Ownership of Certain Record and Beneficial Owners

Title of Name and Address of Name of No. of Percen

SEC Form 17-IS

10th Floor MGO Building,

(d) (ii) Security Ownership of Management, as of July 31, 2020:

Title of Name of Beneficial Amount and Nature of Citizenship Percent of

SEC Form 17-IS

Andres M. Licaros Jr.

(d) (iii) Voting Trust Holders of 5% or more

(e) Change in Control

SEC Form 17-IS

5. Directors and Executive Officers

Date of First Election to

Manuel V. Pangilinan 73 Filipino December 6, 2011

Jose Ma. K. Lim 67 Filipino December 6, 2011

David J. Nicol 60 Australian December 6, 2011

Augusto P. Palisoc Jr. 62 Filipino December 6, 2011

Andres M. Licaros Jr. 61 Filipino December 6, 2011

Ricardo V. Buencamino 75 Filipino February 27, 2013

Jose Noel C. de la Paz 63 Filipino April 30, 2015

SEC Form 17-IS

Sol Z. Alvarez 87 Filipino August 7, 2015

Retired Chief Justice

FERNANDINO JOSE A. FONTANILLA is a medical doctor by profession and one of

MANUEL V. PANGILINAN assumed chairmanship of the Board of Metro Pacific

SEC Form 17-IS

AUGUSTO P. PALISOC JR. is the Chairman of the Board of Directors of the

SEC Form 17-IS

ANDRES M. LICAROS JR. is a licensed Civil Engineer with three decades of

He has implemented a management philosophy in Asian Hospital and Medical Center