Business Development and Partnerships - The company has established a 15-year supply agreement with Suneva Medical, Inc. for the Belotero product line, granting exclusive distribution rights in Greater China[7] - A 15-year supply agreement was reached with Suneva Medical, Inc. for the sale of Belifil collagen products in January 2024[18] - The company has entered into a supply agreement for the acquisition of distribution rights for the Belifill product and Suneva equity[82] - The company has entered into a conditional agreement to acquire up to 9.0% equity in Hangzhou Tianxin Medical Beauty Hospital for a maximum consideration of RMB 25.0 million[81] Financial Performance - The company achieved total revenue of approximately RMB 199.3 million for the year ended December 31, 2024, representing a year-on-year increase of 5.3% compared to RMB 189.4 million in 2023[21] - The gross profit margin for 2024 was approximately 35.8%, down from 37.8% in 2023, with the gross profit margin for medical beauty device sales at 65.9%, down from 75.6% in 2023[21] - The company reported a net loss of approximately RMB 63.3 million for the year, compared to a net loss of RMB 37.8 million in 2023, with a loss attributable to shareholders of approximately RMB 59.2 million, up from RMB 32.5 million in 2023[21] - The company's total revenue for 2024 is approximately RMB 199.3 million, representing a 5.3% increase from RMB 189.4 million in 2023[32] - Revenue from medical beauty services was approximately RMB 142.1 million in 2024, a decrease of 18.8% from RMB 174.9 million in 2023[53] - Revenue from medical beauty equipment products reached RMB 57.2 million in 2024, a significant increase from RMB 14.5 million in 2023[32] Market Trends and Growth Potential - Revenue from minimally invasive medical beauty services is showing significant growth, reflecting higher market demand[7] - The market for non-surgical medical beauty procedures is expected to grow steadily, with increasing penetration rates in China[20] - The domestic market for skin fillers, particularly collagen fillers, shows significant growth potential due to the increasing demand for anti-aging solutions[28] - The company recognizes the growing consumer interest in light medical beauty and anti-aging treatments, which are becoming increasingly popular due to their affordability and minimally invasive nature[101] Research and Development - The company is actively developing new skin injection filler products in collaboration with renowned domestic universities, aiming to enhance its product offerings[7] - The company is increasing investment in research and development for new medical beauty devices, aiming to cover the entire industry chain from downstream to upstream[22] - The company is accelerating the research and development of its collagen injection products, with an investment of approximately RMB 4.5 million in 2024[34] - The company plans to focus on developing non-surgical medical beauty services, increasing investment in technology and research, and enhancing sales and R&D of three categories of medical beauty equipment[101] Operational Efficiency and Strategy - The company aims to optimize its sales network by increasing the number of direct sales teams and agents, with a focus on improving operational efficiency[27] - The company plans to enhance its non-surgical service offerings, focusing on minimally invasive procedures that are gaining popularity among consumers[35] - The company is considering strategic acquisitions of medical beauty institutions or medical device companies to strengthen its market position[41] - The company plans to expand its medical beauty institution network, allocating 71.0% of the net proceeds amounting to HKD 58.0 million, with HKD 49.4 million already utilized and HKD 8.6 million expected to be used by 2025[89] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all applicable provisions during the year[123][124] - The board consists of three executive directors and three independent non-executive directors, promoting a balanced composition for effective oversight[130] - The company emphasizes a strong corporate culture and values, focusing on ethical business practices and sustainable development to attract and retain talent[125] - The company will conduct annual reviews of its internal controls and compliance systems to prevent future regulatory breaches[98] Employee and Stakeholder Engagement - The company has committed to competitive compensation and professional development for its medical staff, with annual performance reviews influencing salary and bonus determinations[87] - The company emphasizes two-way communication with shareholders and has established various channels for transparent information dissemination[185] - The performance bonus structure is based on both company and individual performance metrics[186] - The company has appointed a dedicated investor relations team to facilitate communication with shareholders and investors, emphasizing the importance of feedback for strategic development[103] Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in sustainability, environmental protection, employee care, and corporate responsibility for the year 2024[196] - The company has established policies related to environmental, social, and corporate governance responsibilities to enhance its ESG governance[200] - The company is committed to understanding stakeholder expectations and concerns regarding ESG issues to optimize its governance and performance[200] - The company has implemented appropriate ESG risk management measures and internal control systems to address potential ESG risks effectively[200]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 199,342,000, representing an increase of 5.2% from RMB 189,384,000 in 2023[4] - Gross profit for the same period was RMB 71,407,000, slightly down from RMB 71,493,000 in 2023, indicating a marginal decrease of 0.12%[4] - The company reported a net loss of RMB 63,263,000 for the year, compared to a net loss of RMB 37,779,000 in 2023, reflecting an increase in losses of 67.5%[4] - The basic and diluted loss per share for the year was RMB 0.1111, compared to RMB 0.0675 in 2023, indicating a worsening of 64.4%[4] - The adjusted loss before tax was RMB (15,330) thousand, a 33.9% improvement from RMB (23,200) thousand in 2023[53] - The adjusted net loss for the year was RMB (18,762) thousand, a 27.8% improvement from RMB (25,969) thousand in 2023[53] - The group reported a pre-tax loss of RMB 65,257,000 for 2024, compared to a pre-tax loss of RMB 35,010,000 in 2023, indicating a significant increase in losses[33] Assets and Liabilities - Total current assets increased to RMB 90,434,000 from RMB 79,616,000, marking an increase of 13.4%[5] - Total non-current assets decreased to RMB 159,489,000 from RMB 193,983,000, a decline of 17.8%[5] - The company's total liabilities increased to RMB 154,405,000 from RMB 141,009,000, an increase of 9.5%[6] - The equity attributable to the owners of the parent company decreased to RMB 104,134,000 from RMB 138,115,000, a decline of 24.6%[6] - As of December 31, 2024, cash and bank balances were approximately RMB 289 million, down from RMB 398 million in 2023, primarily due to costs incurred for acquiring distribution rights for collagen injection products[79] - The total debt as of December 31, 2024, was approximately RMB 1,544 million, with a debt-to-equity ratio of approximately 161.7%, up from 106.3% in 2023[87] Revenue Segmentation - Medical beauty services generated RMB 142,097 thousand in revenue for 2024, down from RMB 174,910 thousand in 2023, indicating a decline of about 18.8%[25] - Medical beauty device products saw a significant increase in revenue, rising to RMB 57,216 thousand in 2024 from RMB 14,474 thousand in 2023, marking a growth of approximately 295.5%[25] - The consulting services segment contributed RMB 29 thousand in revenue for 2024, compared to no revenue reported in 2023[25] - Revenue from surgical services fell to approximately RMB 4.1 million in 2024, a decline of 41.3% from RMB 6.9 million in 2023, attributed to changing consumer preferences[63] - Revenue from medical beauty device sales surged by 295.3% to approximately RMB 57.2 million in 2024, compared to RMB 14.5 million in 2023[61] Expenses and Costs - Research and development expenses decreased to RMB 717,000 from RMB 1,602,000, a reduction of 55.2%[4] - Capital expenditures for the year 2024 totaled RMB 43,650 thousand, which included investments in property, plant, equipment, and intangible assets[23] - The company reported a total employee cost of approximately RMB 66.7 million for the year, a decrease of RMB 2.1 million compared to RMB 68.8 million in 2023, representing 33.5% of total revenue for 2024[96] - Administrative expenses in 2024 were approximately RMB 418 million, an increase of RMB 17 million from RMB 401 million in 2023, mainly due to increased share-based payment expenses[75] - Sales and distribution expenses in 2024 were approximately RMB 477 million, a decrease of about 8.8% from RMB 523 million in 2023, attributed to restructuring the marketing system[74] Strategic Plans and Developments - The company plans to apply the new and revised International Financial Reporting Standards (IFRS) upon their effective date, which includes IFRS 18, IFRS 19, and amendments to IFRS 9 and IFRS 7[12][13][14][17]. - The company plans to enhance non-surgical service capacity by introducing the latest medical beauty technologies and increasing investment in minimally invasive and skin beauty services[44] - The company plans to establish a medical beauty training center in Hainan, enhancing the professional level of doctors and improving service quality[47] - The company aims to expand its sales channels through digital marketing and partnerships with suppliers and distributors to enhance operational efficiency[48] - The company is considering strategic acquisitions of suitable medical beauty institutions or medical device companies to strengthen its market position[50] Compliance and Governance - The audit committee has reviewed and approved the annual performance of the group, ensuring compliance with applicable accounting standards and regulations[119] - The company has acknowledged a compliance oversight regarding the announcement of supply agreements and service agreements, committing to enhance training and internal controls to prevent future occurrences[109] - The company has established a competitive compensation structure for its medical staff, with annual performance reviews influencing salary and bonus determinations[98] Market Trends - The medical beauty industry is shifting from niche to mass consumption, driven by rising consumer awareness and the popularity of non-surgical procedures[112] - The company plans to focus on developing non-surgical medical beauty services and increase investment in technology and research[112]

Roother Raily Assilisite Medicine International Holdings Limited 瑞 魔 醫 美 國 際 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號：2135 目錄 公司資料 2 管理層討論及分析 4 企業管治及其他資料 14 獨立審閱報告 21 中期簡明綜合損益及其他全面收益表 22 中期簡明綜合財務狀況表 23 中期簡明綜合權益變動表 25 中期簡明綜合現金流量表 26 中期簡明綜合財務資料附註 28 公司資料 曹德全先生（主席） 傅海曙先生 劉騰先生 | --- | --- | |-------------------------|------------------------------------| | | | | 董事會 | 總部及中國主要營業地點 | | 執行董事 | 中國 | | 傅海曙先生 （主席） | 杭州市 | | 宋建良先生 （行政總裁） | 拱墅區 | | 王瀛先生 | 中山北路 290 號 | | 獨立非執行董事 | 民航大廈 3 至 5 樓 | | 曹德全先生 | 香港主要營業地點 | | 劉騰先生 | 香 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 117,475,000, representing a 20.3% increase from RMB 97,580,000 in the same period of 2023[2] - Gross profit for the same period was RMB 48,467,000, up 24.1% from RMB 39,029,000 year-on-year[2] - The company reported a net loss of RMB 2,997,000 for the six months ended June 30, 2024, an improvement from a net loss of RMB 4,096,000 in the prior year[2] - Basic and diluted loss per share decreased to RMB 0.32 from RMB 0.47 year-on-year[2] - The group reported a loss before tax of RMB 2,257 thousand for the six months ended June 30, 2024, compared to a loss of RMB 2,796 thousand for the same period in 2023, showing an improvement in financial performance[10] - The total loss for the reporting period was approximately RMB 3.0 million, compared to a loss of RMB 4.1 million for the six months ended June 30, 2023. The loss attributable to the parent company was about RMB 1.6 million, down from RMB 2.3 million in the previous period[52] Revenue Breakdown - Revenue from medical beauty services was RMB 83,026 thousand for the six months ended June 30, 2024, compared to RMB 85,139 thousand in the same period of 2023, indicating a slight decline of about 2.5%[13] - Revenue from medical beauty equipment products increased significantly to RMB 34,420 thousand for the six months ended June 30, 2024, up from RMB 12,441 thousand in the same period of 2023, reflecting a growth of approximately 176.5%[13] - Revenue from service offerings was RMB 83,055,000, while revenue from medical device products was RMB 34,420,000 for the six months ended June 30, 2024[14] - Revenue from medical beauty services was approximately RMB 83.0 million, a decrease of about 2.5% from RMB 85.1 million for the six months ended June 30, 2023, due to a decline in average transaction value amid intense industry competition[41] - Revenue from the sale of medical beauty equipment was approximately RMB 34.4 million, a significant increase of about 176.7% compared to RMB 12.4 million for the six months ended June 30, 2023, attributed to the introduction of high-priced collagen injection products[41] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 226,006,000, an increase from RMB 193,983,000 as of December 31, 2023[3] - Current assets totaled RMB 98,884,000 as of June 30, 2024, compared to RMB 79,616,000 at the end of 2023, reflecting a 24.1% increase[3] - Current liabilities increased to RMB 137,761,000 from RMB 92,159,000, resulting in a net current liability of RMB 38,877,000[3] - The total assets of the group as of June 30, 2024, were RMB 324,890 thousand, an increase from RMB 273,599 thousand as of December 31, 2023, representing a growth of about 18.8%[12] - The total liabilities of the group as of June 30, 2024, were RMB 174,342 thousand, compared to RMB 141,009 thousand as of December 31, 2023, indicating an increase of approximately 23.6%[12] - The total debt was approximately RMB 174.3 million as of June 30, 2024, resulting in a debt-to-equity ratio of approximately 115.8%, up from 106.3% as of December 31, 2023[59] Operational Expenses - The company incurred research and development expenses of RMB 446,000 during the reporting period[2] - The company experienced a significant increase in employee benefits expenses, totaling RMB 26,487,000 for wages and salaries, compared to RMB 25,814,000 in the previous year[17] - Selling and distribution expenses were approximately RMB 23.7 million, an increase of about RMB 0.9 million compared to RMB 22.8 million for the six months ended June 30, 2023[47] - Administrative expenses were approximately RMB 20.2 million, up from approximately RMB 18.5 million for the six months ended June 30, 2023, primarily due to increased employee costs related to managing medical beauty equipment products[48] - The group’s total unallocated expenses were RMB 11,878 thousand for the six months ended June 30, 2024, compared to RMB 10,636 thousand for the same period in 2023, reflecting an increase in operational costs[10] Strategic Developments - The company acquired distribution rights for RMB 44.79 million through a 15-year agreement with a Class III medical device supplier[24] - The company has established a medical technology exchange platform and a medical technology experience learning center in collaboration with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau[34] - The company is actively developing a research and manufacturing platform for advanced medical beauty device products, with a factory area of approximately 4,660 square meters dedicated to skin injection products[38] - The company aims to enhance the training center's role by providing a platform for medical device manufacturers to showcase their products and developing high-quality courses for domestic medical beauty practitioners[35] - The company has shifted its focus from surgical implants to skin injection products in response to market changes, indicating a strategic diversification in its medical beauty device offerings[36] - The company plans to continue collaborating with renowned domestic universities to strengthen its position as a leading supplier of non-surgical medical beauty service products[38] Market Trends - The medical beauty market is expected to grow, driven by increasing consumer demand and the rise of non-surgical procedures, particularly in skin management and anti-aging[69] - The company emphasizes personalized medical beauty services as a future trend, focusing on quality management and tailored solutions for consumers[69] Corporate Governance - The company has adhered to corporate governance principles, ensuring transparency and accountability throughout the reporting period[72] - The company has not declared any interim dividends during the reporting period[70] Shareholder Actions - The company granted stock options to qualified individuals for a total of 48,630,462 shares, representing approximately 2.33% of the issued share capital as of January 26, 2024[75] - A second grant of stock options for 47,430,466 shares was made on February 23, 2024, accounting for about 2.27% of the issued share capital[75] - The board proposed a share consolidation of one share for every five existing shares, which was approved at the special general meeting on March 15, 2024[76] - The company plans to raise up to approximately HKD 20.8 million through a rights issue, with net proceeds expected to be around HKD 19.0 million after expenses[76] - Of the net proceeds, approximately HKD 9.5 million (50.0%) will be used for purchasing equipment and raw materials, HKD 7.6 million (40.0%) for regulatory registration of medical beauty devices, and HKD 1.9 million (10.0%) for general working capital[76]

Business Operations - The flagship store, Hangzhou Ruile Medical Beauty Hospital, was re-evaluated as a "5A" level medical beauty institution in December 2023, indicating its leading position in management, patient safety, clinical technology, and service quality[4]. - The company operates five private profit-making medical beauty institutions, with three located in Zhejiang Province, one in Anhui Province, and one in Hainan Province[4]. - The factory for skin injection products, located in Suzhou, covers an area of approximately 4,660 square meters and is currently in the trial production phase for injection samples[5]. - The company has established partnerships with well-known domestic universities to jointly develop new skin injection products, aiming to strengthen its position as a leading supplier of non-surgical medical beauty services[5]. - Medical beauty services include surgical, minimally invasive, and skin beauty services, with a focus on enhancing aesthetic appeal and reducing recovery time[6][8][9]. - The company provides dental beauty services, including orthodontics, dental implants, and teeth whitening, enhancing customer experience and retention through cross-selling[10]. - The company offers medical beauty management consulting services, leveraging its experience in managing medical beauty institutions and expertise in sales and marketing[11]. Financial Performance - The company achieved a total revenue of approximately RMB 189.4 million for the year ended December 31, 2023, representing a year-on-year increase of 15.1% compared to RMB 164.5 million in 2022[24]. - The gross profit margin for 2023 was approximately 37.8%, down from 40.6% in 2022, with the dermatology segment's gross profit margin at 43.3% compared to 43.8% in the previous year[24]. - The company reported a net loss of approximately RMB 37.8 million for 2023, compared to a net loss of RMB 20.2 million in 2022, with a loss attributable to shareholders of RMB 32.5 million versus RMB 15.9 million in 2022[24]. - The company recorded a total comprehensive loss of approximately RMB 378 million in 2023, compared to a loss of RMB 202 million in 2022, with adjusted net loss of approximately RMB 189 million in 2023, up from RMB 99 million in 2022[75]. - The company reported a revenue of RMB 189.384 million for 2023, an increase of 15.1% compared to RMB 164.522 million in 2022[48]. - The gross profit for 2023 was RMB 71.493 million, reflecting a growth of 7.1% from RMB 66.783 million in the previous year[48]. - The pre-tax loss increased by 58.4% to RMB 35.010 million in 2023, compared to RMB 22.101 million in 2022[48]. Market Trends - The medical beauty market in China is projected to grow at a compound annual growth rate (CAGR) of 16.1% from 2021 to 2026, significantly outpacing the global market growth[23]. - The non-surgical medical beauty market accounted for 52% of the overall medical beauty market share in China in 2022, indicating a growing consumer preference[27]. - The domestic dermal filler market, including hyaluronic acid and polylactic acid, presents significant growth opportunities, particularly in collagen fillers[29]. - The online promotion trend in the medical beauty industry is expected to become a significant method for consumer engagement and service acquisition[32]. Customer Engagement - The number of active customers in the medical beauty segment rose by approximately 12.0% from about 49,900 in 2022 to around 55,900 in 2023[38]. - The average spending per customer increased by approximately 3.3%, from RMB 3,000 in 2022 to RMB 3,100 in 2023[38]. - The number of active customers for skin beauty services increased to 39,500 in 2023 from 32,600 in 2022, a growth of 21.5%[52]. Research and Development - The company plans to increase investment in R&D activities for new medical device products at its Suzhou facility[24]. - The research and development expenses for Suzhou Yonglan in 2023 amounted to approximately RMB 7.7 million, an increase from RMB 5.8 million in 2022[37]. - The company plans to focus on non-surgical medical beauty services and increase investment in technology and research to develop personalized anti-aging services and products[116]. Strategic Initiatives - The company is focusing on the sales of skin injection products such as collagen and hyaluronic acid fillers, with plans to conduct market research and establish a new sales network[13]. - The company aims to establish a nationwide sales network for medical beauty equipment through a distributor model[30]. - The company has established a strategic partnership with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau to build a medical beauty training center[20]. - A new medical technology exchange platform is being established in collaboration with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau[43]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, which is considered a balanced composition to enhance independent review and oversight[150]. - The company has adopted strict corporate governance principles to enhance transparency and accountability, aligning with the stock exchange's guidelines[143]. - The board has established a remuneration committee to review the compensation packages of senior management and directors for the year 2023[171]. - The company has established an internal audit department that reviewed the risk management and internal control systems at least once during the year[186]. Employee Management - As of December 31, 2023, the group has 335 employees in China, an increase from 322 employees as of December 31, 2022[101]. - Total employee cost for 2023 was approximately RMB 68.8 million, an increase of RMB 5.0 million from RMB 63.8 million in 2022, accounting for 36.3% of total revenue in 2023 (2022: 38.8%)[102]. - The company’s employee headcount increased from 322 in 2022 to 335 in 2023, with a notable rise in sales, marketing, and customer service personnel[102]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[132]. - New product launches are expected to contribute an additional 5 million in revenue, with a focus on innovative medical beauty solutions[132]. - The company is expanding its market presence, targeting an increase in service locations by 25% over the next two years[132]. - A strategic acquisition is planned to enhance service offerings, with an estimated investment of 10 million[132]. Investor Relations - The company emphasizes maintaining high standards in investor relations to enhance shareholder value[119]. - The company has a dedicated investor relations team to facilitate communication with shareholders and potential investors[119]. - The company encourages feedback from investors to better formulate its development strategy[119].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 189,384,000, an increase of 15.1% from RMB 164,522,000 in 2022[5] - Gross profit for the same period was RMB 71,493,000, representing a gross margin of 37.7%, compared to RMB 66,783,000 in 2022[5] - The company reported a net loss of RMB 37,779,000 for the year, which is a 86.3% increase from the net loss of RMB 20,247,000 in 2022[5] - The company reported a loss before tax of RMB 35,010 thousand for the year, compared to a loss of RMB 22,101 thousand in 2022[24] - The company recorded a total annual loss attributable to equity holders of approximately RMB 32.5 million in 2023, compared to RMB 15.9 million in 2022[45] - The company reported a basic loss per share of RMB 7.77 for 2023, compared to RMB 3.81 for 2022, indicating a significant increase in losses per share[39] - The group reported a pre-tax loss of RMB 35,010,000 for 2023, compared to a loss of RMB 22,101,000 in 2022, representing a year-over-year increase of 58.5% in losses[33] Revenue Breakdown - Revenue from medical beauty services reached RMB 174,910 thousand, up 15.3% from RMB 151,661 thousand in the previous year[25] - Revenue from medical beauty equipment products increased to RMB 14,474 thousand, a rise of 12.8% compared to RMB 12,834 thousand in 2022[25] - Revenue from minimally invasive beauty services and skin beauty services was approximately RMB 830 million and RMB 833 million, representing increases of 12.3% and 30.8% compared to 2022[72] - The revenue from cosmetic surgery services in 2023 was approximately RMB 69 million, a decrease of 33.3% from RMB 104 million in 2022, primarily due to technological advancements and changing consumer preferences[72] Expenses and Costs - Research and development expenses decreased to RMB 1,602,000 from RMB 2,000,000, indicating a focus on cost management[5] - The company recognized impairment losses of RMB 11,970 thousand, compared to RMB 6,378 thousand in the previous year[24] - The total sales cost for 2023 was approximately RMB 1,179 million, an increase of about 20.6% from RMB 977 million in 2022[73] - Selling and distribution expenses for 2023 were approximately RMB 523 million, up about 6.1% from RMB 493 million in 2022, mainly due to increased live-streaming promotion costs[83] - Administrative expenses for 2023 were approximately RMB 401 million, an increase of about RMB 42 million from RMB 359 million in 2022[84] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 273,599 thousand, down from RMB 302,651 thousand in 2022[24] - Total liabilities increased to RMB 141,009 thousand, compared to RMB 136,774 thousand in the previous year[24] - Total current liabilities increased to RMB 92,159,000 from RMB 76,413,000, indicating a rise in short-term financial obligations[6] - The company's equity attributable to owners of the parent decreased to RMB 138,115,000 from RMB 166,080,000, reflecting a decline in shareholder value[7] - The total debt of the group as of December 31, 2023, was approximately RMB 141.0 million, compared to RMB 136.8 million as of December 31, 2022, resulting in a debt-to-equity ratio of approximately 106.3%, up from 82.5% in the previous year[96] Cash Flow and Liquidity - Cash and bank balances decreased significantly to RMB 39,790,000 from RMB 78,779,000, reflecting liquidity challenges[6] - The group has established a cautious treasury policy, continuously assessing the financial status of clients to mitigate credit risk and closely monitoring liquidity to meet funding needs[99] Strategic Plans and Market Position - The company plans to focus on expanding its medical beauty services and product offerings in the coming year[24] - The company aims to increase market share for its medical beauty equipment products by enhancing sales networks and investing in new product development[57] - The company plans to allocate approximately 40% of the net proceeds from the share offering for the registration of medical beauty devices with the National Medical Products Administration[59] - The company plans to raise up to approximately HKD 20.8 million through a rights issue, with an estimated net proceeds of about HKD 19.4 million[126] Corporate Governance and Compliance - The audit committee has reviewed and approved the consolidated financial statements for the year ending December 31, 2023, ensuring compliance with applicable accounting standards and regulations[144] - The company has adopted the corporate governance code as per the listing rules, emphasizing transparency, accountability, and independence[133][134] - The company has confirmed compliance with the standards set forth in the code of conduct for securities trading by all directors during the year[132] Employee and Operational Metrics - The total employee cost was approximately RMB 68.8 million, an increase of RMB 5.0 million from RMB 63.8 million in 2022, accounting for 36.3% of total revenue in 2023 (2022: 38.8%)[115] - The company had a total of 335 employees in China as of December 31, 2023, up from 322 employees in 2022[114] Market Trends and Industry Outlook - The medical beauty industry is expected to experience strong growth, supported by government policies emphasizing the development of anti-aging technologies and services[128] - The company will focus on developing non-surgical medical beauty services and increase investment in technology and research for personalized anti-aging services and products[128]

Financial Performance - The company's revenue for the reporting period was approximately RMB 97.6 million, a 3.4% increase from RMB 94.4 million in the same period of 2022[6]. - The company reported a loss of approximately RMB 4.1 million for the period, compared to a profit of RMB 0.1 million in the same period of 2022, with a loss attributable to shareholders of approximately RMB 2.3 million[6]. - Total revenue for the six months ended June 30, 2023, was approximately RMB 976 million, an increase of 3.4% compared to RMB 944 million for the same period in 2022[20]. - Revenue from medical beauty services was approximately RMB 851 million, a decrease of 3.0% from RMB 878 million in the same period last year, primarily due to a decline in cosmetic surgery services[20]. - Revenue from medical beauty equipment sales surged by approximately 88.6%, reaching RMB 124 million compared to RMB 66 million in the previous year[20]. - Gross profit for the period was approximately RMB 390 million, down 12.0% from RMB 444 million for the same period in 2022, with a gross margin of 40.0%, a decrease of 7.0 percentage points[24]. - The gross profit margin for medical beauty services was approximately 34.2%, down from 44.6% in the previous year, reflecting increased fixed costs and higher material costs for premium projects[26]. - Sales costs increased by approximately 17.1% to RMB 586 million from RMB 500 million in the same period last year, driven by higher material costs and increased rental and renovation expenses[22]. - Other income and gains decreased to approximately RMB 12 million from RMB 24 million in the previous year[28]. - Selling and distribution expenses decreased to approximately RMB 228 million from RMB 243 million in the same period last year[29]. - Administrative expenses remained stable at approximately RMB 185 million compared to RMB 186 million in the previous year[30]. - The decline in cosmetic surgery revenue was attributed to a shift in consumer preferences towards less invasive and safer procedures[21]. - The group recorded a total loss of approximately RMB 4.1 million for the reporting period, compared to a profit of RMB 0.1 million for the six months ended June 30, 2022[33]. Market and Operational Strategy - The company plans to expand the scale of RAILY flagship stores and enhance non-surgical medical beauty services, particularly in minimally invasive and skin beauty services[7]. - The recovery of the medical beauty market is gradual, with consumer sentiment and foot traffic slowly improving post-pandemic[7]. - The company aims to introduce advanced medical technologies and update equipment and products to meet consumer demand for new offerings[7]. - The company is implementing a digital management model and utilizing big data to develop marketing strategies based on consumer behavior analysis[11]. - The company aims to enhance its marketing efforts by establishing a Multi-Channel Network (MCN) to convert live streaming traffic into new customer acquisition channels, thereby increasing brand value and revenue[14]. - The company is expanding its market share in the medical beauty device sector by leveraging the advantages of expanded polytetrafluoroethylene (e-PTFE) materials, with a focus on increasing sales through improved distribution networks[15]. - The company plans to establish a medical technology exchange platform in collaboration with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau, focusing on medical beauty services, medical device sales, and educational training[12]. - The company aims to transform its operational direction from patient attraction to gathering renowned doctors, thereby increasing its customer base in the Hainan Boao Lecheng area[12]. - The market for non-surgical medical beauty projects is expected to grow significantly, driven by increased consumer awareness and acceptance[57]. - The company aims to enhance its minimally invasive beauty services and skin beauty services, focusing on customer retention and experience[57]. Investment and Financial Commitments - The company is investing approximately RMB 150 million in Suzhou Yonglan Biomedical Technology Co., Ltd. over the next 36 months to build a production facility for skin injection products, covering an area of about 4,660 square meters[17]. - The investment plan for Suzhou Yonglan includes RMB 70 million for product registration fees, RMB 25 million for facility purchase, and RMB 25 million for equipment procurement and construction[17]. - The company plans to complete the infrastructure construction of the Suzhou Yonglan factory by the second half of the year and aims to produce collagen products that address various skin issues[17]. - The company intends to apply for its first Class III medical device registration certificate next year, collaborating with renowned domestic universities for research and development[17]. - The group has signed but not yet provided for commitments of approximately RMB 5.5 million as of June 30, 2023, primarily for lease property renovations[36]. - The group’s capital expenditure for the reporting period was approximately RMB 8.2 million, compared to RMB 9.3 million for the six months ended June 30, 2022[37]. - The group has capital commitments for leased property renovations amounting to RMB 5,512,000 as of June 30, 2023, compared to RMB 1,122,000 as of December 31, 2022, indicating a significant increase[125]. Shareholder and Governance Information - The company’s major shareholder, Mr. Fu Haishu, holds approximately 53.10% of the company's shares[60]. - The company adheres to good corporate governance principles to enhance shareholder value and ensure transparency[59]. - As of June 30, 2023, the major shareholder, Ruide Consulting Management Limited, holds 1,109,283,463 shares, representing 53.10% of the company's equity[62]. - Jin Chunmiao, as a spouse, also holds 1,109,283,463 shares, equating to 53.10% of the company's equity[62]. - Meitianxia Responsibility (Hong Kong) Limited owns 129,128,745 shares, which is 6.18% of the company's equity[62]. - China Eastern Asset Management (International) Holdings Limited holds 112,244,454 shares, representing 5.37% of the company's equity[62]. - The total number of shares issued by the company as of June 30, 2023, is 2,089,040,000 shares[67]. - The beneficial ownership structure indicates that Shanghai Donghua Health Management Partnership (Limited Partnership) holds 112,244,454 shares, with a significant portion owned by various controlled entities[67]. - The company has adopted the standard code of conduct for securities trading as per the listing rules[65]. - All directors confirmed compliance with the standard code during the reporting period[65]. - There were no arrangements made for directors or their immediate family members to acquire shares or bonds of the company during the reporting period[66]. - The company did not declare any interim dividends during the reporting period, consistent with the previous period[70]. Cash Flow and Financial Position - As of June 30, 2023, cash and bank balances were approximately RMB 57.6 million, down from RMB 78.8 million as of December 31, 2022, primarily due to a payment of RMB 20.0 million for investment intentions[34]. - The group’s total liabilities were approximately RMB 141.5 million as of June 30, 2023, resulting in a debt-to-equity ratio of approximately 86.1%, up from 82.5% as of December 31, 2022[44]. - The company reported a net cash outflow from investing activities of RMB 30,022 thousand, a significant change from a cash inflow of RMB 29,522 thousand in the same period of 2022[91]. - The company incurred a net cash outflow from investing activities of RMB 30,022 thousand, a significant change from a cash inflow of RMB 29,522 thousand in the same period of 2022[91]. - The company reported a loss from investments of RMB 209 thousand, an improvement from a loss of RMB 375 thousand in the previous year[90]. - The company reported a pre-tax loss of RMB 2,796 thousand for the first half of 2023, compared to a profit of RMB 1,958 thousand in the same period of 2022[90]. - The company reported a loss before tax of RMB 2,796,000 for the first half of 2023, compared to a profit before tax of RMB 1,958,000 in the same period of 2022[99]. - The company’s equity attributable to owners of the parent was RMB 166,392,000, slightly up from RMB 166,080,000 at the end of 2022[86]. - The total assets as of June 30, 2023, were RMB 305,864,000, a decrease from RMB 305,968,000 as of December 31, 2022[85]. - Current liabilities increased to RMB 83,619,000 from RMB 76,413,000 at the end of 2022, reflecting a rise of 9.1%[85]. - Cash and cash equivalents decreased by RMB 21,652 thousand, with the ending balance at RMB 22,906 thousand compared to RMB 76,926 thousand at the end of the previous period[91]. - The group recorded a loss from associates of RMB 81,000, an improvement from a loss of RMB 178,000 in the previous year[81]. Employee and Management Information - The total employee cost for the reporting period was approximately RMB 30.2 million, accounting for about 30.9% of total revenue, compared to 32.0% for the six months ended June 30, 2022[51]. - The group incurred employee benefits expenses of RMB 25,814,000 in the first half of 2023, down from RMB 27,182,000 in the same period of 2022, a decrease of approximately 5.0%[109]. - The total remuneration paid to key management personnel amounted to RMB 1,049,000, slightly up from RMB 1,041,000 in the same period of 2022, reflecting a year-on-year increase of approximately 0.8%[128]. - The salary, allowances, and benefits for key management personnel increased to RMB 984,000 in the first half of 2023 from RMB 860,000 in the same period of 2022, representing a growth of about 14.4%[128]. - The pension plan contributions for key management personnel decreased significantly to RMB 19,000 in the first half of 2023 from RMB 87,000 in the same period of 2022, a decline of approximately 78.2%[128]. Compliance and Governance - The audit committee has reviewed and approved the unaudited interim financial information for the reporting period[74]. - The company has established an audit committee responsible for monitoring financial reporting processes and compliance with laws and regulations[74]. - The company has not made any changes to the board of directors' information since the publication of the 2022 annual report[73]. - The company has no provisions in its articles of association or Cayman Islands law requiring it to offer new shares to existing shareholders on a pro-rata basis[71]. - The weighted average number of shares issued during the reporting period was 0.0820, based on the potential shares that could be issued from the share option scheme[68]. - The company had a total of 205,400,000 share options, with 48,380,462 options exercised during the reporting period[68]. - The group has no financial assets measured at fair value as of December 31, 2022, indicating a shift in investment strategy or asset management approach[133]. - The fair value measurement of financial liabilities did not experience any transfers between levels one and two, nor any transfers into or out of level three during the reporting period[134]. - The group’s financial department, led by the financial manager, is responsible for determining the policies and procedures for fair value measurement of financial instruments, ensuring compliance and accuracy in reporting[131].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Raily Aesthetic Medicine International Holdings Limited 瑞 麗 醫 美 國 際 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：2135） 截至2023年6月30日止六個月 中期業績公告 中期業績 瑞麗醫美國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本 公司及其附屬公司（「本集團」）截至2023年6月30日止六個月（「報告期」）的未經審 核綜合業績，連同截至2022年6月30日止六個月的比較未經審核數字以及於2022年 12月31日的若干比較經審核數字。 ...

Business Operations - The company operates a network of four private medical aesthetic institutions, with three located in Zhejiang Province and one in Anhui Province[2]. - The flagship store, Hangzhou Ruile Medical Aesthetic Hospital, is rated as a "5A" level institution by the Chinese Association of Plastic Surgery[2]. - The company has acquired Shenzhen Jiameixinhe Medical Equipment Co., Ltd., which sells e-PTFE facial implants, and is one of three authorized importers in China[3]. - Suzhou Yonglan Biomedical Technology Co., Ltd. is building a production facility for skin injection products, covering approximately 4,660 square meters, expected to achieve manufacturing capability by 2024[3]. - The company collaborates with well-known domestic universities to develop new skin injection products, aiming to establish a research and manufacturing platform for medical aesthetic equipment[3]. - The company provides a range of medical aesthetic services, including surgical, minimally invasive, and skin beauty services, focusing on enhancing customer aesthetic appeal[5][6][8]. - The company also offers dental aesthetic services, including orthodontics, dental implants, and teeth whitening, enhancing cross-selling opportunities within its medical aesthetic services[8]. - The company has entered the upstream medical equipment sales sector and is gradually developing new products, including surgical implants and medical skincare products[11]. - The company provides management consulting services to third-party medical aesthetic institutions, leveraging its operational and marketing expertise[10]. - The company aims to become an advanced, professional integrated minimally invasive medical aesthetic institution[3]. Financial Performance - The company's total revenue for the year ended December 31, 2022, was approximately RMB 164.5 million, a decrease of 12.7% compared to RMB 188.4 million in 2021[23]. - The gross profit margin for 2022 was approximately 40.6%, up from 37.0% in 2021, with the dermatology segment's gross profit margin at 43.8% compared to 47.6% in 2021[23]. - The company reported a net loss of approximately RMB 20.2 million for 2022, compared to a net loss of RMB 18.3 million in 2021, with a loss attributable to shareholders of approximately RMB 15.9 million[23]. - The decline in revenue and continued losses were primarily due to COVID-19 pandemic impacts, changes in national prevention measures, and increased R&D expenses[23]. - The number of active customers in the medical beauty sector decreased by approximately 23.8%, from about 65,500 in 2021 to about 49,900 in 2022[34]. - The average spending per customer increased by approximately 7.1%, from RMB 2,800 in 2021 to RMB 3,000 in 2022[34]. - Revenue from medical beauty services was RMB 151.7 million, down 17.4% from RMB 183.7 million in 2021, while revenue from medical beauty device sales increased significantly by 766.0% to RMB 12.8 million[53]. - The company's gross profit for 2022 was approximately RMB 66.8 million, a decrease of 4.2% from RMB 69.7 million in 2021, with a gross margin of 40.6%, up 3.6 percentage points from 37.0% in 2021[61]. - The total sales cost for 2022 was approximately RMB 97.7 million, a reduction of 17.6% from RMB 118.7 million in 2021[56]. - Other income and gains for 2022 were approximately RMB 8.1 million, an increase of 200.0% from RMB 2.7 million in 2021, mainly due to increased foreign exchange gains[64]. Strategic Initiatives - A new sales platform named "Refined Skincare Collection Store" has been launched to meet diverse skincare needs, including post-procedure care[13]. - The company has opened the Hainan Beili Fei Er Medical Center in June 2022, enhancing its service offerings in the medical tourism sector[19]. - The company is actively introducing advanced international medical technologies and products through the Hainan Boao Lecheng International Medical Tourism Pilot Zone[22]. - The company aims to return to a balanced and rational development state in the medical beauty industry in 2023 as consumer sentiment and foot traffic gradually recover[22]. - The company plans to expand its medical beauty service network, with significant renovations completed at the Hangzhou flagship store and the Hainan medical center nearing completion[26]. - The company plans to enhance its digital marketing strategies by analyzing consumer historical data to tailor marketing approaches[39]. - The company plans to increase investment in non-surgical projects and advanced technology to improve service capabilities[35]. - The company anticipates gradual recovery in the medical beauty industry in the coming years following the lifting of pandemic restrictions[31]. - The company plans to expand its product offerings and market share through domestic and international acquisitions and product agency strategies[105]. Governance and Management - The company has established a robust governance structure with independent non-executive directors overseeing various committees, including the remuneration and audit committees[121]. - The company emphasizes the importance of independent opinions in its governance, as highlighted by the roles of independent directors like Cao Dequan and Liu Teng[121]. - The company has a diverse management team with expertise in finance, law, and healthcare, enhancing its operational capabilities[123][124]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for enhanced oversight[136]. - The company has adopted the corporate governance code as per the listing rules, emphasizing transparency, accountability, and independence[133]. - The company has established various committees, including the remuneration, nomination, and audit committees, to ensure effective governance[150]. - The audit committee monitored the financial reporting process and internal controls, conducting two meetings this year[154]. - The company has established a remuneration committee responsible for recommending compensation policies for directors and senior management, having held two meetings this year[151]. - The nomination committee reviewed the board's structure and composition, assessing the independence of non-executive directors, and held one meeting this year[152]. - The company has a clear framework for significant transactions requiring board approval[142]. Shareholder Relations - The company emphasizes two-way communication with shareholders to enhance investor relations and ensure timely and transparent information dissemination[190]. - The company has established various communication channels to ensure all stakeholders can access company information publicly[193]. - Shareholders can propose resolutions at the annual general meeting, provided they meet the shareholding requirements[196]. - The board can convene a special general meeting upon request from shareholders holding at least 10% of the paid-up capital[198]. - The company will review its dividend policy based on future operations, financial performance, and market conditions[180]. Future Outlook - The Chinese medical aesthetics industry is expected to rebound as pandemic restrictions ease, with significant growth potential driven by high consumer loyalty[103]. - The company aims to provide diverse, high-quality, and efficient medical aesthetic solutions to its customers[105]. - The focus on non-surgical medical aesthetic services will be intensified, with increased investment in product and technology development[103]. - The company recognizes the need for diverse perspectives in understanding customer feedback and shareholder demands[173].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Raily Aesthetic Medicine International Holdings Limited 瑞 麗 醫 美 國 際 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：2135） 截至2022年12月31日止年度 年度業績公告 瑞麗醫美國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本 公司及其附屬公司（「本集團」）截至2022年12月31日止年度（「本年度」）的經審核 綜合財務業績。 ...