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。 ...

Financial Performance - The revenue for the six months ended June 30, 2022, was approximately RMB 944 million, an increase of 3.2% compared to RMB 915 million for the same period in 2021[7]. - The profit for the reporting period was approximately RMB 1 million, a turnaround from a loss of RMB 54 million in the same period of 2021[7]. - Revenue from medical beauty services was approximately RMB 878 million, a decrease of 1.6% from RMB 892 million in the previous year[20]. - Revenue from minimally invasive beauty services increased by approximately 24.4% to RMB 430 million, compared to RMB 345 million in the prior year[21]. - Revenue from cosmetic surgery services decreased by approximately 31.3% to RMB 62 million, down from RMB 91 million, primarily due to changes in consumer behavior influenced by the pandemic[21]. - The gross profit for the reporting period was approximately RMB 444 million, an increase of about 19.6% compared to RMB 371 million for the six months ended June 30, 2021[24]. - The gross profit margin was approximately 47.0%, up by about 6.5 percentage points from approximately 40.5% for the six months ended June 30, 2021, primarily due to high gross margins of 79.9% from newly launched medical beauty equipment[24]. - The total gross profit from medical beauty services was approximately RMB 392 million, an increase of about 9.8% from RMB 357 million for the six months ended June 30, 2021[26]. - The gross profit from minimally invasive beauty services was approximately RMB 192 million, a significant increase of about 32.2% from RMB 145 million for the six months ended June 30, 2021[26]. - Other income and gains for the reporting period were approximately RMB 24 million, an increase of about 50.0% from RMB 16 million for the six months ended June 30, 2021[28]. - The total administrative expenses for the reporting period were approximately RMB 186 million, an increase of about RMB 20 million compared to RMB 166 million for the six months ended June 30, 2021[28]. - The financial costs for the reporting period were approximately RMB 16 million, compared to RMB 11 million for the six months ended June 30, 2021[28]. - The net profit attributable to the owners of the parent company for the reporting period was approximately RMB 1 million, compared to a loss of RMB 54 million for the six months ended June 30, 2021[28]. Operational Developments - The company expanded its non-surgical medical beauty service capabilities by enhancing facilities and introducing new equipment over the past 12-18 months[8]. - The total operational area of medical beauty institutions increased from approximately 8,100 square meters before renovation to 14,100 square meters after renovation[9]. - The number of minimally invasive service rooms increased from 13 to 35 following the renovations of medical beauty institutions[9]. - The company plans to accelerate the development of various new medical beauty service patents to become the leading medical service technology team in the Yangtze River Delta region[11]. - The company is focusing on brand and product innovation driven by medical beauty technology and quality[8]. - The company has implemented strict control over sales, promotion, and marketing expenses, contributing to the profit turnaround[7]. - The company plans to establish a new medical beauty materials R&D and manufacturing platform in Suzhou, collaborating with well-known domestic universities[15]. - A new skincare product sales platform, "Ruiliang Skincare Collection Store," is set to launch, enhancing product sales channels and customer traffic[16]. - The company has initiated the construction of a new medical institution in Hainan, expecting to obtain relevant business licenses within the next 12 months[5]. Market Trends - The Chinese medical beauty market is projected to maintain double-digit growth, with a growth rate higher than other global markets[44]. - The consumer age group for medical beauty services in China primarily ranges from 21 to 40 years old, indicating a broad market base[44]. - The shift in consumer preference has moved from surgical services to non-surgical services like injection aesthetics and skin anti-aging, which are less invasive and have higher repurchase rates[45]. - The company is increasing investment in non-surgical medical beauty services to further develop international medical beauty brands[45]. - The overall external environment for the medical beauty industry remains stable, with increasing consumer acceptance and penetration rates[44]. - Regulatory measures in the medical beauty industry are being strengthened, promoting high-quality development and the elimination of non-compliant operators[44]. Shareholder Information - As of June 30, 2022, Mr. Fu Haishu holds 1,109,283,463 shares, representing 53.10% of the company's equity[48]. - The total number of shares issued by the company as of June 30, 2022, is 2,089,040,000[49]. - Major shareholders include Ruide Consulting Management Co., Ltd., holding 1,109,283,463 shares (53.10%), and Meitianxia Responsibility (Hong Kong) Co., Ltd., holding 129,128,745 shares (6.18%)[56]. - The company emphasizes good corporate governance principles to enhance shareholder value and ensure transparency and accountability[47]. - The company did not declare any interim dividends during the reporting period, consistent with the previous period where no dividends were declared[63]. - The board proposed amendments to the company's articles of association to comply with core shareholder protection standards, which were approved at the annual general meeting on June 10, 2022[65]. Financial Position - Cash and bank balances as of June 30, 2022, were approximately RMB 924 million, down from RMB 1,217 million as of December 31, 2021[28]. - As of June 30, 2022, the total liabilities of the group were approximately RMB 134.2 million, resulting in a debt-to-equity ratio of approximately 72.8%, down from 89.0% as of December 31, 2021[32]. - The total employee cost for the period was approximately RMB 30.2 million, accounting for about 32.0% of total revenue, a decrease from 40.8% for the same period in 2021[40]. - The group had a total of 382 employees as of June 30, 2022, a decrease from 395 employees as of December 31, 2021[36]. - The group has no significant contingent liabilities or guarantees as of June 30, 2022, consistent with the previous year[30]. - The group has no major investments or acquisitions planned as of June 30, 2022[35]. - The group plans to utilize approximately 71.0% of the net proceeds from its listing for expanding its medical beauty network, with a total of HKD 58.0 million allocated for this purpose[43]. - The group has allocated HKD 9.0 million for purchasing new medical beauty service equipment and treatment consumables, with all funds already utilized[43]. - The group has no significant interest rate risk as of the reporting date[33]. - The group is monitoring foreign exchange risks closely, particularly due to its holdings in HKD-denominated financial assets[34]. - The group has no major rate of exchange hedging policies in place but is considering prudent measures to mitigate related risks[34]. Cash Flow and Investments - The company reported a foreign exchange gain of RMB 1,522 thousand, contrasting with a loss of RMB 1,053 thousand in the previous year, indicating improved currency management[88]. - The company incurred RMB 8,557 thousand in capital expenditures for property, plant, and equipment, up from RMB 3,036 thousand in the previous year, representing an increase of approximately 182.5%[88]. - The net cash flow from financing activities was a net outflow of RMB 22,240 thousand, compared to a net inflow of RMB 7,926 thousand in the same period of 2021, indicating a significant change in financing strategy[88]. - The company received RMB 2,100 thousand in bank loans during the period, a decrease of 79% compared to RMB 10,000 thousand in the previous year[88]. - The company repaid RMB 20,100 thousand in bank loans, which is double the amount repaid in the same period last year (RMB 10,000 thousand)[88]. - The company reported a decrease in inventory and supplies from RMB 13,266,000 to RMB 9,024,000, indicating better inventory management[80]. - The company experienced a cash outflow from operating activities, with a net cash flow of RMB (393,000) compared to RMB (15,815,000) in the previous year, showing a significant reduction in cash burn[86]. - For the six months ended June 30, 2022, net cash flow from investing activities was RMB 29,522 thousand, a significant improvement from a net outflow of RMB 30,823 thousand in the same period of 2021[88]. Compliance and Governance - The company confirmed compliance with the standards set out in the code of conduct for securities transactions by directors during the reporting period[1]. - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[64]. - The accounting policies applied in preparing the interim financial information are consistent with those used in the previous annual financial statements, ensuring comparability[91]. - The audit committee reviewed and approved the interim financial results without any objections[67]. - There were no significant events occurring after the reporting period[136].

Financial Performance - Raily reported a significant increase in revenue, achieving a total of 1.2 billion RMB in 2021, representing a year-on-year growth of 25%[8] - For the year ended December 31, 2021, the company achieved total revenue of RMB 188.4 million, representing a year-on-year increase of 14.5%[23] - The company reported a net loss of RMB 18.3 million for the year, with a net loss attributable to shareholders of RMB 17.7 million[23] - The company experienced increased revenue but turned to a loss primarily due to stricter travel restrictions and significant currency exchange losses caused by the appreciation of the RMB[23] - The company recorded a loss of approximately RMB 18.3 million in 2021, compared to a profit of RMB 4.9 million in 2020[70] - The company reported a significant increase in foreign exchange losses, amounting to RMB 2,403,000, compared to RMB 256,000 in the previous year, marking an 838.7% increase[45] - The company achieved a total revenue of HKD 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[113] - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million[105] Customer Engagement and Services - The company expanded its service offerings, including aesthetic surgery, minimally invasive services, and skin beauty services, contributing to a 30% increase in customer visits[10] - Raily's customer retention rate has increased to 85%, attributed to enhanced service offerings and customer experience initiatives[10] - The number of active customers in 2021 was approximately 65,500, a decrease of 10.5% from 73,200 in 2020[34] - The average spending per customer increased to RMB 2,800 in 2021, up approximately 27.3% from RMB 2,200 in 2020[34] - The company aims to expand its minimally invasive beauty and skincare services to cater to the growing demand among young consumers[89] - The company is enhancing its marketing efforts through a combination of traditional outdoor advertising and online media marketing[31] Product Development and Innovation - The company began selling medical beauty equipment and products in 2021, focusing on surgical implants and skincare products, which is expected to drive future revenue growth[13] - The introduction of the initial true e-PTFE facial implants has improved product offerings, with a reported customer satisfaction rate of 90%[14] - The company plans to invest 100 million RMB in research and development for new aesthetic technologies over the next three years[8] - The company plans to establish a RAILY medical beauty materials R&D center in collaboration with medical schools or pharmaceutical companies[29] - New product launches are expected to contribute an additional $20 million in revenue, with a focus on innovative beauty technology[105] Market Expansion - The company aims to expand its market presence by opening two new clinics in Anhui province by the end of 2022, targeting a 20% increase in regional market share[8] - The company is expanding its market presence, targeting three new cities for service expansion in the upcoming year[105] - The company plans to expand its medical beauty service system through self-built or acquisition methods, focusing on standardized and scalable growth[28] Operational Efficiency - Raily's gross profit margin improved to 60% in 2021, up from 55% in the previous year, indicating better cost management and pricing strategies[9] - The gross profit margin for the year was 37.0%, with the dermatology segment achieving a gross profit margin of approximately 47.6%[23] - The overall gross margin for 2021 was approximately 37.0%, a decrease of about 11.7 percentage points compared to 2020, primarily due to reduced customer traffic and increased material and labor costs[68] - Cost management strategies are projected to improve operating margins by 5% in the next fiscal year[105] Employee and Management - The company has over 125 licensed physicians, with 71 having more than ten years of experience[24] - The company has a total of 395 employees as of the end of the year, an increase from 376 employees in the previous year, representing a growth of 5.1%[200] - The gender distribution among employees is 25% male (99 employees) and 75% female (296 employees), consistent with the previous year[200] - Employees receive regular health check-ups every two years and free non-material treatment and surgeries[200] - The company conducts exit interviews to understand the reasons for employee departures and gather feedback[200] Governance and Compliance - The board of directors emphasized the importance of sustainability initiatives in future business strategies[105] - The company has established a clear separation of roles between the chairman and the CEO, in compliance with governance codes[125] - The audit committee met twice this year to monitor the financial reporting process and compliance with laws and regulations[130] - The company has implemented necessary training for employees to ensure compliance with policies and procedures related to risk management and internal controls[138] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of ESG governance for sustainable development and actively seeks stakeholder feedback to improve its ESG performance[156] - The company aims to reduce air pollutants, wastewater, and waste emissions by 5% by 2025 compared to 2021 levels[168] - The company has established policies related to environmental, social, and corporate governance, along with appropriate risk management measures[156] - The company has implemented various energy-saving measures, such as utilizing natural light and setting air conditioning temperatures to no lower than 26 degrees Celsius during summer[184] Financial Health - As of December 31, 2021, cash and bank balances were approximately RMB 121.7 million, down from RMB 158.9 million on December 31, 2020[70] - The total debt as of December 31, 2021, was approximately RMB 162.4 million, with a debt-to-equity ratio of about 89.0%[70] - The company has lease liabilities of approximately RMB 47.5 million as of December 31, 2021, compared to RMB 19.2 million on December 31, 2020[70]

Revenue and Growth - Revenue for the six months ended June 30, 2021, was approximately RMB 915 million, a significant increase of 55.8% compared to RMB 587 million for the same period in 2020[11]. - Revenue from medical beauty services was approximately RMB 892 million, representing a growth of about 55.2% from RMB 575 million in the previous year[25]. - Revenue from skin beauty services and minimally invasive beauty services increased by approximately 122.1% and 71.1%, reaching RMB 409 million and RMB 345 million respectively[27]. - For the six months ended June 30, 2021, total revenue from medical beauty services was RMB 89,194,000, and from consulting services was RMB 2,298,000, totaling RMB 91,492,000, representing an increase from RMB 58,730,000 in the same period of 2020[98]. - The total revenue for the period was approximately RMB 915 million, a significant increase of 55.8% compared to RMB 587 million for the same period in 2020[25]. Customer Metrics - Active customer count increased to 43,325, up 39.4% from 31,080 in the first half of 2020[12]. - Average spending per active customer rose to approximately RMB 2,059, an increase of about 11.4% from RMB 1,849 in the first half of 2020[12]. - New customer count reached 16,130, representing a growth of 15.8% compared to 13,928 in the first half of 2020[12]. - Repeat customer count increased to 27,195, a growth of 58.6% from 17,152 in the same period of 2020[12]. Financial Performance - The net loss for the period was approximately RMB 54 million, a reduction of about 53.8% from RMB 118 million in the same period of 2020[11]. - The gross profit for the period was approximately RMB 371 million, an increase of about 52.7% compared to RMB 243 million for the same period in 2020[30]. - The gross margin was approximately 40.5%, a decrease of about 0.9 percentage points from 41.4% in the previous year[30]. - The company recorded a loss of approximately RMB 5.4 million for the period, compared to a loss of RMB 11.8 million for the six months ended June 30, 2020[34]. - The company reported a pre-tax loss of RMB 5,549 thousand for the six months ended June 30, 2021, an improvement from a loss of RMB 12,352 thousand in the same period of 2020[90]. Expenses and Liabilities - The sales cost for the period was approximately RMB 544 million, an increase of about 57.9% from RMB 344 million in the previous year[28]. - Sales and distribution expenses were approximately RMB 25.2 million, an increase of about RMB 10.1 million from RMB 15.1 million for the six months ended June 30, 2020[34]. - Administrative expenses decreased to approximately RMB 16.6 million from RMB 20.3 million for the six months ended June 30, 2020, a reduction of about RMB 3.7 million[34]. - The total liabilities as of June 30, 2021, were approximately RMB 80.6 million, down from RMB 85.6 million as of December 31, 2020[38]. - The debt-to-equity ratio was 42.4% as of June 30, 2021, compared to 45.8% as of December 31, 2020[38]. Investments and Expansion - The company plans to complete an expansion of approximately 1,500 square meters at Wuhu Raily Medical Aesthetic Clinic, increasing total building area by about 106.8%[12]. - The company invested RMB 3.5 million to acquire a 25% stake in Bioris Medical (Beijing) Trading Co., Ltd. as part of its strategy to vertically expand its supply chain[12]. - The company is expanding its medical beauty facilities, increasing the total area from approximately 7,972 square meters to about 12,672 square meters, a growth of 59.0%[17]. - The company is implementing renovation and expansion plans for its medical beauty institutions to improve service capacity and customer experience[17]. - The company has committed to strategic acquisitions, allocating HKD 12.2 million (15.0%) of the net proceeds for this purpose by December 31, 2023[50]. Shareholder Information - As of June 30, 2021, Mr. Fu Haishu holds 1,109,283,463 shares, representing 53.10% of the company's equity[57]. - Major shareholder 瑞德咨询管理有限公司 holds 1,109,283,463 shares, representing 53.10% of the company's equity[62]. - The total number of shares issued by the company as of June 30, 2021, is 2,089,040,000 shares[64]. - The company did not declare any interim dividends for the six months ending June 30, 2020[64]. Compliance and Governance - The company has adopted the standard code of conduct for directors' securities transactions as per the listing rules[64]. - The company confirmed compliance with the standard code during the reporting period[64]. - The audit committee has reviewed and approved the interim financial information, ensuring compliance with relevant regulations and standards[76]. Cash Flow and Assets - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (15,815) thousand, compared to RMB (9,238) thousand for the same period in 2020, indicating a worsening cash flow situation[90]. - Cash and cash equivalents at the end of the period were RMB 103,633,000, a significant increase from RMB 27,499,000 at the end of the previous year[92]. - The company’s cash and bank balances decreased from RMB 158,898 thousand as of December 31, 2020, to RMB 146,916 thousand as of June 30, 2021, a decline of about 7.5%[84]. - The company’s inventory increased from RMB 11,621 thousand as of December 31, 2020, to RMB 15,130 thousand as of June 30, 2021, representing an increase of approximately 29.0%[84]. - The total assets increased to RMB 140,935 thousand as of June 30, 2021, compared to RMB 137,651 thousand at the end of 2020[101].

Financial Performance - Raily Aesthetic Medicine reported a significant increase in revenue, achieving a total of 200 million RMB in 2020, representing a growth of 25% compared to the previous year[4]. - The company achieved total revenue of RMB 164.5 million for the year ended December 31, 2020, a decrease of 13.9% compared to the previous year[16]. - Net profit for the year was RMB 4.9 million, with a net profit attributable to shareholders of RMB 4.3 million, representing decreases of 52.2% and 57.0% respectively from 2019[16]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2020, representing a growth of 15% compared to the previous year[70]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[70]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in the last fiscal year, representing a 15% year-over-year growth[76]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[76]. Market Expansion and Services - The company operates a network of four private medical aesthetic institutions, with three located in Zhejiang Province and one in Anhui Province, enhancing its market presence[4]. - Raily has expanded its service offerings to include dental aesthetic services, which enhances customer experience and promotes cross-selling opportunities[6]. - The company expanded its service offerings by establishing its fourth medical beauty institution in Wuhu, Anhui Province in July 2020[11]. - The company plans to expand its medical beauty institution network and is looking for acquisition opportunities in reputable medical beauty institutions to enhance market presence in Zhejiang Province[18]. - The company is expanding its market presence, planning to open 10 new clinics in key urban areas by the end of 2021[70]. - A strategic acquisition of a local competitor is anticipated to enhance market share and operational efficiency, expected to close by Q3 2021[70]. Customer Engagement and Retention - Raily aims to improve customer retention rates through comprehensive medical aesthetic services, including dental care and other auxiliary services[6]. - The total number of medical beauty customers in 2020 was 73,235, an increase of 4.9% from 69,835 in 2019, with new customers accounting for 43.5% of the total[24]. - The company aims to enhance customer engagement through digital platforms, targeting a 25% increase in online bookings[70]. - Customer complaints were minimal in 2020, with a high rate of repeat customers due to quality service and strict safety controls[189]. Operational Efficiency and Management - The company plans to optimize operational efficiency and enhance medical quality and safety management to increase market share in the medical beauty service industry[16]. - The company has started providing management consulting services to third-party medical aesthetic institutions since 2017, diversifying its business model[6]. - The company emphasizes improving quality, service, and efficiency in medical quality management and corporate social responsibility practices[21]. - The management team emphasized the importance of maintaining operational efficiency, targeting a 5% reduction in costs[76]. Safety and Compliance - Raily has implemented multiple safety protocols for equipment usage, ensuring compliance with national safety and efficacy standards[6]. - The company did not purchase medical liability insurance for its medical beauty institutions or medical staff in 2020, posing a risk to operations[31]. - The ongoing impact of COVID-19 has affected customer willingness to visit medical beauty institutions, impacting overall revenue[40]. - The group implemented various COVID-19 prevention measures, including providing disposable medical masks and disinfectants in office areas and additional protective gear in high-risk areas[150]. Corporate Governance - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced composition for effective governance[80]. - The company has adhered to the corporate governance code since its listing date on December 28, 2020, confirming compliance with the relevant standards[80]. - The company has established a remuneration committee responsible for recommending compensation policies for directors and senior management[193]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules[193]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of ESG governance for sustainable development and has established clear responsibilities for the board to oversee ESG initiatives[113]. - The company aims to comply with national policies and regulations, ensuring timely and full tax payments as part of its stakeholder expectations[117]. - The company is committed to sustainability initiatives, aiming for a 50% reduction in waste by 2025[70]. - The company has set up appropriate communication channels for stakeholders to express their opinions and expectations, enhancing ESG performance[116]. Employee Management and Development - The company has 376 employees as of December 31, 2020, with 198 being medical professionals[16]. - Employee turnover rate was 42% for the entire workforce, with a higher turnover of 47% for employees under 30 years old[142][143]. - The group emphasizes employee development through a structured performance management system, linking performance evaluations to promotions and salary adjustments[151]. - The group provides various employee benefits, including social insurance and regular health check-ups every two years[140]. Financial Position and Investments - The company raised approximately HKD 81.7 million through its global offering on the Hong Kong Stock Exchange on December 28, 2020[16]. - The company has not utilized any proceeds from the IPO as of December 31, 2020[56]. - The company has approximately RMB 192 million in lease liabilities as of December 31, 2020, down from RMB 264 million in 2019[50]. - The company has established a comprehensive quality control system for medical beauty services, adhering to national standards and regulations to ensure safety and quality[161].