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通告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本通告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 股東週年大會通告 茲通告雍禾醫療集團有限公司（「本公司」）謹訂於2025年6月20日下午二時正假座 中國北京市朝陽區甘露園南里20號中國核建大廈4層會議室舉行股東週年大會（「股東 週年大會」），以： 考慮及酌情通過以下的本公司普通決議案（不論有否作出修訂）： – 1 – 1. 接收、考慮及採納截至2024年12月31日止年度的本公司經審核合併財務報 表、本公司董事（「董事」）會（「董事會」）報告及本公司核數師報告； 2. 重選張輝先生為本公司執行董事； 3. 重選韓志梅女士為本公司執行董事； 4. 重選耿嘉琦先生為本公司非執行董事； 5. 授權董事會釐定本公司董事的薪酬； 6. 續聘羅兵咸永道會計師事務所為本公司核數師，並授權董事會釐定其酬 金； 7. 「動議： (a) 在下文(b)段的規限下，一般地及無條件地批准董事於有關期間（定義 見下文）內行使本公司所有權力根據適用法律並在其規限下購回其股 份； ...

此乃要件 請即處理 閣下如對本通函任何方面或應採取的行動有任何疑問，應諮詢 閣下的股票經紀或其他註冊證券交易商、 銀行經理、律師、專業會計師或其他專業顧問。 閣下如已將名下雍禾醫療集團有限公司的股份全部售出或轉讓，應立即將本通函連同隨附的代表委任表格 送交買主或承讓人，或經手買賣或轉讓的銀行、股票經紀或其他代理商，以便轉交買主或承讓人。 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通函的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本通函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。 Yonghe Medical Group Co., Ltd. 雍禾醫療集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2279） (2)建議重選董事 (3)續聘核數師及釐定核數師酬金 及 (4)股東週年大會通告 本公司謹訂於2025年6月20日下午二時正假座中國北京市朝陽區甘露園南里20號中國核建大廈4層會議室 舉行股東週年大會，召開大會的通告載於本通函內。隨本通函附奉適用於股東週年大會的代表委任表格。 該代表委任表格亦在聯交所網站( www.hkexnew ...

Business Overview - Yonghe Medical Group is a leading medical group in China specializing in hair-related healthcare services, offering a one-stop service model that includes hair transplant and medical hair care[5]. - The company has successfully established Svenson Medical Hair Care Centers in China and expanded its footprint by acquiring the Hong Kong business of Nu/Hart Hair, enhancing its market presence[5][8]. - Yonghe Medical Group has built a standardized and scalable business model, achieving industry-leading operational capabilities that improve cost control and profitability[9]. - The company collaborates with Class IIIA hospitals and renowned academic institutions to enhance its research and development capabilities[9]. - Yonghe Medical Group is actively promoting the adoption of new technologies, including data analysis and online services, to improve patient care and drive business development[6][9]. - The establishment of a joint hair laboratory with Peking University People's Hospital aims to standardize diagnostic and treatment procedures for hair loss diseases, marking a significant advancement in the industry[5][8]. - The company believes that its pioneering actions will enhance core competitiveness and strengthen its leading position in the hair-related healthcare service industry[8]. - Yonghe Medical Group's focus on innovation and technology positions it for sustained growth in the future[6][9]. - The company has a strong commitment to improving operational efficiency and enhancing patient services through continuous technological advancements[6][9]. - Yonghe Medical Group's strategic acquisitions and partnerships are expected to further solidify its market leadership and expand its service offerings[5][8]. Financial Performance - Revenue from hair transplant services reached RMB1.33 billion, with a 16.3% increase in the number of patients receiving high-end services[22]. - Medical hair care services generated revenue of RMB445.8 million, representing a year-on-year growth of 14.8%, with a repurchase rate of 28.4%[22]. - Total revenue for 2024 was RMB1.80 billion, reflecting a 1.5% increase compared to the previous year[26]. - Gross profit amounted to RMB1.08 billion, with a gross profit margin of 60.1%, an increase of 4 percentage points[26]. - Net loss narrowed to RMB226.6 million, while EBITDA turned positive at RMB141.0 million[26]. - Total assets decreased to RMB1.73 billion from RMB2.44 billion in 2023[22]. - Total equity fell to RMB713.8 million, down from RMB942.3 million in 2023[22]. - Total liabilities decreased to RMB1.01 billion, compared to RMB1.50 billion in 2023[22]. - Average transaction value for hair transplant and medical hair care services increased to RMB22,306 and RMB5,773 respectively[25]. - For the year ended December 31, 2024, the Group's revenue was RMB1,804.5 million, an increase of 1.5% from RMB1,777.3 million in 2023[46]. - Gross profit for the same period was RMB1,084.2 million, up 8.7% from RMB997.2 million in 2023, with a gross profit margin of 60.1%, an increase of 4.0 percentage points from 56.1%[46]. - Revenue from hair transplant services amounted to RMB1,330.7 million, accounting for 73.7% of total revenue[51]. - The number of patients receiving hair transplant surgery was 59,655, with a significant increase of 16.3% in patients receiving the "Yongxiang" service compared to the previous year[51]. - The average spending per hair transplant patient was RMB22,306, slightly up from RMB22,174 in 2023[54]. - Revenue from medical hair care services amounted to RMB 445.8 million, accounting for 24.7% of total revenue for the year ended December 31, 2024[57]. - Average spending per medical hair care patient increased by 17.0% from RMB 4,934 to RMB 5,773 during the reporting period[59]. - The number of patients receiving medical hair care services was 77,222, a slight decrease from 78,687 in the previous year[59]. - The repurchase rate of medical hair care services increased to 28.4%, up from 23.4%[59]. Operational Efficiency - The company is focusing on strategic upgrades from "traffic-driven" to "value creation" in response to new industry trends[29]. - The company streamlined its clinic network by closing inefficient stores, reducing the total number of clinics to 74, and focusing resources on high-potential areas[30]. - As of 2024, the medical team consists of 1,401 members, including 242 doctors, enhancing the quality and professionalism of medical services[30]. - The "Hefan" system has been fully implemented, significantly improving per capita reception efficiency through intelligent management of reception, inventory, and finance[30]. - The company served over 120,000 patients during the reporting period, solidifying its position as the largest hair-related healthcare clinic chain in China[39]. - The company aims to deepen penetration into the women's market and strengthen chain operation capabilities to target high-quality growth[35]. - The focus on technological innovation and quality service aims to provide high-quality and convenient hair-related healthcare solutions[34]. - The company is exploring the operation model of functional small stores to verify the feasibility of a light-asset, high-turnover model[30]. - The company plans to create a "smart medical" benchmark to cover the entire life cycle of hair-related healthcare needs[35]. - The brand matrix includes "Yonghe Medical," "Yonghe Hair Transplant," "Svenson," "Yonghe Fa Zhi Chu," and "Harvard," covering various aspects of hair-related healthcare[38]. Strategic Initiatives - The company emphasizes long-termism to create value for shareholders and society amidst market challenges[36]. - The Group strategically closed and consolidated underperforming stores, enhancing operational efficiency and resource allocation[46]. - The total number of clinics and stores decreased from 88 in 2023 to 74 in 2024, reflecting a focus on core locations[44]. - The number of patients receiving services from business chiefs was 40,710, representing 68.2% of total patients[54]. - The number of patients receiving services from business deans was 15,411, accounting for 25.8% of total patients[54]. - The Group aims to strengthen brand influence through a strategic hierarchical service system in the hair transplant sector[52]. - The female business revenue saw a significant year-on-year increase due to the optimisation of the "Fa Zhi Chu" brand strategy and the establishment of female departments in core clinics[70]. - The group has built a professional medical team consisting of 1,401 members as of December 31, 2024[72]. - The group implemented a "fixed price" pricing strategy to respond effectively to market changes and fluctuations in consumer trends[64]. - The "Good Doctors are Around" initiative was launched to enhance access to high-standard medical services across different regions[64]. - The group upgraded its brand strategy to lead the industry into the hair transplant 3.0 era, focusing on professional training and assessment for physicians[70]. - Strategic cooperation agreements were signed with several pharmaceutical companies to enhance competitiveness in hair loss prevention and control, aiming for innovation in the hair healthcare industry[74]. Technological Advancements - The introduction of an AI hair health self-test tool significantly increased user conversion rates[77]. - The self-developed CRM system "Hefan" achieved full-link automation and intelligent management of leads, improving sales team follow-up efficiency and significantly increasing customer conversion rates[78]. - The Group's digital transformation was completed in 2024, focusing on "data-driven and intelligent collaboration" with the introduction of large language models (LLM)[83]. - The "Hefan" system fully digitizes processes such as patient files and outpatient records, achieving a "paperless" office environment and enhancing operational efficiency[84]. - The Group's marketing strategy integrated multiple channels and touchpoints, resulting in a higher conversion rate while controlling marketing costs[79]. - Collaboration with reputable medical schools and Grade 3A hospitals was strengthened to drive development in the hair healthcare sector through academic seminars and joint research projects[74]. - The Group's initiatives in AI technology led to breakthroughs in smart labelling and scalp image symptom recognition, significantly improving customer satisfaction[83]. - The dual wheel drive model of "group large and middle platforms + regional small and middle platforms" improved user lifecycle management and marketing ROI[77]. - The focus on digitalization and intelligence will drive operational efficiency and innovation, aiming to create an exceptional service experience for consumers[98]. Human Resources and Management - The Group's total bank borrowings decreased to RMB50.1 million in 2024 from RMB152.8 million in 2023[159]. - The gearing ratio improved to 7.0% as of December 31, 2024, down from 16.2% in 2023[174]. - The Group had trade and other payables of RMB149.4 million as of December 31, 2024, compared to RMB210.9 million in 2023[155]. - As of December 31, 2024, the Group had a total of 3,549 employees, including 1,401 in the professional medical team[179]. - Staff costs for the year ended December 31, 2024, were RMB 722.9 million, a decrease from RMB 835.1 million for the year ended December 31, 2023, representing a reduction of approximately 13.4%[179]. - The Group continues to provide competitive compensation packages and diverse training courses to its employees, adhering to industry practices and individual performance[180]. - The Group participates in various employee social security plans, including housing provident fund, pension, medical, maternity, work-related injury, and unemployment insurances, as required by PRC laws[180]. Leadership and Governance - Mr. Zhang Yu, the founder and CEO, has over 19 years of experience in the medical hair care service industry and has led the Group's strategic development since its inception in 2010[186]. - Under Mr. Zhang's leadership, the Group has expanded its business lines to include diagnosis and treatment of various hair-related diseases, hair transplant, and other related services[186]. - Mr. Zhang Hui, the senior vice president, has over 12 years of experience in the industry and has contributed to the Group's steady expansion through optimized supply chain management[192]. - Ms. Han Zhimei, with over 25 years of experience in finance, is responsible for the Group's financial management and has held various senior roles prior to her current position[190]. - The Group has established a management style reflective of the "Yonghe" brand values, achieving numerous prestigious accreditations and recognitions[186]. - Ms. Han has over 25 years of experience in accounting and corporate finance, previously serving as finance director at KR Space and general manager of finance center at CiMing Health Management Group[195]. - Mr. Geng has over 17 years of experience in investment and management, currently providing strategic development advice to the Group[200].

Summary of the Conference Call Company Overview - The conference call was held by Yonghe Medical, with key management including Chairman and CEO Zhang Yu, Executive Director and CFO Han Zhiming, and other executives present to discuss the 2024 annual performance report [1][2]. Financial Performance - Yonghe Medical reported a revenue of RMB 1.805 billion for 2024, a 1.5% increase compared to the same period in 2023 [2]. - Gross profit reached RMB 1.08 billion, up 8.7% year-on-year, with a gross margin of 60.1%, an increase of 4 percentage points from 2023 [2]. - The company achieved a net profit of RMB 140 million, recovering from a net loss of RMB 227 million in the previous year, a reduction of 58.6% in losses [2]. - The direct medical services segment contributed RMB 1.33 billion in revenue, a 73.7% increase, while the medical care segment generated RMB 450 million, up 14.8% [3]. Business Strategy and Market Position - The company is transitioning from a 1.0 model focused on rapid expansion to a 2.0 model emphasizing operational efficiency and quality [4][5]. - The focus has shifted from quantity to health-oriented operations, with an emphasis on optimizing resource allocation and enhancing service quality [5][6]. - The company operates 66 medical institutions across 63 cities, making it the largest chain in the hair transplant sector in China [3]. Market Dynamics - The hair transplant market is experiencing a slowdown, with increased competition leading to price wars and a decline in average procedure prices [14][22]. - Despite the challenges in the direct hair transplant market, the medical care segment is expected to grow significantly due to an increase in product offerings and consumer demand [15][22]. - The company is adapting its marketing strategies to target younger consumers and address the trend of preemptive treatments [34]. Operational Adjustments - Yonghe Medical has implemented a series of strategic adjustments, including closing underperforming clinics and optimizing advertising expenditures, which decreased from 40.7% to 34.6% of revenue [17][19]. - The company has focused on enhancing operational efficiency, with a reduction in labor costs from RMB 835 million in 2023 to RMB 723 million in 2024 [40]. Future Outlook - The management aims for a significant increase in profitability by 2025, with a focus on maintaining a balance between direct hair transplant and medical care services [16][19]. - The company is exploring AI technologies to enhance service delivery and operational efficiency, indicating a commitment to innovation in the healthcare sector [37][38]. Key Takeaways - Yonghe Medical is navigating a challenging market environment by refining its business model and focusing on operational efficiency. - The company is well-positioned to capitalize on the growing demand for medical care services while addressing the competitive pressures in the hair transplant market. - Strategic adjustments and a focus on technology integration are expected to drive future growth and profitability.

Core Insights - Yonghe Medical reported a revenue of 1.805 billion yuan for 2024, marking a 1.5% year-on-year increase, with EBITDA improving significantly to 141 million yuan [2][5] - The company has entered a self-adjustment phase since 2022, focusing on internal restructuring and breaking away from previous operational models to ensure long-term growth [2][4] Financial Performance - In 2024, Yonghe Medical paused its rapid expansion strategy, optimizing nine underperforming clinics, reducing the number of hair transplant institutions in second and third-tier cities from 51 to 42 [3] - The gross profit for 2024 increased by 8.7% to 1.084 billion yuan, with a gross margin of 60.1%, up 4% year-on-year [3][5] Market Position and Strategy - Yonghe Medical's hair transplant service revenue reached 1.331 billion yuan, accounting for 73.7% of total revenue, with an average patient expenditure of 22,300 yuan [5] - The company is building a comprehensive hair care system, expanding its service offerings beyond hair transplants to include preventive treatments and maintenance [6][8] Brand and Service Development - In 2024, Yonghe Medical introduced a brand strategy emphasizing the importance of skilled doctors and improved service quality, establishing a professional medical team of 1,401 members [9] - The company has implemented a transparent pricing model and innovative service delivery methods, enhancing patient trust and satisfaction [10] Future Outlook - The hair health market in China is projected to grow from 79.55 billion yuan in 2023 to 116.54 billion yuan by 2028, indicating significant growth potential for Yonghe Medical [6] - The company anticipates a continuous increase in demand for hair treatment and maintenance services, positioning itself to capitalize on the expanding market [11]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 雍禾醫療集團有限公司 呈交日期： 2025年4月7日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | | 02279 | 說明 | | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | | 庫存 ...

Summary of Yonghe Medical Conference Call Company Overview - **Company**: Yonghe Medical - **Industry**: Hair Restoration and Medical Care Key Financial Performance - **2024 Revenue**: RMB 1.805 billion, a 1.5% increase from 2023 [3] - **Gross Profit**: RMB 1.08 billion, an 8.7% increase, with a gross margin of 60.1%, up 4 percentage points from last year [3] - **EBITDA**: Turned from loss to profit at RMB 140 million [3] - **Net Loss**: RMB 227 million, a reduction of 58.6% compared to the previous year [3] - **Hair Transplant Revenue**: RMB 1.33 billion, accounting for 73.7% of total revenue [3] - **Medical Care Revenue**: RMB 450 million, a 14.8% year-on-year increase [3][4] Strategic Shifts and Business Model Transformation - Transitioned from a rapid expansion model (1.0 era) to a focus on efficiency and single-store profitability (2.0 era) [5] - Emphasized customer lifetime value and digital transformation, leading to a 20% reduction in advertising costs while increasing revenue [5][6] - Adjusted branch layout by closing unprofitable locations and focusing resources on high-potential markets [3][10] - Implemented targeted marketing strategies to enhance customer engagement and increase average transaction values [3][10] Market Position and Competitive Strategy - Addressed increased competition in the hair transplant market by introducing tiered pricing and enhancing medical care services [11] - Focused on building a strong brand reputation through content marketing and KOL collaborations [25] - Adopted a transparent pricing strategy to lower service barriers and improve conversion rates [26] Future Growth Directions - Plans to expand into hair care services and develop internet hospitals, with a focus on smaller, more efficient store models [7][12] - Aiming for a balanced growth strategy in both hair transplant and medical care sectors, with a significant focus on the latter as a future growth area [11][21] - Anticipates a stable average transaction price despite market pressures, with a focus on maintaining high service quality [16] Operational Efficiency and Cost Management - Reduced personnel costs from RMB 835 million in 2023 to RMB 723 million in 2024, achieving a significant decrease [31] - Implemented organizational restructuring to enhance efficiency and reduce costs [10][31] - Focused on retaining core talent while streamlining operations to improve overall performance [10] Digital Transformation and AI Integration - Invested heavily in digital transformation and AI applications to enhance service delivery and operational efficiency [28][29] - Launched deep sig technology to improve local business operations and customer engagement [28] - Aimed to create a comprehensive ecosystem through partnerships with upstream manufacturers and technology providers [24] Market Trends and Consumer Behavior - Noted a trend of younger consumers seeking hair restoration solutions, indicating a shift in market demographics [17] - The conversion rate from hair transplant clients to long-term care clients remains above 40% [23] - Anticipated continued growth in both hair transplant and medical care services, driven by evolving consumer needs [16][21] Conclusion Yonghe Medical is strategically positioning itself for sustainable growth by focusing on operational efficiency, digital transformation, and adapting to market trends. The company aims to enhance its service offerings while maintaining a strong financial performance amidst competitive pressures.

Group 1 - The core viewpoint of the news is that Yonghe Medical, known as the "first stock in hair transplantation," reported a revenue of RMB 1.805 billion for 2024, reflecting a year-on-year growth of 1.5% compared to 2023 [1] - The net loss for Yonghe Medical narrowed by 58.6% from RMB 550 million in 2023 to RMB 227 million in 2024 [1] - The gross profit for the company reached RMB 1.084 billion, representing an 8.7% increase year-on-year, with a gross margin of 60.1% compared to 56.1% in 2023 [1] Group 2 - Yonghe Medical provides a comprehensive range of hair medical services, including hair transplantation, medical care, routine maintenance, and other supporting services [3] - The total number of patients served by the company exceeded 120,000, with 59,655 patients undergoing hair transplantation, generating RMB 1.33 billion in revenue from hair transplantation services, accounting for 73.7% of total revenue [3] - The hair medical service market in China is experiencing rapid growth, with the market size increasing from RMB 58.29 billion in 2020 to RMB 79.55 billion in 2023, and is projected to reach RMB 116.54 billion by 2028 [3] Group 3 - In 2024, Yonghe Medical optimized its number of hair transplant clinics from 75 to 66 and reduced the number of independent stores from 13 to 8 [3] - The company explained that the optimization of the store network involved strategically closing and consolidating inefficient stores, reallocating resources to core locations, which significantly improved operational efficiency [3] - This strategic move not only enhanced the overall robustness of the business but also ensured effective resource utilization, further solidifying the company's competitive advantage in the market [3]

在近日国务院办公厅发布的《提振消费专项行动方案》中明确，将通过城乡居民增收促进、消费能力保 障支持等措施释放居民医疗消费潜力。 其中，消费医疗作为可选消费的重要分支，受益于居民健康意识增强及支付能力提升，需求端有望持续 修复。政策支持下，民营医疗机构、高端医疗器械等细分领域或迎来扩容机遇。 因此，对于那些长期受到市场折价困扰的相关企业，当下正是一个估值重塑的关键节点，恰逢如今又是 新一轮的财报季，给了投资者一个良好的观察窗口。 3月27日，雍禾医疗(2279.HK)发布2024年全年财报，从这份财报中，我们或许能够探寻到关于其真实价 值的草蛇灰线。 一、盈利能力显著提升，实现全面高质量增长 2024年，尽管面临宏观经济波动与消费需求的调整，雍禾医疗于报告期内仍然实现收入18.05亿元（人 民币，下同），同比增长1.5%。 最主要的是，盈利数据持续向好。2024年，雍禾医疗净亏损为2.27亿元，对比2023年的5.47亿元，大幅 收窄；EBITDA为1.41亿元，去年同期为1.84亿元。同时，公司毛利润达到了10.84亿元，同比增长 8.7%，对应毛利率为60.1%，较去年同期提升4个百分点。 专业性是雍禾医疗 ...

Financial Performance - The company's revenue increased by 1.5% from RMB 1,777.3 million for the year ended December 31, 2023, to RMB 1,804.5 million for the year ended December 31, 2024[2]. - Gross profit rose by 8.7% from RMB 997.2 million in 2023 to RMB 1,084.2 million in 2024, with a gross margin improvement from 56.1% to 60.1%[2]. - Net loss narrowed by 58.6% from RMB 546.7 million in 2023 to RMB 226.6 million in 2024[2]. - The company recorded a loss before interest, tax, depreciation, and amortization of RMB 183.6 million in 2023, turning to a profit of RMB 141.0 million in 2024[2]. - Basic loss per share improved from RMB 1.08 in 2023 to RMB 0.45 in 2024[3]. - The group reported a total comprehensive loss of RMB 226.6 million for the year ended December 31, 2024, compared to RMB 546.7 million in 2023[6]. - The adjusted EBITDA for 2024 was RMB 141.0 million, a significant improvement from an adjusted EBITDA loss of RMB 183.6 million in 2023, reflecting a year-on-year increase of RMB 324.6 million[73]. - Net loss decreased from RMB 546.7 million in 2023 to RMB 226.6 million in 2024, with the net loss margin improving from 30.8% to 12.6%[77]. Assets and Liabilities - Total assets decreased from RMB 2,444.6 million in 2023 to RMB 1,726.2 million in 2024[7]. - Total liabilities decreased from RMB 1,502.3 million in 2023 to RMB 1,012.4 million in 2024[8]. - The company's total debt decreased to RMB 667.1 million as of December 31, 2024, from RMB 1,095.6 million in 2023[85]. - The capital debt ratio as of December 31, 2024, was 7.0%, down from 16.2% in 2023[93]. Revenue Breakdown - Revenue from hair transplant medical services was RMB 1,330,693,000 in 2024, a slight decrease of 1.7% from RMB 1,354,191,000 in 2023[21]. - Revenue from hair transplant medical services accounted for 73.7% of total revenue in 2024, amounting to RMB 1,330.7 million, down from 76.2% in 2023[63]. - Revenue from medical maintenance services increased to RMB 445.8 million in 2024, representing 24.7% of total revenue, up from 21.8% in 2023[63]. - Revenue from medical rehabilitation services increased by 14.8% to RMB 445.8 million in 2024, driven by a 17.0% increase in per capita spending, despite a 1.9% decrease in the number of patients[65]. Operational Efficiency - The company operated 66 hair transplant medical institutions across 63 cities in China as of December 31, 2024, down from 75 institutions in 2023[38]. - The company strategically closed and integrated inefficient stores, enhancing operational efficiency and resource allocation[39]. - Total costs for the year 2024 were RMB 720.3 million, down 7.7% from RMB 780.1 million in 2023, with employee costs decreasing due to store closures and optimization of the medical team structure[67]. - General and administrative expenses decreased to RMB 285.3 million in 2024 from RMB 374.3 million in 2023, attributed to improved management efficiency and organizational restructuring[71]. - Sales and marketing expenses for 2024 were RMB 902.4 million, down from RMB 1,044.4 million in 2023, primarily due to optimized resource allocation and refined marketing strategies[72]. Patient Services - The number of patients receiving hair transplant services was 59,655, with an average spending of RMB 22,306 per patient, reflecting a 16.3% increase in the number of patients using the "Yongxiang" service compared to the previous year[42][43]. - The number of hair transplant patients decreased from 61,071 in 2023 to 59,655 in 2024, while the average spending per patient increased from RMB 22,174 to RMB 22,306[64]. - The company’s medical maintenance service revenue was RMB 445.8 million, representing 24.7% of total revenue, with an average spending of RMB 5,773 per patient, a 17.0% increase from RMB 4,934 in 2023[44][46]. - The repurchase rate for medical maintenance services increased to 28.4% from 23.4% in the previous year[46]. Research and Development - Research and development expenses decreased from RMB 29.3 million in 2023 to RMB 21.3 million in 2024[5]. - The company plans to enhance its one-stop hair treatment capabilities and optimize female department construction to meet the growing demand in the female market[57]. - The company aims to improve operational efficiency and medical service capabilities through digitalization and intelligent applications, targeting a more personalized service experience[60]. - The introduction of new medical care products for early-stage hair loss patients is expected to reduce treatment cycles and enhance customer satisfaction[57]. Digital Transformation and Innovation - The company completed its digital transformation in 2024, focusing on data-driven and intelligent collaboration to enhance operational efficiency and customer experience[53]. - The proprietary chain medical system "He Fan" was fully implemented, achieving a closed-loop management of five key processes, which greatly improved operational efficiency[54]. - The introduction of an AI-driven hair health self-assessment tool significantly improved user conversion rates, showcasing the effectiveness of digital marketing strategies[51]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls[110]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024, ensuring compliance with applicable accounting standards[111]. - The company adheres to the corporate governance code as per the listing rules[114]. - The board of directors includes both executive and independent non-executive members[116]. Shareholder Information - The board has decided not to declare any dividends for the year ended December 31, 2024[4]. - The company did not declare any final dividend for the year ended December 31, 2024[96]. - The company issued 94,424,000 shares at HKD 15.80 each during the global offering, raising a net amount of approximately HKD 1,526.2 million after deducting underwriting fees and expenses[103]. - The board believes that the changes in the use of proceeds will enhance the company's profitability and align with the interests of shareholders[104].