[Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) [Performance Report](index=7&type=section&id=I.%20PERFORMANCE%20REPORT) The Group showed strong operational resilience in FY2024/2025, achieving significant profit growth despite a revenue decline Key Performance Indicators for FY2024/2025 | Indicator | FY2024/2025 | YoY Change | | :--- | :--- | :--- | | **Revenue** | Approx. RMB 1.688 billion | -3.3% | | **Operating Profit** | Approx. RMB 36.23 million | +39.4% | | **Net Profit** | Approx. RMB 16.17 million | +20.5% | | **Patient Visits** | 1,970,394 | +0.3% | - As of March 31, 2025, the Group operated 118 locations (107 clinics and 11 hospitals) with 1,566 dental chairs across 15 cities in China, with **over 70% of stores in the stable growth phase** (operating for more than 6 years), providing a solid foundation for profitability[26](index=26&type=chunk)[28](index=28&type=chunk) [Adjustment of Organizational Structure](index=8&type=section&id=II.%20ADJUSTMENT%20OF%20ORGANIZATIONAL%20STRUCTURE) The Group implemented a major organizational restructuring from a dual-brand to a four-region management model to integrate resources and enhance market responsiveness - The core of the organizational adjustment is the shift from dual-brand management to a **four-region management model** to achieve unified resource allocation and deep integration[27](index=27&type=chunk)[29](index=29&type=chunk) - Regional management aims to address consumer segmentation, facilitate natural customer flow between brands, and enable flexible strategy adjustments based on local market characteristics[31](index=31&type=chunk)[33](index=33&type=chunk) [Operation Review](index=9&type=section&id=III.%20OPERATION%20REVIEW) The Group advanced significantly in medical quality, technological innovation, cost efficiency, talent development, and brand building this fiscal year [Keeping the Original Heart and Consolidating the Quality Foundation](index=9&type=section&id=III.%20(I)%20Keeping%20the%20Original%20Heart%20and%20Consolidating%20the%20Quality%20Foundation) The Group enhanced medical quality and service safety through expert committees, specialized studios, and advanced emergency preparedness - The Group strengthened the professional guidance of eight specialist committees, including orthodontics and implantology, through regular case discussions and technical exchanges[32](index=32&type=chunk)[34](index=34&type=chunk) - An orthodontics consultation platform integrating national expert resources was launched to develop precise treatment plans for complex cases[36](index=36&type=chunk) [New Technology Leads Industry Development](index=11&type=section&id=III.%20(II)%20New%20Technology%20Leads%20Industry%20Development) The Group strengthened its technological leadership by applying digital innovations like surgical robots, CAD/CAM, and smart supply chain management - The application of **surgical robot technology** has deepened, with nearly 300 surgeries completed, achieving a precision of 0.05mm and an angular error of 0.71 degrees, becoming a core competency in implantology[40](index=40&type=chunk) - The "Friday" supply chain platform and smart cabinets enabled automated inventory tracking and full-process traceability, effectively reducing inventory backlog and waste[41](index=41&type=chunk)[43](index=43&type=chunk) [Reducing Cost and Increasing Efficiency to Unleash Profit Potential](index=12&type=section&id=III.%20(III)%20Reducing%20Cost%20and%20Increasing%20Efficiency%20to%20Unleash%20Profit%20Potential) The Group implemented comprehensive cost-reduction strategies across procurement and operations to improve profitability amid economic pressures - In procurement, strategies such as **centralized purchasing and multi-sourcing** were implemented to lower costs[42](index=42&type=chunk)[44](index=44&type=chunk) - In operations, refined management was achieved by renegotiating leases, optimizing underperforming stores, adjusting staffing, and introducing digital tools to reduce expenses[42](index=42&type=chunk)[44](index=44&type=chunk) [Talent Cultivation to Achieve Organizational Transition](index=13&type=section&id=III.%20(IV)%20Talent%20Cultivation%20to%20Achieve%20Organizational%20Transition) The Group expanded its professional team by increasing the number of full-time dentists and enhancing its systematic training programs - The number of full-time dentists increased to 999, with **nearly half having served the Group for over five years**, indicating high talent retention[46](index=46&type=chunk)[47](index=47&type=chunk) - This fiscal year, the Group recruited **8 clinic directors and discipline leaders**, including 6 with doctoral degrees, adding high-level academic strength to the team[46](index=46&type=chunk)[47](index=47&type=chunk) [Strengthening our Brand Foundation with Social Responsibilities](index=15&type=section&id=III.%20(V)%20Strengthening%20our%20Brand%20Foundation%20with%20Social%20Responsibilities) The Group reinforced its brand by embedding corporate culture, promoting public health education, and engaging in community service and philanthropy - The corporate culture was refined into a 48-character code of conduct and promoted through training and themed activities to enhance employee identification[50](index=50&type=chunk)[52](index=52&type=chunk) - In partnership with the Chinese Stomatological Association, the Group launched the **"Shining Star Project"** for autistic children, providing professional care, free consultations, and basic treatments[53](index=53&type=chunk)[55](index=55&type=chunk) [Business Outlooks](index=16&type=section&id=IV.%20BUSINESS%20OUTLOOKS) The Group's future strategy focuses on AI and digital integration, a clinic partnership mechanism, dual-brand operations, and enhanced customer channel development - **AI is a key future development strategy**, leveraging a database of over ten million cases for applications in assisted diagnosis, electronic medical records, quality control, and customer service[54](index=54&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) - The Group is actively promoting a **clinic partnership mechanism**, empowering partners with operational decision-making and greater profit sharing to foster an ownership mindset[64](index=64&type=chunk)[65](index=65&type=chunk) - The Group will maintain its **"Arrail Dental" and "Rytime Dental" dual-brand strategy** to target different consumer segments while integrating resources in technology, supply chain, and marketing[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - Channel development will be strengthened through partnerships with commercial insurance, expanding health insurance coverage, and growing the corporate client market, having already secured a new million-user corporate client this year[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Financial and Business Highlights](index=23&type=section&id=Financial%20and%20Business%20Highlights) The Group achieved profitability for the second consecutive year in FY2024/2025 through cost efficiencies, despite a slight revenue decrease Core Financial and Operational Data for FY2024/2025 | Indicator | FY2024/2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | RMB 1.688 billion | -3.3% | | **Operating Profit** | RMB 36.2 million | +39.4% | | **Net Profit** | RMB 16.2 million | +20.5% | | **Store Scale** | 118 locations | 1 new hospital opened | | **Number of Dentists** | 999 | +27 | | **Patient Visits** | 1.97 million | +0.3% | - Customer loyalty remains high, with a **revisit rate of 47.8%**, and approximately 20.6% of new patients were referred by existing patients[78](index=78&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=25&type=section&id=BUSINESS%20REVIEW) The Group operates a dual-brand strategy across 118 locations with 999 dentists, maintaining high patient loyalty and team stability Dual-Brand Operational Data Comparison (For the year ended March 31) | Indicator | Brand | 2025 | 2024 | | :--- | :--- | :--- | :--- | | **Total Patient Visits** | Arrail Dental | 516,868 | 531,894 | | | Rytime Dental | 1,453,526 | 1,433,574 | | **Total Dental Chairs** | Arrail Dental | 505 | 505 | | | Rytime Dental | 1,061 | 1,064 | | **Revenue per Dental Chair (RMB in thousands)** | Arrail Dental | 1,456 | 1,554 | | | Rytime Dental | 898 | 903 | - As of March 31, 2025, the Group had 3,111 full-time employees, including **999 dentists (32.1%)** and **1,048 nursing staff (33.7%)**[131](index=131&type=chunk) - The dentist team demonstrates high stability, with **44.3% serving for over 5 years**, 16.7% for over 10 years, and 6.4% for over 15 years[135](index=135&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) [Industry Outlook and Future Development](index=33&type=section&id=Industry%20Outlook%20and%20Future%20Development) The Group plans to capitalize on the growing Chinese dental market through seven core strategies, with AI-powered intelligent healthcare at the forefront - According to a Frost & Sullivan report, China's dental service market is projected to grow at a **CAGR of 7.5% from 2024 to 2028**, reaching nearly RMB 200 billion[142](index=142&type=chunk)[146](index=146&type=chunk) - China's dentist density (approx. 175 per million people) and annual per capita dental expenditure (approx. US$44) are **significantly lower than in mature markets like the US**, indicating substantial growth potential[143](index=143&type=chunk)[146](index=146&type=chunk) - The core of the company's future strategy is **AI empowerment**, leveraging its vast case database for applications in assisted diagnosis, case note writing, and intelligent customer service[149](index=149&type=chunk)[151](index=151&type=chunk) [Financial Review](index=41&type=section&id=FINANCIAL%20REVIEW) In FY2024/2025, revenue slightly declined to RMB 1.688 billion, but significant reductions in administrative expenses drove a 39.4% rise in operating profit Revenue by Service Type (RMB in thousands) | Service Type | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | General Dentistry | 922,607 | 54.6% | 968,150 | 55.5% | | Orthodontics | 367,806 | 21.8% | 382,457 | 21.9% | | Implantology | 309,911 | 18.4% | 357,963 | 20.5% | | Others | 88,067 | 5.2% | 37,212 | 2.1% | | **Total** | **1,688,391** | **100.0%** | **1,745,782** | **100.0%** | Key Expense Changes (RMB in millions) | Expense Item | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 1,346.3 | 1,353.1 | -0.5% | | Selling and Distribution Expenses | 125.1 | 140.8 | -11.2% | | Administrative Expenses | 174.5 | 242.8 | -28.1% | | R&D Expenses | 8.7 | 8.2 | +5.0% | - **Administrative expenses decreased by 28.1%**, primarily due to reduced share-based compensation expenses as most restricted share units had vested before the reporting period[199](index=199&type=chunk)[200](index=200&type=chunk) - As of March 31, 2025, the Group held **RMB 537 million in cash and cash equivalents**, with a gearing ratio (total borrowings/total equity) of 24.8%[239](index=239&type=chunk)[251](index=251&type=chunk) [Profiles of Directors and Senior Management](index=52&type=section&id=Profiles%20of%20Directors%20and%20Senior%20Management) This section details the professional backgrounds, responsibilities, and qualifications of the company's directors and senior management team - Founder Mr. Zou Qifang, 71, serves as Chairman and CEO, responsible for the Group's overall strategic planning and business direction, holding an MBA from the Wharton School of the University of Pennsylvania[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) - Mr. Zhang Jincai, 62, serves as Executive Director and Chief Medical Officer, overseeing the Group's medical services and operations, holding a Ph.D. in Clinical Medicine from West China Medical Center of Sichuan University[258](index=258&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [Directors' Report](index=58&type=section&id=Directors'%20Report) [Principal Risks and Uncertainties Facing the Group](index=62&type=section&id=PRINCIPAL%20RISKS%20AND%20UNCERTAINTIES%20FACING%20THE%20GROUP) The Group faces key risks related to business expansion, regulatory compliance, talent dependency, medical liabilities, and its contractual (VIE) structure - Key risks include: - Balancing business expansion with profitability - Difficulties in obtaining and renewing medical licenses - **High dependency on dental professionals** and the risk of talent attrition - Complaints, investigations, or legal proceedings related to medical malpractice - Risks associated with the **contractual arrangements (VIE structure)**[327](index=327&type=chunk)[334](index=334&type=chunk) [Share Incentive Scheme](index=78&type=section&id=SHARE%20INCENTIVE%20SCHEME) The company operates two RSU schemes to attract and retain talent, with one plan having granted over 103 million shares to date - The RSU Scheme has a total limit of 119,972,600 shares, and as of March 31, 2025, **103,838,101 shares had been granted** to 747 grantees[440](index=440&type=chunk)[449](index=449&type=chunk) - The 2022 RSU Scheme has a limit of 58,159,195 shares to be satisfied by purchasing existing shares on the market; **no shares had been granted** under this scheme as of the period end[459](index=459&type=chunk)[471](index=471&type=chunk) [Connected Transactions](index=84&type=section&id=CONNECTED%20TRANSACTIONS) The primary connected transaction involved a loan to a company wholly owned by the controlling shareholder, Mr. Zou Qifang, with terms deemed fair by the Board - The company provided a loan to Beier Holdings Limited, wholly owned by controlling shareholder Mr. Zou Qifang, with the principal reduced from US$11 million to **US$7.5 million** and the term extended to 42 months at a 5.5% interest rate[503](index=503&type=chunk)[510](index=510&type=chunk)[512](index=512&type=chunk) - To secure the loan, Mr. Zou and his indirectly held companies have pledged shares representing approximately **9.1% of the company's issued share capital**[510](index=510&type=chunk)[512](index=512&type=chunk) [Contractual Arrangements (VIE Structure)](index=91&type=section&id=CONTRACTUAL%20ARRANGEMENTS) The Group utilizes a VIE structure to control its PRC operations due to foreign ownership restrictions, which the Board has confirmed remains effective - To circumvent foreign ownership restrictions, the Group controls its dental clinic and hospital businesses in China through a series of **contractual arrangements** with Beijing Arrail, Shenzhen Rytime, and their registered shareholders[519](index=519&type=chunk)[561](index=561&type=chunk)[562](index=562&type=chunk) - The Board, including independent non-executive directors, has conducted its annual review and confirmed that the contractual arrangements were **executed effectively** during the reporting period without material changes[579](index=579&type=chunk) [Use of Proceeds from Global Offering](index=112&type=section&id=USE%20OF%20PROCEEDS%20FROM%20GLOBAL%20OFFERING) Of the HK$590 million net proceeds from the 2022 global offering, approximately HK$362 million has been used, primarily for business expansion Use of Proceeds from Global Offering (HK$ in millions) | Purpose | Total Net Proceeds | Unutilized as of Apr 1, 2024 | Utilized during the Period | Unutilized as of Mar 31, 2025 | | :--- | :--- | :--- | :--- | :--- | | **Business Expansion** | 442.4 | 232.1 | 49.2 | 182.9 | | **Build and Optimize IT Infrastructure** | 88.5 | 34.7 | 17.6 | 17.1 | | **Working Capital** | 59.0 | 41.3 | 13.6 | 27.7 | | **Total** | **589.9** | **308.1** | **80.4** | **227.7** | [Corporate Governance Report](index=115&type=section&id=Corporate%20Governance%20Report) The company maintained high corporate governance standards, complying with all code provisions except for the combined role of Chairman and CEO - The company complied with all applicable provisions of the Corporate Governance Code, with the only deviation being the **combined role of Chairman and CEO** held by founder Mr. Zou Qifang, which the Board believes ensures leadership continuity[637](index=637&type=chunk)[648](index=648&type=chunk) - The Board has established Audit, Remuneration, and Nomination committees, all composed of **independent non-executive directors**, ensuring independent and professional decision-making[683](index=683&type=chunk) - The Board is responsible for maintaining a sound and effective internal control and risk management system, reviewing its effectiveness annually with oversight from the Audit Committee[746](index=746&type=chunk)[751](index=751&type=chunk) [Independent Auditor's Report](index=136&type=section&id=Independent%20Auditor's%20Report) PricewaterhouseCoopers issued an unmodified audit opinion, highlighting revenue recognition and goodwill impairment as key audit matters - The auditor issued an **unmodified opinion** on the Group's consolidated financial statements[786](index=786&type=chunk) - Key Audit Matters included: - **Estimation of revenue from orthodontic and implant services**, due to the high degree of estimation uncertainty in recognizing revenue based on the progress of performance obligations - **Goodwill impairment assessment**, which relies on subjective management assumptions in cash flow projections, such as revenue growth and discount rates[797](index=797&type=chunk)[798](index=798&type=chunk)[808](index=808&type=chunk) [Consolidated Financial Statements](index=146&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=146&type=section&id=Consolidated%20Income%20Statement) For the year ended March 31, 2025, the Group's revenue was RMB 1.688 billion, with net profit increasing by 20.5% to RMB 16.17 million Consolidated Income Statement Summary (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 1,688,391 | 1,745,782 | | Gross Profit | 342,090 | 392,676 | | Operating Profit | 36,232 | 25,995 | | Profit before Income Tax | 23,835 | 17,085 | | **Profit for the Year** | **16,168** | **13,416** | | Profit attributable to Owners of the Company | 21,989 | 17,162 | | Basic Earnings per Share (RMB) | 0.05 | 0.04 | [Consolidated Balance Sheet](index=148&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, the Group's total assets were RMB 3.16 billion and total equity was RMB 1.78 billion, with a strong cash position Consolidated Balance Sheet Summary (RMB in thousands) | Item | As of Mar 31, 2025 | As of Mar 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **3,160,505** | **3,267,927** | | Non-current Assets | 1,403,617 | 1,534,999 | | Current Assets | 1,756,888 | 1,732,928 | | **Total Liabilities** | **1,376,927** | **1,430,670** | | Current Liabilities | 914,770 | 855,232 | | Non-current Liabilities | 462,157 | 575,438 | | **Total Equity** | **1,783,578** | **1,837,257** | | Equity attributable to Owners of the Company | 1,713,865 | 1,755,167 | [Consolidated Statement of Cash Flows](index=152&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group generated RMB 231 million in net cash from operations, with a year-end cash balance of RMB 537 million after investment and financing activities Consolidated Statement of Cash Flows Summary (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 231,141 | 276,653 | | Net cash used in investing activities | (153,519) | (175,997) | | Net cash used in financing activities | (206,844) | (106,963) | | **Net decrease in cash and cash equivalents** | **(129,222)** | **(6,307)** | | Cash and cash equivalents at beginning of year | 656,280 | 621,860 | | **Cash and cash equivalents at end of year** | **536,864** | **656,280** | [Five Year Financial Summary](index=296&type=section&id=Five%20Year%20Financial%20Summary) This section presents key financial data from FY2021-2025, showing a return to profitability in the last two years and steady asset growth Five Year Financial Data Summary (RMB in thousands) | For the year ended March 31 | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,688,391 | 1,745,782 | 1,473,741 | 1,623,553 | 1,515,127 | | **Gross Profit** | 342,090 | 392,676 | 247,084 | 336,557 | 364,420 | | **Operating Profit/(Loss)** | 36,232 | 25,995 | (190,290) | (28,572) | 124,467 | | **Profit/(Loss) for the Year** | 16,168 | 13,416 | (223,348) | (696,400) | (597,762) | | **Total Assets** | 3,160,505 | 3,267,927 | 3,061,636 | 2,990,347 | 2,350,754 | | **Total Liabilities** | 1,376,927 | 1,430,670 | 1,365,746 | 1,379,850 | 4,807,331 | | **Total Equity** | 1,783,578 | 1,837,257 | 1,695,890 | 1,610,497 | (2,456,577) |

7月24日，截至港股收盘，恒生指数上涨0.51%，报25667.18点。瑞尔集团（06639.HK）收报2.68港元/ 股，上涨9.84%，成交量249.3万股，成交额653.18万港元，振幅11.89%。 瑞尔之道 瑞尔集团未来核心战略——"ARRAILCARE",即瑞尔之道 瑞尔集团致力于打造一套标准化、体系化的流程和准则,为客户提供"瑞尔5A体验"。瑞尔将医疗服务的 全流程分解为五个不同的关键场景,以每一个客户的体验接触点和感知作为发力点,透过服务标准、内 容、质量的专业化提升,为客户创造更加舒适化的5A级服务体验,服务焦点从"客户满意度"提升至"客户 忠诚度"。 行业估值方面，医疗保健设备和服务行业市盈率（TTM）平均值为-1.39倍，行业中值1.36倍。瑞尔集团 市盈率57.56倍，行业排名第47位；其他巨星医疗控股（02393.HK）为0.32倍、京玖康疗（00648.HK） 为0.38倍、医汇集团（08161.HK）为2.35倍、环球医疗（02666.HK）为5.32倍、瑞慈医疗（01526.HK） 为5.35倍。 资料显示，瑞尔集团有限公司以客户为中心 - 顾客即家人 顾客即家人,是瑞尔的服务 ...

Core Insights - 瑞尔集团 reported a significant increase in revenue and profits for the fiscal year ending March 31, 2025, with revenue of approximately 1.688 billion RMB and an operating profit of about 36.2 million RMB, reflecting a year-on-year increase of 39.4% [1] - The company attributed its growth to the application of AI technology and digital diagnostics in the dental healthcare sector, enhancing service efficiency and quality [1] - The dual-brand strategy of 瑞尔齿科 and 瑞泰口腔 has allowed the company to penetrate various customer segments, solidifying its market leadership [2] Financial Performance - For the fiscal year, 瑞尔集团's profit attributable to owners was 21.989 million RMB, marking a year-on-year increase of 28.13% [1] - The annual customer service volume reached nearly 2 million, indicating a sustained increase in market influence [2] Brand Strategy - 瑞尔齿科 generated approximately 735 million RMB in revenue, maintaining a leading position in the high-end market with a high customer repurchase rate [2] - 瑞泰口腔 accelerated its expansion in the mid-range market, achieving revenue of about 953 million RMB and adding one new dental hospital during the reporting period [2] Operational Expansion - As of March 31, 2025, the company operated 118 locations, including 11 hospitals, across 15 major cities, with a total of 1,566 dental chairs [2] - The company has established a strong presence in key cities such as Beijing, Shanghai, Guangzhou, and Shenzhen [2] Industry Outlook - Recent government policies in China are encouraging the healthy development of the dental healthcare industry, presenting new growth opportunities [2] - The domestic dental industry is expected to continue growing in the medium to long term due to rising living standards and increased health awareness [2] Strategic Initiatives - The company has outlined a clear strategic plan to enhance long-term competitiveness, focusing on AI technology, digital tools, and improving operational efficiency [3] - Efforts include strengthening the partner mechanism, optimizing resource allocation, and enhancing medical training to improve service quality [3] - 瑞尔集团 has established a high customer satisfaction rate of 97%, reflecting its commitment to building long-term trust with clients [3]

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) Riel Group's FY2025 revenue decreased 3.3% to RMB 1.688 billion, while operating profit increased 39.4% to RMB 36.23 million due to cost control Key Financial and Operational Metrics | Metric | For the Year Ended March 31, 2025 | For the Year Ended March 31, 2024 | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue (RMB thousands) | 1,688,391 | 1,745,782 | -3.3% | | Operating Profit (RMB thousands) | 36,232 | 25,995 | 39.4% | | Profit for the Year (RMB thousands) | 16,168 | 13,416 | 20.5% | | Total Patient Visits (Number) | 1,970,394 | 1,965,468 | 0.3% | - Revenue decline was primarily attributed to lower treatment prices due to the overall economic environment[6](index=6&type=chunk)[40](index=40&type=chunk) - Significant growth in operating profit was primarily due to the effective implementation of the Group's cost reduction and efficiency improvement measures[6](index=6&type=chunk)[63](index=63&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) Management discusses the Group's leadership in China's high-end private dental market, outlining its dual-brand strategy, operational performance, and seven future growth strategies focused on AI, efficiency, and risk control [Business Review](index=3&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group operates 118 clinics across 15 cities under a dual-brand strategy, with stable total patient visits and high customer loyalty despite mixed performance between brands - The company employs a dual-brand strategy, 'Riel Dental' for the high-end market and 'Ruitai Dental' for the mid-range market, serving different customer segments. As of March 31, 2025, it operated **118 clinics**, including 107 clinics and 11 hospitals[7](index=7&type=chunk)[13](index=13&type=chunk)[16](index=16&type=chunk) Key Operating Metrics | Operating Metric (For the Year Ended March 31) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Patient Visits** | 1,970,394 | 1,965,468 | | - Riel Dental | 516,868 | 531,894 | | - Ruitai Dental | 1,453,526 | 1,433,574 | | **Total Dental Chairs** | 1,566 | 1,569 | | **Revenue Per Dental Chair (RMB thousands)** | 1,078 | 1,112 | | - Riel Dental | 1,456 | 1,554 | | - Ruitai Dental | 898 | 903 | - During the reporting period, the number of full-time dentists increased from 972 to **999**, with the dental team averaging **11.5 years** of industry experience and high employee retention[8](index=8&type=chunk)[26](index=26&type=chunk) - Customer loyalty remained stable, with a re-visit rate of **47.8%**, and approximately **20.6%** of new patients were referred by existing patients[20](index=20&type=chunk) [Industry Outlook and Future Strategies](index=9&type=section&id=%E8%A1%8C%E4%B8%9A%E5%B1%95%E6%9C%9B%E4%B8%8E%E6%9C%AA%E6%9D%A5%E6%88%98%E7%95%A5) Despite macroeconomic challenges, China's dental market offers significant long-term growth, with the company outlining seven strategic directions including AI empowerment and comprehensive risk control - China's dental market has immense potential, with several indicators significantly lower than developed countries. For instance, China's annual dental implant volume per 10,000 people is approximately **28**, far below the US's **100** and Germany's **150**[29](index=29&type=chunk) - The core of the company's future strategy is AI empowerment, planning to leverage its high-quality case database for applications in AI dentist assistants, AI operation assistants, and other scenarios to drive an efficiency revolution[32](index=32&type=chunk) - The company will implement financial and virtual partnership mechanisms, transforming partners from 'professionals' to 'owners' to stimulate their initiative and creativity[35](index=35&type=chunk) - The company will build a comprehensive risk management system covering medical quality control, supply chain management, financial management, and ESG initiatives to ensure stable operations[38](index=38&type=chunk) [Financial Review](index=13&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) FY2025 revenue decreased 3.3% to RMB 1.688 billion due to lower treatment prices, but significant expense reductions led to a 39.4% increase in operating profit, maintaining healthy liquidity Revenue by Service Segment | Revenue by Service (RMB thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | General Dentistry | 922,607 | 968,150 | -4.7% | | Orthodontics | 367,806 | 382,457 | -3.8% | | Implantology | 309,911 | 357,963 | -13.4% | | **Total** | **1,688,391** | **1,745,782** | **-3.3%** | - Administrative expenses significantly decreased by **28.1%** year-on-year, primarily because most restricted share units vested before the reporting period, reducing share-based payment expenses from **RMB 65.6 million** to **RMB 12.92 million**[57](index=57&type=chunk)[58](index=58&type=chunk) - Selling and distribution expenses decreased by **11.2%** year-on-year, mainly due to the company's control over marketing activity budgets[55](index=55&type=chunk) - As of March 31, 2025, cash and cash equivalents decreased from **RMB 656 million** to **RMB 537 million**, primarily due to increased investments in wealth management products such as structured deposits and money market funds, classified as financial assets at fair value through profit or loss[77](index=77&type=chunk)[73](index=73&type=chunk) - Capital expenditure significantly decreased from **RMB 111 million** in the previous year to **RMB 56.8 million**, reflecting the implementation of cost optimization strategies[79](index=79&type=chunk) [Consolidated Financial Statements](index=23&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the Group's detailed consolidated financial statements for FY2025, showing increased net profit despite lower revenue, with a robust balance sheet and detailed notes [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=23&type=section&id=%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The FY2025 statement shows revenue of RMB 1.688 billion, with operating profit increasing to RMB 36.23 million due to expense control, and basic earnings per share of RMB 0.05 Consolidated Statement of Profit or Loss Highlights | Item (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 1,688,391 | 1,745,782 | | Gross Profit | 342,090 | 392,676 | | Operating Profit | 36,232 | 25,995 | | Profit for the Year | 16,168 | 13,416 | | Profit Attributable to Owners of the Company | 21,989 | 17,162 | | Basic Earnings Per Share (RMB) | 0.05 | 0.04 | [Consolidated Statement of Financial Position](index=25&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2025, total assets were RMB 3.16 billion, with total equity at RMB 1.78 billion, and net current assets of RMB 850 million indicating strong short-term solvency Consolidated Statement of Financial Position Highlights | Item (RMB thousands) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **3,160,505** | **3,267,927** | | Non-current Assets | 1,403,617 | 1,534,999 | | Current Assets | 1,756,888 | 1,732,928 | | **Total Liabilities** | **1,376,927** | **1,430,670** | | Non-current Liabilities | 462,157 | 575,438 | | Current Liabilities | 914,770 | 855,232 | | **Total Equity** | **1,783,578** | **1,837,257** | [Notes to the Financial Statements](index=27&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E8%A8%BB) Notes provide detailed supplementary information on segment operations, revenue sources, increased financial assets at fair value, stable trade receivables, and increased total borrowings - The Group's business activities are managed and evaluated under two operating segments: 'Riel Dental' and 'Ruitai Dental'[98](index=98&type=chunk) Segment Operating Profit | Segment Operating Profit (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Riel Dental | 46,497 | 83,057 | | Ruitai Dental | 41,328 | 69,962 | - Financial assets at fair value through profit or loss increased from **RMB 406 million** to **RMB 599 million**, primarily due to increased investments in wealth management products[124](index=124&type=chunk) - The Group's total borrowings increased from **RMB 356 million** to **RMB 442 million**, all classified as current liabilities[131](index=131&type=chunk) [Other Information](index=43&type=section&id=%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section covers corporate governance, dividend policy, and share repurchases, noting the combined Chairman/CEO role, no final dividend recommendation, and HKD 74.6 million in share buybacks - The company complies with the Corporate Governance Code, with one deviation: the roles of Chairman and CEO are not separated, both held by founder Mr. Zou Qifang, which the Board believes facilitates consistent leadership and decision-making efficiency[137](index=137&type=chunk) - The Board does not recommend the payment of a final dividend for the reporting period[140](index=140&type=chunk) - During the reporting period, the company repurchased **13,632,000 shares** on the market for a total consideration of approximately **HKD 74.6 million**, most of which have been cancelled[141](index=141&type=chunk)

Core Viewpoint - The recent adjustments in the Hong Kong Stock Connect have significantly impacted the stock performance of 瑞尔集团, leading to a notable decline in its share price and a shift in investor focus towards its future stock price movements after the selling pressure has been released [1][4]. Group 1: Stock Performance and Market Reaction - Following the removal from the Hong Kong Stock Connect on March 10, 瑞尔集团's stock price dropped by 19.85%, stabilizing around 2 HKD for the next two months [1]. - The proportion of shares held through the Hong Kong Stock Connect decreased from 11.48% to 10.24% shortly after the removal, but the rate of reduction slowed significantly, with only a 0.1% decrease from April 16 to May 8 [1]. - The company's recent "small step fast run" repurchase strategy has provided some stabilization to the stock price, with a monthly increase of 3.14% in April and 6.09% in May, contrasting with a 31.79% drop in March [8]. Group 2: Business Strategy and Financial Performance - 瑞尔集团's business strategy has shifted towards expansion, with a total of 123 locations across 15 cities in China as of September 30, 2024, although the pace of new openings has slowed [9]. - The company reported a net profit of nearly 4 million in the first half of 2024, indicating a return to positive growth despite the challenges faced [10]. - The dental industry is undergoing a transformation, with a significant decline in average profit margins from 28% in 2019 to 9% in 2024, leading to an increase in the number of closures among smaller clinics [11]. Group 3: Industry Trends and Regulatory Environment - The dental service industry is experiencing a downturn in investment, with a 37.6% decrease in financing transactions in 2024 compared to 2023, reflecting the challenges faced by the mid-to-lower end of the industry [11]. - Recent regulatory changes, including the introduction of the "Guidelines for the Establishment of Dental Medical Service Price Projects," aim to standardize pricing and reduce competition issues within the industry [12]. - The dental market in China is projected to grow significantly, with a compound annual growth rate of 9.7% from 2019 to 2023, indicating substantial growth potential despite current challenges [13].

Financial Performance - Revenue increased by 0.1% from RMB886.2 million for the six months ended September 30, 2023, to RMB887.5 million for the six months ended September 30, 2024[10][11] - Gross profit decreased by 13.7% from RMB202.9 million for the six months ended September 30, 2023, to RMB175.0 million for the six months ended September 30, 2024[20] - For the six months ended September 30, 2024, the company's operating profit was RMB11.9 million, a decrease from RMB14.7 million for the same period in 2023, primarily due to an increase in cost of sales[59] - Profit for the period ended September 30, 2024, was RMB 3,821,000, down from RMB 6,234,000 in 2023, reflecting a decrease of approximately 38.8%[115] - The total comprehensive loss for the period was RMB (24,064) thousand, compared to a comprehensive income of RMB 55,735 thousand for the same period in 2023[143] Expenses and Costs - The company's cost of sales increased by 4.3% from RMB683.3 million for the six months ended September 30, 2023, to RMB712.5 million for the six months ended September 30, 2024, primarily due to the increase in dental materials sold[51] - Administrative expenses decreased by 23.3% from RMB121.2 million for the six months ended September 30, 2023, to RMB92.9 million for the six months ended September 30, 2024, primarily due to a decrease in share-based compensation expenses for the RSUs[56] - Employee benefits expenses for the six months ended September 30, 2024, were RMB52.4 million, accounting for 56.4% of total expenses, compared to RMB49.3 million or 40.7% in the same period of 2023[56] - Depreciation and amortization expenses increased to RMB12.0 million, representing 13.0% of total expenses for the six months ended September 30, 2024, up from RMB10.2 million or 8.4% in 2023[56] Operational Metrics - Total patient visits increased to 1,008,786 for the six months ended September 30, 2024, compared to 986,359 for the same period in 2023[64] - The total number of dental chairs increased to 1,608 as of September 30, 2024, up from 1,530 as of September 30, 2023[64] - Revenue per dental chair decreased to RMB551,908 for the six months ended September 30, 2024, from RMB579,187 for the same period in 2023[64] - The repeat visit rate was 47.4% for the six months ended September 30, 2024, slightly down from 47.7% for the same period in 2023[66] - Approximately 20% of new patients were referred by existing patients for the six months ended September 30, 2024[66] Strategic Initiatives - The company operates dental clinics and hospitals across the PRC, focusing on ensuring medical quality and safety in dental services[5][6] - The company plans to adhere to a medical-oriented principle and prioritize medical quality management for future development[5][6] - The company continues to expand its operations and enhance corporate culture as part of its strategic initiatives[8][9] - Future plans include utilizing net proceeds from the Global Offering for business expansion and optimization of IT infrastructure[68] - The company plans to expand into new core second-tier cities in China by March 31, 2027[107] Shareholder Information - The company holds 564,030,950 total issued shares as of September 30, 2024[38] - Mr. Zou Qifang holds a total of 103,712,800 shares, representing approximately 18.39% of the company's shareholding interest[36] - The company has established a family trust for the benefits of Mr. Zou and his family members, which holds shares in various entities[38] - The company has set up Arrail Sunshine in the BVI to hold incentive shares for participants under the RSU Scheme[38] - The company has granted restricted share units to 637 participants, involving a total of 98,392,181 shares, representing 17.4% of the total issued shares[126] Market and Industry Insights - The dental services market size in China was approximately RMB150.0 billion in 2023, with an expected average annual growth rate of over 15%[200] - The market is projected to reach RMB270.0 billion by 2027, indicating significant growth potential[200] - China's dental market has a low penetration rate, suggesting vast room for development and confidence in future industry prospects[200] - The dental implant market in China has seen increased patient awareness and visits due to the centralized procurement policy, leading to a growth in basic dental treatments[120] Compliance and Governance - The Audit Committee has reviewed the unaudited interim results for the reporting period, ensuring compliance with financial reporting standards[113] - The company has adhered to all applicable laws and regulations during the reporting period, including corporate governance codes[105] - There were no changes in the information of any Director during the reporting period that required disclosure, except for the retirement of Ms. Xin Qin Jessie[106] Financial Position - The balance sheet as of September 30, 2024, shows total equity of RMB 1,738,297 thousand, down from RMB 1,811,486 thousand as of September 30, 2023[124] - As of September 30, 2024, total liabilities amounted to RMB 1,387,720, a decrease from RMB 1,415,691 as of March 31, 2024, reflecting a reduction of approximately 2%[146] - Total current liabilities increased to RMB 882,372 from RMB 840,253, representing an increase of about 5%[146] - Cash and cash equivalents at the end of the period were RMB 613,459, down from RMB 656,280, representing a decrease of 6.5%[177] - The company reported a net cash used in financing activities of RMB 144,134 for the six months ended September 30, 2024, compared to a net cash generated of RMB 22,962 in the same period last year[177]

Financial Performance - Revenue increased from RMB 886.2 million for the six months ended September 30, 2023, to RMB 887.5 million for the six months ended September 30, 2024, representing a growth of 0.1%[5] - Net profit decreased from RMB 6.2 million for the six months ended September 30, 2023, to RMB 3.8 million for the six months ended September 30, 2024, a decline of approximately 38.7%[5] - Gross profit decreased by 13.7% from RMB 202.9 million for the six months ended September 30, 2023, to RMB 175.0 million for the six months ending September 30, 2024, mainly due to the lower gross margin of dental materials compared to oral medical services[52] - Operating profit decreased from RMB 14.7 million for the six months ended September 30, 2023, to RMB 11.9 million for the six months ending September 30, 2024, primarily due to increased sales costs[65] - Net profit for the period decreased from RMB 6.2 million for the six months ended September 30, 2023, to RMB 3.8 million for the six months ending September 30, 2024, primarily due to the lower gross margin of the dental materials sales business[67] - Total revenue for the six months ended September 30, 2024, was RMB 887,468 million, compared to RMB 886,156 million for the same period in 2023[96] - Operating profit for the six months ended September 30, 2024, was RMB 11,897 million, compared to RMB 14,711 million for the same period in 2023[96] - Net profit for the six months ended September 30, 2024, was RMB 3,821 million, down from RMB 6,234 million for the same period in 2023[96] Patient and Operational Metrics - Total patient visits increased from 986,359 for the six months ended September 30, 2023, to 1,008,786 for the six months ended September 30, 2024, reflecting a growth of 2.3%[20] - The total number of dental chairs increased to 1,608 as of September 30, 2024, with a new dental hospital opened in Wuxi during the reporting period[5] - The company operates a total of 123 stores across 15 cities in China, including 112 dental clinics and 11 hospitals as of September 30, 2024[17] - The company employs 934 dentists as of September 30, 2024, to support its expanding operations[18] - The loyalty customer revisit rate for the six months ended September 30, 2024, was 47.4%, slightly down from 47.7% in the previous year[21] - The total number of dental chairs increased to 1,608 from 1,530, marking a growth of 5.1%[21] Revenue Breakdown - Revenue from general dentistry decreased by 0.4% to RMB 481.7 million, orthodontics revenue decreased by 6.3% to RMB 193.5 million, and implant revenue decreased by 8.8% to RMB 162.0 million[44] - Revenue per dental chair (in RMB) decreased to 551,908 from 579,187, a decline of approximately 4.7%[21] - Revenue from the dental segment "瑞爾齒科" was RMB 414,518,000, compared to RMB 402,664,000 in the previous year, showing a growth of 2.1%[133] - Revenue from the dental segment "瑞泰口腔" was RMB 472,950,000, down from RMB 483,492,000, reflecting a decrease of 2.3%[133] Cost and Expense Management - Employee benefits accounted for 52.6% of total sales costs, amounting to RMB 374.7 million, while depreciation and amortization accounted for 15.6% at RMB 111.1 million[49] - Sales cost increased by 4.3% from RMB 683.3 million for the six months ended September 30, 2023, to RMB 712.5 million for the six months ending September 30, 2024, primarily due to increased sales of dental materials[51] - Administrative expenses decreased by 23.3% from RMB 121.2 million for the six months ended September 30, 2023, to RMB 92.9 million for the six months ending September 30, 2024, primarily due to a reduction in share-based compensation expenses[59] - R&D expenses decreased by 13.1% from RMB 4.6 million for the six months ended September 30, 2023, to RMB 4.0 million for the six months ending September 30, 2024, mainly due to a decrease in depreciation and amortization[63] Strategic Initiatives - The company plans to expand its market presence by opening more clinics and hospitals in first and second-tier cities across China[7] - The company aims to strengthen its market penetration and monetization capabilities for the Ruili Dental brand in metropolitan areas[14] - The dual-brand strategy includes 49 clinics under the "Ruili Dental" brand and 63 clinics under the "Ruitai Dental" brand, targeting different market segments[13][15] - The company aims to strengthen its talent recruitment, training, and retention system, with nearly 20% of its medical team being campus recruits, over 30% of whom have reached management positions[35] - The company is actively promoting the use of AI technology to enhance diagnostic efficiency and patient experience[33] - The company aims to improve operational efficiency and reduce costs through various measures, including optimizing personnel allocation and lowering clinic rents[33] Governance and Compliance - The company will continue to improve its governance structure and maintain transparent communication with shareholders and regulatory bodies[38] - The company maintained compliance with corporate governance codes and regulations throughout the reporting period[167] - The audit committee, consisting of three independent non-executive directors, reviewed the interim results and financial reporting procedures[173] - The company has not identified any non-compliance issues regarding insider trading among employees during the reporting period[168] - The company has adhered to all applicable laws and regulations in its operational jurisdictions during the reporting period[169] Financial Position and Assets - Total assets as of September 30, 2024, were RMB 3,126,017,000, down from RMB 3,252,948,000 as of March 31, 2024[111] - Non-current assets decreased to RMB 1,477,702,000 from RMB 1,534,999,000[107] - Current assets decreased to RMB 1,647,774,000 from RMB 1,717,949,000[107] - Total liabilities as of September 30, 2024, were RMB 1,387,720,000, a slight decrease from RMB 1,415,691,000[111] - The company’s equity attributable to owners decreased to RMB 1,666,995,000 from RMB 1,755,167,000[111] Shareholder Returns - The company did not declare any dividends for the six months ended September 30, 2024, consistent with the previous period[165] - The company repurchased a total of 13,239,500 shares at an aggregate cost of approximately HKD 73.2 million, all of which were cancelled by September 30, 2024[172]

Financial Performance - Revenue rose by 18.5% to RMB 1,745.8 million for the year ended March 31, 2024, up from RMB 1,473.7 million[3] - Adjusted net profit surged by 370.3% to RMB 79.0 million for the year ended March 31, 2024, compared to an adjusted loss of RMB 29.2 million in the previous year[3] - Adjusted EBITDA rose by 32.9% to RMB 349.5 million for the year ended March 31, 2024, compared to RMB 263.0 million in the previous year[2] - Operating profit turned from a loss of RMB 190.3 million in 2023 to a profit of RMB 26.0 million in 2024, with adjusted operating profit at RMB 91.6 million[49] - Net profit shifted from a loss of RMB 223.3 million in 2023 to a profit of RMB 13.4 million in 2024[51] - Total revenue increased by 18.4% from RMB 1,473.7 million in 2023 to RMB 1,745.8 million in 2024[34] - Gross profit increased by 58.9% to RMB 392.7 million, driven by revenue growth and improved operational efficiency[3] - The company reported a basic earnings per share of RMB 0.04 for the year ended March 31, 2024, recovering from a loss of RMB 0.5 per share in the previous year[68] Patient and Operational Metrics - Total patient visits increased by 28.1% to 1,965,468 for the year ended March 31, 2024, compared to 1,534,162 for the previous year[2] - The number of dental chairs increased by 8.8% to 1,569 as of March 31, 2024, from the previous year's total[4] - The number of experienced dentists increased by 6.3% to 972 as of March 31, 2024, from 914 the previous year[5] - The loyalty patient revisit rate was 47.9%, slightly down from 48.1% in the previous year, with 21.6% of new patients referred by existing patients[16] - The company operates 74 stores, including 10 hospitals and 64 clinics, across 11 cities in China as of March 31, 2024[10] Market and Growth Strategy - The Chinese dental service market is projected to grow from RMB 150 billion in 2023 to RMB 270 billion by 2027, maintaining an annual growth rate of over 15%[22] - The company plans to continue expanding its network by opening more clinics and hospitals in first and second-tier cities[5] - The dual-brand strategy under "Ruili Dental" and "Ruitai Dental" aims to serve diverse economic and regional customer bases[5] - The company aims to expand its presence in existing and emerging first-tier cities in China, targeting a penetration rate increase to 55.0% by March 31, 2027[67] Financial Health and Investments - The company has no significant investments, acquisitions, or disposals of subsidiaries during the reporting period[16] - The company plans to use proceeds from global offerings for business expansion and optimization of IT infrastructure[18] - The company’s total equity increased to RMB 1,837,257 thousand as of March 31, 2024, up from RMB 1,695,890 thousand in 2023[73] - The company has pledged assets amounting to USD 23.8 million (equivalent to RMB 168.6 million) as collateral for bank loans totaling RMB 199.85 million[66] Cost Management and Expenses - Total cost of sales increased by 10.3% from RMB 1,226.7 million in 2023 to RMB 1,353.1 million in 2024, primarily due to rising labor costs and dental materials[37] - Employee benefits expenses accounted for 53.6% of total sales costs in 2024, up from 50.7% in 2023[36] - Research and development expenses decreased by 55.7% from RMB 18.5 million in 2023 to RMB 8.2 million in 2024, reflecting reduced costs in IT maintenance and development[47] - Sales and distribution expenses increased by 50.9% from RMB 93.3 million in 2023 to RMB 140.8 million in 2024, attributed to the expansion of the marketing team and increased promotional activities[41] - Administrative expenses decreased by 29.6% from RMB 344.8 million in 2023 to RMB 242.8 million in 2024, mainly due to a reduction in share-based payment expenses[44] Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and internal controls[121] - The company has adhered to all applicable laws and regulations during the reporting period, including corporate governance codes[118] - The company operates under the regulations of the Hong Kong Stock Exchange and adheres to its listing rules[127] Employee and Talent Management - The company plans to strengthen its talent recruitment, training, and retention system, with nearly 20% of its medical team being recent graduates, over 30% of whom have moved into management positions[26] - Over 48.0% of full-time dentists hold a master's degree or higher, with an average industry experience of 11.1 years[21] - The company has implemented a restricted share unit plan since September 3, 2022, to enhance employee retention and performance[125] Future Outlook and Technology - The company will actively embrace artificial intelligence to improve doctor-patient communication and operational decision-making[24] - Investment in construction and optimization of IT infrastructure is projected at RMB 88.5 million, representing 15.0% of total net proceeds[67]

2024年4月18日,瑞尔集团成立25周年庆典活动于北京圆满举办。瑞尔集团创始人、董事长兼首席执行官 邹其芳先生,中华口腔医学会名誉会长王兴先生,中华口腔医学会名誉会长俞光岩先生,原北京医院副院长 栾文民先生,中华口腔医学会理事会第四、五届副会长刘洪臣先生,中华口腔医学会理事会第三届第四届 副会长孙正女士,中国牙病防治基金会名誉理事长葛立宏先生,中国牙病防治基金会常务副秘书长马莉莉 女士等,与媒体代表、瑞尔集团高管、投资人、来自全国各地的瑞尔员工代表,共同出席庆典活动。 坚守、创新、跨越,打造世界领先的口腔医疗服务集团 从最初的一家诊所,到如今双品牌全国布局的百余家诊所,瑞尔集团已走过1/4个世纪。庆典伊始,瑞尔集 团创始人、董事长兼首席执行官邹其芳先生回顾过去,展望未来,发表了题为"坚守、创新、跨越"的主题 演讲。 邹其芳先生开场演讲 邹其芳先生首先强调了"坚守"对于瑞尔集团的重要意义。他指出,瑞尔集团始终坚持"以客户为中心、以 进取者为本"的服务理念和企业文化,秉承"诚信、专业、做好人"的价值观,不断优化医疗服务与体验。 通过坚守医疗本质,瑞尔集团为每一位客户提供有温度的医疗服务,"医疗质量即诊所生命"是 ...

Financial Performance - Total revenues increased by 14.9% to RMB886.2 million for the six months ended September 30, 2023, compared to RMB771.6 million for the same period in 2022[19]. - Gross profit rose by 21.3% to RMB202.9 million, up from RMB167.2 million, driven by increased revenue and improved operating efficiency[20]. - Net profit turned around from a loss of RMB90.0 million in the previous year to a profit of RMB6.2 million for the six months ended September 30, 2023[20]. - Adjusted net profit surged by 319.0% to RMB44.7 million, up from RMB10.7 million, reflecting ongoing operational improvements[21]. - Operating profit was reported at RMB 14.7 million, with a gross profit of RMB 202.9 million[105]. - Profit for the period turned from a loss of RMB90.0 million for the six months ended September 30, 2022, to a profit of RMB6.2 million for the six months ended September 30, 2023[161]. Patient Metrics - Patient visits reached 986,359, marking a 28.9% increase compared to the same period in 2022[22]. - Total patient visits increased from 765,216 for the six months ended September 30, 2022, to 986,359 for the six months ended September 30, 2023, representing a year-on-year increase of 28.9%[52][53]. - Repeat visit rates stood at 47.7%, with 22% of new patients referred by existing patients[18]. Business Expansion - One dental hospital and one dental clinic were opened, and six clinics were upgraded, increasing the total number of dental chairs to 1,530, a 6.1% increase since March 31, 2023[22]. - The business expansion strategy is expected to further improve operating efficiency[22]. - The company opened one new clinic and one new hospital, adding a total of 41 dental chairs during the six months ended September 30, 2023[30]. - Six existing clinics were expanded and upgraded, increasing the number of dental chairs from 46 to 73[30]. - As of September 30, 2023, the company operated a total of 123 clinics and hospitals across 15 cities in China[29]. Market Strategy - The company plans to further penetrate existing markets to drive stronger monetization under the Arrail Dental brand[45][47]. - Rytime Dental aims to expand its network by broadening its reach to targeted regions and cities across China[46][48]. - The company is focused on capturing the middle-end dental services market by offering high-quality services at attractive prices through the Rytime Dental brand[46][48]. - The company’s dual-brand strategy aims to provide differentiated services to various target markets, enhancing market presence in Tier-1 and key Tier-2 cities[123]. Financial Management - The company plans to utilize net proceeds from the Global Offering for business expansion, IT infrastructure optimization, and working capital, with no concrete plans for material investments in 2023[76]. - The financial management system will be enhanced to maintain financial health and set reasonable financial goals[101]. - The company will continue to focus on corporate governance and transparency to create more value for shareholders[101]. Employee Metrics - As of September 30, 2023, the company employed a total of 3,456 full-time employees, with 37.0% being nursing staff and 27.7% being dentists[78][79]. - Over 47.9% of full-time dentists hold a master's degree or above, with an average of 10.8 years of post-qualification experience[82]. - The average monthly revenue generated per dentist who joined in 2018, 2019, and 2020 grew at a CAGR of 24%, 39%, and 57% respectively[82]. Research and Development - Research and development expenses amounted to RMB 4.6 million, indicating ongoing investment in new technologies and services[105]. - Research and development expenses decreased by 57.3% from RMB10.7 million for the six months ended September 30, 2022, to RMB4.6 million for the six months ended September 30, 2023, reflecting a decrease in employee benefits expenses related to IT maintenance and development[151][152]. Capital Expenditures and Assets - The company incurred capital expenditures of RMB 68.3 million for the six months ended September 30, 2023, down from RMB 95.8 million for the same period in 2022[192]. - Property, plant, and equipment decreased from RMB324.2 million as of March 31, 2023, to RMB318.7 million as of September 30, 2023, primarily due to depreciation[162]. - Right-of-use assets increased from RMB692.1 million as of March 31, 2023, to RMB715.9 million as of September 30, 2023, mainly due to increased leases for dental clinics and hospitals[163]. Financial Position - Cash and cash equivalents amounted to RMB630.0 million as of September 30, 2023, compared to RMB621.9 million as of March 31, 2023[187]. - Time deposits with original maturity over three months increased from RMB52.7 million as of March 31, 2023, to RMB183.6 million as of September 30, 2023[187]. - The company had no significant contingent liabilities or legal proceedings that could adversely affect its financial condition as of September 30, 2023[190].