Financial Performance - Revenue increased by 14.9% to RMB 886.2 million for the six months ended September 30, 2023, compared to RMB 771.6 million for the same period in 2022[2]. - Gross profit rose by 21.3% to RMB 202.9 million, driven by increased revenue and improved operational efficiency[3]. - Net profit turned from a loss of RMB 90.0 million in the previous year to a profit of RMB 6.2 million for the six months ended September 30, 2023, representing a 106.9% improvement[2]. - Adjusted net profit surged by 319.0% to RMB 44.7 million, up from RMB 10.7 million in the prior period, due to ongoing operational improvements[3]. - Operating profit for the six months ended September 30, 2023, was RMB 14.7 million, a significant improvement from an operating loss of RMB 71.7 million in the same period of 2022[44]. - Total comprehensive income for the period was RMB 55,735 thousand, up from RMB 31,068 thousand year-on-year, reflecting a growth of approximately 79.5%[65]. - The company reported a profit of RMB 6,234 thousand for the six months ended September 30, 2023, compared to a loss of RMB 89,970 thousand in the same period of 2022, indicating a significant turnaround in performance[65]. Operational Metrics - The number of patient visits increased by 28.9% to 986,359 for the six months ended September 30, 2023, compared to 765,216 in the same period last year[2]. - The total number of dental chairs increased by 6.1% to 1,530 as of September 30, 2023, from the previous total[3]. - The company opened one dental hospital and one clinic during the reporting period, expanding its operational capacity[4]. - As of September 30, 2023, the company operated 123 locations, including 113 clinics and 10 hospitals across 15 cities in China[4]. - The dual-brand strategy includes "Ruili Dental" for high-end services and "Ruitai Dental" for mid-tier services, targeting different consumer segments[8]. - The number of dental chairs increased from 1,400 to 1,530, with an increase in patient visits per chair from 547 to 645[12]. - The revenue per dental chair rose from RMB 534,207 thousand to RMB 579,187 thousand, attributed to higher utilization rates[12]. Employee and Staffing - As of September 30, 2023, the company employed 3,456 full-time staff, with 27.7% being dentists and 37.0% nursing staff[16][17]. - Over 47.9% of full-time dentists hold a master's degree or higher, with an average industry experience of 10.8 years[18]. - The company emphasizes a strong talent recruitment, training, and retention system to maintain industry-leading medical service levels[23]. - Employee benefits accounted for 53.7% of total sales costs, amounting to RMB 366.7 million, while depreciation and amortization represented 17.4% with RMB 118.6 million[33]. Financial Health and Assets - The company's net current assets increased to RMB 907.6 million as of September 30, 2023, compared to RMB 802.6 million as of March 31, 2023[49]. - The company's right-of-use assets increased to RMB 715.9 million as of September 30, 2023, from RMB 692.1 million as of March 31, 2023, due to increased leasing of dental clinics and hospitals[48]. - The company's total assets increased to RMB 3,234,364 thousand as of September 30, 2023, compared to RMB 3,061,636 thousand as of March 31, 2023, representing a growth of about 5.6%[66]. - Total liabilities rose to RMB 1,422,878 thousand from RMB 1,365,746 thousand, marking an increase of approximately 4.2%[67]. - The company's equity attributable to owners increased to RMB 1,724,125 thousand from RMB 1,610,686 thousand, reflecting a growth of approximately 7.0%[66]. Strategic Plans and Future Outlook - The company plans to continue expanding its presence in first- and emerging second-tier cities in China[4]. - The company plans to utilize net proceeds from its global offering for business expansion and optimization of IT infrastructure[15]. - The company plans to continue improving its medical quality control as a lifeline for business development[22]. - The company plans to continue expanding its dental services in China, focusing on both general dentistry and specialized fields such as orthodontics and implants[68]. Compliance and Governance - The company confirmed compliance with all applicable laws and regulations during the reporting period, including the Hong Kong Companies Ordinance and the Securities and Futures Ordinance[99]. - The company has maintained compliance with corporate governance codes, although the roles of Chairman and CEO are held by the same individual[97]. - The audit committee, consisting of three independent non-executive directors, reviewed the company's unaudited interim results for the six months ended September 30, 2023[101]. - The company has adopted a standard code of conduct for securities trading by directors, confirming compliance by all directors during the reporting period[98].

Financial Performance - For the financial year 2022/2023, the company recorded a revenue of RMB1.47 billion, representing a year-on-year decrease of 9.2%[19] - The company achieved an Adjusted Net Loss of RMB29.2 million during the financial year[19] - Total revenue for the year ended March 31, 2023, was RMB1,473.7 million, representing a 9.2% decrease compared to RMB1,623.6 million for the previous year due to COVID-19 impacts[78] - Gross profit for the same period was RMB247.1 million, with an Adjusted Net Loss of RMB29.2 million[78] - Revenue decreased by 9.2% from RMB1,623.6 million for the year ended March 31, 2022, to RMB1,473.7 million for the year ended March 31, 2023, primarily due to COVID-19 impacts[163] - Total revenue decreased from RMB1,623.6 million for the year ended March 31, 2022, to RMB1,473.7 million for the year ended March 31, 2023, representing a decline of approximately 9.2%[179] - Gross profit decreased by 26.6% from RMB336.6 million for the year ended March 31, 2022, to RMB247.1 million for the year ended March 31, 2023[189] Operational Expansion - The company added 14 stores through construction and acquisitions, resulting in a net addition of 228 dental chairs, an increase of 18.8% compared to the previous year[22] - The company constructed four dental clinics and one dental hospital in major cities including Beijing, Guangzhou, and Chongqing during the financial year[22] - The company added 14 new stores and increased the number of dental chairs by 228, representing an 18.8% year-on-year growth in dental chairs[27] - The company opened four new dental clinics and one hospital during the reporting period, adding 89 dental chairs[86] - As of March 31, 2023, the company had a total of 123 stores, including 114 clinics and nine hospitals across 15 cities in China[87] - The company plans to continue expanding its footprint nationwide, adapting to market changes and improving management levels[74] - The company plans to continue expanding its Rytime Dental network by broadening its reach to targeted regions and cities across China[102][105] Market Presence and Strategy - As of March 31, 2023, the company established 9 dental hospitals and 114 dental clinics across 15 cities, with annual patient visits totaling 1.5 million[22] - Wuxi is identified as one of the fastest-growing cities in China, indicating significant future growth potential for Tongshan Dental[25] - The company operates under a dual-brand strategy, targeting different demographics with Arrail Dental focusing on affluent consumers and Rytime Dental targeting middle-class customers[100][102] - The dual-brand strategy aims to provide differentiated dental services to various target markets, focusing on Tier-1 and key Tier-2 cities[177] Patient Engagement and Services - Total patient visits decreased from 1,558,947 for the year ended March 31, 2022, to 1,534,162 for the year ended March 31, 2023, representing a decrease of 1.6%[110] - Repeat visit rates reached 48%, with 24% of new patients referred by existing patients[77] - The repeat visit rate for patients was 48.1% for the year ended March 31, 2023, slightly down from 48.6% in 2022[113] - Approximately 24% of new patients were referred by existing patients in the year ended March 31, 2023[113] Acquisitions and Integrations - The acquisition of Wuxi Tongshan Dental Hospital Co., Ltd. contributed RMB47.7 million in revenue to the group during the financial year[25] - The company acquired "Tongshan Dental," which includes one hospital and eight clinics, enhancing its market presence in Jiangsu province[81] - The company acquired a 51% equity interest in Tongshan Dental, which contributed revenue of RMB 47.7 million since the acquisition on August 30, 2022[116] Employee and Operational Efficiency - The company has a rich reserve of 914 full-time dentists, with an average of 11.2 years of industry experience, and over 46.4% holding master's degrees or above[63] - Employee retention rates show that 37.2%, 13.9%, and 6.1% of dentists have been with the company for over 5, 10, and 15 years respectively, indicating strong employee loyalty[139] - The company continues to enhance its professional dental team by hiring talented dentists[90] - The company has developed an operation SaaS system to streamline daily operations, improving efficiency in appointment scheduling, inventory monitoring, and medical record management[34] Financial Management and Shareholder Value - The company continues to enhance shareholder value as it completes its first full financial year post-listing[47] - The Company adopted the 2022 RSU Scheme for share repurchase to enhance retention rates of key personnel, improving competitiveness and cohesion[48] - The Company was included in the Hang Seng Composite Index and MSCI Mingsheng China Small Cap Index, which is expected to improve liquidity due to capital inflows from index funds[48] Social Responsibility and Community Engagement - The company has actively engaged in social responsibility initiatives, benefiting over 40,000 people through its oral health programs since 2011[41] - The company launched the "Healthy Teeth Card for Children," pledging to donate RMB 10 for each card sold to support children's oral health projects[41] Future Outlook - Following the pandemic, the company's performance has shown a strong rebound, indicating confidence in the future potential of the dental services market[39] - The company is confident in the future development prospects of the dental services market following the easing of pandemic restrictions, anticipating a full release of market potential[144] - The dental services market in China reached RMB145.0 billion in 2021, with an expected growth to RMB300.0 billion by 2025, maintaining an average annual growth rate of 20%[143]

Financial Performance - The company's revenue for the year ended March 31, 2023, was RMB 1,473.7 million, a decrease of 9.2% compared to RMB 1,623.6 million for the previous year due to the impact of COVID-19[3] - Gross profit for the same period was RMB 247.1 million, with an adjusted operating profit of RMB 3.8 million and an adjusted net loss of RMB 29.2 million[3] - Revenue for the fiscal year ending March 31, 2023, decreased by 9.2% to RMB 1,473.7 million from RMB 1,623.6 million for the previous year[27] - The company reported a net loss of RMB 223,348 thousand for the year ended March 31, 2023, compared to a net loss of RMB 696,400 thousand for the previous year, reflecting an improvement of approximately 68.0%[67] - The annual loss decreased from RMB 696.4 million for the year ended March 31, 2022, to RMB 223.3 million for the year ended March 31, 2023[47] - The company’s gross margin for the year ended March 31, 2023, was approximately 16.8%, down from 20.7% in the previous year[66] - The group incurred a loss before tax of RMB 217,909 thousand for the year ended March 31, 2023, compared to a loss of RMB 709,911 thousand for the previous year[78] Operational Expansion - The total number of dental chairs increased by 18.8% to 1,442 chairs as of March 31, 2023, compared to the previous year[3] - The company expanded its operations by acquiring "Tongshan Dental," which includes 1 dental hospital and 8 clinics in Wuxi, Jiangsu Province[3] - During the reporting period, the company opened 4 new dental clinics and 1 dental hospital, adding 89 dental chairs, and upgraded 4 clinics involving 50 dental chairs[4] - The company operates a dual-brand strategy with "Ruili Dental" and "Ruitai Dental," managing a total of 123 clinics and hospitals across 15 cities in China[4] - The company plans to further penetrate existing markets and expand its network in targeted regions and cities in China[9] Patient Metrics - Total patient visits decreased from 1,558,947 in the year ended March 31, 2022, to 1,534,162 in the year ended March 31, 2023, representing a decline of 1.6%[12] - The loyalty patient revisit rate was 48.1% for the year ended March 31, 2023, compared to 48.6% for the year ended March 31, 2022[13] Revenue Breakdown - The revenue breakdown for dental services shows that general dentistry accounted for RMB 790.4 million (53.6%), orthodontics RMB 328.2 million (22.3%), and implants RMB 318.3 million (21.6%) for the year ending March 31, 2023[29] - Revenue from general dentistry recognized at a point in time was RMB 790,353,000, down 9.4% from RMB 872,586,000 in 2022[81] - Revenue from orthodontics recognized over time was RMB 328,238,000, a decline of 10.4% from RMB 366,264,000 in 2022[81] - Revenue from implantology recognized over time was RMB 318,330,000, down 9.8% from RMB 353,079,000 in 2022[81] Employee Metrics - As of March 31, 2023, the company had a total of 3,409 full-time employees, with 37.4% being nursing staff and 26.8% being dentists[18] - Over 46.4% of full-time dentists hold a master's degree or higher, with an average industry experience of 11.2 years[19] Cost and Expenses - Cost of sales decreased by 4.7% from RMB 1,287.0 million in 2022 to RMB 1,226.7 million in 2023, primarily due to reductions in employee benefits and dental materials[35] - Selling and distribution expenses increased by 17.2% from RMB 79.6 million in 2022 to RMB 93.3 million in 2023, attributed to the expansion of the marketing team[39] - Administrative expenses rose by 24.9% from RMB 276.1 million in 2022 to RMB 344.8 million in 2023, driven by increased share-based compensation and professional fees[40] - R&D expenses decreased by 43.7% from RMB 32.9 million in 2022 to RMB 18.5 million in 2023, reflecting reduced employee benefits in IT development[42] Financial Position - Total assets as of March 31, 2023, were RMB 3,061,636 thousand, an increase from RMB 2,990,347 thousand as of March 31, 2022, representing a growth of about 2.4%[68] - The company’s cash and cash equivalents decreased to RMB 621,860 thousand as of March 31, 2023, down from RMB 1,052,285 thousand as of March 31, 2022, indicating a decline of approximately 41.0%[69] - The company’s total equity increased to RMB 1,695,890 thousand as of March 31, 2023, compared to RMB 1,610,497 thousand as of March 31, 2022, reflecting an increase of about 5.3%[69] Corporate Governance - The audit committee consists of three independent non-executive directors, with Mr. Zhang as the chairman, ensuring compliance with financial reporting and internal controls[126] - The company confirmed compliance with applicable laws and regulations during the reporting period, including the Companies Ordinance and the Listing Rules[123] - The company has adopted a code of conduct for directors regarding securities trading, with all directors confirming adherence during the reporting period[122] - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[121] Future Outlook - The company plans to enhance operational efficiency and market share through site expansions and local market densification strategies[21] - The company aims to strengthen its talent recruitment, training, and retention system to maintain a leading position in dental service quality[23] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[87]

Financial Performance - The company recorded revenues of RMB 772 million for the six months ended September 30, 2022, with a gross profit of RMB 167 million and an adjusted net profit of RMB 10.7 million[18]. - For the six months ended September 30, 2022, the company reported revenue of RMB 771.6 million, with a gross profit of RMB 167.2 million and adjusted net profit of RMB 10.7 million[23]. - Revenue decreased by 8.3% from RMB 841.3 million for the six months ended September 30, 2021, to RMB 771.6 million for the six months ended September 30, 2022, primarily due to a 4.9% decrease in patient visits attributed to COVID-19 impact[120]. - Total revenue for the six months ended September 30, 2022, was RMB 771.6 million, a decrease from RMB 841.3 million in the same period of 2021[136]. - Gross profit decreased by 10.8% from RMB 187.5 million for the six months ended September 30, 2021, to RMB 167.2 million for the same period in 2022[146]. - The company's loss for the period decreased from RMB 464.2 million for the six months ended September 30, 2021, to RMB 90.0 million for the six months ended September 30, 2022, representing a significant reduction[174][179]. Operational Expansion - Nine clinics/hospitals were acquired, one clinic was newly opened, and one clinic was upgraded during the reporting period[18]. - The company added 27 dentists, resulting in a total of 910 dentists across its network[18]. - The total number of dental chairs reached 1,400, representing a 16% increase compared to March 31, 2022[22]. - The company continued to expand its footprint nationwide, acquiring "Tongshan Dental," which includes one dental hospital and eight clinics[22]. - Two hospitals and four clinics are currently under construction, further strengthening the company's leadership position in China's dental market[22]. - The company opened one clinic with 16 dental chairs in April 2022 and two clinics with a total of 32 dental chairs in October 2022[25]. - The company plans to open two hospitals and four clinics in four cities during the fiscal year, adding over 160 dental chairs[59][62]. Patient Metrics - The repeat visit rate was 48%, with 24% of new patients referred by existing patients[18]. - As of September 30, 2022, the total number of patients decreased by 6.8% to 371,800 compared to 398,785 in the same period last year[51]. - Total patient visits fell by 4.9% from 805,049 to 765,216 during the same period[51]. - Patient visits dropped by 20.2% from April to June 2022 compared to the same period last year, but rebounded by 9.7% from July to September 2022[93][95]. COVID-19 Impact - The business was impacted by COVID-19, particularly in Shanghai and Beijing from April to June 2022, yet the company still achieved an adjusted net profit due to improved operational efficiency and cost control[21]. - During the reporting period, 74 clinics and hospitals with a total of 780 dental chairs were temporarily closed for 1 to 70 days due to COVID-19, significantly impacting service capacity[113]. - The company is closely monitoring the COVID-19 pandemic and evaluating its potential impact on business operations and financial conditions[116]. Employee and Talent Management - As of September 30, 2022, Arrail Group had a total of 3,387 full-time employees, with 37.2% being nursing staff and 26.9% dentists[80][81]. - The employee retention rate for dentists at the company is 35% for those who have served over 5 years[85]. - The company maintains a remuneration structure that includes salary, benefits, and bonuses based on employee performance[86]. - The company plans to intensify talent development by increasing recruitment of specialists and senior dentists while focusing on management personnel selection[102]. Brand and Market Strategy - The company operates both Arrail Dental and Rytime Dental, catering to different market segments in China[3]. - The company aims to strengthen its market position in the premium private dental service market in China, having served approximately 8.7 million patient visits over the past ten years[24]. - The company adopted a dual-brand strategy to provide differentiated dental services to various target markets[133]. - The newly opened "Samsung Tower" store in Beijing marks the launch of the "Arrail Plus" brand, aimed at consolidating the company's position in the high-end dental market[60][62]. Financial Management - Employee benefits expenses accounted for 51.5% of total cost of sales in 2022, down from 54.0% in 2021[141]. - Selling and distribution expenses increased by 18.5% from RMB 38.4 million for the six months ended September 30, 2021, to RMB 45.5 million for the same period in 2022, primarily due to increased headcounts in the marketing team and more marketing activities[153]. - Administrative expenses rose by 76.6% from RMB 103.0 million for the six months ended September 30, 2021, to RMB 181.9 million for the same period in 2022, mainly due to share-based compensation expenses of RMB 100.6 million[160]. - Net finance costs decreased from RMB 26.3 million for the six months ended September 30, 2021, to RMB 16.2 million for the same period in 2022, attributed to decreased transaction costs and increased interest income[172]. Market Outlook - The dental services market in China is expected to reach RMB 173.9 billion in 2022, with an average annual growth rate of 20%, projected to reach RMB 300.0 billion by 2025[93][94]. - The company believes that the demand for dental services will persist despite the impact of COVID-19, with expectations of performance rebound and growth[97][99]. - The company aims to enhance market penetration and brand monetization capabilities in existing markets[42].

Financial Performance - For the year ended March 31, 2022, the company achieved a revenue increase of 7.2% despite the impact of the COVID-19 pandemic[20]. - Total revenues for the year ended March 31, 2022, were RMB1.6236 billion, representing a year-on-year increase of 7.2% from RMB1.5151 billion in the previous year[76]. - Adjusted net profit for the same period was RMB65.8 million, reflecting an 18.0% increase compared to RMB55.9 million for the year ended March 31, 2021[76]. - The Adjusted Net Profit of the Group rose by 18% for the full year, reflecting improved operational efficiency[20]. - Cash and cash equivalents amounted to RMB1.05 billion, representing a year-on-year increase of 55.6%[20]. - Cash reserves were reported at RMB1.05 billion, with operating cash flows of RMB220 million, indicating strong cash-flow generation ability[75]. - Revenue increased by 7.2% from RMB 1,515.1 million for the year ended March 31, 2021, to RMB 1,623.6 million for the year ended March 31, 2022, primarily due to increased patient visits[165]. - General dentistry revenue rose by 5.3% from RMB 828.5 million in 2021 to RMB 872.6 million in 2022, while orthodontics increased by 7.0% from RMB 342.3 million to RMB 366.3 million, and implantology surged by 17.9% from RMB 299.6 million to RMB 353.1 million[174]. Patient Engagement and Demand - Patient visits increased by 13.7% during the same period, indicating a recovery in demand for dental services[20]. - The total number of patients increased from 577,996 for the year ended March 31, 2021, to 676,022 for the year ended March 31, 2022, representing an increase of 17.0%[111]. - The repeat visit rate for patients was 48.6% for the year ended March 31, 2022, an increase from 45.8% in the previous year[125][131]. - The company had 1.558 million patient visits for the year ended March 31, 2022, representing a 13.7% increase compared to the previous year[143]. Expansion and Capacity - The company opened 5 new clinics and added 46 dental chairs during the year ended March 31, 2022, expanding its service capacity[20]. - The company opened 5 new clinics with 46 dental chairs in 2022 and is constructing two hospitals and six clinics with 160 dental chairs, expected to open by March 31, 2023[24]. - The company operates 105 dental clinics and 7 hospitals across 15 cities in China as of March 31, 2022[86]. - As of March 31, 2022, the company operated a total of 112 clinics and hospitals under the "Arrail Dental" and "Rytime Dental" brands[99]. - The number of dental chairs increased from 1,168 to 1,214, with Arrail having 482 and Rytime having 732 chairs as of March 31, 2022[113]. Operational Efficiency and Quality Control - The company focuses on improving operating efficiency through real-time analysis of key performance indicators like RPC and RPD[28]. - The company has established a complete quality control system over 20 years, with daily monitoring and regular reviews to ensure clinical quality[49]. - The launch of EMR 2.0 will enhance management efficiency and clinical quality control[49]. - The company aims to enhance medical quality management through systems such as dentist recruitment and professional training to ensure high-quality dental services[148]. - The company will implement lean management practices through four working groups focused on medical quality, customer service, marketing, and operational processes[55]. Market Position and Growth Opportunities - The company’s market share in China is currently less than 2%, indicating significant growth opportunities[33]. - The dental services market in China reached RMB145.0 billion in 2021, with an expected growth to RMB300.0 billion by 2025, maintaining an average annual growth rate of 20%[143]. - The company plans to further penetrate existing markets under the Arrail Dental brand to drive stronger monetization[100]. - Rytime Dental aims to expand its network by targeting regions and cities across China, focusing on middle-class customers[101]. - The company is actively seeking acquisition targets to enter new markets[44]. Corporate Social Responsibility and Community Engagement - The company raised RMB120,000 during charity golf tournaments in 2021, benefiting over 40,000 children since 2011[41]. - The company donated RMB1 million to the Red Cross Society of China for disaster relief during the Henan rainstorm[41]. - The company will strengthen its Environmental, Social, and Governance (ESG) policies, focusing on energy saving, waste management, and community engagement through free dental services[69]. Employee Development and Corporate Culture - The company has established a talent development strategy, including internal training programs for dental experts and management personnel[54]. - The company emphasizes the importance of corporate culture in sustaining its competitive advantage and attracting customers[58]. - The company did not experience significant problems with employee retention or recruitment during the reporting period[141][142]. - As of March 31, 2022, the company had a total of 3,336 full-time employees, with 26.5% being dentists and 37.1% nursing staff[138][139]. Challenges and Future Outlook - The company acknowledges the challenges posed by the pandemic and economic changes, positioning 2022 as a new starting point for growth[70]. - The company believes that the sporadic resurgence of COVID-19 will not have a long-term material adverse impact on its business and financial conditions[159]. - The company anticipates continued growth in patient visits and revenue despite the impact of COVID-19, as the demand for dental services remains strong[152].