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].

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].