股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06639 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,250,000,000 | USD | | 0.02 | USD | | 25,000,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | 0 | | 本月底結存 | | | 1,250,000,000 | USD | | 0.02 | USD | | 25,000,000 | 本月底法定/註冊股本總額： USD 25,000,000 FF301 致：香港交易及結算所有限公司 公司名稱: 瑞 ...

Core Viewpoint - 瑞尔集团 has successfully navigated the challenges of the dental industry, achieving significant revenue growth and profitability despite a turbulent market environment caused by policy changes and the pandemic [2][4][8]. Financial Performance - For the fiscal year ending March 31, 2025, 瑞尔集团 reported a revenue of 1.688 billion yuan, with operating profit increasing by 39% to 36.23 million yuan and net profit rising by 20.5% to 16.17 million yuan [2]. - The company has seen a loyal customer base, with a 48% re-examination rate among existing clients and 21% of new patients coming from referrals [4][5]. Industry Challenges - In 2022, the dental industry faced a severe downturn, with 20%-30% of dental clinics (approximately 20,000-30,000) forced to close due to the pandemic and changes in dental implant pricing policies [3][4]. - The introduction of centralized procurement for dental implants led to significant price reductions, with costs for single implants dropping from 30,000-50,000 yuan to as low as 10,000 yuan in some regions [4][6]. Strategic Response - 瑞尔集团 adapted its strategy by focusing on existing customers and enhancing customer loyalty, which proved crucial during the industry's downturn [4][5]. - The company implemented an innovative partner mechanism, granting decision-making power to dentists, which has led to increased revenue for clinics managed by these partners [5]. Technological Integration - The integration of artificial intelligence (AI) into dental practices has become a core component of 瑞尔集团's strategy, improving diagnostic accuracy and operational efficiency [6][8]. - The company has accumulated over 10 million case records, leveraging this data for AI applications in various aspects of dental care [6]. Market Positioning - 瑞尔集团 employs a dual-brand strategy with 瑞尔齿科 targeting the mid-to-high-end market and 瑞泰口腔 catering to the general public, allowing for flexibility in response to market changes [7][8]. - As of March 31, 2025, 瑞尔集团 operated 107 clinics and 11 hospitals, with 瑞泰口腔 contributing 953 million yuan in revenue, surpassing 瑞尔齿科's 735 million yuan [7]. Future Outlook - The company plans to continue enhancing AI capabilities, deepen the partner mechanism, and strengthen medical training as key strategies for future growth [9].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限公司 公司名稱: 瑞爾集團有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06639 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,250,000,000 | USD | | 0.02 USD | | 25,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 1,250,000,000 | USD | | 0.02 USD | | 25,000,000 | 本月底法定/註冊股本總額： USD ...

Core Viewpoint - The Hong Kong gold stocks have strengthened, with Lingbao Gold rising nearly 7% following disappointing U.S. non-farm payroll data, which is expected to support gold prices through changes in U.S. monetary policy [1] Company Performance - Lingbao Gold (03330.HK) increased by 6.76% [1] - Chifeng Jilong Gold Mining (06639.HK) rose by 5.77% [1] - Tongguan Gold (00340.HK) saw a rise of 5.46% [1] Market Context - The U.S. non-farm payrolls added only 73,000 jobs in July, with significant downward revisions to the previous two months' data [1] - Institutions anticipate that changes in U.S. monetary policy will complement fiscal policy, providing support for gold prices [1] - There is a recommendation to pay attention to phase-based allocation opportunities in the gold sector [1]

[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) |

Group 1: Market Performance - As of July 24, the Hang Seng Index rose by 0.51%, closing at 25,667.18 points [1] - Ruil Group (06639.HK) closed at HKD 2.68 per share, up 9.84%, with a trading volume of 2.493 million shares and a turnover of HKD 6.5318 million, showing a volatility of 11.89% [1] Group 2: Financial Performance - In the last month, Ruil Group has seen a cumulative increase of 22%, but a year-to-date decline of 12.23%, underperforming the Hang Seng Index by 27.31% [2] - For the fiscal year ending March 31, 2025, Ruil Group reported total revenue of CNY 1.688 billion, a year-on-year decrease of 3.29%; net profit attributable to shareholders was CNY 21.989 million, an increase of 28.13%; gross margin stood at 20.26%, and the debt-to-asset ratio was 43.57% [2] Group 3: Valuation and Ratings - Currently, there are no institutional investment ratings for Ruil Group [3] - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -1.39 times, with a median of 1.36 times; Ruil Group's P/E ratio is 57.56 times, ranking 47th in the industry [3] Group 4: Company Philosophy and Strategy - Ruil Group emphasizes a customer-centric service philosophy, treating customers as family and prioritizing their health and treatment experience [4] - The company is committed to high-end service quality and continuously improving dental medical technology to enhance customer experience [4] - Ruil Group's future core strategy, "ARRAILCARE," aims to create a standardized and systematic process to provide a "5A experience" for customers, focusing on customer loyalty rather than just satisfaction [5]

Core Insights - The Chinese dental beauty industry is experiencing rapid growth, driven by increasing consumer demand for oral health and aesthetics, with a market size expected to exceed 78.5 billion yuan by 2025 [1][16][25] - The industry is characterized by three main features: explosive demand from 718 million oral disease patients, innovation in supply with a 25% penetration rate of invisible orthodontics, and rapid market expansion with a CAGR of 15.9% from 2018 to 2023 [1][12][16] Industry Overview - Dental beauty focuses on improving the appearance, shape, and alignment of teeth through non-invasive or minimally invasive techniques, aiming to unify natural aesthetics and functionality [2] - The industry includes various segments such as teeth whitening, veneer restoration, crown restoration, orthodontics, and gum shaping [2] Development Drivers - **Consumer Upgrade and Demand Change**: The shift from essential treatment to aesthetic consumption is evident, with over 60% of Gen Z viewing teeth whitening as key to confidence [4][16] - **Technological Innovation**: Breakthroughs in materials science and digital technology are reshaping industry standards, with AI aesthetic design and 3D printing significantly enhancing service efficiency [6][25] - **Policy and Capital Synergy**: Government initiatives like "Healthy China 2030" and increased financing are facilitating industry growth and standardization [7][25] - **Silver Economy and Niche Market Rise**: The aging population is driving demand for dental aesthetics, with 35% of spending on implants and aesthetic restorations coming from those aged 50 and above [8][25] Industry Chain - The industry chain exhibits high collaboration and vertical integration, with upstream focusing on high-value consumables and digital equipment, while domestic brands are rapidly replacing foreign ones in the mid-range market [9][20] Market Size and Growth - The market size grew from 28.56 billion yuan in 2018 to 59.82 billion yuan in 2023, with a projected growth to over 78.5 billion yuan by 2025 [16][18] Competitive Landscape - The industry features a multi-tiered competition structure, with foreign brands dominating the high-end market and domestic brands rapidly expanding in the mid-range and low-end markets [20][22] - The top five brands in the implant sector hold nearly 70% market share, while the invisible orthodontics market is dominated by two major players [20][22] Future Trends - **Technological Integration**: The industry is moving towards full-cycle intelligent management, integrating AI, 3D printing, and biological materials [25][26] - **Market Layering and Downstream Expansion**: The competition is characterized by high-end precision, mid-range differentiation, and low-end accessibility, with community health stations expanding rapidly [27][28] - **Ecosystem Reconstruction and Regulatory Upgrades**: The industry is evolving towards a cross-sector integration of healthcare, technology, and consumer services, with increased regulatory oversight [28]

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)

Summary of Key Points Core Viewpoint - On May 19, 38 Hong Kong-listed companies conducted share buybacks, totaling 38.39 million shares and an aggregate amount of HKD 831 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 979,000 shares for HKD 500 million, with a highest price of HKD 516.50 and a lowest price of HKD 503.00, bringing its total buyback amount for the year to HKD 21.53 billion [1][2]. - AIA Group repurchased 2.34 million shares for HKD 154 million, with a highest price of HKD 66.40 and a lowest price of HKD 64.75, totaling HKD 8.93 billion in buybacks for the year [1][2]. - China COSCO Shipping repurchased 5.56 million shares for HKD 79.36 million, with a highest price of HKD 14.40 and a lowest price of HKD 14.12, accumulating HKD 3.83 billion in buybacks for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on May 19 was from Tencent Holdings at HKD 500 million, followed by AIA Group at HKD 154 million [1][2]. - In terms of share quantity, the largest buyback was conducted by Jieli Trading at 9.18 million shares, followed by China COSCO Shipping at 5.56 million shares and NetEase Technology at 4.67 million shares [1][2]. Group 3: Additional Buyback Information - Country Garden Services conducted its first buyback of the year, while Tencent Holdings has made multiple buybacks totaling HKD 21.53 billion [2][3]. - A detailed table of buybacks on May 19 includes various companies, their respective buyback shares, amounts, highest and lowest prices, and cumulative buyback amounts for the year [2][3].