Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of RMB 1,137,694 thousand, representing a year-on-year increase of 9.7% compared to RMB 1,036,870 thousand in 2023[3]. - Adjusted net profit for the period was RMB 131,837 thousand, with an adjusted net profit margin of 11.6%[3]. - The company's revenue increased by 9.7% from RMB 1,036.9 million in the first half of 2023 to RMB 1,137.7 million in the first half of 2024[20]. - The profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 115,421,000, compared to RMB 111,830,000 for the same period in 2023, representing a growth of approximately 2.5%[70]. - Total comprehensive income for the period was RMB 129,729 thousand, down 17.4% from RMB 157,009 thousand in the prior year[46]. Revenue Breakdown - Revenue for beauty and wellness services reached RMB 622 million in H1 2024, a year-on-year increase of 13.6%[10]. - Revenue from beauty and wellness services amounted to RMB 622,418,000, up from RMB 547,705,000, with a notable increase in service revenue from RMB 472,987,000 to RMB 533,986,000[57]. - Medical beauty services generated RMB 441,327,000 in revenue, slightly up from RMB 439,869,000, while sub-health medical services increased significantly from RMB 49,296,000 to RMB 73,949,000[57]. - Revenue from franchise and other beauty and wellness services surged by 43.8%, from RMB 40.4 million to RMB 58.0 million, driven by network expansion and new equipment launches[23]. - Revenue from sub-health medical services grew by 50.0%, from RMB 49.3 million to RMB 73.9 million, primarily due to rapid growth in women's specialty centers[25]. Member and Customer Metrics - The number of active members served by direct-operated stores increased to 81,531, up 10.3% from 73,919 in the same period last year[3]. - The total customer traffic for direct-operated stores reached 684,659, reflecting an 11.6% increase from 613,668 in the previous year[3]. - The average spending per active member was RMB 12,608, slightly down from RMB 12,882 in the same period last year[6]. - The number of active members served increased to 78,868, up 9.9% compared to the same period last year[12]. - The average spending per active member was RMB 6,771, slightly up from RMB 6,693 in the previous year[12]. Operational Efficiency and Growth Strategy - The company aims to optimize single-store operational efficiency and expand revenue in direct-operated cities as part of its growth strategy[19]. - The company plans to integrate all 150 Nairier stores into its brand matrix by September 1, 2024, significantly increasing market share in the Greater Bay Area[4]. - The company plans to open 150 new direct and franchise stores following the acquisition of Nairui, enhancing market share in the Greater Bay Area[10]. - The company is focused on expanding its direct-operated and franchise business while upgrading medical beauty and sub-health service locations[19]. - The company anticipates that 2024 will be a pivotal year for mergers and acquisitions in the beauty industry, focusing on expanding its core city member base[5]. Acquisition and Partnerships - The company announced the acquisition of 70% of the core assets of Guangzhou Nairier Health Management Co., Ltd. for RMB 350 million, enhancing its market position in the health sector[4]. - The company completed the acquisition of 70% equity in Guangzhou Nairu Health Management Co., Ltd. for RMB 350.0 million, with 75% of the payment already made by June 30, 2024[40][43]. - The company has entered a strategic partnership with LPG to enhance its product offerings in the health and beauty sector[11]. - The company plans to actively pursue potential acquisition opportunities to enhance brand influence and industry leadership[18]. Financial Position and Cash Flow - Cash and cash equivalents amounted to RMB 196.0 million, with time deposits over three months totaling RMB 486.1 million as of June 30, 2024[35]. - The net cash generated from operating activities was RMB 222.4 million, a slight increase from RMB 222.3 million in the same period of 2023[36]. - The net cash used in investing activities for the first half of 2024 was RMB 195.9 million, primarily due to the acquisition payment of RMB 105.0 million for Nairu Health Technology and RMB 87.8 million for purchasing non-current assets[36]. - The total assets increased to RMB 3,409,708 thousand as of June 30, 2024, compared to RMB 3,302,006 thousand at the end of 2023, reflecting a growth of 3.2%[47]. - The company's equity attributable to owners increased to RMB 829,498 thousand from RMB 801,896 thousand, reflecting a growth of 3.4%[47]. Corporate Governance and Compliance - The audit committee, including one non-executive director and two independent non-executive directors, reviewed the interim financial statements and confirmed compliance with applicable accounting standards[86]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[85]. - The company has adopted the standard code for securities trading by directors and senior management, confirming compliance during the reporting period[85]. - The company will continue to review and improve its corporate governance practices to ensure adherence to the corporate governance code[85]. Research and Development - The company is focused on research and development to meet the evolving needs of customers throughout their lifecycle[92]. - The newly upgraded TimeSo "Differentiated Aesthetics" system was launched, marking a significant milestone in product innovation[14]. - The company has established a strong team of 60 experts in comprehensive minimally invasive procedures and dermatology[14]. Market Trends and Insights - The number of medical beauty service institutions in China reached 19,880, a 28% year-on-year increase, indicating a growing market[13]. - The women's health center has seen over 200% revenue growth, indicating strong market demand and customer loyalty[16]. - The company has a unique business model developed over 30 years, leveraging a nationwide beauty and health network to attract quality customers[90]. Shareholder Returns - The declared dividends for the six months ended June 30, 2024, amounted to RMB 105,161,000, up from RMB 84,009,000 in the previous year, reflecting a growth of approximately 25.1%[71]. - The company repurchased a total of 865,500 shares at a total cost of RMB 12,012,000, with 255,500 shares canceled on August 31, 2023, and 610,000 shares canceled on February 21, 2024[68].
美丽田园医疗健康(02373) - 2024 - 中期业绩