Financial Performance - Revenue increased by 41.2% to RMB 1,036,870,000 in the first half of 2023 compared to the same period in 2022[11] - Gross profit rose by 52.5% to RMB 478,106,000, with a gross profit margin of 46.1%, up 3.3 percentage points[11] - Net profit surged by 510.2% to RMB 121,120,000, while adjusted net profit increased by 159.1% to RMB 131,217,000[11] - The company's revenue for the first half of 2023 was RMB1,036.9 million, a 41.2% increase compared to the same period in 2022[18] - Gross profit for the first half of 2023 was RMB478.1 million, with a gross profit margin of 46.1%, representing a 3.3 percentage point increase compared to the same period in 2022[18] - Revenue for the first half of 2023 increased to RMB 1,036.87 million, up 41.2% compared to RMB 734.32 million in the same period of 2022[155] - Gross profit for the first half of 2023 was RMB 478.11 million, a 52.3% increase from RMB 314.03 million in the first half of 2022[155] - Operating profit for the first half of 2023 surged to RMB 155.47 million, a 319.7% increase from RMB 37.05 million in the same period of 2022[155] - Net profit attributable to owners of the company for the first half of 2023 was RMB 111.83 million, a 639.6% increase from RMB 15.12 million in the first half of 2022[155] - Basic earnings per share for the first half of 2023 were RMB 0.49, compared to RMB 0.08 in the same period of 2022[155] - The company's total comprehensive income for the first half of 2023 was RMB 157.01 million, compared to RMB 19.78 million in the same period of 2022[157] - Total comprehensive income for the period reached RMB 147,719 thousand, with profit for the period contributing RMB 111,830 thousand and other comprehensive income adding RMB 35,889 thousand[163] - Total revenue for the six months ended June 30, 2023, was RMB 1,036,870 thousand, a significant increase from RMB 734,318 thousand in the same period in 2022[179] Store Operations and Customer Metrics - The number of active members served at direct stores grew by 21.3% to 73,919, with new active members increasing by 54.3%[14] - Client visits to direct stores increased by 33.3% to 613,668[11] - The company operates 196 direct stores, including 92 in tier-one cities and 80 in new tier-one cities, as of June 30, 2023[13] - The franchise network included 194 stores as of the same date[13] - The company's direct stores served 73,919 active members in the first half of 2023, a 21.3% increase compared to the same period in 2022[15] - The number of new active members joining in the first half of 2023 increased by 54.3% year-over-year, driven by improved efficiency in customer acquisition through digital investments[15] - Direct store client visits reached 613,668 in the first half of 2023, with an average of 6.6 visits per active member and an average spending of RMB12,882[16] - 79.6% of active members made multiple purchases of services in the first half of 2023, demonstrating high customer loyalty[16] - Franchised stores served 29,906 active members in the first half of 2023, a 28.3% increase compared to the same period in 2022[16] - The company expanded its store network to 196 direct stores and 194 franchised stores, opening 8 new direct stores and 14 franchised stores during the reporting period[34][35] - The company plans to open approximately 30 new direct and franchised stores in the second half of 2023, expanding and upgrading its store network[36][37] Digital and Online Initiatives - Digital investments improved customer acquisition efficiency, with online channels leveraging live broadcasts and private domains like WeCom and WeChat mini programs[14] - The company continued to improve its online-offline integrated operation platform, enhancing customer management and operational efficiency through digital tools[46][48] - The company launched a self-developed applet in WeCom to strengthen online organization and improve business operation, customer management, and decision-making capabilities[49] - The company launched a self-developed mini-program on WeChat Work to enhance operational efficiency and employee performance tracking[51] - The number of active members and client visits significantly increased post-pandemic, driven by the company's digital tools and brand influence[58] Service Offerings and Revenue Breakdown - The company offers diversified services, including traditional beauty, aesthetic medical, and subhealth assessment and intervention services[13] - Revenue from traditional beauty services reached RMB507.3 million in the first half of 2023, a 32.4% increase compared to the same period in 2022[23] - The number of active members for traditional beauty services was 71,787 in the first half of 2023, a 20.4% increase compared to the same period in 2022[23] - Traditional beauty services revenue increased by 32.4% to RMB 507.3 million for the six months ended June 30, 2023, with active members growing by 20.4% to 71,787[24][25] - Aesthetic medical services revenue surged by 59.6% to RMB 439.9 million, with active members increasing by 36.5% to 17,032 for the same period[28][29] - Subhealth assessment and intervention services revenue rose by 62.8% to RMB 33.5 million, with members growing by 57.3% to 2,710[30][31] - 23.4% of traditional beauty service active members purchased aesthetic medical or subhealth services, up 2.2 percentage points from the previous year[26][27] - Revenue from traditional beauty services at direct stores grew by 32.4% from RMB383.0 million in the first half of 2022 to RMB507.3 million in the first half of 2023[56][58] - Revenue from aesthetic medical services surged by 59.6% from RMB275.6 million in the first half of 2022 to RMB439.9 million in the first half of 2023[56][58] - Revenue from subhealth assessment and intervention services rose by 60.5% from RMB30.7 million in the first half of 2022 to RMB49.3 million in the first half of 2023[56][58] - Traditional beauty services contributed RMB 547,705 thousand in revenue, with direct store services accounting for RMB 472,987 thousand and product sales contributing RMB 34,351 thousand[179] - Subhealth assessment and intervention services generated RMB 49,296 thousand in revenue, with services recognized at a point in time contributing RMB 33,454 thousand and services recognized over time contributing RMB 15,842 thousand[179] - Aesthetic medical services, recognized at a point in time, contributed RMB 439,869 thousand to the total revenue[179] Strategic Investments and Acquisitions - Shanghai Beauty Farm made a strategic investment of RMB 4 million in Chengdu Youlan, acquiring a 20% equity stake in the relevant business project company[37][38] - In June 2023, the company completed the acquisition of three Changsha franchised stores for RMB 7 million, gaining a 51% equity stake and consolidating their results into the Group's financial statements[39][42] - The company received net proceeds of approximately HK261.7 million) allocated for expanding and upgrading its service network[91][94] - 10.2% (HK47.6 million) of the net proceeds were allocated for further investment in IT systems[94] - 9.9% (HK11.0 million remaining unutilized as of June 30, 2023[94] - The company plans to fully utilize the remaining net proceeds by December 31, 2026[94] New Service Launches and Innovations - The company introduced a new nursing care project focused on improving sleep disorders and regulating gastrointestinal health, combining traditional medicine with modern techniques[41][43] - A new anti-fatigue eye care service project was launched to address the increasing eye strain among clients[41][43] - The company developed and launched a women's pelvic floor health project in the Special Care Centre for Women, expanding its service scope[45][47] - The company is planning an energy intervention center, utilizing international advanced energy intervention technology to address health issues caused by aging[45][47] Expenses and Costs - The cost of sales and services increased from RMB420.3 million in H1 2022 to RMB558.8 million in H1 2023, driven by higher staff costs, increased product and consumable usage, and higher operation-related expenses[64] - Selling expenses rose from RMB120.2 million in H1 2022 to RMB166.9 million in H1 2023, primarily due to increased staff costs and higher promotion and marketing expenses[68] - R&D expenses increased from RMB15.0 million in H1 2022 to RMB17.2 million in H1 2023, mainly due to higher staff costs from increased R&D personnel[68] - General and administrative expenses decreased from RMB167.3 million in H1 2022 to RMB165.8 million in H1 2023, driven by a reduction in listing expenses of approximately RMB24.4 million, partially offset by higher staff costs[69] - Research and development expenses for the first half of 2023 were RMB 17.18 million, a 14.6% increase from RMB 14.99 million in the same period of 2022[155] - Selling expenses for the first half of 2023 were RMB 166.92 million, a 38.8% increase from RMB 120.24 million in the same period of 2022[155] - General and administrative expenses for the first half of 2023 were RMB 165.84 million, a slight decrease from RMB 167.26 million in the same period of 2022[155] - Employee benefits expenses increased to RMB 418,553 thousand for the six months ended June 30, 2023, up from RMB 332,621 thousand in the same period in 2022[192] - Total expenses for the six months ended June 30, 2023, were RMB 908,706 thousand, compared to RMB 722,777 thousand in the same period in 2022[192] Financial Position and Cash Flow - The company had cash and cash equivalents of RMB82.7 million and term deposits of RMB520.0 million as of June 30, 2023, with a significant portion held in RMB[76][77] - Net cash generated from operating activities increased by 72.8% to RMB222.3 million for the six months ended June 30, 2023, compared to RMB128.7 million in the same period in 2022[79][80] - Net cash used in investing activities was RMB653.4 million for the six months ended June 30, 2023, primarily due to the purchase of wealth management products and term deposits of approximately RMB1,066.0 million[82] - Net cash generated from financing activities was RMB337.2 million for the six months ended June 30, 2023, mainly due to proceeds of RMB506.5 million from the issuance of ordinary shares upon Global Offering[82] - The company's gearing ratio decreased to 1.6% as of June 30, 2023, from 67.2% as of June 30, 2022, primarily due to the decrease in liabilities resulting from the Global Offering proceeds[82] - The company had capital commitments of RMB21.4 million as of June 30, 2023, primarily related to leasehold improvements[82] - The company subscribed for wealth management products with an aggregate principal amount of RMB190.0 million in March and April 2023, with a fair value of RMB191.2 million as of June 30, 2023, representing approximately 6.1% of the company's total assets[84][85] - The company does not hedge against any fluctuation in foreign currency, as it is exposed to foreign exchange risk arising from currency exposures with respect to US dollars and HK dollars[85] - Total assets increased to RMB 3,111,459,000 as of June 30, 2023, compared to RMB 2,495,389,000 as of December 31, 2022, reflecting a significant growth in the company's asset base[158] - Current assets rose to RMB 1,832,650,000 as of June 30, 2023, up from RMB 1,247,783,000 as of December 31, 2022, driven by increases in inventories and financial assets at fair value through profit or loss[158] - Total equity surged to RMB 740,405,000 as of June 30, 2023, compared to RMB 203,109,000 as of December 31, 2022, primarily due to a substantial increase in share premium and retained earnings[158] - Non-current liabilities decreased slightly to RMB 380,110,000 as of June 30, 2023, from RMB 383,170,000 as of December 31, 2022, with a reduction in lease liabilities[160] - Current liabilities increased to RMB 1,990,944,000 as of June 30, 2023, from RMB 1,909,110,000 as of December 31, 2022, mainly due to higher trade payables and other payables[160] - Net current liabilities improved to RMB 158,294,000 as of June 30, 2023, compared to RMB 661,327,000 as of December 31, 2022, indicating better liquidity management[160] - Cash generated from operating activities increased to RMB 245,379 thousand, up from RMB 151,726 thousand in the same period last year[165] - Net cash inflow from operating activities was RMB 222,307 thousand, compared to RMB 128,685 thousand in the previous year[165] - The company raised RMB 506,545 thousand from the issuance of ordinary shares upon global offering[163] - Dividends declared amounted to RMB 84,009 thousand, with no dividends paid in the previous year[163] - Net cash used in investing activities was RMB 653,397 thousand, primarily due to purchases of property, plant, and equipment and other non-current assets[165] - Net cash generated from financing activities was RMB 337,205 thousand, driven by proceeds from the issuance of ordinary shares and capital injection from non-controlling interests[167] - Cash and cash equivalents at the end of the period stood at RMB 82,688 thousand, down from RMB 164,120 thousand at the beginning of the period[167] Corporate Governance and Shareholder Information - The company repurchased a total of 185,500 shares during the reporting period, with a total consideration of approximately HK23.382, with a total consideration of HK23.6909, with a total consideration of HK$4,098,525.70[104] - The company conducted internal audits on procurement and sales processes, identifying issues and proposing rectification suggestions[100] - The company established a mechanism for reviewing incompatible positions and a regular review mechanism to strengthen post-management[100] - The company has complied with all code provisions set out in the CG Code since the Listing Date and up to June 30, 2023[100] - The company will continue to review and enhance its corporate governance practices to ensure compliance with the CG Code[100] - The company has adopted the Model Code as its own code of conduct regarding dealings in the securities of the company[100] - The Audit Committee reviewed the unaudited interim condensed consolidated financial statements and the interim report of the Group for the Reporting Period[107] - As of the date of this interim report, there is no change in the Board and the information of Directors[108] - Li Yang holds 2,000,000 shares, representing 0.85% of the company's issued share capital[117] - Li Yang, together with another person, jointly holds 77,420,000 shares, representing 32.71% of the company's issued share capital[117] - Li Fangyu holds 42,400,000 shares, representing 17.92% of the company's issued share capital[117] - Li Fangyu, together with another person, jointly holds 72,580,000 shares, representing 30.67% of the company's issued share capital[117] - Lian Songyong holds 35,020,000 shares, representing 14.80% of the company's issued share capital[117] - Lian Songyong, together with another person, jointly holds 79,960,000 shares, representing 33.79% of the company's issued share capital[117] - The company has 236,661,068 shares in issue as of the date of this interim report[118] - Li Yang, Li Fangyu, Lian Songyong, and others collectively hold voting rights for 114,980,000 shares[118] - Li Yang is the power holder of Tiantian Trust, which holds 35,560,000 shares[118] - Li Fangyu is the power holder of Meimei Trust, which holds 42,400,000 shares[118] - Niu Guifen, Cui Yuanjun, and Yuan Huimin collectively hold 114,980,000 shares, representing 48.58% of the issued share capital[123] - LIY Management Holdings Limited holds 35,560,000 shares, representing 15.03% of the issued share capital[123] - LIFY Management Holdings Limited holds 42,400,000 shares, representing 17.92
美丽田园医疗健康(02373) - 2023 - 中期财报