Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 117,475,000, representing a 20.3% increase from RMB 97,580,000 in the same period of 2023[2] - Gross profit for the same period was RMB 48,467,000, up 24.1% from RMB 39,029,000 year-on-year[2] - The company reported a net loss of RMB 2,997,000 for the six months ended June 30, 2024, an improvement from a net loss of RMB 4,096,000 in the prior year[2] - Basic and diluted loss per share decreased to RMB 0.32 from RMB 0.47 year-on-year[2] - The group reported a loss before tax of RMB 2,257 thousand for the six months ended June 30, 2024, compared to a loss of RMB 2,796 thousand for the same period in 2023, showing an improvement in financial performance[10] - The total loss for the reporting period was approximately RMB 3.0 million, compared to a loss of RMB 4.1 million for the six months ended June 30, 2023. The loss attributable to the parent company was about RMB 1.6 million, down from RMB 2.3 million in the previous period[52] Revenue Breakdown - Revenue from medical beauty services was RMB 83,026 thousand for the six months ended June 30, 2024, compared to RMB 85,139 thousand in the same period of 2023, indicating a slight decline of about 2.5%[13] - Revenue from medical beauty equipment products increased significantly to RMB 34,420 thousand for the six months ended June 30, 2024, up from RMB 12,441 thousand in the same period of 2023, reflecting a growth of approximately 176.5%[13] - Revenue from service offerings was RMB 83,055,000, while revenue from medical device products was RMB 34,420,000 for the six months ended June 30, 2024[14] - Revenue from medical beauty services was approximately RMB 83.0 million, a decrease of about 2.5% from RMB 85.1 million for the six months ended June 30, 2023, due to a decline in average transaction value amid intense industry competition[41] - Revenue from the sale of medical beauty equipment was approximately RMB 34.4 million, a significant increase of about 176.7% compared to RMB 12.4 million for the six months ended June 30, 2023, attributed to the introduction of high-priced collagen injection products[41] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 226,006,000, an increase from RMB 193,983,000 as of December 31, 2023[3] - Current assets totaled RMB 98,884,000 as of June 30, 2024, compared to RMB 79,616,000 at the end of 2023, reflecting a 24.1% increase[3] - Current liabilities increased to RMB 137,761,000 from RMB 92,159,000, resulting in a net current liability of RMB 38,877,000[3] - The total assets of the group as of June 30, 2024, were RMB 324,890 thousand, an increase from RMB 273,599 thousand as of December 31, 2023, representing a growth of about 18.8%[12] - The total liabilities of the group as of June 30, 2024, were RMB 174,342 thousand, compared to RMB 141,009 thousand as of December 31, 2023, indicating an increase of approximately 23.6%[12] - The total debt was approximately RMB 174.3 million as of June 30, 2024, resulting in a debt-to-equity ratio of approximately 115.8%, up from 106.3% as of December 31, 2023[59] Operational Expenses - The company incurred research and development expenses of RMB 446,000 during the reporting period[2] - The company experienced a significant increase in employee benefits expenses, totaling RMB 26,487,000 for wages and salaries, compared to RMB 25,814,000 in the previous year[17] - Selling and distribution expenses were approximately RMB 23.7 million, an increase of about RMB 0.9 million compared to RMB 22.8 million for the six months ended June 30, 2023[47] - Administrative expenses were approximately RMB 20.2 million, up from approximately RMB 18.5 million for the six months ended June 30, 2023, primarily due to increased employee costs related to managing medical beauty equipment products[48] - The group’s total unallocated expenses were RMB 11,878 thousand for the six months ended June 30, 2024, compared to RMB 10,636 thousand for the same period in 2023, reflecting an increase in operational costs[10] Strategic Developments - The company acquired distribution rights for RMB 44.79 million through a 15-year agreement with a Class III medical device supplier[24] - The company has established a medical technology exchange platform and a medical technology experience learning center in collaboration with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau[34] - The company is actively developing a research and manufacturing platform for advanced medical beauty device products, with a factory area of approximately 4,660 square meters dedicated to skin injection products[38] - The company aims to enhance the training center's role by providing a platform for medical device manufacturers to showcase their products and developing high-quality courses for domestic medical beauty practitioners[35] - The company has shifted its focus from surgical implants to skin injection products in response to market changes, indicating a strategic diversification in its medical beauty device offerings[36] - The company plans to continue collaborating with renowned domestic universities to strengthen its position as a leading supplier of non-surgical medical beauty service products[38] Market Trends - The medical beauty market is expected to grow, driven by increasing consumer demand and the rise of non-surgical procedures, particularly in skin management and anti-aging[69] - The company emphasizes personalized medical beauty services as a future trend, focusing on quality management and tailored solutions for consumers[69] Corporate Governance - The company has adhered to corporate governance principles, ensuring transparency and accountability throughout the reporting period[72] - The company has not declared any interim dividends during the reporting period[70] Shareholder Actions - The company granted stock options to qualified individuals for a total of 48,630,462 shares, representing approximately 2.33% of the issued share capital as of January 26, 2024[75] - A second grant of stock options for 47,430,466 shares was made on February 23, 2024, accounting for about 2.27% of the issued share capital[75] - The board proposed a share consolidation of one share for every five existing shares, which was approved at the special general meeting on March 15, 2024[76] - The company plans to raise up to approximately HKD 20.8 million through a rights issue, with net proceeds expected to be around HKD 19.0 million after expenses[76] - Of the net proceeds, approximately HKD 9.5 million (50.0%) will be used for purchasing equipment and raw materials, HKD 7.6 million (40.0%) for regulatory registration of medical beauty devices, and HKD 1.9 million (10.0%) for general working capital[76]
瑞丽医美(02135) - 2024 - 中期业绩