瑞丽医美(02135) - 2024 - 中期财报

Company Information The company is incorporated in the Cayman Islands, headquartered in Hangzhou, China, with a stock code of 2135 - Ruili Medical Aesthetics International Healthcare Holdings Limited is a company incorporated in the Cayman Islands with stock code 2135, headquartered in Hangzhou, China, and a principal place of business in Hong Kong[9][10] Management Discussion and Analysis This section provides an overview of the company's operational performance, financial results, and strategic initiatives during the reporting period Business Review As a leading medical aesthetic service provider in the Yangtze River Delta, the Group achieved a 20.4% increase in total revenue in H1 2024, driven by strong sales of medical aesthetic device products, while narrowing net loss Key Performance Indicators for H1 2024 | Indicator | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | Approx. RMB 117,500 thousand | Approx. RMB 97,600 thousand | +20.4% | | Loss for the Period | Approx. RMB 3,000 thousand | Approx. RMB 4,100 thousand | -26.8% | | Loss Attributable to Owners of the Parent | Approx. RMB 1,600 thousand | Approx. RMB 2,300 thousand | -30.4% | | Active Customers | Approx. 31,700 persons | Approx. 31,100 persons | +1.9% | | New Customers | Approx. 12,100 persons | Approx. 12,600 persons | -4.1% | | Repeat Customers | Approx. 19,600 persons | Approx. 18,500 persons | +5.9% | | Average Spending per Customer | Approx. RMB 2,621 | Approx. RMB 2,978 | -13.6% | - The company's strategic focus shifted to non-surgical procedures, transitioning medical aesthetic device product sales from surgical implants to higher-demand dermal injectable products like collagen, with collagen injectable product sales reaching approximately RMB 25.2 million in May and June 2024[14] - To optimize resources and save expenses, the company merged the business of Hangzhou Beilifeier Medical Aesthetic Clinic into the Hangzhou Ruili Medical Aesthetic Hospital flagship store[11] Financial Review In H1 2024, total revenue grew 20.4% to RMB 117.5 million, driven by a 176.7% surge in medical aesthetic device product sales, while core medical aesthetic services revenue declined 2.5% due to intense competition and lower average spending Revenue Analysis Total revenue increased by 20.4%, primarily driven by a 176.7% surge in medical aesthetic device product sales to RMB 34.4 million, while medical aesthetic services revenue, accounting for 70.7% of total, decreased by 2.5% Revenue by Service Segment (Six Months Ended June 30) | Service Segment | 2024 Revenue (RMB thousands) | Proportion (%) | 2023 Revenue (RMB thousands) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 83,026 | 70.7 | 85,139 | 87.3 | (2.5) | | - Surgical Aesthetic Services | 2,586 | 2.2 | 3,791 | 3.9 | (31.8) | | - Minimally Invasive Aesthetic Services | 40,134 | 34.2 | 43,504 | 44.6 | (7.7) | | - Dermatology Aesthetic Services | 39,772 | 33.9 | 36,296 | 37.2 | 9.6 | | Medical Aesthetic Device Product Sales | 34,420 | 29.3 | 12,441 | 12.7 | 176.7 | | Total | 117,475 | 100.0 | 97,580 | 100.0 | 20.4 | Cost of Sales Analysis Cost of sales increased by 17.9% to RMB 69 million, mainly due to a 303.7% surge in cost of inventories sold, driven by the significant growth in medical aesthetic device product sales Cost of Sales by Nature (Six Months Ended June 30) | Cost Nature | 2024 (RMB thousands) | Proportion (%) | 2023 (RMB thousands) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of Consumables Used | 36,639 | 53.1 | 33,629 | 57.4 | 9.0 | | Cost of Inventories Sold | 10,311 | 14.9 | 2,554 | 4.4 | 303.7 | | Staff Costs | 14,638 | 21.2 | 14,241 | 24.3 | 2.8 | | Others | 7,420 | 10.8 | 8,127 | 13.9 | (8.7) | | Total | 69,008 | 100.0 | 58,551 | 100.0 | 17.9 | Gross Profit Analysis Total gross profit increased by 24.2% to RMB 48.5 million, with the overall gross profit margin slightly rising to 41.3%, primarily driven by a 143.8% increase in gross profit from medical aesthetic device product sales Gross Profit and Gross Margin by Service (Six Months Ended June 30) | Service Segment | 2024 Gross Profit (RMB thousands) | 2024 Gross Margin (%) | 2023 Gross Profit (RMB thousands) | 2023 Gross Margin (%) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 24,329 | 29.3 | 29,142 | 34.2 | (16.5) | | Medical Aesthetic Device Product Sales | 24,109 | 70.0 | 9,887 | 79.5 | 143.8 | | Total | 48,467 | 41.3 | 39,029 | 40.0 | 24.2 | Expenses, Profitability, and Liquidity Other income and gains significantly increased to RMB 10 million, mainly from fair value gains on contingent consideration, while the company's net current liabilities expanded to RMB 38.9 million at period-end - Other expenses significantly increased, primarily due to the recognition of an RMB 13.3 million impairment loss on intangible assets during the reporting period[25] Key Financial Position (June 30, 2024) | Indicator | Amount (RMB) | | :--- | :--- | | Cash and Bank Balances | RMB 34.8 million | | Net Current Liabilities | RMB 38.9 million | | Unutilized Bank Facilities | RMB 15 million | | Interest-bearing Bank Borrowings | RMB 15 million | | Gearing Ratio | 115.8% | Employees and Remuneration Policy As of June 30, 2024, the company had 321 employees in China, a decrease from 335 at the end of 2023, with total staff costs of approximately RMB 34.7 million, representing 29.6% of total revenue Employee Headcount Structure | Function | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Management | 5 | 6 | | Doctors and Medical Staff | 131 | 124 | | Sales, Marketing, Customer Service, and Other Business Personnel | 139 | 167 | | Finance and Administrative Personnel | 46 | 38 | | Total | 321 | 335 | - Total staff costs during the reporting period were approximately RMB 34.7 million (including RMB 3.7 million in share option expenses), accounting for 29.6% of total revenue, lower than 33.6% in the same period last year[31] Use of Proceeds The company disclosed the use of proceeds from its 2020 IPO and 2024 rights issue, with HKD 9.5 million from the IPO for organic development and HKD 7.6 million from the rights issue for medical device registration still unutilized Use of Net Proceeds from IPO (As of June 30, 2024) | Purpose | Planned Use (HKD millions) | Actual Use (HKD millions) | Unutilized (HKD millions) | | :--- | :--- | :--- | :--- | | Expansion of Medical Aesthetic Institution Network | 58.0 | 48.5 | 9.5 | | Purchase of New Equipment and Consumables | 9.0 | 9.0 | – | | Brand Promotion | 6.5 | 6.5 | – | | General Working Capital | 8.2 | 8.2 | – | | Total | 81.7 | 72.2 | 9.5 | Use of Net Proceeds from 2024 Rights Issue (As of June 30, 2024) | Purpose | Planned Use (HKD millions) | Actual Use (HKD millions) | Unutilized (HKD millions) | | :--- | :--- | :--- | :--- | | Purchase of Equipment and Raw Materials | 9.5 | 9.5 | – | | Medical Device Product Registration and Filing | 7.6 | – | 7.6 | | General Working Capital | 1.9 | 1.9 | – | | Total | 19.0 | 11.4 | 7.6 | Outlook The company anticipates continued expansion in the medical aesthetics market, particularly in non-surgical procedures, and plans to focus on developing personalized, customized services and products to meet diverse consumer demands - The company believes non-surgical medical aesthetic procedures will continue to rapidly gain market share due to their minimal invasiveness, quick recovery, and low risk, with skin management and anti-aging being the largest sub-segments in demand[38] - The future trend will be personalized and customized medical aesthetic services, with the company planning to introduce more distinctive services and products through refined management to meet diverse consumer needs[39] Corporate Governance and Other Information This section details the company's corporate governance practices, including director and major shareholder interests, share option schemes, and significant events during the reporting period Directors' and Major Shareholders' Interests As of June 30, 2024, Mr. Fu Haishu, Chairman, held 53.10% of the total issued shares through his wholly-owned company, Ruide Consulting Management Limited, making him the controlling shareholder Major Shareholders' Shareholding | Name/Entity | Capacity/Nature of Interest | Number of Shares Held | Proportion | | :--- | :--- | :--- | :--- | | Mr. Fu Haishu | Interest in controlled corporation | 295,808,923 | 53.10% | | Ruide Consulting Management Limited | Beneficial owner | 295,808,923 | 53.10% | Share Option Scheme During the reporting period, the company granted 96,060,928 new share options and 47,430,466 options lapsed, with 158,223,563 options remaining unexercised at period-end Summary of Share Option Scheme Movements | Item | Number of Share Options | | :--- | :--- | | Unexercised at Beginning of Period | 156,869,538 | | Granted During the Period | 96,060,928 | | Lapsed During the Period | 47,430,466 | | Exercised During the Period | – | | Cancelled During the Period | – | | Unexercised at End of Period | 158,223,563 | Significant Events During the Reporting Period In H1 2024, the company completed a 5-for-1 share consolidation in March and a 1-for-3 rights issue in April, raising approximately HKD 19 million in net proceeds for equipment purchases and medical device registration - The company completed a share consolidation on March 19, 2024, consolidating every five existing shares into one[49] - The company completed a rights issue on April 25, 2024, issuing approximately 139 million new shares and raising net proceeds of approximately HKD 19 million, allocated for purchasing production equipment and raw materials (50%), medical device product registration (40%), and general working capital (10%)[52] Independent Review Report This section presents the auditor's conclusion on the interim financial information, confirming its compliance with relevant accounting standards Conclusion of Review Ernst & Young, the auditor, conducted a review of the Group's interim financial information and found no matters indicating non-compliance with International Accounting Standard 34 - Ernst & Young, the auditor, issued a standard unqualified review conclusion, stating that the interim financial information complies in all material respects with relevant accounting standards[57] Interim Condensed Consolidated Financial Statements This section provides the condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows, offering a summary of the company's financial performance and health Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the company reported revenue of RMB 117.5 million, a 20.4% increase, and a narrowed loss for the period of RMB 3 million, with basic loss per share of RMB 0.32 cents Summary of Consolidated Statement of Profit or Loss for H1 2024 | Item (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 117,475 | 97,580 | | Gross Profit | 48,467 | 39,029 | | Loss Before Tax | (2,257) | (2,796) | | Loss for the Period | (2,997) | (4,096) | | Loss Attributable to Owners of the Parent | (1,617) | (2,255) | | Basic Loss Per Share (RMB cents) | (0.32) | (0.47) | Statement of Financial Position As of June 30, 2024, total assets were RMB 324.9 million, with non-current assets significantly increasing, but current liabilities exceeded current assets by RMB 38.9 million, indicating short-term liquidity pressure Summary of Consolidated Statement of Financial Position | Item (RMB thousands) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-Current Assets | 226,006 | 193,983 | | Total Current Assets | 98,884 | 79,616 | | Total Assets | 324,890 | 273,599 | | Total Current Liabilities | 137,761 | 92,159 | | Total Non-Current Liabilities | 36,581 | 48,850 | | Total Liabilities | 174,342 | 141,009 | | Net Assets | 150,548 | 132,590 | | Net Current (Liabilities)/Assets | (38,877) | (12,543) | Statement of Cash Flows In H1 2024, net cash generated from operating activities was RMB 2.04 million, significantly lower than the prior period, while financing activities provided RMB 19.68 million, resulting in a period-end cash balance of RMB 34.48 million Summary of Consolidated Statement of Cash Flows (Six Months Ended June 30) | Item (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 2,043 | 6,986 | | Net Cash Flows Used in Investing Activities | (3,307) | (30,022) | | Net Cash Flows from Financing Activities | 19,684 | 1,384 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 18,420 | (21,652) | | Cash and Cash Equivalents at Beginning of Period | 15,930 | 43,937 | | Cash and Cash Equivalents at End of Period | 34,476 | 22,906 | Notes to the Financial Statements This section provides detailed explanatory notes to the interim condensed consolidated financial statements, covering operating segments, intangible assets, and events after the reporting period Operating Segment Information The company operates in medical aesthetic services, consulting services, and medical aesthetic device products, with the latter showing significant revenue growth and segment profit, while medical aesthetic services shifted from profit to loss Summary of Segment Results (Six Months Ended June 30, 2024) | Segment (RMB thousands) | Segment Revenue | Segment Results | | :--- | :--- | :--- | | Medical Aesthetic Services | 83,026 | (2,983) | | Consulting Services | 29 | (364) | | Medical Aesthetic Device Products | 36,625 | 14,439 | Intangible Assets During the reporting period, the company acquired a 15-year distribution right for RMB 44.79 million, significantly increasing intangible assets, but also recognized an RMB 13.28 million impairment loss on an exclusive distributor agreement due to a subsidiary's declining performance - The Group acquired a 15-year distribution right at a cost of RMB 44.792 million by signing a purchase and sales agreement with a Class III medical device supplier[83] - An impairment loss of RMB 13.279 million was recognized on the intangible asset related to the exclusive distributor agreement due to the declining performance of Jiumei Xinhe[83] Events After the Reporting Period On August 13, 2024, the company terminated a proposed capital injection plan with Hangzhou Tianxin Medical Aesthetic Hospital Co., Ltd., and is set to recover an earnest money deposit of RMB 20 million - The company terminated its capital injection plan for Hangzhou Tianxin Medical Aesthetic Hospital Co., Ltd. on August 13, 2024, and will recover an earnest money deposit of RMB 20 million[97]