瑞丽医美(02135) - 2025 - 中期业绩

Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Overview of Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue decreased by 28.0% year-on-year to RMB 84,598 thousand, gross profit decreased by 39.9% to RMB 29,135 thousand, and loss for the period expanded to RMB 9,462 thousand, with basic loss per share attributable to owners of the parent company at RMB 1.36 cents Statement of Profit or Loss Summary | Metric | 2025 (Thousand RMB) | 2024 (Thousand RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 84,598 | 117,475 | -28.0 | | Cost of Sales | (55,463) | (69,008) | -19.6 | | Gross Profit | 29,135 | 48,467 | -39.9 | | Other Income and Gains | 1,302 | 9,950 | -86.9 | | Selling and Distribution Expenses | (20,115) | (23,687) | -15.1 | | Administrative Expenses | (15,788) | (20,207) | -21.9 | | Research and Development Expenses | (807) | (446) | 80.9 | | Other Expenses | (550) | (14,717) | -96.3 | | Finance Costs | (1,398) | (1,577) | -11.3 | | Loss Before Tax | (8,284) | (2,257) | 267.0 | | Income Tax Expense | (1,178) | (740) | 59.2 | | Loss for the Period | (9,462) | (2,997) | 215.7 | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | 368.1 | | Basic and Diluted Loss Per Share (RMB Cents) | (1.36) | (0.32) | 325.0 | Interim Condensed Consolidated Statement of Financial Position Overview of Financial Position As of June 30, 2025, the company's total assets were RMB 240,890 thousand, a slight decrease from December 31, 2024, with net current liabilities expanding to RMB 47,136 thousand and net assets at RMB 88,317 thousand Financial Position Summary | Metric | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 157,746 | 159,489 | -1.1 | | Total Current Assets | 83,144 | 90,434 | -8.0 | | Total Current Liabilities | 130,280 | 123,588 | 5.4 | | Net Current Liabilities | (47,136) | (33,154) | 42.2 | | Total Assets Less Current Liabilities | 110,610 | 126,335 | -12.4 | | Total Non-current Liabilities | 22,293 | 30,817 | -27.7 | | Net Assets | 88,317 | 95,518 | -7.5 | | Total Equity | 88,317 | 95,518 | -7.5 | Notes to the Interim Condensed Consolidated Financial Information 1. Basis of Preparation This interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements; despite net current liabilities, the Board considers the going concern basis appropriate - The financial information is prepared in accordance with International Accounting Standard 34 and is consistent with the annual financial statements[6] - As of June 30, 2025, net current liabilities amounted to RMB 47,136 thousand, but the Board considers the going concern assumption reasonable based on unutilized bank facilities and expected operating cash flows[6] 2. Changes in Accounting Policies and Disclosures This period saw the initial adoption of revised International Financial Reporting Standards, including amendments to IAS 21 regarding lack of exchangeability, which had no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are all exchangeable - Adoption of amendments to International Accounting Standard 21 concerning the assessment of currency exchangeability[7][8] - The amendments have no impact on the interim financial information as all currencies used by the Group are exchangeable[8] 3. Operating Segment Information The Group's operating segments include medical aesthetic services, consulting services, and device products; as of June 30, 2025, external customer revenue for medical aesthetic services and device products both decreased, leading to an overall segment loss Segment Revenue for the Six Months Ended June 30, 2025 (Thousand RMB) | Segment | Sales to External Customers | Inter-segment Sales | Total Segment Revenue | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | – | 74,937 | | Consulting Services | 302 | 985 | 1,287 | | Device Products | 9,359 | 3,785 | 13,144 | | Total | 84,598 | 4,770 | 89,368 | Segment Revenue for the Six Months Ended June 30, 2024 (Thousand RMB) | Segment | Sales to External Customers | Inter-segment Sales | Total Segment Revenue | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 83,026 | – | 83,026 | | Consulting Services | 29 | – | 29 | | Device Products | 34,420 | 2,205 | 36,625 | | Total | 117,475 | 2,205 | 119,680 | Segment Results (Thousand RMB) | Segment | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | (1,787) | (2,983) | | Consulting Services | (1,518) | (364) | | Device Products | 3,821 | 14,439 | | Total Segment Results | 516 | 11,092 | | Loss Before Income Tax | (8,284) | (2,257) | Segment Assets (Thousand RMB) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | 65,214 | 80,270 | | Consulting Services | 6,284 | 8,850 | | Device Products | 72,033 | 76,337 | | Total Assets | 240,890 | 249,923 | Segment Liabilities (Thousand RMB) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | 87,247 | 91,427 | | Consulting Services | 934 | 1,026 | | Device Products | 1,475 | 18,723 | | Total Liabilities | 152,573 | 154,405 | 4. Revenue, Other Income and Gains For the six months ended June 30, 2025, total revenue was RMB 84,598 thousand, a 28.0% year-on-year decrease, with medical aesthetic services revenue down 9.7%, medical aesthetic device product revenue significantly down 72.8%, and consulting services revenue notably up 941.4%; total other income and gains decreased by 86.9% year-on-year, mainly due to reduced fair value gains on contingent consideration Revenue Analysis (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | 83,026 | -9.7 | | Medical Aesthetic Device Products | 9,359 | 34,420 | -72.8 | | Consulting Services | 302 | 29 | 941.4 | | Total | 84,598 | 117,475 | -28.0 | Other Income and Gains Analysis (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Other Income | 809 | 421 | 92.2 | | Total Gains | 493 | 9,529 | -94.8 | | Total Other Income and Gains | 1,302 | 9,950 | -86.9 | - Total other income and gains significantly decreased, primarily due to higher fair value gains on contingent consideration of RMB 9,039 thousand in the prior period of 2024, with no such gains in the current period[15] 5. Loss Before Tax The Group's loss before tax expanded to RMB 8,284 thousand, primarily due to decreased revenue and changes in certain expense structures; while cost of inventories sold, intangible asset amortization, property, plant and equipment depreciation, right-of-use asset depreciation, employee benefit expenses, promotion and marketing expenses, and professional fees all decreased, R&D expenses increased Key Expense Items (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Supplies Consumed | 32,622 | 36,639 | -11.0 | | Cost of Inventories Sold | 2,955 | 10,311 | -71.3 | | Amortization of Intangible Assets | 1,709 | 3,036 | -43.8 | | Depreciation of Property, Plant and Equipment | 5,506 | 5,848 | -5.9 | | Depreciation of Right-of-Use Assets | 4,604 | 5,468 | -15.8 | | Employee Benefit Expenses (excluding directors' and chief executive's emoluments) | 30,671 | 33,649 | -8.8 | | Promotion and Marketing Expenses | 5,112 | 6,011 | -15.0 | | Professional Fees | 1,766 | 2,005 | -11.9 | | Impairment of Intangible Assets | – | 13,279 | -100.0 | | Fair Value Change of Contingent Consideration | – | (9,039) | -100.0 | 6. Income Tax The Group's income tax expense increased from RMB 740 thousand in 2024 to RMB 1,178 thousand in 2025; mainland China subsidiaries pay income tax at a statutory rate of 25%, with some small and micro enterprises enjoying a preferential rate of 5% - Mainland China subsidiaries are subject to a statutory income tax rate of 25%[17] - Certain small and micro enterprises (e.g., Ruian Ruili, Wuhu Ruili) enjoy a preferential tax rate of 5%[18] Income Tax Expense (Thousand RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax | (91) | 4,135 | | Deferred Tax | 1,269 | (3,395) | | Total Tax Expense for the Period | 1,178 | 740 | 7. Dividends For the period ended June 30, 2025, the Company neither paid nor declared any dividends - The Company neither paid nor declared dividends during the reporting period[20] 8. Loss Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the parent was RMB 1.36 cents, a significant increase from RMB 0.32 cents in the prior period, mainly due to expanded losses and an increased weighted average number of ordinary shares outstanding Loss Per Share Calculation (Thousand RMB) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | | Weighted Average Number of Ordinary Shares in Issue | 557,077,333 | 508,330,653 | | Basic and Diluted Loss Per Share (RMB Cents) | (1.36) | (0.32) | - Share options have an anti-dilutive effect on basic loss per share and are therefore disregarded in the calculation of diluted loss per share[22] 9. Property, Plant and Equipment For the six months ended June 30, 2025, the Group acquired assets of RMB 1,423 thousand and disposed of assets with a net book value of RMB 354 thousand, resulting in a net loss on disposal of RMB 86 thousand, with no impairment losses recognized in the period Changes in Property, Plant and Equipment (Thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of Asset Acquisitions | 1,423 | 5,277 | | Net Book Value of Assets Disposed | 354 | 109 | | Net Loss on Disposal | 86 | 109 | | Impairment Loss | – | – | 10. Right-of-Use Assets For the six months ended June 30, 2025, the Group acquired right-of-use assets of RMB 21,536 thousand, primarily involving the purchase of a property from Suzhou Maidi Jinggang Technology Co., Ltd. and the signing of a lease agreement - Right-of-use assets of RMB 21,536 thousand were acquired in the current period, with no such acquisitions in the prior period[24] - This primarily involved the purchase of a property from Suzhou Maidi for a consideration of RMB 21,437 thousand, which was approved by shareholders[24] - A six-month lease agreement, including a right to acquire, was signed with Suzhou Maidi on June 23, 2025, leading to the recognition of right-of-use assets and lease liabilities[24] 11. Trade Receivables As of June 30, 2025, total trade receivables were RMB 716 thousand, a decrease from RMB 1,538 thousand as of December 31, 2024, with changes in the aging structure Aging Analysis of Trade Receivables (Thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 485 | 1,537 | | 7 to 12 months | 231 | 1 | | Total | 716 | 1,538 | 12. Prepayments, Other Receivables and Other Assets As of June 30, 2025, total prepayments, other receivables, and other assets amounted to RMB 52,154 thousand, a decrease from RMB 64,141 thousand as of December 31, 2024, mainly due to reduced refundable earnest money and other receivables Composition of Prepayments, Other Receivables and Other Assets (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for Inventories and Supplies | 14,579 | 11,532 | | Deposits | 18,280 | 18,482 | | Refundable Earnest Money | 11,500 | 16,000 | | Prepaid Expenses | 1,085 | 1,369 | | Prepayments for Services | 533 | 446 | | Other Receivables | 6,238 | 16,410 | | Impairment Allowance | (61) | (98) | | Total | 52,154 | 64,141 | 13. Trade Payables As of June 30, 2025, total trade payables were RMB 7,703 thousand, largely consistent with RMB 7,779 thousand as of December 31, 2024, with minor changes in the aging structure Aging Analysis of Trade Payables (Thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 6,415 | 7,062 | | 91 to 180 days | 798 | 636 | | 181 to 365 days | 459 | 58 | | Over 365 days | 31 | 23 | | Total | 7,703 | 7,779 | 14. Other Payables and Accruals As of June 30, 2025, total other payables and accruals amounted to RMB 29,255 thousand, a decrease from RMB 39,472 thousand as of December 31, 2024, mainly due to reduced other payables and tax liabilities Composition of Other Payables and Accruals (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other Payables | 10,872 | 19,803 | | Accrued Salaries | 9,073 | 9,290 | | Advances Received | 5,197 | 4,357 | | Deferred Revenue | 3,500 | 3,500 | | Tax Liabilities (excluding income tax) | 613 | 2,522 | | Total | 29,255 | 39,472 | 15. Events After the Reporting Period Two significant events occurred after the reporting period: Hainan Beilifeier introduced investors, reducing the Company's equity from 100% to 30%, constituting a deemed disposal; Hangzhou Beilifeier ceased medical aesthetic services and terminated contractual arrangements, shifting its strategic focus to medical aesthetic device product sales - Hainan Beilifeier introduced two investors with a capital injection of RMB 5,005 thousand and underwent capital reduction, resulting in the Company's equity in Hainan Beilifeier decreasing from 100% to 30%[29] - Hangzhou Beilifeier terminated its medical aesthetic services business, cancelled its medical practice license, and dissolved contractual arrangements with Ruili Beauty Consulting and Mr. Fu Haishu, shifting its strategic focus to medical aesthetic device product sales[30] Management Discussion and Analysis Business Review As a leading medical aesthetic service provider in China's Yangtze River Delta, the Group's business spans medical aesthetic services, consulting, and device product sales and R&D; during the reporting period, revenue decreased by 28.0% year-on-year and losses expanded due to market slowdown and intensified competition, with active customer numbers decreasing by 23.7% but average spending per medical aesthetic service customer increasing by 18.3% - The Group's business spans the upstream, midstream, and downstream of the medical aesthetic industry, including aesthetic surgery, minimally invasive aesthetic, dermatological aesthetic services, management consulting, and device product sales and R&D[31] - During the reporting period, China's medical aesthetic market experienced slower growth, intense competition, and diversified consumer demand, leading to a 28.0% decrease in Group revenue to RMB 84.6 million and an expanded loss of RMB 9.5 million[31] Customer Data Comparison | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Active Medical Aesthetic Customers | 24,200 persons | 31,700 persons | -23.7 | | New Customers | 8,700 persons | 12,100 persons | -28.1 | | Repeat Customers | 15,500 persons | 19,600 persons | -20.9 | | Average Spending Per Medical Aesthetic Service Customer (RMB) | 3,100 | 2,621 | 18.3 | Development Plan and Strategic Layout To address market challenges, the Group is advancing multiple strategic initiatives, including increasing non-surgical project capacity, optimizing cost and personnel structure, diversifying sales channels, building an advanced medical aesthetic device R&D and manufacturing platform, and expanding brand influence and corporate scale - Increase service capacity for non-surgical projects, introduce the latest medical aesthetic technologies and equipment, and enhance minimally invasive and dermatological aesthetic service capabilities[33] - Control costs and optimize personnel structure by regularly reviewing expenses, rationally allocating human resources, and establishing training and performance evaluation systems[35] - Diversify sales channels by utilizing internet platforms, third-party platforms, partners, and industry associations for precise marketing and resource integration[36] - Establish an advanced medical aesthetic device product R&D and manufacturing platform, with Suzhou Ruiquan dedicated to developing and producing dermal injectable products, expected to commence production in 2028, and actively applying for Class III medical device registration licenses[37] - Expand brand influence and corporate scale by enhancing product and service quality, increasing brand exposure, and considering the acquisition of suitable medical aesthetic institutions or pharmaceutical and device operating companies at reasonable costs[38] Financial Review This section provides a detailed review of financial performance during the reporting period, including changes in revenue, cost of sales, gross profit, other income, and various expenses, concluding with the consolidated loss for the period Revenue Total revenue for the reporting period was RMB 84.6 million, a 28.0% year-on-year decrease; medical aesthetic services revenue declined by 9.7%, primarily due to a decrease in active customers offsetting an increase in average customer spending; medical aesthetic device product sales revenue significantly dropped by 72.8% due to intensified market competition and sales structure adjustments, while medical aesthetic management consulting services revenue grew substantially Revenue by Service Item (Thousand RMB) | Service Item | 2025 | % of Total Revenue | 2024 | % of Total Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | 88.6 | 83,026 | 70.7 | -9.7 | | Aesthetic Surgery Services | 2,741 | 3.2 | 2,586 | 2.2 | 6.0 | | Minimally Invasive Aesthetic Services | 38,404 | 45.4 | 40,134 | 34.2 | -4.3 | | Dermatological Aesthetic Services | 33,110 | 39.2 | 39,772 | 33.9 | -16.8 | | Others | 682 | 0.8 | 534 | 0.4 | 27.7 | | Medical Aesthetic Device Product Sales | 9,359 | 11.1 | 34,420 | 29.3 | -72.8 | | Medical Aesthetic Management Consulting Services | 302 | 0.3 | 29 | 0.0 | 941.4 | | Total | 84,598 | 100.0 | 117,475 | 100.0 | -28.0 | - Medical aesthetic device product sales revenue significantly decreased by 72.8%, primarily due to intensified market competition and sales structure adjustments[42] - Minimally invasive aesthetic services revenue decreased by 4.3%, dermatological aesthetic services revenue decreased by 16.8%, while aesthetic surgery services revenue increased by 6.0%[42] Cost of Sales Cost of sales for the reporting period was approximately RMB 55.5 million, a 19.6% year-on-year decrease, primarily due to reduced performance in medical aesthetic services and medical aesthetic device product sales Composition of Cost of Sales (Thousand RMB) | Item | 2025 | % Share | 2024 | % Share | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of Supplies Consumed | 32,622 | 58.8 | 36,639 | 53.1 | -11.0 | | Cost of Inventories Sold | 2,955 | 5.4 | 10,311 | 14.9 | -71.3 | | Staff Costs | 13,485 | 24.3 | 14,638 | 21.2 | -7.9 | | Others | 6,401 | 11.5 | 7,420 | 10.8 | -13.7 | | Total | 55,463 | 100.0 | 69,008 | 100.0 | -19.6 | Gross Profit Gross profit for the reporting period was approximately RMB 29.1 million, a 39.9% year-on-year decrease, with gross profit margin falling from 41.3% to 34.4%, primarily due to declining medical aesthetic device product sales and intensified market competition Gross Profit and Gross Profit Margin Analysis | Service Item | 2025 Gross Profit (Thousand RMB) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (Thousand RMB) | 2024 Gross Profit Margin (%) | Gross Profit Change (%) | Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 22,573 | 30.1 | 24,329 | 29.3 | -7.2 | 0.8 | | Aesthetic Surgery Services | (1,456) | (53.1) | (1,152) | (44.5) | 26.4 | -8.6 | | Minimally Invasive Aesthetic Services | 14,155 | 36.9 | 13,399 | 33.4 | 5.6 | 3.5 | | Dermatological Aesthetic Services | 11,708 | 35.4 | 14,382 | 36.2 | -18.6 | -0.8 | | Others | (1,834) | (268.9) | (2,300) | (430.7) | -20.3 | 161.8 | | Medical Aesthetic Device Product Sales | 6,404 | 68.4 | 24,109 | 70.0 | -73.4 | -1.6 | | Medical Aesthetic Management Consulting Services | 158 | 52.3 | 29 | 100.0 | 444.8 | -47.7 | | Total | 29,135 | 34.4 | 48,467 | 41.3 | -39.9 | -6.9 | - Gross profit from medical aesthetic device product sales significantly decreased by 73.4%, primarily due to the proliferation of injectable product categories and intensified market competition[48] - The overall gross profit margin for medical aesthetic services increased by 0.8 percentage points to 30.1%, while the gross profit margin for medical aesthetic device product sales decreased by 1.6 percentage points to 68.4%, mainly due to product mix adjustments[48] Other Income and Gains Other income and gains for the reporting period were approximately RMB 1.3 million, a significant decrease from RMB 10.0 million in the prior period, primarily due to reduced fair value gains on contingent consideration - Total other income and gains decreased by approximately RMB 8.7 million year-on-year, primarily due to reduced fair value gains on contingent consideration[49] Selling and Distribution Expenses Selling and distribution expenses for the reporting period were approximately RMB 20.1 million, a year-on-year decrease of RMB 3.6 million, mainly due to reduced promotion expenses from online platform adjustments and lower personnel and rent-related costs from Group personnel integration - Selling and distribution expenses decreased by 15.1%, primarily due to reduced promotion expenses from online platform adjustments and lower personnel and rent-related costs from Group personnel integration[50] Administrative Expenses Administrative expenses for the reporting period were approximately RMB 15.8 million, a year-on-year decrease of RMB 4.4 million, mainly due to reduced personnel expenses from Group personnel integration and lower intermediary team service costs - Administrative expenses decreased by 21.9%, primarily due to reduced personnel expenses from Group personnel integration and lower intermediary team service costs[51] Other Expenses Other expenses for the reporting period were approximately RMB 0.6 million, a significant decrease from RMB 14.7 million in the prior period, primarily due to reduced asset impairment losses - Other expenses significantly decreased by 96.3%, primarily due to reduced asset impairment losses[52] Finance Costs Finance costs for the reporting period were approximately RMB 1.4 million, a slight decrease from RMB 1.6 million in the prior period, primarily comprising interest on lease liabilities and bank and other borrowings - Finance costs decreased by 11.3% year-on-year, primarily comprising interest on lease liabilities and bank and other borrowings[53] Income Tax Expense Income tax expense for the reporting period was approximately RMB 1.2 million, an increase from RMB 0.7 million in the prior period - Income tax expense increased by 59.2% year-on-year to RMB 1.2 million[54] Total Comprehensive Loss for the Period and Loss Attributable to Owners of the Parent The Group recorded a loss of approximately RMB 9.5 million for the reporting period, with loss attributable to owners of the parent at approximately RMB 7.6 million, both significantly expanded compared to the prior period Total Loss (Thousand RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Group's Loss for the Period | (9,462) | (2,997) | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | Liquidity and Financial Resources and Capital Structure As of June 30, 2025, cash and bank balances were approximately RMB 35.9 million, with net current liabilities of approximately RMB 47.1 million; despite increased net current liabilities, the Board believes the Group has sufficient working capital Liquidity Position (Thousand RMB) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances and Time Deposits | 35,900 | 28,900 | | Net Current Liabilities | (47,100) | (33,200) | | Unutilized Bank Facilities | 7,000 | 13,000 | - The Board believes the Group currently possesses sufficient working capital for its operations, considering cash on hand, cash flows from operating activities, and available financing[56] Lease Liabilities As of June 30, 2025, the Group's lease liabilities were approximately RMB 47.3 million, an increase from December 31, 2024 Lease Liabilities (Thousand RMB) | Date | Amount | | :--- | :--- | | June 30, 2025 | 47,300 | | December 31, 2024 | 35,600 | Capital Commitments As of June 30, 2025, the Group had no contracted but unprovided capital commitments - The Group had no contracted but unprovided capital commitments at the end of the reporting period[58] Capital Expenditure During the reporting period, the Group's capital expenditure for acquiring equipment and fitting out leased properties was approximately RMB 1.4 million, a decrease from RMB 4.3 million in the prior period Capital Expenditure (Thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Equipment and Leasehold Improvements | 1,400 | 4,300 | Indebtedness As of June 30, 2025, the Group's outstanding interest-bearing bank borrowings were approximately RMB 20.0 million, all at fixed rates and repayable within one year; outstanding mortgage loans were approximately RMB 5.7 million, with most repayable within one year Indebtedness Position (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Outstanding Interest-Bearing Bank Borrowings | 20,000 | 13,000 | | Outstanding Mortgage Loans | 5,700 | 7,800 | - All bank borrowings are at fixed interest rates and are repayable within 1 year[60][61] - Of the mortgage loans, RMB 4.5 million is repayable within one year, and RMB 1.2 million is repayable within one to two years[62] Treasury Policy The Group adopts a prudent treasury policy, mitigating credit risk through continuous credit assessments and closely monitoring its liquidity position to manage liquidity risk - The Group mitigates credit risk through continuous credit assessments[63] - The Board closely monitors the liquidity position to ensure the liquidity structure of assets, liabilities, and commitments meets funding requirements[63] Contingent Liabilities and Guarantees As of June 30, 2025, the Group had no significant contingent liabilities and guarantees - The Group had no significant contingent liabilities and guarantees at the end of the reporting period[64] Pledged Assets As of June 30, 2025, the Group pledged deposits of RMB 1.5 million as collateral for lease arrangements - The Group pledged deposits of RMB 1.5 million as collateral for lease arrangements[65] Gearing Ratio As of June 30, 2025, the Group's total debt was approximately RMB 152.6 million, with a gearing ratio of approximately 172.8%, an increase from 161.7% as of December 31, 2024 Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt (Million RMB) | 152.6 | 154.4 | | Gearing Ratio (%) | 172.8 | 161.7 | Interest Rate Risk As all the Group's borrowings are at fixed interest rates, there is no significant interest rate risk - All the Group's borrowings are at fixed interest rates, posing no significant interest rate risk[67] Foreign Exchange Fluctuation Risk The Group faces foreign exchange fluctuation risk for HKD against RMB, but currently has no foreign currency hedging policy; management will closely monitor and take action when necessary - The Group faces foreign exchange fluctuation risk for HKD against RMB[68] - There is currently no foreign currency hedging policy, and management will closely monitor and take action when necessary[68] Future Plans for Material Investments or Capital Assets Other than disclosed matters, the Group had no plans for material investments or acquisitions of capital assets at the end of the reporting period; it may continue to focus on medical aesthetic device product sales and consider related investments in the future - The Group had no plans for material investments or acquisitions of capital assets at the end of the reporting period[69] - In the future, the Group may continue to focus on medical aesthetic device product sales and consider further investments in related businesses[69] Employees and Remuneration Policy As of June 30, 2025, the Group had 289 employees, with total staff costs of approximately RMB 31.7 million, representing 37.5% of total revenue; the Company offers competitive remuneration, medical education opportunities, and a professional work environment, along with a performance appraisal system and pension scheme Number of Employees | Function | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Management | 7 | 6 | | Doctors and Medical Staff | 115 | 121 | | Sales, Marketing, Customer Service and Other Business Personnel | 124 | 128 | | Finance and Administrative Personnel | 43 | 35 | | Total | 289 | 290 | Staff Costs (Million RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Staff Costs | 30.3 | 31.0 | | Share Option Expenses | 1.4 | 3.7 | | Total Staff Costs | 31.7 | 34.7 | | % of Total Revenue for the Reporting Period | 37.5 | 29.6 | - The Company offers competitive remuneration, medical education, and a professional environment, attracting and retaining talent through performance appraisals, year-end bonuses, and training[72] Use of Proceeds The Group's net proceeds from listing were approximately HKD 81.7 million, with HKD 8.4 million for organic development remaining unutilized; net proceeds from rights issue were approximately HKD 19.0 million, with HKD 7.6 million for medical aesthetic device product registration and filing remaining unutilized Use of Net Proceeds from Listing (Million HKD) | Purpose | Planned Use | Actual Use | Unutilized | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Expand Medical Aesthetic Institution Network | 58.0 | 49.6 | 8.4 | December 31, 2025 | | Acquire New Medical Aesthetic Service Equipment and Consumables | 9.0 | 9.0 | – | – | | Actively Promote Brand | 6.5 | 6.5 | – | – | | General Working Capital | 8.2 | 8.2 | – | – | | Total | 81.7 | 73.3 | 8.4 | | Use of Net Proceeds from Rights Issue (Million HKD) | Purpose | Planned Use | Actual Use | Unutilized | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Purchase Equipment and Raw Materials Required to Start Production Process | 9.5 | 9.5 | – | – | | Register and File Medical Aesthetic Device Products with NMPA | 7.6 | – | 7.6 | March 31, 2026 | | General Working Capital | 1.9 | 1.9 | – | – | | Total | 19.0 | 11.4 | 7.6 | | Outlook China's medical aesthetic industry is rapidly developing with an expanding market size and stricter government regulation, moving towards standardization, professionalization, personalization, and technological advancement; non-invasive treatments and personalized customization are key highlights, and new material approvals will offer richer choices; despite challenges and intense competition, the overall industry trend remains positive - China's medical aesthetic industry is rapidly developing with an expanding market size and increased government regulation, driving the industry towards standardization, professionalization, personalization, and technological advancement[78] - Non-invasive treatments and personalized customization have become two core highlights in the medical aesthetic field[78] - Advances in frontier technologies like biotechnology and nanotechnology have significantly enhanced the safety and efficacy of medical aesthetic materials, with more new materials expected to be approved for market in the future[78] - Despite industry challenges and competition, the overall development trend remains positive[78] Other Information Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities during the reporting period[80] Interim Dividend The Board resolved not to declare any interim dividend for the reporting period - The Board resolved not to declare an interim dividend[81] Directors' Securities Transactions The Company has adopted the Model Code set out in Appendix C3 of the Stock Exchange Listing Rules, and all Directors have confirmed their compliance with the Code during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers[82] - All Directors confirmed compliance with the Model Code during the reporting period[82] Corporate Governance Practices The Company adheres to sound corporate governance principles and has adopted the Corporate Governance Code provisions set out in Appendix C1 of the Listing Rules, complying with all applicable code provisions during the reporting period - The Company adheres to sound corporate governance principles, emphasizing transparency, accountability, and independence[83] - The Company has adopted and complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[83][84] Pre-emptive Rights There are no provisions for pre-emptive rights in the Company's articles of association or Cayman Islands law, which do not require new shares to be offered pro-rata to existing shareholders - There are no pre-emptive rights provisions in the Company's articles of association or Cayman Islands law[85] Audit Committee The Audit Committee comprises three independent non-executive directors, responsible for monitoring financial reporting, the audit process, internal controls, and compliance with laws and regulations; the Committee has reviewed and approved the Group's unaudited condensed consolidated financial information and interim report for the reporting period - The Audit Committee comprises three independent non-executive directors: Mr. Liu Teng (Chairman), Mr. Cao Dequan, and Ms. Yang Xiaofen[86] - The Audit Committee is primarily responsible for monitoring financial reporting, the audit process, internal controls, and compliance with laws and regulations[87] - The Audit Committee has reviewed and approved the Group's unaudited condensed consolidated financial information and interim report for the reporting period, with no disagreements on accounting treatments[87] Material Events During the Reporting Period On March 7, 2025, Suzhou Ruiquan (an indirect non-wholly owned subsidiary of the Company) entered into an agreement with Suzhou Maidi to acquire a property with a gross floor area of approximately 4,660.22 square meters for RMB 21,437,012, which was approved by shareholders - Suzhou Ruiquan signed an agreement on March 7, 2025, to acquire a property in Suzhou with a gross floor area of approximately 4,660.22 square meters for RMB 21,437,012[88] - The property acquisition agreement was approved by the Company's shareholders at the 2025 Annual General Meeting[88] Events After the Reporting Period Two significant events occurred after the reporting period: Hainan Beilifeier introduced investors, reducing the Company's equity from 100% to 30%, constituting a deemed disposal; Hangzhou Beilifeier ceased medical aesthetic services and terminated contractual arrangements, shifting its strategic focus to medical aesthetic device product sales - On July 4, 2025, Hainan Beilifeier introduced investors with a capital injection of RMB 5,005 thousand and underwent capital reduction, resulting in the Company's interest in Hainan Beilifeier decreasing from 100.00% to 30.00%, constituting a deemed disposal[89] - On August 15, 2025, Hangzhou Beilifeier terminated its medical aesthetic services business, cancelled its medical practice license, and shifted its strategic focus to medical aesthetic device product sales, dissolving contractual arrangements with Ruili Beauty Consulting and Mr. Fu Haishu[90] Publication of Interim Results Announcement and Interim Report This announcement has been published on the Company's and Stock Exchange's websites; the interim report, containing all information required by the Listing Rules, will be dispatched to shareholders in due course and will be available on the same websites - The interim results announcement has been published on the Company's website (http://www.raily.com) and the Stock Exchange's website (https://www.hkex.com.hk)[92](index=92&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders in due course and made available on the same websites[92] Board of Directors As of the date of this announcement, the Board of Directors includes Executive Directors Mr. Fu Haishu, Mr. Song Jianliang, and Mr. Wang Ying, as well as Independent Non-executive Directors Mr. Cao Dequan, Ms. Yang Xiaofen, and Mr. Liu Teng - The Board of Directors comprises three Executive Directors (Mr. Fu Haishu, Mr. Song Jianliang, Mr. Wang Ying) and three Independent Non-executive Directors (Mr. Cao Dequan, Ms. Yang Xiaofen, Mr. Liu Teng)[94]