Financial Performance - The revenue for the six months ended June 30, 2022, was approximately RMB 944 million, an increase of 3.2% compared to RMB 915 million for the same period in 2021[7]. - The profit for the reporting period was approximately RMB 1 million, a turnaround from a loss of RMB 54 million in the same period of 2021[7]. - Revenue from medical beauty services was approximately RMB 878 million, a decrease of 1.6% from RMB 892 million in the previous year[20]. - Revenue from minimally invasive beauty services increased by approximately 24.4% to RMB 430 million, compared to RMB 345 million in the prior year[21]. - Revenue from cosmetic surgery services decreased by approximately 31.3% to RMB 62 million, down from RMB 91 million, primarily due to changes in consumer behavior influenced by the pandemic[21]. - The gross profit for the reporting period was approximately RMB 444 million, an increase of about 19.6% compared to RMB 371 million for the six months ended June 30, 2021[24]. - The gross profit margin was approximately 47.0%, up by about 6.5 percentage points from approximately 40.5% for the six months ended June 30, 2021, primarily due to high gross margins of 79.9% from newly launched medical beauty equipment[24]. - The total gross profit from medical beauty services was approximately RMB 392 million, an increase of about 9.8% from RMB 357 million for the six months ended June 30, 2021[26]. - The gross profit from minimally invasive beauty services was approximately RMB 192 million, a significant increase of about 32.2% from RMB 145 million for the six months ended June 30, 2021[26]. - Other income and gains for the reporting period were approximately RMB 24 million, an increase of about 50.0% from RMB 16 million for the six months ended June 30, 2021[28]. - The total administrative expenses for the reporting period were approximately RMB 186 million, an increase of about RMB 20 million compared to RMB 166 million for the six months ended June 30, 2021[28]. - The financial costs for the reporting period were approximately RMB 16 million, compared to RMB 11 million for the six months ended June 30, 2021[28]. - The net profit attributable to the owners of the parent company for the reporting period was approximately RMB 1 million, compared to a loss of RMB 54 million for the six months ended June 30, 2021[28]. Operational Developments - The company expanded its non-surgical medical beauty service capabilities by enhancing facilities and introducing new equipment over the past 12-18 months[8]. - The total operational area of medical beauty institutions increased from approximately 8,100 square meters before renovation to 14,100 square meters after renovation[9]. - The number of minimally invasive service rooms increased from 13 to 35 following the renovations of medical beauty institutions[9]. - The company plans to accelerate the development of various new medical beauty service patents to become the leading medical service technology team in the Yangtze River Delta region[11]. - The company is focusing on brand and product innovation driven by medical beauty technology and quality[8]. - The company has implemented strict control over sales, promotion, and marketing expenses, contributing to the profit turnaround[7]. - The company plans to establish a new medical beauty materials R&D and manufacturing platform in Suzhou, collaborating with well-known domestic universities[15]. - A new skincare product sales platform, "Ruiliang Skincare Collection Store," is set to launch, enhancing product sales channels and customer traffic[16]. - The company has initiated the construction of a new medical institution in Hainan, expecting to obtain relevant business licenses within the next 12 months[5]. Market Trends - The Chinese medical beauty market is projected to maintain double-digit growth, with a growth rate higher than other global markets[44]. - The consumer age group for medical beauty services in China primarily ranges from 21 to 40 years old, indicating a broad market base[44]. - The shift in consumer preference has moved from surgical services to non-surgical services like injection aesthetics and skin anti-aging, which are less invasive and have higher repurchase rates[45]. - The company is increasing investment in non-surgical medical beauty services to further develop international medical beauty brands[45]. - The overall external environment for the medical beauty industry remains stable, with increasing consumer acceptance and penetration rates[44]. - Regulatory measures in the medical beauty industry are being strengthened, promoting high-quality development and the elimination of non-compliant operators[44]. Shareholder Information - As of June 30, 2022, Mr. Fu Haishu holds 1,109,283,463 shares, representing 53.10% of the company's equity[48]. - The total number of shares issued by the company as of June 30, 2022, is 2,089,040,000[49]. - Major shareholders include Ruide Consulting Management Co., Ltd., holding 1,109,283,463 shares (53.10%), and Meitianxia Responsibility (Hong Kong) Co., Ltd., holding 129,128,745 shares (6.18%)[56]. - The company emphasizes good corporate governance principles to enhance shareholder value and ensure transparency and accountability[47]. - The company did not declare any interim dividends during the reporting period, consistent with the previous period where no dividends were declared[63]. - The board proposed amendments to the company's articles of association to comply with core shareholder protection standards, which were approved at the annual general meeting on June 10, 2022[65]. Financial Position - Cash and bank balances as of June 30, 2022, were approximately RMB 924 million, down from RMB 1,217 million as of December 31, 2021[28]. - As of June 30, 2022, the total liabilities of the group were approximately RMB 134.2 million, resulting in a debt-to-equity ratio of approximately 72.8%, down from 89.0% as of December 31, 2021[32]. - The total employee cost for the period was approximately RMB 30.2 million, accounting for about 32.0% of total revenue, a decrease from 40.8% for the same period in 2021[40]. - The group had a total of 382 employees as of June 30, 2022, a decrease from 395 employees as of December 31, 2021[36]. - The group has no significant contingent liabilities or guarantees as of June 30, 2022, consistent with the previous year[30]. - The group has no major investments or acquisitions planned as of June 30, 2022[35]. - The group plans to utilize approximately 71.0% of the net proceeds from its listing for expanding its medical beauty network, with a total of HKD 58.0 million allocated for this purpose[43]. - The group has allocated HKD 9.0 million for purchasing new medical beauty service equipment and treatment consumables, with all funds already utilized[43]. - The group has no significant interest rate risk as of the reporting date[33]. - The group is monitoring foreign exchange risks closely, particularly due to its holdings in HKD-denominated financial assets[34]. - The group has no major rate of exchange hedging policies in place but is considering prudent measures to mitigate related risks[34]. Cash Flow and Investments - The company reported a foreign exchange gain of RMB 1,522 thousand, contrasting with a loss of RMB 1,053 thousand in the previous year, indicating improved currency management[88]. - The company incurred RMB 8,557 thousand in capital expenditures for property, plant, and equipment, up from RMB 3,036 thousand in the previous year, representing an increase of approximately 182.5%[88]. - The net cash flow from financing activities was a net outflow of RMB 22,240 thousand, compared to a net inflow of RMB 7,926 thousand in the same period of 2021, indicating a significant change in financing strategy[88]. - The company received RMB 2,100 thousand in bank loans during the period, a decrease of 79% compared to RMB 10,000 thousand in the previous year[88]. - The company repaid RMB 20,100 thousand in bank loans, which is double the amount repaid in the same period last year (RMB 10,000 thousand)[88]. - The company reported a decrease in inventory and supplies from RMB 13,266,000 to RMB 9,024,000, indicating better inventory management[80]. - The company experienced a cash outflow from operating activities, with a net cash flow of RMB (393,000) compared to RMB (15,815,000) in the previous year, showing a significant reduction in cash burn[86]. - For the six months ended June 30, 2022, net cash flow from investing activities was RMB 29,522 thousand, a significant improvement from a net outflow of RMB 30,823 thousand in the same period of 2021[88]. Compliance and Governance - The company confirmed compliance with the standards set out in the code of conduct for securities transactions by directors during the reporting period[1]. - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[64]. - The accounting policies applied in preparing the interim financial information are consistent with those used in the previous annual financial statements, ensuring comparability[91]. - The audit committee reviewed and approved the interim financial results without any objections[67]. - There were no significant events occurring after the reporting period[136].
瑞丽医美(02135) - 2022 - 中期财报