Financial Performance - The company's revenue for the reporting period was approximately RMB 97.6 million, a 3.4% increase from RMB 94.4 million in the same period of 2022[6]. - The company reported a loss of approximately RMB 4.1 million for the period, compared to a profit of RMB 0.1 million in the same period of 2022, with a loss attributable to shareholders of approximately RMB 2.3 million[6]. - Total revenue for the six months ended June 30, 2023, was approximately RMB 976 million, an increase of 3.4% compared to RMB 944 million for the same period in 2022[20]. - Revenue from medical beauty services was approximately RMB 851 million, a decrease of 3.0% from RMB 878 million in the same period last year, primarily due to a decline in cosmetic surgery services[20]. - Revenue from medical beauty equipment sales surged by approximately 88.6%, reaching RMB 124 million compared to RMB 66 million in the previous year[20]. - Gross profit for the period was approximately RMB 390 million, down 12.0% from RMB 444 million for the same period in 2022, with a gross margin of 40.0%, a decrease of 7.0 percentage points[24]. - The gross profit margin for medical beauty services was approximately 34.2%, down from 44.6% in the previous year, reflecting increased fixed costs and higher material costs for premium projects[26]. - Sales costs increased by approximately 17.1% to RMB 586 million from RMB 500 million in the same period last year, driven by higher material costs and increased rental and renovation expenses[22]. - Other income and gains decreased to approximately RMB 12 million from RMB 24 million in the previous year[28]. - Selling and distribution expenses decreased to approximately RMB 228 million from RMB 243 million in the same period last year[29]. - Administrative expenses remained stable at approximately RMB 185 million compared to RMB 186 million in the previous year[30]. - The decline in cosmetic surgery revenue was attributed to a shift in consumer preferences towards less invasive and safer procedures[21]. - The group recorded a total loss of approximately RMB 4.1 million for the reporting period, compared to a profit of RMB 0.1 million for the six months ended June 30, 2022[33]. Market and Operational Strategy - The company plans to expand the scale of RAILY flagship stores and enhance non-surgical medical beauty services, particularly in minimally invasive and skin beauty services[7]. - The recovery of the medical beauty market is gradual, with consumer sentiment and foot traffic slowly improving post-pandemic[7]. - The company aims to introduce advanced medical technologies and update equipment and products to meet consumer demand for new offerings[7]. - The company is implementing a digital management model and utilizing big data to develop marketing strategies based on consumer behavior analysis[11]. - The company aims to enhance its marketing efforts by establishing a Multi-Channel Network (MCN) to convert live streaming traffic into new customer acquisition channels, thereby increasing brand value and revenue[14]. - The company is expanding its market share in the medical beauty device sector by leveraging the advantages of expanded polytetrafluoroethylene (e-PTFE) materials, with a focus on increasing sales through improved distribution networks[15]. - The company plans to establish a medical technology exchange platform in collaboration with the Hainan Boao Lecheng International Medical Tourism Pilot Zone Management Bureau, focusing on medical beauty services, medical device sales, and educational training[12]. - The company aims to transform its operational direction from patient attraction to gathering renowned doctors, thereby increasing its customer base in the Hainan Boao Lecheng area[12]. - The market for non-surgical medical beauty projects is expected to grow significantly, driven by increased consumer awareness and acceptance[57]. - The company aims to enhance its minimally invasive beauty services and skin beauty services, focusing on customer retention and experience[57]. Investment and Financial Commitments - The company is investing approximately RMB 150 million in Suzhou Yonglan Biomedical Technology Co., Ltd. over the next 36 months to build a production facility for skin injection products, covering an area of about 4,660 square meters[17]. - The investment plan for Suzhou Yonglan includes RMB 70 million for product registration fees, RMB 25 million for facility purchase, and RMB 25 million for equipment procurement and construction[17]. - The company plans to complete the infrastructure construction of the Suzhou Yonglan factory by the second half of the year and aims to produce collagen products that address various skin issues[17]. - The company intends to apply for its first Class III medical device registration certificate next year, collaborating with renowned domestic universities for research and development[17]. - The group has signed but not yet provided for commitments of approximately RMB 5.5 million as of June 30, 2023, primarily for lease property renovations[36]. - The group’s capital expenditure for the reporting period was approximately RMB 8.2 million, compared to RMB 9.3 million for the six months ended June 30, 2022[37]. - The group has capital commitments for leased property renovations amounting to RMB 5,512,000 as of June 30, 2023, compared to RMB 1,122,000 as of December 31, 2022, indicating a significant increase[125]. Shareholder and Governance Information - The company’s major shareholder, Mr. Fu Haishu, holds approximately 53.10% of the company's shares[60]. - The company adheres to good corporate governance principles to enhance shareholder value and ensure transparency[59]. - As of June 30, 2023, the major shareholder, Ruide Consulting Management Limited, holds 1,109,283,463 shares, representing 53.10% of the company's equity[62]. - Jin Chunmiao, as a spouse, also holds 1,109,283,463 shares, equating to 53.10% of the company's equity[62]. - Meitianxia Responsibility (Hong Kong) Limited owns 129,128,745 shares, which is 6.18% of the company's equity[62]. - China Eastern Asset Management (International) Holdings Limited holds 112,244,454 shares, representing 5.37% of the company's equity[62]. - The total number of shares issued by the company as of June 30, 2023, is 2,089,040,000 shares[67]. - The beneficial ownership structure indicates that Shanghai Donghua Health Management Partnership (Limited Partnership) holds 112,244,454 shares, with a significant portion owned by various controlled entities[67]. - The company has adopted the standard code of conduct for securities trading as per the listing rules[65]. - All directors confirmed compliance with the standard code during the reporting period[65]. - There were no arrangements made for directors or their immediate family members to acquire shares or bonds of the company during the reporting period[66]. - The company did not declare any interim dividends during the reporting period, consistent with the previous period[70]. Cash Flow and Financial Position - As of June 30, 2023, cash and bank balances were approximately RMB 57.6 million, down from RMB 78.8 million as of December 31, 2022, primarily due to a payment of RMB 20.0 million for investment intentions[34]. - The group’s total liabilities were approximately RMB 141.5 million as of June 30, 2023, resulting in a debt-to-equity ratio of approximately 86.1%, up from 82.5% as of December 31, 2022[44]. - The company reported a net cash outflow from investing activities of RMB 30,022 thousand, a significant change from a cash inflow of RMB 29,522 thousand in the same period of 2022[91]. - The company incurred a net cash outflow from investing activities of RMB 30,022 thousand, a significant change from a cash inflow of RMB 29,522 thousand in the same period of 2022[91]. - The company reported a loss from investments of RMB 209 thousand, an improvement from a loss of RMB 375 thousand in the previous year[90]. - The company reported a pre-tax loss of RMB 2,796 thousand for the first half of 2023, compared to a profit of RMB 1,958 thousand in the same period of 2022[90]. - The company reported a loss before tax of RMB 2,796,000 for the first half of 2023, compared to a profit before tax of RMB 1,958,000 in the same period of 2022[99]. - The company’s equity attributable to owners of the parent was RMB 166,392,000, slightly up from RMB 166,080,000 at the end of 2022[86]. - The total assets as of June 30, 2023, were RMB 305,864,000, a decrease from RMB 305,968,000 as of December 31, 2022[85]. - Current liabilities increased to RMB 83,619,000 from RMB 76,413,000 at the end of 2022, reflecting a rise of 9.1%[85]. - Cash and cash equivalents decreased by RMB 21,652 thousand, with the ending balance at RMB 22,906 thousand compared to RMB 76,926 thousand at the end of the previous period[91]. - The group recorded a loss from associates of RMB 81,000, an improvement from a loss of RMB 178,000 in the previous year[81]. Employee and Management Information - The total employee cost for the reporting period was approximately RMB 30.2 million, accounting for about 30.9% of total revenue, compared to 32.0% for the six months ended June 30, 2022[51]. - The group incurred employee benefits expenses of RMB 25,814,000 in the first half of 2023, down from RMB 27,182,000 in the same period of 2022, a decrease of approximately 5.0%[109]. - The total remuneration paid to key management personnel amounted to RMB 1,049,000, slightly up from RMB 1,041,000 in the same period of 2022, reflecting a year-on-year increase of approximately 0.8%[128]. - The salary, allowances, and benefits for key management personnel increased to RMB 984,000 in the first half of 2023 from RMB 860,000 in the same period of 2022, representing a growth of about 14.4%[128]. - The pension plan contributions for key management personnel decreased significantly to RMB 19,000 in the first half of 2023 from RMB 87,000 in the same period of 2022, a decline of approximately 78.2%[128]. Compliance and Governance - The audit committee has reviewed and approved the unaudited interim financial information for the reporting period[74]. - The company has established an audit committee responsible for monitoring financial reporting processes and compliance with laws and regulations[74]. - The company has not made any changes to the board of directors' information since the publication of the 2022 annual report[73]. - The company has no provisions in its articles of association or Cayman Islands law requiring it to offer new shares to existing shareholders on a pro-rata basis[71]. - The weighted average number of shares issued during the reporting period was 0.0820, based on the potential shares that could be issued from the share option scheme[68]. - The company had a total of 205,400,000 share options, with 48,380,462 options exercised during the reporting period[68]. - The group has no financial assets measured at fair value as of December 31, 2022, indicating a shift in investment strategy or asset management approach[133]. - The fair value measurement of financial liabilities did not experience any transfers between levels one and two, nor any transfers into or out of level three during the reporting period[134]. - The group’s financial department, led by the financial manager, is responsible for determining the policies and procedures for fair value measurement of financial instruments, ensuring compliance and accuracy in reporting[131].
瑞丽医美(02135) - 2023 - 中期财报