Q3 2022 Aesthetic Medical International Holdings Group Ltd Earnings Call
Speaker 1: 1973
Good morning, ladies and gentlemen, thank you for standing by and welcome to aesthetic Medical International third quarter 2022 earnings conference call.
Speaker 2: Good morning, ladies and gentlemen. Thank you for standing by and welcome to Aesthetic Medical International third quarter 2022 earnings conference call. During today's presentation, all parties will be in listen-only mode. As a reminder, today's conference call is being recorded. On the call today from Aesthetic Medical International are Dr. Pangu Gao, Chairman and Chief Executive Officer, Mr. Toby Wu, Chief Financial Officer, and Mr. Derek Shi, Investor Relations Associate Director.
During todays presentation, all parties will be in listen only mode. As a reminder, today's conference call is being recorded.
On the call today from aesthetic medical International our Doctor Pangu, Joe Chairman and Chief Executive Officer, Mr. Toby Woo, Chief Financial Officer, and Mr. Derek She Investor Relations Associate director.
Doctor Joe will review the business operations and the company's company highlights followed by Mr. Toby will who will introduce the company's financial performance.
Speaker 2: Dr. Joe will review the business operations and the company highlights, followed by Mr. Toby Wu who will introduce the company's financial performance.
They will all be available to answer your questions. During the Q&A session that follows before we get started I would like to remind you that some of the information discussed will include forward looking statements regarding future events and our future financial performance.
Speaker 2: They will all be available to answer your questions during the Q&A session that follows. Before we get started, I would like to remind you that some of the information discussed will include forward-looking statements regarding future events and our future financial performance.
These include statements about our future expectations financial projections, and our plans and prospects actual results may differ materially from those set forth in such statements for a discussion of these risks and uncertainties you should review the company's filings with the SEC, which includes today's press release you should not.
Speaker 2: These include statements about our future expectations, financial projections, and our plans and prospects. Actual results may differ materially from those set forth in such statements. For discussion of these risks and uncertainties, you should review the companyís filings with the SEC, which includes todayís press release. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today and we undertake no obligation to update them except as required by applicable law.
We rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of today and we undertake no obligation to update them, except as required by applicable law.
Our discussion today will include non I F. R S financial measures, including EBITDA adjusted loss and adjusted EBITDA, you should not consider EBITA adjusted EBITDA or adjusted loss as a substitute for or superior to net income are prepared in accordance with I F. R. S.
Speaker 2: Our discussion today will include non-IFRS financial measures, including EBITDA, adjusted loss, and adjusted EBITDA. You should not consider EBITDA, adjusted EBITDA, or adjusted loss as a substitute for or superior to net income prepared in accordance with IFRS. Furthermore, because of non-IFRS financial measures, we will continue to discuss the
Furthermore, because of not I F. R. S measures or not too are not prepared in accordance with I F or S. They're susceptible to varying calculations. It may not be comparable to other similarly titled measures presented by other companies.
Speaker 2: Measures are not prepared in accordance with IFRS. They are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies.
You are encouraged to review the company's financial information and its entirety and not rely on a single financial measure at this time I would like to turn the call over to Dr. Tang Guccio, Chairman and CEO of aesthetic Medical International is your opening remarks will be delivered in English by Investor Relations Associate director Mr. Derek.
Speaker 2: You are encouraged to review the company's financial information in its entirety and not rely on a single financial measure. At this time, I would like to turn the call over to Dr. Penggu Zhou, Chairman and CEO of Aesthetic Medical International. His opening remarks will be delivered in English by Investor Relations Associate Director, Mr. Derek Shi. Dr. Zhou, please go ahead.
<unk> Doctor Joe. Please go ahead.
Yeah, I'll, just highlight young you're going to sit on Saddam So police and fire.
Speaker 3: Other tell, can you're going to the down? Down to home we fire.
Right Yeah, Yeah have you guys seen him again Luckily.
Speaker 3: aishi pjah chanjakkim Tian and tiam Ali R Ian T an, geto fon So Ion showo, simbang hui and yeeuchin pang K ying chak, WA Chan Chin Bo rman, W Chan fg for shangarin go chak.
Yeah on yen, if R&D, though.
So yeah, you can buy all of that.
Yes indeed.
Well the Sun Yeah, you didn't go to ease out.
What are you in college or not.
Uh huh.
Yeah.
Wow.
Speaker 3: What are us ING child? You find F home earlier, So you neither one F from G with each you or SHA Act. Their change industs thir J go in their sto on a F going to change one would So go to that the time GI when I should do phoneun for the usure.
No your EG Oh, Yeah in fact didn't get genes. That's just good D G.
Yeah, Blah blah blah blah.
King why also.
Well, let's do that.
Yeah, I just saw that a lot.
Most of the units out.
And doesn't.
Isn't that E Sun God, Igo, Ugo, yeah, but hey.
Oh, sorry, yeah, yeah, yeah.
Speaker 3: If you like this video, please subscribe, like, share, and subscribe to our channel.
Hey, easy and simple as that.
Oh for somebody input.
Speaker 3: Thank you for your attention.
Although still not so little but wont be we yeah.
Yeah.
Thank you everyone for joining the call today, the third quarter of 2022 with few clouded by the uncertainties arising from the resurgence of COVID-19 pandemic to mine gate the.
Speaker 4: Thank you everyone for joining the call today. The third quarter of 2022 was still clouded by the uncertainties arising from the resurgence of COVID-19 pandemic. To mitigate the impact on people's daily living and business operations, the country has adjusted its strategy of prevention and control measures to the highest level of safety and safety.
On People's Daily, leaving and business operation.
<unk> has adjusted its strategy of prevention and control measures.
Our board called reach of our region to a more precise implementation.
It's a big area, we've chosen lockdown period, yet syndrome was based on the lock down and three of the groups treatment centers was forced to close temporarily in September which affect the alba customer traffic.
Speaker 4: from a broad coverage of a region to a more precise implementation of specific areas with shortened lockdown period. Yet Shenzhen was placed under lockdown and three of the group's treatment centers were forced to close temporarily in September , which affected our customer traffic. As a result, revenue of this quarter slightly decreased by 0.3% year over year.
As a result revenue, albeit QUADRA is slightly decreased by one 3% year over year.
Hi, sung G a little late here.
Speaker 3: The sani B ATE GI oneg Italian Y sh in shall they of a J, J the year. We got lowly gotj shallary dying sou vanyet, for we in CAS E show about in tu jannot about the year.
G intelligent young Chung <unk> yeah.
Yeah, Hi, Jim Yeah, we even got little each Oh geez theyre.
Hi, Yang Charles Baum, yet well, making sure yeah, Yeah, Yeah sure that's a lot.
In Cogs.
Yeah well.
E E.
Yeah, that's you bundle all the.
You see all of that young people love that movie also done.
Speaker 3: You E and in into Li thir you, but the qu to ch ong you she Jun through the move your shoulder. What about go about Y mayaz young one shall with your Chang, with you the ANE that. So I will also like a CLO to be thankgi the child sure.
Well, it's all about well what ball yeah, amaze, yes young celebrate.
Yeah, she's doing that Yankee you bet.
I was so good I got most of its arguable that shelves are that way.
Oh, yeah, yeah, not ours achievement Bob.
During the period the company has strived to enhance operating efficiency.
Speaker 3: You are the LED 47 rebuildingHuh?!
Speaker 4: During the period, the company has strived to enhance its operating efficiency by adjusting marketing strategies and streamlining business operations. In terms of marketing, we have started collaborating with key opinion leaders and tapped into live streaming e-commerce. This was successful and effective in expanding target audience to younger generations.
Adjusting marketing strategies and streamlining business operation in terms of marketing, we have strongly collaborating with key opinion leaders and tap into live streaming e-commerce.
Was successful and effective in expanding target audience to younger generation, who had strong demand in south care and aesthetic related consumption.
We've collected by a 27, 8% year on year decrease in selling expenses during the third quadrant.
Speaker 4: who had strong demand in self-care and aesthetic-related consumption. This is reflected by a 27.8% year-on-year decrease in selling expenses during the third quarter.
But you used them, yet well maintained with chunghwa not that Oh, we do have that E. C. G block H.
Speaker 3: Are you? You come. Yet woman Ji BU Chang Kala, agible three to the jeeing JHU, to away young gom PI fix she and the ALJ. What photo you woman H geni BU bandam, the ALJ, Please seem. The idom myo try CHO are showing you the chear about soyal going will woman girl who?
You can see and you're all doing well so as long as I'm, saying, well my Genie Blue button among the outage at <unk>.
In the email me or should they choose to shop.
Sure Bob So oil will move.
Hmm Eagle either without pool, we love the team.
Angel would you know well the genius of urology at National Mi.
Speaker 3: Please like and subscribe to our channel. Please like and subscribe to our channel.
Me neither.
Well it definitely yet.
Even you'll work he and the team will use yet.
Speaker 3: Need H J an in people, only young, would he and P one some J IA woman may is show dollar usan womaning need Uncle P will have unquit that sj o woman, my CAS she che ch jumpun and EO.
Why don't you think sometime yeah, Jim's yet well me you just sold all of ours are all me Me me good luck.
Oh by the way that.
San Diego late well my it hasn't been easy.
Yeah, yet syndrome, you down there.
Hello, excuse me as long as you will note that.
Our goals and you use that Jinan Yang lunger well Mackenzie.
Speaker 3: J in plants. You will gued up that goinges egy, the gion and B 1: one sing that a course telly curb would be going how the good yet with just from the year will quu up but time feet purches isn't in bina years to the J.
Plus generally come with Eagle Ford.
Yeah, well it just seemed well yeah, well close at that time.
Yes.
Geez.
In terms of operation we have further strengthened our training program, which was launched in the second quarter.
Speaker 4: In terms of operation, we have further strengthened our training program, which was launched in the second quarter. Besides offering them with the latest standardized operating procedure, we have further equipped them with the latest aesthetic medical market trends and product offerings, ensuring the best-in-class services are provided to our customers.
<unk> offering them with the latest standardized operating procedures, we have further equip them with the latest.
As a medical market trends and product offerings, ensuring the best in class services provided to our customers. We have also engaged me.
Mystery shoppers in this quarter to better evaluate the service quality of which they will discretely visits each treatment centers and provide an assessment on user experience for managements review.
Speaker 4: We have also engaged Mi3 shoppers in this quarter to better evaluate the service quality, of which they will discreetly visit each treatment center and provide assessment on user experience for management review. As of today, 25 Mi3 shoppers' assessment and feedback have been received. These are all tool-based check-ins paired with Mi3
Saturday Tony's fine mystery shoppers assessment and feedback has been received.
In the time being we have also begun the renovation of the first rule of one of our flagship hospital syndrome, All night aesthetics Medical hospital, which is expected to be completed idea is here. We believe that these measures will provide customer with the.
Speaker 4: We have also begun the renovation of the first floor of one of our flagship hospitals, Shenzhen Pongai Aesthetics Medical Hospital, which is expected to be completed by the end of this year. We believe that these measures will provide customers with a better service experience, laying a strong foundation to support our business, scalability, and sustainable growth in the long run.
That's a service experience laying a strong foundation to support our business stability and sustainable growth in the long run.
Oh, no actually suddenly he's not drawn yet.
Speaker 3: hom mutually. Chun got chunang Y for Li seen by that singy my food. That people' changun woman E mention that take fam and changing things. Chips in go in poorly. P ggot the pangej olike woman poly La Chun shopping. iram a nun cham I shesee.
I bet Ginnie Mae pool that things aren't well my.
And send that.
Yeah, Jason.
You can go in poorly.
That sounds good all right.
Well my poorly last time that's happened.
Are you done yet but.
She would see you.
Well you get E. G. Johnson <unk> Johnson, you end up with digital.
Yeah, sure that little better than it was.
Speaker 3: irama when in U G Chan uny jpun U and the two Jo P IA quarter lber near also HA W CA some by one and the Chang Europe .
Yeah, but some by winding that changing.
The company is committed to becoming a professional and reliable non surgical aesthetic medical service providers, we remain prudent should conduct regular assessment on treatment centers and divest non performing centers here in this quarter, we divested the Changsha aesthetic Mehdi.
Speaker 4: The company is committed to becoming a professional and reliable non-surgical aesthetic medical service provider. We remain prudent to conduct regular assessment on treatment centers and divest non-performing centers. During this quarter, we divest the Changsha Pongai Aesthetic Medical Hospital and Nangchang Pongai Xiuqi Aesthetic Medical Hospital.
<unk> hospital, and downtown Nashville, which he aesthetic medical hospital and expects to receive cash inflows of 4.6 million RMB and 3.0 million RMB strong signs off on light and non sample line respectively.
Speaker 4: and expects to receive cash inflows of 4.6 million RMB and 3.0 million RMB from Changshan and Nanchang Bulat respectively.
Well my.
<unk> son, so yeah, yeah, great. Thank.
And then kind of what Linda I can't give them meet here in Georgia.
Speaker 3: prommission. Think Tong huwa Shan showu chlier Ke Chun Yee boon bun Jan on the grcentven me G a him by jud in lewee Jun. Wee don't mail me.
Hey, Joel pedal Melanie.
We believe with the aforementioned strategies, we can further enhance our core competitiveness east improved.
Speaker 4: We believe with the aforementioned strategies, we can further enhance our core competencies, improve brand equity and eventually drive profitability.
Improved brand equity and eventually drive profitability.
Yeah.
Alright, Thanks, guys, Yeah, Yeah, that's one tool such as it seems that what about the jogger well Linda so it is lumpy.
Speaker 3: Sci you can say one do her to say that: whatk are there? What Jo woman show. Since I would one forby and I here, your earli onion is done. You do that, I are you ch. What says?
Fluffy and I'd say, it's early on yet is unusual that hydro <unk> and what is it.
Thank you again for all your support and attention and I would like now turn the call to our CFO Toby you Sue.
Speaker 4: Thank you again for all your support and attention. And I would like now to turn the call to our CFO , Tobi Wu, to introduce the financials and operations for the third quarter of 2022. Tobi, please go ahead.
We introduce the financials and operations for the third quarter of 2022 Tobey. Please go ahead.
Okay. Thank you that's all I have thank you Sarah.
Speaker 3: Okay. Thank you, Dr. Zhou, and thank you, Director. Hi, everyone. I will summarize some of the key unordered financial results and operation results for the third quarter and September 31st.
Hi, everyone I will summarize some of our key and I'll be done.
Financial and operational results for the third quarter ended September 30.
Our September 32022.
In that I called out about 1000 holiday tool, although 11 there'd be crazy country, as Daniela and yet who Hum Wow I'm just it seems to have a meeting in high memory chip.
Speaker 3: September 13, 2022.
Speaker 3: In the third quarter of 2022, total revenue decreased 0.3% year-on-year to RMB, $167 million, primarily attributable to the diversification of unperforming assets in 2021. And the first three 2021...
All told the man.
Hum forming in the 2021 and.
Okay.
Yeah.
Oh, primarily wholesale off of some of our old shipment standpoint.
Ah that mental lately.
Speaker 3: The temporary closure of a several treatment centers due to the pandemic-specific requirements in the product of 2022.
In the two.
1020 <unk>.
Cost far rate well I M H.
They can take a pause.
Speaker 3: Ghost property was RMB 18.6 million, representing an increase of 22.5% gain a year. Ghost property was increased by 0.6% to 51.8%. The increase was attributable to the implementation of RMB 18.6 million.
The increase of 22.
Yeah Yeah.
Yeah.
Likewise this is Ben.
Oh yeah.
One 8% the increase was actually built the bulk pool.
When patients.
Cost control.
I'll call them some of them.
As well as the bell.
Speaker 3: string cost control of an assisted medical consumable, as well as the well.
The value add service, Oh, why bother grumps professional golfer well enhanced so it's hardly at all.
Speaker 3: the value added service provided by the group's professional doctor to enhance the service quality of long-circular assisted medical business.
Certainly.
At the close of business.
So in terms of basketball I was 60.
Even one 5 million.
Speaker 3: Selling expenses were RMB61.5 million, representing 36.8% of the company's total revenue in the third quarter of 2022. Selling expenses as of revenue decreased by 14% point year on year.
Let me answer based upon 8% also humbling hotel or on the Internet.
I'll talk about 2000 patents.
Uh huh.
All right.
Crazed by all teams percentage pardon yeah yeah.
Ashton.
<unk> expenses and it is Huntsville was mainly as a result, the company is our strategy.
Speaker 3: The reduction in the selling expenses and its contribute was mainly as a result of the company's strategic shift of marketing focus on the lower cost online marketing channels such as pirate diamond, customer,
Our marketing costs are not all of them cause on nine months and you have no such as the pilot pharma customer reach and our solid Xiaomi, India not blindly chimney.
So raising Cogs I think customer.
Speaker 3: and social media live streaming as to raising customer as decision caused under the impact of COVID-19 pandemic.
Cause.
I hope I'll call it lightly.
General and admin expenses, well I M B E.
Yeah.
Speaker 3: General and admin expenses were RMB45.5 million, representing a decrease of 12.6 million.
The same thing and B based off on health policy.
I mean, how content person I remember right. It went towards the divestment of our non performing assets in the 2021 and.
Speaker 3: health consists person primarily due to the diversions of underperforming assets in 2021.
So Fox Creek lock up until now Centennial cool.
We sell off the wall covering the company and we called out a loss of <unk> 15, coupons media and for the cost of a 2022.
Speaker 3: the first prequarter of 2022.
Speaker 3: As a result of the foregoing, the company recorded a loss of RMB 15.4 million for the third quarter of 2022, compared with a loss of RMB 13.3 million in the third quarter of 2021. Portion message.
Private for a loss of RMB 13, 3 million in the third quarter of 2021 basic and diluted loss per share was a loss of a M b you're putting.
In the course of 2020, compared with a basic and <unk>.
Loss per share of RMB two upon total in the Cogs, but sometimes you want.
Speaker 3: in the third quarter of 2020 compared with basic and
Speaker 3: direct loss per share of RMB 0.22 in the third quarter of 2021. EBITDA for the third quarter of 2022 was a loss of RMB 38.1 million compared with the loss of RMB 43.1 million in the third quarter of 2021. Adjust the EBITDA for the third quarter of 2021.
EBITDA for the quarter, all but 2020 tool was a loss of RMB eight 1 million compared with a loss of RMB 43, 1 million in the third quarter, all but 2021.
Yes.
That's all.
Sometimes he told loss.
B Penn part of 6 million from a loss of <unk>.
Speaker 3: of 2022 was RMB 10.6 million reformed from a loss of RMB 13 million in the third quarter of 2021.
And there's 13 million in the third quarter 2001.
But also it has to fall does the cost of all penciled out sometimes E. Lira, So I M B three parts.
Speaker 3: Adjusted loss after test for the third quarter of 2020 level to RMB 3.7 million Compared with loss of RMB 17.2 million in the third quarter of 2021.
Compared with a loss of RMB 17, <unk> in the 1001.
In terms of operating performance.
We solved that haven't already been some there's been a substantial offer several multimillion.
Speaker 3: In terms of operating performance, as a result of a temporary business subtraction of several treatment centers in the third quarter of 2022, the company recorded a decrease of 13.5% year-on-year in the total epic customers.
All but 1000 I'm, telling you to the company, we called out the equation of what.
So that team.
5% year on year in the total at the customer yeah.
The company recover and equate in the lumbar shipment in cases of all seven of US a ballpark, 7% year on year.
Speaker 3: The company recorded an increase in the number of treatment cases of 4.7% year-on-year.
And then buffer chip many cases in the return shipment increased by 7% year on year.
Speaker 3: And the number of treatment cases in the return treatment center increased by 37 percent year-on-year. The increase was primarily derived by the increasing demand of a non-surgical and systematic co-treatment around the young generation, as well as the effectiveness of a combination of neonate, and
<unk> was the primary driver by the increasing demand of our non surgical as that's been messy called chairman around the young generation as well as our effectiveness.
The rest of us they only.
In checkout.
Thank you Paul motion.
Although lumbar by a long stretch of cold mountain called Chairman.
Speaker 3: in check out package promotion.
As a percentage of total lumbar, but as I said 10 months of increased by five eight percentage point.
Speaker 5: Ho-To Lam-Ba-Ba, non-surgical assisted medical treatment.
Speaker 5: as a percentage of total number of assistance payments increased by 5.8 percentage points. Average spending per customer increased by 15.2% from RMB 2529 in the quarter of 2021 to between 25.3% from RMB 2529 to marketing insights from Tiger Woods around 29 or 18 years ago
Our ratio of spending power customer increased by 15, 2% from a and B pulled all of sudden Python, Japan deny in towards the cut off of 2000, and the ones, who I am between 1950 and that cost us about 2005 equal time and range right.
Speaker 5: RMB2915 in the third quarter of 2022. High memory drive by the cells of a high-end viral demystinating beta.
Sales of our high and viral Damon.
It does.
As of September 30.
And then I saw something similar in 2000, and he pool tests and test equal run was a M b hung coupons.
Speaker 5: As of September 13, 2022, cache and cache equivalent was RMB 20.4.
Huntley upon 4 million.
Okay.
They'll come being able to implement.
Speaker 5: 20.4 million
Awesome management strategy, we will dedicate towards the whole lot.
Speaker 5: Looking ahead, we will continue to implement a force management strategy. We will dedicate to provide better and quality services to our customers and deliver sustainable long-term growth. That concludes our prepared remarks.
And the quality of service to our customers and delivery.
Longtime squirrel, if concourse our preparer.
We map.
Thank you for joining us.
<unk> Com, we will now open the call to the question operator. Please go ahead.
Speaker 5: Thank you for joining us today's call. We will now open the call to the question. Operator, please go ahead.
Thank you.
We'll now begin our question and answer session.
I ask a question you May press Star then one on your Touchtone phone.
Speaker 2: Thank you. We will now begin our question and answer session.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Speaker 2: To ask a question, you may press star then one on your touch tone phone.
Speaker 2: If you are using a speakerphone, please pick up your handset before pressing the keys.
At this time, we will pause momentarily to assemble our roster.
Speaker 2: To withdraw your question, please press star then 2.
Speaker 2: At this time we'll pause momentarily to assemble our roster.
Yeah.
Again, if you have a question Thats Star then one.
Speaker 2: Again, if you have a question, that's star, then one.
Our first question comes from.
<unk> long from saga treat capital. Please go ahead.
Speaker 2: Our first question comes from
Hi, I'm Jasper's colleagues just wanted to thank you management for their sharing I actually have two questions.
Speaker 2: Jasper Wong from Saugatree Capital. Please go ahead.
Speaker 6: Hi, I'm Jasper's colleague. Just wanted to thank you, management, for their sharing. I actually have two questions. My first question is about customers. So we noticed that the number of customers have decreased. What were the reasons for the decrease, and is there any strategy to acquire new customers and to retain existing customers? Thank you.
My first question is about customer so we noticed that the number of customers have decreased what were the reasons for the decrease and is there any family to acquire new customers and to retain existing customers. Thank you.
Hi, Jessica this is Derek and thank you for your question, Yes, we have seen that the number of customers has been decreasing in comparison with the.
Speaker 4: Hi, Jesper, this is Derek, and thank you for your question. Yes, we have seen that the number of customers has been decreasing in comparison with theneevea.
Third quarter in 2021.
The main reason.
Speaker 4: quarter in 2021.
The decreasing is that we have.
Speaker 4: The main reason of the decreasing is that we have
You bet. They some agencies in 2021 and also in the first three quarters in 2022 and the other reason.
Speaker 4: We've asked some agencies in 2021 and also in the first three quarters in 2022. The other reason is that...
Is that.
Are we.
Tends to allocate.
More resources in.
Speaker 7: we
In our treatment center in Greater Bay.
Speaker 4: tend to allocate.
Speaker 4: more resources in
Area.
So we have allocate more cash in training the employees instead of spending advertising.
Speaker 4: in our treatment center in Greater Bay Area.
Speaker 4: So we have allocated more cash in training the employees instead of spending in advertising.
And the strategies that we are we are trying to retain our customer is that we will introduce a S. L. P. <unk> training to our employees and then in coking coal.
Speaker 4: The strategy that we are trying to retain our customers is that we will introduce SOP training to our employees and then incalculate core values to them.
Core values to them.
And the last is to.
Do the renovation for one of our flagship hospital, so that we could provide better customer experience.
Speaker 4: And the last is to do the renovation for one of our flagship hospitals so that we could provide better customer experience to retain those customers. Thank you.
To retain those customers. Thank you.
Yeah.
Thank you.
Phil and I still with you guys.
Speaker 8: Thank you.
Okay.
Speaker 6: Am I still with you guys?
Yeah.
Again, if you have a question. Please press Star then one.
Speaker 2: And if you have a question, please press star, then one.
Seeing no further questions, let me turn the call over to Mr. Derek She for closing remarks.
Speaker 2: Okay, no further questions. Let me turn the call over to Mr. Derek Hsieh for closing remarks.
Okay.
Thank you operator on behalf of our entire management team I would like to thank everyone again for joining US today. If you have any questions. Please contact us through E mail at I R. S. T E N G AI dot com Dusty and reach our IR Counsel E L K advisory and.
Speaker 4: Thank you, operator. On behalf of our entire management team, I would like to thank everyone again for joining us today. If you have any questions, please contact us through email at irfgengai.com.cn or reach our IR console, dlkadvisory at irfdlkadvisory.com.
I R. S E L. K advisory Dotcom, we appreciate your interest and support.
Medical International and look forward to speaking with you again next time and I have one more as much price move for our company that we provide one stop aesthetic medical treatment with Gen U a E.
Speaker 4: We appreciate your interest and support in Athletic Medical International and look forward to speaking with you again next time. And I have one more advertisement for our company that we provide one-stop athletic medical treatment with genuine equipment and trustworthy equipment.
Speaker 4: and support in Athletic Medical International and look forward to speaking with you again next time. And I have one more advertisement for our company that we provide one-stop athletic medical treatment with genuine equipment and consumables.
<unk> and.
Consumables.
So well count or the Investor and analyst day to visit our hospital all over China.
Speaker 4: So welcome all the investor and analysts to visit our hospital all over China
And hope you have a great experience here and thank you operator. Please go ahead.
Speaker 4: and hope you have a great experience there. And thank you. Operator, please go ahead.
Pardon me I was just advise we do have a follow up question from Jasper Wong Jasper. Your line is now open.
Speaker 2: I was just advised we do have a follow-up question from Jasper Wong. Jasper, your line is now open.
Perfect. Thank you sorry about that I actually have one more follow up question Sylvia.
Speaker 6: Perfect, thank you. Sorry about that. I actually have one more follow-up question. So we all noticed that the COVID situation remains uncertain and there's lockdowns and that could potentially affect the company's business. So we just want to know, is there any measures in place to alleviate the risk?
So we all noticed that the COVID-19 situation remains uncertain and there's lockdowns and that could potentially affect the company's business. So we just want to know is there any measures in place to alleviate.
Alright, thank you.
Yes.
Okay. Thank you Jesper.
Yes, we noticed that the government is to limit the spread of COVID-19.
Speaker 6: Thank you.
Speaker 4: Okay, thank you, Jasper. Yes, we noticed that the attitude of government is to limit the spread of COVID-19. So firstly, we will actively coordinate with government pandemic prevention measures.
So firstly, we will execute.
Coordinate with Golfman pandemic prevention measures.
For example, we will set a throne decks.
Speaker 4: For example, we will set a front deck.
Speaker 4: to guide the customer scan the site code and measure their body temperature to prevent uh
D.
The customers are affected by Covid and then we will take advantage of our online marketing.
Speaker 4: the customer affected by COVID. And then we will take advantage of our online marketing while our face-to-face consultation is impacted. For example, we will use a video call between our doctors and customers.
While our face to face consultation is impacted for example, we will use all.
A video call between the our doctors and customers.
And lastly, we will.
While in crude and.
Expansion during this period.
Speaker 4: And lastly, we will provide improvement expansion during this period.
So we won't have many loss making agencies.
In comparison to the previous time.
Speaker 4: So we won't have many loss making agencies in comparison to the previous time.
And thank you.
Yeah.
Thank you and my still with you I [laughter] yeah.
Speaker 9: Thank you.
Speaker 8: Thank you. Am I still with you guys?
Yes, I would just be can hear you.
[laughter]. Thank you actually one last question. Please and we saw the Chinese government actually has introduced I know a lot of policies on how does how athletic medical administration Opry and advertise them. So what's the company's view on these regulations and how.
Speaker 6: Yes, we can hear you. Yes, thank you. Actually, one last question, please. We saw the Chinese government actually has introduced quite a lot of policies on how the athletic medical industry should operate and advertise. So what's the company's view on these regulations, and how will they affect our business opportunities?
They affect our business operation. Thank you.
Oh, Thank you just for.
Ah yes.
Good thing is that we know the bulk of my hope the government.
How do we regulate our industry and we know you execute and we will.
Uh huh.
We will have the target to conduct our business in a healthy and a.
Speaker 4: we will have the target to conduct our business in a healthy and long-term way.
Long term way.
And as you know the the ash was founded.
Only by Doctor Joel.
Speaker 4: And as you know, the AASH was funded by Dr. Atul. Dr. Atul and so we have
And so we have.
Being the and a strong full throne of industry in terms of compliance.
Speaker 4: being at the forefront of industry in terms of compliance. So we are confident that
So we are confident that we.
We will be impacted much we will have much smaller impact than our competitors.
Speaker 4: we will have much smaller impact than our competitors.
And.
And that's it thank you.
Thank you management.
Speaker 10: And...
That will be my last question. Thank you.
Speaker 9: And that's it. Thank you.
Speaker 6: Thank you, Majmaan.
Okay and if you have a question. Please press Star then one.
Speaker 6: That will be my last question too.
Speaker 11: Thank you.
Speaker 2: Again, if you have a question, please press star, then 1.
Our next question comes from Eva from <unk>.
Lumi are capital. Please go ahead.
Speaker 2: Our next question comes from Eva from
Hello.
Speaker 2: Lumiere Capital. Please go ahead.
Hi management, thanks for the presentation.
Speaker 10: Hello?
And so we just learn from that you guys have a plan to you know for that is false and the center's incent, Jim but I mean, it's underneath our core area and why should we make this such a decision to for the two potential centers to be divested a we wanted to know and apart from days do we have at the time.
Speaker 6: Hi, management. Thanks for the presentation. And we just learned from that you guys have a plan to further dispose the centers in Shenzhen. But I mean Shenzhen is our core area and why do we make this such a decision for the two potential centers to be divested. We want to know apart from these do we have other targets to further.
Get to fair to dispose off.
Thanks.
Oh Hello Eva.
Thank you Paulo question, Yes, we have disclosed that we are planning to device one of our clinics in syndrome, and we think the main reason is that that clinic is located in Wuhan district, where.
Thanks.
Hello Eva, thank you for your question. Yes, we have disclosed that we are planning to devise one of our clinics in Shenzhen. And we think the main reason is that that clinic is located in Futian District, where it is frequently affected by COVID-19 lockdown.
It is frequency affected by COVID-19 lockdown.
And we are unable to.
Wait the rental.
Shrunk our private landlords.
and we are unable to wait the rental.
So in consideration of.
from our private landlord.
The cash flow and.
So in consideration of
The healthy development of our financial aspect, we decided to divest eat in the next few months.
the cash flow and
the healthy development of our financial aspect we decide to divest it in the next few months and
And we.
We do not have further disposal.
And that's it thank you.
We do not have further disposal plan.
Oh, Okay. Thank you just one question so how many clinics and hospitals have that stuff like today. Thanks.
And that's it. Thank you.
Okay, thank you. Just one question. So how many clinics and hospitals do we have at SOF like today? Thanks.
Thank you we have a.
10 clinics and hospitals in total as of today.
Thank you. We have 10 clinics and hospitals in total as of today.
Alright. Thank you so much thanks.
All right, thank you so much. Thanks.
Again, if you have a question. Please press Star then one.
Again, if you have a question, please press star, then 1.
Again, that's star then one.
Yeah.
Again, that's star then one.
I see there are no further questions. Let me turn the call back once again to Mr. Derek sheet to repeat his closing remarks.
All right, seeing there are no further questions, let me turn the call back once again to Mr. Derek Shih to repeat his closing remarks.
Okay. Thank you operator.
You everyone for joining the call today.
Okay, thank you operator. Thank you everyone for joining the course today. And thank you, Jasper and Eva for your helpful questions.
Thank you Jesper and Eva for your helpful question.
And I think that's it for today's call and operator. Please go ahead.
And I think that's it for today's call. And all free therapies, go ahead.
Thank you everyone for attending aesthetic medical International's third quarter of 2022 earnings Conference call. This concludes our call today. We thank you for thank you all for listening Goodbye.
Thank you everyone for attending Aesthetic Medical International's third quarter of 2022 Earnings Conference call. This concludes our call today. We thank you all for listening.
Goodbye.
That's aach...
That's awesome.
[music].
Oh.
Okay.
Oh.
[music].
[music].
Thank you.
[music].
Yes.
Thank you.
Uh huh.
Yeah.
Okay.
[music].
Okay.
Okay.
[music].
Yeah.
[music].
Okay.
Okay.
Okay.
[music].
Yes.
[music].
Thank you again for all your support and attention. And I would like now to turn the call to our CFO , Tobi Wu, to introduce the financials and operations for the third quarter of 2022. Tobi, please go ahead. Okay. Thank you, Dr. Zhou, and thank you, Director. Hi, everyone. I will summarize some of the key financial results and operations results for the third quarter and September 13, 2022. In the third quarter of 2022, total revenue decreased 0.3% year-on-year to RMB, $167 million, primarily attributable to the diversification of unperforming assets in 2021. And the first three, 2022, the temporary closure of several treatment centers due to the pandemic-specific requirement in the third quarter of 2022. Gross profit was RMB, $186.6 million, representing an increase of 22.5% year-on-year. Gross profit was increased by 0.6% to 51.8%. The increase was attributable to the implementation of string cost control of the assisted medical consumables, as well as the value added service provided by the group's professional doctor to enhance the service quality of long-circuit call-assisted medical business.
Yeah.
[music].
Okay.
Yes.