Aesthetic Medical International Holdings Group Limited 2022 Earnings Call
Speaker 1: Good morning, ladies and gentlemen. Thank you for standing by, and welcome to Aesthetic Medical International Fiscal Year 2022 Earnings Conference Call.
Speaker 1: During today's presentation, all parties will be in a listen-only mode.
Speaker 1: As a reminder, today's conference call is being recorded.
Speaker 1: On the call today from Aesthetic Medical International are Dr. Peng Wu Cho, Chairman and Chief Executive Officer, Mr. Toby Wu, Chief Financial Officer, and Mr. Derek Chi, Investor Relations Associate Director.
Speaker 1: Dr. Cho 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.
Speaker 1: 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 1: These include statements about our future expectations, financial projections, and our plans and process.
Speaker 1: Actual results may differ materially from those set forth in such statements.
Speaker 1: For discussion of these risks and uncertainties, you should review the company's filings with the SEC, which includes today's press release.
Speaker 1: You should not rely on our forward-looking statements as predictions of future events.
Speaker 1: 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.
Speaker 1: Our discussion today will include non-IFRS financial measures, including EBITDA, adjusted loss, and adjusted EBITDA.
Speaker 1: You should not consider EBITDA, adjusted EBITDA, and adjusted loss as a substitute for or superior to net income prepared in accordance with IFRS.
Speaker 1: Furthermore, because non-IFRS measures are not prepared in accordance with IFRS,
Speaker 1: are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies.
Speaker 1: You are encouraged to review the company's financial information in its entirety and not rely on a single financial measure.
Speaker 1: At this time, I would like to turn the call over to Dr. Peng Wu Cho, Chairman and CEO of Aesthetic Medical International. His opening remarks will be delivered in English by Investor Relations Associate Director, Mr. Derek Sheehy.
Speaker 1: Dr. Cho, please go ahead.
Speaker 2: Thank you for your attention.
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Speaker 3: Thank you, operator and everyone, for joining the call today. We are excited to share our fiscal year 2022 earnings and outlook with our stakeholders. Despite the challenges of the past year, when our treatment centers were placed under lockdown from time to time, we were able to reach the goal of increasing the number of people who are in the hospital.
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Speaker 3: In 2022, we achieved impressive financial performance with a revenue of RMB 617 million despite the divestment of three underperforming treatment centers during the period, representing a year-on-year increase of 3.8%.
Speaker 3: The company's adjusted EBITDA rebounded from a loss of RMB 149.2 million to positive RMB 61.0 million, demonstrating our success in asset allocation, efficiency, and cost management.
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Speaker 3: We are also proud to announce the completion of the renovation of our flagship hospital, Shenzhen Pangai, at the end of 2022. This renovation project, including the installation of a refreshment bar, new house furnishing and state-of-the-art facilities, and a new home for the family.
Speaker 3: that allows customers to enjoy a more comfortable and relaxing environment while receiving aesthetic consulting services.
Speaker 3: drive-through in our average standing current customer.
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Speaker 3: Our upgraded IT system represents a significant milestone that provides real-time data on the company's operations, allowing for more informed decision-making and with the integration of the hospital management system.
Speaker 3: business systems, and financial systems, the company can now better track patient data, revenue, and expenses, providing greater transparency and accuracy in information disclosure.
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Speaker 2: The government is working to ensure the development of the government is a priority. The government is working to ensure the development of the government is a priority.
Speaker 3: During the period, the company has tried to establish
Speaker 3: standard operating procedures that aims to standardize our operational processes and ensure that all services are delivered consistently and efficiently across all our treatment centers.
Speaker 3: The training system will provide continuous training and development opportunities for companies employees to improve their skills and knowledge.
Speaker 3: ensuring that they can provide the highest level of service to its customers.
Speaker 3: 29 mystery shoppers' assessments and feedback have been received in 2022 to validate the implementation of SOP. In February 2023, we closed the subscription agreement with Jie Chang.
Speaker 3: for consideration of RMB 170 million, which will enable us to optimize our capital structure, supplements liquidity for our future expansion, and therefore positions us as a leader in the field of aesthetic medicine.
Speaker 3: as medical agencies in China.
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Speaker 3: We believe with the aforementioned strategy, we will be committed to delivering safe, effective, and personalized solutions to our customers. And link return further enhance our core competencies, improve brand equity, and eventually drive profitability.
Speaker 3: Thank you again for all your support and attention. Now I would like to turn the call to our CFO Tobi Wu to introduce the financials and operations for the fiscal year of 2022. Tobi, please go ahead.
Speaker 2: Thank you, Dr. Zhou and Harald Aaron. I will summarize some of the key auditor financial results and operations results for the fiscal year of 2022 and December 31, 2022. In the fiscal year of 2022.
Speaker 2: Total revenue increased 3.8% year-on-year to RMB $617.1 million. Primarily attributable to the better quality and well-organized service as we provided as well as
Speaker 2: more optimized operations strategies that we implemented.
Speaker 2: Ghost profit was RMB355.6 million, representing an increase of 31.9% year-on-year.
Speaker 2: Ghost pattern margin increased 11.3% to 53.1%. The increase was attributable to the diversification of a treatment center that helped meet our profitability requirements during 2021 and 2022.
Speaker 2: and the implementation of a stretching cost control of an aesthetic medical consumable.
Speaker 2: Selling expenses were RMB 226.5 million, representing 33.8% of the company's total revenue in the fiscal year of 2022. Selling expenses as of great brand new decreased by 28.9% from 2018 to 2019.
Speaker 2: The reduction in the selling expenses and its contribution was mainly a result of optimization of marketing channels such as the introduction of a B2B corporation, KOL, Adulman, and the
Speaker 2: and management of customer relationship in our pirate domain. General and admin expenses were RMB 115.4 million, representing a decrease of 27.3%, and general and admin expenses as revenue decreased by...
Speaker 2: 5.6% from year on year, primarily due to the diversions of underperforming assets in 2021 and 2022, and the tiny labor cost control. As we saw before occurring, the company records a loss of RMB 7.7% from year on year.
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Speaker 2: Compared with the loss of RMB 616,9.5 million in the fiscal year of 2021, basic and diuretic loss per share were both loss of RMB 0.93 in the fiscal year of 2020.
Speaker 2: compared with basic and biologic loss per share of RMB 8.89 in the fiscal year 2021. EBITDA for the financial year of 2020.
Speaker 2: was a loss of RMB 23.1 million, compared with a loss of RMB 555 million in the fiscal year of 2021. Adjusted EBITDA for the fiscal year of 2020 was a positive RMB.
Speaker 2: We found from a loss of RMB 149.2 million in the fiscal year of 2021. Adjust the property after tax for the fiscal year of 2022 was a positive RMB 7.9 million compared with a loss of RMB 263.7 million in the fiscal year of 2021.
Speaker 2: increase in number of treatment cases of 15.7% yield on yen. The increase was primarily drive by the increasing demand for long surgical and testimatical treatment among the young generation, as well as the introduction of a narrated...
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Speaker 2: Total number of non-surgical excessive medical treatments as a percentage of the total number of excessive treatments increased by 4.4 percentage points to 19.4.5 percent in 2020. Try by the inauguration non-surgical treatment solution.
Speaker 2: for skillment and advanced energy-based equipment.
Speaker 2: Average spending per customer increased by 16.1% from RMB.
Speaker 2: Thank you for watching this video.
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We will now open the first book. Access operated. Go ahead. Thank you. If you wish to ask a question, please press star, then 1 on your telephone, and wait for your name to be announced.
If you wish to cancel your request, please press star and 2.
If you are on a speakerphone, please pick up your handset to ask your question.
Once again, if you wish to ask a question, please press star then one on your telephone and wait for your name to be announced.
question today comes from Qi-en Yishang with East Asia Securities Co. Please go ahead.
Good evening management team and this is Ching-Yi Zeng from East Asia Security. I've got two questions here and the first one is is there any plan for the company to divest or close operations of the clinic in 2023 and if any...
or acquisition plan during this period.
Thank you Chen Yi. This is Derek from the company.
And for your first question, we do not have any plan to divest of this operation of clinics in 2023, but we will keep monitoring the profitability of our treatment centers.
If any treatment center fails to reach our expectation, then we might consider the...
the divestment. But for the current period, our treatment centers are all performing decently, so we don't have this kind of divestment plan right now. And for the acquisition plan,
We are pretty sure that in 2023 we will not expand or...
acquire any EU treatment center because we will focus more on our capital structure and the profitability of our current treatment centers. But starting from 2024 we will consider to
open one to two treatment centers after our standard operation procedure has been completely implemented among all our treatment centers.
So from that on we will have a standardized model too.
opened the treatment center from 2024.
And I think that's my answer for your question. Okay, that's really clear. Thank you very much. And the second question is about the visits. I would like to ask, how is the number of visits after the control of the at-
because of
the people infected with COVID-19 went up really quick. But after about two weeks, we have seen a sharp increase in the number of visits because most of the people...
has been recovered from that epidemic.
And starting from this year, the numbers of visits are very encouraging to us because
one of our Black Street Hospital.
has seen a sharp increase, like double in comparison with the numbers in 2019.
So we believe that without the impact of the epidemic, our performance in 2023 will outperform.
without the impact of the epidemic, our performance in 2023 will outperform
We outperformed the last three years when COVID-19 was affecting us. That's my answer to your second question. Thank you.
Thank you. We would like to see the business growth this year and we are looking forward to that. Thank you much.
Thank you. Once again, if you wish to ask a question, please press star and one on your telephone.
Seeing no further questions, let me turn the call back over to Mr. Derek Hsieh for closing remarks.
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 irspengai.com.cn. We appreciate your interest and support in OSHO International Foundation
Aesthetic Medical International, and look forward to speaking with you.
again next time. Operator, please go ahead.
Thank you everyone again for attending Aesthetic Medical International's fiscal year of 2022 Earnings Conference. This concludes our call today and we thank you all for listening in. Goodbye. contacts me and at about DoT1.