EX-99.1 2 tm2133084d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Aesthetic Medical International Holdings Group Limited Reports Second Quarter and First Half of 2021 Unaudited Financial Results

 

Shenzhen, China, November 16 2021 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) (the “Company” or “AIH”), a leading provider of aesthetic medical services in China, today announced its unaudited financial results for the second quarter and first half of 2021.

 

Dr. Zhou Pengwu, Chairman and CEO of the Company, commented, “We are pleased to see an encouraging result in this quarter in terms of (1) operational and financial results, (2) strategic restructuring plan, and (3) our development in the field of non-surgical aesthetic medical services. As the impact of COVID-19 has been gradually receding in mainland China, the public has resumed their daily activities, as well as their consumption of aesthetic medical services. Supported by the recovery of market demand, the number of our active customers in the first half of 2021 increased by 21.7% year-over-year (“yoy”), which drove the revenue growth of 68.6% yoy and the gross profit margin improvement of 8.4 percentage point in the first half of 2021. Adjusted EBITDA also rebounded from loss in the first half of 2020 to profit in the first half of 2021.”

 

Dr. Zhou continued, “We highly value the importance of sustainable growth and have been contemplating a strategic restructuring plan. Specifically, we plan to cease the operations of or divest certain hospitals and clinics that either are located in our non-core markets or did not meet our internal performance requirements before the end of this year. By ceasing the operations of or divesting these underperforming hospitals and clinics that hindered our financial performance, we can focus on realizing the full potential of the retained assets. We assessed the value of these hospitals and clinics, which was recorded as a non-operating and non-cash impairment loss in the second quarter of 2021. We believe that this is an essential step towards a healthier financial result in the future.”

 

Dr. Zhou further explained, “Our non-surgical aesthetic medical clinic in Beijing, which opened in the first half of 2021, has achieved outstanding performance with an average monthly revenue of over RMB1.0 million in this quarter, and has realized satisfying net profit margin. We also target to open three similar satellite clinics towards the end of this year. We believe that our non-surgical aesthetic medical business model could ride on the development of the aesthetic market and contribute to the future growth of our business.”

 

Second Quarter of 2021 Unaudited Financial Highlights

 

·Total revenue was RMB224.0 million (US$34.7 million), representing an increase of 34.4% from RMB166.7 million in the second quarter of 2020.

 

·Gross profit was RMB133.6 million (US$20.7 million), representing an increase of 40.3% from RMB95.2 million in the second quarter of 2020.

 

·Gross margin was 59.6%, representing an increase of 2.5 percentage points from 57.1% in the second quarter of 2020.

 

·Adjusted EBITDA1 for the period was a profit of RMB14.7 million (US$2.3 million), compared with a loss of RMB1.0 million in the second quarter of 2020.

 

First Half of 2021 Unaudited Financial Highlights

 

·Total revenue was RMB434.5 million (US$67.3 million), representing an increase of 68.6% from RMB257.7 million in the same period of 2020.

 

·Gross profit was RMB255.8 million (US$39.6 million), representing an increase of 96.6% from RMB130.1 million in the same period of 2020.

 

 

 

 

·Gross margin was 58.9%, representing an increase of 8.4 percentage points from 50.5% in the same period of 2020.

 

·Adjusted EBITDA1 for the period was a profit of RMB35.2 million (US$5.5 million), compared with a loss of RMB46.7 million in the same period of 2020.

 

1 Adjusted EBITDA is not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, or IFRS. For more information regarding non-IFRS financials, please refer to “Non-IFRS Financial Measures” and “Reconciliations of IFRS and Non-IFRS Results” appearing elsewhere in this press release.

 

Second Quarter of 2021 Operational Highlights

 

   For the Three Months Ended June 30, 
   2020   2021     
   Number   % of Total   Number   % of Total   Change 
New Customers   26,762    40.3%   24,612    38.7%   -8.0%
Repeat Customers   39,582    59.7%   38,926    61.3%   -1.7%
Total Active Customers   66,344    100.0%   63,538    100.0%   -4.2%

 

·Repeat customers, defined as active customers who had previously received at least one treatment from the Company, accounted for 61.3% of the Company’s active customer base in the second quarter of 2021.

 

·The total number of active customers was 63,538, representing a decrease of 4.2% from 66,344 in the second quarter of 2020, as the Company shifted its marketing strategies from conducting diverse promotions during the COVID-19 pandemic in the second quarter of 2020, to launching a more balanced and attractive product matrix in the second quarter of 2021.

 

·Average spending per customer increased by 40.3% from RMB2,513 in the second quarter of 2020 to RMB3,525 in the second quarter of 2021, as more advanced products are sold in the second quarter of 2021.

 

·In the second quarter of 2021, the Company performed a total of 137,748 treatments, including 22,413 surgical treatments and 115,335 non-surgical treatments, representing an increase of 1.5%, a decrease of 1.3% and an increase of 2.1%, respectively, from 135,662 total treatments, 22,700 surgical treatments and 112,962 non-surgical treatments in the second quarter of 2020.

 

 

 

 

First Half of 2021 Operational Highlights

 

   For the Six Months Ended June 30, 
   2020   2021     
   Number   % of Total   Number   % of Total   Change 
New Customers   41,144    40.0%   48,169    38.5%   +17.1%
Repeat Customers   61,793    60.0%   77,092    61.5%   +24.8%
Total Active Customers   102,937    100.0%   125,261    100.0%   +21.7%

 

·In the first half of 2021, repeat customers accounted for 61.5% of our active customer base. The total number of active customers was 125,261, representing an increase of 21.7% from 102,937 in the same period of 2020. This is mainly because the impact of COVID-19 has gradually receded in the first half of 2021.

 

·In the first half of 2021, the Company performed a total of 270,424 treatments, including 45,238 surgical treatments and 225,186 non-surgical treatments, representing an increase of 33.5%, 21.5% and 36.2%, respectively, from 202,608 total treatments, 37,241 surgical treatments and 165,367 non-surgical treatments in the first half of 2020.

 

Second Quarter of 2021 Unaudited Financial Results

 

   For the Three Months Ended June 30, 
(RMB millions, except per share data and percentages)  2020   2021   Change 
Revenue   166.7    224.0    +34.4%
Non-surgical aesthetic medical services   82.8    117.0    +41.3%
Minimally invasive aesthetic treatments   42.4    56.6    +33.5%
Energy-based treatments   40.4    60.4    +49.5%
Surgical aesthetic medical services   71.3    91.2    +27.9%
General healthcare services and other aesthetic medical services   12.6    15.8    +25.4%
Gross profit   95.2    133.6    +40.3%
Gross margin   57.1%   59.6%   +2.5 p.p.*
Impairment of goodwill   -    (111.6)   N.A. 
Impairment of intangible asset   -    (43.7)   N.A. 
Impairment of property, plant and equipment   -    (139.8)   N.A. 
                
EBITDA**   (34.3)   (294.9)   -759.8%
Adjusted EBITDA**   (1.0)   14.7    +1,570.0%
Adjusted EBITDA margin   (0.6)%   6.6%   +7.2p.p.*
                
Loss for the period   (64.4)   (324.5)   -403.9%
Adjusted loss**   (31.1)   (14.9)   52.1%
Adjusted loss margin   (18.7)%   (6.7)%   +12.0p.p.*

 

Notes: 

* p.p. represents percentage points 

**Refer to below “Non-IFRS Financial Measures”

 

 

 

 

Revenues

 

Total revenue was RMB224.0 million (US$34.7 million), representing an increase of 34.4% from RMB166.7 million in the second quarter of 2020, primarily due to the recovery of economic activities and customers’ demands and purchasing power in mainland China, together with the Company’s effort to boost sales.

 

Revenue from non-surgical aesthetic medical services was RMB117.0 million (US$18.1 million), representing an increase of 41.3% from RMB82.8 million in the second quarter of 2020.

 

Revenue from minimally invasive aesthetic treatments was RMB56.6 million (US$8.8 million), representing an increase of 33.5% from RMB42.4 million in the second quarter of 2020.

 

Revenue from energy-based treatments was RMB60.4 million (US$9.4 million), representing an increase of 49.5% from RMB40.4 million in the second quarter of 2020.

 

Revenue from surgical aesthetic medical services was RMB91.2 million (US$14.1 million), representing an increase of 27.9% from RMB71.3 million in the second quarter of 2020.

 

Revenue from general healthcare services and other aesthetic medical services was RMB15.8 million (US$2.4 million), representing an increase of 25.4% from RMB12.6 million in the second quarter of 2020.

 

Cost of sales and services rendered

 

Cost of sales and services rendered was RMB90.4 million (US$14.0 million), representing an increase of 26.4% from RMB71.5 million in the second quarter of 2020, primarily as a result of significant growth in total revenue.

 

Gross profit

 

Gross profit was RMB133.6 million (US$20.7 million), representing an increase of 40.3% from RMB95.2 million in the second quarter of 2020, primarily due to the significant growth in total revenue. Gross profit margin was 59.6%, representing an increase of 2.5 percentage points from 57.1% in the second quarter of 2020, mainly due to more higher margin services and products sold during the second quarter of 2021.

 

Gross profit of non-surgical aesthetic medical services was RMB68.6 million (US$10.6 million), representing an increase of 48.8% from RMB46.1 million in the second quarter of 2020. Gross profit margin was 58.6%, compared with 55.8% in the second quarter of 2020.

 

Gross profit of minimally invasive aesthetic treatments was RMB32.6 million (US$5.0 million), representing an increase of 26.8% from RMB25.7 million in the second quarter of 2020. Gross profit margin was 57.6%, compared with 60.6% in the second quarter of 2020.

 

Gross profit of energy-based treatments was RMB36.0 million (US$5.6 million), representing an increase of 76.5% from RMB20.4 million in the second quarter of 2020. Gross profit margin was 59.6%, compared with 50.7% in the second quarter of 2020.

 

 

 

 

Gross profit of surgical aesthetic medical services was RMB55.4 million (US$8.6 million), representing an increase of 33.8% from RMB41.4 million in the second quarter of 2020. Gross profit margin was 60.7%, compared with 58.1% in the second quarter of 2020.

 

Gross profit of general healthcare services and other aesthetic medical services grew significantly, from RMB7.7 million in the second quarter of 2020 to RMB9.6 million (US$1.5 million) in the second quarter of 2021. Gross profit margin was 60.8%, compared with 61.3% in the second quarter of 2020.

 

Selling expenses

 

Selling expenses were RMB112.3 million (US$17.4 million), representing 50.1% of the Company’s total revenue of the same period, compared to selling expenses of RMB92.5 million in the second quarter of 2020, which represented 55.5% of the Company’s total revenue of the same period. Selling expenses increased on a year-over-year basis, primarily because the Company launched more marketing initiatives after it gradually resumed operations in the second quarter of 2021.

 

General and administrative expenses

 

General and administrative expenses were RMB44.8 million (US$6.9 million), representing a decrease of 21.3% from RMB56.9 million in the second quarter of 2020, primarily due to the decrease of RMB11.4million (US$1.8 million) in ESOP related expenses.

 

Impairment of good will, intangible assets and property, plant and equipment

 

Impairment of goodwill was RMB111.6 million (US$17.3 million), compared with nil in the same period of 2020.

 

Impairment of intangible assets was RMB43.7 million (US$6.8 million), compared with nil in the same period of 2020.

 

Impairment of property, plant and equipment was RMB139.8 million (US$21.7 million), compared with nil in the same period of 2020.

 

The Company incurred impairments during the second quarter of 2021, primarily due to its strategic restructuring. The change of these three items were primarily because the Company has performed impairment assessments at cash-generating unit level and noted several recoverable amounts were lower than their carrying amounts for certain cash-generating units. Relevant impairments are non-operating and non-cash items.

 

Loss for the period

 

As a result of the foregoing, the Company recorded a loss of RMB324.5 million (US$50.3 million) for the second quarter of 2021, compared with a loss of RMB64.4 million in the second quarter of 2020. Basic loss per share was RMB3.58 (US$0.55), compared with basic loss per share of RMB0.95 in the second quarter of 2020. Diluted loss per share was RMB3.58 (US$0.55), compared with diluted loss per share of RMB0.95 in the second quarter of 2020.

 

Certain Non-IFRS items

 

EBITDA for the second quarter of 2021 was a loss of RMB294.9 million (US$45.7 million), compared with a loss of RMB34.3 million in the second quarter of 2020.

 

Adjusted loss for the second quarter of 2021 was RMB14.9 million (US$2.3 million), compared with an adjusted loss of RMB31.1 million in the second quarter of 2020.

 

Adjusted EBITDA for the second quarter of 2021 was a profit of RMB14.7 million (US$2.3 million), compared with a loss of RMB1.0 million in the second quarter of 2020.

 

 

 

 

EBITDA, Adjusted EBITDA and Adjusted loss are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, or IFRS. For more information regarding non-IFRS financials, please refer to “Non-IFRS Financial Measures” and “Reconciliations of IFRS and Non-IFRS Results” appearing elsewhere in this press release.

 

First Half of 2021 Unaudited Financial Results

 

   For the Six Months Ended June 30, 
(RMB millions, except per share data and percentages)  2020   2021   Change 
Revenue   257.7    434.5    +68.6%
Non-surgical aesthetic medical services   130.5    226.0    +73.2%
Minimally invasive aesthetic treatments   68.5    108.4    +58.2%
Energy-based treatments   62.0    117.6    +89.7%
Surgical aesthetic medical services   111.1    178.1    +60.3%
General healthcare services and other aesthetic medical services   16.1    30.4    +88.8%
Gross profit   130.1    255.8    +96.6%
Gross margin   50.5%   58.9%   +8.4p.p.*
Impairment of goodwill   -    (111.6)   N.A. 
Impairment of intangible asset   -    (43.7)   N.A. 
Impairment of property, plant and equipment   -    (139.8)   N.A. 
                
EBITDA**   (104.9)   (286.7)   -173.3%
Adjusted EBITDA**   (46.7)   35.2    +175.4%
Adjusted EBITDA margin   (18.1)%   8.1%   +26.2p.p.*
                
Loss for the period   (147.5)   (344.7)   -133.7%
Adjusted loss**   (89.3)   (22.8)   +74.5%
Adjusted loss margin   (34.7)%   (5.2)%   +29.5p.p.*

 

Notes:

 

* p.p. represents percentage points

**Refer to below “Non-IFRS Financial Measures”

 

Revenues

 

Total revenue was RMB434.5 million (US$67.3 million), representing an increase of 68.6% from RMB257.7 million in the same period of 2020, primarily due to the recovery of economic activities and customers’ demands and purchasing power in mainland China, together with the Company’s effort to promote sales.

 

Cost of sales and services rendered

 

Cost of sales and services rendered was RMB178.7 million (US$27.7 million), representing an increase of 40.0% from RMB127.6 million in the same period of 2020, primarily as a result of significant growth in total revenue.

 

 

 

 

Gross profit

 

Gross profit was RMB255.8 million (US$39.6 million), representing an increase of 96.6% from RMB130.1 million in the same period of 2020, primarily as a result of significant growth in total revenue. Gross profit margin was 58.9%, representing an increase of 8.4 percentage points from 50.5% in the same period of 2020, mainly due to more services and products with higher profit margin sold during this period.

 

Gross profit of non-surgical aesthetic medical services was RMB129.4 million (US$20.0 million), representing an increase of 104.7% from RMB63.2 million in the same period of 2020. Gross profit margin was 57.3%, compared with 48.5% in the same period of 2020.

 

Gross profit of minimally invasive aesthetic treatments was RMB60.2 million (US$9.3million), representing an increase of 65.8% from RMB36.3 million in the same period of 2020. Gross profit margin was 55.5%, compared with 53.4% in the same period of 2020.

 

Gross profit of energy-based treatments was RMB69.2 million (US$10.7 million), representing an increase of 159.2% from RMB26.7 million in the same period of 2020. Gross profit margin was 58.8%, compared with 43.1% in the same period of 2020.

 

Gross profit of surgical aesthetic medical services was RMB108.5 million (US$16.8 million), representing an increase of 83.6% from RMB59.1 million in the same period of 2020. Gross profit margin was 60.9%, compared with 53.2% in the same period of 2020.

 

Gross profit of general healthcare services and other aesthetic medical services grew significantly, from RMB7.8 million in the same period of 2020 to RMB17.9 million (US$2.8 million) in the same period of 2021. Gross profit margin was 58.9%, compared with 48.4% in the same period of 2020.

 

Selling expenses

 

Selling expenses were RMB206.3 million (US$32.0 million), representing 47.5% of the Company’s total revenue of the same period, compared to selling expenses of RMB170.5 million in the same period of 2020, which represented 66.2% of the Company’s total revenue of the same period. Selling expenses increased on a year-over-year basis, primarily because the Company launched more marketing initiatives after it gradually resumed operations in the second quarter of 2021.

 

General and administrative expenses

 

General and administrative expenses were RMB86.9 million (US$13.5 million), representing a decrease of 19.4% from RMB107.8 million in the same period of 2020, primarily due to the decrease of RMB21.7million (US$3.4 million) in ESOP related expenses.

 

Impairment of goodwill, intangible assets and property, plant and equipment

 

Impairment of goodwill was RMB111.6 million (US$17.3 million), compared with nil in the same period of 2020.

 

Impairment of intangible assets was RMB43.7 million (US$6.8 million), compared with nil in the same period of 2020.

 

Impairment of property, plant and equipment was RMB139.8 million (US$21.7 million), compared with nil in the same period of 2020.

 

The Company incurred impairments during the first half of 2021, primarily due to its strategic restructuring. The change of these three items were primarily because the Company has performed impairment assessments at cash-generating unit level and noted several recoverable amounts were lower than their carrying amounts for certain cash-generating units. Relevant impairments are non-operating and non-cash items.

 

 

 

 

Loss for the period

 

As a result of the foregoing, the Company recorded a loss of RMB344.7 million (US$53.4 million) for the six months ended June 30, 2021, compared with a loss of RMB147.5 million in the same period of 2020. Basic loss per share was RMB3.92 (US$0.61), compared with basic loss per share of RMB2.17 in the same period of 2020. Diluted loss per share was RMB3.92 (US$0.61), compared with diluted loss per share of RMB2.17 in the same period of 2020.

 

Certain Non-IFRS items

 

EBITDA for the six months ended June 30, 2021 was a loss of RMB286.7 million (US$44.4 million), compared with a loss of RMB104.9 million in the same period of 2020.

 

Adjusted loss for the six months ended June 30, 2021 was RMB22.8 million (US$3.5 million), compared with adjusted loss of RMB89.3 million in the same period of 2020.

 

Adjusted EBITDA for the six months ended June 30, 2021 was a profit of RMB35.2 million (US$5.5 million), compared with a loss of RMB46.7 million in the same period of 2020.

 

EBITDA, Adjusted EBITDA and Adjusted loss are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, or IFRS. For more information regarding non-IFRS financials, please refer to “Non-IFRS Financial Measures” and “Reconciliations of IFRS and Non-IFRS Results” appearing elsewhere in this press release.

 

Certain balance sheet item

 

Cash and cash equivalents were RMB47.2 million (US$7.3 million) as of June 30, 2021, compared to RMB44.4 million as of December 31, 2020.

 

Certain cash flow items

 

Net cash generated from operating activities was RMB58.3 million (US$9.0 million) for the six months ended June 30, 2021, compared with a cash outflow of RMB47.7 million for the six months ended June 30, 2020.

 

Net cash used in investing activities was RMB34.1 million (US$5.3 million) for the six months ended June 30, 2021, compared with a cash outflow of RMB43.7 million for the six months ended June 30, 2020.

 

Net cash used in financing activities was RMB21.3 million (US$3.3 million) for the six months ended June 30, 2021, compared with a cash inflow of RMB13.4 million for the six months ended June 30, 2020.

 

Liquidity and capital resources

 

As at June 30, 2021, the Company had net current liabilities of RMB167.9 million which included current borrowings of RMB150.3 million.

 

Management has prepared a cash flow projection covering a period of 12 months from the issuance date of this press release. The cash flow projection has taken into account the anticipated cash flows to be generated from the Company’s future operations after the proposed restructuring, including considerations of reasonably possible changes in its operating performance, and available financing during the period under projection, including an equity financing from a share subscription, the closing of which is currently under negotiation, and additional bank loans.

 

Based on the above, the directors of the Company concluded that the Company has sufficient financial resources to meet its financial obligations as and when they fall due and continue its operations in the coming 12 months after the issuance date of this press release, subject to any uncertainty, such as the resurgence of COVID-19 in mainland China.

 

 

 

 

Exchange Rate

 

This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB6.4566 to US$1.00, which was the U.S. dollars middle rate announced by the Board of Governors of the Federal Reserve System of the United States on June 30, 2021.

 

Non-IFRS Financial Measures

 

EBITDA represents our loss before income tax, adjusted to exclude finance costs and amortization and depreciation. Adjusted EBITDA represents EBITDA, adjusted to exclude fair value loss of convertible note, fair value gain of contingent consideration payable, share-based compensation expense, professional fees and other non-operating expenses, including the impairment of non-current assets.

 

Adjusted loss represents loss for the period, adjusted to exclude fair value loss of convertible note, fair value gain of contingent consideration payable, share-based compensation expense, professional fees and other non-operating expenses, including the impairment of non-current assets.

 

EBITDA, adjusted EBITDA and adjusted loss are non-IFRS financial measures. You should not consider EBITDA, adjusted EBITDA and adjusted loss as a substitute for or superior to net income prepared in accordance with IFRS. Furthermore, because non-IFRS measures are not determined 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 in its entirety and not rely on a single financial measure.

 

The Company presents EBITDA, adjusted EBITDA and adjusted loss as supplemental performance measures because it believes that such measures provide useful information to the investors in understanding and evaluating the Company’s results of operations, and facilitate operating performance comparisons from period to period.

 

Recent Developments

 

In the first half of 2021, the Company opened a clinic in Beijing, which focused on non-surgical aesthetic medical services. Despite the limited period of operation, the Beijing clinic contributed an average monthly revenue of approximately RMB 1.0 million during the second quarter of 2021, and has started to generate net profit. The Company expects the Beijing clinic will continue the growth momentum in the third quarter of 2021.

 

On May 16, 2021, the Company entered into a definitive share subscription agreement with Lafang China Co., Ltd. (“Lafang”). The private placement is subject to customary closing conditions, and the Company is in active discussion with Lafang in order to facilitate the closing of the transaction. The Company intends to utilize the proceeds on business development and as general working capital.

 

During the first half of 2021, the Company carried out a strategic restructuring plan to optimize its resources and enhance its operating efficiency. On November 8, 2021, the board of directors of the Company approved its proposal to divest certain hospitals and clinics, which are either located in non-core markets, or did not meet the Company’s internal performance requirement. Total revenue contributed by the assets subject to divestiture accounted for about 11% of total revenue for the first half of 2021. The Company believes that the restructuring plan is an essential move to improve its operations and solidify its leading position in the market. After the successful divestiture, the overall profitability of the retained hospitals and clinics are expected to improve, thus ensuring a healthier financial performance in the long run.

 

Although sporadic COVID-19 cases are detected from time to time in mainland China, economic activities in regions where AIH operates have not been materially affected. The Company’s hospitals and clinics are implementing necessary precautions, including temperature check for employees and disinfection of premises, to secure a hygienic environment for both staff and customers.

 

 

 

 

Business Outlook

 

The Company is in the process of ceasing the operations of or divesting several underperformed hospitals and clinics, and expects the process to be completed by the end of this year. At the same time, the Company will continue to focus on renovating its existing flagship hospitals. The Company plans to focus on the core regional market, i.e. the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze Delta Area, and will look to establish more flagship and satellite hospitals in the region.

 

The Company has strategically shifted its focus from rapid national expansion, to a more focused, stable and sustainable growth in terms of revenue and profitability. The Company aims to achieve organic growth through the renovation of existing flagship hospitals and investments in synergistic clinics. Currently, it expects that three satellite clinics will commence operations around the end of this year. Riding on the vibrant development of the aesthetic medical market in the PRC, together with AIH’s extensive experience in the field, the Company believes that it will be able to increase its market penetration, and seize market opportunities from the expanding market.

 

Conference Call Information

 

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time (9:00 pm Beijing Time) on November 16, 2021. Dial-in details for the conference call are as follows:

 

Date: November 16, 2021
Time: 8:00 AM Eastern Time
United States Toll Free: +1-833-239-5575
Canada Toll Free: +1-855-402-0729
Mainland China Toll Free: +86-4008-206895
Hong Kong Toll Free: +852-800-906613
International: +65-6780-1201
Conference ID 6080963

 

Please dial in at least 15 minutes before the commencement of the call to ensure timely participation.

 

An audio replay of the conference call will be available two hours after the conclusion of the call until November 24, 2021.

 

Dial-in numbers for the reply are as follows:

 

United States: +1-855-452-5696
International: +61-2-8199-0299
Replay Access Code: 6080963

 

A live and archived webcast of the call will also be available on the Company's investor relations website at https://ir.aihgroup.net/.

 

About Aesthetic Medical International Holdings Group Limited

 

AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services in China. AIH operates through treatment centers that spread across major cities in mainland China, and also has presence in Hong Kong and Singapore. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic service offerings, including surgical aesthetic treatments, non-surgical aesthetic treatments, and general medical services and other aesthetic services. According to certain third-party industry consultant, AIH was the third-largest private aesthetic medical services provider in China in terms of revenue in 2018. For more information regarding the Company, please visit: http://ir.aihgroup.net/.

 

 

 

 

Safe Harbor Statement

 

This press release contains “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These risks and uncertainties and others that relate to the Company’s business and financial condition are detailed from time to time in the Company’s SEC filings, and could cause the actual results to differ materially from those contained in any forward-looking statement. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements, except as required under applicable law.

 

Investor Relations Contacts

 

For investor and media inquiries, please contact:

 

Aesthetic Medical International Holdings Group Limited

Email: ir@pengai.com.cn

 

DLK Advisory Limited

Tel: +852 2857 7101

Email: ir@dlkadvisory.com

 

 

 

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   December 31,
2020		   June 30,
2021		   June 30,
2021		 
   RMB’000   RMB’000   US$’000 
       (Unaudited)   (Unaudited) 
ASSETS               
Non-current assets               
Property, plant and equipment   531,941    394,545    61,107 
Intangible assets   208,429    60,792    9,415 
Investments accounted for using the equity method   8,330    9,154    1,418 
Prepayments and deposits   51,850    37,832    5,860 
Deferred income tax assets   31,372    14,792    2,291 
             
    831,922    517,115    80,091 
                
Current assets               
Inventories   33,336    35,497    5,498 
Trade receivables   14,324    9,982    1,546 
Other receivables, deposits and prepayments   98,715    55,951    8,664 
Amounts due from related parties   6,693    6,609    1,024 
Restricted cash   8,712    811    126 
Cash and cash equivalents   44,384    47,247    7,318 
             
    206,164    156,097    24,176 
                
Total assets   1,038,086    673,212    104,267 
                
EQUITY AND LIABILITIES               
Equity attributable to owners of the Company               
Share capital   469    469    73 
Treasury shares   (2,023)   (2,023)   (313)
Accumulated losses   (477,905)   (743,122)   (115,096)
Other reserves   870,355    890,946    137,990 
             
    390,896    146,270    22,654 
Non-controlling interests   34,840    (45,302)   (7,016)
             
Total equity/(deficit)   425,736    100,968    15,638 

 

 

 

 

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   December 31,
2020		   June 30,
2021		   June 30,
2021		 
   RMB’000   RMB’000   US$’000 
       (Unaudited)   (Unaudited) 
LIABILITIES               
Non-current liabilities               
Borrowings   75,931    44,119    6,833 
Lease liabilities   178,983    156,741    24,276 
Convertible notes   34,190    36,085    5,589 
Deferred income tax liabilities   13,377    2,709    420 
Contingent consideration payable   8,181    8,607    1,333 
    310,662    248,261    38,451 
                
LIABILITIES               
Current liabilities               
Trade payables   33,654    37,350    5,785 
Accruals, other payables and provisions   68,783    76,288    11,814 
Contingent consideration and consideration payable   4,512    3,889    602 
Amounts due to related parties   1,224    2,315    359 
Contract liabilities   8,639    6,605    1,023 
Borrowings   135,814    150,340    23,285 
Lease liabilities   35,868    36,568    5,664 
Current income tax liabilities   13,194    10,628    1,646 
    301,688    323,983    50,178 
                
Total liabilities   612,350    572,244    88,629 
                
Total equity and liabilities   1,038,086    673,212    104,267 

 

 

 

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

   Three months ended June 30,   Six months ended June 30, 
   2020   2021   2021   2020   2021   2021 
   RMB’000   RMB’000   US$’000   RMB’000   RMB’000   US$’000 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Revenue   166,723    223,965    34,688    257,677    434,474    67,291 
Cost of sales and services rendered   (71,487)   (90,321)   (13,989)   (127,585)   (178,694)   (27,676)
                               
Gross profit   95,236    133,644    20,699    130,092    255,780    39,615 
Selling expenses   (92,474)   (112,313)   (17,395)   (170,531)   (206,287)   (31,950)
General and administrative expenses   (56,883)   (44,835)   (6,944)   (107,776)   (86,917)   (13,462)
Finance costs, net   (4,937)   (5,007)   (775)   (10,061)   (10,593)   (1,641)
Other (losses)/gains, net   (2,180)   1,280    198    (983)   1,457    226 
Fair value loss of convertible note   -    (1,196)   (185)   -    (2,266)   (351)
Impairment of goodwill   -    (111,561)   (17,279)   -    (111,561)   (17,279)
Impairment of intangible asset   -    (43,723)   (6,772)   -    (43,723)   (6,772)
Impairment of property, plant and equipment   -    (139,818)   (21,655)   -    (139,818)   (21,655)
Fair value gain of contingent consideration payable   -    -    -    -    1,523    236 
Share of losses of investments accounted for using the equity method   (548)   (37)   (6)   (929)   (76)   (12)
                               
Loss before income tax   (61,786)   (323,566)   (50,114)   (160,188)   (342,481)   (53,045)
Income tax (expense)/credit   (2,607)   (886)   (137)   12,680    (2,234)   (345)
                               
Loss for the period   (64,393)   (324,452)   (50,251)   (147,508)   (344,715)   (53,390)
                               
Items that may be subsequently reclassified to profit or loss                              
Currency translation differences   (173)   (23)   (4)   442    68    11 
                               
Total other comprehensive (loss)/income for the period, net of tax   (173)   (23)   (4)   442    68    11 
                               
Total comprehensive loss for the period   (64,566)   (324,475)   (50,255)   (147,066)   (344,647)   (53,379)
                               
Loss attributable to:                              
Owners of the Company   (61,555)   (246,824)   (38,228)   (140,655)   (265,217)   (41,077)
Non-controlling interests   (2,838)   (77,628)   (12,023)   (6,853)   (79,498)   (12,313)
                               
Loss for the period   (64,393)   (324,452)   (50,251)   (147,508)   (344,715)   (53,390)
                               
Earnings per share for loss attributable to owners of the company (in RMB per share)                              
—Basic   (0.95)   (3.58)   (0.55)   (2.17)   (3.92)   (0.61)
—Diluted   (0.95)   (3.58)   (0.55)   (2.17)   (3.92)   (0.61)
Total comprehensive loss attributable to:                            - 
Owners of the Company   (61,728)   (246,847)   (38,232)   (140,213)   (265,149)   (41,066)
Non-controlling interests   (2,838)   (77,628)   (12,023)   (6,853)   (79,498)   (12,313)
                               
    (64,566)   (324,475)   (50,255)   (147,066)   (344,647)   (53,379)

 

 

 

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

RECONCILIATIONS OF IFRS AND NON-IFRS RESULTS

 

EBITDA and Adjusted EBITDA  For the Three Months Ended
June 30,		   For the Six Months Ended
June 30,		 
   2020   2021   2021   2020   2021   2021 
   RMB’000   RMB’000   US$’000   RMB’000   RMB’000   US$’000 
Loss before income tax for the period   (61,786)   (323,566)   (50,114)   (160,188)   (342,481)   (53,045)
Adjustments                              
+ Finance costs   5,129    5,021    778    10,353    10,706    1,658 
+ Amortisation and depreciation   22,326    23,668    3,666    44,940    45,079    6,982 
EBITDA   (34,331)   (294,877)   (45,670)   (104,895)   (286,696)   (44,405)
Adjustments                              
+ Fair value losses of convertible note   -    1,196    185    -    2,266    351 
+ Fair value gains of contingent consideration payable   -    -    -    -    (1,523)   (236)
+ ESOP expense   21,019    9,473    1,467    42,577    20,523    3,179 
+ Professional fees   10,622    3,431    531    13,947    5,123    793 
+ Loss on disposal of subsidiaries   729    385    60    729    385    60 
+ Loss on disposal of associate   927    -    -    927    -    - 
+ Impairment of goodwill   -    111,561    17,279    -    111,561    17,279 
+ Impairment of IA   -    43,723    6,772    -    43,723    6,772 
+ Impairment of PPE   -    139,818    21,655    -    139,818    21,655 
Adjusted EBITDA   (1,034)   14,710    2,279    (46,715)   35,180    5,448 

 

Adjusted loss  For the Three Months Ended
June 30,		   For the Six Months Ended
June 30,		 
   2020   2021   2021   2020   2021   2021 
   RMB’000   RMB’000   US$’000   RMB’000   RMB’000   US$’000 
Loss for the period   (64,393)   (324,452)   (50,251)   (147,508)   (344,716)   (53,390)
Adjustments                              
+ Professional fees   10,622    3,431    531    13,947    5,123    793 
+ Share based payment   21,019    9,473    1,467    42,577    20,523    3,179 
+ Fair value losses of convertible note   -    1,196    185    -    2,266    351 
+ Fair value gains of contingent consideration payable   -    -    -    -    (1,523)   (236)
+ Loss on disposal of subsidiaries   729    385    60    729    385    60 
+ Loss on disposal of associate   927    -    -    927    -    - 
+ Impairment of goodwill   -    111,561    17,279    -    111,561    17,279 
+ Impairment of IA   -    43,723    6,772    -    43,723    6,772 
+ Impairment of PPE   -    139,818    21,655    -    139,818    21,655 
Adjusted loss   (31,096)   (14,865)   (2,302)   (89,328)   (22,840)   (3,537)