Aesthetic Medical International Holdings Group Ltd (AIH) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Aesthetic Medical International first quarter 2023 earnings conference call. During today's presentation, all parties will be in a listen-only mode. As a reminder, today's conference call is being recorded. On the call today from Aesthetic Medical International are Mr. Toby Wu, Chief Financial Officer; Mr. Derrick Shi, Investor Relations' Associate Director. Mr. Derrick Shi Investor Relations will review our business operations and company highlights followed by Mr. Toby Wu who will introduce the company's financial performance. They all be available to answer your questions during the Q&A session that follows.

早上好，女士們，先生們。感謝您的耐心等待，歡迎參加醫美國際 2023 年第一季度財報電話會議。在今天的演示過程中，各方都將處於僅聽模式。提醒一下，今天的電話會議正在錄音。今天參加醫美國際電話會議的是首席財務官 Toby Wu 先生； Derrick Shi先生，投資者關係副總監。投資者關係部 Derrick Shi 先生將回顧我們的業務運營和公司亮點，隨後 Toby Wu 先生將介紹公司的財務業績。他們都可以在接下來的問答環節回答您的問題。

Before we get started, I want 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 rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make during the call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by applicable law.

在我們開始之前，我想提醒您，討論的一些信息將包括有關未來事件和我們未來財務業績的前瞻性陳述。其中包括有關我們未來預期、財務預測以及我們的計劃和前景的聲明。實際結果可能與此類聲明中提出的結果存在重大差異。要討論這些風險和不確定性，您應該查看該公司向 SEC 提交的文件，其中包括今天的新聞稿。您不應依賴我們的前瞻性陳述作為對未來事件的預測。我們在電話會議期間做出的所有前瞻性陳述均基於截至目前的假設和信念，除非適用法律要求，否則我們不承擔更新這些陳述的義務。

Our discussion today will include non-IFRS financial measures, including EBITDA, adjusted loss and adjusted EBITDA. You should not consider EBITDA, adjusted EBITDA, adjusted loss as a substitute or superior to net income performance or net income prepared in accordance with IFRS. Furthermore, because non-IFRS 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 in its entirety and not rely on a single financial measure. At this time, I'd like to turn the call over to Mr. Derrick Shi, Investor Relations, Associate Director of Aesthetic Medical International. Mr. Derrick Shi, please go ahead.

我們今天的討論將包括非國際財務報告準則的財務指標，包括 EBITDA、調整後損失和調整後 EBITDA。您不應將 EBITDA、調整後 EBITDA、調整後損失視為淨利潤業績或根據 IFRS 編制的淨利潤的替代品或優於它們。此外，由於非國際財務報告準則衡量標準並非根據國際財務報告準則制定，因此計算結果很容易發生變化，並且可能無法與其他公司提出的其他類似標題的衡量標准進行比較。我們鼓勵您全面審查公司的財務信息，而不是依賴單一的財務指標。現在我想把電話轉給醫美國際投資者關係副總監Derrick Shi先生。 Derrick Shi先生，請講。

Thank you, operator, and everyone for joining the call today. We are excited to share our first quarter 2023 earnings and operational highlights with our stakeholders. In the first month, a majority of our treatment centers were temporarily closed due to the widespread infection of COVID-19, resulting in a total revenue of RMB148.9 million, representing a decrease of 7.3% from RMB160.7 million in the first quarter of 2022. However, we were able to recover and achieve a net profit of RMB182,000 rebounded from a loss of RMB2.5 million in the first quarter of 2022. As of the date of this report, we successfully divested two underperforming treatment centers. This was part of our ongoing strategy to optimize our portfolio and ensure sustainable growth. As a result of our divestment efforts, SG&A, which means selling, general and administration expense as a percentage of revenue, decreased by 7.4 percentage points compared to the previous year. This is a positive indication that our strategy is working and that we are on track to achieving our goals.

感謝接線員和大家今天加入通話。我們很高興與利益相關者分享 2023 年第一季度的收益和運營亮點。第一個月，由於COVID-19的廣泛感染，我們的大部分治療中心暫時關閉，導致總收入為人民幣1.489億元，較第一季度的人民幣1.607億元下降7.3% 2022年第一季度，我們實現了淨利潤250萬元人民幣的虧損，實現淨利潤18.2萬元人民幣。截至本報告日期，我們成功剝離了兩家表現不佳的治療中心。這是我們優化投資組合併確保可持續增長的持續戰略的一部分。由於我們的撤資努力，SG&A（銷售、一般和管理費用佔收入的百分比）比上一年下降了 7.4 個百分點。這是一個積極的跡象，表明我們的戰略正在發揮作用，並且我們正在實現我們的目標。

In April 2023, Shenzhen Guangdong-Hong Hospital initiated the renovation of its department of energy base equipment and the exterior [package target]. This redevelopment is aimed at providing a more than and refresh look to the beauty. Their innovation project was launched after the successful renovation of Shenzhen Pengai, another flagship hospital, and it is expected to be completed by June.

2023年4月，深圳粵宏醫院啟動能源基地設備科及外觀改造【一攬子目標】。這次重建的目的是為美麗提供更多和煥然一新的外觀。他們的創新項目是繼另一家旗艦醫院深圳鵬愛醫院成功改造後啟動的，預計將於6月完工。

In May 2023, the share purchase agreement is closed, in July 2022 is expected to be closed. This agreement was entered into by and among the company, Australia Wanda International Company Limited, Seefar Global Holdings Limited, Jubilee Set Investments Limited, Dr. Zhou Pengwu and Ms. Ding Wenting.

股份購買協議將於2023年5月完成，預計於2022年7月完成。該協議由本公司、澳大利亞萬達國際有限公司、Seefar Global Holdings Limited、Jubilee Set Investments Limited、周鵬武博士及丁文婷女士共同簽署。

Upon the closing of the agreement, Peak Asia Investment Holdings Limited has undertaken to convert its convertible note outstanding principal of months of USD5 million, as well as interest into the company's ordinary shares at a price of RMB4.203 per share, which will further strengthen our financial position. To protect our customers and employees from the second wave of COVID-19 and influenza A, we strengthened our medical management personnel, implemented new safety protocols and adapted to the new working conditions to ensure that our customers continue to receive safe and stable services. As the economy begins to recover, we believe that the cost consumers, we will be more willing to invest in self-care and personal appearances as their financial situations improve.

協議完成後，Peak Asia Investment Holdings Limited 承諾將其 500 萬美元未償還可轉換票據本金以及利息以每股人民幣 4.203 元的價格轉換為公司普通股，這將進一步增強公司的實力。我們的財務狀況。為了保護我們的客戶和員工免受第二波COVID-19和甲型流感的影響，我們加強了醫療管理人員，實施了新的安全協議並適應新的工作條件，以確保我們的客戶繼續獲得安全穩定的服務。隨著經濟開始復蘇，我們相信，隨著消費者財務狀況的改善，我們將更願意投資於自我護理和個人形象。

With this in mind, we are optimistic about the future of the Aesthetic Medical Industry and our performances in 2023. Thank you again for all your support and attention. And I would like now to turn the call to our CFO, Toby Wu to introduce the financials and operations for the first quarter of 2023. Toby, please go ahead.

考慮到這一點，我們對美容醫療行業的未來和2023年的表現感到樂觀。再次感謝大家的支持和關注。現在我想請我們的首席財務官 Toby Wu 介紹 2023 年第一季度的財務和運營情況。Toby，請繼續。

Thank you, Derrick, and hello, everyone. I will summarize some of the key unaudited financial results and operations result for the first quarter of 2023 and at March 31. In the first quarter of 2023, total revenue decreased by 7.3% year on year to RMP148.9 million, primarily attributable to the divestment of underperforming assets in 2022 as well as the temporary closing of our treatment center in January 2023.

謝謝你，德里克，大家好。我將總結 2023 年第一季度和截至 3 月 31 日的一些關鍵未經審計財務業績和運營業績。2023 年第一季度，總收入同比下降 7.3%，至 1.489 億馬幣，主要歸因於2022 年剝離表現不佳的資產，並於 2023 年 1 月暫時關閉我們的治療中心。

Gross profit was the RMB72.6 million, representing a decrease of 18.4% year on year, gross profit margin decreased 6.6 percentage points to 48.8%. The decrease was attributable to the temporary cause of shipments center in January 2023.

毛利為人民幣7,260萬元，同比下降18.4%，毛利率下降6.6個百分點至48.8%。減少的原因是2023年1月發貨中心臨時原因。

Selling expenses were RMB42.4 million, representing 28.5% of the company's total revenue in the first quarter of 2023. Selling expenses as of revenue decreased by 4.4 percentage points on year on year. But the reduction in selling expenses and its contribution was mainly a result of the company's strategic reduction on the online advertising budget as well as the divestment of underperforming assets in the 2022.

銷售費用為人民幣4240萬元，占公司2023年第一季度總收入的28.5%。銷售費用佔收入同比下降4.4個百分點。但銷售費用及其貢獻的減少主要是由於公司戰略性削減網絡廣告預算以及2022年業績不佳資產的剝離所致。

General and admin expenses was RMB24.7 million, representing a decrease of 21.6%. And the general and admin expenses as of revenue decreased by 3 percentage points year on year, primarily due to the divestment of a underperforming asset in 2022. As a result of [ongoing], the company recorded profit of RMB0.2 million for the first quarter of 2023. [Rebound] from a loss of RMB2.6 million in the first quarter of 2022. Basic and diluted loss per share were both earning RMB0.004 in the first quarter of 2023 compared with the basic and diluted loss per share of RMB0.05 in the first quarter of 2022.

管理費用為人民幣2,470萬元，下降21.6%。截至收入的一般費用和管理費用同比下降3個百分點，主要是由於2022年剝離了一項表現不佳的資產。因此，公司首次錄得利潤20萬元人民幣。 2023 年第一季度的虧損為 260 萬元人民幣。[反彈]2023 年第一季度每股基本虧損和稀釋虧損均盈利 0.004 元人民幣，而 2023 年第一季度每股基本虧損和稀釋虧損為 0.004 元。 2022年第一季度0.05元。

EBITDA for the first quarter of 2023 was a profit of RMB19.9 million compared with the RMB20 million in the first quarter of 2022. Adjusted EBITDA for the quarter of 2023 was RMB23.7 million compared with RMB26.9 million in the first quarter of 2022.

2023 年第一季度的 EBITDA 為人民幣 1,990 萬元，而 2022 年第一季度為人民幣 2,000 萬元。2023 年第一季度調整後的 EBITDA 為人民幣 2,370 萬元，而 2022 年第一季度的調整後 EBITDA 為人民幣 2,690 萬元。 2022 年。

Adjusted profit after tax for the first quarter of our 2003 was RMB4 million compared with the RMB4.3 million in the first quarter of 2022. In terms of our operating performance, as a result of divestment of shipments and company recorded a decrease of 8.7% year on year in the total active customers. Total non-surgical Aesthetic Medical shipment as a percentage of the total number of our Aesthetic shipments decreased by 8.4 percentage points.

2003年第一季度調整後稅後利潤為人民幣400萬元，而2022年第一季度調整後稅後利潤為人民幣430萬元。就我們的經營業績而言，由於出貨量和公司剝離，業績下降了8.7%活躍客戶總數同比增長。非手術美容醫療出貨總量占我們美容出貨總數的百分比下降了 8.4 個百分點。

Average spending per customer increased by 1.4% from RMB2,967 in the first half of 2022 to RNB3,009 in the first half of 2003, primary derived by the strategic decision to remove most of the lower price segments promotions from our service offering.

每位客戶的平均支出從 2022 年上半年的 2,967 元人民幣增加到 2003 年上半年的 3,009 元人民幣，增長了 1.4%，這主要是由於從我們的服務中取消大部分較低價格段促銷活動的戰略決策所致。

Looking ahead, we will continue to implement [abos] mentioned strategy. We are dedicated to providing [at a] and quality service to our customer and [diverting] substantiable long-term growth.

展望未來，我們將繼續實施[abos]提到的戰略。我們致力於為客戶提供[at]優質服務並[帶來]實質性的長期增長。

This concludes our preparation remarks. Thank you for joining us on today's call. We are now open to the call -- to questions. Operator, please go ahead.

我們的準備發言到此結束。感謝您參加今天的電話會議。我們現在願意接受電話和提問。接線員，請繼續。

Yes, thank you. (Operator Instructions).

是的，謝謝。 （操作員說明）。

All right. As there are no questions right now, I would like to return the floor to Mr. Derrick Shi for any closing comments.

好的。由於現在沒有問題，我想請 Derrick Shi 先生髮表總結意見。

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 ir@pengai.com.cn. We appreciate your interest and support in Aesthetic Medical International and look forward to speaking with you again next time. Operator, please go ahead.

好的。謝謝你，接線員。我謹代表我們整個管理團隊，再次感謝大家今天加入我們。如果您有任何疑問，請通過電子郵件聯繫我們：ir@pengai.com.cn。我們感謝您對國際醫學美容的關注和支持，並期待下次與您再次交談。接線員，請繼續。

Thank you, everyone, again for attending Aesthetic Medical International's first quarter of 2023 earnings conference call. This concludes the call today, and we thank you for listening in. Goodbye.

再次感謝大家參加醫美國際2023年第一季度財報電話會議。今天的電話會議到此結束，感謝您的收聽。再見。