Aesthetic Medical International Holdings Group Limited Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) reported its financial results for Q4 and fiscal year 2020. Total revenue increased by 52.3% to RMB362.6 million in Q4, but annual revenue saw a modest rise of 3.7% to RMB901.6 million. However, the company faced a net loss of RMB246.9 million for 2020, a substantial decline from a profit of RMB138.3 million in 2019. Gross profit decreased by 8.1%, with a gross margin drop to 60.4%. Despite ongoing pandemic challenges, management aims to optimize services and strengthen the medical team for future growth.
- Q4 revenue rose by 52.3% to RMB362.6 million.
- The company aims to optimize and upgrade services in 2021.
- Net loss for 2020 was RMB246.9 million, down from a profit of RMB138.3 million in 2019.
- Gross profit decreased by 8.1% to RMB544.8 million.
Shenzhen, China, April 20, 2021 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (the “Company” or Nasdaq: AIH), a leading provider of aesthetic medical services in China, today announces its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.
Dr. Zhou Pengwu, the Chairman and CEO of the Company, commented, “We have ended a challenging year and achieved the expected operating results with our efforts. 1 In 2020, we actively took initiatives to contain the COVID-19 pandemic and carried out aesthetic medical services on the premise of ensuring the safety of our customers and employees. We insist on meeting our customers' aesthetic medical needs with high-standard medical technology, a strong medical team and high-quality services and building trust with our customers.
Dr. Zhou continued, “In 2021, we will continue to promote the development of aesthetic medical services, strengthen our medical team, and focus on the research and development of aesthetic medical technology to meet the different needs of an expanding customer base. ‘Safety and beauty’ has always been our purpose, and this purpose will continue to lead us in the right direction of aesthetic medical industry. We will continue to leverage the advantages of traditional plastic surgery with our accumulated industry experience for many years, seize the huge opportunities of aesthetic medical at present, and realize the optimization and upgrade of products and services with technology and services as the core. There are still uncertainties about the COVID-19 pandemic, but we have confidence and will do our best to overcome difficulties. We will continue to provide customers with high-quality services, as well as bring long-term value to our shareholders and investors.”
1refer to Note 1 to the Fourth Quarter 2019 and 2020 Unaudited Financial Results
Fourth Quarter 2020 Unaudited Financial Highlights2
- Total revenue was RMB362.6 million (US
$55.6 million ), an increase of52.3% from RMB238.1 million in the fourth quarter of 2019. - Gross profit was RMB235.0 million (US
$36.0 million ), an increase of44.9% from RMB162.2 million in the fourth quarter of 2019. - Gross margin was
64.8% , a decrease of 3.3 percentage points from68.1% in the fourth quarter of 2019. - Loss for the period was RMB81.7 million (US
$12.5 million ), compared with a loss of RMB60.6 million in the fourth quarter of 2019. - EBITDA1 for the period was a loss of RMB25.9 million (US
$4.0 million ), a decrease of26.4% from a loss of RMB35.2 million in the fourth quarter of 2019. - Adjusted profit1 for the period was a loss of RMB28.5 million (US
$4.4 million ), a decrease of507.1% from a profit of RMB7.0 million in the fourth quarter of 2019. - Adjusted EBITDA1 for the period was RMB27.3 million (US
$4.2 million ), a decrease of14.2% from a profit of RMB31.8 million in the fourth quarter of 2019. - Basic loss per share was RMB1.18 (US
$0.18) , compared with basic loss per share of RMB0.99 in the fourth quarter of 2019. Diluted loss per share was RMB1.18 (US$0.18) , compared with diluted loss per share of RMB0.99 in the fourth quarter of 2019.
1 EBITDA, adjusted EBITDA and adjusted profit are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard 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.
2 Refer to Note 1 to the Fourth Quarter 2019 and 2020 Unaudited Financial Results
Fiscal Year 2020 Unaudited Financial Highlights2
- Total revenue was RMB901.6 million (US
$138.2 million ), an increase of3.7% from RMB869.1 million in the same period of 2019. - Gross profit was RMB544.8 million (US
$83.5 million ), a decrease of8.1% from RMB593.1 million in the same period of 2019. - Gross margin was
60.4% , a decrease of 7.8 percentage points from68.2% in the same period of 2019. - Loss for the period was RMB246.9 million (US
$37.8 million ), compared with a profit of RMB138.3 million in the same period of 2019. - EBITDA1 for the period was a loss of RMB123.9 million (US
$19.0 million ), a decrease of147.6% from a profit of RMB260.5 million in the same period of 2019. - Adjusted profit1 for the period was a loss of RMB111.0 million (US
$17.0 million ), a decrease of260.6% from a profit of RMB69.1 million in the same period of 2019. - Adjusted EBITDA1 for the period was RMB12.0 million (US
$1.8 million ), a decrease of93.6% from a profit of RMB187.1 million in the same period of 2019. - Basic loss per share was RMB3.61 (US
$0.55) , compared with basic earnings per share of RMB2.96 in the same period of 2019. Diluted loss per share was RMB3.61 (US$0.55) , compared with diluted loss per share of RMB0.78 in the same period of 2019.
1 EBITDA, adjusted EBITDA and adjusted profit are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard 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.
2 Refer to Note 1 to the Fourth Quarter 2019 and 2020 Unaudited Financial Results
Fourth Quarter 2019 and 2020 Operational Highlights
| For the Three Months Ended December 31, | ||||||||||
| 2019 | 2020* | % Change | ||||||||
| Number | % of Total | Number | % of Total | Number | ||||||
| New Customers | 38,714 | 28,067 | - | |||||||
| Repeat Customers | 45,131 | 47,610 | ||||||||
| Total Active Customers | 83,845 | 75,677 | - | |||||||
* Excluding the one-off impact from Hanfei, please refer to Note 1 to the Fourth Quarter 2019 and 2020 Unaudited Financial Results.
- In the fourth quarter of 2020, repeat customers accounted for
62.9% of the active customer base. - The total number of active customers was 75,677, representing a decrease of
9.7% from 83,845 in the fourth quarter of 2019.
Fiscal Year 2019 and 2020 Operational Highlights
| For the Year Ended December 31, | ||||||||||
| 2019 | 2020* | % Change | ||||||||
| Number | % of Total | Number | % of Total | Number | ||||||
| New Customers | 117,974 | 95,724 | - | |||||||
| Repeat Customers | 137,421 | 146,834 | ||||||||
| Total Active Customers | 255,395 | 242,558 | - | |||||||
* Excluding the one-off impact from Hanfei, please refer to Note 1 to the Fourth Quarter 2019 and 2020 Unaudited Financial Results.
- In fiscal year 2020, repeat customers accounted for
60.5% of the active customer base. - The total number of active customers was 242,558, representing a decrease of
5.0% from 255,395 in the same period of 2019.
Fourth Quarter 2019 and 2020 Unaudited Financial Results
| For the Three Months Ended December 31, | ||||||
| (RMB millions, except per share data and percentages) | 2019 | 20201 | % Change | |||
| Revenue | 238.1 | 362.6 | ||||
| Non-surgical aesthetic medical services | 143.7 | 183.8 | ||||
| Minimally invasive aesthetic treatments | 68.9 | 95.3 | ||||
| Energy-based treatments | 74.8 | 88.5 | ||||
| Surgical aesthetic medical services | 80.9 | 161.7 | ||||
| General healthcare services and other aesthetic medical services | 13.5 | 17.1 | | |||
| Gross profit | 162.2 | 235.0 | ||||
| Gross margin | -3.3 pp2 | |||||
| Profit/(loss) for the period | (60.6) | (81.7) | - | |||
| Profit/(loss) margin | - | - | 3.0pp2 | |||
| EBITDA3 | (35.2) | (25.9) | ||||
| Adjusted EBITDA3 | 31.8 | 27.3 | - | |||
| Adjusted EBITDA margin | -5.9pp2 | |||||
| Adjusted profit3 | 7.0 | (28.5) | - | |||
| Adjusted profit margin | - | -10.8pp2 | ||||
| Basic profit/(loss) per share | (0.99) | (1.18) | - | |||
| Diluted profit/(loss) per share | (0.99) | (1.18) | - | |||
Notes:
1 The Company entered into an agreement to purchase a
2 pp represents percentage points.
3 Refer to “Non-IFRS Financial Measures” below.
Revenues
Total revenue was RMB362.6 million (US
Cost of sales and services rendered
Cost of sales and services rendered was RMB127.6 million (US
Gross profit
As a result of the foregoing, gross profit was RMB235.0 million (US
Gross profit of non-surgical aesthetic medical services was RMB118.2 million (US
Gross profit of minimally invasive aesthetic treatments was RMB62.7 million (US
Gross profit of energy-based treatments was RMB55.5 million (US
Gross profit of surgical aesthetic medical services was RMB107.9 million (US
Gross profit of general healthcare services and other aesthetic medical services was RMB8.9 million (US
Selling expenses
Selling expenses were RMB200.1 million (US
General and administrative expenses
General and administrative expenses were RMB61.8 million (US
Impairment of non-current assets
We recognized impairment of non-current assets of RMB33.0 million in the fourth quarter of 2020, representing a significant increase from RMB1.4 million in the fourth quarter of 2019. During the fourth quarter of 2020, the Company decided to strategically focus on treatment centers in east China, south China and southwest China regions and devote much less resources to treatment centers in other regions of China, we performed asset impairment assessment and recognized impairment of goodwill, trade name and property, plant and equipment with respect to certain treatment centers in other regions of China.
Profit/(loss) for the period
As a result of the foregoing, the Company recorded a loss for the fourth quarter of 2020 of RMB81.7 million (US
Certain Non-IFRS items
EBITDA for the fourth quarter of 2020 was a loss of RMB25.9 million (US
Adjusted profit for the fourth quarter of 2020 was a loss of RMB28.5 million (US
Adjusted EBITDA for the fourth quarter of 2020 was RMB27.3 million (US
EBITDA, adjusted EBITDA and adjusted profit are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard 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.
Fourth Quarter 2019 and 2020 Operational Results
Repeat customer ratio
Repeat customers, defined as active customers who had previously received at least one procedure from the Company, accounted for
Number of treatments
Without considering the one-off impact from Hanfei, the Company conducted a total of 193,472 treatments, including 25,194 surgical treatments and 146,435 non-surgical treatments, in the fourth quarter of 2020, representing an increase of
Without considering the one-off impact from Hanfei, the Company conducted a total of 557,218 treatments, including 92,922 surgical treatments and 413,235 non-surgical treatments, in 2020, representing an increase of
Fiscal Year 2019 and 2020 Unaudited Financial Results
| For the Year Ended December 31, | ||||||
| (RMB millions, except per share data and percentages) | 2019 | 20201 | % Change | |||
| Revenue | 869.1 | 901.6 | ||||
| Non-surgical aesthetic medical services | 489.6 | 452.7 | - | |||
| Minimally invasive aesthetic treatments | 224.2 | 234.6 | ||||
| Energy-based treatments | 265.4 | 218.1 | - | |||
| Surgical aesthetic medical services | 319.2 | 401.6 | ||||
| General healthcare services and other aesthetic medical services | 60.3 | 47.3 | - | |||
| Gross profit | 593.1 | 544.8 | - | |||
| Gross margin | -7.8 pp2 | |||||
| Profit/(loss) for the period | 138.3 | (246.9) | - | |||
| Profit/(loss) margin | - | -43.3 pp2 | ||||
| EBITDA3 | 260.5 | (123.9) | - | |||
| Adjusted EBITDA3 | 187.1 | 12.0 | - | |||
| Adjusted EBITDA margin | -20.2pp2 | |||||
| Adjusted profit/(loss)3 | 69.1 | (111.0) | - | |||
| Adjusted profit/(loss) margin | - | -20.3 pp2 | ||||
| Basic profit/(loss) per share | 2.96 | (3.61) | - | |||
| Diluted profit/(loss) per share | (0.78) | (3.61) | - | |||
Notes:
1 See note 1 to Fourth Quarter 2019 and 2020 Unaudited Financial Results
2 pp represents percentage points
3 Refer to below “Non-IFRS Financial Measures”
Revenues
Total revenue was RMB901.6 million (US
Cost of sales and services rendered
Cost of sales and services rendered was RMB356.8 million (US
Gross profit
As a result of the foregoing, gross profit was RMB544.8 million (US
Gross profit of non-surgical aesthetic medical services was RMB269.0 million (US
Gross profit of minimally invasive aesthetic treatments was RMB145.8 million (US
Gross profit of energy-based treatments was RMB123.2 million (US
Gross profit of surgical aesthetic medical services was RMB253.1 million (US
Gross profit of general healthcare services and other aesthetic medical services was RMB22.7 million (US
Selling expenses
Selling expenses were RMB510.6 million (US
General and administrative expenses
General and administrative expenses were RMB230.6 million (US
Impairment of non-current assets
We recognized impairment of non-current assets of RMB33.0 million in 2020, representing a significant increase from RMB1.4 million in 2019. During the fourth quarter of 2020, the Company decided to strategically focus on treatment centers in east China, south China and southwest China regions and devote much less resources to treatment centers in other regions of China, we performed asset impairment assessment and recognized impairment of goodwill, tradename and property, plant and equipment with respect to certain treatment centers in other regions of China.
Profit/(loss) for the period
As a result of the foregoing, the Company recorded a loss of RMB246.9 million (US
Certain Non-IFRS items
EBITDA for 2020 was a loss of RMB123.9 million (US
Adjusted profit for fiscal year 2020 was a loss of RMB111.0 million (US
Adjusted EBITDA for fiscal year 2020 was RMB12.0 million (US
EBITDA, Adjusted EBITDA and Adjusted profit are not prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard 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 amounted to RMB44.4 million (US
Certain cash flow items
Net cash used in operating activities was RMB0.8 million (US
Net cash used in investing activities was RMB127.4 million (US
Net cash generated from financing activities was RMB17.7 million (US
Liquidity and capital resources
The Company had net current liabilities of RMB96 million as of December 31, 2020, which included current borrowings of RMB136 million. The Company had operating loss of RMB247 million and net operating cash outflows of RMB0.8 million for the year then ended December 31, 2020. During the year ended December 31, 2020, the Company completed four acquisitions, which will result in cash outflow of approximately RMB5 million for the settlement of acquisition consideration payable in the next 12 months after the date of this release. During the first quarter of 2020, due to the outbreak of COVID-19, the Company temporarily shut down its aesthetic treatment centers. This caused material and adverse impacts on its revenue and cash flow for the first half of 2020 with potential continuing impacts on subsequent periods. After considering the gradual recovery of business post the COVID-19 outbreak, its expected cash flow from future operations taking into consideration of business growth, funds from bank borrowings and other sources of financing, the Company concluded that it has sufficient financial resources to meet its financial obligations as and when they fall due and continue its operation in the next 12 months, subject to any uncertainty of the development of COVID-19.
2019 and 2020 Operational Results
Repeat customer ratio
Repeat customers, defined as active customers who had previously received at least one procedure from the Company, accounted for
Number of treatments
Without considering the one-off impact from Hanfei, the Company conducted a total of 557,218 treatments, including 92,922 surgical treatments and 413,235 non-surgical treatments, in 2020, representing an increase of
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 RMB6.5250 to US
Non-IFRS Financial Measures
EBITDA represents our profit before income tax, adjusted to exclude finance costs and amortization and depreciation. Adjusted EBITDA represents EBITDA, adjusted to exclude fair value gain of convertible redeemable preferred shares, fair value loss of convertible note, fair value gains of derivative financial instruments, fair value gain of exchangeable note liabilities, share-based compensation expense, other one-off expenses including professional fees in relation to our financing activities but are not capitalized, IT-related expenses paid to a related party pursuant to a service agreement, which was expired in June 2019, roadshow and marketing expenses incurred for IPO, impairment of non-current assets, loss on disposal of Wuhan Pengai, loss on disposal of subsidiaries, loss on disposal of an associate, donation, and exchange loss.
Adjusted profit represents profit for the period/year, adjusted to exclude fair value gain of convertible redeemable preferred shares, fair value loss of convertible note, fair value gains of derivative financial instruments, fair value gain of exchangeable note liabilities, interest expense on convertible note, share-based compensation expense, other one-off expenses including professional fees in relation to our financing activities but are not capitalized, IT-related expenses paid to a related party pursuant to a service agreement, which was expired in June 2019, roadshow and marketing expenses incurred for IPO, impairment of non-current assets, loss on disposal of Wuhan Pengai, loss on disposal of subsidiaries, loss on disposal of an associate, donation, and exchange loss.
EBITDA, adjusted EBITDA and adjusted profit are non-IFRS financial measures. You should not consider EBITDA, adjusted EBITDA and adjusted profit 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 profit 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 and company to company.
Recent Developments
On July 14, 2020, the Company entered into a share purchase agreement to acquire
On October 13, 2020, the Company announced that its board of directors had approved a share repurchase program, under which the Company was authorized to repurchase in the open market up to US
As of the date of this release, 45,000 ADSs were repurchased with a total consideration of approximately US
In October 2020, the Company entered into agreement to acquire
On February 9, 2021, the Company and Forbes China have jointly released the Chinese Aesthetic Treatment Industry White Paper 2020, the first white paper on the aesthetic treatment industry in China.
Business Outlook
As China gradually recovers from the aftermath of the COVID-19 outbreak, the Company has experienced recovery in its business operations. While the duration of the COVID-19 pandemic and its negative impact to market demand and the Company’s business operations still cannot be conclusively and accurately estimated at this time since there is still uncertainty for possible COVID-19 outbreak in the future, subject to any uncertainty of the development of COVID-19, the Company currently expects that its revenue will gradually recover in the first quarter of 2021. Such expectation reflects the current and preliminary view of the Company’s management team based on the information available at the time, and may be subject to changes. The Company will continue to monitor and evaluate the development of the pandemic, and the resulting financial impact on the Company.
Conference Call Information
The Company’s management will hold an earnings conference call on April 20, 2021, at 8:00 am U.S. Eastern Time (5:00 am Pacific Time/ 8:00 pm Beijing Time). Dial-in details for the earnings conference call are as follows:
| Conference Call | |
| Date: | April 20, 2021 |
| Time: | 8:00 am ET, U.S. |
| International Toll Free: | United States: +1 888-346-8982 Canada: +1 855-669-9657 Mainland China: +86 400-120-1203 Hong Kong: +852 800-905-945 |
| International: | International: +1 412-902-4272 |
| Conference ID: | Aesthetic Medical International Holdings Group Limited |
Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until April 27, 2021. The dial-in for the replay is +1 877-344-7529 within the United States or +1 412-317-0088 internationally. The replay access code is 10153394.
A live and archived webcast of the call will also be available on AIH's website at: https://ir.aihgroup.net/. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software.
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: https://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 Contact
For investor and media inquiries, please contact:
Aesthetic Medical International Holdings Group Limited
Email: ir@pengai.com.cn
Ascent Investor Relations LLC
Ms. Tina Xiao
Tel: (917) 609-0333
Email: tina.xiao@ascent-ir.com
AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2019 | December 31, 2020 | December 31, 2020 | ||||||||||
| RMB’000 | RMB’000 | US$’000 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 519,323 | 531,941 | 81,524 | |||||||||
| Investment properties | 15,373 | - | - | |||||||||
| Intangible assets | 175,417 | 208,429 | 31,943 | |||||||||
| Investments accounted for using the equity method | 10,256 | 8,330 | 1,277 | |||||||||
| Prepayments and deposits | 42,298 | 51,850 | 7,946 | |||||||||
| Deferred income tax assets | 19,774 | 31,372 | 4,808 | |||||||||
| 782,441 | 831,922 | 127,498 | ||||||||||
| Current assets | ||||||||||||
| Inventories | 26,120 | 33,336 | 5,109 | |||||||||
| Trade receivables | 9,705 | 14,324 | 2,195 | |||||||||
| Other receivables, deposits and prepayments | 71,278 | 98,715 | 15,129 | |||||||||
| Amounts due from related parties | 3,101 | 6,693 | 1,026 | |||||||||
| Restricted bank deposits | - | 8,712 | 1,335 | |||||||||
| Cash and cash equivalents | 154,490 | 44,384 | 6,802 | |||||||||
| 264,694 | 206,164 | 31,596 | ||||||||||
| Assets held-for-sale | - | - | - | |||||||||
| 264,694 | 206,164 | 31,596 | ||||||||||
| Total assets | 1,047,135 | 1,038,086 | 159,094 | |||||||||
| EQUITY AND LIABILITIES | ||||||||||||
| Equity attributable to owners of the Company | ||||||||||||
| Share capital | 469 | 469 | 72 | |||||||||
| Treasury shares | (41 | ) | (2,023 | ) | (310 | ) | ||||||
| Accumulated losses | (242,232 | ) | (477,905 | ) | (73,242 | ) | ||||||
| Other reserves | 789,285 | 870,355 | 133,388 | |||||||||
| 547,481 | 390,896 | 59,908 | ||||||||||
| Non-controlling interests | 43,117 | 34,840 | 5,339 | |||||||||
| Total equity | 590,598 | 425,736 | 65,247 | |||||||||
AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2019 | December 31, 2020 | December 31, 2020 | ||||||||||
| RMB’000 | RMB’000 | US$’000 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| LIABILITIES | ||||||||||||
| Non-current liabilities | ||||||||||||
| Borrowings | 12,917 | 75,931 | 11,637 | |||||||||
| Lease liabilities | 165,615 | 178,983 | 27,430 | |||||||||
| Convertible redeemable preferred shares | - | - | - | |||||||||
| Convertible note | - | 34,190 | 5,240 | |||||||||
| Exchangeable note liabilities | - | - | - | |||||||||
| Derivative financial instrument | - | - | - | |||||||||
| Deferred income tax liabilities | 12,703 | 13,377 | 2,050 | |||||||||
| Contingent consideration payable | - | 8,181 | 1,254 | |||||||||
| 191,235 | 310,662 | 47,611 | ||||||||||
| Current liabilities | ||||||||||||
| Trade payables | 17,017 | 33,654 | 5,158 | |||||||||
| Accruals, other payables and provisions | 58,439 | 68,783 | 10,542 | |||||||||
| Contingent consideration and consideration payable | - | 4,512 | 691 | |||||||||
| Amounts due to related parties | 626 | 1,224 | 188 | |||||||||
| Contract liabilities | 5,542 | 8,639 | 1,324 | |||||||||
| Borrowings | 127,470 | 135,814 | 20,814 | |||||||||
| Lease liabilities | 36,266 | 35,868 | 5,497 | |||||||||
| Current income tax liabilities | 19,942 | 13,194 | 2,022 | |||||||||
| 265,302 | 301,688 | 46,236 | ||||||||||
| Liabilities held-for-sale | - | - | - | |||||||||
| 265,302 | 301,688 | 46,236 | ||||||||||
| Total liabilities | 456,537 | 612,350 | 93,847 | |||||||||
| Total equity and liabilities | 1,047,135 | 1,038,086 | 159,094 | |||||||||
AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended 31 December | Twelve months ended 31 December | |||||||||||||||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||
| Revenue | 238,084 | 362,573 | 55,567 | 869,050 | 901,573 | 138,172 | ||||||||||||||||||
| Cost of sales and services rendered | (75,859 | ) | (127,606 | ) | (19,556 | ) | (275,948 | ) | (356,796 | ) | (54,681 | ) | ||||||||||||
| Gross profit | 162,225 | 234,967 | 36,011 | 593,102 | 544,777 | 83,491 | ||||||||||||||||||
| Selling expenses | (144,311 | ) | (200,096 | ) | (30,666 | ) | (413,068 | ) | (510,608 | ) | (78,255 | ) | ||||||||||||
| General and administrative expenses | (76,642 | ) | (61,788 | ) | (9,469 | ) | (196,329 | ) | (230,646 | ) | (35,348 | ) | ||||||||||||
| Finance income | 102 | 156 | 24 | 388 | 1,185 | 182 | ||||||||||||||||||
| Finance costs | (5,748 | ) | (10,499 | ) | (1,609 | ) | (24,293 | ) | (29,189 | ) | (4,473 | ) | ||||||||||||
| Other gains/(losses), net | 1,624 | (1,208 | ) | (185 | ) | 18,669 | 600 | 92 | ||||||||||||||||
| Fair value gain of convertible redeemable preferred shares | - | - | - | 136,656 | - | - | ||||||||||||||||||
| Fair value gain/(loss) of convertible note | 1,568 | (813 | ) | (125 | ) | (5,193 | ) | (1,599 | ) | (245 | ) | |||||||||||||
| Fair value gain of exchangeable note liabilities | - | - | - | 45,274 | - | - | ||||||||||||||||||
| Fair value gain of derivative financial instrument | - | - | - | 301 | - | - | ||||||||||||||||||
| Impairment of non-current assets | (1,405 | ) | (32,969 | ) | (5,053 | ) | (1,405 | ) | (32,969 | ) | (5,053 | ) | ||||||||||||
| Share of losses of investments accounted for using the equity method | (307 | ) | (134 | ) | (21 | ) | (1,738 | ) | (1,043 | ) | (160 | ) | ||||||||||||
| (Loss)/profit before income tax | (62,894 | ) | (72,384 | ) | (11,093 | ) | 152,364 | (259,492 | ) | (39,769 | ) | |||||||||||||
| Income tax expense | 2,295 | (9,304 | ) | (1,426 | ) | (14,036 | ) | 12,587 | 1,929 | |||||||||||||||
| (Loss)/profit for the period/year | (60,599 | ) | (81,688 | ) | (12,519 | ) | 138,328 | (246,905 | ) | (37,840 | ) | |||||||||||||
| Other comprehensive income/(loss): | ||||||||||||||||||||||||
| Items that may be subsequently reclassified to profit or loss | ||||||||||||||||||||||||
| Currency translation differences | 831 | (227 | ) | (35 | ) | 672 | (731 | ) | (112 | ) | ||||||||||||||
| Total other comprehensive income/(loss) for the period/year, net of tax | 831 | (227 | ) | (35 | ) | 672 | (731 | ) | (112 | ) | ||||||||||||||
| Total comprehensive (loss)/income for the period/year | (59,768 | ) | (81,915 | ) | (12,554 | ) | 139,000 | (247,636 | ) | (37,952 | ) | |||||||||||||
| (Loss)/profit attributable to: | ||||||||||||||||||||||||
| Owners of the Company | (58,418 | ) | (77,910 | ) | (11,940 | ) | 136,309 | (235,479 | ) | (36,089) | ||||||||||||||
| Non-controlling interests | (2,181 | ) | (3,778 | ) | (579 | ) | 2,019 | (11,426 | ) | (1,751 | ) | |||||||||||||
| (Loss)/profit for the year | (60,599 | ) | (81,688 | ) | (12,519 | ) | 138,328 | (246,905 | ) | (37,840 | ) | |||||||||||||
| (Loss)/earnings per share for (loss)/profit attributable to owners of the company (in RMB per share) | ||||||||||||||||||||||||
| —Basic | (0.99 | ) | (1.18 | ) | (0.18 | ) | 2.96 | (3.61 | ) | (0.55 | ) | |||||||||||||
| —Diluted | (0.99 | ) | (1.18 | ) | (0.18 | ) | (0.78 | ) | (3.61 | ) | (0.55 | ) | ||||||||||||
| Total comprehensive (loss)/income attributable to: | ||||||||||||||||||||||||
| Owners of the Company | (57,587 | ) | (78,137 | ) | (11,975 | ) | 136,981 | (236,210 | ) | (36,201 | ) | |||||||||||||
| Non-controlling interests | (2,181 | ) | (3,778 | ) | (579 | ) | 2,019 | (11,426 | ) | (1,751 | ) | |||||||||||||
| Total comprehensive (loss)/income for the period/year | (59,768 | ) | (81,915 | ) | (12,554 | ) | 139,000 | (247,636 | ) | (37,952 | ) | |||||||||||||
AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED
RECONCILIATIONS OF IFRS AND NON-IFRS RESULTS
| EBITDA and Adjusted EBITDA | For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||||||||||||
| (Loss)/profit before income tax for the period/year | (62,894 | ) | (72,384 | ) | (11,093 | ) | 152,364 | (259,492 | ) | (39,769 | ) | |||||||||||||
| Adjustments | ||||||||||||||||||||||||
| + Finance costs | 5,748 | 10,499 | 1,609 | 24,293 | 29,189 | 4,473 | ||||||||||||||||||
| + Amortisation and depreciation | 21,985 | 35,994 | 5,516 | 83,834 | 106,405 | 16,308 | ||||||||||||||||||
| EBITDA | (35,161 | ) | (25,891 | ) | (3,968 | ) | 260,491 | (123,898 | ) | (18,988 | ) | |||||||||||||
| - Fair value gains of convertible redeemable preferred shares | - | - | - | (136,656 | ) | - | - | |||||||||||||||||
| +/- Fair value (gains)/losses of convertible note | (1,568 | ) | 813 | 125 | 5,193 | 1,599 | 245 | |||||||||||||||||
| - Fair value gains of derivative financial instruments | - | - | - | (301 | ) | - | - | |||||||||||||||||
| - Fair value gains of exchangeable note liabilities | - | - | - | (45,274 | ) | - | - | |||||||||||||||||
| + Share-based compensation expense | 22,664 | 15,370 | 2,356 | 47,788 | 78,967 | 12,102 | ||||||||||||||||||
| + Professional fees | 7,710 | 3,189 | 488 | 12,064 | 18,581 | 2,847 | ||||||||||||||||||
| + IT-related expenses paid to a related party | 520 | - | - | 3,020 | - | - | ||||||||||||||||||
| + Roadshow and marketing expenses | 31,098 | - | - | 32,220 | - | - | ||||||||||||||||||
| + Impairment of non-current assets | 1,405 | 32,969 | 5,053 | 1,405 | 32,969 | 5,053 | ||||||||||||||||||
| + Loss on disposal of Wuhan Pengai | - | - | - | 2,070 | - | - | ||||||||||||||||||
| + Loss on disposal of subsidiaries | - | 802 | 123 | - | 1,531 | 235 | ||||||||||||||||||
| + Loss on disposal of an associate | - | - | - | - | 927 | 142 | ||||||||||||||||||
| + Donation | - | - | - | - | 1,330 | 204 | ||||||||||||||||||
| + Exchange loss | 5,123 | - | - | 5,123 | - | - | ||||||||||||||||||
| Adjusted EBITDA | 31,791 | 27,252 | 4,177 | 187,143 | 12,006 | 1,840 | ||||||||||||||||||
AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED
RECONCILIATIONS OF IFRS AND NON-IFRS RESULTS (CONTINUED)
| Adjusted Profit | For the Three Months Ended December 31, | For the Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||||||||||||
| (Loss)/profit for the period/year | (60,599 | ) | (81,688 | ) | (12,519 | ) | 138,328 | (246,905 | ) | (37,840 | ) | |||||||||||||
| Adjustments | ||||||||||||||||||||||||
| - Fair value gains of convertible redeemable preferred shares | - | - | - | (136,656 | ) | - | - | |||||||||||||||||
| +/- Fair value (gains)/losses of convertible note | (1,568 | ) | 813 | 125 | 5,193 | 1,599 | 245 | |||||||||||||||||
| - Fair value gains of derivative financial instruments | - | - | - | (301 | ) | - | - | |||||||||||||||||
| - Fair value gains of exchangeable note liabilities | - | - | - | (45,274 | ) | - | - | |||||||||||||||||
| + Interest expense on convertible note | 661 | - | - | 4,144 | - | - | ||||||||||||||||||
| + Share-based compensation expense | 22,664 | 15,370 | 2,356 | 47,788 | 78,967 | 12,102 | ||||||||||||||||||
| + Professional fees | 7,710 | 3,189 | 488 | 12,064 | 18,581 | 2,847 | ||||||||||||||||||
| + IT-related expenses paid to a related party | - | - | - | 3,020 | - | - | ||||||||||||||||||
| + Roadshow and marketing expenses | 31,098 | - | - | 32,220 | - | - | ||||||||||||||||||
| + Impairment of non-current assets | 1,405 | 32,969 | 5,053 | 1,405 | 32,969 | 5,053 | ||||||||||||||||||
| + Loss on disposal of Wuhan Pengai | - | - | - | 2,070 | - | - | ||||||||||||||||||
| + Loss on disposal of subsidiaries | - | 802 | 123 | - | 1,531 | 235 | ||||||||||||||||||
| + Loss on disposal of an associate | - | - | - | - | 927 | 142 | ||||||||||||||||||
| + Donation | - | - | - | - | 1,330 | 204 | ||||||||||||||||||
| + Exchange loss | 5,123 | - | - | 5,123 | - | - | ||||||||||||||||||
| Adjusted Profit/(loss) | 7,014 | (28,545 | ) | (4,374 | ) | 69,124 | (111,001 | ) | (17,012 | ) | ||||||||||||||
FAQ
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