Aesthetic Medical International Holdings Group Limited Reports Second Quarter and First Half of 2021 Unaudited Financial Results
Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) reported its Q2 and H1 2021 financial results, showing a revenue increase of 34.4% to RMB224.0 million and 68.6% to RMB434.5 million, respectively, compared to the same periods in 2020. Gross profit surged 40.3% to RMB133.6 million in Q2 and 96.6% to RMB255.8 million in H1, with gross margins reaching 59.6% and 58.9% respectively. Adjusted EBITDA turned positive, reflecting a profit of RMB14.7 million in Q2. The company aims to restructure by divesting underperforming assets to enhance profitability.
- Revenue growth of 34.4% in Q2 2021 and 68.6% in H1 2021.
- Gross profit increased by 40.3% in Q2 and 96.6% in H1.
- Adjusted EBITDA profit of RMB14.7 million in Q2 2021, compared to a loss in Q2 2020.
- Significant increase in active customers by 21.7% in H1 2021.
- Loss of RMB324.5 million in Q2 2021 compared to a loss of RMB64.4 million in Q2 2020.
- Impairment losses totaling RMB295.1 million due to strategic restructuring efforts.
- Total active customers declined by 4.2% in Q2 2021.
SHENZHEN, China, Nov. 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
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 of34.4% from RMB166.7 million in the second quarter of 2020. - Gross profit was RMB133.6 million (US
$20.7 million ), representing an increase of40.3% from RMB95.2 million in the second quarter of 2020. - Gross margin was
59.6% , representing an increase of 2.5 percentage points from57.1% 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 of68.6% from RMB257.7 million in the same period of 2020. - Gross profit was RMB255.8 million (US
$39.6 million ), representing an increase of96.6% from RMB130.1 million in the same period of 2020. - Gross margin was
58.9% , representing an increase of 8.4 percentage points from50.5% 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 | 24,612 | - | ||||||
| Repeat Customers | 39,582 | 38,926 | - | ||||||
| Total Active Customers | 66,344 | 63,538 | - | ||||||
- 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 of1.3% and an increase of2.1% , 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 | 48,169 | + | ||||||
| Repeat Customers | 61,793 | 77,092 | + | ||||||
| Total Active Customers | 102,937 | 125,261 | + | ||||||
- 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 of21.7% 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% and36.2% , 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
Revenue from non-surgical aesthetic medical services was RMB117.0 million (US
Revenue from minimally invasive aesthetic treatments was RMB56.6 million (US
Revenue from energy-based treatments was RMB60.4 million (US
Revenue from surgical aesthetic medical services was RMB91.2 million (US
Revenue from general healthcare services and other aesthetic medical services was RMB15.8 million (US
Cost of sales and services rendered
Cost of sales and services rendered was RMB90.4 million (US
Gross profit
Gross profit was RMB133.6 million (US
Gross profit of non-surgical aesthetic medical services was RMB68.6 million (US
Gross profit of minimally invasive aesthetic treatments was RMB32.6 million (US
Gross profit of energy-based treatments was RMB36.0 million (US
Gross profit of surgical aesthetic medical services was RMB55.4 million (US
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
Selling expenses
Selling expenses were RMB112.3 million (US
General and administrative expenses
General and administrative expenses were RMB44.8 million (US
Impairment of good will, intangible assets and property, plant and equipment
Impairment of goodwill was RMB111.6 million (US
Impairment of intangible assets was RMB43.7 million (US
Impairment of property, plant and equipment was RMB139.8 million (US
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
Certain Non-IFRS items
EBITDA for the second quarter of 2021 was a loss of RMB294.9 million (US
Adjusted loss for the second quarter of 2021 was RMB14.9 million (US
Adjusted EBITDA for the second quarter of 2021 was a profit of RMB14.7 million (US
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
Cost of sales and services rendered
Cost of sales and services rendered was RMB178.7 million (US
Gross profit
Gross profit was RMB255.8 million (US
Gross profit of non-surgical aesthetic medical services was RMB129.4 million (US
Gross profit of minimally invasive aesthetic treatments was RMB60.2 million (US
Gross profit of energy-based treatments was RMB69.2 million (US
Gross profit of surgical aesthetic medical services was RMB108.5 million (US
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
Selling expenses
Selling expenses were RMB206.3 million (US
General and administrative expenses
General and administrative expenses were RMB86.9 million (US
Impairment of goodwill, intangible assets and property, plant and equipment
Impairment of goodwill was RMB111.6 million (US
Impairment of intangible assets was RMB43.7 million (US
Impairment of property, plant and equipment was RMB139.8 million (US
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
Certain Non-IFRS items
EBITDA for the six months ended June 30, 2021 was a loss of RMB286.7 million (US
Adjusted loss for the six months ended June 30, 2021 was RMB22.8 million (US
Adjusted EBITDA for the six months ended June 30, 2021 was a profit of RMB35.2 million (US
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
Certain cash flow items
Net cash generated from operating activities was RMB58.3 million (US
Net cash used in investing activities was RMB34.1 million (US
Net cash used in financing activities was RMB21.3 million (US
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
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
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 | ) |
FAQ
What were the financial results for AIH in Q2 2021?
How did AIH's performance change in the first half of 2021?
What is the outlook for AIH following their Q2 2021 report?
What is AIH's adjusted EBITDA for Q2 2021?
Did AIH experience any customer growth in 2021?
