Earnings call transcript Q1 2023

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Operator

Good morning, ladies and gentlemen. Thank you for standing by, and welcome to Aesthetic Medical International Fiscal Year 2022 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 Dr. Chief Mr. and Chairman Zhou, Executive Officer; Pengwu Toby Financial Officer; and Mr. Wu, Chief Shi, Director. Relations Derrick Associate Investor

will the will Zhou available session by financial Dr. that review They to Mr. highlights, the performance. during Toby followed answer company follows. your Wu, the all who will introduce questions company's business the be operations Q&A and

our These Before started, forth I statements that statements information the of include future we projections would forward-looking you expectations, performance. results those statements. get and and discussed future differ regarding future about our and our set events some from such materially include prospects. like to financial may will financial in remind Actual plans

includes these you and uncertainties, of company's should discussion filings risks press SEC, today's release. the For which review with the

statements of our not events. future should on rely You as predictions forward-looking

applicable All as obligation forward-looking and update as assumptions this statements undertake on no we by make that based except to call on are we law. of them, and today, beliefs required

today will Our including loss EBITDA. include adjusted measures, discussion adjusted and non-IFRS financial EBITDA,

not adjusted for prepared EBITDA substitute loss a net as to superior or accordance EBITDA, should with IFRS. in consider and adjusted You income

may other are other Furthermore, measures with be they prepared calculations are susceptible companies. similarly to not and to in because IFRS, comparable titled measures varying by accordance not non-IFRS, of presented

single to measure. company's are entirety financial a the rely review on financial You and encouraged information in not its

Chairman Pengwu English Director, will I Associate time, CEO remarks by Shi. Zhou, Dr. this would Aesthetic At and Derrick Relations to Medical the like Mr. Investor turn in His over of to delivered be opening International. call

ahead. go please Dr. Zhou,

Pengwu Zhou

joining the everyone, Language] [Foreign today. call for and operator, Thank you,

throughout our in Despite placed rebounded the challenges where of treatment centers lifted visits past and time from fiscal was the outlook were our We are the year. XXXX. The share epidemic of excited year December control treatment to lockdown to number after centers stakeholders. our our strongly time year, the with under XXXX to earnings

financial the demonstrating impressive XXX divestment company's management. achieved million and million, of asset of RMB success during In performance increase the XXXX, with representing from EBITDA adjusted three of loss allocation The million a period, year-on-year RMB we XX.X positive despite to centers revenue our RMB XXX.X of in a treatment efficiency rebounded a underperforming X.X%. cost

relaxing also and announce are aesthetic the to the to renovation This consulting renovation in our end enjoy bar, of receiving XXXX. services, Pengai We hospital, spending state-of-the-art comfortable of at allow proud that Shenzhen installation completion while the facilities average customers refreshment and hard a environment, of of furnishing drive including through new projects, a flagship customer. the more our

system, informal disclosure. financial that management patient transparency of provides data, represents revenue our systems greater for hospital terms on the information more accuracy the informed integration in system can operations, expenses better with systems. of milestone upgraded and and significant the In a The company company's IT allowing and data real-time providing [ph] decision-making and now transaction business track

the its opportunities received in knowledge, can been level to have development consistently procedure implementation mystery systems The and and they During provide employees feedback SOP. all strived our continuous skills customers. treatment standard standardize to and the delivered services the service that their of period, adjustments and training that will company's operational ensure operating aims ensuring of all for efficiently establish centers. highest shoppers' company to the to XXXX has processes provide and training are improve that validate to across XX our

as of million, in therefore, of the agreement positions for enable RMB to In China. February agencies leader optimize our Jiechuang Aesthetic capital which XXX with in and future we consideration closed a XXXX, our field for liquidity a structure, us will us subscription supplement Medical expansion

see aforementioned we believe strategy. We

enhance further solutions committed to safe, eventually in delivering our core equity drive to profitability. brand be personalized and effective customers improve will competitors, We return our and and

and Thank for your support attention. you, all again

would I CFO, and operations the to Toby of Wu for our financials to the ahead. please introduce the turn XXXX. to Now, Toby, call go like fiscal year

Toby Wu

hello, revenue our operation results year-on-year Zhou, that I as December total key will and the Thank quality XXXX, well service of operation strategy more year result primarily fiscal XXXX. XXXX you, and to increased financial well RMB we we of the some million, XXX.X summarize to provide audited as fiscal organized of and optimized XX, better In everyone. X.X% for Dr. ended year attributable implemented. as the

was the increase representing percentage The points increase an of medical XX.X% XX.X profitability and and strategic attributable XXXX, profit increased treatment of RMB that consumables. the million, meet implementation profit XXX.X XXXX a cost requirement of Gross aesthetic our to our divestment was margin XX.X%. during to our of control year-on-year. centers Gross the

optimization in our Selling result its total XXXX. our million, marketing percentage of the governance expenses year the in expenses were the XXX.X representing introduction mainly corporation, domain. RMB Selling a of a of of the XX.X% of private Reduction as relationship and fiscal contribution of the customer company's such was revenue in decreased expenses management selling of XX.X a KOL revenue by BXB point. channels, and as

expenses the the General the by in decrease primarily and underperforming the X.X year-on-year, and XXXX divestment and tiny point XXX.X labor admin control. to XXXX a of million, due assets expenses and RMB of revenue XX.X% were the admin percentage cost and as general representing decreased

in of and XX.X of XXX.X As million the loss loss X.XX in Basic of of the XXXX. XXXX recorded RMB RMB share of a X.XX and loss per diluted fiscal of the the compared the XXXX. fiscal year XXXX of RMB million the in year loss foregoing, fiscal fiscal of of basic with a diluted result year share loss for per company with both year were compared a RMB

Adjusted loss XXX was XXXX. RMB financial XXX.X a million a the XXXX. the with in RMB year fiscal in in of the a RMB EBITDA RMB RMB was of XXXX XX for for for fiscal fiscal million, year the RMB XXXX of from of fiscal X.X the with XXX.X profit of Adjusted a the compared loss million of a of year positive year XX.X XXXX. of year million a loss loss was after-tax positive XXXX of fiscal million year compared of million EBITDA rebound

a as temporary the The company increased of In by was aesthetic the package. performance, the treatment demand company primarily cases the the a treatment generation, in terms innovative as year-on-year. active the medical XX.X% for of suspension a of as XX.X% Shanghai introduction young increasing businesses treatment increase among and year, through of well dermatologic customers. of the drive a treatment of non-surgical our number a decrease total of Yet Shenzhen result operating year-on-year in center in and recorded

number X.X total treatment. of of in as Total point medical aesthetic non-surgical advanced increased primarily by post-treatment a treatment XXXX, the and the drive aesthetic XX.X% solution, the energy-based to treatment percentage of inauguration by treatment medical percentage non-surgical number

from service Average [ph] remarks. concludes [Technical by in XX.X% RMB RMB us spending joining our to a delivering year, the increased call. on high-risk -- by stimulating for sustainable full Difficulty] customer primarily treatment drive Thank prepared our this per long-term of This customers you quality X,XXX high-end sale growth.

the We first caller. ahead. go will Operator, open now

Operator

with Instructions] first question Qianyi East [Operator ahead. today The Please [ph] go you. Asia Zhang from Securities Co. Thank comes

Unidentified Analyst

to got is period? there clinics East the Zhang plan is And divest this one here. establishment And plan Qianyi the I've any team. is management any in for operations evening, during Securities. Asia or company is, of from there or questions two this And Good close acquisition XXXX? first the

Derrick Shi

are performing treatment any divest cease our Thank If period, reach we centers. centers not expectation, question, you, consider treatment But or have the Qianyi. plan we center any the treatment our the of current monitoring divestment. do fails This operation we for profitability decently. company. to might in Derek but then clinics And the from is XXXX, your to keep for first our will of all

the are for to kind been standard we So plan, acquire plan consider on we center starting and more have centers. after will pretty will right operation because acquisition our implemented new And we or current from now. treatment XXXX, don't sure open profitability centers our But structure not have in centers. our of we completely expand divestment this the treatment treatment focus all capital any one that procedures we of two treatment XXXX among will to our

a So open And to your from my will have answer I on, standardized from XXXX. think for the model treatment center that's we question. that

Unidentified Analyst

I Okay. visits. to Very number of about of clear. Thank the how the you the is is would so much. the like And epidemic at second year? end the the after question control of last lifted ask, visits

Pengwu Zhou

your Thank you questions. for

epidemic. of infected December weeks, increase a from because visits we because XXXX people quick. in the been really COVID-XX the see of about We have two from But went sharp a of recovered that seen most have after -- up with people have number we the decline seen

one of to year, double because hospital this numbers with -- very our visit in are in like from the starting And increase numbers the of number the seen XXXX. has visits flagship comparison encouraging of a sharp us

believe affecting second was my Thank outperform we our us. the to impact That's the when XXXX COVID-XX we of without question. So will performance -- epidemic, in three the last that years answer your outperformed you.

Unidentified Analyst

that. We and you see much. Thank like business to would looking year, forward very are you. Thank we to the this growth

Pengwu Zhou

you. Thank

Operator

questions, Derrick Mr. further for let the Shi no Seeing Instructions] turn remarks. [Operator to back me over closing call

Derrick Shi

like behalf for On operator. everyone you, would today. thank team, I us our to management entire again Thank of joining

and your us ir@pengai.com.cn. support contact interest please again, appreciate Aesthetic at in International speaking time. questions, any look ahead forward have please go to you Operator, If through you with e-mail next Medical and We

Operator

thank Aesthetic year of concludes our we and conference again listening call. you, you call Goodbye. International Medical attending for in. today, all for Thank This fiscal earnings everyone XXXX

Aesthetic Medical International Holdings Group Limited (PAIYY) 21 Apr 232023 Q1 Earnings call transcript