Steady growth of stores and layout; Revolutionary academic achievements promote industry progress
Financial Highlight：
- Revenue amounted to RMB1,412.8 million；
- Revenue from hair transplant services amounted to RMB1,030.5 million, accounting for 72.9% of our total revenue. Revenue from medical hair care services amounted to RMB362.5 million, accounting for 25.7%
- Gross profit was RMB872.6 million; gross profit margin was 61.8%；
- Net loss amounted to RMB85.9 million；
- Basic loss per Share was RMB0.16;
- Not to declare any dividend.
HONG KONG SAR -
Media OutReach - 31 March 2023 -
Yonghe Medical Group Co., Ltd. ("
Yonghe Medical", together with its subsidiaries, the "Group", is pleased to announce the audited consolidated annual results of the Company for the year ended December 31 2022 (the "Reporting Period"). During the reporting period, the COVID-19 pandemic in mainland China had a significant impact on the Group's business, resulting in a drop by approximately 40.0% in customer flow which led to an overall decline in revenue. The Group's had a revenue of RMB1,412.8 million. Gross profit was RMB 872.6 million, with a gross profit margin of 61.8%. The Group recorded a net loss of RMB 85.9 million, with a basic loss per share of RMB 0.16.
Adhering to the original intention of medical care; the number of people served continues to increase As a leading medical group in China specializing in providing hair transplant services, Yonghe Medical has always maintained the largest and most extensive chain of hair transplant clinics in the country. At the same time, Yonghe Medical also adheres to the dual main business development of hair transplant services and medical hair care service. For the year ended December 31, 2022, our revenue from hair transplant service amounted to RMB1,030.5 million, accounting for 72.9% of our total revenue. Guided by the initial intention of "More integrity, Less sugarcoating", and our philosophy of "outstanding hair transplant depends on professional physicians". Yonghe Medical launched the physicians' value-based pricing mechanism to further boost patients' confidence in our "Yonghe Hair Transplant" brand. During the Year, revenue from medical hair care service amounted to RMB362.5 million, accounting for 25.7% of our total revenue. As a pioneer in China's medical hair care industry, Yonghe have provided professional and customised diagnosis and treatment services to our patients through Svenson Medical Hair Care Centers in our hair transplant clinics under the "shop-in-shop" model. To further boost a broader development of our medical hair care service, Yonghe have provided our medical-grade hair health management services to our patients in a more convenient and professional way through our "Svenson Medical Hair Care Centers" that have been opened as stand-alone stores since 2022. For the year ended December 31, 2022, the number of patients who received our medical hair care service was 63,257, and the repurchase rate of our medical hair care service packages was 28.2%.
Expanding during the pandemic; Market outlook is still optimistic Despite the pandemic, Yonghe Medical did not stop its expansion. During the Reporting Period, Yonghe focused our efforts on expanding the presence of Yonghe Hair Transplant clinics into tier-two and tier-three cities, and started to open stand-alone Fa Zhi Chu Female Hair Transplant clinics, and extended the store network for stand-alone Svenson Medical Hair Care Centers in the Guangzhou-Shenzhen region. During the Reporting Period, Yonghe opened 6 Yonghe Hair Transplant clinics; 3 Fa Zhi Chu Female Hair Transplant clinics in Hangzhou, Beijing and Chengdu, respectively; 6 Svenson centers in Shenzhen and Guangzhou, respectively. As at December 31, 2022, our 63 hair transplant clinics covered 60 cities in 28 provinces, autonomous regions, municipalities and special administrative regions across China. At the same time, Yonghe Medical had a team of 1,341 medical professionals, 294 of them were physicians, continuing to be the largest professional medical team in the industry. Yonghe Medical has laid a solid foundation for future revenue growth by achieving a comprehensive national store layout and maintaining a strong and professional medical team.
Revolutionary breakthrough academic achievements in the hair industry; Refined marketing strategies to enhance brand value In 2022, the research result of the cooperation between the Group and Sun Yat-sen University on inducing the transformation of fibroblasts into dermal papilla cells was officially published in the International Journal of Molecular Sciences, an authoritative Scientific Citation Index (SCI) Journal in international molecular medicine. The paper provides a simple and effective solution for subsequent in vitro culture of dermal papilla cells and treatment of hair loss by using small molecule drugs that transform...
