Business Expansion and Acquisitions - The company has established a network of 10 wholly- or majority-owned treatment centers across major cities in China, focusing on the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtze River Delta area [286]. - In 2021, the company acquired 73% equity interest in Guangzhou Meixi Aesthetic Medical Clinic, which was subsequently renamed Guangzhou Pengai Xiuqi Aesthetic Medical Clinic [285]. - The company raised US8.50 per three shares [287]. - In July 2022, the company raised RMB170 million (approximately US0.3 million), representing 0.5%, 0.4%, and 0.4% of total revenue for those periods [345]. Customer Engagement and Satisfaction - Approximately 100 mystery shoppers evaluated service quality across all treatment centers in 2023, leading to significant improvements in service quality and attitudes [317]. - The company maintains a customer complaint rate of approximately 0.05% for the years 2021, 2022, and 2023, indicating a stable level of customer satisfaction [342]. - The company focuses on enhancing customer loyalty through a feedback system, which has led to a low number of complaints relative to the total treatments provided [340][342]. - The active customer base in 2023 was 228,104, showing a decrease from 216,045 in 2022, representing a CAGR of -3.0% [338]. - New customers in 2023 increased to 83,247, accounting for 36.5% of the total active customers, up from 22.2% in 2022 [336]. Service Quality and Innovation - The company has a mission to deliver safe, high-quality aesthetic medical services, leveraging over 20 years of clinical experience [292]. - The company has received multiple industry awards, including the "2022 Annual Quality, Safe and Secure Aesthetic Medical Institution" award from the Shenzhen Association of Plastics and Aesthetics [295]. - The company implemented new standard operating procedures (SOP) in 2022 to enhance service consistency and quality across treatment centers [316]. - The company is committed to continuous development of new treatment solutions and enhancing staff training to support business scalability and sustainable growth [318]. - In 2022, the company launched 6 new non-surgical aesthetic treatment solutions and introduced 3 major treatment solutions in 2023, including Multi-dimensional Pigmentation Clearing 3.0 [303]. Regulatory Environment - The General Office of the State Council issued policies to promote private investment in medical institutions, aiming to reduce administrative requirements and approval times for establishing medical institutions [371]. - The Central Committee of the Communist Party of the PRC encourages private sector investment in healthcare services, allowing multi-site practices for doctors and enabling privately funded institutions to access the medical insurance system [373]. - The Administrative Measures on Medical Institutions require healthcare administrative departments to review and approve the establishment of medical institutions, ensuring compliance with licensing procedures [374]. - The Law on Maternal and Infant Healthcare mandates licensing for medical institutions involved in genetic disease diagnosis, prenatal diagnosis, and midwifery services [376]. - The Administrative Measures for Aesthetic Medical Services stipulate that aesthetic medical institutions must obtain a Medical Institution Practicing License before commencing operations [378]. Market Competition - The aesthetic medical services market in China is highly competitive, with key competitors including Mylike, Yestar, and Evercare [355]. - The company has been recognized for its leading position in the aesthetic medical service industry, co-publishing the 2020 White Paper for the Aesthetic Medical Service Industry in China [295]. Human Resources and Training - The sales and marketing team consists of 154 members, generating commissions based on the number and types of procedures sold [350]. - Aesthetic medical practitioners must have relevant qualifications and experience, including a doctor's qualification and at least one year of clinical experience in aesthetic medical services [419]. - Personnel providing aesthetic medical nursing services must have at least two years of nursing experience and relevant training or education [420]. Investment and Taxation - The Company Law of the People's Republic of China was amended in 2023, allowing for both limited liability companies and companies limited by shares [458]. - The Foreign Investment Law, effective from January 1, 2020, implements a pre-establishment national treatment and negative list for foreign investment, ensuring equal treatment for foreign and domestic investors [461]. - The uniform corporate income tax rate for domestic and foreign enterprises in the PRC is set at 25% [478]. - Non-resident enterprises without established institutions in the PRC are subject to a reduced enterprise income tax rate of 10% [478].
Aesthetic Medical International Holdings(AIH) - 2023 Q4 - Annual Report