Aesthetic Medical International Holdings Group Limited

For Q1 2023, total revenue was RMB148.9 million, down 7.3% from RMB160.7 million in Q1 2022. Gross profit was RMB72.6 million, down 18.4% year over year, and gross margin fell 6.6 percentage points to 48.8%. The company reported a net profit of RMB182,000 versus a loss of RMB2.5 million in Q1 2022; CFO commentary also cited a loss of RMB12.2 million for the quarter, basic and diluted loss per share of RMB12.04, EBITDA profit of RMB19.9 million, adjusted EBITDA of RMB23.7 million, and adjusted profit after tax of RMB4 million. Looking ahead, management did not provide explicit next-quarter or full-year financial guidance, but said it will continue the current strategy of divesting underperforming assets, reducing lower-price promotions, and focusing on sustainable long-term growth.

Derrick Shi’s commentary focused on portfolio cleanup, operational recovery, and confidence in demand. He said the company divested two underperforming treatment centers, expects a renovation project at Shenzhen Pengcheng Hospital to complete by June, and noted an agreement tied to a $5 million convertible note that should further strengthen the balance sheet. His tone was optimistic, saying consumers may be more willing to spend on self-care and personal appearance as the economy recovers.

Toby Wu framed the quarter as a mix of top-line pressure and cost discipline. He said revenue fell 7.3% year over year due to divestments and a temporary clinic closure, while gross profit was RMB72.6 million and gross margin was 48.8%, down 6.6 percentage points. Selling expenses were RMB42.4 million, or 28.5% of revenue, and G&A was RMB24.7 million, down 21.6% year over year; both benefited from lower online advertising and the divestment of underperforming assets. He also cited average spending per customer rising 1.4% to RMB3,009 from RMB2,967, driven by removing lower-price promotions.

There was no substantive analyst Q&A in the transcript, so no specific investor concerns were addressed live. The closest thing to guidance came in management’s closing remarks, which reiterated the strategy to keep optimizing the asset base, improve service quality, and pursue sustainable long-term growth. Management also pointed to the note conversion/closing as a way to strengthen financial position.