Aesthetic Medical International Holdings Group Limited provides aesthetic medical services in the People’s Republic of China (China or the PRC, including Hong Kong, Macau, and Taiwan).
The company provides one-stop aesthetic service offerings that include surgical aesthetic treatments, such as eye surgery, rhinoplasty, breast augmentation, and liposuction; non-surgical aesthetic treatments, which comprise minimally invasive treatments and energy-based treatments, such as laser, ultrasound, and...
Aesthetic Medical International Holdings Group Limited provides aesthetic medical services in the People’s Republic of China (China or the PRC, including Hong Kong, Macau, and Taiwan).
The company provides one-stop aesthetic service offerings that include surgical aesthetic treatments, such as eye surgery, rhinoplasty, breast augmentation, and liposuction; non-surgical aesthetic treatments, which comprise minimally invasive treatments and energy-based treatments, such as laser, ultrasound, and ultraviolet light treatments; and other aesthetic services, such as cosmetic dentistry, as well as general medical services.
The company generates its revenue primarily from providing aesthetic treatments. The company has strategically established network of wholly- or majority-owned treatment centers. Its treatment centers spread across major cities in China, with major focus in the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtz River Delta area in Mainland China. As it continues to expand its network, one of the company's core business strategies is to develop its flagship medical institutions, which are typically large-scale full-service treatment centers that contribute a significant proportion of its revenue and are staffed with its most experienced doctors.
The company has two flagship medical institutions, i.e., Pengcheng Hospital and Shenzhen Pengai. The company's scalable business model is built on its highly standardized operating procedures across a centralized network. The company intends to continue to expand its network into new cities throughout mainland China through organic growth, as well as strategic acquisitions, and strategically restructure and focus more on its core markets in the form of Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze Delta Area.
Business Model
The company generates revenue primarily from its core business providing surgical aesthetic treatment services and non-surgical aesthetic treatment services, comprising minimally invasive treatments and energy-based treatments, as well as non-core business providing general healthcare and other aesthetic services. The company offers a wide range of surgical and non-surgical aesthetic treatments to cater to the various needs of its customers.
Aesthetic Services
Non-Surgical Aesthetic Medical Services
The company's non-surgical aesthetic medical services primarily comprise energy-based treatments and minimally invasive aesthetic treatments.
In 2022, the company launched 6 new non-surgical aesthetic medical treatment solutions with the support of new products and equipments, as to Multi-dimensional Pigmentation Clearing, Non-invasive Body Shaping, Collagen Ion Cannon, 6G laying Thin, Acne bacteria Balance, and White Moonlight. The company introduced various well-known aesthetic medical products, such as Rejuran produced by Pharma Research Products Co., Ltd., CureWhite produced by IMEIK Technology Development Co., Ltd., Ellanse produced by Huadong Medicine Co., Ltd., Loviselle produced by Changchun SinoBiomaterials Co., Ltd., and purchased advanced energy-based treatment equipment to further expand its service offerings, including the Alma Opus Plasma, and Solta Medical Thermage FLX. In 2023, the company introduced three major treatment solutions and one collagen product. The three major solutions include Multi-dimensional Pigmentation Clearing 3.0, Baby Face 3.0, and Skin Infusion Series. Additionally, the company launched one collagen product named See Sense Collagen 3+17 Type. The company continuously develops constructive treatment solutions for its customers.
Minimally Invasive Aesthetic Treatments
Minimally invasive aesthetic treatments are non-surgical procedures that can help individuals improve their appearance with minimal or no incisions. These treatments are typically performed in fifteen minutes to two hours with minimal pain and mild bruising or swelling, whilst achieving immediate effects. Recovery time varies depending upon the service type, but generally the healing period is between one to two weeks.
To ensure consistency of quality and safety, all the company's injection treatments follow a standardized procedure that involves the application of numbing cream, disinfection of the treatment area, which has been identified and marked by its doctors and injection at the treatment area with a sterilized syringe. After the injection, the treated area is cleaned, shaped, and iced.
Energy-Based Treatments
The company offers a range of epidermal energy-based treatments using high-grade equipment from China, Germany, Israel, and the United States. The company's standardized procedures for energy-based treatments, which typically take less than one hour, involve the following steps: facial cleansing, application of numbing cream or anesthetic to the treatment area, disinfection, methodical application of the energy-based treatment, including testing on a small area before adjusting the level of energy-based intensity accordingly.
Mesotherapy is catagorized within energy-based treatment due to naming conventions. The company offers a wide range of mesotherapy treatments using injection materials from low end to high end according to customer spending power and skin needs.
Surgical Aesthetic Medical Services
The company provides customary surgical aesthetic medical services, including double eye lid surgery, rhinoplasty, breast augmentation, liposuction and facelifts, among others. Surgical aesthetic treatments typically involve local or full anesthesia, and an extended recovery time. All of the company's surgical aesthetic treatments are performed in fully equipped operating rooms in its treatment centers.
Due to their complexity, the company requires all its surgical aesthetic treatments to be attended (or performed) by doctors with a high level of experience. To ensure the consistency of quality and safety in the company's procedures it utilizes a standardized process for the treatment. These procedures are typically completed within one to three hours, with recovery time ranging from one to twelve months, depending on the type of procedure and the customer's physical conditions.
General Healthcare Services and Other Aesthetic Medical Services
The company provides a range of medical services through its Pengcheng Hospital, primarily in internal medicine and traditional Chinese medicine. It also provides other aesthetic medical services, primarily in aesthetic dentistry, aesthetic traditional Chinese medicine, and hair loss treatments. The company's aesthetic traditional Chinese medical treatments, unlike western medical treatments, which are clinically proven, include herbal oral medications, dietary advice, herbal poultices and foot baths, ultraviolet negative ion beauty treatments, ultrasounds, iontophoresis (use of local electric current) and acupuncture, cupping, massage, and skin scraping (known as 'gua sha' in China).
Aesthetic Services Process
The company has developed, improved, and implemented highly standardized operational procedures across its treatment centers through years of industry experience and accumulated know-how. The company's process focuses on providing customized services and high quality customer experiences.
Treatment Centers
As of December 31, 2023, the company had an extensive presence in mainland China, with locations in 7 cities. All of its treatment centers are wholly- or majority-owned.
The company's network comprises treatment centers across mainland China, including two flagship hospitals. Based on relevant Chinese regulations, the treatment centers in the company's network can be classified as the following:
Hospital, which meets the minimum standard for Grade I general hospital, including certain prescribed clinical and medical departments, and medical personnel requirements; or
Outpatient department, which meets certain prescribed clinical department and medical personnel requirements and typically comprises aesthetic treatment consultation rooms, aesthetic surgery, aesthetic dermatology, and dentistry, amongst other departments.
Clinic, which meets certain prescribed clinical department and medical personnel requirements and typically comprises one or two of the departments of aesthetic surgery, aesthetic dermatology, aesthetic dentistry, aesthetic traditional Chinese medicine.
One of the company's core strategies is to develop its flagship hospitals, which are large-scale, full-service hospitals located at the epicenter of its regional network hubs and accompanied by its smaller-scale treatment centers in the surrounding vicinity. The company's flagship hospitals contribute a meaningful proportion of its revenue and are staffed with its most experienced doctors.
The premises of the majority of the company's treatment centers are leased, while Huizhou Pengai and part of Pengcheng Hospital are its owned properties.
Flagship Hospitals
Shenzhen Pengai
Shenzhen Pengai Hospital was established as the company's second flagship hospital. Shenzhen Pengai Hospital has a gross floor area of approximately 6,182 sq.m. with 7 surgical rooms and 38 treatment rooms. As of December 31, 2023, Shenzhen Pengai Hospital had 7 major departments, including plastic surgery, aesthetic dermatology, aesthetic traditional Chinese medicine, aesthetic dentistry, anesthesiology, medical laboratory, and medical imaging.
Shenzhen Pengai Hospital serves as the training base for the Dalian Medical University College of Aesthetic and Plastic Surgery.
Pengcheng Hospital
Pengcheng Hospital became the company's first flagship hospital in 2003 to provide both aesthetic medical services and general healthcare and other aesthetic services. As of December 31, 2023, this treatment center had a gross floor area of approximately 8,391 sq.m. with 7 surgical rooms and 59 treatment rooms. It is equipped with advanced medical devices, such as Thermage radiofrequency systems, Body-Jet liposuction systems and Aesculap flexible neuroendoscopy systems. As of December 31, 2023, Pengcheng Hospital had 19 major clinical departments, including plastic surgery, aesthetic dermatology, aesthetic traditional Chinese medicine, aesthetic dentistry, surgical, gynecology, internal medicine, otorhinolaryngology, laboratory testing, radiology, anesthesiology etc.
Sales and Marketing
The marketing efforts focuses on informing customers of the comprehensive aesthetic medical services that the company offers; and emphasizing the high level of customer satisfaction. For example, the company holds themed marketing events when opening new treatment centers and introducing new treatments. In addition, it hosts conferences and invite its potential clients and promote its services.
In the second quarter of 2022, the company has developed new customer acquisition strategies through the establishment of online and offline collaboration with renowned enterprises to target potential customers with high level of consumption. These new B2B methods have complemented the company's existing B2C marketing initiatives and helped optimize its overall marketing efficiency.
In addition to the private domain channel introduced in the second quarter, the company started collaboration with key opinions leaders (KOLs) and tapped into livestreaming e-commerce. The campaign was successful and effective in expanding target audience to younger generation who has strong demand in self-care and aesthetic related consumption.
In 2023, the company further enhanced its marketing strategies by integrating the Xiaohongshu (Little Red Book) platform, unifying the management of marketing activities across all medical institutions. This consolidation significantly improved operational efficiency and heightened the exposure of its brand. Additionally, the company expanded its reach by launching livestreaming on Douyin (TikTok). Transitioning from individual live broadcasts by various medical institutions, the company adopted a unified approach by collaborating with Douyin influencers. Customers could seamlessly order medical services during livestream sessions, with the added convenience of utilizing services across all company-affiliated medical facilities.
Customers
The company's customers are primarily female individuals residing in China. The majority of its customers are aged between 18 and 30, and this age cohort represented 45.1% of its customer base in 2023, while customers in the 31 to 40 and above 40 age cohorts represented 34.9% and 19.1% of its customer base in 2023, respectively.
The company's active customer base, defined as customers who have received at least one procedure in the relevant year, was 228,104 in 2023.
Competition
The company's competitors include major privately-owned multi-site operators in China, such as Mylike, Yestar, brands under Lancy Co.,Ltd., Aist, and Evercare.
Intellectual Property
As of December 31, 2023, the company had 37 registered trademarks, 32 of which are in mainland China and 5 in Hong Kong; 40 registered domain names, of which all are registered in mainland China; and 2 registered patents, of which all are registered in mainland China. The company’s principal intellectual property rights are its registered trademarks, such as Pengai, as well as its patented technologies, which include a device and method for measuring facial symmetry and a device and method for mandibular shaping.
History
Aesthetic Medical International Holdings Group Limited was founded in 1997. The company was incorporated in the Cayman Islands in 2011.
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