Aesthetic Medical International's (AIH) CEO Pengwu Zhou on Q4 2020 Results - Earnings Call Transcript

Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) Q4 2020 Earnings Conference Call April 20, 2021 8:00 AM ET

Company Participants

Pengwu Zhou - Chairman and CEO

Guanhua Wu - Chief Financial Officer

Conference Call Participants

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Aesthetic Medical International 4Q and Fiscal Year 2020 Unaudited Financial Results Conference Call. During today's presentation, all parties will be in a listen-only mode. This conference has been recorded today, Tuesday, April 20, 2021.

Joining us today from Aesthetic Medical International are the Company's Chairman and CEO, Dr. Pengwu Zhou; and Company's IRD, Mr. [Indiscernible] and the Company's Chief Financial Officer, Mr. Guanhua Wu.

Before we get started, I would like to remind you that some of the information discussed will include forward-looking statements regarding future events and our future financial performance. These include statements about our future expectations, financial projections and our plans and prospects. Actual results may differ materially from those set forth in such statements. For discussion of these risks and uncertainties, you should review the Company's filings with the SEC, which includes today's press release.

You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today and we undertake no obligation to update them except as required by applicable law. Our discussion today will include non-IFRS financial measures, including EBITDA, adjusted profit and adjusted EBITDA. You should not consider EBITDA or adjusted EBITDA and adjusted profit as a substitute for or superior to net income prepared in accordance with IFRS. Furthermore, because non-IFRS measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. You are encouraged to review the Company's financial information in its entirety and not rely on a single financial measures.

At this time, I would like to turn the call over to Mr. Pengwu Zhou, Chairman and CEO of Aesthetic Medical International. His opening remarks will be delivered in English by IRD [Indiscernible], Mr. Zhou, please go ahead.

Pengwu Zhou

[Foreign Language]

[Interpreted]

Thank you operator and everyone for joining Aesthetic Medical International's fourth quarter and fiscal year 2020 unaudited earnings call today. I will begin my remarks by providing an overview of the company's response to the COVID-19 outbreak during the fiscal year 2020 followed by a summary of the company’s fiscal year 2020 performance. Then Mr. Zhou Yi Tao, our IRD will review our financial results and operation performance in more detail. And he will elaborate a few other items related to our outlook and the approaches we are taking to implement our core initiative in the next fiscal year.

[Foreign Language]

[Interpreted]

Despite the fact that COVID-19 is under effective control in China at the current stage, we are implementing a thorough COVID-19 prevention scheme and measures, including, but not limited to regularly, sterilizing and ventilating the company's facilities, taking strict protective measures to protect our frontline employees and our customers and segregating employees’ lunch time, monitoring the body temperature of our employees and customers and keeping records of the travel history and health of our employees and their immediate family members.

[Foreign Language]

[Interpreted]

In 2020, we actively took initiatives to contain the COVID-19 pandemic and carry out Aesthetic Medical Service and the – of ensuring the safety of our customers and employees. We insist on needing our customers Aesthetic Medical meet its high standard medical technology, strong medical teams and high quality service and building trust with our customers.

[Foreign Language]

[Interpreted]

In 2021, we will continue to build on the development on the aesthetic medical service strengthening our medical team and focus on certain development of the Aesthetic Medical technology for needs of an expanding customer base. Safety and beauty has always been our purpose and this purpose will continue to lead us in the right direction of the aesthetic medical industry.

We will continue to leverage the advantage of traditional plastic surgery with our accumulating industrial experience for many years seize the huge opportunities of aesthetic medical at present and realize the optimization and upgrade products and service with technology and service as the core.

There are still uncertainties about the COVID-19 pandemic, but we have confidence and we will do our best to overcome difficulties. We will continue to provide customers with high quality service as well as bring long-term value to our shareholders and investors.

[Foreign Language]

[Interpreted]

Turning quickly to our fiscal year 2020 unaudited results. Our total revenue increased by 3.7% to RMB901.6 million, approximately equals to USD$138.2 million in 2020 from RMB869.1 million in 2019.

[Foreign Language]

[Interpreted]

Thank you again for your support and attention. Next I will turn the call over to [Indiscernible], our IRD who will review our operational result and financial results for the fourth quarter and fiscal year ended December 31st, 2020, as well as our business outlook on behalf of the management team., [Indiscernible], please go ahead.

Unidentified Company Representative

So, thank you, Dr. Zhou, and good morning, everyone. Next on behalf of the management team, I will summarize some of the key unaudited financial results and operation results for fourth quarter 2020 and fiscal year ended December 31, 2020.

So, let me begin with the fourth quarter 2020. In fourth quarter 2020, our total revenue increased by 52.3% to RMB362.6 million, which is about US$55.6 million excluding the impact from the consolidation of Guangdong Hanfei Investment Management Co., Ltd. result. The company entered into agreement to purchase a 51% equity in interest of Guangdong Hanfei Investment Management on the July 14, 2020.

But and then – but, subsequently entered into an agreement to dispose of the 51% equity interest of Hanfei on December 25 of the same year. The disposal was mainly due to slower than expectation, recovery of COVID-19 and the overall less than satisfactory performance of Hanfei during the post-acquisition period.

As the companies obtained controls over Hanfei from August 4, 2020 through December 25, 2020, the company consolidated the result of Hanfei’s interest for purpose of comparability in the analysis of the unaudited financial results. The information provided below exclude the impact of the consolidation of Hanfei’s results.

So the total revenue would have increased by 3.1% to RMB245.6 million or USD$37.6 million in the fourth quarter 2020 primarily due to an increased demand for service with higher price, partially offset by a decrease in the total number of customers during the period.

The gross profit was RMB235 million representing an increase of 44.9% from RMB162.2 million in the fourth quarter of 2019. The gross profit margin was 64.8%, representing a decrease of 3.3% from 68.1% in the fourth quarter of 2019.

Excluding the impact from the consolidation of Hanfei’s results, the gross profit would have been RMB150.1 million representing a decrease of 7.4% from the fourth quarter of 2019 and gross profit margin would have been 61.1%, representing a decrease of 7%.

The gross profit of non-surgical aesthetic medical services was RMB118.2 million, representing an increase of 23.4% from RMB95.8 million to the fourth quarter of 2019. The gross profit margin was 64.3%, representing a decrease from 66.7% in the fourth quarter of 2019.

Excluding the impact of the consolidation of Hanfei’s results, our gross profit of non-surgical aesthetic medical services would have been RMB84.1 million, representing a decrease of 12.2% from the fourth quarter of 2019 and the gross profit margin would have been 61.5%, representing a decrease of 5.2%.

So the gross profit of minimally invasive aesthetic treatment was RMB62.7 million, representing an increase of 36.3% from RMB46 million in the fourth quarter of 2019. The gross profit margin was 65.8%, representing a 66.8% decrease in the fourth quarter of 2019.

Excluding the impact of the consolidation of Hanfei’s results, the gross profit of minimally invasive aesthetic treatments would have been RMB39.1 million, representing a decrease of 15%. And the gross profit margin would have been 61.4%, representing a decrease of 5.4% decrease compared to the fourth quarter of 2019.

The gross profit of energy-based treatments was RMB55.5 million which about USD$8.5 million, representing an increase of 11.4% from RMB49.8 million in the fourth quarter of 2019. The gross profit margin was 62.7%, representing a decrease from 66.5% in the fourth quarter of 2019.

Excluding the impact from the consolidation of Hanfei’s results, gross profit of energy-based treatments would have been RMB44.9 million which is a 9.8% decrease and the gross profit margin would have been 61.5%, which is a 5% from the fourth quarter of 2019.

The gross profit of surgical aesthetic treatment was RMB107.9 million, representing an increase of 78.3% from RMB60.5 million in the fourth quarter of 2019. The gross profit margin was 66.7%, which is a decrease from 74.8% compared to the fourth quarter of 2019.

Excluding the impact from the consolidation of Hanfei’s results, the gross profit of surgical aesthetic treatment services would have been RMB58 million, which is a 4.1% decrease compared to the fourth quarter of 2019 and the gross profit margin is a 12.4% decrease.

And gross profit of general healthcare service and other aesthetic treatment service was RMB8.9 million, representing an increase of 50.8% from RMB5.9 million in the fourth quarter of 2019. The gross profit margin was 52%, which is representing an increase from 43.7% compared to the previous year.

Excluding the impact from the consolidation of Hanfei’s results, the gross profit margin of general healthcare service and other aesthetic medical treatment would have been RMB8.1 million, representing an increase of 37.3% compared to the fourth quarter of 2019 and the gross profit margin would have been 51.3%, which is an 7.6% increase compared to the previous year.

Selling expenses were RMB200.1 million, which is about US$30.7 million, representing a 55.2% of the Company’s total revenue of the same period, compared to the selling expenses of RMB144.3 million in the fourth quarter of 2019, which represent 60.6% of the Company’s total revenue of the same period.

Selling expenses increased on a year-over-year basis, because of the one-off impacts from Hanfei. Excluding the impact from Hanfei, the selling expenses in the fourth quarter would have decreased by 10.5% from RMB129.2 million in the fourth quarter of 2020 from RMB144.3 million in the same period of 2019, primarily due to the reduced price level in marketing expenses in relation to the COVID-19 outbreak.

So, the general and administrative expenses was RMB61.8 million, representing a decrease of 19.3% - 19.3% decrease. Excluding the impact from Hanfei’s, the number decreased by 30% in the fourth quarter of 2020 from RMB76.6 million in the same period of 2019, which is primarily due to a decrease in employee benefit expenses.

We recognized impairment of non-current assets of RMB33 million in the fourth quarter of 2020, representing a significant increase from RMB1.4 million in the fourth quarter of 2019. During the fourth quarter of 2020, the Company decided to strategically focus on the treatment centers in east Asia and South Asia – in east China and southern China and the southwest China regions and devote much less resources to treatment centers in other regions of China.

We performed asset impairment assessment and recognized impairment of goodwill, trade name and properties, plants, equipment with respect to certain treatment centers in other regions of China.

As a result of the foregoing, the Company recorded a loss for the fourth quarter of 2020 of RMB81.7 million which is about US$12.5 million, compared to a loss of RMB60.6 million in the fourth quarter of 2019. Hanfei contributed net profits of RMB4.3 million which is about US$0.7 million during the fourth quarter and the loss on disposal of Hanfei was RMB0.8 million.

Basic loss per share was RMB1.18 which is about US$0.18, compared with basic loss per share of RMB0.99 in the fourth quarter of 2019. Diluted loss per share was RMB1.18, compared with diluted loss per share of RMB0.99 in the fourth quarter of 2019.

The EBITDA for the fourth quarter of 2020 was a loss of RMB25.9 million, representing a decrease of 26.4% on the loss of RMB35.2 million in the fourth quarter of 2019.

Adjusted profit for the fourth quarter of 2020 was a loss of RMB28.5 million, representing a decrease of 507% from a profit of RMB7 million in the fourth quarter of 2019.

Adjusted EBITDA for the fourth quarter of 2020 was RMB27.3 million, representing a decrease of 14.2% from a profit of RMB31.8 million in the fourth quarter of 2019.

Now, I will talk about the fiscal year 2020 unaudited financial results. For the fiscal year 2020, our an revenue increased by 3.7% to RMB901.6 million, which is about US$138.2 million. Excluding the impact from the consolidation of Hanfei’s results, the total revenue would have decreased by 17.1% to RMB720.2 million, which is about US$110.4 million in 2020 primarily due to the impact of the COVID-19 pandemic that caused the temporary shutdowns of the treatment centers all over China.

Gross profit was RMB544.8 million, representing a decrease of 8.1%. The gross profit margin was 60.4%, representing a decrease of 7.8%. Excluding the impact from the consolidation of Hanfei, the gross profit would have been RMB416.3 million, gross profit margin would have been 57.8%, representing a decrease of 10.4% compared to 2019, primarily due to our enhanced promotional efforts in response to the COVID-19 pandemic that leads to decreased revenue per treatment.

The gross profit of non-surgical aesthetic treatment service was RMB269 million which is a decrease of 23.2% from RMB350.3 million in 2019. The gross profit margin was 59.4%, representing a decrease from 71.5% in 2019.

Excluding the impact from the Hanfei’s, gross profit of non-surgical aesthetic medical service would have been RMB220.6 million, representing a decrease of 33% compared to the previous year and the gross profit margin would have been 57.5%, representing a decrease of 14%.

Gross profit of minimally invasive aesthetic treatments was RMB145.8 million, which is a decrease of 5.8% compared to the previous year. Gross profit margin was 62.1%, representing a decrease from 69% in the 2019.

Excluding the impact from the consolidation of Hanfei’s results, the gross profit of minimally invasive aesthetic treatments would have been RMB111.2 million, representing a decrease of 28.2% from the 2019, and gross profit margin would have been 59.5%, representing a decrease of 9.5% from 2019.

The gross profit of energy-based treatment was RMB123.2 million, representing a decrease of 37.% decrease compared to the previous year. Gross profit margin was 56.5%, representing a decrease from 73.7% in 2019.

Excluding the impact from Hanfei’s the gross profit of energy-based treatments would have been RMB109.4 million, representing a decrease of 44% compared to the previous year, and the gross profit margin would have been 55.6%, which is a 18.1% decrease.

Gross profit margin of surgical aesthetic medical service was RMB253.1 million which is a increase of 19.9% and the gross profit margin was 63%, representing a decrease from 66.1% in 2019.

Excluding the impact from the consolidation of Hanfei’s results, gross profit of surgical aesthetic medical services would have been RMB174.7 million representing a decrease of 17.2% from the previous year and the gross profit margin would have been 59.9%, which is a 6.2% decrease.

The gross profit of general healthcare services and other aesthetic medical services was RMB22.7 million representing a decrease of RMB28.4 million in the same period of 2019. Gross profit margin was 48%, representing a decrease from 52.6% in the same period of 2019.

And excluding the impact from Hanfei’s, the general healthcare service would have been RMB21.2 million which is a 33.1% decrease from the 2019 and the gross profit margin would have been 47.3%, which is a 5.3% decrease.

Selling expenses was RMB510.6 million, representing 56.6% of the Company’s total revenue, compared to selling expenses of RMB413.1 million in the 2019, which represents a 47.5% of the Company’s total revenue of 2019.

Selling expenses increased by 23.6%, primarily due to a one-off contribution of RMB110.3 million from Hanfei. Excluding the impact of Hanfei’s, selling expenses in 2020 would have decreased by 3.1%, which is due to a decrease in employees benefit expenses as a result of decrease in sales caused by COVID-19 pandemic, and our decreased spending during the Double Eleven season, which is a Chinese shopping season in the 2020.

General and administrative expenses was RMB230.6 million, representing an increase of 17.5% from RMB196.3 million in 2019. Excluding the impact from Hanfei’s and general and administrative expenses in 2020 would have increased by 10.9% due to a increase of – in the vesting of options under our ESOP’s plan.

We recognized impairment of non-current assets of RMB33 million in 2020, representing an increase of RMB30.6 million from RMB1.4 million in 2019. During the fourth quarter of 2020, the Company decided to strategically focus on treatment centers in east China, south China and southwest China regions and devote much less resources to treatment centers in other regions of China.

We performed asset impairment assessment and recognized impairment of goodwill, trade names and property, plant and equipment with respect to certain treatment centers in other regions of China.

As a result of the foregoing, the Company recorded a loss of RMB246.9 million for 2020, compared to a profit of RMB138.3 million in 2019. Hanfei contributed profit of RMB4 million during the post-acquisition period and the loss on disposal of Hanfei was RMB0.8 million.

Basic loss per share was RMB3.61, which is about US$0.55, compared with basic earnings per share of RMB2.96 in 2019. The diluted loss per share was RMB3.61, compared to diluted loss per share of RMB0.78 in 2019.

EBITDA for 2020 was a loss of RMB123.9 million, representing a decrease of 147.6% from a profit of RMB260.5 million in 2019.

Adjusted profit for fiscal year of 2020 was a loss of RMB111 million, representing a decrease of 260.6% from a profit of RMB69.1 million in the same period of 2019.

Adjusted EBITDA for fiscal year 2020 was RMB12.0 million, representing a decrease of 93.6% from a profit of RMB187.1 million in the same period of 2019.

Now I will talk about our operational results. The repeat customers, defined as active customers who had previously received at least one procedure from the company, accounted for 62.9% of the Company’s active customer base in the fourth quarter of 2020 without considering the one-off impact from Hanfei.

Without considering the one-off impact from Hanfei, the Company conducted a total of 193 [Indiscernible] 132treatments, including 25,194 surgical treatments and 146,235 non-surgical treatments, in the fourth quarter of 2020, representing an increase of 9.9% and 5.4% and a increase of 3.8%, respectively from 176,052 total treatments, and 23,910 surgical treatments and 141,081 non-surgical treatments in the fourth quarter of 2019.

Repeated customers account for 60.5% of the Company’s active customer base in 2020 without considering the one-off impact from Hanfei.

Without considering the one-off impact from Hanfei, the Company conducted a total of 557,218 treatments, including 92,922 surgical treatments and 413,235 non-surgical treatments, in 2020, representing an increase of 3.9% and 2.5% and an increase of 2.2%, respectively from 536,469 total treatments, 90,658 surgical treatments and 404,316 non-surgical treatments in the same period of 2019.

Now for a quick summary of our balance sheet and cash flows. As of December 31, 2020, we had cash and cash equivalents of RMB44.4 million, which is about U$6.8 million compared to RMB154.5 million as of December 31 previous year.

Net cash used in operating activities was RMB0.8 million in 2020, compared to net cash generated from operating activities of RMB86.8 million in 2019.

The net cash used in investing activity was RMB127.4 million. The net cash generated from financing activity was RMB17.7 million and for the other developments of our company, on the 14^th of July 2020, the Company entered into a share purchase agreement to acquire 51% equity interest of Hanfei with its original shareholder.

On December 25^th of the same year, the Company entered into a agreement to dispose of the 51% equity interest of Hanfei with the shareholder. The disposal was mainly due to the slower than expected recovery of COVID-19 and the overall less than satisfactory performance of the Hanfei during the post-acquisition period.

On December 13, 2020, the Company announced that its Board of Directors has approved a share repurchase program, under which the Company is authorized to repurchase in the open market up to US$6.0 million worth of its ADS from time-to-time until October 12, 2021, depending on general market conditions, trading price and other factors, as well as subject to the applicable laws and the Company’s securities trading policy.

As of the date of this release, 45,000 ADS was repurchased with a total consideration of approximately about US$0.3 million.

In October 2020, the Company entered into agreement to acquire 95% of the total equity interest of Beijing Aomei Yixin Investment and Consultancy Ltd. which is Beijing Aomei for a consideration of RMB11.5 million. The transaction was completed in January 2021 and Beijing Aomei has become a subsidiary of the Company.

On February 9, 2021, the Company and Forbes China have jointly released the Chinese Aesthetic Treatment Industry White Paper 2020, which is the first white paper on the aesthetic treatment industry in China.

For the business outlook, as China gradually recovers from the aftermath of the COVID-19 outbreak, the Company has experienced recovery in the business operations. While the duration of the COVID-19 pandemic and its negative impact to market demand and the Company’s business operations still cannot be conclusively and accurately estimated at this time since there is still uncertainty for possible COVID-19 outbreak in the future, subject to any uncertainty of the development of COVID-19, the Company currently expects that its revenue will gradually recover in the first quarter of 2021.

Such expectation reflects the current and preliminary views of the Company’s management team based on the information available at the time and may be subject to change. The Company will continue to monitor and evaluate the development of the pandemic and resulting financial impacts on the Company.

Now I would like to talk about the liquidity and capital resources. The company has net current liabilities of RMB96. million as of the December 31 of 2020, which includes current borrowings of RMB136 million and operating loss of RMB247 million and net operating cash outflow of RMB0.8 million for the year then from the year end December 31, 2020.

During the year end, the Company completed four acquisitions, which has a result in potential cash flow of approximately RMB5 million for remaining acquisition consideration in the next 12 months after the date of this release. During the first quarter of 2020, the outbreak of COVID-19, the Company temporarily shut down its aesthetic treatment centers.

This caused material and adverse impacts on its revenue and cash flow for the first half of 2020 with potential continuing impacts on the subsequent periods. After considering the gradual recovery of the business during the post-COVID-19 outbreak, its expected cash flow from future operations taking into consideration cost and expenses management, funds from the bank borrowings and other sources of financing, the Company concluded that it has sufficient financial resources to meet its financial obligations as and when they fall due and continue its operation in the next 12 months, subject to any uncertainty of the development of COVID-19.

And last, I would like to add some color regarding our company's strategy in the year of 2021. We plan to stay focused on integrating the aesthetic medical industry change. During the past few years, the aesthetic medical industry has been evolving from niche through mass market consumption, with higher consumption demand, more standardizing and diversified products and services, and higher level of brand recognitions.

So to duck through this market trend, we strive to become an aesthetic medical company with more competitive medical capacity. The ability to provide a full-cycle service and more importantly well-recognized brands and larger different scale. To that end, we need to quickly increase our business scale to improve our competitive strengths, our market share and accordingly our profitability.

Our strategy is crystal clear. It is to make good use of our funding capacity to consolidate good targets with attractive valuation.

Now, I would like to turn the discussion over to the operator Kate for any questions. Kate?

Question-And-Answer Session

Operator

[Operator Instructions] Our first question today is from Carolyn Yang, a private investor. Go ahead.

Unidentified Analyst

Thank you for taking my question. I have two related questions. The first one is, was this year’s performance largely influenced by COVID-19? How you assess the impact of this pandemic? Thank you.

Guanhua Wu

Yes. Actually this year’s performance is largely influenced by COVID-19, because some of our treatment centers and hospital is shutdown for the first couple months of the year. So, we simply cannot do any treatments. And so, that is the reason that we record a loss. We’ve done very good in the previous year which is 2019 and we actually look forward to 2021. Yes. Thank you for your question.

Unidentified Analyst

Okay. Thank you. My second question is, whether the overall operations this year will be adjusted in the future? Thank you.

Guanhua Wu

Yes. The strategy is – if I just report and share the general strategy, we will say, remains the same. But we will adjust some of our strategy. For example, we are now more focusing on the eastern part and southern part of China instead of doing M&A in expanding business all over China. So, we are more focused now. Thank you for the question.

Unidentified Analyst

Okay. Thank you. And my last question is with the COVID-19 improving, what’s your expectation on this year? Is the performance still in 2021 was looking forward to?

Guanhua Wu

Yes. Thank you for your question. Yes. We actually are very optimistic about 2021. I don’t have the exact number with me right now. But we are expecting a increase of revenue and the number of treatments and number of customers basically – based on the results of 2019 instead of 2020. 2020 was a very special year. So, we are expecting a good year this year. Thank you.

Unidentified Analyst

Okay. Thank you.

Operator

Our next question is from Tammy Wang [Ph] from Sunscreen Capital. Go ahead.

Unidentified Analyst

Hi there. I have, like, three questions and the first one I will begin with the operations side. Does the number of non-surgical customers chose like upward trend? I mean, may I know what the expected annual growth rate? This is the first question.

Guanhua Wu

Yes. Thank you. Let me answer the first question first. Yes, we actually do see a upward trend for the non-surgical customers because of the industry is more acceptable and popular among the younger customers. So the teenagers are – and the young adults are more acceptable to this treatment. So, in fact, we actually see a trend in both surgical and non-surgical treatments in our company. But, yes, we do see a trend. And the expected growth rate annually I think, it’s about 25% or even more.

Unidentified Analyst

Okay. Cool. The second question is, yes, we can see that the repurchase rate of the company like, relatively high and now it’s from like, we cannot project, may I know that?

Guanhua Wu

Yes. Yes. Of course. The repurchase rate mainly come from the laser treatment and the minimal invasive treatments. And because the laser treatment and the minimal invasive treatments, you can do it on the monthly or maybe quarterly basis. So, we do see a very prudent rate on these repurchase rate on these treatments.

Unidentified Analyst

Okay. And the last question is, will the company continue to increase the investment in the [Indiscernible] projects in the coming year to 2021?

Guanhua Wu

Yes. We are actually planning to increase more investment in this part of the game, because we do see a trend of the younger customers who are more likely and who are more friendly to these non-surgical medical treatments. So, I mean, like nobody like surgeries, right, nobody likes doctors cutting off your skin and doing surgery. So, these non-surgical treatments are more and more popular in Asia basically.

Unidentified Analyst

I see. Okay. Thank you. That’s all the questions.

Guanhua Wu

Yes. Thank you.

Operator

[Operator Instructions]

Seeing no further questions let me turn the call back over to Mr. [indiscernible] for closing remarks.

Unidentified Company Representative

Thank you, Kate. On behalf of our entire management team, I would like to thank everyone again for joining us today for our conference call. If you have any questions, please contact us through emails at [e-mail] or reach our IR counsel ascent Investor Relations at [e-mail], management will respond to your question as soon as possible. We appreciate your interest and support in Aesthetic Medical International and look forward to speaking with you again next time. Kate, please go ahead.

Operator

Thank you everyone for attending Aesthetic Medical International’s fourth quarter and fiscal year 2020 unaudited earnings conference call. This concludes our call today, and we thank you for listening. Goodbye.