According to Zhitong Finance App News, Ruili Medical & Aesthetic (02135) announced that the group expects revenue of about RMB 189 million in 2023, an increase of 14.55% over the previous year; losses due to the owner of the parent company are about RMB 32 million, an increase of 1 times over the previous year.

According to the announcement, continued losses were mainly due to the following reasons: in the first month of 2023, the business of medical institutions in Zhejiang and Anhui was still affected by the large-scale COVID-19 outbreak, which affected the Group's performance in the first half of the year and led to an increase in marketing costs; in order to speed up the development and production of the Group's new medical device products, the Group increased its investment in R&D activities of Suzhou Yonglan Biomedical Technology Co., Ltd., an indirect non-wholly-owned subsidiary of the company. In 2023, Suzhou Yonglan spent about RMB 8 million on R&D expenses, plant construction costs, and compensation for R&D personnel. These expenses have not yet been recovered from the resulting economic benefits in 2023; in 2023, the group continued to obtain share options of approximately RMB 4 million (2022: approximately RMB 4 million).

In addition, the goodwill impairment of several subsidiaries of the group, including: the goodwill impairment of goodwill and termination of deferred income tax assets of Hangzhou Bellyfair Medical Beauty Clinic Co., Ltd., an indirect wholly owned subsidiary of the company, and Wuhu Ruili Medical & Aesthetic Clinic Co., Ltd., an indirect non-wholly-owned subsidiary of the company, totaled approximately RMB 7 million and RMB 5 million, respectively. Affected by increased competition in the industry, Hangzhou Bellyfield and Wuhu Ruili both lost about RMB 4 million in 2023; and Shenzhen Jiumei Xinhe Medical Co., Ltd., an indirect wholly-owned subsidiary of the company Due to the fact that the downward trend in Shenzhen Jiumei's performance this year did not improve in a timely manner. In addition, the long-term equity investment invested in Bioris Medical (Beijing) Trading Co., Ltd. depreciated by about RMB 3 million, resulting in losses due to the extended product launch cycle during the COVID-19 pandemic.