RAILY Aesthetic Medicine International Holdings Limited (RAILY AESMED) reported FY2025 revenue of RMB189.41 million, down 5.0% year on year, yet delivered a turnaround to a RMB1.87 million profit attributable to shareholders versus a RMB59.21 million loss in FY2024. Basic earnings per share recovered to RMB0.34 cents from a loss of RMB11.11 cents.

\n\nGross profit rose 8.8% to RMB77.71 million, lifting the gross margin to 41.0% (FY2024: 35.8%). Margin improvement was driven by a shift toward higher-yield minimally invasive procedures and tighter cost controls, which cut cost of sales by 12.7% to RMB111.70 million.

\n\nSegment Performance • Aesthetic medical services revenue increased 7.6% to RMB152.91 million, supported by a 26.7% rise in average customer spending to ~RMB3,800. - Minimally invasive services grew 23.4% to RMB84.51 million and achieved a 45.1% margin (up 14.5 ppts). - Aesthetic dermatology slipped 8.4% to RMB62.34 million but maintained a 33.5% margin. - Aesthetic surgery revenue rose 18.5% to RMB4.82 million; gross loss narrowed as cost controls took hold.

• Sales of aesthetic medical equipment products fell 42.6% to RMB32.83 million amid product-mix adjustments and slower traction for new offerings; margin held at 66.8%.

• Consulting services generated RMB3.67 million (FY2024: RMB0.03 million), benefiting from marketing support linked to equipment sales.

\n\nCost & Expense Dynamics Selling and distribution expenses declined 20.8% to RMB37.83 million, while administrative expenses fell 25.1% to RMB31.27 million, reflecting lower share-based payment charges and reduced outsourced services. Other income and gains dropped sharply to RMB2.28 million (FY2024: RMB20.27 million) following the absence of one-off fair-value gains booked in the prior year.

\n\nBalance Sheet and Liquidity Cash and bank balances more than doubled to RMB57.79 million. Net current liabilities narrowed to RMB29.21 million. Total assets stood at RMB237.65 million against total liabilities of RMB139.39 million, leaving net assets at RMB98.26 million. Interest-bearing bank and other borrowings totalled RMB21.47 million (all short-term), while unutilised banking facilities amounted to RMB8.00 million. Capital expenditure for the year was RMB12.10 million, largely earmarked for property, plant and equipment and R&D-related assets.

\n\nDividend & Outlook No dividend was declared for FY2025. Management plans to prioritise non-surgical aesthetic services, expand its clinic network into first- and second-tier cities—including a new Hong Kong venture announced in January 2026—step up R&D for Class III injectable products, and redeploy unused IPO proceeds of HKD8.40 million as additional working capital by end-2026.