Kaire Holdings, Inc. (AIH) Reports Q4 Loss of $0.14 on Revenues of $34.2M

Kaire Holdings, Inc. (NASDAQ: AIH) reported Q4 EPS of ($0.14). Revenue for the quarter came in at $34.2 million.

Fourth Quarter 2019 Unaudited Financial Highlights

• Total revenue was RMB238.1 million (US$34.2 million), an increase of 11.5% from RMB213.5 million in the fourth quarter of 2018.
• Gross profit was RMB162.2 million (US$23.3 million), an increase of 7.6% from RMB150.7 million in the fourth quarter of 2018.
• Gross margin was 68.1%, a decrease of 2.5 percentage points from 70.6% in the fourth quarter of 2018.
• Loss for the period was RMB60.6 million (US$8.7 million), compared with a loss of RMB281.3 million in the fourth quarter of 2018.
• EBITDA1 for the period was RMB-35.2 million (US$-5.1 million), a decrease of 86.7% from RMB-264.1 million in the fourth quarter of 2018.
• Adjusted profit1 for the period was RMB7.0 million (US$1.0 million), a decrease of 58.6% from RMB16.9 million in the fourth quarter of 2018. We recognized net effect of RMB2.3 million expenses, including depreciation expense of RMB11.1 million for right-of-use asset, finance cost for lease liabilities of RMB3.2 million deducted by rental expenses of RMB12.0 million payable according to the contract, due to adoption of IFRS 16.
• Adjusted EBITDA1 for the period was RMB31.8 million (US$4.6 million), a decrease of 3.6% from RMB33.0 million in the fourth quarter of 2018.
• Basic loss per share was RMB0.99 (US$0.14), compared with basic loss per share of RMB6.87 in the fourth quarter of 2018. Diluted loss per share was RMB0.99 (US$0.14), compared with diluted loss per share of RMB6.87 in the fourth quarter of 2018.

Dr. Zhou Pengwu, the Chairman and CEO of the Company, commented, “We are excited to announce that we achieved record revenues and gross profit for fiscal year 2019, which represented a year-over-year increase of 14.2% and 18.0%, respectively. We continued to identify, acquire and integrate treatment centers as one of our core strategies, and established five and acquired three treatment centers (for two of which, by acquiring additional equity interest) in 2019. We believe that our customers associate our brand with trust and reliability. Active customers continued to grow rapidly with a year-over-year increase of 43.0% and reached 255,395 for 2019, and repeat customers accounted for 53.8% of active customer base for 2019. In 2019, the total number of treatments was 536,469, an increase of 45.9% from 367,656 in 2018.”

Dr. Zhou continued, “We joined the fight against COVID-19 in China. Our top priority was to ensure the health and safety of our customers, employees and their families, and we postponed the resumption of operations of its aesthetic treatment centers in China after the Chinese New Year holiday in 2020. Since late February 2020, we have taken proper precautionary measures and gradually reopened our aesthetic treatment centers. By the end of March, all of our aesthetic treatment centers in China resumed operations. We will continue monitoring the latest developments and taking appropriate measures in response.”

Business Outlook

As a result of the coronavirus pandemic outbreak, we have lowered our expectations for growth in the first quarter of 2020. While the duration of the current COVID-19 and its negative impact to market demand and our business cannot be reasonably estimated at this time, we currently expect our revenue for the first quarter of 2020 to decrease year-over-year by approximately 50%, which, subject to change, reflects current and preliminary view based on best information available at the time. We will continue to monitor and evaluate the financial impacts to us.

For earnings history and earnings-related data on Kaire Holdings, Inc. (AIH) click here.

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