Year in Review - 2016 Operations
- The Chinese traditional medicine market sector, in which TTC or Fuqiao operates, continues to grow strongly and is actively supported and encouraged by the Chinese Government. Over the last 16 years TTC has established strong and leading market position in this fast growing traditional medicine market sector.
- During 2016 TTC has focused on continuing the expansion of its traditional health and wellness clinics in China under the Fuqiao brand. This expansion of TTC opera-ons in what is one of the sought after market sectors in China for investment positions the TTC business well for the future.
- The core growth strategy of expanding the clinic network through the acquisition of existing franchises and also the acquisition of company owned well performing clinics was successfully executed.
- At the end of 2016
o Number of franchised clinics was 346 - an increase of 38 clinics
o Number of company owned clinics was 26 - an increase of 7 clinics
o Total Number of Clinics was 372
2017 March Quarter Update
Traditional Therapy Clinics Limited is continuing with its strategy of increasing its number of higher margin 'owned clinics' through the acquisition of existing franchised clinics within the network.
- 378 Clinics (19 May 2017)
- Owned Clinics - 35 (19 May 2017)
o 9 clinics acquired from 1 January 2017 to 19 May 2017
o Owned clinics totalling 35 at May 2017
- Franchised clinics - 343 (19 May 2017)
o 6 new clinics opened from 1 January 2017 to 19 May 2017
Summary and Outlook
- The senior management team is diligent and committed to TTC
- Reflecting this, the business has performed consistently well since its IPO in September 2015
- In 2016 the business delivered an (RMB) EBIT growth of >10%
- A similar core growth strategy based on an expansion of the number of company owned and franchised clinics is planned for 2017. This is the primary growth strategy for 2017.
- The company growth strategy is also to consider significant synergistic acquisitions of other relevant market participants.
- The company growth strategy is also to look for cost effective ways to introduce other products and services to better capture the full Fuqiao customer journey.
- A number of greenfield clinic start ups are targeted for 2017
- A similar EBIT (RMB) growth of >10% is the target for 2017
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About Traditional Therapy Clinics Ltd
Traditional Therapy Clinics Limited (ASX:TTC) is a franchisor and the owner of one of the largest chains (by number of clinics) of traditional therapeutic health and wellness clinics in China. It currently has 343 franchised clinics and 35 owned clinics in operation. It is a well established business with a strong growth profile, employing a repeatable and scalable business model.
TTC has a highly recognised and respected brand, having received the prestigious Chinese Well-Known Trademark designation from the State Administration for Industry and Commerce. It operates within a strongly regulated industry sector of significant scale, which offers opportunity for further growth.
TTC is an ASX listed company employing around 1,000 staff across 27 of the 33 administrative divisions in China. More information is available at http://www.ttc-ltd.com/
Traditional Therapy Clinics Ltd