Traditional Therapy Clinics Ltd Stock Market Press Releases and Company Profile
Appendix 4D and Interim Financial Report
Appendix 4D and Interim Financial Report

Sydney, Aug 31, 2016 AEST (ABN Newswire) - The Traditional Therapy Clinics Ltd (googlechartASX:TTC) Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Traditional Therapy Clinics Limited (the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2016 ('reporting period').

Principal activities

During the financial period the principal continuing activities of the consolidated entity consisted of providing healthcare services in People's Republic of China.

Review of operations

The table (see link below) sets out the selected key performance indicators for the half year's ending 30 June 2016 ("HY2016") and 30 June 2015 ("HY2015").

(A) Revenue

HY2016 recorded a 43% increase in revenue from $20.3 million in HY2015 to $28.9 million in HY2016. This strong growth was driven by:

- Revenue from Franchise Clinics increased by $0.7 million primarily due to the granting of 21 new Franchise Agreements in HY2016 and the full period impact of 36 new Franchise Clinics in FY2015.

- An increase in Owned Clinics revenue from $10.8 million in HY2015 to $18.8 million in HY2016 primarily due to the following factors:

-- The full period impact of 8 new Owned Clinics acquired in the last quarter of FY2015. This contributed an additional $7.6million in revenue during HY2016; and

-- The organic growth of 8 existing Owned Clinics. This contributed an additional $0.4 million in revenue during HY2016.

(B) Gross Profit

Gross profit increased by $4.3 million in HY2016 (an increase of 32%) mainly as a result of increased revenue reflecting the matters discussed above.

(C) Operating Costs

In HY2015, IPO costs of A$0.83 million were incurred. Excluding the impact of this amount, Operating Costs including Selling and Distribution Expenses, General and Administrative Expenses and Other Expenses in HY2016 increased by $1.3 million mainly due to the increase in Australia head office cost by $0.6 million, and the increase in expense of options and performance rights by $0.1 million. In addition, foreign exchange loss of $0.4 million was incurred in HY2016.


Excluding the impact of one off costs associated with the IPO of $0.8 million, EBITDA (before IPO costs) increased from $12.24 million in HY2015 to $15.6 million in HY2016 primarily as a result of strong growth of Revenue and increased Gross Profit, reflecting the matters discussed above.

Significant changes in the state of affairs

Contributed equity increased by $5,312,099 (from $17,888,254 to $ 23,200,353) as the result of the issue of shares under the Dividend Reinvestment Plan (DRP) and DRP Shortfall Placement.

There were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.

To view the report, please visit:

About Traditional Therapy Clinics Ltd

Traditional Therapy Clinics LtdTraditional 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 


Mr Geoff Ross
Mobile: +61-407-780-683

Mr Nicholas Ong
Company Secretary
Mobile: +61-424-598-561

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