Annual Report to Shareholders
During 2016, the Board and Management have successfully focused on continuing the expansion of traditional health and wellness clinics in China under the Fuqiao brand. The Chinese traditional medicine market sector, in which the company operates, continues to grow strongly and is actively supported and encouraged by the Chinese Government.
The TTC business growth during 2016 has been facilitated by the opening 38 new franchises and the acquisition of 7 new clinics. At the end of 2016, TTC operated 345 franchisees and 26 owned clinics making a total of 371 clinics covering 29 provinces in China.
This growth has been managed in parallel with a disciplined focus on the training and quality of therapists in both the franchises and owned clinics to ensure the recognised high client service level was maintained. Therapists are a fundamental component of the company's future growth and in the increasingly competitive Chinese labour environment the Company has significantly increased their payment commissions to ensure their retention.
The company has received back all of the money outlaid previously for a new head office which is no longer required and a better positioned alternative head office has now been purchased at a slightly lower cost in Chongqing.
The Board and management have worked cooperatively and intensively together on future plans for the business and are united in their desire to build a strong TTC business and deliver appropriate shareholder value.
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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