Review of operations
The principal activity of the TTC group during the financial year was the provision of health services through its Fuqiao brand of franchised and owned health and wellness clinics throughout China.
- In the first half year of 2016, the Group mutually terminated the property purchase agreement of a new office building in Chongqing China. The developer has fully refunded the purchase money paid in the prior years (RMB 128 million) to the Group before the end of 2016. In December 2016, the Group proceeded to acquire another new head office building within Chongqing City's main financial district. The new building costs RMB92.53 million or A$18.46 million (at an exchange rate of 5.01).
- As in the previous years, the Company continued its focus on growing the number of franchised clinics, opening an additional 38 clinics.
- The Company also continued to focus on its core strategy of growing the number of owned clinics and acquired a further 7 clinics from its existing franchise base. The 7 clinics were acquired at a multiple of between 3 and 3.5 times of EBITDA.
- The Company is continuing its ongoing efforts to explore additional therapy techniques and embark on ongoing improvements in all aspects of its core services so as to further enhance its overall customer experience.
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About Traditional Therapy Clinics Ltd
Traditional Therapy Clinics Limited (ASX:TTC) and its wholly owned entities (TTC Group or the Group) operates under the Fuqiao brand and is the largest franchisor and owner of traditional therapeutic health and wellness clinics in China. TTC operates in 29 of China’s 33 administrative divisions and engages 13,000 therapists across its network of 371 franchised and owned clinics. The Fuqiao brand is highly recognised throughout China and a government- recognised industry leader, having received the prestigious Chinese Well-Known Trademark designation. TTC was listed on the Australian Securities Exchange on 3 September 2015 and has a corporate office in Sydney and head office in Chongqing, People’s Republic of China.
More information is available at http://www.ttc-ltd.com/.
Traditional Therapy Clinics Ltd