Charming Medical (MCTA) Registration Filing summary

Company overview and business model

• Operates as a Hong Kong-based provider of TCM-inspired beauty, wellness, and postpartum services and products, primarily for women, through four wellness centers under the Beauty Lab brand.

• Revenue streams include services (womb-warming therapy, pelvic detox, prenatal massage), product sales (herbal patches, supplements), and consultancy/training for other institutions.

• All operations are conducted through Hong Kong subsidiaries; the BVI holding company structure is used for the IPO.

• No operations or VIE structure in Mainland China; all revenue and profits are generated in Hong Kong.

Financial performance and metrics

• FY2024 revenue: $6,015,375 (up 70.4% YoY); net income: $821,743 (vs. net loss of $335,605 in FY2023).

• Six months ended September 30, 2024: revenue $2,958,508 (up 12% YoY); net income $468,817 (up 24.1% YoY).

• Main revenue driver: beauty, wellness, and postpartum services (96.6% of FY2024 revenue).

• Working capital deficit as of September 30, 2024: $2,281,970; cash and equivalents: $2,692,056.

• Auditor issued a going concern opinion due to recurring working capital deficits.

Use of proceeds and capital allocation

• Estimated net proceeds of $6.6 million (at $5.00/share midpoint), allocated as: 40% for business/geographic expansion, 30% for strategic investments/acquisitions, 10% for R&D, and 20% for working capital.

• No specific investment or acquisition targets identified as of the filing.