Traditional Therapy Clinics Limited represents one of the largest chains of traditional therapeutic health and wellness clinics in China, with over 300 clinics in 26 administrative districts. The repeatable and scalable business model employed by TTC includes franchising and owning clinics has ensured its success within the highly regulated, fast-growing wellness industry. Operating under the well-known Fuqiao brand, TTC has achieved a compound annual revenue growth rate of 69% over the past 4 years, and was the recipient of the prestigious Chinese Well-Known Trademark award. The therapeutic massage industry in which TTC operates offers significant potential for growth, hence TTC expect to increase their market share from A$43.99 billion in 2014 to A$58.45 billion by 2017. TTC reported an operating income of A$20.3 million for the first half of the financial year, an increase of 45.8% on the previous year. This increase is in part due to the addition of 19 new stores, prompting a A$2.52 million increase in sales.
The company generates revenue from training and management fees paid by franchisees, and from annual franchise fees. In addition, operation of owned clinics augments revenue, and TTC has been expanding its base of owned clinics since 2013.
In order to gain access to capital, increase brand visibility and enhance operating standards, TTC sought to raise A$15 million with an Initial Public Offering and obtain a listing on the Australian Securities Exchange. TTC began trading on the ASX on September 8th. A total of 30 million shares were offered at A$0.5 per share, and shares reached a maximum trading value of A$0.70. The dividend payout date was on October 30th 2015.