Arrail Group recorded 1.973 million patient visits in FY2026, with the independent investigation report expected to be released by the end of July.

Source: Arrail Group Quarterly Update and Continued Trading Suspension Announcement

2026 Fiscal Year Cumulative Patient Visits: 1.973 Million / Average Annual Visits per Dental Chair: 1,325 / Independent Investigation Report Expected to Be Released by End of July.

DentalGoodNews｜June 1, 2026, Arrail Group Limited (hereinafter referred to as "Arrail Group" or the "Company") released a quarterly update announcement, disclosing the latest progress of the Company's independent investigation and the review of the 2025 interim results, while simultaneously updating the business operation data for the fiscal year ending March 31, 2026 ("FY2026").

The Independent Investigation Committee, composed of all independent non-executive directors, is currently overseeing the independent investigator in advancing the investigation of relevant matters. The investigation has entered the final stage of interviews, which are expected to be completed by mid-June 2026, covering interviews with the Group's current employees and external counterparties. The draft report is expected to be released around the end of July 2026.

Affected by the progress of the independent investigation, the 2025 interim review, and the internal control review, Arrail Group's 2025 interim results (for the six months ended September 30, 2025, i.e., "the first half of FY2026"), originally scheduled for release at the end of April 2026, will be further delayed. According to previous reports by DGN, the Company had repeatedly postponed the release of results due to the auditor's request for an independent investigation into payments made to the founder and related parties. The Board expects the relevant results to be published at the end of July 2026. The Company's shares have been suspended from trading since December 1, 2025.

At the business operation level, all dental clinics and hospitals have continued to operate as usual during the suspension period. As of June 1, 2026, the Group operates 111 service points in Mainland China, including 100 dental clinics and 11 dental hospitals, with a total of 1,483 dental chairs installed. In April 2026, a new dental hospital in the Tongzhou District of Beijing (equipped with 30 dental chairs) completed its relocation and commenced operations.

In terms of patient volume, the Company disclosed that for the full FY2026, it recorded a total of approximately 1.973 million patient visits. For the first quarter of 2026 (January to March), patient visits were approximately 475,000, representing a year-on-year increase of about 4.4%. The average annual patient visits per dental chair for FY2026 were approximately 1,325, a year-on-year increase of about 5.3%. The Company stated that patient numbers are steadily recovering, and operational efficiency is simultaneously improving.

Regarding the medical team, as of March 31, 2026, the Group had 1,010 dentists, an increase from 999 in the same period last year. As of the announcement date, the Group had a total of 3,167 full-time employees. In terms of customer loyalty, the report data shows that the revisit rate of loyal customers (patients who received treatment within the previous 12 months) was approximately 48.3%, higher than the 47.8% in the same period last year. Additionally, the Group stated that it currently maintains sufficient cash reserves, and its cash flow position is adequate to meet daily operations and project plan requirements.

In terms of related party transactions and internal control compliance, on May 18, 2026, Arrail Group appointed Deloitte Management Consulting (Shanghai) Co., Ltd. Beijing Branch as an independent professional internal control advisor, focusing on a comprehensive review of areas such as corporate governance, related party transactions, and fund management. Previously, the Company had amended the loan agreement with a wholly-owned company of controlling shareholder Zou Qifang, reducing the principal to USD 6.49 million and extending the repayment period. The new auditor, CW CPA, has commenced the review of the 2025 interim financial statements and will assess the adequacy of disclosures in conjunction with the findings of the independent investigation. Arrail Group stated that it will continue to issue quarterly updates in accordance with the Listing Rules until trading resumes or its listing status is revoked.