Financial Performance - For the fiscal year ending March 31, 2022, Clarity Medical Group reported total revenue of HKD 225.2 million, a slight increase of 1.3% from HKD 222.4 million in the previous year[11]. - The net profit for the year was HKD 13.5 million, representing a significant decrease of 62.3% compared to HKD 35.8 million in the prior year[11]. - Adjusted net profit decreased by 21.7% to HKD 30.9 million from HKD 39.4 million year-over-year[11]. - The company's net profit margin fell to 6.0% from 16.1% in the previous year, indicating a decline in profitability[11]. - The adjusted net profit margin for the year was 13.7%, down from 17.7% in the previous year, reflecting challenges in maintaining profitability[11]. - Clarity Medical Group's financial performance indicates a need for strategic adjustments to enhance profitability and revenue growth moving forward[11]. Revenue Sources - Revenue from refractive surgery, the largest source of income, decreased by approximately HKD 9.1 million or 5.6% to about HKD 152.6 million for the year ended March 31, 2022[30]. - The number of SMILE surgeries performed decreased from 4,063 in the previous year to 3,802, leading to a revenue drop of approximately HKD 12.4 million or 12.4%[30]. - The average price for SMILE surgery decreased from HKD 24,600 to HKD 23,100, while LASIK surgery remained relatively stable[28]. - Revenue from other eye treatment services increased by approximately HKD 10.3 million, contributing to overall revenue growth[25]. - Revenue from other eye treatment increased from approximately HKD 44.8 million in 2021 to approximately HKD 55.1 million in 2022, representing a growth of 23.0%[32]. - Revenue from diagnostic and examination services rose from approximately HKD 9.1 million in 2021 to approximately HKD 10.2 million in 2022, an increase of 12.1%[33]. - Revenue from the sale of prescription drugs and others increased from approximately HKD 6.9 million in 2021 to approximately HKD 7.4 million in 2022, accounting for 3.1% and 3.3% of total revenue respectively[34]. IPO and Capital Allocation - Clarity Medical Group successfully completed its global offering, raising approximately HKD 181.9 million net of underwriting commissions and other expenses[13]. - The company achieved a significant milestone by listing on the Hong Kong Stock Exchange on February 18, 2022, marking its first annual report since the IPO[17]. - 44.8% of the IPO proceeds (approximately HKD 81.5 million) is allocated for establishing two new medical centers in Hong Kong[125]. - 30.5% of the IPO proceeds (approximately HKD 55.5 million) is designated for acquiring one to two ophthalmology clinics or hospitals in selected cities in the Greater Bay Area[125]. - 14.7% of the IPO proceeds (approximately HKD 26.7 million) is planned for setting up ophthalmology clinics in China with suitable partners[125]. - The total estimated allocation of IPO proceeds was HKD 245.6 million, which is higher than the actual net proceeds of HKD 181.9 million[125]. Cost and Expenses - Cost of used inventory increased from approximately HKD 37.0 million in 2021 to approximately HKD 38.5 million in 2022, representing 16.6% and 17.1% of total revenue respectively[38]. - Consultant fees rose from approximately HKD 55.8 million in 2021 to approximately HKD 63.0 million in 2022, accounting for 25.1% and 28.0% of total revenue respectively[39]. - Employee benefit expenses increased from approximately HKD 36.3 million in 2021 to approximately HKD 42.0 million in 2022, representing 16.3% and 18.7% of total revenue respectively[40]. - Other expenses increased from approximately HKD 20.3 million in 2021 to approximately HKD 24.2 million in 2022, accounting for 9.1% and 10.7% of total revenue respectively[44]. - Business development expenses increased by approximately HKD 1.2 million or 25.0% year-on-year, reaching approximately HKD 6.0 million in 2022[44]. Strategic Initiatives - The company is preparing to expand into the Greater Bay Area market, anticipating increased demand for quality ophthalmic services due to economic growth and favorable government policies[22]. - The company plans to leverage its extensive experience in the Hong Kong ophthalmic industry to gain a competitive advantage in the Greater Bay Area[22]. - The company aims to achieve sustainable growth and strengthen its position in the ophthalmic services market through the establishment of new medical centers and acquisitions in Hong Kong[69]. - Plans to acquire equity interests in ophthalmology clinics, outpatient departments, or hospitals in China to expand the "Clear" brand business[69]. - The company plans to identify suitable partners to establish ophthalmology clinics in China to provide ophthalmic medical services[69]. Governance and Management - The company has appointed independent non-executive directors with extensive experience in their respective fields, enhancing governance and oversight[93][97]. - The operational director has over 18 years of medical practice experience, including more than 10 years in ophthalmology, ensuring strong leadership in medical services[99][101]. - The company has established a robust governance structure with various committees to ensure effective management and compliance[96][100]. - The independent directors' roles include providing independent opinions to the board, which is essential for balanced decision-making[93][97]. - The management team emphasized the importance of digital transformation, aiming to increase online sales by 30% through enhanced e-commerce platforms[85]. Share Options and Equity - As of March 31, 2022, the total number of share options granted to directors and senior management was 26,687,500, with 5,530,000 options exercised[139]. - The company adopted a share option plan on January 26, 2022, aimed at aligning the interests of key talents with the company's goals[143]. - The maximum number of shares that can be issued under the share option plan is capped at 10% of the total issued shares as of the listing date, equivalent to 50,000,000 shares[151]. - The share option plan allows for the issuance of options to directors, employees, consultants, and business partners based on performance and tenure[146]. - The five largest customers contributed less than 1% to the total revenue, with no single customer contributing more than 0.2% for the fiscal year ending March 31, 2022[167]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[85]. - New product development includes the introduction of two innovative medical devices expected to generate an additional HKD 300 million in revenue[85]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 10% market share within the next three years[85]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's market position and increase overall revenue by 15%[85]. - The company has allocated HKD 100 million for research and development in the upcoming year to enhance product offerings and technological advancements[85].