Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 368,372,000, representing a 6.3% increase from HKD 346,382,000 in the same period of 2023[6]. - Adjusted gross profit for the same period was HKD 158,146,000, down 6.8% from HKD 169,739,000 in 2023[6]. - Adjusted net profit after tax was HKD 62,285,000, a decrease of 11.6% compared to HKD 70,483,000 in the previous year[7]. - The company experienced a significant decline in adjusted operating profit, which was HKD 46,309,000, down 32.0% from HKD 68,111,000 in 2023[6]. - The total gross profit for the six months ended June 30, 2024, was HKD 148,013, down from HKD 167,582 in 2023, indicating a decline in overall profitability[9]. - The company reported a total comprehensive income of HKD 32,341, significantly lower than HKD 102,201 for the same period in 2023[19]. - For the six months ended June 30, 2024, the company reported a net profit of HKD 44,154,000, compared to HKD 67,476,000 for the same period in 2023, representing a decrease of approximately 34.5%[21]. - The total comprehensive income for the period was HKD 30,211,000, down from HKD 101,501,000 in the previous year, indicating a significant decline in overall performance[21]. Market Strategy and Growth - The company plans to expand its market presence and invest in new clinic openings to drive future growth[6]. - The board of directors emphasizes the importance of strategic acquisitions to strengthen the company's market position[6]. - The company aims to enhance its product offerings and technology development to improve operational efficiency and customer satisfaction[6]. - The expected revenue growth rate for Vision Clinic Partners is projected between 10% to 14%, suggesting optimistic future performance[34]. - The company plans to open a new clinic in Kiel, Germany, by the end of this year, and satellite clinics in Beijing and Shanghai, enhancing market penetration[101]. Financial Challenges - The financial report indicates that the company is facing challenges related to pre-opening expenses for new clinics and foreign exchange losses associated with global offerings[7]. - Future guidance suggests a cautious outlook due to current market conditions and operational challenges[6]. - The company incurred pre-opening expenses of HKD 13,099 in 2024, compared to HKD 6,067 in 2023, indicating increased investment in new locations[9]. - The company reported a foreign exchange loss related to global offering proceeds of HKD 323, compared to a gain of HKD 288 in the previous year[9]. - The company emphasized that non-IFRS financial metrics are useful for assessing business performance, despite not being recognized under IFRS[10]. Operational Efficiency - Cash generated from operating activities was HKD 102,999,000, an increase from HKD 92,282,000 in the prior year, reflecting improved operational efficiency[22]. - The company reported a decrease in interest income to HKD 12,175,000 from HKD 6,773,000 in the previous year, indicating a potential impact from lower interest rates or reduced cash balances[22]. - The company’s retained earnings increased to HKD 425,042,000 as of June 30, 2024, up from HKD 397,379,000 at the beginning of the year, suggesting a focus on reinvestment[21]. Shareholder Returns - The company paid dividends totaling HKD 16,281,000 during the period, down from HKD 22,642,000 in the same period last year, reflecting a strategic decision to conserve cash[22]. - The company declared a final dividend of HKD 0.0489 per share for the year ended December 31, 2023, totaling HKD 16,295,436, compared to HKD 17,028,564 for the six months ended June 30, 2023[14]. - The company declared an interim dividend of HKD 0.0349 per share, totaling approximately HKD 11,619,606, a decrease from HKD 17,028,564 in the same period last year[119]. Employee and Operational Costs - Employee benefits expenses increased to HKD 123,470,000 for the six months ended June 30, 2024, up from HKD 103,915,000 in 2023, reflecting a growth of approximately 18.7%[57]. - The total expenses for the six months ended June 30, 2024, amounted to HKD 305,432,000, compared to HKD 251,907,000 in 2023, representing an increase of approximately 21.3%[57]. - The company’s employee benefits accounted for 25.9% of total revenue, up from 23.2% in 2023, indicating increased labor costs[105]. Financial Position - Total assets as of June 30, 2024, were HKD 1,710,933, down from HKD 1,753,598 at the end of 2023[16]. - Total liabilities decreased to HKD 533,760 from HKD 588,090 at the end of 2023, reflecting a reduction of approximately 9%[16]. - Cash and cash equivalents stood at HKD 689,561, a decrease of 4% from HKD 720,216 at the end of 2023[16]. - The total equity as of June 30, 2024, was HKD 1,177,173,000, an increase from HKD 1,165,508,000 at the beginning of the year, indicating a slight growth in shareholder value[21]. Risk Management - The liquidity risk management policy includes maintaining sufficient cash and cash equivalents, with a focus on flexibility in funding[29]. - The credit risk exposure remains low based on the expected credit loss model under IFRS 9 as of June 30, 2024[28]. - The company has not provided any financial guarantees to third parties or related parties as of June 30, 2024[29]. Corporate Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[133]. - The Audit Committee reviewed the unaudited condensed consolidated results for the six months ended June 30, 2024, and had no objections to the accounting policies adopted[139].

Investment Rating - The report maintains a "Buy" rating for EuroEyes (01846.HK) with a target price of HKD 6.92, indicating an upside potential from the current price of HKD 5.36 [4][11][20]. Core Insights - EuroEyes' overall performance in 2023 slightly fell short of expectations due to operational challenges at the London Vision Clinic and delayed clinic openings in Hong Kong and Germany. Despite this, demand for presbyopia correction treatments remained strong, leading to a 37.1% increase in lens exchange surgery revenue to HKD 371.8 million [7][11]. - The aging demographic is expected to drive demand for trifocal lens exchange surgery, which is anticipated to be a key growth driver for the company. The Knightsbridge clinic is projected to reach breakeven within 6 to 9 months, while the Hong Kong flagship clinic may take 1 to 2 years [8][11]. - The company plans to open new clinics in Kiel and Wiesbaden, Germany, by the end of the first half of 2024, and will also construct consultation centers in Beijing and Shanghai to enhance existing surgical center utilization [9][11]. - EuroEyes is pursuing an aggressive M&A strategy with a budget of HKD 500 million to acquire established practices in Europe, America, and Asia Pacific, aiming to complete these acquisitions within 24 months [11][19]. - The company has initiated a share buyback program to repurchase up to 3% of its outstanding shares, reflecting confidence in its future prospects [11]. Financial Performance - EuroEyes achieved a record turnover of HKD 714.3 million in 2023, marking a 17.0% year-on-year increase. Adjusted gross profit rose by 23.2% to HKD 339.4 million, with a gross profit margin of 47.5% [16][47]. - The adjusted net profit surged by 40.0% year-on-year to nearly HKD 141.7 million, resulting in a net profit margin of 19.8% [16][47]. - Revenue is projected to grow to HKD 842.7 million in 2024, with a year-on-year growth rate of 18.0% [47].

Financial Performance - The company's revenue for the fiscal year 2023 reached HKD 714.3 million, representing a 17.0% increase compared to the previous year[127]. - EBITDA for the fiscal year was approximately HKD 280.9 million, marking a year-on-year increase of about 31.5%[128]. - Net profit attributable to shareholders was approximately HKD 131.2 million, an increase of 46.7% compared to the previous fiscal year[129]. - The company achieved a gross profit of HKD 335.5 million, with a gross margin of 47.0%[112]. - Adjusted net profit after tax was HKD 141.7 million, with an adjusted net profit margin of 19.8%[112]. - Total assets increased to HKD 1,753.6 million, up from HKD 1,541.0 million in the previous year[112]. - Total liabilities rose to HKD 588.1 million, compared to HKD 497.9 million in the previous year[112]. - The company’s equity attributable to shareholders increased to HKD 1,134.8 million, up from HKD 1,014.3 million[112]. - Basic earnings per share for the year were HKD 39.544, compared to HKD 26.958 in the previous year[112]. Operational Highlights - The company plans to focus on expanding its services in the fields of myopia and presbyopia treatments, leveraging its established operational model[124]. - The company opened two flagship clinics in London and Hong Kong, with the Hong Kong clinic expected to start performing surgeries after obtaining a medical center license[132]. - The company completed the acquisition of FreeVis LASIK Zentrum Mannheim GmbH, expanding its operations in Germany and retaining top talent like Professor Knorz[131]. - The company plans to open two new clinics in Germany and additional satellite clinics in China in 2024 to meet future demand[132]. - The company plans to actively seek suitable acquisition targets to enhance organic growth over the next two to three years[155]. - The company’s unique global clinic network helps mitigate regional risks, providing resilience against economic uncertainties in various operating regions[163]. Market Performance - Revenue from the Chinese market grew by 46.3% year-on-year to HKD 144.0 million, only HKD 5 million short of the record set in 2021[130]. - In Germany, the company achieved a 13.5% year-on-year revenue growth, reaching HKD 380.9 million, accounting for 53.3% of total revenue[146]. - In Denmark, revenue increased by 35.0% year-on-year to HKD 87.9 million, with over 90% coming from resilient lens replacement surgeries[147]. - In China, total revenue grew by 46.3% year-on-year to HKD 144.0 million, with lens replacement surgery revenue surging 83.0% to HKD 72.7 million[150]. - The same-store revenue growth for existing clinics was 16.2%, with an EBITDA growth rate of 38.8%[144]. Stock Option and Share Award Plans - The stock option plan adopted on September 23, 2019, allows for the issuance of up to 31,733,400 shares (approximately 10%) as of the fiscal year ending December 31, 2023[23]. - The stock option plan aims to encourage qualified individuals to contribute to the group's performance and growth, and it will be effective for ten years from the adoption date[24]. - The total number of shares available for issuance under the share option plan is 31,733,400 shares, accounting for approximately 9.5% of the total issued shares[61]. - The restricted share award plan aims to attract skilled personnel and incentivize participants to contribute to the company's future development and expansion[63]. - The restricted share award plan has a validity period of 10 years from the adoption date, with approximately 6 years remaining[56]. - A total of 375,368 shares were granted under the restricted share award plan during the year ended December 31, 2023[74]. Employee and Management Information - The company has a total of 379 full-time employees as of December 31, 2023, and also employs several external surgeons and senior management members[18]. - The company maintains a competitive compensation policy for its employees, regularly reviewing and improving its employment practices[20]. - The company is committed to providing a harmonious work environment and offers competitive remuneration and training opportunities for its employees[3]. - The company has not been aware of any significant violations of employee-related laws and regulations that would have a major impact on its operations[18]. - No bonuses were paid to directors or the five highest-paid individuals during the reporting period[83]. Risks and Challenges - The company faces risks from macroeconomic factors that could impact demand for vision correction services[88]. - The business may be affected by price fluctuations in lenses, consumables, equipment, and labor costs, which could lead to adjustments in service pricing[91]. - The company emphasizes the importance of its brand and reputation, facing risks from potential claims due to treatment errors or service defects[92]. Environmental and Compliance Efforts - The company has implemented several environmental protection measures to reduce energy resource consumption[94]. - Future environmental policies will be reviewed regularly to promote sustainability and compliance with relevant laws[95]. - The company has complied with all relevant laws and regulations in Germany, Denmark, the UK, China, the Cayman Islands, and Hong Kong during the reporting period[1]. Financial Position and Proceeds Utilization - The group had outstanding borrowings of approximately HKD 0.9 million as of December 31, 2023, up from HKD 0.3 million in 2022[187]. - The group’s cash and cash equivalents were approximately HKD 720.2 million as of December 31, 2023, primarily denominated in Euros[193]. - The total net proceeds amount to HKD 660,664, with HKD 289,349 utilized and HKD 371,315 remaining as of December 31, 2023[199].

Revenue Growth - The total revenue for the year ended December 31, 2023, was HKD 714.3 million, representing a 17.0% increase from HKD 610.3 million in 2022[2]. - Revenue from vision correction services accounted for 99.1% of total revenue, increasing by 17.1% to HKD 707.9 million from HKD 604.8 million in 2022[2]. - The group's total revenue for the year ended December 31, 2023, was HKD 714.3 million, representing a 17.0% increase year-on-year, driven by strong growth in cataract surgeries for presbyopia treatment across Germany, China, Denmark, and the UK[34]. - The total revenue for the year reached HKD 714,289, representing a 17.0% increase from HKD 610,291 in 2022[80]. - The total revenue from training services rose to HKD 5,407, up 83.9% from HKD 2,937 in 2022[80]. - Revenue from crystal replacement surgery in China grew by 83.0% to HKD 72.7 million, contributing significantly to overall revenue growth[104]. - The total revenue from refractive laser surgeries decreased by 4.5% to HKD 235.3 million, primarily due to reduced demand in the UK[133]. Profitability - The gross profit for the year was HKD 335.5 million, a 23.9% increase from HKD 270.8 million in 2022, with a gross margin of 47.0%[12]. - The net profit attributable to the company's owners for 2023 was HKD 131,242,000, reflecting a slight decrease from HKD 133,254,000 in 2022[59]. - The EBITDA for the total group in 2023 was HKD 280,864,000, with a breakdown of HKD 185,551,000 from Germany, HKD 52,874,000 from China, HKD 30,503,000 from Denmark, and HKD 17,811,000 from the UK[78]. - The group achieved record revenue and EBITDA, surpassing previous highs set in 2021[126]. - The group's net profit for the year was HKD 133.3 million, a significant increase of 59.6% compared to HKD 83.5 million in the previous year[170]. - Adjusted net profit after tax for the year was HKD 141.7 million, reflecting a 40.0% increase from HKD 101.2 million in 2022[170]. Expenses and Costs - Employee benefits accounted for approximately 45.3% of total cost of sales, up from 41.5% in 2022, with total cost of sales increasing by 11.6% to HKD 378.8 million[5][7]. - Sales expenses increased by 28.7% to HKD 72.9 million, representing 10.2% of total revenue compared to 9.3% in 2022[13]. - Administrative expenses for the year were approximately HKD 89.3 million, a 10.7% increase from the previous year[140]. - The company’s effective tax expense increased to HKD 57,356, compared to HKD 45,462 in the previous year[86]. Financial Position - The total non-current assets amounted to HKD 965,716,000, an increase from HKD 702,732,000 in 2022[41]. - The company’s total equity attributable to owners increased to HKD 1,134,776,000 from HKD 1,014,266,000[42]. - The company had cash and cash equivalents of approximately HKD 720.2 million as of December 31, 2023[141]. - The total assets of the group as of December 31, 2023, were HKD 1,753.6 million, compared to HKD 1,541.0 million in 2022[176]. - Non-current liabilities rose to HKD 417,624,000, compared to HKD 334,236,000 in 2022, indicating increased financial commitments[188]. Strategic Initiatives - The company plans to leverage its global clinic network to mitigate regional risks and enhance future growth prospects[1]. - The group plans to expand its existing operations in Mannheim, Germany, following the integration of FreeVis GmbH and PMK, enhancing its market leadership in Germany[26]. - The company plans to open satellite clinics in Beijing and Shanghai to enhance service utilization and penetrate high-potential markets[137]. - The company anticipates significant revenue growth contributions from new clinics in Wiesbaden and Kiel, expected to commence operations in the first half of 2024[111]. - The group is actively seeking acquisition opportunities, particularly targeting renowned private ophthalmology clinics in Europe and Asia, with a focus on emerging markets[153]. Market Performance - The revenue contribution from China increased significantly to 20.2% in 2023 from 16.1% in 2022, with revenue rising by 46.3% to HKD 144.0 million[4]. - In Denmark, revenue increased by 35.0% to HKD 87.9 million, with over 90% of revenue coming from resilient cataract surgeries[130]. - The company opened two new flagship clinics in 2023, one in Knightsbridge, London, and another in Causeway Bay, Hong Kong, enhancing market presence[100]. Governance and Compliance - The group has complied with the corporate governance code and has not separated the roles of Chairman and CEO, believing this structure enhances strategic effectiveness[30]. - The company has not pledged any assets as of December 31, 2023[21].

Financial Performance - The total comprehensive income for the six months ended June 30, 2023, was HKD 46.528 million, a decrease of 34.974 million compared to the previous period[38]. - The company reported a net profit of HKD 46.528 million for the period, compared to a loss of HKD 34.974 million in the previous period[38]. - Revenue for the six months ended June 30, 2023, was HKD 346,382 thousand, representing a 9.7% increase compared to HKD 315,626 thousand in the same period of 2022[50]. - Gross profit for the same period was HKD 167,582 thousand, up 17.6% from HKD 142,554 thousand year-over-year[50]. - Net profit for the period was HKD 68,111 thousand, a significant increase of 56.7% from HKD 43,467 thousand in the previous year[50]. - Adjusted net profit after tax was HKD 70,483 thousand, up 31.7% from HKD 53,537 thousand year-over-year[53]. - The total comprehensive income for the period was HKD 101,501,000, which includes a profit of HKD 67,476,000[65]. - The company reported a profit attributable to owners of HKD 67,476,000 for the six months ended June 30, 2023, compared to HKD 46,528,000 for the same period in 2022, representing a year-over-year increase of 44.8%[179]. - Basic earnings per share increased to HKD 20.325 for the six months ended June 30, 2023, up from HKD 14.029 in the same period of 2022, reflecting a growth of 45%[179]. Revenue and Growth - The total revenue for the first half of 2023 was HKD 261.396 million, representing a growth of 10% year-over-year[38]. - Revenue for the six months ended June 30, 2023, was HKD 346,382,000, an increase of 9.4% compared to HKD 315,626,000 for the same period in 2022[61]. - The revenue from vision correction services was HKD 342,952,000 for the six months ended June 30, 2023, up from HKD 313,086,000 in 2022, marking a growth of 9.5%[126]. - The Chinese segment reported revenue of HKD 72,776,000, significantly increasing from HKD 48,749,000 in the previous year, representing a growth of 49.2%[148]. - The Danish segment saw revenue growth to HKD 42,746,000 from HKD 30,031,000, an increase of 42.4%[148]. - Total revenue from customer prepayments reached HKD 342,250,000 for the six months ended June 30, 2023, compared to HKD 309,649,000 in the same period of 2022, marking an increase of 10.5%[172]. Expenses and Liabilities - The company's total expenses for the six months ended June 30, 2023, amounted to HKD 251,907,000, a rise from HKD 243,198,000 in the same period of 2022, indicating a growth of 3.0%[172]. - The total liabilities increased to HKD 546,729,000 from HKD 497,947,000, indicating a rise in financial obligations[59]. - The company's total liabilities as of June 30, 2023, were HKD 497,947,000, compared to HKD 466,837,000 as of December 31, 2022, indicating an increase in financial obligations[164]. - The company's lease liabilities totaled HKD 399,743,000, with HKD 64,787,000 due within one year[99]. - The company's current lease liabilities rose to HKD 62,813,000 as of June 30, 2023, up from HKD 47,482,000 as of December 31, 2022, marking an increase of approximately 32.3%[198]. Cash Flow and Liquidity - Cash flow from operating activities was HKD 92,282 thousand, down from HKD 108,775 thousand in the same period last year[50]. - Cash and cash equivalents at the end of the period increased to HKD 781,630 thousand from HKD 716,011 thousand at the end of the previous year[50]. - The company maintained a prudent liquidity risk management strategy, ensuring sufficient cash and cash equivalents to provide funding flexibility[74]. - The company's cash flow management included maintaining adequate cash reserves and access to credit facilities[74]. - The cash and cash equivalents as of June 30, 2023, totaled HKD 782,621,000, compared to HKD 779,567,000 as of December 31, 2022, showing a slight increase of 0.3%[188]. Strategic Plans and Investments - The company plans to expand its market presence in Asia, focusing on increasing its clinic network by 20% over the next two years[38]. - The company is investing in new technology for eye care procedures, with an estimated budget of HKD 10 million for R&D in 2023[38]. - The company aims to enhance its service offerings through strategic partnerships and potential acquisitions in the upcoming fiscal year[38]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[60]. - The company plans to continue expanding its market presence, particularly in the UK, Germany, and mainland China, where revenues have shown significant growth[165]. Financial Risks and Management - The company faces various financial risks, including market risk, credit risk, and liquidity risk[93]. - The company’s financial risk management policies remained unchanged since the year-end[71]. - The company reported a foreign exchange risk exposure, where a 5% fluctuation in the RMB against the Euro could impact the after-tax profit by approximately HKD 3,405,000[72]. - The company’s liquidity risk is monitored through rolling forecasts of expected cash flows[97]. - The company’s borrowings as of June 30, 2023, were primarily at fixed interest rates, indicating a low exposure to interest rate risk[94]. Shareholder Information - The company recognized a total of HKD 20,881,000 in dividends declared during the period[65]. - The company proposed an interim dividend of HKD 0.0511 per ordinary share, totaling HKD 17,028,564, to be paid to shareholders[182]. - The company declared a dividend of HKD 0.06266 per share for the year ended December 31, 2022, totaling HKD 20,880,818, down from HKD 33,097,397 for the previous period[160]. Accounting and Compliance - The company has adopted IFRS 17 for insurance contracts without significant changes to its accounting policies[43]. - The company's accounting policies remain consistent with those applied in the annual financial statements for the year ended December 31, 2022[89]. - The company recorded a total tax expense of HKD 24,493,000 for the six months ended June 30, 2023, down from HKD 26,799,000 in the same period of 2022, a decrease of 8.6%[178]. Operational Highlights - The company opened a new clinic in Hong Kong on April 3, 2023, and expects it to commence operations in October 2023[112]. - The company operates in five reportable segments: Germany, Mainland China, Denmark, the UK, and Hong Kong[111]. - The company generated revenue primarily from vision correction services and leasing of ophthalmic equipment and surgical facilities[165]. - Employee salaries increased to HKD 90,814,000 in the first half of 2023, up from HKD 77,381,000 in the same period of 2022, representing a growth of approximately 17.7%[154].

Revenue and Profitability - Total revenue for the six months ended June 30, 2023, was HKD 346.4 million, representing a 9.7% increase compared to HKD 315.6 million in the same period of 2022[11] - Revenue from refractive laser surgery accounted for 34.3% of total revenue, with a year-on-year decline of 13.3% to HKD 116.9 million, primarily due to a decrease in the number of procedures in Germany[6] - The company recorded a gross profit of HKD 167.6 million for the six months ended June 30, 2023, reflecting a gross margin of 48.4%, up from 45.2% in the same period of 2022[11] - Profit for the period increased by 56.7% to HKD 68,111 thousand, compared to HKD 43,467 thousand in the previous year[128] - Adjusted net profit after tax was HKD 70,483 thousand, reflecting a 31.7% increase from HKD 53,537 thousand in 2022[128] - The company reported a profit attributable to owners of HKD 67,476,000 for the six months ended June 30, 2023, compared to HKD 46,528,000 for the same period in 2022, representing a year-over-year increase of 44.8%[138] - The total comprehensive income attributable to owners for the period was HKD 101,501,000, a significant recovery from a loss of HKD 34,974,000 in the previous year[138] Financial Position - The company had cash and cash equivalents of approximately HKD 782.6 million as of June 30, 2023[21] - Total assets as of June 30, 2023, amounted to HKD 1,670,185 thousand, an increase from HKD 1,541,040 thousand at the end of 2022[134] - Total liabilities as of June 30, 2023, were HKD 546,729 thousand, up from HKD 497,947 thousand at the end of 2022[135] - The company's current asset-to-liability ratio is approximately 5.2 times, slightly up from 5.1 times at the end of 2022[40] - The company’s retained earnings increased to HKD 350,810 thousand as of June 30, 2023, up from HKD 304,488 thousand at the start of the year[167] Expenses and Costs - Employee benefit expenses increased by 19.4% to HKD 80.2 million, driven by the transition to full-time contracts for doctors[10] - Sales expenses for the six months ended June 30, 2023, were approximately HKD 34.6 million, an increase of 18.8% compared to the previous year, representing 10% of total revenue[13] - The company incurred a foreign exchange loss related to global offering proceeds of HKD (288,000), contrasting with a gain of HKD 1,496,000 in the previous year[154] - The company’s financial expenses increased to HKD 14,105,000 from HKD 5,507,000, indicating a rise of 156.5%[163] Acquisitions and Expansion - The company completed the acquisition of FreeVis LASIK Zentrum Mannheim GmbH on August 17, 2023, for a total consideration of EUR 8.4 million (approximately HKD 72.5 million), with a maximum consideration of approximately EUR 12.5 million (approximately HKD 107.9 million) subject to adjustments[2] - The acquisition of FreeVis GmbH and PMK is expected to enhance the company's market position in Germany and provide comprehensive ophthalmic services, contributing to a net profit of €1.236 million (approximately HKD 10.2 million) last year, accounting for 12.2% of the company's net profit[45] - The company plans to establish clinics in major cities in China, with an expected allocation of HKD 264.3 million by December 31, 2025[25] - The company continues to seek suitable acquisition targets for private ophthalmic clinics in Europe to expand its network and enhance its market position[48] Corporate Governance and Compliance - The company has adopted a restricted share award plan effective from March 19, 2020, to attract and retain employees[75] - The board has implemented corporate governance measures in line with the corporate governance code[78] - The group reported unaudited consolidated results for the six months ended June 30, 2023, in compliance with the Hong Kong Stock Exchange listing rules[95] - The audit report confirms that the interim financial data complies with the relevant provisions of the Hong Kong Stock Exchange and International Accounting Standard 34[92] Market Outlook and Strategy - The company remains optimistic about its business in Europe, mainland China, and the UK, anticipating improvements in economic data for the remainder of 2023[27] - In the UK, the company expects a 50% increase in surgical capacity in the second half of 2023 due to the addition of two surgeons and a new clinic opening in August[29] - The company anticipates a strong demand for presbyopia treatment in mainland China, with an expected increase in surgical volume in the second half of 2023[46] - The company aims to increase marketing efforts with an expected allocation of HKD 112.3 million by December 31, 2025[25] Shareholder Information - The company declared an interim dividend of HKD 0.0511 per share, totaling approximately HKD 17.03 million, compared to no dividend in the same period last year[51] - As of June 30, 2023, the total number of issued shares of the company is 333,240,000[71] - Susanne Jørgensen holds 181,833,100 shares, representing approximately 54.57% of the total share capital[71] - During the six months ended June 30, 2023, a total of 375,368 shares were granted under the restricted share award plan[76]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[18]. - The group's revenue for the year ended December 31, 2022, was approximately HKD 610.3 million, a decrease of 3.6% compared to HKD 632.9 million in 2021[178]. - The adjusted net profit for the year was HKD 101.2 million, down from HKD 137.3 million in 2021, representing a decline of 26.3%[1]. - The company's net profit for the year ended December 31, 2022, was approximately HKD 83.5 million, a decrease of about 36.9% compared to 2021[138]. - The gross profit was approximately HKD 270.8 million, a decrease of 13.3% from the previous year, with an adjusted gross profit margin of 45.2%[82]. - Adjusted gross profit decreased by approximately 41.8 million HKD (or 13.2%) to about 275.6 million HKD for the year ended December 31, 2022, compared to 317.4 million HKD in 2021[200]. - The adjusted EBITDA for the year was approximately HKD 231.2 million, a decrease of about 14.6% year-on-year, with an adjusted EBITDA margin of 37.9%, down 4.9 percentage points from 2021[113]. Market Expansion and Product Development - The company is expanding its market presence in Asia, targeting a 30% increase in market share by entering three new countries[18]. - New product launches included a state-of-the-art eye surgery device, expected to generate $50 million in sales within the first year[18]. - The company aims to continue executing its expansion plans to meet future demand for ophthalmic surgical treatments in Europe and China[115]. - In 2023, the company plans to open three new clinics in Germany to strengthen its market leadership[115]. - The company is focused on expanding its market presence and enhancing its service offerings in high-end vision correction services across Germany, China, Denmark, and the UK[196]. Acquisitions and Strategic Moves - A strategic acquisition of a local competitor was completed for $100 million, anticipated to enhance operational efficiency and market reach[18]. - The company completed the acquisition of London Vision Clinic Partners Limited for GBP 13.1 million (approximately HKD 138.2 million), with a potential maximum consideration of GBP 34.3 million (approximately HKD 322.6 million)[84]. - The acquisition of London Vision Clinic was completed for a maximum consideration of GBP 34.3 million (approximately HKD 322.6 million), enhancing the group's presence in the high-end refractive surgery market in London[186]. - The company appointed the founder of London Vision Clinic, Professor Dan Reinstein, as an executive director and member of the International Medical Advisory Committee to enhance expertise[130]. Operational Efficiency and Cost Management - The company aims to reduce operational costs by 10% through improved supply chain management and automation[21]. - Employee benefit expenses increased by 29.1% to 140.9 million HKD in 2022, up from 109.2 million HKD in 2021[198]. - The increase in total costs was primarily driven by a rise in surgeries performed at UK clinics, leading to higher employee benefit expenses and depreciation of property, plant, and equipment[198]. - The cost of materials and consumables decreased by 16.9% to 78.3 million HKD in 2022, compared to 94.3 million HKD in 2021, due to reduced surgical volumes and better procurement prices[198]. Risks and Challenges - The company faces risks related to operational failures, including potential claims due to treatment errors or equipment malfunctions[22]. - The ongoing impact of the Russia-Ukraine crisis has negatively affected consumer confidence in Europe, particularly among the younger generation[114]. Employee and Compensation Policies - The company has a fixed contribution rate of 5% of employee-related income for its mandatory provident fund plan in Hong Kong, with a monthly income cap of HKD 30,000[29]. - The board believes that the compensation provided to employees is competitive compared to market standards[44]. - The management team and key employees' continuous service is critical for the company's success, and losing them may incur additional costs for hiring and training replacements[33]. Environmental and Social Responsibility - The company emphasizes environmental principles and will continue to promote sustainable development through various measures[36]. - The company will regularly review its environmental principles and ensure compliance with relevant policies and regulations[36]. - The company is committed to providing the best customer experience for patients and actively seeks customer feedback through a patient survey system[38].

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately HKD 610.3 million, a decrease of 3.6% compared to HKD 632.9 million in 2021[41]. - The adjusted gross profit margin for 2022 was 45.2%, down from 50.1% in 2021[42]. - The net profit attributable to the company's owners for 2022 was HKD 89.5 million, compared to HKD 133.6 million in 2021, reflecting a decline of approximately 33%[17]. - The group's gross profit for the year ended December 31, 2022, was approximately HKD 270.8 million, a decrease of 13.3% compared to 2021[55]. - The total revenue for the year ended December 31, 2022, was HKD 610,291,000, a decrease of 3.6% compared to HKD 632,931,000 in 2021[121]. - The gross profit for the same period was HKD 270,844,000, reflecting a decline of 13.3% from HKD 312,545,000 in the previous year[121]. - Adjusted net profit after tax was HKD 101,232,000, down 26.3% from HKD 137,278,000 in 2021[121]. - The operating profit for the year ended December 31, 2022, was HKD 132,807 thousand, down from HKD 191,262 thousand in 2021, a decline of around 30.5%[145]. - The total comprehensive income for the year ended December 31, 2022, was HKD 3,286 thousand, significantly lower than HKD 64,726 thousand in 2021, a decrease of about 95.9%[145]. - The company reported a net loss of HKD 701,000 in 2022, compared to a net gain of HKD 1,572,000 in 2021[173]. Revenue Breakdown - Revenue from Germany for the year was approximately HKD 335.6 million, a decrease of about 16.9% compared to 2021, accounting for approximately 55.0% of total revenue[30]. - Revenue from the group's operations in China for the year ended December 31, 2022, was approximately HKD 98.4 million, a decrease of about 33.9% compared to 2021, accounting for approximately 16.1% of total revenue[56]. - Revenue from the group's operations in Denmark for the year ended December 31, 2022, was approximately HKD 65.1 million, a decrease of about 18.5% compared to 2021, accounting for approximately 10.7% of total revenue[57]. - Revenue from ICL implantation procedures was approximately HKD 71.8 million, a decrease of about 19.7% compared to 2021, accounting for approximately 12.0% of total surgical revenue[59]. - The revenue from the German segment for the year ended December 31, 2022, was HKD 407,249 thousand, while the Chinese segment generated HKD 149,012 thousand[156]. Operational Challenges - The company faced operational disruptions in China due to COVID-19, impacting outpatient consultations and surgery bookings[27]. - The company experienced a decline in revenue from crystal replacement surgeries in Germany, China, and Denmark, with decreases of approximately 9.3%, 37.8%, and 18.2% respectively[32]. - The company completed its first surgery at a new clinic in Copenhagen in March 2022 after a delay of approximately 60 days due to COVID-19 restrictions[28]. - The company recorded a significant increase in employee benefit expenses, which rose by 29.1% to HKD 140.9 million in 2022[39]. Future Plans and Expansion - The group plans to open its first clinic in Hong Kong in the second half of 2023, located in Causeway Bay[73]. - The group is constructing three new clinics in Germany, expected to commence operations in the second half of 2023[74]. - The group plans to establish satellite clinics in Beijing and Shanghai, which will enhance the utilization of existing surgical centers and penetrate high-potential cities[84]. - The second clinic in London is nearly completed and is set to begin trial operations in Q2 2023[104]. - The group is actively pursuing acquisition opportunities, particularly targeting renowned private ophthalmology clinics in Europe[75]. Financial Position - As of December 31, 2022, the current ratio was approximately 5.1, down from 6.7 in 2021[88]. - The group had no long-term borrowings as of December 31, 2022, compared to an asset-liability ratio of approximately 0.26% in 2021[89]. - The total assets of the company increased to HKD 1,541,040,000 as of December 31, 2022, compared to HKD 1,369,022,000 in 2021[130]. - Total liabilities rose to HKD 497,947,000, compared to HKD 328,545,000 in the previous year[131]. - The company reported a financial expense of HKD 10,737 thousand for the year ended December 31, 2022, compared to HKD 8,465 thousand in 2021, an increase of approximately 26.8%[145]. Shareholder Information - The company announced a dividend of HKD 0.09932 per share for the year ended December 31, 2021, totaling HKD 33.1 million, which was approved and paid in 2022[26]. - The company proposed a final dividend of HKD 0.06266 per share, totaling approximately HKD 20,880,818, subject to shareholder approval[114]. - The number of shares outstanding at the end of 2022 was 210,598,000, down from 480,411,000 in 2021, indicating a reduction of 56.1%[175].

Financial Performance - Revenue for the six months ended June 30, 2022, was €315,626 thousand, a decrease of 1.3% compared to €319,678 thousand in 2021[10] - Gross profit for the same period was €142,554 thousand, reflecting a decline of 10.8% from €159,825 thousand in 2021[10] - Adjusted gross profit was €144,279 thousand, down 11.7% from €163,367 thousand in the previous year[10] - Profit for the period decreased by 33.7% to €43,467 thousand, compared to €65,578 thousand in 2021[10] - Adjusted net profit after tax was €53,537 thousand, a decrease of 28.2% from €74,575 thousand in the prior year[10] - The company reported an adjusted gross margin of 45.7% for the first half of 2022, compared to 49.1% in the same period of 2021[10] - The adjusted net profit margin after tax was 17.0% for the six months ended June 30, 2022, down from 23.3% in 2021[10] - Total revenue for the six months ended June 30, 2022, was HKD 315,626, a decrease of 1.1% from HKD 319,678 in the same period of 2021[31] - Gross profit for the same period was HKD 142,554, down 10.8% from HKD 159,825 in 2021[31] - Operating profit decreased to HKD 72,770, a decline of 25.0% compared to HKD 96,922 in the previous year[31] - Net profit for the period was HKD 43,467, representing a decrease of 33.7% from HKD 65,578 in 2021[31] - EBITDA for the six months ended June 30, 2022, was HKD 114,584,000, compared to HKD 133,813,000 for the same period in 2021, reflecting a decline of approximately 14.4%[85] - The total expenses for the six months ended June 30, 2022, amounted to HKD 243,198,000, up from HKD 224,187,000 in 2021, which is an increase of 8.5%[111] Market Expansion and Future Outlook - The company is focusing on expanding its market presence and enhancing its service offerings in the eye care sector[10] - Future outlook includes plans for new clinic openings and potential acquisitions to drive growth[10] - The acquisition of London Vision Clinic Partners Limited is expected to contribute to growth targets as outlined in the share purchase agreement[192] Asset and Liability Management - Non-current assets increased to HKD 717,868 as of June 30, 2022, from HKD 412,186 at the end of 2021, representing a growth of 74.0%[26] - Total assets reached HKD 1,533,406, up from HKD 1,369,022 at the end of 2021, indicating an increase of 12.0%[26] - Total liabilities increased to HKD 531,355 as of June 30, 2022, compared to HKD 328,545 at the end of 2021, reflecting a growth of 62.0%[28] - Non-current liabilities rose to HKD 348,522, up from HKD 186,066, marking an increase of 87.2%[28] - Current liabilities totaled HKD 182,833, an increase of 28.4% from HKD 142,479 in the previous year[28] - The company’s total liabilities related to leases increased significantly, with minimum lease payments totaling HKD 332,385 million as of June 30, 2022, compared to HKD 243,990 million as of December 31, 2021, marking a 36.4% increase[162] Cash Flow and Investment Activities - Cash generated from operating activities was HKD 108,775,000, a decrease from HKD 143,592,000 in the previous period, reflecting a decline of approximately 24.3%[42] - The net cash used in investing activities amounted to HKD (118,166,000), significantly higher than HKD (16,567,000) in the prior period, indicating increased investment outflows[42] - The company reported a decrease in cash and cash equivalents of HKD (73,869,000), compared to an increase of HKD 89,882,000 in the previous period[42] - The company acquired a subsidiary for HKD (91,453,000), which contributed to the increase in cash outflows from investing activities[42] Shareholder Returns and Dividends - The company paid dividends totaling HKD (33,097,000) during the period, compared to HKD (9,838,000) in the same period last year, indicating a significant increase in dividend payouts[42] - Basic earnings per share decreased to HKD 14.029 for the six months ended June 30, 2022, down from HKD 19.829 in 2021, reflecting a decline of 29.5%[123] Operational Challenges - The COVID-19 pandemic and related control measures significantly affected operations in major Chinese cities, leading to a temporary suspension of business in Shanghai from late March to early June 2022[191] - Following the easing of strict COVID-19 measures in China, the group's business gradually returned to pre-COVID levels, with outpatient consultation volumes recovering[191] Segment Performance - The German segment generated revenue of HKD 181,794,000, while the Chinese segment contributed HKD 48,749,000, indicating a significant difference in performance across regions[85] - Revenue from vision correction services for the six months ended June 30, 2022, was HKD 313,086,000, a slight decrease of 1.85% from HKD 318,677,000 in the same period of 2021[99] - The Danish segment showed significant growth, with revenue increasing to HKD 54,088,000 in the first half of 2022 from HKD 33,741,000 in the previous year, marking a growth of 60.3%[97]

Financial Performance - Revenue for 2021 reached HKD 632,931,000, representing a 33.6% increase from HKD 473,818,000 in 2020[10] - Gross profit for the year was HKD 312,545,000, with a gross margin of 49.4%, up from 45.2% in the previous year[10] - Net profit for the year was HKD 132,384,000, compared to HKD 64,073,000 in 2020, reflecting a significant growth of 106.5%[10] - Adjusted net profit after tax was HKD 137,278,000, an increase from HKD 70,614,000 in 2020, indicating a growth of 94.4%[10] - Total assets increased to HKD 1,369,022,000 from HKD 1,314,181,000 in 2020, marking a growth of 4.2%[10] - The company’s equity attributable to owners rose to HKD 1,005,552,000, up from HKD 953,292,000 in 2020, a growth of 5.5%[10] - Basic earnings per share for 2021 was HKD 40.673, compared to HKD 19.935 in 2020, representing a 103.7% increase[10] - The adjusted earnings per share was HKD 42.163, up from HKD 21.859 in the previous year, reflecting a growth of 92.7%[10] Revenue Sources - Revenue from crystal replacement surgeries and ICL procedures grew by 39.7%, with prices for both types of surgeries increasing by 8.4%[27] - Revenue from Germany was approximately HKD 404.0 million, accounting for 63.8% of total revenue, and increased by 32.6% year-on-year[33] - Revenue from China was approximately HKD 149.0 million, representing 23.6% of total revenue, with a year-on-year increase of 37.8%[34] Expansion and Acquisitions - The company plans to continue expanding its market presence and invest in new technologies to enhance service offerings[20] - The acquisition of the London Vision Clinic in the UK was completed, enhancing the company's market position in refractive surgery[27] - The company plans to continue its expansion strategy to meet future demand for ophthalmic surgical treatments in Europe and China[28] - The acquisition of London Vision Clinic was completed for £13,130,000 (approximately HKD 138,211,632), with a potential maximum consideration of about £34,327,985 (approximately HKD 361,350,101) depending on adjustments and profit terms[43] - The company is actively pursuing acquisitions, particularly targeting renowned private ophthalmology clinics in Europe to expand its clinic network and enter new regions, focusing on emerging markets[87] Operational Efficiency - Future guidance indicates a focus on increasing operational efficiency and exploring potential acquisitions to drive growth[20] - The gross profit margin improved to 49.4% in 2021 from 45.2% in 2020, attributed to increased surgery volume and enhanced capacity utilization[54] - Adjusted gross profit rose by approximately 48.2% from HKD 214.1 million in 2020 to HKD 317.4 million in 2021, with an adjusted gross profit margin of about 50.1%[59] Employee and Administrative Expenses - Employee benefits accounted for approximately 34.1% of total sales costs in 2021, up from 31.5% in 2020, reflecting the increase in personnel due to business growth[50] - Sales expenses were approximately HKD 53.8 million in 2021, an increase of about 16.8% from the previous year, but the sales expense ratio decreased to 8.5% of total revenue[63] - Total administrative expenses increased by 14.0% to HKD 69,000,000 in 2021, up from HKD 60,491,000 in 2020[66] Future Projections - The company anticipates continued growth, projecting a revenue increase of 25% for the upcoming fiscal year, aiming for €187.5 million[101] - The company is expanding its market presence, with plans to open three new clinics in Germany and one in Denmark by the end of 2022[101] Research and Development - The company has invested €5 million in research and development for innovative ophthalmic solutions[101] - New product development includes the launch of advanced laser technology, expected to enhance surgical outcomes and patient satisfaction[101] Leadership and Governance - The company has a strong leadership team, including Jørn Slot Jørgensen as CEO and Markus Braun as CFO, focusing on overall strategic development and financial management[122] - The company has established a comprehensive compliance and governance framework to support its operational integrity[137] Risks and Challenges - Economic instability may affect the demand for vision correction services, potentially leading to a loss of customers unwilling to pay for premium services[153] - The company's success is significantly dependent on its brand and reputation, with risks associated with treatment errors and service defects[155] Dividend Policy - The company reported a final dividend of HKD 0.09932 per share, totaling approximately HKD 33,097,397, subject to approval at the upcoming annual general meeting[142] - The company has adopted a dividend policy where future annual dividends will not exceed 20% of the distributable net profits attributable to equity shareholders[146]