Financial Performance - For the year ended December 31, 2024, the Group reported revenue of HK$1,913,162,000, a slight decrease of 0.6% compared to HK$1,923,964,000 in 2023[14]. - The Group's gross profit decreased by 14.8% to HK$527,619,000 from HK$618,962,000 in 2023[14]. - The loss for the year attributable to equity holders of the Company was HK$135,163,000, a significant decline of 318.0% compared to a profit of HK$61,998,000 in 2023[14]. - Adjusted profit for the year increased by 11.9% to HK$89,410,000 from HK$79,916,000 in the previous year[14]. - Adjusted EBITDA rose by 2.5% to HK$344,211,000 compared to HK$335,794,000 in 2023[14]. - The gross profit margin decreased to 27.6% from 32.2%, reflecting a decline of 4.6 percentage points[14]. - The adjusted profit attributable to equity holders increased by 5.7% to HK$58.7 million in 2024, compared to HK$55.6 million in 2023[21]. - The adjusted profit attributable to equity holders of the Company for 2024 was HK$58.7 million, up from HK$55.6 million in 2023, while total revenue decreased to HK$1,913.2 million from HK$1,924.0 million[35][36]. - The overall loss for the Mainland China ophthalmic business decreased from HK$75.7 million in 2023 to HK$47.1 million in 2024, excluding impairment losses[50]. Revenue Breakdown - Core medical service revenue increased by 0.5% to HK$1,913,162,000 from HK$1,904,531,000 in the previous year[14]. - Revenue from the ophthalmic business decreased by 4.3% to HK$1.37 billion in 2024, primarily due to reduced demand for refractive surgeries[24]. - Revenue from Hong Kong decreased by 3.3% to HK$901.6 million in 2024 from HK$932.1 million in 2023, primarily due to cautious consumer trends[60]. - Revenue from ophthalmic services in Mainland China increased by 4.0% to HK$1,011.6 million in 2024 from HK$972.4 million in 2023, with a 6.1% increase in RMB terms[61]. - Revenue from dental services in Shenzhen surged by 20.8% to HK$464.6 million in 2024 from HK$384.7 million in 2023[65]. - Revenue from the use of Elderly Health Care Vouchers at Shenzhen CKJ Hospital amounted to HK$15.1 million from August 14 to December 31, 2024[53]. - Revenue from oncology and other medical services decreased to approximately HK$38.1 million, representing 2.0% of total revenue[91]. - Revenue from sales of vision aid products decreased by 3.8% to HK$156.4 million in 2024, mainly due to reduced demand in Mainland China[92]. Operational Challenges and Strategies - The Group faced challenges including a complex global macroeconomic environment and intense industry competition, prompting a refinement of business strategies[19]. - The Group aims to identify new avenues for growth amidst the evolving market landscape[19]. - The Group's operational strategy includes optimizing its organizational structure and refining management to improve profitability and efficiency[41][47]. - The company plans to invest in innovative healthcare solutions, including a fair value gain of HK$111.1 million from its investment in Health Hope Pharma Limited[30]. Capital Expenditures and Financial Position - Capital expenditures in 2024 totaled HK$444.7 million, primarily for the addition of right-of-use assets and equipment for hospitals and clinics[127]. - As of December 31, 2024, the Group's total capital commitments amounted to approximately HK$31.9 million, a decrease from HK$107.2 million in 2023, mainly related to property and hospital lease renovations in Shenzhen Ping Shan[133]. - The Group's debt-to-equity ratio is not applicable as of December 31, 2024, due to a net cash position, consistent with 2023[134]. - The Group reported cash and cash equivalents of HK$423.1 million, short-term bank deposits of HK$29.0 million, and bank borrowings of HK$29.2 million, with most borrowings denominated in US dollars, Renminbi, or Hong Kong dollars[155][158]. Future Outlook and Expansion Plans - The outlook for ophthalmic services in Hong Kong remains strong due to an aging population, while challenges persist in Mainland China's ophthalmic business due to changing consumer patterns[152]. - The Group plans to capitalize on business opportunities in the dental sector in Shenzhen and the medical business in Luohu, Shenzhen, driven by the trend of cross-border consumption[153]. - The C+ Health CKJ (Shenzhen) Hospital is set to open in January 2025, offering dental and multi-specialty medical services to meet the needs of Hong Kong's elderly population[28]. - A strategic agreement was signed for the construction of a "Hong Kong-style" private hospital near Luohu port, expected to open in January 2025[54]. Management and Governance - Dr. Dennis Lam has been appointed as a "Justice of the Peace" in Hong Kong since 2004 and has served as a Deputy of the National People's Congress of China since 2008[193]. - Ms. Li Xiaoting has been the general manager of the eye center in Hong Kong since January 2012 and the general manager of Shenzhen C-MER Hospital since March 2013[195]. - Dr. Lee Yau Wing Vincent has been practicing since January 2012 and is the Head of Hong Kong Operation[199].

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for the stock price over the next six months [6]. Core Insights - The company reported a revenue of HKD 1.913 billion for 2024, a slight decrease of 0.56% year-on-year, with a net loss attributable to shareholders of HKD 135 million, compared to a profit in the previous year [1][2]. - The gross margin decreased to 27.58%, down 4.59 percentage points year-on-year, primarily due to price reductions in ophthalmic surgeries and an increase in low-margin dental services [2]. - The company is focusing on expanding its dental business, which saw a revenue increase of 18.50% to HKD 507 million, driven by the mainland's healthcare policies [3][4]. - The company is undergoing a restructuring phase in 2024, with plans to close underperforming facilities while expanding its presence in the Greater Bay Area [4]. Financial Summary - The company expects revenues to grow to HKD 2.179 billion in 2025, with a projected net profit of HKD 75 million, reflecting a significant recovery from the current year's losses [5][10]. - The projected PE ratios for 2025, 2026, and 2027 are 26X, 21X, and 18X respectively, indicating a gradual improvement in profitability [4][10]. - The report highlights a projected gross margin recovery to 30.9% by 2025, suggesting improved operational efficiency [10].

Financial Performance - For the six months ended June 30, 2024, the core medical service revenue was HK$922.5 million, a slight decrease of 0.9% compared to HK$930.8 million in the same period last year[11]. - Profit attributable to equity holders of the Company increased by 3.4% to HK$30.8 million in 1H2024, up from HK$29.8 million in the same period last year[10]. - Excluding the profit from the sales of medical consumables segment, profit from core medical services increased by 31.7% to HK$30.8 million in 1H2024 compared to HK$23.4 million last year[10]. - Gross profit margin for 1H2024 was 31.3%, a decrease of 0.3 percentage points from 31.6% in 1H2023[8]. - Adjusted profit for the period attributable to equity holders of the Company was HK$48.6 million, representing a 54.0% increase from HK$31.6 million in the previous year[8]. - EBITDA for 1H2024 was HK$181.8 million, an increase of 11.8% compared to HK$162.6 million in 1H2023[8]. - The profit for the period was HK$48.6 million, a significant increase from HK$19.4 million in the same period last year, marking a 100% growth[8]. - Total revenue for 1H2024 was HK$922.5 million, a decrease of 2.9% from HK$950.3 million in the same period of 2023[24]. - Total revenue for the six months ended June 30, 2024, was HK$922,501,000, a decrease of 2.4% compared to HK$950,263,000 in 2023[79]. - Profit for the period for the six months ended June 30, 2024, was HK$30,763,000, compared to HK$37,997,000 for the same period in 2023, reflecting a decrease of approximately 19.3%[88]. Revenue Breakdown - Revenue from dental services in Shenzhen increased due to cross-border consumption trends among Hong Kong citizens[11]. - Revenue from the sales of COVID-19 related medical consumables dropped to zero in 1H2024 from HK$19.4 million in the same period last year due to relaxed testing requirements[15]. - Revenue from Hong Kong medical business decreased by 9.0% to HK$427.1 million in 1H2024 from HK$469.5 million in 1H2023[28]. - Revenue from Mainland China ophthalmic services and dental services increased by 7.4% to HK$495.4 million in 1H2024 from HK$461.4 million in 1H2023[29]. - Revenue from ophthalmic services in Mainland China decreased by 7.5% to HK$270.8 million in 1H2024 from HK$292.8 million in the same period last year[30]. - Revenue from dental services increased by 28.0% to HK$246.4 million in 1H2024 from HK$192.5 million in the same period last year[35]. - Revenue from sales of medical consumables was absent in 1H2024 compared to HK$19.4 million in the same period last year[35]. - Revenue generated by operations in Hong Kong accounted for 46.3% of total revenue in 1H2024, down from 51.4% in the same period last year[38]. - Revenue from Mainland China increased to 53.7% of total revenue for 1H2024, up from 48.6% in 1H2023, driven by a 33.3% growth in dental services revenue[39]. Cost and Expenses - Total cost of revenue decreased by 2.6% from HK$650.1 million in the first half of 2023 to HK$633.4 million in the first half of 2024[54]. - Gross profit for the first half of 2024 was HK$289.1 million, a decrease of 3.7% from HK$300.2 million in the same period last year, with a gross profit margin of 31.3%[57]. - Selling expenses decreased by 12.2% from HK$69.1 million in the first half of 2023 to HK$60.6 million in the first half of 2024, representing 6.6% of total revenue[58]. - Administrative expenses totaled HK$159.4 million in the first half of 2024, down 10.8% from HK$178.7 million in the same period last year[58]. - Employee costs rose to HK$266.0 million in 1H2024 from HK$244.2 million in the same period last year, despite a decrease in the number of employees from 2,221 to 2,192[66]. Cash Flow and Financial Position - Cash and cash equivalents stood at HK$465.3 million, with short-term deposits of HK$33.7 million and borrowings of HK$1.2 million as of June 30, 2024[69]. - Net cash generated from operating activities was HK$135.4 million in 1H2024, a decrease from HK$195.4 million in the same period of 2023, primarily due to increased working capital requirements[72][74]. - Net cash used in investing activities amounted to HK$73.4 million in 1H2024, down from HK$168.2 million in 1H2023, with approximately HK$84.0 million spent on property, plant, and equipment[73][74]. - Net cash used in financing activities was HK$103.7 million in 1H2024, slightly up from HK$102.3 million in 1H2023, including HK$32.7 million for share purchases and HK$71.8 million for lease payments[73][74]. - The Group maintained a net cash position as of June 30, 2024, with total borrowings of HK$1.2 million, down from HK$13.0 million in 2023, and an effective interest rate of 2.75%[72][74]. Strategic Developments - The company signed a strategic agreement for a "Hong Kong-style" private hospital near Shenzhen's Luohu port, expected to commence operations by the end of 2024[23]. - The new hospital will have a gross floor area of over 10,000 sq. m. and will include multiple medical departments[24]. - The Group operates a network of ten eye hospitals and multiple clinics in Mainland China, optimizing organizational structure and management[17]. - The Group's investment in Shenzhen C.K.J has positioned it to capitalize on the robust demand for quality dental services in the region[18]. - The Group plans to focus on expanding ophthalmic services in Hong Kong and Mainland China, while also enhancing cross-border medical services in Shenzhen[76][77]. Shareholder Information - The Group did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[143]. - The company paid dividends amounting to HK$200,000 during the period[86]. - The weighted average number of ordinary shares in issue decreased to 1,239,070,639 in 2024 from 1,258,860,726 in 2023, a decline of 1.6%[142]. - The number of treasury shares increased from 8,074,000 shares (HK$33,910,000) on June 30, 2023, to 22,822,000 shares (HK$79,318,000) on June 30, 2024, reflecting significant repurchases during the period[180]. Regulatory and Compliance - The interim condensed consolidated financial information has not been audited and is presented in Hong Kong Dollar (HK$), rounded to the nearest thousand (HK$'000)[92]. - The Group's financial risk management policies have not undergone any significant changes since December 31, 2023[99][101]. - The Group is assessing the financial impact of new and amended standards effective for the financial year beginning on or after January 1, 2025, but is not yet in a position to determine substantial changes[98].

Financial Performance - The company reported a revenue of HKD 922,501,000 for the six months ending June 30, 2024, a decrease of 2.9% compared to HKD 950,263,000 for the same period in 2023[2]. - The adjusted profit attributable to equity holders for the period was HKD 30,763,000, representing a 31.7% increase from HKD 23,351,000 in the previous year[5]. - The operating profit increased to HKD 73,423,000, up 35.6% from HKD 54,150,000 in the prior period[4]. - The EBITDA for the period was HKD 68,393,000, compared to HKD 57,173,000 for the same period last year, reflecting a significant growth[5]. - The company recorded a net profit of HKD 48,636,000 for the period, up 28.0% from HKD 37,997,000 in the previous year[5]. - The gross profit margin for the period was 31.3%, slightly down from 31.6% in the previous year[2]. - Total revenue for the first half of 2024 was HKD 922.5 million, a slight decrease of 2.9% compared to HKD 950.3 million in the same period of 2023[41]. - The company's profit attributable to equity holders for the first half of 2024 increased by 3.4% to HKD 30.8 million, compared to HKD 29.8 million in the same period last year[36]. Revenue Breakdown - Revenue from ophthalmology services decreased to HKD 586,873,000 from HKD 630,240,000 year-over-year[18]. - Dental services revenue increased significantly to HKD 246,400,000 from HKD 192,521,000, reflecting a growth of approximately 28%[18]. - Revenue from core medical services slightly decreased by 0.9% to HKD 922.5 million, down from HKD 930.8 million in the previous year[36]. - Revenue from Hong Kong medical services dropped by 9.0% to HKD 427.1 million, primarily due to a 6.6% decrease in ophthalmology services revenue[42]. - Revenue from mainland China increased by 7.4% to HKD 495.4 million, with an 11.8% increase when calculated in RMB[43]. - Revenue from dental services in Shenzhen rose by 33.3% to HKD 224.7 million, driven by increased cross-border consumption[46]. - Revenue from mainland China accounted for 53.7% of total revenue in the first half of 2024, up from 48.6% in the same period of 2023, due to a 33.3% increase in dental service revenue[50]. Expenses and Costs - Total expenses for the six months ended June 30, 2024, were HKD 853,372,000, down from HKD 897,920,000 in the same period last year, reflecting a decrease of approximately 5%[26]. - The total administrative expenses for the period were HKD 159,356,000, reflecting the costs associated with managing the diversified operations[21]. - Sales expenses reduced by 12.2% to HKD 60.6 million, down from HKD 69.1 million in the previous year[65]. - Financial expenses increased from HKD 0.4 million for the six months ended June 30, 2023, to HKD 4.8 million for the first half of 2024, primarily due to decreased bank deposit interest income and increased interest expenses on lease liabilities[69]. Assets and Liabilities - The company’s total assets as of June 30, 2024, were HKD 2,774,331,000, an increase from HKD 2,748,635,000 at the end of 2023[7]. - Total liabilities rose to HKD 773,325,000 from HKD 755,349,000, indicating a growth in financial obligations[10]. - Total equity as of June 30, 2024, is HKD 2,001,006,000, an increase from HKD 1,993,286,000 as of December 31, 2023[8]. Strategic Initiatives - The company plans to expand its market presence and invest in new product development to drive future growth[3]. - The company plans to diversify its operations further, with a new reporting structure effective January 1, 2024, focusing on five reportable segments[21]. - The company plans to focus on ophthalmic services in Hong Kong and cities in mainland China, while further developing cross-border medical services in Shenzhen, including establishing a hospital in Luohu[74]. - The company has opened a new dental hospital near the Luohu and Futian border, enhancing its business expansion strategy[39]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[33]. - The board does not recommend any interim dividend for the six months ended June 30, 2024[75]. Other Financial Information - The income tax expense for the period was HKD 19,757,000, slightly up from HKD 19,176,000 in the previous year[29]. - Basic earnings per share increased to HKD 2.48 from HKD 2.36, representing a growth of approximately 5.1%[31]. - The company recorded a loss from joint ventures of HKD 241,000 for the six months ended June 30, 2024[21]. - The company is currently evaluating the financial impact of new accounting standards that will take effect in future fiscal years[17].

Summary of the Conference Call Company and Industry Involved - The conference call involved Huayan Yier and featured leadership from Xima Yanke, indicating a focus on the technology or media industry, particularly in the context of strategic communication and performance review. Core Points and Arguments - The call was hosted by Huayan Yier, with Chen Jiawei as the editor, indicating a structured approach to investor relations and communication [1] - Leadership from Xima Yanke, represented by Qin Sun, was invited to discuss company performance and future strategies, highlighting the importance of leadership insights in investor communications [1] Other Important but Possibly Overlooked Content - The event was framed as a summer promotional strategy meeting, suggesting a focus on marketing and outreach efforts during a specific season, which may impact investor sentiment and company visibility [1]

Summary of the Conference Call Company Overview - The conference call was hosted by Huayan Yier and featured leadership from Ximayan Technology, indicating a focus on the technology sector [1] Core Points and Arguments - The call began with an introduction by the host, who expressed enthusiasm for the participation of Ximayan's leadership, suggesting a positive outlook on the company's performance and future strategies [1] - The leadership of Ximayan, represented by Qin Sun, was invited to provide a review of the company's performance and discuss future strategies, indicating a focus on transparency and communication with investors [1] Additional Important Content - The mention of a summer strategy meeting suggests that the company is actively engaging with investors to discuss strategic initiatives, which may indicate a proactive approach to market conditions [1]

Financial Performance - Revenue for the year ended December 31, 2023, reached HK$1,923,964,000, an increase of 11.1% compared to HK$1,731,903,000 in 2022[6]. - Core medical service revenue increased by 32.9% year-on-year to HK$1,904,531,000, marking a record high since the company's listing[13]. - Gross profit rose to HK$618,962,000, reflecting a 38.3% increase from HK$447,697,000 in the previous year[7]. - Profit before income tax was HK$124,269,000, a significant recovery from a loss of HK$11,227,000 in 2022[7]. - Net profit for the year was HK$86,335,000, compared to a loss of HK$46,225,000 in the prior year[7]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 52.4% to HK$343,491,000 from HK$225,351,000[8]. - The gross profit margin improved to 32.2%, up 6.3 percentage points from 25.9% in 2022[9]. - Total revenue for the Group rose by 11.1% to HK$1,924.0 million in 2023, compared to HK$1,731.9 million in 2022, despite a significant drop in COVID-19 related medical consumables revenue[33]. Business Segments - The Group's ophthalmic business achieved a record revenue of HK$1.43 billion, representing a year-on-year growth of 15.7%[13]. - Core medical business revenue reached HK$1.9 billion, a year-on-year increase of 32.9%[14]. - Ophthalmic business revenue amounted to HK$1.43 billion, representing a year-on-year growth of 15.7%[15]. - Dental business revenue surged to HK$428.1 million, reflecting a year-on-year increase of 161.3%[18]. - Shenzhen CKJ's dental revenue rose to HK$380 million, marking a year-on-year growth of 208%[18]. - Revenue from the Mainland China ophthalmic and dental services increased by 54.9% to HK$972.4 million in 2023, compared to HK$627.9 million in 2022, with a 62.8% increase in RMB terms[49]. Market Expansion and Strategy - The Group plans to establish the Aikangjian Fukang Hospital in Luohu Port, covering an area of over 10,000 sq.m., focusing on ophthalmic and dental services, with operations commencing in phases from the second half of 2024[25][26]. - The Group aims to integrate Hong Kong's medical services with Mainland China, enhancing the quality of cross-border medical services and supporting Hong Kong residents seeking medical care in the Mainland[27]. - The Group aims to establish or acquire eye hospitals and dental clinics in Hong Kong, Shenzhen, and selected cities in Mainland China, leveraging favorable policies in the medical industry[112]. - The Group is actively seeking strategic partners for the development and distribution of myopia control products[115]. Operational Highlights - Shenzhen CKJ registered over 240,000 patient visits in 2023, with approximately 50% from Hong Kong[18]. - The average revenue per dental chair at Shenzhen CKJ reached HK$1.75 million in 2023[18]. - The Group operates a comprehensive ophthalmic services network in Hong Kong, including five day surgery centres and eight satellite clinics, under the brand "C-MER Dennis Lam"[34]. - The Group's operational adjustments and focus on core business segments have ensured a robust balance sheet amid challenging macroeconomic conditions[35]. Financial Management - The Group's strategy includes prudent management of working capital to maintain a healthy balance sheet while focusing on core business segments[33]. - The income tax expense for 2023 was HK$37.9 million, an increase of 8.3% from HK$35.0 million in 2022, primarily due to higher tax expenses from operations in Mainland China[93]. - The Group's credit risk is limited as cash and cash equivalents are held with high-credit-quality financial institutions[105]. - The current ratio improved to 1.85 times as of December 31, 2023, compared to 1.63 times in 2022, indicating better short-term financial health[117]. Shareholder Returns and Capital Management - The Board does not recommend the payment of a final dividend for the year ended December 31, 2023[178][181]. - The Group has adopted a dividend policy aimed at maintaining sufficient operating capital while providing stable and sustainable returns to shareholders[179]. - The company repurchased a total of 10,998,000 ordinary shares at an aggregate consideration of HK$41,631,058 during the year[194]. - The share repurchases were intended to enhance the net asset value per share and/or earnings per share of the company[195]. Management and Governance - Dr. Lin Shun Chao, the founder and CEO, has led the company for over ten years since its establishment[146]. - The company has expanded its management team with experienced professionals in ophthalmology and healthcare management[152]. - The Group's Chief Financial Officer, Mr. Chan Wa Ping, has over 10 years of financial and accounting experience and oversees finance, compliance, mergers and acquisitions, and investor relations[172]. - The management team has a strong academic background, with members holding advanced degrees in medicine and business administration[149][152]. Risks and Compliance - Key risks include reputation risk, customer risk, regulatory risk, price risk, and talent risk, which could materially affect the Group's operations and financial condition[184][185]. - The company complied with all relevant laws and regulations in Hong Kong, Mainland China, and the Cayman Islands in all material aspects during 2023[192]. - The company has established systems for environmental protection, ensuring compliance with environmental laws and regulations[192].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,923,964, representing an increase of 11.1% compared to HKD 1,731,903 in 2022[2] - Core medical services revenue increased by 32.9% to HKD 1,904,531 from HKD 1,433,561 in the previous year[2] - Gross profit rose by 38.3% to HKD 618,962, with a gross margin of 32.2%, up from 25.9% in 2022[2][4] - The company reported a net profit of HKD 86,335, a significant recovery from a loss of HKD 46,225 in 2022[3][4] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 52.4% to HKD 343,491 from HKD 225,351 in the prior year[2] - The net profit margin for the year was 4.5%, compared to a negative margin in the previous year[2] - Basic earnings per share improved to HKD 4.94 in 2023 from a loss of HKD 1.77 in 2022[31] Revenue Breakdown - Revenue from ophthalmology services reached HKD 1,266,248,000, up 17.8% from HKD 1,074,301,000 in the previous year[15] - Dental services revenue increased significantly to HKD 428,098,000, compared to HKD 163,853,000 in 2022, marking a growth of 160.7%[15] - Revenue from COVID-19 related medical supplies decreased significantly from HKD 298.3 million in 2022 to HKD 19.4 million in 2023[38] - Revenue from the Beijing ophthalmology hospital increased by 67.2% to HKD 100.2 million in 2023[46] - Revenue from the acquired Kunming and Zhuhai ophthalmology hospitals contributed HKD 67.6 million and HKD 42.8 million respectively in 2023[47] - The contribution of Hong Kong to total revenue decreased from 63.7% in 2022 to 49.5% in 2023, primarily due to reduced sales of COVID-19 related medical supplies[51] Assets and Liabilities - Cash and cash equivalents decreased to HKD 512,762 from HKD 644,698 in 2022[8] - Total assets decreased to HKD 2,748,635 from HKD 2,901,687 in the previous year[9] - Total liabilities decreased to HKD 755,349 from HKD 903,448 in 2022, indicating improved financial stability[9] - Total non-current assets as of December 31, 2023, were valued at approximately HKD 1,807,346,000, down from HKD 1,892,072,000 in 2022[22] Operational Highlights - The company plans to continue expanding its core medical services and exploring new product development opportunities in the upcoming year[3] - The company operates six dental clinics, three general clinics, and one oncology center in Hong Kong as of December 31, 2023[39] - The company operates nine ophthalmology hospitals and two ophthalmology centers in mainland China, with a new hospital in Foshan starting operations in August 2023[41] - The company plans to establish or acquire ophthalmology hospitals, centers, and clinics in selected cities in Hong Kong, Shenzhen, and mainland China, including the Greater Bay Area[80] Future Outlook - Future outlook remains positive with expectations of continued growth in both ophthalmology and dental service sectors[18] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[19] - The company aims to enhance its operational capabilities and service capacity while seeking strategic partners to develop, produce, and distribute products related to myopia prevention[80] Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with 2022[34] - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023[108] - The annual general meeting will be held on May 28, 2024, and shareholders must ensure their documents are submitted by May 22, 2024, to be eligible to vote[109] Corporate Governance - The board of directors believes that having the same individual serve as both chairman and CEO enhances the company's efficiency and effectiveness in strategy formulation and execution[81] - The audit committee has reviewed the financial statements and discussed risk management and internal controls with management[97] Capital Expenditures and Funding - Capital expenditures amounted to HKD 224.2 million in 2023, mainly for the acquisition of right-of-use assets and renovation of leased properties[72] - The company raised approximately HKD 490.6 million from the first subscription, with a net subscription price of about HKD 6.41 per share[92] - The proceeds from the first subscription are intended for acquisitions and general operational funding[95] Share Repurchase - The company repurchased a total of 10,998,000 ordinary shares at a total cost of HKD 41,631,058 during the year ended December 31, 2023[101] - The board believes that the share repurchase is in the best interest of the company and its shareholders, potentially enhancing the net asset value per share and/or earnings per share[102]

Revenue and Profitability - Revenue for the six months ended June 30, 2023, increased by 7.8% to HK$950.3 million from HK$881.6 million in the same period last year[6]. - Core medical service revenue rose by 40.9% to a record high of HK$930.8 million, up from HK$660.8 million year-on-year[8]. - Gross profit increased by 22.0% to HK$300.2 million compared to HK$246.0 million in the previous year[6]. - Profit for the period surged by 971.8% to HK$38.0 million from HK$3.5 million in the same period last year[6]. - Profit attributable to equity holders of the Company increased by 100.9% to HK$29.8 million from HK$14.8 million year-on-year[6]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 18.6% to HK$170.7 million from HK$143.9 million[6]. - Gross profit margin improved to 31.6%, up from 27.9% in the previous year, reflecting a 3.7 percentage point increase[6]. - Net profit margin increased to 4.0%, a rise of 3.6 percentage points from 0.4% year-on-year[6]. Revenue Breakdown - Revenue from sales of COVID-19 related medical consumables decreased significantly by 91.2% to HK$19.4 million from HK$220.7 million[9]. - Revenue from medical services in Hong Kong increased by 29.3% to HK$469.5 million in 1H2023, compared to HK$363.1 million in the same period last year[18]. - Ophthalmic services revenue in Mainland China rose by 17.5% to HK$292.8 million in 1H2023, up from HK$249.2 million year-on-year[16]. - Dental services revenue in Mainland China experienced a significant increase of 247.2% to HK$168.6 million in 1H2023, compared to HK$48.6 million in the same period last year[16]. - Revenue from ophthalmic services rose by 23.4% to HK$630.2 million in 1H2023, up from HK$510.9 million in the same period last year[27]. - Revenue from dental services surged by 194.9% to HK$192.5 million in 1H2023, compared to HK$65.3 million in the same period last year, driven by the reopening of the border between Hong Kong and Shenzhen[27]. - Revenue from the eye hospital in Beijing increased by 66.3% to HK$48.9 million in 1H2023, up from HK$29.4 million in the same period last year[22]. - Revenue from the eye hospital in Shanghai grew by 28.2% to HK$26.8 million in 1H2023, compared to HK$20.9 million in the same period last year[22]. - Revenue from the eye hospital in Futian, Shenzhen increased by 8.0% to HK$110.9 million in 1H2023, up from HK$102.7 million in the same period last year[20]. - Revenue from the eye hospital in Baoan, Shenzhen decreased by 20.9% to HK$25.5 million in 1H2023, down from HK$32.2 million in the same period last year[20]. - Revenue from the two acquired eye hospitals in Kunming and Zhuhai contributed HK$34.9 million and HK$20.7 million, respectively, in 1H2023[23]. Operational Highlights - The strong rebound in demand for ophthalmic and dental services in Hong Kong and Mainland China contributed to the overall revenue growth[8]. - The new eye hospital in Foshan commenced full operations in late August 2023, enhancing the service network in the Guangdong-Hong Kong-Macao Greater Bay Area[12]. - The company has expanded its operations to include dental, oncology, and clinical research services since 2021, with six dental clinics and an oncology center established in Hong Kong[11]. - Total surgery fees in Hong Kong increased by 19.6% to HK$235.6 million, with the number of surgeries performed rising by 13.4% to 8,360[37]. - Total surgery fees in Mainland China rose by 23.2% to HK$176.1 million, with surgeries performed increasing by 24.7% to 12,686[37]. - The number of surgeries in Mainland China rose by 24.7% to 12,686 in 1H2023, driven by increased surgeries in eye hospitals in Beijing, Shanghai, and Guangzhou[38]. Financial Position - The Group had cash and cash equivalents of HK$563.1 million and short-term deposits of HK$11.5 million as of June 30, 2023, with borrowings of HK$13.0 million, down from HK$34.3 million in 2022[57][58]. - The effective interest rate of borrowings was 4.71% per annum as of June 30, 2023, compared to 5.49% in 2022[58][59]. - The Group's gearing ratio is not applicable due to a net cash position as of June 30, 2023[54]. - The Group's total borrowings as of June 30, 2023, were all repayable on demand or within one year[58]. - As of June 30, 2023, the current ratio improved to 1.94 times compared to 1.63 times as of December 31, 2022[60]. - Net current assets increased to HK$363.4 million as of June 30, 2023, up from HK$331.8 million as of December 31, 2022[60]. - Total assets as of June 30, 2023, decreased to HK$2,706,033, down from HK$2,901,687 as of December 31, 2022, representing a decline of approximately 6.7%[69]. - Total liabilities decreased to HK$732,876 as of June 30, 2023, from HK$903,448 as of December 31, 2022, reflecting a decrease of approximately 18.9%[70]. Expenses and Costs - Cost of revenue increased by 2.3% to HK$650.1 million, primarily due to higher doctors' consultation fees and staff salaries[46]. - Selling expenses increased by 26.9% to HK$69.1 million in 1H2023, representing 7.3% of total revenue, up from 6.2% in the previous year[51]. - Administrative expenses rose by 12.2% to HK$178.7 million, driven by increased employee salaries and benefits due to business expansion[51]. - Employee benefit expenses rose to HK$250,122,000 in 2023 from HK$201,222,000 in 2022, an increase of 24.3%[123]. Shareholder Information - Earnings per share for equity holders increased to HK$2.36 in 1H2023 from HK$1.21 in 1H2022[65]. - The company paid dividends totaling HK$3,000,000 during the period, maintaining a commitment to return value to shareholders[78]. - No interim dividend was recommended for the six months ended June 30, 2023, consistent with the previous year[133]. Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[88]. - There have been no significant changes in the financial risk management policies since 31 December 2022[88]. - The Group's financial risk management policies showed no material changes since December 31, 2022[90]. Future Plans - The Group plans to establish or acquire eye hospitals and clinics in Hong Kong, Shenzhen, and selected cities in Mainland China to capitalize on market opportunities[64]. - The Group aims to improve operational capacity and service capability to meet increasing demand for quality medical services[64]. - The Group plans to continue expanding its services in both the ophthalmic and dental sectors in Mainland China, leveraging its established market presence[107].

Revenue Performance - Revenue for the six months ended June 30, 2023, was HKD 950,263, an increase of 7.8% compared to HKD 881,564 in 2022[2] - Total revenue for the first half of 2023 increased by 7.8% to HKD 950.3 million compared to HKD 881.6 million in the same period of 2022[42] - Revenue from core medical services grew by 40.9% to HKD 930.8 million, driven by strong demand for ophthalmic and dental services post-COVID-19[34] - Revenue from ophthalmology services generated HKD 630,240,000, up 23.2% from HKD 510,871,000 in the previous year[16] - Revenue from dental services increased significantly to HKD 192,521,000, compared to HKD 65,291,000, reflecting a growth of 194.5%[16] - Revenue from Shenzhen Aikangjian increased 247.2% to HKD 168.6 million, up from HKD 48.6 million in the same period last year[40] - Revenue from Hong Kong's medical services increased 29.3% to HKD 469.5 million, compared to HKD 363.1 million in the same period last year[38] Profitability - Profit attributable to equity holders for the period surged to HKD 37,997, a remarkable increase of 971.8% from HKD 3,545 in 2022[2] - The company reported a net profit of HKD 37,997,000 for the six months ended June 30, 2023, compared to HKD 3,545,000 in the same period of 2022, representing a substantial increase[19] - Net profit margin for the period was 4.0%, an increase of 3.6 percentage points compared to 0.4% in 2022[2] - Basic earnings per share rose to HKD 2.36, up from HKD 1.21, reflecting a growth of 95.0% year-over-year[27] Cost and Expenses - Total administrative expenses increased to HKD 178,721,000 for the six months ended June 30, 2023, from HKD 159,227,000 in the same period of 2022, marking an increase of approximately 12.3%[18][19] - Selling expenses rose by 26.9% to HKD 69.1 million, primarily due to increased promotional costs in mainland China[60] - Total sales costs increased by 2.3% to HKD 650.1 million in the first half of 2023, compared to HKD 635.5 million for the same period in 2022[57] Asset and Equity - Total assets as of June 30, 2023, were HKD 2,706,033, down from HKD 2,901,687 at the end of 2022[7] - Total equity decreased to HKD 1,973,157 from HKD 1,998,239 at the end of 2022[8] Segment Performance - The segment performance for the Hong Kong medical business showed a profit of HKD 59,516,000, while the mainland dental business reported a loss of HKD 41,290,000[18] - Revenue from medical consumables decreased significantly by 91.2% to HKD 19.4 million from HKD 220.7 million in the previous year[42] - The revenue contribution from Beijing Eye Hospital grew 66.3% to HKD 48.9 million, up from HKD 29.4 million year-on-year[39] Cash Flow and Financial Management - Operating cash flow generated in the first half of 2023 was HKD 195.4 million, up from HKD 99.7 million in the same period of 2022, driven by business scale expansion[67] - Financial costs decreased significantly to HKD 403,000 for the six months ended June 30, 2023, from HKD 8,335,000 in the same period of 2022, indicating improved financial management[23] Investments and Future Plans - The company invested approximately HKD 152.9 million in acquiring subsidiaries and HKD 44.6 million in purchasing properties, plants, and equipment during the first half of 2023[68] - The company aims to enhance its operational capabilities and service capacity while seeking strategic partners for the development and distribution of myopia control products[68] - The company plans to establish or acquire ophthalmology hospitals and dental clinics in selected cities in Hong Kong, Shenzhen, and mainland China, including the Greater Bay Area[68] Market and Operational Expansion - The company has expanded its dental and oncology services in Hong Kong, including six dental clinics and three general clinics since 2021[35] - The company is expanding its ophthalmology service network in the Guangdong-Hong Kong-Macao Greater Bay Area with a new hospital in Foshan, operational since August 2023[36] - The company aims to accelerate network expansion in the Greater Bay Area and enhance research and development in related medical devices and therapies through the strategic investment partnership[80]