Revenue Performance - Refractive surgery services accounted for approximately 56.7% of total revenue for the year ended March 31, 2024, with SMILE surgery, LASIK, multifocal intraocular lens replacement, and implantable contact lens procedures included in this category[10]. - Revenue from implantable contact lens procedures increased from approximately HKD 7.2 million for the year ended March 31, 2023, to approximately HKD 21.8 million for the year ended March 31, 2024[11]. - Revenue from other eye treatment services decreased by approximately HKD 2.7 million or 4.6%, from approximately HKD 58.4 million for the year ended March 31, 2023, to approximately HKD 55.7 million for the year ended March 31, 2024[12]. - Revenue from diagnosis and examination services increased by approximately HKD 1.4 million or 13.6%, from approximately HKD 10.3 million for the year ended March 31, 2023, to approximately HKD 11.7 million for the year ended March 31, 2024[12]. - Revenue from the sale of prescription drugs and others increased from approximately HKD 7.3 million for the year ended March 31, 2023, to approximately HKD 7.7 million for the year ended March 31, 2024, representing about 3.4% and 4.0% of total revenue respectively[13]. - Revenue from refractive surgery decreased by approximately HKD 29.5 million or 21.4% from about HKD 137.8 million for the year ended March 31, 2023, to about HKD 108.3 million for the year ending March 31, 2024[23]. - Revenue from SMILE surgery dropped from approximately HKD 87.5 million for the year ended March 31, 2023, to about HKD 56.5 million for the year ending March 31, 2024, due to increased market competition[23]. - The company reported a loss of approximately HKD 75.8 million for the fiscal year ending March 31, 2024, compared to a loss of HKD 3.2 million for the previous year[60]. - The company's revenue for the fiscal year ended March 31, 2024, was HKD 190,933,000, a decrease of 10.7% compared to HKD 213,847,000 in the previous year[130]. - The revenue from children's myopia prevention and control was HKD 7,416,000, a new addition to the revenue streams[155]. Expenses and Financial Performance - Employee benefit expenses increased from approximately HKD 52.6 million for the year ended March 31, 2023, to approximately HKD 61.1 million for the year ended March 31, 2024, representing about 24.6% and 32.0% of total revenue respectively[16]. - Other expenses increased from approximately HKD 31.8 million for the year ended March 31, 2023, to approximately HKD 35.6 million for the year ended March 31, 2024, representing about 14.9% and 18.6% of total revenue respectively[20]. - The company recorded a pre-tax loss of approximately HKD 2.9 million for the year ended March 31, 2023, with a tax expense of about HKD 274,000 due to non-deductible expenses[36]. - The company recognized an impairment loss of approximately HKD 30.0 million related to property, plant, and equipment, and right-of-use assets for the fiscal year 2024, compared to no such loss in the fiscal year 2023[138]. - The company reported a significant depreciation expense of approximately HKD 15.9 million for property and equipment and HKD 21.5 million for right-of-use assets during the fiscal year[97]. - The company incurred impairment losses of approximately HKD 18.3 million for property, plant, and equipment, and HKD 11.7 million for right-of-use assets, recognized in the comprehensive income statement for the fiscal year ending March 31, 2024[53]. - The company recorded a tax credit of approximately HKD 6.1 million for the fiscal year ending March 31, 2024, resulting from a pre-tax loss of approximately HKD 81.9 million[59]. - Adjusted net loss for the year was HKD (45,744,000), an increase of 1,333.5% compared to HKD (3,191,000) in the previous year[130]. Strategic Initiatives and Market Position - The company plans to acquire equity interests in ophthalmology clinics, outpatient departments, or hospitals in China to expand its "Clear" brand business in the region[47]. - The company plans to identify suitable partners for collaboration and expansion to achieve sustainable growth and strengthen its position in the ophthalmic services market[93]. - The company plans to focus on cost-saving measures while maintaining service quality to drive sustainable growth and long-term returns for shareholders[148]. - The company aims to enhance shareholder value through strategic partnerships and market expansion initiatives[93]. - The company is dedicated to the long-term potential of its new business in children's myopia prevention despite the current financial challenges[147]. - The company is exploring innovative strategies to enhance its value proposition and diversify revenue sources while ensuring cost-effectiveness[153]. - The company plans to utilize the net proceeds of approximately HKD 181.9 million from its IPO for future projects as outlined in the prospectus[157]. Operational Changes and Challenges - The company identified two underperforming medical centers, one focused on children's myopia control, which has been operating at a loss since its establishment[19]. - The new medical center established in Tsim Sha Tsui in July 2023 has been operating at a loss since its inception, impacting the company's financial performance[147]. - The company is facing increased competition in the refractive surgery market, particularly with the SMILE procedure, leading to a more price-sensitive market[137]. - The local economic downturn and inflation have significantly affected consumer sentiment and spending, impacting the company's operations[146]. - To enhance operational efficiency, the company plans to relocate its Central Medical Center from 9 Queen's Road to New World Tower, with completion expected in the second half of 2024[134]. Management and Governance - The group has a strong management team with members holding significant positions in various listed companies, enhancing its strategic planning capabilities[81][83][86]. - The financial director, Mr. He Jian, has over 16 years of experience in auditing, financing, and internal control, ensuring robust financial reporting and planning for the group[90]. - The management team emphasizes the importance of independent oversight, with Mr. Li Hengjian serving as the chairman of the audit committee[87]. - The group is committed to maintaining high standards of corporate governance, as evidenced by the diverse backgrounds of its board members[88]. - The board has terminated the pre-IPO share option scheme to better allocate resources and has adopted a new share incentive plan[162]. Cash Flow and Capital Structure - As of March 31, 2024, the company maintained a net cash position with cash and cash equivalents amounting to HKD 141.4 million, down from HKD 207.5 million as of March 31, 2023[94]. - The net cash outflow from investing activities was approximately HKD 26.6 million for the fiscal year ending March 31, 2024, compared to an outflow of HKD 143.8 million in the previous year[74]. - The current ratio as of March 31, 2024, was 4.4 times, down from 5.8 times as of March 31, 2023[72]. - The asset-to-equity ratio is not applicable as the company is in a net cash position as of March 31, 2024[95]. - The company's capital structure is monitored based on the asset-to-liability ratio, which is calculated as net debt divided by total equity[94].
清晰医疗(01406) - 2024 - 年度财报