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].
希玛医疗(03309) - 2023 - 中期财报