德视佳(01846) - 2025 - 中期业绩

Company Information Board of Directors and Committee Composition This section details board members, committee roles, and recent personnel changes, including a CFO appointment and committee reshuffle - Dr. Markus Braun resigned as Executive Director and CFO; Mr. Marcus Huascar Bracklo reassigned as Executive Director and appointed CFO[6] - Review Committee member change: Mr. Marcus Huascar Bracklo no longer a member, Ms. Katherine Rong Xin appointed[6] Company Contact and Professional Advisors This section lists the company's registration, principal business location, share registrar, auditor, bankers, legal counsel, website, and stock code | Item | Details | | :--- | :--- | | Company Name | EuroEyes International Eye Clinic Limited | | Stock Code | 01846 | | Registered Address | Cayman Islands | | Hong Kong Principal Place of Business | 3/F, 2000 Plaza, 2-4 Russell Street, Causeway Bay, Hong Kong SAR, China | | Auditor | PricewaterhouseCoopers | | Company Website | www.euroeyes.com | Key Financial Highlights Financial Performance Overview For the six months ended June 30, 2025, revenue increased by 2.4% to HKD 377.1 million, gross profit by 5.9%, but profit for the period decreased by 12.7% | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 377,125 | 368,372 | 2.4 | | Gross Profit | 156,816 | 148,013 | 5.9 | | Adjusted Gross Profit | 156,816 | 158,146 | (0.8) | | Profit for the period | 40,405 | 46,309 | (12.7) | | Adjusted Net Profit after Tax | 38,817 | 62,285 | (37.7) | Non-IFRS Financial Measures This section presents adjusted gross profit and adjusted net profit after tax to exclude non-cash and one-off items, providing a clearer view of core business performance - Non-IFRS financial measures (adjusted gross profit and adjusted net profit after tax) are used to eliminate the impact of non-cash items and one-off events for better understanding and assessment of the Group's business performance and operating trends[12][14] | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Gross Profit | 156,816 | 148,013 | | Add: Pre-opening expenses | – | 9,746 | | Add: Share-based payment expenses | – | 387 | | Adjusted Gross Profit | 156,816 | 158,146 | | Profit for the period | 40,405 | 46,309 | | Add: Pre-opening expenses | – | 13,099 | | Add: Share-based payment expenses | – | 1,528 | | Add: Foreign exchange losses related to global offering proceeds | 513 | 323 | | Add: Acquisition-related costs | 628 | 2,469 | | Less: Gain on fair value change of contingent consideration payable | (2,729) | (1,443) | | Adjusted Net Profit after Tax | 38,817 | 62,285 | Independent Auditor's Report Scope of Review and Conclusion This section confirms the auditor's review of interim financial data under ISRE 2410, finding no material issues, while clarifying it is not an audit - Auditor reviewed interim financial information per ISRE 2410; scope is less than an audit, so no audit opinion is expressed[16] - Auditor found no matters suggesting interim financial information was not prepared in all material respects according to IAS 34 "Interim Financial Reporting"[17] Interim Condensed Consolidated Statement of Financial Position Overview of Assets, Equity, and Liabilities This section details the Group's financial position as of June 30, 2025, with total assets increasing by 13.3% to HKD 1,811.8 million, driven by growth in both current and non-current assets | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,811,810 | 1,599,435 | 13.28 | | Total Non-current Assets | 996,664 | 885,835 | 12.51 | | Total Current Assets | 815,146 | 713,600 | 14.23 | | Cash and Cash Equivalents | 741,782 | 653,232 | 13.56 | | Total Equity | 1,299,297 | 1,125,714 | 15.42 | | Total Liabilities | 512,513 | 473,721 | 8.19 | Interim Condensed Consolidated Statement of Comprehensive Income Revenue and Profit Performance This section shows a 2.4% revenue increase to HKD 377.1 million and 5.9% gross profit growth, but a 12.7% profit decrease, largely due to foreign exchange losses impacting net finance costs | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 377,125 | 368,372 | 2.4 | | Gross Profit | 156,816 | 148,013 | 5.9 | | Operating Profit | 72,554 | 65,741 | 10.36 | | Net Finance (Costs)/Income | (14,757) | 4,703 | -413.7 | | Profit for the period | 40,405 | 46,309 | (12.7) | | Total Comprehensive Income for the period | 202,230 | 32,341 | 525.3 | - Exchange differences on translation of overseas operations significantly increased from HKD 6.4 million in 2024 to HKD 83.5 million in 2025, leading to a substantial rise in total comprehensive income for the period[26] Interim Condensed Consolidated Statement of Changes in Equity Analysis of Changes in Equity This section explains the increase in total equity attributable to owners to HKD 1,264.8 million, mainly from other comprehensive income, despite lower profit and dividends - Total equity attributable to owners of the Company increased from HKD 1,092,965 thousand as of January 1, 2025, to HKD 1,264,762 thousand as of June 30, 2025[30] - Other comprehensive income (mainly currency translation reserve) contributed a growth of HKD 161,295 thousand, significantly impacting total equity[30][94] - Dividends of HKD 9,525 thousand were paid during the period[30] Interim Condensed Consolidated Statement of Cash Flows Cash Flow Overview This section summarizes cash flows, with operating cash slightly down, investing outflows reduced, financing outflows up, and period-end cash significantly boosted by exchange rate effects | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 101,605 | 102,999 | (1.35) | | Net cash used in investing activities | (34,656) | (53,243) | (34.92) | | Net cash used in financing activities | (65,509) | (57,628) | 13.68 | | Cash and cash equivalents at end of period | 741,782 | 689,561 | 7.57 | - Effect of exchange rate changes on cash and cash equivalents turned from a negative HKD 22.8 million in 2024 to a positive HKD 87.1 million in 2025[32] Notes to the Condensed Consolidated Financial Information 1 General Information This section describes the Group's core business of vision correction services across Germany, Denmark, the UK, and China, its Cayman Islands registration, and Hong Kong listing - The Group primarily provides vision correction services in Germany, Denmark, the UK, and China[33] - The Company is listed on The Stock Exchange of Hong Kong Limited, and this interim financial information is unaudited[33][34] 2 Basis of Preparation This section states that the condensed consolidated financial information is prepared under IAS 34 and should be read with the 2024 annual financial statements - This condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting"[35] - This report should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[35] 3 Accounting Policies This section confirms consistency with prior year accounting policies, notes the adoption of one new standard with no material impact, and highlights IFRS 18's expected effect on profit or loss presentation - Amendments to IAS 21 – Lack of Exchangeability adopted, with no significant impact on amounts recognized in prior or current periods[37] - IFRS 18 "Presentation and Disclosure in Financial Statements" is expected to affect the presentation of the statement of profit or loss[38] 4 Financial Risk Management This section addresses the Group's exposure to market, credit, and liquidity risks, detailing management strategies for each - The Group's business activities are exposed to market risks (including foreign currency risk and interest rate risk), credit risk, and liquidity risk[41] - If HKD depreciates/appreciates by 5% against EUR, profit after tax for the six months ended June 30, 2025, would increase/decrease by approximately HKD 4,286,000[42] Financial Liabilities Maturity as of June 30, 2025 | Financial Liabilities Maturity | Less than 1 year (HKD thousands) | 1 to 2 years (HKD thousands) | 2 to 5 years (HKD thousands) | Over 5 years (HKD thousands) | Total Contractual Cash Flows (HKD thousands) | Carrying Amount (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trade payables | 38,882 | – | – | – | 38,882 | 38,882 | | Accrued expenses and other payables | 16,916 | – | – | – | 16,916 | 16,916 | | Borrowings | 995 | – | – | – | 995 | 995 | | Contingent consideration payable | 47,780 | 6,657 | 6,657 | – | 61,094 | 58,185 | | Lease liabilities | 77,556 | 61,815 | 142,885 | 94,883 | 377,139 | 344,454 | | Total | 182,129 | 68,472 | 149,542 | 94,883 | 495,026 | 459,432 | - Contingent consideration payable is classified as a Level 3 financial liability, with fair value estimated by discounting future cash flows, primarily influenced by risk-adjusted discount rates and expected revenue growth rates[51][53][54] 5 Critical Accounting Estimates and Judgements This section explains that financial statement preparation involves continuous evaluation of estimates and judgments, consistent with the 2024 annual report - Estimates and judgments are continuously evaluated, and based on past experience and other factors (including expectations of future events considered reasonable in the circumstances)[57] - In preparing this condensed consolidated financial information, the critical judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024[58] 6 Segment Information This section divides the Group's operations into four reportable segments (Germany, China, Denmark, UK) and assesses their performance using key financial metrics - The Company's executive directors review the Group's performance by product and geography, identifying four reportable segments: Germany, China, Denmark, and the UK[61] Revenue by Segment for the six months ended June 30, 2025 | Segment | Revenue (HKD thousands) | % of Total Revenue | | :--- | :--- | :--- | | Germany segment | 206,083 | 54.6 | | China segment | 73,776 | 19.6 | | Denmark segment | 40,447 | 10.7 | | UK segment | 61,970 | 16.4 | | Total | 377,125 | 100.0 | Non-current Assets by Location | Non-current Assets by Location | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Germany | 393,600 | 313,225 | | UK | 339,134 | 306,300 | | China | 164,957 | 177,069 | | Denmark | 57,217 | 54,523 | | Total | 954,908 | 851,117 | 7 Revenue This section details the Group's revenue sources, primarily vision correction services, totaling HKD 377.1 million, with regional contributions and contract liabilities disclosed - Revenue generated from external customers primarily comes from providing vision correction services and leasing ophthalmic equipment and operating rooms[68] Revenue by Category | Revenue Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Provision of vision correction services | 373,343 | 364,492 | | Training services | 2,310 | 1,961 | | Leasing of ophthalmic equipment and operating rooms | 1,455 | 1,919 | | Sales of pharmaceutical products | 17 | – | | Total | 377,125 | 368,372 | Revenue by Origin | Revenue by Origin | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Germany | 200,932 | 201,122 | | Mainland China | 73,776 | 75,607 | | UK | 61,970 | 57,881 | | Denmark | 40,447 | 33,762 | | Total | 377,125 | 368,372 | - As of June 30, 2025, the balance of contract liabilities at period-end was HKD 18,925 thousand, an increase from the same period last year[74] 8 Expenses by Nature This section categorizes the Group's total expenses of HKD 310.9 million, identifying employee benefits, depreciation, and raw materials as major components | Expense Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Employee benefit expenses | 122,204 | 123,470 | | Depreciation of property, plant and equipment | 56,735 | 52,532 | | Raw materials and consumables | 46,846 | 52,074 | | Advertising and marketing expenses | 30,771 | 24,747 | | Utilities and property management expenses | 13,602 | 13,414 | | Clinic, office and consumable expenses | 12,276 | 9,924 | | Legal and other consulting service fees | 9,154 | 9,253 | | Repairs and maintenance | 6,245 | 6,308 | | Transportation costs | 5,749 | 5,119 | | Amortisation of intangible assets | 2,532 | 2,445 | | Doctors' fees | 2,335 | 2,581 | | Others | 2,402 | 3,565 | | Total | 310,851 | 305,432 | 9 Employee Benefit Expenses This section breaks down total employee benefit expenses of HKD 122.2 million, with wages and salaries as the largest component and no share-based payments this period | Expense Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Wages and salaries | 107,446 | 107,833 | | Contributions to defined contribution retirement schemes | 12,208 | 11,664 | | Employee benefits and housing schemes | 2,550 | 2,445 | | Share-based payments | – | 1,528 | | Total | 122,204 | 123,470 | 10 Other Net Income This section reports a significant increase in other net income to HKD 6.3 million, driven by gains on contingent consideration and asset disposals | Income Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Gain on fair value change of contingent consideration payable | 2,729 | 1,444 | | Gain/(loss) on disposal of property, plant and equipment | 1,643 | (93) | | Insurance compensation | 719 | 1,146 | | Others | 1,180 | 321 | | Total | 6,271 | 2,818 | 11 Net Finance Income and Costs This section explains the shift from net finance income to a HKD 14.8 million loss, primarily due to decreased interest income and increased foreign exchange losses | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Finance income | 7,853 | 13,023 | | Finance costs | (22,610) | (8,320) | | Net Finance (Costs)/Income | (14,757) | 4,703 | - Net finance costs turned from income in the prior period to a loss, mainly due to decreased interest income and a significant increase in net foreign exchange losses[78] 12 Income Tax Expense This section details the Group's income tax expense of HKD 17.4 million, a decrease from the prior year, mainly due to higher deferred income tax credits | Expense Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current income tax | 23,577 | 26,173 | | Deferred income tax credit | (6,185) | (2,038) | | Income Tax Expense | 17,392 | 24,135 | - The Group is subject to income tax in various jurisdictions (including Germany, Denmark, the UK, mainland China, and Hong Kong) with tax rates ranging from 8.25% to 32%[79] 13 Earnings Per Share This section presents basic and diluted earnings per share, both declining due to lower profit attributable to owners Basic Earnings Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HKD thousands) | 38,403 | 44,154 | | Weighted average number of ordinary shares in issue (thousands) | 320,053 | 331,701 | | Basic earnings per share (HK cents) | 11.999 | 13.311 | Diluted Earnings Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HKD thousands) | 38,403 | 44,154 | | Weighted average number of ordinary and potential ordinary shares in issue (thousands) | 320,093 | 331,958 | | Diluted earnings per share (HK cents) | 11.997 | 13.301 | 14 Dividends This section states the Board's recommendations for a final dividend for 2024 and an interim dividend for the first half of 2025 - The Board recommended a final dividend of HKD 0.0297 per ordinary share for the year ended December 31, 2024, totaling HKD 9,524,968, paid in June 2025[86] - The Board recommended an interim dividend of HKD 0.0315 per ordinary share for the six months ended June 30, 2025, totaling HKD 10,102,239, which was not recognized as a liability as of June 30, 2025[86] 15 Property, Plant and Equipment, Intangible Assets and Goodwill This section reports increases in the net book value of property, plant and equipment, intangible assets, and goodwill, influenced by additions and exchange differences Net Book Value | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net book value of property, plant and equipment at period-end | 623,777 | 599,801 | | Net book value of intangible assets at period-end | 32,773 | 33,688 | | Net book value of goodwill at period-end | 298,358 | 284,908 | - Additions to property, plant and equipment during the period were HKD 63,194 thousand, with exchange differences increasing by HKD 51,736 thousand[87] - Exchange differences on goodwill increased by HKD 44,951 thousand during the period[88] 16 Trade Receivables This section shows an increase in net trade receivables to HKD 14.2 million, primarily from short-term balances, with a slight rise in impairment provisions Trade Receivables | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Gross trade receivables | 14,973 | 5,469 | | Less: Impairment provision | (802) | (731) | | Net trade receivables | 14,171 | 4,738 | - Most of the Group's sales require upfront payments from customers, with the remaining balances primarily receivables from credit payments and insurance companies; all trade receivables are within 6 months[89] 17 Cash and Cash Equivalents This section details the increase in cash and cash equivalents to HKD 741.8 million, mainly bank cash, with applicable interest rates Cash and Cash Equivalents | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash on hand | 28 | 33 | | Bank cash | 741,754 | 653,199 | | Total | 741,782 | 653,232 | - For the period ended June 30, 2025, the Group earned interest on bank cash at floating bank deposit rates ranging from 0.00% to 2.30% per annum[90] 18 Share Capital This section reports the Company's issued and fully paid share capital of HKD 25.2 million, reflecting a decrease in total shares due to repurchased share cancellations Share Capital | Metric | Number of Shares 2025 | Number of Shares 2024 | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Balance at beginning of period (issued and fully paid) | 331,523,000 | 333,240,000 | 26,004 | 26,138 | | Shares cancelled | (10,817,000) | (300,000) | (841) | (23) | | Balance at end of period (issued and fully paid) | 320,706,000 | 332,940,000 | 25,163 | 26,115 | 19 Shares Held for Share Schemes This section discloses the number and value of shares held for share schemes, noting a significant decrease due to cancellations Shares Held for Share Schemes | Metric | June 30, 2025 Number of Shares | December 31, 2024 Number of Shares | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Shares held for share schemes | 1,203,861 | 6,803,861 | 5,985 | 30,826 | - During the period, the trustee acquired 5,217,000 shares and cancelled 10,817,000 shares[93] 20 Other Reserves This section explains the increase in total other reserves to HKD 164.0 million, largely driven by a substantial rise in the currency translation reserve Other Reserves | Reserve Category | June 30, 2025 (HKD thousands) | January 1, 2025 (HKD thousands) | | :--- | :--- | :--- | | Capital reserve – contributed surplus | 92,132 | 92,132 | | Capital reserve – share-based payments | 6,349 | 6,349 | | Currency translation reserve | 70,457 | (90,838) | | Other | (4,899) | (4,899) | | Total | 164,039 | 2,744 | - Currency translation reserve significantly increased by HKD 161,295 thousand due to exchange differences on translation of overseas operations[94] 21 Share-based Payments This section describes the restricted share award scheme, noting no new grants this period and 40,000 unexercised restricted shares remaining - The Company adopted a ten-year restricted share award scheme on March 19, 2020, to incentivize skilled and experienced personnel and recognize contributions[95] - No further share-based payments have been granted since 2025[97] - As of June 30, 2025, 40,000 restricted shares remained unexercised[98] 22 Trade Payables This section details the increase in trade payables to HKD 38.9 million, primarily due within three months Trade Payables Ageing | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 27,945 | 22,373 | | Over 3 months but not exceeding 6 months | 10,937 | 2,674 | | Total | 38,882 | 25,047 | - Trade payables are unsecured and typically settled within 6 months of recognition[99] 23 Borrowings This section reports the Group's borrowings of HKD 995 thousand, mainly short-term bank overdrafts, and available undrawn borrowing facilities Borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank overdrafts due within 1 year | 995 | 853 | Undrawn Borrowing Facilities (Floating Rate) | Undrawn Borrowing Facilities (Floating Rate) | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Due after one year | 9,214 | 8,127 | 24 Leases This section summarizes the Group's right-of-use assets of HKD 321.4 million and total lease liabilities of HKD 344.5 million, along with total lease payments Lease Assets and Liabilities | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Right-of-use assets | 321,392 | 298,107 | | Lease liabilities (current) | 74,391 | 67,859 | | Lease liabilities (non-current) | 270,063 | 250,574 | | Total lease liabilities | 344,454 | 318,433 | - Total cash outflow from leases for the six months ended June 30, 2025, was HKD 36,828 thousand[103] Changes in Lease Liabilities | Lease Liabilities Change | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Balance at beginning of period | 318,433 | 383,334 | | Lease payments | (36,828) | (35,528) | | Accrued interest | 4,457 | 5,238 | | Increase in right-of-use assets | 33,748 | 3,099 | | Lease modifications | (1,164) | – | | Exchange differences | 25,808 | (6,403) | | Balance at end of period | 344,454 | 349,740 | 25 Commitments This section confirms the absence of any significant contracted or authorized but uncontracted capital commitments for the Group - As of 2025 and 2024, the Group had no contracted but unprovided capital commitments, nor any capital commitments authorized by the Board but not contracted[106] 26 Related Party Transactions This section outlines various transactions with related parties, including lease payments, service provision, and goods sales/purchases, and key management compensation - Key related parties include Dr. Jørn Slot Jørgensen (ultimate controlling party), Dr Jørgensen und Kollegen GbR, and London Vision Clinic Limited[108] Related Party Transactions | Transaction Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Lease payments (London Vision Clinic Limited) | 2,589 | 2,533 | | Services provided to related parties | 642 | 1,435 | | Sales of goods to related parties (Dr Jørgensen und Kollegen GbR) | 9 | – | | Purchases of goods from related parties (Dr Jørgensen und Kollegen GbR) | 60 | – | Key Management Personnel Compensation | Key Management Personnel Compensation | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Salaries and other short-term employee benefits | 6,605 | 6,554 | | Share-based payments | – | 934 | | Directors' fees | 1,367 | 693 | | Total | 7,972 | 8,181 | 27 Events After the Reporting Period This section states that no significant events occurred after June 30, 2025, requiring adjustments or additional disclosures - No significant events occurred after June 30, 2025, that would require adjustment to or additional disclosure in this interim condensed consolidated financial information[113] Management Discussion and Analysis Business Review This section highlights the Group's record revenue of HKD 377.1 million, strong growth in lens exchange surgeries, increased EBITDA, but a decline in net profit due to foreign exchange losses - The Group's total revenue reached a new record of HKD 377.1 million, an increase of 2.4% from the previous year[114] - Revenue from lens exchange surgeries reached a new high of HKD 218.6 million during the period, an increase of 10.0% from the same period in 2024, accounting for 58.0% of the Group's total revenue[114][119] - The Group's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) returned to growth, increasing by 9.2% year-on-year to HKD 131.8 million[115] - Net profit attributable to equity holders of the Group decreased by 13.0% year-on-year to HKD 38.4 million, primarily due to non-cash translation losses from the appreciation of the Euro against RMB and HKD[115] Performance by Region This section details revenue and surgery type performance across Germany, China, the UK, and Denmark, noting regional growth trends - Germany's total revenue was HKD 200.9 million, with lens exchange surgery revenue soaring 2.8% to HKD 121.4 million, and Presbyond revenue jumping to HKD 3.6 million[116] - China's total revenue was HKD 73.8 million, a year-on-year decrease of 2.4%. Lens exchange surgery revenue surged 5.1% to HKD 46.6 million, and Presbyond surgery revenue climbed to HKD 1.8 million[117] - UK revenue was HKD 62.0 million, a strong year-on-year increase of 7.1%, mainly driven by the opening of the new flagship clinic in London. Lens exchange surgeries and ICL implantations respectively soared 141.3% and 55.7%[118] - Denmark's revenue was HKD 40.4 million, a year-on-year increase of 19.8%, with lens exchange surgery revenue climbing 21.8% to HKD 37.8 million[118] Performance by Surgery Type This section analyzes revenue contributions from different surgery types, highlighting lens exchange as the primary growth driver and subdued demand for myopia treatments - Revenue from lens exchange surgeries increased by 10.0% year-on-year to HKD 218.6 million, accounting for 58.0% of total revenue, serving as the primary growth driver[119] - Revenue from Presbyond laser blended vision surgery was HKD 17.9 million, accounting for 4.7% of total revenue, an increase from the previous year[120] - Revenue from ICL implantations decreased by 15.9% year-on-year to HKD 33.6 million, and refractive laser surgery revenue decreased by 7.7% year-on-year to HKD 92.2 million, reflecting subdued demand for myopia treatment[121][122] Outlook and Future Strategies This section outlines the Group's confidence in recovery and three growth pillars: enhancing presbyopia treatment leadership, maturing new clinics, and active M&A, targeting high CAGR - The Group expects to achieve a low-to-mid 10% organic compound annual growth rate (CAGR) for revenue, a high 10% organic EBITDA CAGR, and a low 20% organic net profit CAGR by 2028[123] - First organic growth pillar: enhancing market leadership in presbyopia treatment, especially trifocal lens exchange surgeries, with demand expected to continue increasing and be more resilient to economic downturns[124] - Second organic growth pillar: new clinics reaching maturity, with the London flagship clinic and new German clinics achieving monthly EBITDA break-even, anticipating significant profitability growth in the coming years[125] - External growth pillar: rapidly advancing M&A strategy, targeting reputable private eye clinics in Europe, not excluding the Americas, with more M&A deals expected to be announced in 2025[127] Financial Review This section presents a comprehensive analysis of the Group's financial performance, including revenue, costs, profits, financing, risks, and liquidity, along with global offering proceeds utilization 1. Revenue This section reports total revenue of HKD 377.1 million, a 2.4% increase, driven by strong growth in lens exchange surgeries across all regions - The Group's total revenue for the period was HKD 377.1 million, a year-on-year increase of 2.4%, primarily due to strong growth in lens exchange surgeries for presbyopia treatment across all four regions[129] Revenue by Origin | Revenue by Origin | 2025 (HKD thousands) | % of Total Revenue | | :--- | :--- | :--- | | Germany | 200,932 | 53.3 | | China | 73,776 | 19.6 | | UK | 61,970 | 16.4 | | Denmark | 40,447 | 10.7 | | Total | 377,125 | 100.0 | 2. Cost of Revenue This section details the cost of revenue at HKD 220.3 million, largely consistent with the prior year, with employee benefits and raw materials as key components - The Group's cost of revenue for the period was largely consistent with the previous year at HKD 220.3 million, mainly due to a 10.0% decrease in raw materials and consumables costs[132][133] - The largest components of cost of revenue remain employee benefit expenses (25.4% of total revenue) and raw materials and consumables (12.4% of total revenue)[131] 3. Gross Profit and Gross Margin This section provides a comparative analysis of gross profit and gross margin, including adjusted figures, showing a 5.9% increase in gross profit | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 156,816 | 148,013 | 5.9 | | Gross Margin | 41.6% | 40.2% | 1.4 percentage points | | Adjusted Gross Profit | 156,816 | 158,146 | (0.8) | | Adjusted Gross Margin | 41.6% | 42.9% | -1.3 percentage points | 4. Selling Expenses This section reports a 14.9% increase in selling expenses to HKD 41.8 million, primarily due to higher advertising and marketing costs - The Group's selling expenses were HKD 41.8 million, a 14.9% increase from 2024, primarily due to a 24.9% increase in advertising and marketing expenses[135][136] - Selling expenses as a percentage of the Group's total revenue increased from 9.9% last year to 11.1% this period[135] 5. Administrative Expenses This section states administrative expenses were HKD 48.8 million, consistent with the prior year, with a slight decrease as a percentage of total revenue - The Group's administrative expenses were HKD 48.8 million, largely consistent with last year's figures[137][138] - Administrative expenses as a percentage of the Group's total revenue slightly decreased from 13.2% last year to 12.9% this period[137] 6. Net Finance Income and Costs This section explains the shift to a net finance cost of HKD 14.8 million, driven by reduced interest income and increased foreign exchange losses - The Group's finance income was HKD 7.9 million, a 39.7% decrease from the same period in 2024, mainly due to lower interest rates on cash accounts[139] - Finance costs increased by 171.8% from HKD 8.3 million to HKD 22.6 million, primarily due to foreign exchange losses in the China segment caused by the appreciation of the Euro[139] 7. Borrowings This section details outstanding borrowings of approximately HKD 1 million, mainly short-term bank overdrafts, and notes the fixed-rate nature of borrowings - As of June 30, 2025, the Group had outstanding borrowings of approximately HKD 1 million, repayable within one year, mainly related to bank overdrafts[140] - Borrowings are denominated in GBP, and the Group's borrowings bear interest at fixed rates, so the risk exposure is not significant[141] 8. Foreign Exchange Risk This section discusses foreign exchange risk primarily from HKD-denominated cash and payables, quantifying the impact of EUR exchange rate fluctuations on profit - Foreign exchange risk primarily arises from the Company's cash and cash equivalents and other payables denominated in HKD[143] - If HKD depreciates or appreciates by 5% against EUR, profit after tax for the six months ended June 30, 2025, would increase/decrease by approximately HKD 4,286,000[143] - The Group had no exchange rate-related hedges as of June 30, 2025, but will closely monitor exchange rate fluctuation risks[143] 9. Pledge of Group Assets This section confirms that the Group had not pledged any of its assets as of the reporting dates - As of June 30, 2025, and December 31, 2024, the Group had not pledged its assets[144] 10. Capital Commitments This section states that the Group had no significant capital commitments as of June 30, 2025 - As of June 30, 2025, the Group had no significant capital commitments[145] 11. Contingent Liabilities This section identifies contingent consideration payable related to the acquisitions of London Vision Clinic Partners Ltd. and FreeVis GmbH - The Group's contingent consideration payable of approximately HKD 39.7 million is related to the acquisition of London Vision Clinic Partners Ltd[146] - The Group's contingent consideration payable of approximately HKD 18.5 million is related to the acquisition of FreeVis GmbH[146] 12. Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures This section reports no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, and joint ventures[147] 13. Significant Investments This section confirms that the Group made no significant investments during the six months ended June 30, 2025 - The Group had no significant investments for the six months ended June 30, 2025[148] 14. Major Investment or Capital Asset Plans This section states that the Group had no major investment or capital asset plans beyond those disclosed in the prospectus and related to property, plant, and equipment additions - Other than those disclosed in the prospectus and capital commitments related to additions to property, plant and equipment, the Group had no other major investment or capital asset plans[149] 15. Liquidity and Financial Resources This section describes the Company's funding sources, including operational cash and global offering proceeds, and reports on cash and cash equivalents and the current asset to liability ratio - The Company's primary sources of funds are cash generated from the Group's business operations and proceeds from the Company's global offering[150] - As of June 30, 2025, the Group's cash and cash equivalents were approximately HKD 741.8 million[150] - As of June 30, 2025, the Group's current asset to liability ratio (current assets divided by current liabilities) was approximately 3.8 times, while it was 4.7 times as of December 31, 2024[150] 16. Use of Proceeds from Global Offering This section details the planned and actual utilization of the HKD 660.66 million net proceeds from the global offering - The net proceeds from the Company's global offering were approximately HKD 660.66 million[152] Use of Net Proceeds | Use of Net Proceeds | Planned Use (HKD thousands) | Actual Use (HKD thousands) | Unutilized Net Proceeds (HKD thousands) | Expected Timeline for Full Utilization of Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | | For establishing clinics in major cities in China | 264,266 | 198,265 | 66,001 | Before December 31, 2026 | | For potential acquisitions of clinic groups in Europe | 218,019 | 213,231 | 4,788 | Before December 31, 2026 | | For increasing marketing efforts | 112,313 | 15,116 | 97,197 | Before December 31, 2026 | | Working capital and general corporate purposes | 66,066 | 1,503 | 64,563 | Before December 31, 2026 | | Total | 660,664 | 428,115 | 232,549 | | Other Information Results and Appropriations This section discloses the Group's results for the six months ended June 30, 2025, and confirms no significant changes in business or financial position since the 2024 annual report - There have been no significant changes in the development or future development of the Group's business and financial position since the publication of the Company's annual report for the year ended December 31, 2024[153] Interim Dividend This section announces the Board's resolution to declare an interim dividend of HKD 0.0315 per ordinary share, totaling approximately HKD 10.1 million - The Board has resolved to declare an interim dividend of HKD 0.0315 per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 10,102,239[154] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations This section details the shareholdings and interests of directors and the chief executive in the Company and its associated corporations Directors' and Chief Executive's Interests | Name of Director/Chief Executive | Capacity | Number of Shares Interested | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Dr. Jørn Slot Jørgensen | Interest of controlled corporation; beneficial owner and spouse's interest | 184,901,100 (L) | 57.65% | | Dr. Markus Braun | Beneficial owner | 283,000 (L) | 0.09% | | Mr. Jannik Jonas Slot Jørgensen | Beneficial owner | 6,529,500 (L) | 2.04% | | Professor Dan Zoltan Reinstein | Beneficial owner and spouse's interest | 2,424,000 (L) | 0.76% | | Mr. Marcus Huascar Bracklo | Beneficial owner | 928,000 (L) | 0.29% | Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company This section lists the interests and short positions of substantial shareholders in the Company's shares and underlying shares Substantial Shareholders' Interests | Name of Substantial Shareholder | Capacity | Number of Shares Interested | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Dr. Susanne Jørgensen | Beneficial owner and spouse's interest | 184,901,100 (L) | 57.65% | - Dr. Susanne Jørgensen is the spouse of Dr. Jørn Slot Jørgensen and is therefore deemed to be interested in the Company's shares held by Dr. Jørn Slot Jørgensen[159] Directors' Securities Transactions This section confirms that all directors fully complied with the Model Code for securities transactions during the reporting period - The Company has adopted the Model Code as the code of conduct for securities transactions by directors and relevant employees of the Company[162] - All directors have confirmed their full compliance with the required standards set out in the Model Code and their code of conduct regarding directors' securities transactions for the six months ended June 30, 2025[162] Share Option Scheme This section describes the 2019 share option scheme for employee incentives and talent retention, noting no options have been granted to date - The Company adopted a ten-year share option scheme on September 23, 2019, to reward, incentivize, recruit, and retain capable employees[163] - No share options have been granted under the scheme from the adoption date up to the date of this interim report[164] Restricted Share Award Scheme This section explains the 2020 restricted share award scheme for employee attraction and retention, with no new awards granted this period and 40,000 shares unexercised - The Company adopted a restricted share award scheme on March 19, 2020, as an incentive to attract, encourage, and retain directors and employees of the Group[165] - No share awards were granted under the restricted share award scheme for the six months ended June 30, 2025[165][167] - As of June 30, 2025, 40,000 restricted shares remained unexercised[167] Compliance with Corporate Governance Code This section states the Company's compliance with the Corporate Governance Code, acknowledging the combined roles of Chairman and CEO for leadership consistency - The Company has complied with the code provisions under Part 2 of the Corporate Governance Code, except for the roles of Chairman and Chief Executive Officer being combined in Dr. Jørn Slot Jørgensen[171] - The Board believes that Dr. Jørgensen's dual role as Chairman and Chief Executive Officer ensures consistent leadership for the Group after listing, enhancing overall strategic development effectiveness and efficiency[171] Public Float This section confirms the Company has maintained the required public float under the Listing Rules - The Company has maintained the public float required under the Listing Rules[173] Purchase, Sale or Redemption of the Company's Listed Securities This section reports the repurchase and cancellation of 5,211,000 shares for HKD 18.3 million, reflecting confidence in the Company - For the six months ended June 30, 2025, the Company repurchased a total of 5,211,000 shares on the Stock Exchange under the 2024 general mandate, for a total consideration of HKD 18,331,120[174][177] - The repurchased 5,211,000 shares were cancelled on February 28, 2025[177] - The Directors believe that the share repurchases reflect the Company's affirmation of its own value and confidence in the long-term prospects of the industry[175] Issue of Equity Securities or Sale of Treasury Shares This section states that no equity securities were issued or treasury shares sold for cash during the reporting period - For the six months ended June 30, 2025, the Company did not issue any equity securities (including securities convertible into equity securities) for cash or sell any treasury shares for cash[179] Material Events After the Reporting Period This section details post-reporting period changes in board members and authorized representatives, including a CFO resignation and new appointment - Dr. Markus Braun has tendered his resignation as Executive Director and Chief Financial Officer of the Company and ceased to be an authorized representative under the Listing Rules and the Companies Ordinance[181] - Mr. Marcus Huascar Bracklo has been re-designated from Non-executive Director to Executive Director and appointed as Chief Financial Officer and authorized representative[181] - Mr. Marcus Huascar Bracklo will cease to be a member of the Board's Audit Committee, and Ms. Katherine Rong Xin will be appointed as a member of the Audit Committee[181] Employees This section provides employee statistics, including 354 full-time staff and external medical professionals, and confirms no serious employment law violations - As of June 30, 2025, the Group had 354 full-time employees and engaged certain external surgeons, traditional ophthalmologists, and one senior management member[180] - The Group was not aware of any serious violations of employment-related laws and regulations for the six months ended June 30, 2025[180] Audit Committee This section confirms the Audit Committee's review of the unaudited interim results and agreement with the accounting treatments adopted - The Board's Audit Committee has reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, and had no disagreement with the accounting treatments adopted in preparing this report[181]