Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. C-MER Medical Holdings Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability ) (Stock Code: 3309 ) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025 FINANCIAL HIGHLIGHTS Six months ended 30 June Note 2025 2024 Change HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue 944,325 922,501 2.4% Gross profit 293,905 289,125 1.7% Profit for the period 56,154 48,636 15.5% Profit for the period attributable to equity holders of the Company 49,944 30,763 62.4% Non-HKFRS Measures: Adjusted profit for the period 1 77,531 58,323 32.9% Adjusted profit for the period attributable to equity holders of the Company 2 69,636 39,909 74.5% Gross profit margin (%) 31.1% 31.3% (0.2)pp Net profit margin (%) 5.9% 5.3% 0.6pp Notes: 1. We define “adjusted profit for the period” as profit for the period adjusted by the loss from the Mainland China other business segment. 2. We define “adjusted profit for the period attributable to equity holders of the Company” as profit for the period attributable to equity holders of the Company adjusted by the loss attributable to equity holders of the Company from the Mainland China other business segment.
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– 2 – The board (the “Board”) of directors (the “Directors”) of C-MER Medical Holdings Limited (the “Company”) is pleased to announce the unaudited interim consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 30 June 2025, together with the comparative figures for the six months ended 30 June 2024, as follows: INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended 30 June 2025 2024 Note HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue 4 944,325 922,501 Cost of revenue 7 (650,420) (633,376) Gross profit 293,905 289,125 Other income 5 3,160 2,234 Selling expenses 7 (63,486) (60,640) Administrative expenses 7 (165,413) (159,356) Other gains, net 6 13,091 2,060 Operating profit 81,257 73,423 Finance income 8 8,559 7,463 Finance costs 8 (13,151) (12,252) Finance costs, net (4,592) (4,789) Share of losses of associates and joint venture (1,271) (241) Profit before income tax 75,394 68,393 Income tax expense 9 (19,240) (19,757) Profit for the period 56,154 48,636
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– 3 – Six months ended 30 June 2025 2024 Note HK$’000 HK$’000 (Unaudited) (Unaudited) Profit for the period attributable to: – Equity holders of the Company 49,944 30,763 – Non-controlling interests 6,210 17,873 56,154 48,636 Earnings per share for profit attributable to equity holders of the Company during the period (expressed in HK cents per share) – basic 10 4.11 2.48 – diluted 10 4.11 2.48 Profit for the period 56,154 48,636 Other comprehensive income/(loss) Item that will not be reclassified to profit or loss Change in fair value of financial assets at fair value through other comprehensive income – 26,338 Currency translation differences 1,696 (1,762) Item that may be subsequently reclassified to profit or loss Currency translation differences 31,421 (32,716) Other comprehensive income/(loss) for the period 33,117 (8,140) Total comprehensive income for the period 89,271 40,496 Total comprehensive income for the period attributable to: – Equity holders of the Company 81,365 24,385 – Non-controlling interests 7,906 16,111 89,271 40,496
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– 4 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2025 31 December 2024 Note HK$’000 HK$’000 (Unaudited) (Audited) ASSETS Non-current assets Property, plant and equipment 422,918 381,615 Investment properties 111,154 109,177 Right-of-use assets 572,451 567,582 Intangible assets 728,949 699,904 Interests in associates 5,795 14,152 Interest in a joint venture 48,413 49,428 Financial assets at fair value through other comprehensive income 183,708 183,708 Deferred income tax assets 3,426 4,714 Deposits, prepayments and other receivables 50,667 69,397 2,127,481 2,079,677 Current assets Inventories 52,682 47,245 Trade receivables 12 66,697 57,763 Deposits, prepayments and other receivables 74,737 60,763 Amounts due from associates 5,221 5,221 Amount due from a related party 47 – Financial assets at fair value through profit or loss 15,091 15,192 Current income tax assets 177 2,232 Short-term bank deposits 39,960 28,976 Cash and cash equivalents 380,656 423,083 635,268 640,475 Total assets 2,762,749 2,720,152
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– 5 – As at 30 June 2025 31 December 2024 Note HK$’000 HK$’000 (Unaudited) (Audited) EQUITY Equity attributable to equity holders of the Company Share capital 125,556 125,556 Reserves 1,655,967 1,627,121 1,781,523 1,752,677 Non-controlling interests 157,905 137,234 Total equity 1,939,428 1,889,911 LIABILITIES Non-current liabilities Other payables 61,272 57,376 Loans from non-controlling interests 12,785 12,424 Lease liabilities 263,132 286,266 Deferred income tax liabilities 65,938 64,153 403,127 420,219 Current liabilities Trade payables 13 57,351 55,810 Accruals and other payables 120,298 138,920 Contract liabilities 52,400 57,537 Borrowings 23,308 29,162 Amounts due to non-controlling interests 3,829 4,440 Amount due to a related party – 7,701 Loan from a non-controlling interest 7,710 7,498 Current income tax liabilities 15,040 6,513 Lease liabilities 116,189 102,441 Dividend payable 24,069 – 420,194 410,022 Total liabilities 823,321 830,241 Total equity and liabilities 2,762,749 2,720,152
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– 6 – NOTES 1 GENERAL INFORMATION C-MER Medical Holdings Limited (the “Company”) was incorporated in the Cayman Islands on 1 February 2016 as an exempted company with limited liability under the Companies Law (Cap. 22, Law 3 of 1961 as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands. The Company is an investment holding company and its subsidiaries (the “Group”) are principally engaged in the provision of ophthalmic, dental and other medical services and sales of vision aid products in Hong Kong (“HK”) and Mainland China. The Company has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 15 January 2018. This interim condensed consolidated financial information is presented in Hong Kong Dollar (“HK$”) and all values are rounded to nearest thousand (HK$’000) except when otherwise indicated. This interim condensed consolidated financial information has not been audited. 2 BASIS OF PREPARATION This interim condensed consolidated financial information of the Group for the six months ended 30 June 2025 has been prepared in accordance with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” as issued by the Hong Kong Institute of Certified Public Accountants. This interim condensed consolidated financial information does not include all the notes of the type normally included in annual consolidated financial statements. Accordingly, this interim condensed consolidated financial information should be read in conjunction with the annual consolidated financial statements of the Group for the year ended 31 December 2024, which have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) Accounting Standards.
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– 7 – 3 ACCOUNTING POLICIES The accounting policies applied are consistent with those as described in the annual consolidated financial statements for the year ended 31 December 2024, except for the adoption of new and amended standards as set out below. (a) Amended standards adopted by the Group The following amended standards have been adopted by the Group for the first time for the financial year beginning on 1 January 2025: Amendments to HKAS 21 and HKFRS 1 Lack of Exchangeability The adoption of the amended standards listed above did not have material impact on the Group’s accounting policies and financial statements. (b) New and amended standards and interpretation not yet adopted The following new and amended standards and interpretation have been issued but are not effective for the financial year beginning on or after 1 January 2025 and have not been early adopted: Effective for annual periods beginning on or after Amendments to HKFRS 9 and HKFRS 7 Classification and Measurement of Financial Instruments 1 January 2026 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 Annual Improvements to HKFRS Accounting Standards – Volume 11 1 January 2026 Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity 1 January 2026 HKFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 HKFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Hong Kong Interpretation 5 (Revised) Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause 1 January 2027 Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined Management is in the process of assessing potential impact of the above new standards and amendments to standards but is not in position to state whether they will result in substantial changes to the Group’s significant accounting policies and the presentation of its financial statements.
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– 8 – 4 REVENUE AND SEGMENT INFORMATION (a) Revenue Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Provision of ophthalmic services 613,180 586,873 Provision of dental services 237,479 246,400 Provision of other medical services 18,820 15,052 Sales of vision aid products 74,846 74,176 944,325 922,501 The timing of revenue recognition of the Group’s revenue is as follows: Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue recognised at a point in time 778,961 749,491 Revenue recognised over time 165,364 173,010 944,325 922,501 (b) Segment information Management has determined the operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. The chief operating decision- maker is identified as the executive directors of the Company. The executive directors consider the business from a client perspective and assess the performance of the operating segments based on segment revenue and segment results for the purposes of allocating resources and assessing performance. These reports are prepared on the same basis as this interim condensed consolidated financial information. The reportable segment of the Group is a component that is engaged either in providing a particular type of service or goods, or in providing services or goods within a particular geographical region. The chief operating decision-maker assessed the performance of the Group by reviewing the results of four reportable segments, namely HK medical business, Mainland China ophthalmic business, Mainland China dental business and Mainland China other business as follows: (i) HK medical business – provision of ophthalmic, dental, oncology, medical aesthetics and other services and sales of vision aid products in Hong Kong (ii) Mainland China ophthalmic business – provision of ophthalmic services and sales of vision aid products in our ophthalmic hospitals and ophthalmic clinics in Mainland China (iii) Mainland China dental business – provision of dental services in our dental hospital and dental clinics in Mainland China (iv) Mainland China other business – provision of medical research and other medical services in Mainland China including our C+ Health (Shenzhen) Hospital in Luohu, Shenzhen
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– 9 – Capital expenditure comprises additions to property, plant and equipment, right-of-use assets and intangible assets. Other income, other gains, net, finance costs, net, and income tax expense are not included in segment results. The segment results for the six months ended 30 June 2025 are as follows: (Unaudited) Six months ended 30 June 2025 HK medical business Mainland China ophthalmic business Mainland China dental business Mainland China other business Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Segment revenue 467,069 254,815 217,062 5,379 944,325 Gross profit/(loss) 134,387 95,737 72,929 (9,148) 293,905 Selling expenses (14,551) (31,267) (16,432) (1,236) (63,486) Administrative expenses (67,615) (64,469) (23,318) (10,011) (165,413) Share of losses of associates and joint venture (1,271) – – – (1,271) Segment results 50,950 1 33,179 (20,395) 63,735 Other income 3,160 Other gains, net 13,091 Finance costs, net (4,592) Profit before income tax 75,394 Income tax expense (19,240) Profit for the period 56,154 Other segment information Additions to non-current assets 14,791 18,008 31,186 46,502 110,487 Depreciation and amortisation (33,664) (29,913) (23,909) (10,477) (97,963) Gains on disposal of property, plant and equipment, net – 2,288 – – 2,288 Gains on early termination of leases – 14,104 – – 14,104
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– 10 – The segment results for the six months ended 30 June 2024 are as follows: (Unaudited) Six months ended 30 June 2024 HK medical business Mainland China ophthalmic business Mainland China dental business Mainland China other business Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Segment revenue 427,052 270,761 224,688 – 922,501 Gross profit 113,166 89,660 86,299 – 289,125 Selling expenses (9,953) (37,646) (13,041) – (60,640) Administrative expenses (57,051) (74,968) (19,185) (8,152) (159,356) Share of losses of associates and joint venture (241) – – – (241) Segment results 45,921 (22,954) 54,073 (8,152) 68,888 Other income 2,234 Other gains, net 2,060 Finance costs, net (4,789) Profit before income tax 68,393 Income tax expense (19,757) Profit for the period 48,636 Other segment information Additions to non-current assets 43,958 4,235 38,426 101,660 188,279 Depreciation and amortisation (38,035) (48,123) (15,766) (6,707) (108,631) Gains/(losses) on disposal of property, plant and equipment, net 277 (491) (72) – (286) Gains on early termination of leases 12 54 1,744 – 1,810 Losses on disposal of intangible assets – (11) – – (11) During the six months ended 30 June 2025, there was no single external customer with revenue over 10% of the Group’s total revenue (six months ended 30 June 2024: same). No analysis of segment assets and liabilities is presented as they are not regularly provided to the executive directors.
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– 11 – 5 OTHER INCOME Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Management fee income 535 1,045 Rental income 1,647 207 Government grants (Note) 141 225 Others 837 757 3,160 2,234 Note: There are no unfulfilled conditions or other contingencies attaching to these grants. The Group did not benefit directly from any other forms of government assistance. 6 OTHER GAINS, NET Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Gains/(losses) on disposal of property, plant and equipment, net 2,288 (286) Gains on early termination of leases 14,104 1,810 Losses on disposal of intangible assets – (11) Fair value (losses)/gains on a financial asset at fair value through profit or loss (101) 1,621 Losses on written-off of non-current assets (2,002) (1,421) Losses on written-off of trade receivables (2) (14) Losses on written-off of deposit (1,333) – Exchange gains, net 137 361 13,091 2,060
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– 12 – 7 EXPENSES BY NATURE Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Amortisation of intangible assets 529 682 Auditor’s remuneration – Audit services 1,130 1,130 – Non-audit services 26 48 Depreciation of property, plant and equipment 31,132 36,549 Depreciation of investment properties 1,099 164 Depreciation of right-of-use assets 65,203 71,236 Doctors’ consultation fees 209,006 187,570 Cost of inventories and consumables 162,942 168,684 Employee benefit expenses 270,820 271,387 Expenses relating to short-term leases 3,873 7,353 Legal and professional fees 7,330 2,366 Share-based payment expenses to doctors and consultants 192 114 Office supplies 1,734 924 Bank service charges 7,509 7,421 Promotion expenses 62,739 59,957 Rates and management fees 10,692 9,614 Repair and maintenance fees 6,261 6,394 Others 37,102 21,779 Total cost of revenue, selling and administrative expenses 879,319 853,372 8 FINANCE COSTS, NET Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Finance income Bank interest income 8,559 6,944 Interest income on loan to a non-controlling interest – 519 8,559 7,463 Finance costs Interest expense on lease liabilities (8,755) (10,542) Interest expense on loan from a non-controlling interest (43) (186) Interest expense on bank loans (2,418) (27) Interest expense on consideration payable for investment in a joint venture (512) (487) Imputed interest expense on consideration payable for investment in a joint venture (1,061) (1,010) Imputed interest expense on loans from non-controlling interests (362) – (13,151) (12,252) Finance costs, net (4,592) (4,789)
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– 13 – 9 INCOME TAX EXPENSE Hong Kong profits tax has been provided at the rate of 16.5% (six months ended 30 June 2024: 16.5%) on the estimated assessable profits for the period. The applicable tax rate for the subsidiaries in Mainland China of the Group is 25% (six months ended 30 June 2024: 25%) for the period. The amount of taxation charged to the interim condensed consolidated statement of comprehensive income represents: Six months ended 30 June 2025 2024 HK$’000 HK$’000 (Unaudited) (Unaudited) Current income tax – Hong Kong profits tax 9,027 12,055 – China enterprise income tax 8,135 7,816 Under/(over)-provision in prior years 803 (615) Deferred income tax 1,275 501 Income tax expense 19,240 19,757 10 EARNINGS PER SHARE (a) Basic Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue excluding treasury shares. Six months ended 30 June 2025 2024 (Unaudited) (Unaudited) Profit attributable to equity holders of the Company during the period (HK$’000) 49,944 30,763 Weighted average number of ordinary shares in issue 1,213,785,216 1,239,070,639 Basic earnings per share (HK cents) 4.11 2.48 (b) Diluted Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. As at 30 June 2025, 200,000 (30 June 2024: 200,000) post-IPO share options outstanding are not included in the calculation of diluted earnings per share because they are antidilutive for the period (30 June 2024: same).
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– 14 – 11 DIVIDENDS On 21 March 2025, the directors recommended the payment of a final dividend in respect of the year ended 31 December 2024 of HK2 cents per ordinary share. On 19 May 2025, the final dividend was declared and approved at the annual general meeting. Such dividend totaling HK$24,069,198 was paid subsequently on 15 July 2025. The Directors do not recommend the payment of an interim dividend for the six months ended 30 June 2025 (six months ended 30 June 2024: Nil). 12 TRADE RECEIVABLES The trade receivables are due when services are rendered and goods are sold. The ageing analysis of the trade receivables based on due date and invoice date was as follows: As at 30 June 2025 31 December 2024 HK$’000 HK$’000 (Unaudited) (Audited) 0 – 90 days 44,743 38,132 91 – 180 days 6,173 4,882 Over 180 days 15,781 14,749 66,697 57,763 13 TRADE PAYABLES Trade payables, based on invoice date, were aged as follows: As at 30 June 2025 31 December 2024 HK$’000 HK$’000 (Unaudited) (Audited) 0 – 30 days 42,824 33,350 31 – 60 days 6,187 11,338 61 – 90 days 5,653 6,952 Over 90 days 2,687 4,170 57,351 55,810
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– 15 – MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW Overview As a result of the slight increase of revenue and the effectiveness of our strategies to optimise our service network and enhance operating efficiency, which included the closure of non- performing operations and adoption of cost-saving measure, the Group’s profitability improved for the six months ended 30 June 2025 (“ 1H2025 ”) as compared with the same period in 2024 (“ 1H2024”). Excluding the loss from the Mainland China other business segment (primarily comprising our C+ Health (Shenzhen) Hospital ( ଉέҎശฌੰᔼ৫) which is providing dental, ophthalmic, medical imaging and other medical services and is still at its initial operating stage), the profit for the period attributable to equity holders of the Company of the remaining three segments (the “adjusted profit for the period attributable to equity holders of the Company”) increased by 74.5% to HK$69.6 million in 1H2025 as compared to HK$39.9 million for 1H2024. Profit for the period attributable to equity holders of the Company increased by 62.4% to HK$49.9 million in 1H2025 as compared to HK$30.8 million for 1H2024. In addition, our segment result in Mainland China ophthalmic business turned into breakeven in 1H2025 from the segment loss of HK$23.0 million in 1H2024. The total revenue of the Group amounted to HK$944.3 million in 1H2025, as compared to the revenue of HK$922.5 million for 1H2024. The slight increase in revenue is the combined result of the increase in the revenue generated from the ophthalmic services in Hong Kong due to the increased demand for ophthalmic medical services in Hong Kong, which was partially offset by the decrease in revenue generated from the dental services and ophthalmic services in Shenzhen due to keen competition. Our cash flows from operations were healthy in 1H2025 with the net cash generated from operating activities amounted to HK$108.1 million (1H2024: HK$135.4 million). The decrease was mainly attributable to increase in working capital used in our operations during 1H2025. To expand our medical service in Hong Kong, we entered into an agreement to acquire an endoscopy centre located in Hong Kong in August 2025. This move will enable us to leverage our existing patient base to create synergy with our business in Hong Kong and our cross- border business in Shenzhen. The Group has been closely monitoring the market condition and adjusting its business strategies to prioritize our core business segments, while effectively managing the operational costs. In addition, the Group also prudently manages its working capital to ensure a healthy balance sheet.
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– 16 – Our operations in Hong Kong Under the brand of “C-MER Dennis Lam (නᆓ)”, we offer ophthalmic services of international calibre in treating a wide range of eye problems, ranging from common to rare and complex eye problems. In addition, the Group operated (i) Champion Eye Centre Limited (“Champion Eye”) (ʮ̡), which has over 20 years of history for offering ophthalmic services in Hong Kong; and (ii) The Optometry (OPT) Centre Limited (“OPT”), an optometry group to offer services in Hong Kong in the areas of myopia control, optometry assessments and spectacles and contact lens prescriptions. In total, the ophthalmic and related services network mainly included our five day surgery centres, eight satellite clinics, and eight optometry centres. Since 2021, we started our dental, oncology and other medical services business in Hong Kong which included six dental clinics, two general practice clinics and an oncology centre as at 30 June 2025. Further, we started our clinical research business in July 2022, which may bring us opportunities for collaboration with different biotech companies for, among other things, research and clinical work. Our operations in Mainland China In Mainland China, our ophthalmic service network included nine eye hospitals in Shenzhen (Futian and Baoan), Beijing, Shanghai, Guangzhou, Zhuhai, Kunming, Huizhou and Jieyang mainly under the brand of “C-MER Dennis Lam (නᆓ)”. In the meantime, we continued to optimize the organizational structure and implement refined management in our operations. In 1H2025, our segment result in Mainland China ophthalmic business turned into breakeven from the segment loss of HK$23.0 million for 1H2024. In February 2022, we completed our investment of 61.5% equity interest of Shenzhen C-MER Aikangjian Dental Group Co., Ltd. (previously known as Shenzhen Aikangjian Group Co., Ltd.) (ʮ̡, previously known as ණྠ ʮ̡) (“ Shenzhen CKJ”), which became a non-wholly owned subsidiary of the Company. Shenzhen CKJ and its subsidiaries have a dental hospital and 13 dental clinics in Shenzhen as of 30 June 2025. Due to the keen competition in the dental service industry in Shenzhen, the revenue of Shenzhen CKJ decreased by 3.4% in 1H2025 to HK$217.1 million from HK$224.7 million in 1H2024. In Renminbi (“RMB”) terms, our revenue of Shenzhen CKJ decreased by 2.9% in 1H2025 as compared with 1H2024.
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– 17 – Shenzhen CKJ continues to expand at Luohu, Futian and Liantang ports in Shenzhen, including the expansion of the existing dental hospital in Luohu and the planned opening of one more dental clinic at Futian Port, which will be only 200 meters away from the border crossing and is expected to start operations in the third quarter of 2025. In addition, Shenzhen CKJ acquired a dental clinic chain at Liantang Port in January 2025, extending our service network to another key passenger port. It is expected to provide a strong momentum for the future development of Shenzhen CKJ. In addition, the dental chain will expand its service area with a new clinic in Liantang port and is expected to commence operations in the third quarter of 2025. During the six months ended 30 June 2025, our segment profit in our Mainland China dental business decreased to HK$33.2 million from HK$54.1 million in 1H2024. In addition, there were pre-operating expenses of HK$3.0 million in 1H2025 for the new dental clinic at Futian Port. Our C+ Health (Shenzhen) Hospital ( ଉέҎശฌੰᔼ৫) in Shenzhen, which is within a five-minute walk from the Luohu border land crossing, adopted Hong Kong-style medical services, bringing Hong Kong’s healthcare management systems, medical technologies and healthcare services serving residents of both Shenzhen and Hong Kong. The hospital has departments including dentistry, ophthalmology, medical imaging, health check-ups, gynecology, traditional Chinese medicine, internal medicine, surgery and urology and the Group intends to introduce more departments in subsequent phases. The hospital operated within a seven-storey building, having a gross floor area of over 10,000 sq. m. and is in full operations in 1H2025. As the hospital is still at the initial operating stage, the hospital incurred loss of HK$15.1 million in 1H2025. Revenue Overview The total revenue in 1H2025 amounted to HK$944.3 million (six months ended 30 June 2024: HK$922.5 million), representing a slight increase of 2.4% from 1H2024, due to (i) increase in the revenue from HK medical business by 9.4% to HK$467.1 million in 1H2025 from HK$427.1 million for 1H2024, which is partially offset by (ii) decrease in the revenue from Mainland China ophthalmic business by 5.9% to HK$254.8 million in 1H2025 from HK$270.8 million in 1H2024, and (iii) decrease in the revenue in Mainland China dental business segment in 1H2025 to HK$217.1 million from HK$224.7 million for 1H2024.
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– 18 – The following table sets forth a breakdown of our revenue by segment for the periods indicated as a percentage of total revenue: Six months ended 30 June 2025 2024 Change HK$’000 % HK$’000 % HK$’000 % HK medical business 467,069 49.5 427,052 46.2 40,017 9.4 Mainland China ophthalmic business 254,815 27.0 270,761 29.4 (15,946) (5.9) Mainland China dental business 217,062 23.0 224,688 24.4 (7,626) (3.4) Mainland China other business 5,379 0.5 – – 5,379 N/A 944,325 100.0 922,501 100.0 21,824 2.4 In Hong Kong, our operations consist of the provision of medical services (comprising of provision of ophthalmic, dental and other medical services) and the related businesses (including the sales of vision aid products). With the increased demand of ophthalmic medical service in Hong Kong, our revenue from medical business derived from our operation in Hong Kong increased by 9.4% to HK$467.1 million (six months ended 30 June 2024: HK$427.1 million), which mainly included revenue from our ophthalmic business (including ophthalmic services and sales of vision aid products), which increased by 10.4% to HK$430.7 million during 1H2025 (six months ended 30 June 2024: HK$390.3 million). Our revenue in the Mainland China was mainly derived from our provision of ophthalmic services, dental and other medical services, and we recorded a decrease of 3.7% in 1H2025 to HK$477.3 million from HK$495.4 million as compared with 1H2024. In RMB terms, the revenue decreased by 3.2%.
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– 19 – We provided our ophthalmic services in Mainland China in our eye hospitals, eye centres and clinics. The following table sets forth a breakdown of our revenue of Mainland China ophthalmic business segment by location for the periods indicated with changes in HK$ and RMB terms. Six months ended 30 June Change (%) 2025 2024 Location (Date of commencement of operations) HK$’000 HK$’000 in HK$ terms in RMB terms Shenzhen (March 2013) 97,905 123,892 (21.0) (20.6) Beijing (January 2018) 50,351 46,581 8.1 8.6 Kunming (June 2019) 32,515 33,786 (3.8) (3.3) Shanghai (November 2019) 24,309 21,519 13.0 13.5 Zhuhai (December 2020) 23,085 20,917 10.4 10.9 Guangzhou (April 2022) 17,056 11,651 46.4 47.1 Huizhou (March 2021) 5,248 6,125 (14.3) (13.9) Jieyang (August 2022) 4,346 4,512 (3.7) (3.2) Foshan (August 2023) – 1,778 (100.0) (100.0) 254,815 270,761 (5.9) (3.4) In Mainland China, local consumer spending remained subdued, which mainly impacted our revenue from the refractive surgeries. The revenue from our Mainland China ophthalmic business segment decreased by 5.9% in 1H2025 to HK$254.8 million from HK$270.8 million as compared with 1H2024. In RMB terms, the revenue decreased by 3.4%. We provided our dental services in Mainland China in the dental hospital and clinics in Shenzhen mainly under Shenzhen CKJ during 1H2025. Due to keen competition for the provision of the dental service in Shenzhen, the revenue of Shenzhen CKJ decreased by 3.4% to HK$217.1 million in 1H2025 from HK$224.7 million in 1H2024.
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– 20 – FINANCIAL REVIEW Revenue We are an ophthalmic, dental and other medical service provider in Hong Kong and Mainland China. Our ophthalmologists/physicians are specialised in the fields of cataract, glaucoma, strabismus and refractive surgeries and external eye diseases. Our dentists have expertise and qualifications across a wide range of specialty areas, covering general dentistry, orthodontics and implantology. Our revenue is derived from our fees charged to our clients on consultations, procedures, surgeries and other medical services as well as the sales of vision aid products, including glasses and lens. The following table sets forth a breakdown of our revenue for the periods indicated as a percentage of total revenue: Six months ended 30 June 2025 2024 Change HK$’000 % HK$’000 % HK$’000 % Provision of ophthalmic services 613,180 65.0 586,873 63.7 26,307 4.5 Provision of dental services 237,479 25.1 246,400 26.7 (8,921) (3.6) Provision of other medical services 18,820 2.0 15,052 1.6 3,768 25.0 Sales of vision aid products 74,846 7.9 74,176 8.0 670 0.9 944,325 100.0 922,501 100.0 21,824 2.4 Our total revenue in 1H2025 recorded a slight increase of 2.4% as compared with our total revenue of 1H2024. The increase was primarily driven by (i) the increase in the revenue generated from the provision of ophthalmic services to HK$613.2 million in 1H2025 from HK$586.9 million of 1H2024, representing an increase of 4.5%, which was primarily attributable to the increase in the demand of ophthalmic services in Hong Kong, and is partially offset by (ii) the decrease in the revenue generated from the provision of dental services to HK$237.5 million in 1H2025 from HK$246.4 million of 1H2024, representing a decrease of 3.6% due to keen competition in Shenzhen for dental services.
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– 21 – The following table sets forth our revenue according to geographical markets as a percentage of total revenue: Six months ended 30 June 2025 2024 Change HK$’000 % HK$’000 % HK$’000 % Hong Kong 467,069 49.5 427,052 46.3 40,017 9.4 Mainland China 477,256 50.5 495,449 53.7 (18,193) (3.7) 944,325 100.0 922,501 100.0 21,824 2.4 The revenue generated by our business operations in Hong Kong accounted for 49.5% of our total revenue. As a percentage of our total revenue, revenue from Hong Kong increased from 46.3% for 1H2024 to 49.5% for 1H2025 mainly due to the increase in our revenue in Hong Kong. As a percentage of our total revenue, revenue from Mainland China decreased to 50.5% for 1H2025 from 53.7% for 1H2024, mainly due to the decrease of revenue from our ophthalmic services and dental services in Mainland China. Provision of ophthalmic services Our revenue generated from the provision of ophthalmic services may be broadly divided into two categories, namely (1) consultation and other medical service fees, and (2) surgery fees. The following table sets forth our revenue by categories for the periods indicated as a percentage of total revenue generated from the provision of ophthalmic services: Six months ended 30 June 2025 2024 Change HK$’000 % HK$’000 % HK$’000 % Consultation and other medical service fees – Hong Kong 168,768 27.5 153,592 26.2 15,176 9.9 – Mainland China 67,165 11.0 73,685 12.5 (6,520) (8.8) 235,933 38.5 227,277 38.7 8,656 3.8 Surgery fees – Hong Kong 241,932 39.4 219,760 37.5 22,172 10.1 – Mainland China 135,315 22.1 139,836 23.8 (4,521) (3.2) 377,247 61.5 359,596 61.3 17,651 4.9 613,180 100.0 586,873 100.0 26,307 4.5
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– 22 – The ophthalmic services provided by us included surgeries for the treatment of not only cataract, glaucoma and strabismus, but also eye diseases, including corneal and vitreoretinal diseases. Generally speaking, ophthalmic services are outpatient or day care procedures, performed under local anaesthesia. Hence, unlike other hospitals, clinics or nursing homes, we are not constrained by bed capacity and do not focus on providing large inpatient facilities at our eye centres, hospitals or clinics. Our revenue generated from our eye hospitals, eye centres, eye clinics and optometry centres can be broadly divided into different categories, namely (1) consultation, examination, laser procedures and other procedures, (2) refractive surgeries, (3) cataract surgeries, (4) other surgeries and (5) sales of vision aid products which included our optometry services, and these categories accounted for 34.3%, 17.8%, 21.2%, 15.8% and 10.9% (30 June 2024: 34.4%, 23.1%, 19.5%, 11.7% and 11.2%, respectively), as a percentage of the total revenue for the Group derived from our ophthalmic business during the 1H2025. The following table sets forth the total surgery fees, the total number of surgeries performed by us and the average fee per surgery for the periods indicated: Six months ended 30 June 2025 2024 Change % For Hong Kong Total surgery fee (in HK$’000) 241,932 219,760 10.1 Number of surgeries performed by us 7,492 7,646 (2.0) Average surgery fee (HK$) 32,292 28,742 12.4 For Mainland China Total surgery fee (in HK$’000) 135,315 139,836 (3.2) Number of surgeries performed by us 13,639 12,894 5.8 Average surgery fee (HK$) 9,921 10,845 (8.5) In Hong Kong, the average surgery fee increased by 12.4% due to change of surgery mix. The surgery volume decreased by 2.0% to 7,492 during 1H2025 as a result of the decrease in number of refractive surgeries performed, while the number of surgeries performed for eye diseases increased slightly. In Mainland China, the average surgery fee in Hong Kong dollar terms decreased by 8.5% due to the downward price adjustment in response to the market conditions and the depreciation of RMB against Hong Kong dollar for 1H2025 compared to 1H2024. In RMB terms, the average surgery fee decreased by 8.0%. The number of surgeries increased by 5.8% to 13,639 during 1H2025, which was mainly attributable to the increase in the number of surgeries performed in the eye hospitals in Guangzhou and Shanghai.
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– 23 – Provision of dental services The following table sets forth the total revenue from dental services, the total number of patient visits, total number of dental chairs, visits per dental chair and revenue per dental chair for 1H2025: Six months ended 30 June 2025 2024 Change % Total revenue from dental services (in HK$’000) 237,479 246,400 (3.6) Total patient visits 167,599 156,080 7.4 Total number of dental chairs 278 244 13.9 Visits per dental chair 603 640 (5.8) Revenue per dental chair (in HK$’000) 854 1,010 (15.4) Our revenue generated from dental services recorded a decrease of 3.6% during 1H2025, which amounted to HK$237.5 million (six months ended 30 June 2024: HK$246.4 million), representing 25.1% (six months ended 30 June 2024: 26.7%) of our total revenue. The number of patient visits for dental services also increased by 7.4% from 156,080 to 167,599 during 1H2025. Visits per dental chair decreased by 5.8% from 640 to 603, while revenue per dental chair recorded a decrease of 15.4% to HK$854,000 in 1H2025 (six months ended 30 June 2024: HK$1,010,000). The decrease was primarily attributable to the keen competition for dental services in Shenzhen. Provision of other medical services Our revenue generated from oncology, medical aesthetics, general practice and other services during 1H2025 amounted to approximately HK$18.8 million (six months ended 30 June 2024: HK$15.1 million), representing approximately 2.0% (six months ended 30 June 2024: 1.6%) of our total revenue.
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– 24 – Sales of vision aid products We also generate revenue from the sales of vision aid products including glasses and lens. The sales were conducted by us through the assessment of the optometrists employed by us in Hong Kong and Mainland China. During 1H2025, our revenue generated from the sales of vision aid products amounted to HK$74.8 million, representing an increase of 0.9% as compared to 1H2024. Cost of revenue The following table sets forth an analysis of our cost of revenue for the periods indicated, presented as a percentage of total revenue: Six months ended 30 June 2025 2024 Change HK$’000 % of revenue HK$’000 % of revenue HK$’000 % (Unaudited) (Unaudited) Doctors’ consultation fees 209,006 22.1 187,570 20.3 21,436 11.4 Cost of inventories and consumables 162,942 17.3 168,684 18.3 (5,742) (3.4) Staff salaries and allowance 178,058 18.9 177,525 19.2 533 0.3 Depreciation of right-of-use assets 46,571 4.9 43,611 4.7 2,960 6.8 Depreciation of property, plant and equipment 22,596 2.4 26,046 2.8 (3,450) (13.2) Others 31,247 3.3 29,940 3.2 1,307 4.4 Total 650,420 68.9 633,376 68.7 17,044 2.7 Our cost of revenue increased by 2.7% from HK$633.4 million for 1H2024 to HK$650.4 million for 1H2025, primarily as a result of increase in doctors’ consultation fees paid to ophthalmologists in Hong Kong.
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– 25 – Gross profit and gross profit margin (GP%) The following table sets forth our gross profit/(loss) and gross profit margin according to the business segments for the periods indicated: Six months ended 30 June 2025 2024 Change Gross profit Gross profit Gross profit HK$’000 GP % HK$’000 GP % HK$’000 % (Unaudited) (Unaudited) HK medical business 134,387 28.8 113,166 26.5 21,221 18.8 Mainland China ophthalmic business 95,737 37.6 89,660 33.1 6,077 6.8 Mainland China dental business 72,929 33.6 86,299 38.4 (13,370) (15.5) Mainland China other business (9,148) N/A – N/A (9,148) – (5,542) – (5,542) 293,905 31.1 289,125 31.3 4,780 1.7 Our gross profit for 1H2025 amounted to HK$293.9 million, representing an increase of 1.7% from HK$289.1 million for 1H2024. Our gross profit margin was 31.1% during 1H2025, as compared with 31.3% for 1H2024. The gross profit margin for our business segment of HK medical business recorded an increase to 28.8% from 26.5% due to the increase in revenue and the coverage of fixed costs. The gross profit margin for our business segment of Mainland China ophthalmic business increased to 37.6% from 33.1%, primarily due to the decrease in operating costs from cost control measures and depreciation expenses for property, plant and equipment and right-of-use assets. The gross profit margin for our business segment of Mainland China dental business decreased to 33.6% from 38.4%, which was mainly attributable to the decrease in revenue and the coverage of fixed costs. The gross profit margin for our business segment of Mainland China other business was not applicable in 1H2025 as it incurred a gross loss of HK$9.1 million as it is still at its initial operating stage. Selling expenses Our selling expenses increased by 4.8% from HK$60.6 million for 1H2024 to HK$63.5 million for 1H2025, primarily attributable to an increase in promotional expenses in Mainland China for our dental services. The amount of selling expenses, as a percentage of our total revenue, increased from 6.6% for 1H2024 to 6.7% for 1H2025. The fees paid to online platforms represented the major component of selling expenses.
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– 26 – Administrative expenses Our total administrative expenses during 1H2025 amounted to HK$165.4 million, representing an increase of 3.8% as compared with HK$159.4 million during 1H2024. The increase in our administrative expenses during the period was mainly due to the expenses incurred in our Luohu hospital which commenced full operation in 1H2025. Other income Our other income during 1H2025 consisted primarily of the management fee income from an associate and rental income, and increased to HK$3.2 million in 1H2025 from HK$2.2 million during 1H2024. The increase was primarily attributable to the increase in rental income. Other gains, net Our other gains, net during 1H2025 amounted to HK$13.1 million and mainly consisted of gain on early termination of leases. Finance costs, net Our finance costs, net decreased from HK$4.8 million for 1H2024 to HK$4.6 million for 1H2025, primarily due to the net impact of an increase in interest income from bank deposits and a decrease of interest expense on lease liabilities, partially offset by an increase in interest expenses on bank loans. Income tax expense Our income tax expense during 1H2025 amounted to HK$19.2 million, representing a decrease by 3.0% from HK$19.8 million during 1H2024. The decrease was primarily due to the decrease of taxable profits in Mainland China which has a tax rate of 25%, partially offset by the increase in taxable profits in Hong Kong with a tax rate of 16.5%. Profit for the period As a result of the foregoing, our profit for 1H2025 amounted to HK$56.2 million (1H2024: HK$48.6 million), the increase was primarily due to the increase of revenue to HK$944.3 million in 1H2025 from HK$922.5 million for the same period last year and the effectiveness of our strategies to optimise our service network and enhance operating efficiency, which included the closure of non-performing operations and adoption of cost-saving measures.
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– 27 – Cash flows Net cash generated from operating activities was HK$108.1 million during 1H2025 (1H2024: HK$135.4 million). The decrease was mainly attributable to increase in working capital used in our operations during 1H2025. Net cash used in investing activities amounted to HK$46.1 million during 1H2025 as compared to HK$73.4 million during 1H2024. The cash used in investing activities mainly included approximately HK$44.4 million used for purchase of property, plant and equipment. During 1H2025, net cash used in financing activities amounted to HK$110.7 million, as compared to HK$103.7 million during 1H2024. The cash used in financing activities for 1H2025 mainly consisted of cash used in the share repurchases in the amount of HK$29.1 million, and lease payments in the amount of HK$71.4 million. Events after the date of statement of financial position There were no material subsequent events occurred to the Group after 30 June 2025 and up to date of this announcement. OUTLOOK AND STRATEGIES The outlook for our various businesses is varied. The demand for ophthalmic services in relation to eye diseases in Hong Kong remains solid with the aging population while the ophthalmic business in Mainland China faces challenges due to changes in consumer consumption patterns. In addition, the trend of cross-border consumption by Hong Kong citizens will continue and this may bring us opportunities, especially in our dental business in Shenzhen under Shenzhen CKJ and our operation of C+ Health (Shenzhen) Hospital in Luohu port with dental, ophthalmic, medical imaging and other medical services. The Group is prepared to exploit the business opportunities by implementing the following strategies: • focusing on our ophthalmic services in Hong Kong and the cities where our hospitals are located in Mainland China, while performing strategic review on performances on our operations and seeking opportunities to grow by recruitment of new doctors and setting up new establishments; • further developing our cross-border medical business in Shenzhen under Shenzhen CKJ for dental business, and developing our hospital in Luohu with departments including dentistry, ophthalmology, medical imaging, health check-ups, gynecology, traditional Chinese medicine, internal medicine, surgery and urology;
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– 28 – • continuing to improve our operational efficiency and service capability. For our ophthalmic business in Mainland China, we will continue to adopt stringent cost control policy to streamline and improve its overall performance and profitability; and • investing in innovation. Following our success in the investment in Belkin Vision Ltd, we will continue to invest in businesses where we can contribute expertise and can add value to the target businesses. OTHER INFORMATION INTERIM DIVIDEND The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2025. SIGNIFICANT INVESTMENTS, ACQUISITIONS AND DISPOSALS The Group did not have any significant investments, acquisitions and disposals in 1H2025. CORPORATE GOVERNANCE The Board is committed to maintaining high corporate governance standards. In the opinion of the Board, during 1H2025 the Company has complied with all applicable code provisions as set forth in the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, save and except for a deviation from the code provision C.2.1, which states that the roles of chairman (the “Chairman”) and chief executive officer (the “CEO”) should be separate and should not be performed by the same individual. Dr. Dennis LAM has been both our Chairman and CEO and has been responsible for the overall management of our Group and directing the strategic development and business plans of our Group before his resignation with effect from 1 June 2025. The Board believes that the previous arrangement in relation to vesting the roles of the Chairman and CEO in Dr. Dennis LAM enabled the Company to achieve higher responsiveness, efficiency and effectiveness when formulating business strategies and executing business plans. However, with the appointment of Dr. Rex AUYEUNG Pak- kuen as the Chairman and the appointment of Ms. LI Xiaoting as the CEO with effect from 1 June 2025, the Company has re-complied with code provision C.2.1 of the Listing Rules. The Board will continue to review the structure and composition of the Board from time to time in light of prevailing circumstances, in order to maintain a high standard of corporate governance practices of the Company.
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– 29 – MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) as set forth in Appendix C3 to the Listing Rules as the code of conduct regarding securities transactions of the Directors. Employees of the Group (the “Relevant Employees”) who, because of their office or employment, are likely to possess inside information in relation to the Company or its securities are also subject to compliance with the Model Code. Following specific enquiry of all Directors, each of the Directors has confirmed his or her compliance with the Model Code throughout the 1H2025. No incident of non-compliance of the Model Code by the Relevant Employees was noted by the Company during 1H2025. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES During the six months ended 30 June 2025, and pursuant to the mandates granted by the shareholders in the annual general meetings of the Company held on 28 May 2024 and 19 May 2025, the Company repurchased an aggregate of 17,370,000 ordinary shares at an aggregate consideration of HK$29,108,758 on the Stock Exchange as follows: Month of Repurchase No. of shares repurchased Consideration per share Total Consideration Paid (inclusive of charges and levies) Highest Lowest HK$ HK$ HK$ January 2025 2,020,000 1.97 1.84 3,869,755 February 2025 688,000 2.07 1.96 1,393,873 March 2025 2,496,000 1.61 1.54 3,921,813 April 2025 4,124,000 1.68 1.34 6,006,651 May 2025 3,462,000 1.77 1.68 5,951,348 June 2025 4,580,000 1.82 1.66 7,965,318 17,370,000 29,108,758 The Board considers that the share repurchases were in the best interests of the Company and its shareholders and would lead to an enhancement of the net assets value per share and/ or earnings per share of the Company. As at the date of this announcement, an aggregate of 8,730,000 repurchased shares were held by the Company as treasury shares as defined under the Listing Rules and was intended for resale depending on the market conditions. Save as disclosed above, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities during the six months ended 30 June 2025.
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– 30 – Neither the Company nor any of its subsidiaries have sold any treasury shares as defined under the Listing Rules of the Company during the six months ended 30 June 2025. AUDIT COMMITTEE AND REVIEW OF INTERIM RESULTS The audit committee of the Board comprises three independent non-executive Directors, namely, Mr. MA Andrew Chiu Cheung (Chairman of the audit committee), Mr. IP Shu Kwan Stephen and Mr. LI Ling Cheung Raymond. The audit committee of the Board has reviewed with the management the accounting principles as well as practices adopted by the Group and discussed risk management and internal control as well as financial reporting matters including the review of the unaudited interim condensed consolidated financial information for the 1H2025 and this announcement with the Directors. The Group’s interim condensed consolidated financial statements have not been audited, but PricewaterhouseCoopers, certified public accountants and the independent auditor of the Company, has reviewed the unaudited interim condensed consolidated financial information of the Group for the six months ended 30 June 2025 in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This interim results announcement is published on the websites of the Stock Exchange at www.hkexnews.hk and the Company’s website at www.cmermedical.com. The interim report of the Company for 1H2025 will be dispatched to the shareholders of the Company and made available on the website of the Stock Exchange and that of the Company in due course. By order of the Board C-MER Medical Holdings Limited Ms. LI Xiaoting Vice Chairman, Executive Director and Chief Executive Officer Hong Kong, 26 August 2025 As at the date of this announcement, the Board comprises its chairman and independent non- executive Director, Dr. Rex AUYEUNG Pak-kuen; two executive Directors, namely Ms. LI Xiaoting (Vice Chairman and Chief Executive Officer) and Dr. LEE Yau Wing Vincent; and five other independent non-executive Directors, namely Dr. KO Wing Man (Vice Chairman), Mr. MA Andrew Chiu Cheung, Mr. IP Shu Kwan Stephen, Mr. YIN Ke and Mr. LI Ling Cheung Raymond.