C-MER Medical (3309) H1 2025 earnings summary

Executive summary

• Revenue increased 2.4% year-over-year to HK$944.3 million for 1H2025, driven by higher demand for ophthalmic services in Hong Kong, partially offset by declines in Mainland China segments.

• Profit attributable to equity holders rose 62.4% to HK$49.9 million, with adjusted profit (excluding Mainland China other business losses) up 74.5% to HK$69.6 million, reflecting improved operational efficiency and cost-saving measures.

• Segment result in Mainland China ophthalmic business improved from a loss of HK$23.0 million to breakeven.

• Net cash from operating activities was HK$108.1 million, down from HK$135.4 million due to increased working capital needs.

• Acquisition of a Hong Kong endoscopy centre in August 2025 aims to create synergy with existing operations.

Financial highlights

• Gross profit increased 1.7% to HK$293.9 million; gross profit margin was 31.1% (vs. 31.3% in 1H2024).

• Net profit margin improved to 5.9% from 5.3% year-over-year.

• Earnings per share (basic and diluted) were HK4.11 cents, up from HK2.48 cents.

• Adjusted profit for the period (excluding Mainland China other business losses) rose 32.9% to HK$77.5 million.

• No interim dividend declared for 1H2025.

Outlook and guidance

• Demand for ophthalmic services in Hong Kong remains strong due to aging population; Mainland China ophthalmic business faces challenges from changing consumer patterns and subdued spending.

• Cross-border consumption by Hong Kong citizens is expected to continue, benefiting dental and hospital operations in Shenzhen.

• Strategic focus on core ophthalmic services, cross-border medical business, operational efficiency, and innovation investments.

• Continued investment in innovation and expansion, including new clinics and hospital departments.