Clarity Medical Group (01406) reported a HK$85.01 million revenue for the six months ended 30 September 2025, 2.50% lower than the HK$87.20 million recorded a year earlier. The contraction reflects an 11.5% year-on-year revenue decline in September, the Group’s weakest trading month since listing, amid corporate-governance investigations and the ongoing suspension of its shares since 15 April 2025.
Operating pressure intensified, with a surge in non-recurring professional fees linked to legal and governance matters driving an adjusted EBITDA loss of HK$3.94 million, versus a HK$0.62 million loss in the prior-year period. Statutory loss after tax widened 20.50% to HK$22.38 million, translating into a basic loss per share of HK4.2 cents (2024: HK3.5 cents).
Revenue Mix • Refractive treatments remained the largest contributor at HK$44.09 million (51.9% of total) but fell 15.20% year-on-year, with SMILE surgeries and ICL implantations sliding HK$4.24 million and HK$5.45 million, respectively. • Treatments for other eye problems rose 22.60% to HK$27.52 million, led by increases across cataract, laser, vitrectomy (PPV) and other procedures. • Consultation & examination services edged up 1.7% to HK$8.01 million, while prescriptions, vision products and children’s myopia services contributed HK$5.39 million, up 11.0%.
Cost Dynamics Inventories consumed dropped 9.1% to HK$17.01 million, equivalent to 20.0% of revenue (2024: 21.5%). Consultancy fees were stable at HK$29.32 million (34.5% of revenue). Employee benefit expenses increased 7.9% to HK$25.87 million, reflecting a headcount rise to 109 (2024: 105) despite lower share-based payment charges.
Other expenses jumped 70.8% to HK$25.44 million, driven by professional fees of HK$13.45 million—up 260.5%—related to investigations and litigation. Business development spending also rose 56.0% to HK$4.34 million as the Group sought to stabilise patient volumes.
Balance Sheet and Liquidity Clarity Medical closed the period in a net-cash position with HK$107.75 million in cash and time deposits (31 March 2025: HK$132.57 million). The current ratio improved to 4.4x (31 March 2025: 4.1x), while capital expenditure was contained at HK$0.50 million versus HK$8.30 million a year earlier. Operating cash outflow widened to HK$18.23 million, reflecting the larger operating loss and working-capital movements. No interim dividend was declared.
Corporate Developments The Group continues to address multiple governance-related allegations, forensic investigations and internal-control reviews stipulated by Hong Kong Exchanges and Clearing Limited as conditions for share-trading resumption. Director and committee changes during the period restored compliance with Listing Rules on board composition, though resumption of trading remains pending completion of the required investigations.
Outlook Management plans to resolve outstanding governance issues, tighten cost control and pursue expansion into Mainland China through clinic acquisitions and partnerships, while maintaining investment in advanced ophthalmic technologies. The remaining HK$91.30 million of IPO proceeds is earmarked principally for new centres in Hong Kong and strategic expansion in the Greater Bay Area and mainland market, with utilisation targeted through FY 2028.
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