MODERN DENTAL (03600) announced that for the three months ended March 31, 2026, the group's multi-faceted strategy, supported by the ongoing digitalization trend in the dental industry, has driven its revenue to a record high for the period. This achievement was made despite a challenging macroeconomic environment, generally weak demand for dental procedures, and uncertainties from trade wars and geopolitics. The group actively navigated the unprecedented international trade landscape by utilizing its international production facilities in Thailand, Vietnam, and mainland China. The global digitalization trend continues to drive consolidation in the dental prosthetics industry, allowing the group to further expand its market share. Its ongoing digital transformation initiatives enhance customer and patient experience while further differentiating the group from competitors and outperforming the industry. The group's fundamentals remain solid, and it is fully committed to seizing future opportunities.
For the three months ended March 31, 2026, the group's total revenue of approximately HK$988 million increased by about 12.1% compared to the approximately HK$881 million for the three months ended March 31, 2025. Revenue growth in Europe was primarily driven by higher sales order volumes, benefiting from the successful launch of new products, such as digital dentures, and the promotion of the group's state-of-the-art digital processes. As a pioneer in providing comprehensive digital solutions—ranging from various minimally invasive and aesthetic dental prosthetics solutions to intraoral scanners and clear aligners—the group is well-positioned to capitalize on the accelerating digitalization trend in the dental industry.
Revenue from MicroDental, the group's local dental laboratory business in North America, declined, mainly due to a weaker U.S. economy leading to reduced patient demand for high-value, non-essential dental treatments, particularly dental implants.
The group's revenue in the mainland China market recorded a 1.5% growth in the first quarter of 2026 on a reported currency basis, a reversal from the 4.2% decline recorded in 2025. The revenue decline in the Hong Kong market also narrowed to 3.7%, an improvement compared to the 11.5% decline in 2025. The impact of volume-based procurement policies and prolonged intense price competition in mainland China appears to have bottomed out. This has also led to mainland Chinese dental clinics actively promoting implant treatments in Hong Kong, resulting in a significant decrease in patient visits from Hong Kong. The Hong Kong market is gradually stabilizing along with this trend. The group intends to exit low-margin segments and focus on medium and high-value clients to ensure the long-term and sustainable profitability of its business.
The increase in revenue from Australia reflects strong demand for digital products, primarily driven by the dental industry's digitalization trend and anti-snoring products. Revenue growth in other markets mainly came from Thailand, Singapore, and Malaysia.
It is noteworthy that positive revenue growth was recorded in high-margin regions such as Europe and Australia, while MicroDental, a relatively low-margin business, experienced a revenue decline. This favorable shift in geographical mix, coupled with the appreciation of foreign currencies against the Hong Kong dollar, is expected to improve the group's overall margin percentage.
For the three months ended March 31, 2026, the group's total sales volume increased by approximately 4.0% to about 720,000 units (three months ended March 31, 2025: approximately 692,000 units). During the same period, the number of digital solution cases (both overseas and domestic) produced at the group's production facilities in mainland China, Thailand, and Vietnam increased to approximately 294,700 units, up 24.6% from the same period in 2025 (approximately 236,500 units). This increase is attributed to more clients adopting intraoral scanners. For clarity, this figure excludes digital solution cases produced at the group's production facilities outside mainland China, Thailand, Vietnam, or at overseas/satellite dental laboratories.
For the three months ended March 31, 2026, the average selling price of the group's dental prosthetics products in the market was HK$1,273 per unit (three months ended March 31, 2025: HK$1,188), an increase of approximately 7.2%, mainly due to the appreciation of foreign currencies against the Hong Kong dollar.
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