Clarity Medical Group Holding Limited reported a FY2025 net loss of HK$34.29 million, a 54.8% year-on-year improvement from FY2024’s HK$75.79 million deficit, as management-driven cost controls and lower impairment charges outweighed a decline in top-line performance.
Revenue slipped 5.4% to HK$180.59 million, weighed down by softer demand for refractive procedures—especially Small Incision Lenticule Extraction (SMILE) surgeries—whose revenue fell HK$9.02 million. This was partly offset by a HK$9.60 million rise in Implantable Collamer Lens (ICL) implantations, lifting the segment’s contribution to 17.4% of sales (FY2024: 11.4%). Refractive treatments remained the largest revenue driver, accounting for 57.4% of turnover, while treatments for other eye diseases represented 29.2%. Children’s myopia prevention revenue contracted 65.9% to HK$2.53 million after the closure of the Tsim Sha Tsui centre.
Total operating costs were pared back across major expense lines: • Consultancy fees fell 15.2% to HK$64.34 million, or 35.6% of revenue, as fixed-fee commitments were reduced and minimum guarantees renegotiated. • Employee benefit expenses declined 17.7% to HK$50.21 million, reflecting a lower headcount following the Tsim Sha Tsui centre shutdown. • Depreciation of plant, equipment and right-of-use assets dropped 33.1% to HK$23.03 million, helped by facility rationalisation. • Impairment charges on plant and equipment fell to HK$4.39 million (FY2024: HK$30.05 million, including right-of-use assets).
Adjusted EBITDA loss narrowed sharply to HK$6.15 million from HK$36.33 million a year earlier. Operating cash flow swung to a HK$17.87 million inflow (FY2024: outflow of HK$15.63 million), aided by working-capital disciplines and the HK$12.70 million recovery of an outstanding loan from a medical practitioner. Net cash outflow for the year was limited to HK$8.86 million, leaving cash and cash equivalents at HK$132.57 million and the Group debt-free.
The balance sheet remains liquid, with net current assets of HK$108.59 million and a current ratio of 4.1x (31 March 2024: 4.4x). Capital expenditure was trimmed to HK$8.40 million (FY2024: HK$39.68 million), chiefly for equipment purchases; no new capital commitments were outstanding at year-end.
Amid ongoing forensic and internal-control investigations into corporate-governance allegations and IPO-related matters, trading in Clarity Medical’s shares has been suspended since 15 April 2025. The Hong Kong Stock Exchange has set an 18-month resumption deadline ending 14 October 2026, contingent on completion of independent investigations and remedial actions. The company flagged significant continuing legal and advisory expenses and noted potential operational disruptions linked to the probes.
Given the loss position, the Board did not recommend a dividend for FY2025 (FY2024: nil). The group plans to utilise the remaining HK$94.30 million of its HK$181.90 million IPO proceeds by March 2028, primarily for Hong Kong centre expansion and potential acquisitions or partnerships in Mainland China’s ophthalmology sector.