C-MER Medical released its audited results for the year ended 31 December 2025, reporting a turnaround to profit and notable margin expansion driven by cost controls and lower impairment charges.

Revenue and Profitability • Group revenue rose 1.8% year-on-year to HK$1.95 billion. • Gross profit increased 14.4% to HK$603.67 million; gross margin widened to 31.0% from 27.6%. • Net profit reached HK$111.17 million versus a HK$108.31 million loss in 2024. • Adjusted profit (excluding Mainland China other business and impairment losses) advanced 41.1% to HK$152.24 million; adjusted profit attributable to equity holders surged 81.5% to HK$137.86 million.

Segment Performance • Hong Kong medical business revenue grew 5.2% to HK$948.73 million with gross margin improving to 28.5%. • Mainland China ophthalmic revenue fell 4.9% to HK$520.33 million; segment loss narrowed sharply to HK$1.17 million from HK$229.76 million after extensive cost optimisation. • Mainland China dental revenue slipped 1.0% to HK$459.83 million; segment profit declined to HK$67.53 million on lower revenue per dental chair. • Mainland China other business, mainly the C+ Health Hospital in Shenzhen, contributed HK$17.83 million in revenue and recorded a HK$26.34 million loss.

Expense and Impairment Highlights • Cost of revenue decreased 3.1% to HK$1.34 billion; impairment losses on non-current assets dropped to HK$0.65 million from HK$197.66 million in 2024. • Selling expenses rose 5.7% to HK$140.99 million, representing 7.2% of revenue. • Administrative expenses fell 3.6% to HK$330.39 million, reflecting tighter headcount and depreciation savings.

Balance Sheet and Liquidity • Total assets stood at HK$2.73 billion; equity attributable to shareholders was HK$1.77 billion. • Cash and cash equivalents were HK$347.87 million, supplemented by HK$107.09 million in short-term deposits. • Bank borrowings totalled HK$44.35 million; the group remained in a net cash position, so gearing was nil. • Capital expenditure reached HK$355.83 million, mainly for right-of-use assets, property upgrades and new equipment.

Cash Flow and Capital Management • Net operating cash inflow remained stable at HK$283.30 million. • Net investing outflow was HK$142.60 million, reflecting equipment purchases and deposit placements. • Net financing outflow totalled HK$221.32 million, driven by HK$142.86 million in lease payments and HK$54.14 million spent on repurchasing 30.99 million shares. • During the year, 23.22 million repurchased shares were cancelled while 19.56 million are held as treasury stock for potential resale.

Dividends The Board proposes a final dividend of HK$0.02 per share and a special dividend of HK$0.01 per share, equivalent to a 36.2% payout of 2025 profit attributable to equity holders. Payment is subject to shareholder approval at the 20 May 2026 AGM, with an expected pay-out date of 15 July 2026.

Strategic Developments and Outlook Management will prioritise: 1) expanding core ophthalmic services in Hong Kong and optimising Mainland operations; 2) scaling cross-border dental and multi-disciplinary services through Shenzhen CKJ and C+ Health Hospital; 3) maintaining stringent cost discipline; and 4) selective investments in medical innovation following the Belkin Vision precedent.

No material events occurred after the reporting date.