Himax Eye Care Reports H1 Revenue of HK$882 Million and Plans New Hospital in Foshan

China Securities News (Reporter Fu Suying) — C-MER Medical Holdings Limited announced on August 31 that it has opened two new ophthalmology hospitals in mainland China this year, located in Guangzhou and Jieyang respectively. Another ophthalmology hospital is planned to open in Foshan in the second half of the year. In the second half of the year, the company will also strengthen the development of optometry and myopia prevention and control services, accelerating its expansion in the Greater Bay Area through a "1+N" model. The company continues to promote mergers and acquisitions integration in Hong Kong, establishing a multi-specialty and multi-level medical service network.

C-MER Medical released its financial performance for the first half of 2022 on the evening of August 30. The total revenue reached HKD 882 million, a year-on-year increase of 69%. The earnings before interest, taxes, depreciation, and amortization (EBITDA) were HKD 144 million, marking a year-on-year growth of 50.7%. The profit attributable to shareholders increased by 8% year-on-year to HKD 14.815 million. The adjusted profit attributable to shareholders surged by 141.1% year-on-year to HKD 90.34 million.

Among them, the revenue of the company's core ophthalmology business increased by 17% to HKD 577 million. The ophthalmology business in Hong Kong maintained growth despite the pandemic; the revenue of the non-ophthalmology business surged 11 times to HKD 305 million, benefiting from the continuous development of non-ophthalmology business in Hong Kong.

Entering 2022, the company conducted multiple mergers and acquisitions, integrating its ophthalmology business while expanding into the dental sector. In January 2022, the acquisition of Jiabin Ophthalmology was completed, and during the same period, an investment was made in the "Optometrist Eye Examination Center" group, with a focus on developing comprehensive treatment solutions for childhood myopia prevention and control. In the dental field, in February this year, after C-MER Medical completed the acquisition of a controlling stake in Shenzhen Aikangjian Dental, it officially changed its name to C-MER Aikangjian Dental, beginning full management. Meanwhile, the company completed the acquisition of several clinics in Hong Kong that provide dental and other medical services from different independent third parties.

In the first half of the year, C-MER Medical's ophthalmic medical network in China expanded simultaneously. Jieyang C-MER Lin Shun Chao Eye Hospital officially opened on August 16 this year, becoming the second new ophthalmic hospital established by the group in China this year after the opening of Guangzhou C-MER Lin Shun Chao Eye Hospital in March. Jieyang C-MER Lin Shun Chao Eye Hospital has formed a medical consortium with Jieyang People's Hospital, and the two parties will cooperate and exchange in the aspects of difficult case consultations, doctor training, and academic research.

C-MER Weilan Clinic in Nanshan, Shenzhen, saw ideal operations in the first two months after commencing services in June. The clinic, together with the group's two ophthalmology hospitals located in Futian and Xinan of Shenzhen, forms a "hospital + satellite clinic" network, demonstrating a significant role in patient referral. This establishes an excellent model for the future 1+N expansion strategy.

Dr. Dennis Lam, Chairman and CEO of C-MER Medical, stated, "While the company continues to expand its diversified 'Eye+Dental' healthcare network, it is actively implementing the integration and collaboration of newly acquired projects, strengthening management, and infusing the C-MER philosophy of professionalism and quality to maximize synergies."