C-MER Eye Care Holdings Limited (“C-MER” or the “Group”) (SEHK stock code: 3309), is pleased to announce today its annual results for the financial year ended 31 December 2021.
FY21 revenue increases 59% YoY
Benefitting from continued high growth of businesses in Mainland China and Hong Kong, the Group achieves record-high revenue in FY21 of HK$1.1126 billion, representing YoY increase of 59% (FY20: 699.5 million).
The increase in revenue is largely due to the high growth of businesses in Mainland China and Hong Kong, which achieved 58% and 60% growth, respectively.
However, the effect of revenue growth on net profits is partially offset by the results of loss-making hospitals and ophthalmic centers that are still at early stages of investment.
In FY21, C-MER was able to turn-profit, recording net profits attributable to shareholders of HK$21.9 million (FY20: $6.2 million net loss).
Management expects that, despite the effects of the latest wave of the SARS-CoV-2 variant (Omicron), the core ophthalmic businesses of the Group in Mainland China and Hong Kong will sustain growth, whilst new businesses and M&A activities announced in 2021 and 2022 shall drive future growth. Thus, Management expects the Group to continue achieving considerable revenue growth in FY22.
Enhancing the ophthalmic ecosystem with the “Eye+” Strategy and continuing expansion into multi-specialty medical services
FY21 was a successful year for C-MER. Through the deployment and execution of the “Eye+” Strategy, the Group completed a number of M&A transactions and confirmed a number of projects-in-development to add to its core ophthalmic business, further strengthening the Group’s ophthalmic network in the Greater Bay Area and Hong Kong, and began developing a multi-specialty ecosystem surrounding the Group’s core ophthalmic business. Since the beginning of FY21, C-MER completed 9 M&A transactions, representing HK$700 million in total investments, adding 37 medical establishments in Mainland China and Hong Kong.
In the ophthalmic business, C-MER added 7 eye hospitals and clinics (Guangzhou, Shenzhen Nanshan, Fuzhou, Weizhou, Tsim Sha Tsui K11 Atelier, and Champion Group in Hong Kong), and confirmed 2 hospitals-in-development in Fuzhou and Jieyang in FY21. The Group concurrently took steps to expand vertically, including the confirmation of an Ortho-K Lens project, the acquisition 60% stake in The Optometry (OPT) Centre, and a strategic collaboration with The Hong Kong Polytechnic University in relation to the training of Optometrists.
In August 2021, under a new Government Drug Measure, C-MER (Zhuhai) Dennis Lam Eye Hospital (“Zhuhai Hospital”) became one of the few designated healthcare institutions and the only eye hospital operating in the Guangdong-Hong Kong-Macao Greater Bay Area, to be able to use, on a trial basis, Hong Kong-registered drugs and medical devices used in Hong Kong public hospitals with urgent clinical use. In March 2022, Novartis’ new drug BEOVU® for the treatment of Age-related Macular Degeneration (AMD) began use at the Zhuhai Hospital. Patients suffering from Macular Degeneration from across the country are now able to access the new treatment at the Zhuhai Hospital. Management is hopeful other Group hospitals will benefit from the same policy in the future, and through the network of hospitals in the Greater Bay Area, serve nation-wide patients with innovative and efficient treatments. The policy not only provides C-MER ophthalmic hospitals with a competitive edge in the Greater Bay Area but is an important constituent to the Ophthalmic Ecosystem C-MER envisions.
During 2021, the Group actively expanded to other specialty medical services, including Dental, Medical Aesthetics and Oncology. In particular, the Group had great success in the Dental space in both Mainland China and Hong Kong. In Hong Kong, the Group successfully developed a large-scale specialty clinic and satellite clinic network through M&A and developmental projects, including the core dental specialty centers located at K11 Atelier (Tsim Sha Tsui) and Central Building (Central). In Mainland China, the Group acquired controlling interest in the reputable dental group, CKJ, adding a dental hospital and 12 dental clinics to the Group in the process, providing a solid basis on which to grow the Group’s Dental presence in Shenzhen.
Corporate Social Responsibility: “Together, We Fight the Virus”
C-MER is committed to protecting the health of citizens. The Group deeply participated in and engaged in the fight against the epidemic in Mainland China and Hong Kong. In Mainland China, medical teams of C-MER Shenzhen, C-MER Shanghai and C-MER Kunming actively supported vaccination work, and assisted in over 10 million doses of vaccination. C-MER Beijing provided support 3 times in a month to epidemic prevention work. Teams from C-MER Weizhou also travelled to support the nucleic acid testing in Dongguan.
In Hong Kong, the 5th wave of the COVID-19 pandemic brought record infections, driving demand for test-kits to record levels. With the goal of delivering supply to the wider public with quality test-kits, on 18th February 2022, C-MER entered into a sole distributor agreement with Shenzhen YHLO Biotech Co (“YHLO”) (SHHK stock code: 688575) to act as the sole distributor of YHLO GLINE-2019-nCoV Rapid Antigen Self-test in Hong Kong.
C-MER, together with YHLO, donated 1.2 million rapid test-kits to the wider public through over 70 partnering charities and non-profit organizations. The main recipients of the rapid test-kits include high-risk individuals and those who require regular testing in their line of work, including those working in elderly and nursing homes, cleaning, security, taxis, and minibuses, the chronically ill and families living in subdivided rooms.
FY22: To continue the pursuit of high growth and to capture opportunities that are reasonably valued with meaningful growth potential
Dr Dennis Lam, Chairman and Chief Executive Officer of C-MER said, “2021 represents a year of accelerated growth for C-MER since being publicly traded. We completed multiple strategic targets and M&A transactions and achieved flying colors in Ophthalmology and Dental. The implementation of the Drug Policy also provided C-MER with an important competitive edge in the Greater Bay Area. Looking to 2022, although Omicron presents certain operational challenges to C-MER, we are confident the epidemic is manageable, and C-MER, as an ophthalmic-centered business, will continue to achieve high growth. We shall explore opportunities in the epidemic, actively capture ones that are reasonably valued and with meaningful growth potential, and continue to consolidate the highly fragmented private medical market in Hong Kong.
Image 1: Team Dennis Lam carrying out the first Beovu® injection approved under the New Drug Policy
Image 2: C-MER (Guangzhou) Dennis Lam Eye Hospital’s grand opening in March 2022
Image 3: C-MER acquires 61.5% stake in Shenzhen CKJ
C-MER was founded by Dr. Dennis Lam in 2012. We are one of the leading multi-specialty medical service providers in Hong Kong and the Greater Bay Area. We are headquartered in Hong Kong and have an extensive network of hospitals in major cities in Mainland China. With ophthalmic services at our core, we shall continue expanding our scope of specialty medical services including, but not limited to, Dental, Plastic Surgery/Medical Aesthetics, Family Medicine, Oncology, and Medical Examination. The Group currently has over 60 medical establishments across Hong Kong, Greater Bay Area (including Shenzhen and Guangzhou), Beijing, Shanghai, Kunming and Fuzhou, providing patients with professional, quality, reasonably priced, and patient-centric Hong Kong-style medical care across multiple specialties. C-MER is listed on the Main Board of the Hong Kong Stock Exchange (Stock code: 3309).
|Kevin Chan||Investor relations|