FAST NEWS: Clarity Medical’s loss widens on higher expenses
The Latest: Private ophthalmology hospital operator Clarity Medical Group Holding Ltd. (1406.HK) on Monday reported its net loss widened by about 22 times to HK$75.79 million ($9.7 million) in the 2023/24 financial year through March.
Looking Up: The company recorded revenue of HK$4.17 million from the sale of vision products for the first time, and said it would seize new growth opportunities while ensuring cost efficiency.
Take Note: A 10.7% decrease in the company’s revenue to HK$190 million, coupled with higher employee benefit expenses, financing costs and asset depreciation, were the main reasons for the significantly wider loss.
Digging Deeper: Founded in 2005, Clarity Medical is a private ophthalmology specialist providing comprehensive eye care services. The company is based in Hong Kong and plans to enter the mainland China market. It raised HK$180 million through its listing in Hong Kong two years ago, and has said it will use some of those funds to acquire one or two eye clinics in the Greater Bay Area in Southern Guangdong province. However, it has turned from profit to loss since financial year 2022/23 due to a big increase in expenses, reversing the trend of making profits for several years in the past.
Market Reaction: Clarity Medical’s shares fell on Tuesday, closing down 3.9% to HK$0.49 at the midday break. The stock now trades at the lower end of its 52-week range.
Translation by A. Au
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