Clear Healthcare (01406.HK) achieved total revenue of approximately HK$100 million in the first half of 2023/24, down about 5.6% from the same period last year. At the same time, the Group generated a net loss of approximately HK$20.19,000 in the first half of the fiscal year due to the increase in share and expenditure generated by the investment in services [the new Tsim Sha Tsui Centre].

Uncertainty in the Hong Kong market: In the first half of 2023/24, Clear Medical (01406.HK) provided a total of 1,962 refractive surgeries. Among them, implantable contact lens implantation surgery was the only surgery that increased in quantity among multiple surgeries. The decline in the number of surgeries was mainly negatively affected by changes in the doctors' union, extreme weather in September 2023, and intense competition for SMILE orthopedic surgery. At the same time, the average prices for SMILE correction surgery, LASIK correction surgery, and implantable contact lens implant surgery declined compared to the same period last year, leading to a decrease of about 18.4% in the Group's revenue from refractive treatment services over the same period last year.

The pricing strategy of peers and the expansion plans of new entrants headquartered in Germany are the biggest uncertainties facing the group at present.

Incubating New Businesses: The opening of [New Tsim Sha Tsui Centre] marks the beginning of a new business development in Clear Healthcare (01406.HK). Regular prevention and control services provide a stable source of revenue for the Group. The group has obtained a fairly ideal number of customers in its operations over the past few months, but since the group provided discounts at the beginning of the business, the average price of the service was far lower than the standard price, the group needed more time to adjust the marketing strategy and pricing strategy to increase the contribution of the business.

Furthermore, there has been satisfactory growth in implantable contact lens implant surgery. The number of surgeries performed in the third quarter of 2023/24 rose to a level of about 100 per month, reflecting that i) the market penetration rate of implantable contact lens implant surgery is increasing, and ii) as one of the market leaders, the group is replicating the successful experience of introducing SMILE correction surgery to create a market for implantable contact lens implants, which is a positive signal for the future development of the group.

Proposed cost reduction measures: In response to the weaker financial performance in recent years, Clear Healthcare (01406.HK) proposed a series of cost reduction measures, including i) adjustments to the doctors' union and distribution system, ii) considering reducing the total floor area of individual medical centers, and iii) reducing the manpower ratio. These cost reduction measures are expected to be gradually reflected next year. Coupled with the increase in the contribution ratio of the [New Tsim Sha Tsui Centre], it is expected that the Group's financial performance will continue to improve, and even regain profits in the 2024/25 fiscal year.