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[FOR IMMEDIATE RELEASE]
Modern Dental Group Limited
******
Modern Dental Announces 2015 Annual Results
Financial Highlights:
HK$ in million
For the year ended 31 December
2015
2014
Change
1,415.6
1,192.2
+18.7%
761.4
642.1
+18.6%
53.8%
53.9%
-1% p.p.
+12.5%
302.0
268.4
+9.1%
196.4
180.0
-34.3%
9.93
15.12
Revenue
Gross profit
Gross profit margin
Core EBITDA
Core net profit
Basic earnings per share (HK cents)
(23 March 2016, Hong Kong) Modern Dental Group Limited (“Modern Dental” or the “Company”
together with its subsidiaries, the “Group”, SEHK stock code: 3600), a leading global dental prosthetic
device provider, announces today the annual results for the year ended 31 December 2015 (the
“Year”).
During the Year, the consolidated revenue of the Group amounted to HK$1,415.6 million, representing
an increase of 18.7% as compared with that in 2014. The increase was mainly attributable to (i) the
acquisition of SCDL Group and the full year consolidation of Elysee; (ii) the annual increment of retail
prices to the dentists; (iii) the organic growth in sales volume; (iv) the strategy of shifting the focus to
high value-added products; and (v) the operation of regional digital production facilities to provide
locally made products with higher retails prices to the dentists.
Gross profit for the Year was approximately HK$761.4 million, which was approximately 18.6% higher
than that of 2014. Gross profit margin remained stable at approximately 53.8% (2014: 53.9%). Profit
for the Year decreased by approximately 36.8% to HK$83.0 million, the decrease was primarily
attributable to the payment of expenses for the listing of the shares of the Company on the Main Board
of The Stock Exchange of Hong Kong Limited on 15 December 2015. Excluding the effects of certain
non-cash or non-recurring items, core EBITDA and core net profit were HK$302.0 million (2014:
HK$268.4 million) and HK$196.4 million (2014: HK$180.0 million), respectively, representing an
increase of approximately 12.5% and 9.1%, respectively. Basic earnings per share amounted to
HK$9.93 cents (2014: HK$15.12 cents).
Modern Dental is a leading global dental prosthetic device provider with a focus on providing custommade prostheses to customers in the growing prosthetics industry. Its product portfolio is broadly
categorized into three product lines, namely fixed prosthetic devices, removable prosthetic and other
devices.
— Cont’d —
Modern Dental Announces 2015 Annual Results
23 March 2016, Page 2/4
Fixed prosthetic devices, including crowns and bridges, are the major products of the Group. During
the Year, fixed prosthetic devices business segment recorded a revenue of approximately HK$964.8
million, representing an increase of approximately 17.0% as compared with the year of 2014. This
business segment accounted for 68.2% of the Group’s total revenue (2014: approximately 69.2%).
Removable prosthetic devices, primarily comprising dentures, are another key products of the Group.
During the Year, removable prosthetic devices business segment recorded a revenue of
approximately HK$289.6 million, representing an increase of approximately 9.5% as compared with
the year of 2014. This business segment accounted for 20.4% of the Group’s total revenue (2014:
approximately 22.2%).
Other devices include orthodontic devices, anti-snoring devices, sport guards, raw materials, dental
equipment, Invisalign and the services of educational events and seminars rendered. During the Year,
other devices business segment recorded a revenue of approximately HK$161.2 million, representing
an increase of approximately 56.0% as compared with the year of 2014. This business segment
accounted for 11.4% of the Group’s total revenue (2014: approximately 8.6%).
In terms of geographic market, the European market remains the largest market of the Group and
recorded a revenue of approximately HK$695.3 million, representing an increase of approximately
5.5% as compared with the last year. Together with the sales of dental equipment of HK$3.0 million,
the European market accounted for approximately 49.3% of the Group’s total revenue (2014:
approximately 55.3%).
The Greater China market is the second largest market of the Group and recorded a revenue of
approximately HK$383.5 million, representing an increase of approximately 17.5% as compared with
the year of 2014. Together with the sales of raw materials of HK$986,000, the Greater China market
accounted for approximately 27.2% of the Group’s total revenue (2014: approximately 28.0%).
The North American market recorded a revenue of approximately HK$158.2 million during the Year,
representing an increase of approximately 29.3% as compared with the last year. The North American
market accounted for approximately 11.2% of the Group’s total revenue (2014: approximately 10.3%).
In Australia and New Zealand, the Group acquired the SCDL Group, which was the Group’s principal
Australian distributor, in March 2015. During the Year, this market recorded a revenue of
approximately HK$158.0 million, representing an increase of approximately 149.2% as compared with
the last year. Together with the service revenue generated from rendering educational events and
seminars of HK$4.5 million, this market accounted for approximately 11.5% of the Group’s total
revenue (2014: approximately 5.3%).
Other markets recorded a revenue of approximately HK$12.2 million during the Year (2014: HK$13.2
million and accounted for approximately 0.8% of the Group’s total revenue (2014: approximately
1.1%).
Commenting on the prospects of the Company, Mr. Ngai Shing Kin, Chief Executive Officer of Modern
Dental said, “According to Roland Berger, an independent industry consultant, the demand for dental
prosthetics continues to increase owing to the growing global population and the increasing aging
population. All of the Group’s key dental prosthetics markets show trends of growth, except the Dutch
market, which has been affected by the price ceiling set on dental prosthetics by the Dutch
government. Mainland China is expected to be the market with the highest growth rate, although with
a comparatively small base largely due to the low penetration rate of prosthetic devices.
— Cont’d —
Modern Dental Announces 2015 Annual Results
23 March 2016, Page 3/4
“In the coming year, the Group will continue to (i) further penetrate existing geographic markets, (ii)
further realize the synergy effects and operating leverage achieved by further integrating the acquired
targets, (iii) optimize the production process and increase the productivity and efficiency, and (iv)
broaden product offering with a focus on high-value products to increase the profitability. In particular,
we will actively seek opportunities to further penetrate the existing geographic markets by means of
strategic acquisitions of local dental laboratories and setting up joint ventures in Mainland China and
local dental laboratories. We strive to become an effective consolidator in this fragmented industry
with an aim of optimizing the value for itself and the shareholders as a whole.”
— End —
About Modern Dental
Modern Dental is a leading global dental prosthetic device provider with a focus on providing custommade prostheses to customers in the growing prosthetics industry. Its product portfolio is broadly
categorized into three product lines: fixed prosthetic devices, such as crowns and bridges; removable
prosthetic devices such as removable dentures; and other devices such as orthodontic devices, sports
guards and anti-snoring devices, raw materials, dental equipment, Invisaligen and the services of
educational events and seminars rendered.
For further information, please contact:
iPR Ogilvy & Mather
Callis Lau / Tina Law / Maggie Chui / Elizabeth Chu / Charlie Lai
Tel:
(852) 2136 6952 / / 2136 6181 / 2136 8059 / 3920 7684 / 3920 7634
Fax:
(852) 3170 6606
Email: [email protected]