Modern Dental Group Limited, a leading global dental prosthetic device provider, announced the unaudited interim results for the six months ended 30 June 2025.

During the six months ended 30 June 2025, the Group’s multi-dimensional strategies and continuous enhancement of operational efficiency and productivity as supported by the ongoing trend of digitalisation in the dental industry, have resulted in the Group reporting record revenues, net profit and EBITDA numbers during this period. This occurred in a period of a challenging macro-economic environment with general softness in demand for dental procedures and trade war uncertainties. The Group has been proactive in its approach to deal with the unprecedented international trade environment, leveraging its international production facilities located in Thailand, Vietnam and Mainland China.

The global digitalisation trend continues to drive consolidation within the dental prosthetics industry, enabling the Group to further expand its market share. Our ongoing digital transformation initiatives are enhancing both customer and patient experiences while improving operational efficiency, further differentiating the Group from competitors and positioning us to outperform industry peers. By leveraging our sales and distribution network, we achieved a leading position in the dental prosthetics industry across Europe, North America, Greater China, Australia, and other countries.

European Businesses

The revenue generated from sales in the European markets accounted for the largest portion of our revenue for the period under review. During the period, the European market recorded a revenue of approximately HK$920.3 million, representing an increase of approximately HK$97.3 million as compared with the six months ended 30 June 2024. This geographic market accounted for approximately 50.2 per cent of the Group’s total revenue. The increase in revenue from the European market was attributable to the increase in sales order volume driven by the launch of new products, such as digital dentures, and our state-of-the-art digital workflows.

The Group has been the front runner providing comprehensive digital solutions offerings, ranging from numerous minimal invasive and aesthetic prosthetic solutions to intra-oral scanners and clear aligners, and is well positioned to capture the opportunities arising from the accelerated digitalization trend of the dental industry. The Group continues to aggressively gain market share from international and domestic competitors through our established dental ecosystem solutions with a focus on education and digitalization, which is available within close proximity to our clients; effectively meeting our clients’ high expectations through our various onshore and offshore resources. The Group is committed to and will continue to equip ourselves to provide the state-of-the-art digital solutions offering to the dental community in the market.

North American Businesses

The North American market represented the second largest portion of our revenue in the period under review. During the period, the North American market recorded a revenue of approximately HK$365.7 million, representing a decrease of approximately HK$19.6 million as compared with the six months ended 30 June 2024. This geographic market accounted for approximately 19.9% of the Group’s total revenue.

While demand for discretionary cosmetic treatments remained soft throughout the first half of 2025, our centralised digital workflows and network-wide production oversight enabled us to deliver enhanced service quality and operational efficiencies to our North American customers. Our diversified supply bases in the US, China, Vietnam and Thailand continue to provide greater flexibility to navigate US tariff uncertainties - an advantage that sets us apart from competitors. Although digitalisation of imported product lines initially drove growth in mass-market cases, implementation of the US tariff in April 2025 introduced new uncertainties and contributed to a subsequent decline in sales for our import-focused business unit.

Greater China Businesses

During the period under review, the Greater China market recorded a revenue of approximately HK$293.2 million, representing a decrease of approximately HK$42.6 million as compared with six months ended 30 June 2024. This geographic market accounted for approximately 16.0% of the Group’s total revenue. The Mainland China market faced headwinds from the volume-based procurement policies and a prolonged period of intense price competition. This also led to aggressive promotions for dental implant treatments by Mainland China dental clinics in Hong Kong (which experienced a notable decrease in patient visits in Hong Kong). The Group has deliberately pivoted away from low-margin segments and stayed focused on serving mid- and high-value customers, ensuring long-term sustainable profitability of the Group’s business.

The Group is optimistic in its mid/long-term outlook for this market in particular where the latest procurement-related government measures are expected to (i) standardize the pricing of dental prosthetics and develop price transparency, which would level the playing field; (ii) allow the Group’s leading brand name and reputation to be a key consideration for its client and customer; and (iii) have the Group benefit from its large production team and its ability to allocate resources efficiently according to the customer or client.

Australian Businesses

During the period under review, the Australian market recorded a revenue of approximately HK$137.9 million, representing an increase of approximately HK$10.0 million as compared with the six months ended 30 June 2024. This geographic market accounted for approximately 7.5% of the Group’s total revenue. The double-digit increase in revenue from Australia reflected a strong uptake of new digital products driven by the digitalisation trend in the dental industry and the revenue contribution from the acquisition of Digital Sleep, which is partially offset by the depreciation of AUD against HK$ by 4.0% compared with the six months ended 30 June 2024.

Other Markets

Other markets primarily include Indian Ocean countries, Malaysia, Taiwan, Singapore and Thailand. For the six months ended 30 June 2025, these markets recorded a revenue of approximately HK$117.8 million, representing an increase of approximately HK$87.9 million as compared with the six months ended 30 June 2024. This geographic market accounted for approximately 6.4 per cent of the Group’s total revenue. The increase in revenue from other markets was primarily driven by the revenue contribution from the newly acquired Hexa Ceram.

Future Prospects and Strategies

The global macroeconomic environment remains uncertain, with geopolitical challenges creating headwinds for businesses worldwide. However, the Group’s well-diversified global presence, spanning multiple regions and markets, positions it uniquely to navigate these challenges. Unlike competitors who operate in single countries or limited regions, the Group’s balanced and diversified country risk strategy ensures resilience and stability, even in turbulent times. This global footprint, combined with our ability to adapt to local market conditions, places the Group in the best position to outperform competitors and capitalise on emerging opportunities.

Digitalisation is an irreversible trend driving the consolidation of the dental prosthetics industry. The Group is taking full advantage of this trend, leveraging its centralised digital workflows, advanced production capabilities, and global network to enhance operational efficiencies and deliver superior customer experiences. Our continued investment in digitalisation not only strengthens our competitive edge but also accelerates the consolidation of the industry, enabling the Group to capture a larger market share.

Following our landmark acquisitions in previous years, including the recent acquisition of Hexa Ceram, Thailand’s largest dental laboratory, in January 2025, the Group’s global distribution and sales network is further diversified with a larger presence in the Southeast Asia region. This expansion, coupled with our diversified supply bases in the US, China, Vietnam, and Thailand, provides the Group with unparalleled flexibility to navigate challenges in connection with trade uncertainties and other geopolitical risks. With the Board’s extensive experience and determination to overcome short-term challenges, the Group is well-positioned to seize new business opportunities while remaining cautious and prudent in safeguarding shareholders’ interests.