Modern Dental Group Limited 2025 Annual Report: Revenue of HK$3.737 Billion, Net Profit Up 47.7% Year-on-Year

Modern Dental Group Annual Results Announcement

Revenue of HK$3.737 billion (+11.1%) / Net Profit of HK$601 million (+47.7%) / Digital Cases Surpass 1 Million

DentalGoodNews｜On March 26, 2026, Modern Dental Group Limited (hereinafter referred to as "Modern Dental") released its annual results announcement for the year 2025. The report shows that as of December 31, 2025, the Group's full-year revenue was approximately HK$3.737 billion (approximately RMB 3.256 billion), a year-on-year increase of 11.1%; net profit was approximately HK$601 million (approximately RMB 524 million), a year-on-year increase of 47.7%. The Group's revenue, net profit, and Earnings Before Interest, Taxes, Depreciation and Amortization all reached record highs.

The report indicates that against the backdrop of accelerated digital transformation, Modern Dental's digital solution cases increased to approximately 1.0392 million in 2025, a year-on-year growth of 32.7%. This growth was primarily driven by increased adoption of intraoral scanners by clients and the efficient operations of the Group's production facilities in Mainland China, Thailand, and Vietnam. According to previous reports by DGN, Hillhouse Investment Management Limited invested HK$935 million to increase its stake in Modern Dental by 17% in early 2026, raising its shareholding ratio to 17.24%.

Modern Dental Group Annual Results Announcement

By product line, fixed prosthodontics remained the Group's core pillar, generating revenue of HK$2.205 billion (approximately RMB 1.921 billion) in 2025, accounting for 63.0% of total custom-made product revenue. These products include Dental Crowns and bridges used in dental restoration procedures. The Group stated that sales volume and market share increased, driven by the industry's digitalization trend. Removable Denture prosthetics recorded revenue of HK$916 million (approximately RMB 798 million), accounting for 26.1%, primarily including complete and partial dentures used to replace natural teeth. Additionally, the "Other" segment, encompassing Orthodontics, anti-snoring devices, and intraoral scanners, achieved revenue of HK$615 million (approximately RMB 536 million). Within this segment, sales of the Group's own Clear Aligner brand, TrioClear, reached HK$59.733 million (approximately RMB 52.046 million), a year-on-year increase of approximately 25.5%, establishing it as a new business growth driver.

Modern Dental Group Annual Results Announcement

By region, the European market performed particularly strongly, contributing revenue of HK$1.887 billion (approximately RMB 1.644 billion), a year-on-year increase of 11.8%, and raising its share of total revenue to 50.5%. The report attributes the success in this market to the Group's locally established dental ecosystem centered on education and digitalization. The Australian market also recorded revenue of HK$289 million (approximately RMB 252 million), with an increase of 11.8%, primarily reflecting the rapid penetration of digital products in the region.

However, performance in North America and Greater China declined. Revenue in the North American market fell by 7.4% to HK$696 million, mainly impacted by weak demand and trade environment uncertainties. Revenue in Greater China was HK$615 million (approximately RMB 536 million), a year-on-year decrease of 7.1%. Within this, the Mainland China market faced ongoing terminal price competition due to the Volume-Based Procurement (VBP) policy, coupled with consumption downgrading under the macroeconomic environment, leading to downward pressure on prices for denture and implant products, with sales decreasing by approximately 4.2% in original reporting currency; the Hong Kong market saw sales decrease by approximately 11.5% in original reporting currency. Modern Dental stated its intention to gradually exit low-profit market segments in the future, focusing on mid-to-high-value clients to safeguard long-term profitability and brand reputation.

Modern Dental Group Annual Results Announcement

Regarding M&A and integration, Modern Dental completed the acquisition of Hexa Ceram, Thailand's largest dental laboratory, in January 2025, and secured a controlling stake in Australia's Digital Sleep Design in February. Hexa Ceram not only directly contributed approximately HK$216 million (approximately RMB 188 million) in revenue to the Group in 2025 but also significantly enhanced the Group's production capacity and distribution network in Southeast Asia. Through diversified production bases established in China, Vietnam, Thailand, and the United States, Modern Dental stated it has gained greater flexibility in addressing single-market trade risks and can support rapid delivery globally.

Modern Dental Group Annual Results Announcement

On the financial performance front, benefiting from improved operational efficiency, productivity gains from digitalization trends, and a favorable geographic sales mix (increased share of high-margin European and Australian markets), the Group's overall gross profit margin improved from 53.5% in 2024 to 55.8%. Administrative expenses rose by 11.9% to HK$853 million, representing approximately 22.8% of the Group's revenue, due to an increase in headcount and the consolidation of Hexa Ceram. Notably, due to reduced loan balances and changes in the HIBOR interest rate environment, financing costs for the period decreased from HK$51.651 million (approximately RMB 45.004 million) in 2024 to HK$34.402 million (approximately RMB 29.975 million), a reduction of 33.4%, indicating some optimization of the financial structure.

Modern Dental Group Annual Results Announcement

In terms of cash flow and dividends, Modern Dental's net cash generated from operating activities in 2025 increased to HK$763 million (approximately RMB 665 million), with cash and cash equivalents maintained at a healthy level of HK$767 million. Based on the record performance, the Board recommended a final dividend of HK$0.15 per share, a significant increase of 63% from HK$0.092 per share in 2024, reflecting the Group's proactive dividend policy to reward shareholders.

Looking ahead, Modern Dental stated it will adhere to a multi-dimensional globalization strategy and will continue to increase investment in large-scale production facilities, AI automation, and digital R&D, aiming to consolidate its market leadership by raising technological barriers. Furthermore, Modern Dental indicated it will continue to seek M&A opportunities with strategic synergies, particularly in the high-growth Clear Aligner and digital diagnosis & treatment fields, to navigate the complex and volatile global trade environment.