C-MER Medical exits Apollo Lens, cancels bond liability

C-MER Medical Holdings Limited has entered into a Deed with Hong Kong Optical Lens Company Limited (HKO) on December 17, 2025, to dispose of its 55% equity interest in Apollo Lens Company Limited. This transaction involves HKO repurchasing the shares from C-MER Medical. In consideration, HKO has agreed to cancel and surrender a 2% RMB denominated HKD settled unsecured bond with a principal sum of RMB50.49 million, releasing C-MER Medical from its obligations.

Upon completion, Apollo will cease to be a non-wholly owned subsidiary of C-MER Medical, and the company will no longer hold any equity interests in Apollo. This strategic adjustment aims to optimize the use of internal resources and aligns with the Group's focus on ophthalmic services in Hong Kong and Mainland China, and dental and medical business in Shenzhen.

Preliminary estimates indicate the Group may record a gain on disposal of approximately HK$3.9 million, calculated based on the bond's carrying value less Apollo's unaudited net assets as of October 31, 2025. However, unrealized exchange loss, accrued interest expenses, and joint venture results are expected to partially offset this gain.