Thriving Growth Driven by Broadening of Elderly Residential Care Homes Network

 

HONG KONG, CHINA -- 7 August 2018 - Hang Chi Holdings Limited ("Hang Chi", or the "Company", together with its subsidiaries, the "Group", stock code: 8405.HK), a well-established home-grown operator of elderly residential care homes in Hong Kong, announced its unaudited interim results for the 6 months ended 30 June 2018 ("the Reporting Period"). 

 

During the Reporting Period, the Group's revenue soared by 44.69% to HK$65.91 million, and the profit for the Period shot up by 182.94% to HK$9.55 million, principally propelled by the rise in the total number of residential care places under the Group through the acquisition of Shui Jun Nursing Centre (Yau Tong) Company Limited ("Shui Jun (Yau Tong)"), and no listing expense was recorded during the Reporting Period.

 

During the Reporting Period, the revenue generated from the rendering of elderly home care services increased to approximately HK$51.24 million from approximately HK$37.71 million for the same period last year, representing an approximately 35.89% hike and accounting for 77.75% of the Group's total revenue. 

 

The revenue derived by the Hong Kong Social Welfare Department, which leased a fixed number of places at the Group's elderly residential care homes under the Enhanced Bought Place Scheme ("EBPS"), went up by approximately 19.25% to HK$14.25 million. Moreover, the revenue generated from the rendering of elderly home care services for individual customers, together with the unsubsidised portions paid by individual customers under the EBPS, grew significantly by approximately 43.55% to $36.83 million. 

 

The revenue derived from the non-governmental organisations which leased residential care places from the Group's elderly residential care homes surged by approximately 58.25% to HK$163,000. During the Reporting Period, the average occupancy rates of the Group's elderly residential care homes under EBPS and non-EBPS elderly residential care homes were approximately 96.85% and 94.01%, respectively.

 

The Group's other major source of revenue was the sales of elderly related goods and provision of healthcare services. During the reporting period, the related revenue jumped by approximately 87.02% to HK$14.66 million, accounting for approximately 22.25% of the Group's total revenue.

 

Looking to the future, Mr. Yik Tak Chi, Chairman and Executive Director of Hang Chi said, "Due to the ageing population in Hong Kong, the demand for quality elderly care homes is constantly on the rise. In view of the vast growth potential of the elderly residential care homes market, the Group has completed the acquisition of Shui Jun (Yau Tong) to increase its total residential care places to 814 in November 2017. 

 

The Group will continue to expand the operation by further acquiring or leasing new residential care home, and, concurrently, we will also broaden our capabilities through increasing the sales of elderly related goods and the provision of healthcare services, in order to provide better services to the elders while maximising profits to shareholders." (MO).