Expansion of Elderly Residential Care Homes Network to Provide Quality Service for the Elderly

 

Substantial Increase of 107% in Profit for the Period

 

HONG KONG, CHINA -- 7 November 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 third quarter results for the 9 months ended 30 September 2018.

 

Benefitting from the acquisition of Shui Jun Nursing Centre (Yau Tong) Company Limited ("Shui Jun (Yau Tong)") in November 2017, the Group's revenue surged by 45.39% to approximately HK$100.72 million during the reporting period; and the profit for the period increased substantially by 106.69% to HK$16.50 million.

 

During the reporting period, the revenue generated from the rendering of elderly residential care services reached approximately HK$77.77 million, which accounted to an increase of 38.49% and approximately 77.21% of the Group's total revenue. 

 

The revenue generated by the Hong Kong Social Welfare Department, which leased a fixed number of places at Hang Chi's elderly residential care homes under the Enhanced Bought Place Scheme ("EBPS") increased significantly by 23.53% to HK$22.40 million, mainly benefitting from the acquisition of Shui Jun (Yau Tong) in November 2017. 

 

In addition, the revenue derived from the rendering of elderly home care services for individual customers, together with the unsubsidised portions paid by individual customers under the EBPS, increased by approximately 45.48% to HK$55.10 million; the revenue derived from the non-governmental organisations which leased residential care places from the Group's elderly residential care homes increased substantially by 87.86% to HK$263.00 thousand. 

 

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 97.39% and 93.96%, respectively.

 

The Group's other major revenue was derived from the sales of elderly related goods and provision of healthcare services. During the reporting period, the related revenue surged by approximately 74.92% to HK$22.95 million, accounting for approximately 22.79% of the Group's revenue.

 

Looking ahead, Mr. Yik Tak Chi, Chairman and Executive Director of Hang Chi said, "We are delighted to see both the Group's revenue and profit recording satisfactory increase during the reporting period. In view of the enormous market demand for elderly residential care homes, the Group will continue to expand its service network in strategic locations in Hong Kong. The board of directors has resolved to adjust the allocation of proceeds from the Listing for acquisition of operating residential care home(s), therefore accelerating the expansion to provide high quality care services for more elderly people." (roc/*).