Hang Chi 2018 First Quarter Revenue Surges 45% to HK$32.33 million ; Profit for the period Increases Significantly by Twofold
Strategic Expansion of Elderly Residential Care Homes Network to Enlarge Market Share
Profit for the period
HONG KONG, CHINA - Media OutReach - 9 May 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 first quarterly results for the 3 months ended 31 March 2018. During the reporting period, the Group's revenue surged by over 45.02% to HK$32.33 million, and the profit for the period increased substantially by nearly 207.81% to HK$3.98 million, mainly benefitting from the acquisition of Shui Jun Nursing Centre (Yau Tong) Company Limited ("Shui Jun (Yau Tong)") in November 2017.
During the reporting period, the revenue generated from the rendering of elderly residential care services reached approximately HK$25.49 million, an increase of approximately 36.75%, accounting for approximately 78.83% 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 approximately 19.42% to HK$7.13 million. In addition, the revenue derived from rendering of elderly home care services for individual customers, together with the unsubsidised portions paid by individual customers under the EBPS, increased by approximately 44.87% to HK$18.27 million; the revenue derived from the non-governmental organisations which leased residential care places from the Group's elderly residential care homes increased by 61.54% to HK$84,000. 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 96.06% and 93.47%, respectively.
The Group's other major revenue was derived from sales of elderly related goods and provision of healthcare services. During the reporting period, the related revenue surged by approximately 87.12% to HK$6.85 million, accounting for approximately 21.17% of the Group's revenue.
Looking ahead, Mr. Yik Tak Chi, Chairman and Executive Director of Hang Chi said, "As the structure of the Hong Kong population is ageing, the demand for elderly residential care homes will continue to increase. The Group plans to cater the enormous market demand through acquisition or new opening of elderly residential care homes. At the same time, the Group will enhance its operational efficiency through diversified services such as increasing the sales of elderly related goods and providing high quality healthcare services, to create greater profits and values to the Group and its shareholders."
About Hang Chi Holdings Limited
Hang Chi (HKSE stock code: 8405) is a well-established home-grown operator of elderly residential care homes in Hong Kong. Deeply rooted with a history of over a decade in Hong Kong, the Group operates six self-owned and self-operated elderly care homes under three brands, which included four "Shui On 瑞安 ", one "Shui Hing 瑞興 "and one "Shui Jun 瑞臻 ", offering a total of 814 residential home places that provide 24-hour comprehensive home and elderly care services round-the-clock. Committed to the offering of truly caring services under a well-managed operational regime, the Group has consistently maintained occupancy rate of its elderly residential care homes at or above 95%. It has established itself as a synonym for quality elderly care services.
The Company was listed on the GEM board of the Hong Kong Stock Exchange on 12 July 2017 and raised net proceeds of HK$45.5 million. The capital will be applied for propelling the Group's growth, expanding its business and increasing its competitiveness. For more information on Hang Chi, please visit www.shuionnc.com .