Hang Chi 2018 Third Quarter Revenue Surges 45% to Over HK$100 Million

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

Substantial Increase
of 107% in Profit for the Period

 

Third
Quarter Unaudited Financial Highlights (For the 9 Months ended 30 September)

	2018 (HK$’000)	2017 (HK$’000)	Change (%)
Revenue	100,723	69,276	+45.39%
EBITDA	25,539	5,447	+368.86%
Adjusted EBITDA*	25,539	14,418	+77.13%
Profit for the period	16,500	(988)	+1,770.04%
Adjusted profit for the year*	16,500	7,983	+106.69%

*
Before deducting listing expenses.

 

HONG KONG, CHINA - Media OutReach - 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.”

 

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??“,
one “Shui Hing ??“and one “Shui Jun ??“,
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 around 95%.
It has established itself as a synonym for quality elderly care services. 

 

For
more information on Hang Chi, please visit www.shuionnc.com.