Hang Chi Core Earnings Rises 30% in 2017 with Adjusted Profit for the Year to HK$15.39 million ; Announces Proposed Final Dividend of 3 HK Cents Per Share

Revenue Grows by 65% Driven by Increase in Residential Care Places

Audited Financial Highlights (For the 12 Months ended 31 December)

* Before deducting listing expenses and crediting share of profit of an associate and gain on disposal of an associate.

HONG KONG, CHINA - Media OutReach - 20 March 2018 - Hang Chi Holdings Limited (the "Company", stock code: 8405.HK, together with its subsidiaries, the "Group"), a well-established home-grown operator of elderly residential care homes in Hong Kong, announced its annual results for the 12 months ended 31 December 2017. The Group's core businesses reported continued growth during the year under review. Driven by the increase in the number of residential care places, the Group's revenue rose by an astounding 65% to HK$97.15 million. Stripping out one-off items including listing expenses and crediting share of profit of an associate and gain on disposal of an associate, the Group's adjusted net profit for the year grew substantially by approximately 20% to HK$15.39 million.

In view of the satisfactory operating performance and ample operating cashflow, the Board of Directors proposed the payment of a final dividend of HK 3 cents per share to reward shareholders (2016: nil). 

"Hang Chi made important strides in 2017," said Mr. Yik Tak Chi, Chairman of Hang Chi. "The successful listing of Hang Chi on GEM of the Hong Kong Stock Exchange in July 2017 has not only strengthened our capital base and financial position, but it has also enhanced our market leadership and brand recognition. As the Hong Kong population witnesses a structural change and moves further towards an aging population, the demand for high quality elderly residential home care services climb in tandem, offering us a favourable operating environment and tremendous room for expansion. To seize market opportunities, Hang Chi announced the acquisition of Shui Jun Nursing Centre located in Yau Tong, Kowloon, at HK$45 million, thereby putting a total of six elderly residential care homes under our umbrella and offering a total of 814 residential care places. The transaction was completed in November 2017, and its contribution is expected to increase in the course of the coming year." 

Hang Chi's major revenue stream is derived from the rendering of elderly home care services. During the year under review, such revenues increased considerably year-on-year by 60% to HK$78.11 million, accounting for 80% of the Group's total revenue. Of these, the revenue derived from the Social Welfare Department of Hong Kong, which leased a fixed number of residential care places at the Group's elderly residential care homes under the EBPS, reported an 86% increase to HK$24.75 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, also rose by 50% to HK$53.14 million during the year under review.

The average occupancy rates of the Group's elderly residential care homes during the year under review stood at a consistently high level of over 95.5%.

Another revenue stream of the Group comes from sales of elderly related goods and provision of healthcare services. During the year under review, such revenues increased by an impressive 89% to HK$10.1 million, accounting for approximately 20% of the Group's total revenue.

Looking into the future, Mr. Yik added, "Hang Chi will leverage its extensive experience of over a decade in residential elderly care operations, now operated under three brands, namely "Shui On瑞安", "Shui Hing 瑞興" and "Shui Jun 瑞臻", to offer comfortable living environment and superb elderly services to the elderly in Hong Kong. We will continue to keep our eyes open for new opportunities to expand our businesses and strengthen our foundation as well as operations, to contribute to society through the rendering of high quality elderly residential care services in Hong Kong."

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.