Exploring the Residential Care Home Market in Mainland China
HONG KONG — A leading operator of care and attention homes for the elderly in Hong Kong, Pine Care Group Limited (“Pine Care Group” or the “Company”, together with its subsidiaries, the “Group”, stock code: 1989.HK), is pleased to announce that Pine Care Elderly Home Development Limited (“Pine Care Elderly Home”), an indirect wholly-owned subsidiary of the Company, has entered into a joint venture agreement with Yada International (HK) Limited (“Yada HK”) for the formation of Pine Care Yada Elderly Services Limited (the “JV Company”) to explore the residential care home market in Mainland China.
According to the agreement, Pine Care Elderly Home and Yada HK will hold 51% and 49% of the JV Company respectively. Following the execution of the joint venture agreement, the JV Company will set up a direct wholly-owned subsidiary in the Zhejiang Province of the PRC for carrying out its business. Said business includes the provision of elderly home care services, sale of elderly home related goods, and the provision of home-based elderly care services, non-medical health consultation services, elderly home management services, catering services, sale of health related food, pre-packaged and non-packaged food, sale of consumables and leasing, and other business activities as Pine Care Elderly Home and Yada HK may agree on in the PRC.
Yada HK is engaged in the development and investment in the aged-care and healthcare industries in China. Through its JV Company with Yada HK, Pine Care Group can develop its new business in Mainland China rapidly. The Company itself is a well-established brand in Hong Kong, and has accumulated vast experience in nursing care as well as proven operating procedures and training systems over the years. The Company has excellent reputation and creditability in the market. The partnership will add synergy to the Group’s existing business, enhance the Group’s corporate image, and explore the elderly care market of China.
The JV Company has already proposed its first intended project, which is a residential care home for the elderly in a large-scale healthcare, age-care and leisure community in Wuzhen, Zhejiang. With a total area of approximately 7,000 square metres, it will provide approximately 83 beds, and is expected to be operational in late 2017 or early 2018.
Mr. Yim Ting Kwok, Chairman and Executive Director of Pine Care Group Limited, said, “As the population is aging at an increasingly rapid pace in both Hong Kong and China, there is a huge demand for quality elderly care services in both markets. The establishment of the JV Company will become an important milestone in the history of our development. The JV Company represents a key strategic direction for our future development and our first step in entering the vast market in Mainland China. We are very eager to begin the JV Company’s first project, and we believe that it has great potential to become a new growth area for the Company.”