– Profit from continuing operations increased by 32%; Proposed final dividend of HK0.84 cent per share
– Launching high-end segmented care and elderly markets; Expanding business blueprint
HONG KONG – (ACN Newswire) – 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), today announced its consolidated results for the year ended 31 March 2018 (“FY2018” or “Year Under Review”).
During FY2018, the revenue, EBITDA and profit after tax from continuing operations of the Group amounted to HK$170.7 million, HK$33.1 million, and HK$16.4 million, respectively. As operation activities have brought in a steady cash flow, the Board proposed the payment of a final dividend of HK0.84 cent per ordinary share for FY2018.
Core Business
In the year under review, the Group’s core business continues to perform strongly. After experiencing a slight drop in occupancy rate due to the renovation and EA1 upgrades of the care and attention homes in the first half of FY2018, the Group’s occupancy rate has been restored to its usual high levels, averaging at approximately 93.2% for FY2018 (FY2017: approximately 92.7%). Following the completion of EA1 upgrades for two of the Group’s care and attention homes, all eight care and attention homes of the Group participating in EBPS are now classified as EA1.
In addition to core business, the Group has made remarkable progress in developing and bringing new concepts to the market. These new concepts not only allow the Group to expand its customer base to include elderly residents with a wider range of needs, but also widen the breadth of its service offerings. In the coming year, the Group’s expansion blueprint is going to include: (1) the upscale market segment in Hong Kong; (2) new residential care homes for elderly (“RCHE”) specialising in dementia care; (3) Mainland China; and (4) Integrated Senior Wellness Hub.
Upscale Market Segment – Pine Care Place
For development in upscale market segments, the Group’s new upscale care and attention home, Pine Care Place, located at Yoho Mall I (Extension) in Yuen Long, has recently commenced, which has received very positive feedback from the market thus far. The new care and attention home has a floor area of 3,105 square metre (equivalent to approximately 33,424 square feet) and is designed to accommodate 68 residential care places. Pine Care Place is positioned as an upscale care and attention home. In addition to a higher standard of accommodation and a higher labour ratio compared to EA1 standards, Pine Care Place will also offer more individualised services and lifestyle-oriented facilities.
Dementia Specialist – Pine Care Point
In addition to Pine Care Place, the Group have completed the acquisition of the entire issued capital of Lorient Holdings Ltd. which owns the property comprising the portion of G/F, whole of 1/F to 3/F; and portion of 4/F of Maintown Plaza, No. 223-237 Nam Cheong Street, Kowloon, Hong Kong. The gross floor area of the property is approximately 43,400 square feet and is conveniently located. The Group plans to use the property as new care and attention home, Pine Care Point, positioning as a specialist RCHE in dementia care. It has become the Group’s second foray into the upscale market segment, representing a remarkable opportunity for the Group to establish the market leadership position in the burgeoning upscale market segment.
Mainland China – Pine Care Yada
The Group is also actively expanding into the Mainland China market. In September 2017, the Group entered into a joint venture with Yada International (HK) Limited (“Yada HK”) to develop the elderly care business in Mainland China, under the brand “Pine Care Yada”. The first project of the joint venture is proposed to be the establishment of a residential care home for the elderly which is located inside a large scale healthcare, age-care and leisure community in Wuzhen, Zhejiang. The project is proposed to consist of approximately 83 beds with a total area of approximately 77,400 square feet. The collaboration will enable the Group to apply proven business model to a much larger market, capitalising on Yada HK’s experience and resources in the Mainland, and providing a valuable opportunity for the Group to expand its footprint to the Mainland market with vast potentials.
In addition to the residential care home, Pine Care Yada has also been entrusted with the operations and management of Pine Care Yada (Wuzhen) Day Care Centre, which enables the Group to expand its elderly care services to active retirees and those requiring only day-time elderly care, as well as home care services in Wuzhen Graceland district, a community which consists of over 5,000 households, leveraging on the Group’s established brand and experience in providing residential care services for the elderly.
Integrated Senior Wellness Hub – Patina Wellness
The fourth element of the Group’s expansion blueprint is an Integrated Senior Wellness Hub, namely Patina Wellness, jointly developed and operated with Utopia Limited (“Utopia”), a company which is 100%-owned by Mr. Tang Yiu Sing, the sole shareholder of Stan Group (Holdings) Limited, via a strategic joint venture.
Patina Wellness, the first project of the joint venture, is located at 18 Junction Road, Kowloon City.
With a total floor area of approximately 84,000 square feet, Patina Wellness is tentatively planned to include 79 serviced apartments, ranging from approximately 400 to 900 square feet, from 7/F to 29/F, and an upscale RCHE with approximately 32 rooms from 3/F to 6/F. The clubhouse on 2/F is expected to include facilities such as a swimming pool, sauna, massage room, music room, coffee bar, karaoke, garden and lounge. The multidisciplinary clinic and the health focused restaurant will be located on the G/F and 1/F. Fitting out of the project is nearing completion. Operations are expected to begin in multiple stages starting in second half of 2018.
Mr. YIM Ting Kwok, Chairman and Executive Director of Pine Care Group, said, “Looking ahead, we expect the trend for increasing market demand for quality elderly care services to continue in the foreseeable future. We will grasp the opportunities for growth in the industry, optimise our services incessantly; and uphold and strengthen our market position in the industry.
Through the launch of Pine Care Place and Pine Care Point, we are determined to establish our market leadership position in the burgeoning upscale market segment. At the same time, we will expand our footprint to the Mainland market through Pine Care Yada; and widen our breadth of service offerings through Patina Wellness. The Group is optimistic to create more value for our shareholders and the society.”
About Pine Care Group Limited
Pine Care Group is the leading operator of care and attention homes for the elderly in Hong Kong, providing comprehensive residential care services. The Group owns a network of care and attention homes across five districts in Hong Kong under the brand name of “Pine Care Group”. The Group was listed on the Main Board of The Hong Kong Stock Exchange in February 2017, with stock code 1989.
June 12, 2018 20:03 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, HealthCare
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