Pine Care Group Announces 2018 Interim Results
November 22 2017 - 7:53AM
JCN Newswire (English)
Establishing the Second Upscale Pipeline; Entering the Mainland
Market under the Brand of "Pine Care Yada"
HONG KONG, Nov 22, 2017 - (ACN Newswire) - A leading operator of
care and attention homes for the elderly in Hong Kong, Pine Care
Group Limited (the "Pine Care Group" or the "Company" ,together
with its subsidiaries, the "Group", stock code: 1989), today
announced its unaudited interim results for the six months ended 30
September 2017 (the "period under review").
During the period under review, the Group's overall core business
has remained stable and healthy. Overall average occupancy rate for
the period under review was 92.4%, compared to 93.6% for the same
period last year. Total revenue delivered a drop of approximately
HK$3 million to HK$86.6 million for the period under review from
HK$89.6 million for the same period last year. The decrease was
mainly due to the disposal of Pine Care Centre in July 2017 and
also the slight decrease in overall average occupancy rate due to
the renovation of several of Group's care and attention homes, and
the EA1 upgrade for two of the care and attention homes of the
Group. Profit for the period under review was HK$11.0 million,
delivered a drop of approximately HK$3.2 million as compared with
HK$14.2 million for the same period last year.
The Board of the Company has resolved to declare a second interim
dividend of HK0.84 cent per ordinary share.
Mr. YIM Ting Kwok, Chairman and Executive Director of Pine Care
Group, said: "the EA1 upgrade for Pine Care (Tak Fung) Elderly
Centre has already been completed, while the upgrade for Pinecrest
Elderly Centre is expected to be completed within this year.
Following the completion of the upgrade, we expect the overall
average occupancy rate to pick up during the second half of the
financial year. We are also beginning to see the effects of the
Government's Pilot Scheme on Residential Care Service Voucher for
the Elderly (the "Scheme"), as eligible holders of the voucher are
now starting to be admitted into our residential care homes for the
elderly. In the long-run, we expect that the Scheme will have a
positive impact on our overall average occupancy rate."
The fitting out of the Group's new care and attention home, Pine
Care Place, located at Yoho Mall I (Extension) in Yuen Long, is
near to completion. The new care and attention home has a floor
area of 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 more lifestyle oriented facilities.
During the period under review, 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 Group believes that the collaboration is especially
synergetic. On one hand, the collaboration will enable Pine Care
Group to apply its established brand in Hong Kong and proven
business model to a much larger market, while at the same time,
capitalising on Yada HK's experience and resources in the Mainland.
The strategic cooperation between the Group and Yada HK provides a
valuable opportunity for the Group to expand its footprint to the
Mainland, a market the Group believes to hold vast potentials.
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. It is envisioned that the residential care home for
the elderly will commence operation in late 2017 to early 2018.
Further details of the formation of joint venture were set out in
the Company's announcement dated 18 September 2017.
During the period under review, the Group also entered into a sale
and purchase agreement for, among others, the acquisition of the
entire issued capital of Lorient Holdings Ltd. which owns the
target property comprising portions on ground floor, first to third
floors and portions on fourth floor, Maintown Plaza, No. 223-237
Nam Cheong Street, Kowloon, Hong Kong (the "Property"). The
Property has a gross floor area of approximately 43,400 square
feet, and is conveniently located within walking distance to the
Shek Kip Mei MTR station. Together with its efficient layout and
ample windows frontage, the Group believes that the Property is
ideally suited for establishing the new upscale care and attention
home, Pine Care Point.
It is envisioned that Pine Care Point will become the Group's
second foray into the upscale
market segment, following the launch of Pine Care Place. The Group
believes that the acquisition represents a remarkable opportunity
for the Group to establish its market leadership position in the
burgeoning upscale market segment. Targeting with approximately 120
individual rooms, Pine Care Point is expected to offer the same
services and similar standard of accommodation as Pine Care Place,
including lifestyle oriented facilities such as a hair salon, a
cinema and a library.
Mr. YIM Ting Kwok concluded, "There is an increasing demand for
elderly care services in the market and we believe our current
expansion plan can fully grasp this business opportunity. Exploring
the upscale market segment and entering the Mainland China market
through Pine Care Yada are both the key growth strategies of the
Group. With good prospects for the industry, we are confident to
take the Group to greater heights . We will continue to uphold the
guiding principle of "respecting the elderly residents like our
families" to provide quality service for the elderly; and to
enhance returns for our shareholders and investors."
Source: Pine Care Group Limited
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