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Wednesday, 22 November 2017, 21:53 HKT/SGT

Source: Pine Care Group Limited
Pine Care Group Announces 2018 Interim Results
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."

Nov 22, 2017 21:53 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, HealthCare
From the Asia Corporate News Network

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