124 Hang Chi Holdings Limited 恒 智 控 股 有 限 公 司 (於開曼群岛註冊成立之有限公司) 股份代號:8405 2024 中期報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應 經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣 的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上巿規則（「GEM上巿規則」）而刊載，旨在提供有 關恒智控股有限公司（「本公司」）的資料，本公司各董事（「董事」）願就本報告的資料共同 及個別承擔全部責任，並在作出一切合理查詢後確認，就彼等所深知及確信，本報告所 載資料在各 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately HKD 112,645,000, an increase of 9.84% compared to HKD 102,551,000 in the same period last year[6] - EBITDA for the period rose by 20.96% to approximately HKD 43,566,000, compared to HKD 36,016,000 in the previous year[2] - Net profit increased by approximately 45.24% to about HKD 14,236,000, up from HKD 9,802,000 year-on-year[2] - Total revenue for the six months ended June 30, 2024, was approximately HKD 112,645,000, representing an increase of 9.8% compared to HKD 102,551,000 for the same period in 2023[22] - The group reported a profit before tax of HKD 16,997,000, up 49.0% from HKD 11,351,000 in the previous year[22] - Net profit attributable to the company's owners for the period was HKD 12,468,000, an increase of 32.4% from HKD 9,419,000 in the same period last year[22] - Other income for the six months ended June 30, 2024, was HKD 5,610 million, an increase from HKD 5,134 million in the same period of 2023, reflecting a growth of 9.27%[37] - The group’s pre-tax profit for the six months ended June 30, 2024, was HKD 12,468 million, compared to HKD 9,419 million for the same period in 2023, indicating a growth of 32.43%[45] Revenue Sources - Revenue from elderly care services increased from approximately HKD 77,415,000 to HKD 85,958,000, reflecting an increase of about 11.04%[7] - Revenue from the Social Welfare Department's rental of fixed beds under the Improved Purchase Scheme increased from approximately HKD 23,639,000 to HKD 31,763,000, a rise of about 34.37%[8] - Revenue from day care services for the elderly rose from approximately HKD 2,380,000 to HKD 2,453,000, an increase of about 3.07%[9] - Revenue from personal clients renting beds increased from approximately HKD 51,220,000 to HKD 51,658,000, a growth of about 0.86%[10] - Revenue from sales of elderly-related products and health services grew from approximately HKD 25,136,000 to HKD 26,687,000, an increase of about 6.17%[11] - Approximately HKD 34,216,000 of revenue (over 10% of total revenue) was derived from the Hong Kong government's improvement buy-in program and daytime respite services[30] - Revenue from providing elderly care services was HKD 85,958,000, up 11.4% from HKD 77,415,000 in the previous year[31] - Revenue from the sale of elderly-related products and provision of healthcare services reached HKD 26,687,000, a slight increase from HKD 25,136,000 in the prior year[31] Operational Insights - The group operates seven elderly care homes in Hong Kong, contributing to its revenue growth[3] - The group plans to enhance staff training and expand its elderly care home network in Hong Kong to meet rising demand due to an aging population[5] - The elderly population in Hong Kong is projected to nearly double by 2040, driving demand for elderly care services[5] - Average occupancy rate for Improved Purchase Scheme elderly homes rose to 93.42% from 87.10% year-on-year[11] - The group operates primarily in Hong Kong, with all external customer revenue generated in this region[29] - The group has a single reportable operating segment, which is the operation of elderly care homes[28] Financial Position - Cash and cash equivalents decreased by 19.23% to HKD 37,313,000 from HKD 46,196,000[2] - The group’s total assets decreased slightly by 1.81% to HKD 193,791,000 from HKD 197,355,000[2] - As of June 30, 2024, the total equity of the group was approximately HKD 193,791,000, a decrease from HKD 197,355,000 as of December 31, 2023[24] - Non-current liabilities, specifically lease liabilities, increased to HKD 69,347,000 from HKD 41,140,000 as of December 31, 2023[24] - The group’s total current assets amounted to HKD 74,462,000, compared to HKD 71,473,000 as of June 30, 2023[23] Employee and Cost Management - Employee costs increased from approximately HKD 47,648,000 to HKD 48,954,000, a rise of about 2.74%[12] - The number of employees increased to 445 as of June 30, 2024, compared to 430 as of June 30, 2023[20] - The group aims to implement cost control measures to optimize resources and improve operational efficiency[4] - Property rental and related expenses decreased from approximately HKD 4,574,000 to HKD 4,262,000, a decline of about 6.82%[13] Governance and Compliance - The group has adopted corporate governance principles to enhance transparency and accountability, aligning with GEM listing rules[48] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim results and confirmed compliance with applicable accounting standards[54] - The group has not adopted any new or revised standards that have a significant impact on the financial statements for the six months ended June 30, 2024[26] - The group’s financial statements are prepared in accordance with International Financial Reporting Standards, specifically IAS 34 for interim reporting[26] Dividends and Shareholder Returns - The group did not recommend any dividend for the six months ended June 30, 2024, compared to HKD 40 million declared for the same period in 2023[43] - No dividends were recommended for the reporting period, consistent with the previous year[51] - The company has a stock option plan in place, with a total of 40,000,000 shares potentially issuable upon exercise, representing 10% of the issued shares as of the announcement date[53]

Financial Performance - Total revenue for the year 2023 was HKD 211,214,000, representing a 9.41% increase from HKD 193,041,000 in 2022[9] - EBITDA decreased by 10.46% to HKD 81,587,000 from HKD 91,117,000 in the previous year[9] - Net profit for the year was HKD 26,204,000, down 32.13% from HKD 38,610,000 in 2022[9] - Cash and cash equivalents increased by 20.02% to HKD 46,196,000 compared to HKD 38,491,000 in 2022[9] - Trade receivables surged by 345.83% to HKD 2,140,000 from HKD 480,000 in the previous year[9] - The net asset value decreased by 6.53% to HKD 197,355,000 from HKD 211,151,000 in 2022[9] - Net profit decreased by approximately 32.13% to about HKD 26,204,000 due to rising costs[22] - The group recorded a profit of approximately HKD 26,204,000 for the year, down from approximately HKD 38,610,000 the previous year, attributed to the termination of special subsidies for quarantine services[51] - Current assets as of December 31, 2023, were approximately HKD 71,473,000, down from HKD 90,530,000 the previous year, while current liabilities decreased from HKD 69,023,000 to HKD 59,789,000[56] - Total cash and cash equivalents were approximately HKD 46,196,000, an increase from HKD 38,491,000 the previous year[57] - The total equity of the group as of December 31, 2023, was approximately HKD 197,355,000, down from HKD 211,151,000 the previous year[59] - The board proposed a final dividend of HKD 0.04 per share, totaling HKD 16,000,000, compared to HKD 40,000,000 the previous year[60] - Capital expenditures for the year were approximately HKD 6,130,000, significantly lower than HKD 22,654,000 the previous year, primarily for the acquisition of properties, plants, and equipment for elderly care homes[70] Revenue Sources - Revenue from elderly care services increased from approximately HKD 145,144,000 to about HKD 159,255,000, a growth of approximately 9.72%[38] - Revenue from the Social Welfare Department's "Improvement Purchase Scheme" increased from approximately HKD 40,067,000 to about HKD 51,293,000, an increase of approximately 28.02%[39] - Revenue from personal clients renting accommodation rose from approximately HKD 99,991,000 to about HKD 102,805,000, an increase of approximately 2.81%[41] - Average occupancy rate for "Improvement Purchase Scheme" elderly homes was 88.18%, up from 87.49% the previous year[48] Employee and Operational Insights - The company aims to enhance competitiveness through employee training and upgrading facilities in the future[15] - Employee costs decreased from approximately HKD 99,781,000 to about HKD 92,926,000, a decline of approximately 6.87%[49] - The group plans to enhance staff training and optimize existing resources to control costs[22] - The group had 426 employees as of December 31, 2023, a decrease from 437 employees the previous year[71] - The company has over 20 years of experience in elderly care facilities, with key personnel holding significant roles in management and operations[81] - The CEO, Mr. Lei, has accumulated over 22 years of experience in the elderly care industry, enhancing operational management[89] - The company is focused on developing healthcare policies and training programs for medical staff across various levels[88] - The company has a strong emphasis on employee training and operational efficiency to support its expansion plans[81] Corporate Governance - The company is committed to enhancing its corporate governance and social responsibility practices[85] - The board includes experienced members with backgrounds in finance, accounting, and business strategy, contributing to the company's governance[96] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[122] - The board held a total of four regular meetings during the reporting year, with all members actively participating in decision-making processes[128] - Independent non-executive directors accounted for over one-third of the board, maintaining a high level of independence and exercising independent judgment[122] - The company has established mechanisms to ensure the board receives independent opinions and has conducted meetings without the presence of other directors to discuss matters freely[122] - The board's primary role includes planning corporate strategies, monitoring financial performance, and reviewing the effectiveness of internal control systems[134] - The company has adhered to corporate governance codes regarding the appointment and re-election of directors, with a three-year fixed term for executive directors[145] - The remuneration committee has consulted with the chairman and/or CEO regarding the compensation of directors and senior management, ensuring alignment with market standards[148] - The company has obtained directors and officers liability insurance to protect against legal claims[147] - The board regularly reviews its governance policies to ensure they meet the needs of the group[136] - The management provides quarterly financial updates to the board, ensuring transparency regarding the company's performance and outlook[137] Risk Management and Compliance - The board regularly reviews the effectiveness of the risk management and internal control systems, which cover operational, legal, financial, and audit aspects[178] - The company has no internal audit department; however, the executive directors and management are responsible for reviewing the effectiveness of the internal control system[179] - The board considers various factors when declaring dividends, including financial performance, funding needs, and regulatory restrictions[190] - The company encourages employees and business partners to report any misconduct or unethical behavior[192] - The board has established a framework for timely and accurate disclosure of significant information to maintain transparency[184] - The company emphasizes high standards of business integrity and ethical practices in all transactions[193] Diversity and Inclusion - The board consists of seven male members and one female member, with a workforce of 354 females and 72 males, indicating a gender diversity in the employee base but limited representation at the board level[155] - The company aims to increase the proportion of female directors if suitable candidates are identified in the future[155] - The company has adopted a board diversity policy to enhance efficiency and governance, focusing on various diversity criteria including skills, knowledge, gender, age, and cultural background[150] - The Nomination Committee is responsible for reviewing the board's structure, size, composition, and diversity, and for identifying suitable candidates for board membership[172] - The Nomination Committee will regularly review the diversity policy to ensure its effectiveness[172] - The board members possess diverse professional experiences, including management in elder care, business management, corporate governance, accounting, law, nursing, and social work[160]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately HKD 211,214,000, representing a 9.41% increase from HKD 193,041,000 in the previous year[10]. - The net profit for the year decreased by 32.13% to approximately HKD 26,204,000, down from HKD 38,610,000 in the previous year[7]. - The group reported revenue of HKD 211,214,000 for the year ended December 31, 2023, representing an increase of 9.1% compared to HKD 193,041,000 in 2022[40]. - The group’s profit before tax was HKD 30,887,000, down 33.1% from HKD 46,120,000 in the previous year[40]. - Net profit attributable to the owners of the company was HKD 23,408,000, a decrease of 35.8% compared to HKD 36,498,000 in 2022[40]. - Basic and diluted earnings per share for the year were HKD 5.85, down from HKD 9.12 in the previous year, reflecting a decline of 35.8%[40]. - The group reported a pre-tax profit of HKD 30,887,000 for 2023, down 33.1% from HKD 46,120,000 in 2022[71]. Revenue Breakdown - Revenue from elderly care services increased by approximately 9.72% to HKD 159,255,000 from HKD 145,144,000 in the previous year[12]. - Revenue from the Social Welfare Department's improved placement plan increased by 28.02% to HKD 51,293,000 from HKD 40,067,000 in the previous year[12]. - Revenue from day care services for the elderly increased from approximately HKD 4,805,000 to about HKD 4,856,000, a rise of approximately 1.07%[13]. - Revenue from personal customer rentals rose from about HKD 99,991,000 to approximately HKD 102,805,000, an increase of about 2.81%[13]. - Revenue from non-government organization rentals increased from approximately HKD 281,000 to about HKD 301,000, a growth of approximately 7.12%[15]. - Revenue from sales of elderly-related products and health services grew from about HKD 47,897,000 to approximately HKD 51,959,000, an increase of about 8.48%[16]. - Revenue from providing elderly home services was HKD 159,255,000 in 2023, up from HKD 145,144,000 in 2022, reflecting a growth of 9.7%[59]. - Revenue from the sale of elderly-related goods and provision of healthcare services reached HKD 51,959,000 in 2023, compared to HKD 47,897,000 in 2022, marking an increase of 8.6%[59]. Assets and Liabilities - The total assets decreased by 6.53% to HKD 197,355,000 from HKD 211,151,000 in the previous year[5]. - Total current assets as of December 31, 2023, were approximately HKD 71,473,000, down from about HKD 90,530,000 the previous year[23]. - Total non-current assets decreased to HKD 226,811,000 in 2023 from HKD 246,861,000 in 2022, a reduction of 8.1%[42]. - The group’s total equity decreased to HKD 197,355,000 in 2023 from HKD 211,151,000 in 2022, a decline of 6.5%[43]. - Trade receivables rose significantly by 345.83% to HKD 2,140,000 from HKD 480,000 in the previous year[5]. - Trade payables at the end of the reporting period were HKD 1,306,000 for 2023, slightly up from HKD 1,244,000 in 2022[83]. Employee Costs and Workforce - Employee costs decreased from approximately HKD 99,781,000 to about HKD 92,926,000, a decline of approximately 6.87%[19]. - The total employee costs for the year amounted to HKD 91,558,000, down from HKD 96,877,000 in the previous year, indicating a reduction of 5.5%[71]. - The group has maintained a workforce of 426 employees as of December 31, 2023, down from 437 employees in 2022[37]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.04 per share, totaling HKD 16,000,000, compared to HKD 40,000,000 the previous year[28]. - The proposed final dividend for the year ending December 31, 2023, is HKD 0.04 per share, totaling HKD 16,000,000, pending shareholder approval[74]. - The record date for the proposed final dividend is set for May 23, 2024[108]. - The proposed final dividend is expected to be paid on June 6, 2024, if approved at the annual general meeting[108]. Compliance and Governance - The group’s financial statements are prepared in accordance with International Financial Reporting Standards and comply with the GEM Listing Rules[55]. - The independent auditor, BDO Limited, confirmed that the financial statements for the year ending December 31, 2023, are consistent with the group's consolidated financial statements[103]. - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance and financial statements, ensuring adequate disclosure[104]. - The company confirmed compliance with GEM listing rules regarding related party transactions and will continue to adhere to these regulations[100]. Future Outlook and Strategy - The aging population in Hong Kong is expected to drive demand for elderly care services, with the elderly population projected to nearly double by 2040[9]. - The company aims to expand its network of elderly care homes in Hong Kong to serve more elderly residents[9]. - The company plans to continue optimizing resources and enhancing employee training while implementing cost control measures to save costs[7].

Financial Performance - The company's revenue for the nine months ended September 30, 2023, increased to approximately HKD 157,158,000, representing an 8.78% growth compared to HKD 144,467,000 in the same period last year[25]. - EBITDA for the same period decreased by 11.23% to HKD 56,045,000, down from HKD 63,138,000[13]. - Net profit for the nine months fell by 43.63% to approximately HKD 16,704,000, compared to HKD 29,632,000 in the previous year[13]. - Basic and diluted earnings per share for the nine months ended September 30, 2023, were HKD 3.87, compared to HKD 7.06 for the same period in 2022, reflecting a decrease of 45.3%[79]. - The total profit attributable to the company's owners was HKD 15,473,000, compared to HKD 28,237,000 for the same period in 2022, representing a decrease of 45.3%[82]. - The total comprehensive income for the three months ended September 30, 2023, was HKD 6,902,000, down 34.0% from HKD 10,542,000 in the same period of 2022[79]. - For the nine months ended September 30, 2023, the profit attributable to the company's owners was HKD 15,473,000, down 45.5% from HKD 28,237,000 in the same period of 2022[110]. Revenue Breakdown - The revenue from elderly care services accounted for 75.07% of total revenue, with personal client rentals contributing HKD 78,337,000, which is 49.84% of the total[24]. - Revenue from elderly care services for the nine months ended September 30, 2023, was HKD 117,983,000, an increase of 8.5% from HKD 108,373,000 in the same period of 2022[93]. - Revenue from the sale of elderly-related products and health services was HKD 39,175,000, accounting for 24.93% of total revenue[24]. - Revenue from the sale of elderly-related products and healthcare services for the nine months ended September 30, 2023, was HKD 39,175,000, up 8.5% from HKD 36,094,000 in the previous year[93]. - Revenue from personal clients renting beds increased from approximately HKD 75,041,000 to HKD 78,337,000, a growth of about 4.39%[35]. - Revenue from the Social Welfare Department's improved purchase plan for rented beds rose from approximately HKD 29,524,000 to HKD 35,766,000, an increase of about 21.14%[30]. - Revenue from services provided on an immediate basis for the nine months ended September 30, 2023, was HKD 23,284,000, compared to HKD 19,857,000 in the same period of 2022, reflecting a 17.9% increase[95]. Cost and Expenses - Employee costs increased slightly from approximately HKD 71,708,000 to HKD 72,076,000, a rise of about 0.51%[42]. - The company incurred total employee costs of HKD 72,076,000 for the nine months ended September 30, 2023, slightly up from HKD 71,708,000 in the same period of 2022[79]. - The company recognized government subsidies of approximately HKD 3,221,000 for the nine months ended September 30, 2023, down from HKD 8,115,000 in the same period of 2022, a decrease of 60.3%[103]. - The company’s financing costs for the nine months ended September 30, 2023, were HKD 2,659,000, compared to HKD 2,212,000 in the same period of 2022, indicating an increase of 20.2%[79]. Shareholder Information - As of September 30, 2023, Mr. Yi holds 258,336,000 shares, accounting for approximately 64.58% of the total shares[60]. - As of September 30, 2023, Mr. Lei holds 36,032,000 shares, representing 9.01% of the total shares[60]. - The major shareholder, Ruihua, holds 248,700,000 shares, which is approximately 62.18% of the total shares[66]. - The company has a total of 400,000,000 issued shares as of September 30, 2023, which is the basis for calculating the percentage of shareholdings[62]. - The company’s major shareholders collectively control approximately 64.58% of the issued share capital as of September 30, 2023[71]. Strategic Initiatives - The company plans to enhance employee training and implement cost control measures to address rising labor costs and property rents[19]. - The management team is focused on expanding the network of elderly care homes in strategic locations to serve more elderly residents[20]. - The company has established a crisis response team to monitor the situation in its elderly care homes and improve care standards[19]. - The aging population in Hong Kong is projected to increase significantly, driving demand for elderly care services, which is expected to support industry growth[20]. Compliance and Governance - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests and holdings[64]. - The audit committee has reviewed the financial results for the third quarter and confirmed that the financial statements are in accordance with applicable accounting standards[76]. - The company has not adopted any new accounting standards that have not yet come into effect, ensuring stability in financial reporting[87]. - The management is currently evaluating the impact of new accounting standards on the company's financial performance, although no significant effects have been identified yet[87]. Dividend Information - No dividends were recommended for the reporting period, consistent with the previous year[57]. - The company did not recommend any dividend for the nine months ended September 30, 2023, compared to no dividend declared for the same period in 2022[108]. - The company declared a final dividend of HKD 40,000,000 for the period, which is a significant cash outflow impacting retained earnings[82].

Financial Performance - The company's revenue for the six months ended June 30, 2023, was HKD 102,551,000, representing a 6.98% increase compared to HKD 95,864,000 in the same period of 2022[13]. - EBITDA decreased by 12.67% to HKD 36,016,000 from HKD 41,240,000 year-on-year[13]. - Net profit for the period fell by 48.65% to HKD 9,802,000, down from HKD 19,090,000 in the previous year[13]. - Revenue from elderly care services rose from approximately HKD 72,381,000 to approximately HKD 77,415,000, marking an increase of about 6.95%[28]. - Revenue generated from the Social Welfare Department's improved purchase plan for rented beds increased from approximately HKD 19,653,000 to approximately HKD 23,639,000, a growth of about 20.28%[29]. - Revenue from personal clients renting beds grew from approximately HKD 50,171,000 to approximately HKD 51,220,000, reflecting an increase of about 2.09%[34]. - The company reported a profit before tax of HKD 11,351,000, down 50.8% from HKD 23,102,000 in the previous year[92]. - The company reported a total comprehensive income of HKD 9,419,000 for the six months ended June 30, 2023, down from HKD 17,420,000 for the same period in 2022, indicating a decline of about 46.0%[99]. - Basic and diluted earnings per share were HKD 2.35, down from HKD 4.36 in the previous year, reflecting a decline of 46.0%[92]. Assets and Liabilities - Cash and cash equivalents increased by 5.12% to HKD 40,463,000, while time deposits decreased significantly by 73.65% to HKD 9,966,000[13]. - The net asset value decreased by 14.30% to HKD 180,953,000 from HKD 211,151,000[13]. - As of June 30, 2023, current assets were approximately HKD 62,008,000, down from approximately HKD 90,530,000 at the end of the previous year[44]. - Total non-current assets as of June 30, 2023, amounted to HKD 228,857,000, a decrease from HKD 246,861,000 at the end of 2022[95]. - Current liabilities totaled HKD 67,044,000, slightly down from HKD 69,023,000, showing a decrease of 2.9%[95]. - The net current liabilities position was HKD (5,036,000), a significant decline from HKD 21,507,000 in the previous year[95]. - The total liabilities, specifically lease liabilities, decreased from HKD 57,217,000 as of December 31, 2022, to HKD 42,868,000 as of June 30, 2023, a reduction of approximately 25.0%[97]. - Lease liabilities decreased to HKD 83,581,000 as of June 30, 2023, from HKD 99,808,000 at the end of 2022, a reduction of 16.3%[138]. Employee and Operational Costs - Employee costs slightly increased from approximately HKD 47,064,000 to approximately HKD 47,648,000, an increase of about 1.24%[41]. - Total employee costs increased to HKD 46,829,000 in 2023 from HKD 45,507,000 in 2022, reflecting a rise of 2.9%[135]. - The group employed 430 staff as of June 30, 2023, down from 453 staff a year earlier, reflecting a decrease of approximately 5%[61]. - Total remuneration for directors and key management personnel amounted to HKD 5,279,000 for the six months ended June 30, 2023, up from HKD 3,964,000 in the same period of 2022, representing a growth of 33.1%[152]. Corporate Governance and Shareholding - The board emphasizes good corporate governance as essential for effective management and sustainable business growth[68]. - As of June 30, 2023, Mr. Yi holds equity in 258,336,000 shares, representing approximately 64.58% of the company's issued share capital through various controlled entities[86]. - The major shareholder, Ruihua, owns 248,700,000 shares, accounting for 62.18% of the total shares[81]. - The company is controlled by Mr. Yi, Wan Chang, Heng Zhi Development, and Ms. Yi, collectively controlling approximately 64.58% of the issued share capital[86]. - The company has a total of 400,000,000 shares issued as of June 30, 2023[1]. Future Outlook and Strategy - The management team plans to enhance employee training and implement cost control measures to address rising labor costs and property rents[19]. - The demand for elderly care services is expected to continue rising due to Hong Kong's aging population, with the elderly population projected to nearly double by 2040[20]. - The company aims to expand its network of elderly care homes strategically located in Hong Kong to serve more elderly residents[20]. Financial Instruments and Risk Management - The group has not adopted any financial instruments for hedging purposes, limiting exposure to foreign exchange risks[58]. - The company has implemented financial risk management to ensure all payables are settled within the credit period[145]. Other Financial Information - Other income decreased significantly to HKD 5,134,000 from HKD 19,955,000, representing a decline of 74.3% year-on-year[92]. - The company declared an interim dividend of HKD 40,000,000 for the first half of 2023, compared to no interim dividend declared in the same period of 2022[99]. - The company did not declare any dividends for the six months ended June 30, 2023, consistent with the previous year[131]. - The company has not disclosed any new product developments or market expansion strategies in the current report[3].

Financial Performance - For the three months ended March 31, 2023, the company's revenue was approximately HKD 48,927,000, a slight increase of 0.78% compared to HKD 48,549,000 in the same period last year[22]. - EBITDA for the first quarter of 2023 was HKD 15,594,000, representing a decrease of 18.76% from HKD 19,195,000 in the previous year[11]. - The net profit for the period was approximately HKD 2,746,000, down 66.90% from HKD 8,295,000 in the same quarter of 2022[11]. - Basic and diluted earnings per share for the company were HKD 0.73, compared to HKD 1.86 in the same period last year, reflecting a decrease of 60.87%[74]. - Total comprehensive income attributable to the owners of the company was HKD 2,920,000, a decrease of 60.81% from HKD 7,455,000 in the previous year[74]. - The company reported financing costs of HKD 958,000, an increase of 17.43% from HKD 816,000 in the same period last year[74]. - The company's profit before tax for the three months ended March 31, 2023, was HKD 2,920,000, down 60.8% from HKD 7,455,000 in the same period of 2022[104]. - The income tax expense for the three months ended March 31, 2023, was HKD 517,000, a decrease of 71.5% compared to HKD 1,810,000 in the same period of 2022[102]. Revenue Breakdown - Revenue from elderly care services increased from approximately HKD 36,951,000 to HKD 37,572,000, reflecting a growth of 1.68%[26]. - The company generated HKD 11,344,000 from social welfare department rental placements, which accounted for 23.19% of total revenue, up from 20.15% the previous year[21]. - Sales of elderly-related products and health services contributed HKD 11,355,000, representing 23.21% of total revenue, slightly down from 23.89% in the prior year[21]. - Revenue from the social welfare department's rental of beds under the improved purchase scheme increased from approximately HKD 9,782,000 to about HKD 11,344,000, representing a growth of approximately 15.97%[27]. - Revenue from day care services provided to the elderly under the improved purchase scheme rose from approximately HKD 1,193,000 to about HKD 1,204,000, an increase of approximately 0.92%[28]. - Revenue from individual customers renting beds decreased from approximately HKD 25,877,000 to about HKD 24,920,000, a decline of approximately 3.70%[32]. - Revenue from beds rented by non-governmental organizations increased from approximately HKD 99,000 to about HKD 104,000, reflecting a growth of approximately 5.05%[33]. - Revenue from the sale of elderly-related products and health services decreased from approximately HKD 11,598,000 to about HKD 11,355,000, a decline of approximately 2.10%[34]. - Approximately HKD 12,548,000 of the revenue (over 10% of total revenue) was derived from the Hong Kong government's Improvement Purchase Scheme and Day Care Services[85]. Operational Insights - The company plans to enhance staff training and expand its network of elderly care homes in Hong Kong to meet the increasing demand for elderly services[17]. - The management team is focused on optimizing existing resources and implementing cost control measures to improve profitability[16]. - The crisis response team will continue to monitor the situation in elderly care homes to ensure preparedness for future challenges[16]. - Average occupancy rate for improved purchase scheme elderly homes was 85.66%, down from 86.38% in the previous year, while non-improved purchase scheme homes saw an increase from 77.25% to 81.04%[35]. - Employee costs slightly decreased from approximately HKD 24,253,000 to about HKD 23,981,000, a decline of approximately 1.12%[38]. - Property rental and related expenses decreased significantly from approximately HKD 4,640,000 to about HKD 2,257,000, a drop of approximately 51.36%[39]. Shareholder Information - As of March 31, 2023, Mr. Yi holds 258,336,000 shares, representing approximately 64.58% of the total equity[55]. - Mr. Lei owns 36,032,000 shares, accounting for 9.01% of the total equity[55]. - The company has a total of 400,000,000 issued shares as of March 31, 2023[57]. - The major shareholder, Ruihua, holds 248,700,000 shares, which is 62.18% of the total equity[61]. - The company has a controlled entity, Wan Chang, which holds 258,336,000 shares, representing 64.58% of the total equity[61]. - Yingfeng International Investment Limited holds 32,000,000 shares, equivalent to 8.00% of the total equity[64]. - Ruipei Industrial (Shanghai) Limited also holds 32,000,000 shares, representing 8.00% of the total equity[64]. - Zhongmin Future Holdings Group Limited has 32,000,000 shares, which is 8.00% of the total equity[64]. - The company has a significant indirect ownership structure through various controlled entities[58]. - The total equity ownership structure indicates a high concentration among major shareholders[61]. Compliance and Reporting - The company’s financial report is prepared in accordance with International Financial Reporting Standards (IFRS) and is presented in its functional currency, Hong Kong dollars (HKD)[80]. - The company’s only reportable segment is the operation of elderly care homes, with no further segment analysis provided[83]. - The financial report has been reviewed by the company's audit committee but has not been audited by external auditors[82]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the quarter[71]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[70]. - The company has not adopted any new or revised accounting standards that would have a significant impact on its financial performance for the reporting period[82].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不會就因本公 告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何 責任。 Hang Chi Holdings Limited 恒 智 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） （股份代號：8405） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月 第 一 季 季 度 業 績 公 佈 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯 交所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司 的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所 主板買賣的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券 會有高流通量的市場。 本公告的資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）而刊載，旨在 ...

Financial Performance - Total revenue for 2022 was HKD 193,041,000, a decrease of 5.30% compared to HKD 203,849,000 in 2021[10] - EBITDA for 2022 was HKD 91,117,000, down 6.90% from HKD 97,872,000 in the previous year[10] - Net profit for the year was HKD 38,610,000, representing a decline of 26.02% from HKD 52,191,000 in 2021[10] - Cash and cash equivalents decreased by 41.97% to HKD 38,491,000 from HKD 66,329,000 in 2021[10] - Trade receivables increased significantly by 190.91% to HKD 480,000 from HKD 165,000 in the previous year[10] - Revenue from elder care services decreased from approximately HKD 151,891,000 to about HKD 145,144,000, a decline of about 4.44%[36] - Revenue from the Social Welfare Department's "Improvement Purchase Scheme" increased from approximately HKD 39,024,000 to about HKD 40,067,000, an increase of about 2.67%[37] - Average occupancy rate for "Improvement Purchase Scheme" elder care homes decreased from 92.26% to 87.49%[46] - Employee costs rose from approximately HKD 83,464,000 to about HKD 99,781,000, an increase of about 19.55%[47] - Revenue from sales of elder-related products and health services decreased from approximately HKD 51,958,000 to about HKD 47,897,000, a decline of about 7.82%[45] - Revenue from personal clients renting beds decreased from approximately HKD 107,488,000 to about HKD 99,991,000, a decline of about 6.98%[39] - Revenue from non-government organizations renting beds decreased from approximately HKD 620,000 to about HKD 281,000, a decline of about 54.68%[40] - Property rental and related expenses decreased from approximately HKD 18,540,000 to about HKD 13,638,000, a decline of about 26.44%[48] - The group recorded a profit of approximately HKD 38,610,000 for the year, down from approximately HKD 52,191,000 in the previous year, primarily due to increased costs related to manpower and epidemic prevention resources[49] - As of December 31, 2022, current assets were approximately HKD 90,530,000, compared to HKD 74,917,000 in the previous year, while current liabilities increased to approximately HKD 69,023,000 from HKD 53,244,000[54] - The group's total equity as of December 31, 2022, was approximately HKD 211,151,000, up from HKD 179,141,000 in the previous year[59] Corporate Governance - The company emphasizes the importance of good corporate governance for effective management, healthy corporate culture, sustainable business growth, and enhancing shareholder value[133] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and experience[135] - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance and transparency[133] - The board regularly reviews its governance policies and believes in their effectiveness for the group[149] - The company encourages continuous professional development for all directors to ensure informed contributions to board discussions[151] - The board consists of seven male members and one female member, with a commitment to increase the proportion of female directors when suitable candidates are available[167] - The company employs 336 female members and 45 male members, reflecting the industry characteristics where most employees are female[167] - The audit committee confirmed that the consolidated financial statements fairly presented the group's financial position and performance for the year ended December 31, 2022[177] - The company has established three board committees: the audit committee, nomination committee, and remuneration committee to oversee specific matters[175] - The board diversity policy was adopted in March 2018, emphasizing the importance of diversity in maintaining competitive advantage[162] - The company has a clear division of responsibilities between the chairman and the CEO to ensure accountability and effective management[152] - The nomination committee evaluates candidates based on a set of criteria to ensure effective board composition[168] - The company has complied with corporate governance codes regarding the purchase of directors and officers liability insurance[159] - The board's structure, size, composition, and diversity were reviewed to ensure alignment with corporate governance standards[189] Strategic Plans and Operations - The occupancy rate of the group's elderly care homes is expected to gradually recover by mid-2023 after being affected by the pandemic[13] - The group plans to expand its elderly care services through new openings or mergers and acquisitions in Hong Kong[14] - A logistics support team has been established to enhance the group's response capabilities for future emergencies[13] - The group has been providing nursing support services at a quarantine center, which ceased operations in December 2022, impacting revenue[13] - Capital expenditures for the year were approximately HKD 22,654,000, significantly higher than HKD 3,255,000 in the previous year, used for the acquisition of properties, plants, and equipment for elderly care homes[70] - The capital-to-debt ratio increased to 19% as of December 31, 2022, from 15% in the previous year, due to the adoption of IFRS 16 related to lease liabilities[57] - The group did not hold any significant investments or have plans for major investments or capital assets as of December 31, 2022[61][62] - The group acquired a property for HKD 16,474,500, intended for office use, with the transaction exceeding 5% but less than 25% of applicable percentage ratios under GEM listing rules[82] Management and Personnel - The company has over 28 years of experience in planning, construction, daily management, and operation of elderly care homes[90] - The executive team includes three executive directors with extensive backgrounds in elderly care management and operations[91] - The company is actively involved in the recruitment, supervision, and management of healthcare personnel across all levels[98] - The CEO has accumulated over 21 years of experience in the management and operation of elderly care homes[99] - The non-executive director has extensive experience in financial planning, marketing, and international business[106] - Liu Yunpei has been appointed as the executive director and CEO of Huilong Holdings Limited since 2002, with previous roles in various listed companies[107] - Chen Zhengsen, appointed as an independent non-executive director in August 2022, has over 16 years of experience in finance and accounting, specializing in M&A and capital market transactions[112] - Liu Daqian, an independent non-executive director since June 2017, has over 30 years of legal practice experience and has served on the boards of multiple listed companies[114] - Huang Weihao, also an independent non-executive director since June 2017, has been involved in public affairs and has held various leadership roles in listed companies[121] - Liang Peishan and Zhu Jieying serve as joint company secretaries, with Liang having over 15 years of experience in audit and financial management[122][123] - The number of employees increased to 437 as of December 31, 2022, from 389 in the previous year, with enhanced compensation and benefits provided[71] Risk Management - The board established risk management and internal control policies, ensuring they are adequate and effective in managing significant risks[192] - The internal control system was reviewed annually, identifying areas for improvement and taking appropriate measures to manage related risks[193] - The audit committee monitored the resources and qualifications of the accounting and financial reporting functions, ensuring compliance with corporate governance codes[182] - The company has no internal audit department; however, the executive directors and management are responsible for reviewing the effectiveness of the internal control system[192] - The nomination committee is responsible for assessing the independence of independent non-executive directors and making recommendations for their reappointment[184] Dividend Policy - The board proposed a final dividend of HKD 0.10 per ordinary share, totaling HKD 40,000,000, compared to no dividend in the previous year[60] - The company has adopted a dividend policy to balance shareholder returns and maintain sufficient liquidity for future growth opportunities[199] - The board will consider applicable laws, regulations, and any restrictions in the company's articles of association when determining dividend payments[200] - The dividend policy will be reviewed periodically and can be updated or amended at the board's discretion[200]

Financial Performance - The company's revenue for the nine months ended September 30, 2022, was approximately HKD 144,467,000, a decrease of 5.82% compared to HKD 153,401,000 in the previous year[10]. - EBITDA for the same period was HKD 63,138,000, reflecting a decline of 14.42% from HKD 73,774,000 year-on-year[10]. - Net profit for the nine months was HKD 29,632,000, down 23.95% from HKD 38,966,000 in the prior year[10]. - For the three months ended September 30, 2022, the company reported revenue of HKD 48,603,000, a decrease of 5.5% compared to HKD 51,370,000 for the same period in 2021[71]. - The company recorded a net profit of HKD 10,542,000 for the three months ended September 30, 2022, compared to HKD 14,236,000 in the same period of 2021, representing a decline of 25.5%[71]. - Basic and diluted earnings per share for the nine months ended September 30, 2022, were HKD 7.06, down from HKD 8.78 in the previous year, reflecting an 19.5% decrease[71]. - The total comprehensive income attributable to equity holders of the parent for the nine months ended September 30, 2022, was HKD 28,237,000, down from HKD 35,107,000 in the same period of 2021[108]. Revenue Breakdown - The revenue breakdown shows that 51.95% came from personal client rentals, totaling HKD 75,041,000, while sales of elder-related products accounted for 75.02% of total revenue[16]. - Revenue from elderly care services decreased from approximately HKD 114,223,000 to HKD 108,373,000, a decline of about 5.12% compared to the same period last year[21]. - Revenue from the sale of elderly-related products and health services decreased from approximately HKD 39,178,000 to HKD 36,094,000, a decline of about 7.87% due to lower average occupancy rates[24]. - Revenue from personal clients for elderly care services decreased from approximately HKD 80,893,000 to HKD 75,041,000, a decline of about 7.23%[21]. - Revenue from day care services provided to the elderly increased from approximately HKD 3,566,000 to HKD 3,601,000, an increase of about 0.98%[21]. - Revenue from the fixed number of beds rented by the Social Welfare Department under the Enhanced Buy Place Scheme increased from approximately HKD 29,241,000 to HKD 29,524,000, an increase of about 0.97%[21]. - Revenue from beds rented by non-government organizations decreased from approximately HKD 523,000 to HKD 208,000, a decline of about 60.23% due to reduced referrals from NGOs during the pandemic[23]. Operational Challenges - The company plans to enhance staff training and implement cost control measures to optimize resources in response to increased operational costs due to the COVID-19 pandemic[14]. - The company will continue to monitor the situation in its elder care homes and implement special measures for infection control amid the ongoing pandemic[14]. - Average occupancy rate for Enhanced Buy Place Scheme elderly homes decreased to 86.17% from 94.56% in the previous year, while non-Enhanced Buy Place Scheme homes decreased to 75.34% from 82.06%[26]. - Employee costs increased from approximately HKD 61,950,000 to HKD 71,708,000, an increase of about 15.75% due to hiring more staff for health and personal care services[29]. - Property rental and related expenses increased from approximately HKD 13,934,000 to HKD 15,038,000, an increase of about 7.92%[30]. Future Outlook - The aging population in Hong Kong is projected to nearly double by 2040, driving demand for elder care services and presenting growth opportunities for the company[15]. - The management team is considering expanding its network of elder care homes in strategic locations to serve more elderly residents[15]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of its financial reporting, as stated in its compliance with GEM listing rules[2]. - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[42]. - The company emphasizes the importance of good corporate governance for sustainable business growth and shareholder value[42]. - There were no competitive businesses or conflicts of interest reported among directors or major shareholders during the reporting period[44]. Shareholder Information - As of September 30, 2022, Mr. Yi holds 258,996,000 shares, representing 64.75% of the company's equity[49]. - Mr. Lei holds 36,032,000 shares, representing 9.01% of the company's equity[49]. - 瑞樺 holds approximately 62.18% of the company's shares, equating to 248,700,000 shares[57]. - The total equity interests of 易先生 and related parties in 瑞樺 are collectively controlled at approximately 64.75%[62]. - The company has a significant concentration of ownership, with major shareholders holding substantial percentages of equity[60]. - The company has a total of 400,000,000 issued shares as of September 30, 2022[60]. Transactions and Dividends - The company agreed to acquire a property located at 9 Cheung Yip Street, Kowloon Bay, Hong Kong for HKD 16,474,500[40]. - The acquisition constitutes a discloseable transaction under GEM Listing Rules as the applicable percentage ratio exceeds 5% but is below 25%[40]. - No dividends were recommended for the reporting period[47]. - The company declared an interim dividend of HKD 4,599,000 during the reporting period[73]. - The company did not declare an interim dividend for the nine months ended September 30, 2022, compared to an interim dividend of HKD 32,000,000 for the same period in 2021[104]. Compliance and Reporting - The audit committee has reviewed the unaudited financial results and confirmed that they comply with applicable accounting standards[66]. - The financial report is prepared in accordance with International Financial Reporting Standards and is presented in Hong Kong dollars (HKD), rounded to the nearest thousand[79]. - The company operates a single reportable segment, which is the operation of elderly care homes[80]. - The company has not adopted any new or revised standards that have a significant impact on the financial statements for the nine months ended September 30, 2022[79]. - The company is currently evaluating the impact of new and revised standards on its financial performance and position, but has not identified any significant financial impact as of now[79].