Operations and Occupancy - As of September 30, 2023, the group operates nine nursing homes with a total of 1,229 beds, an increase from the previous period[5]. - The average monthly occupancy rate for the group improved to 86.2% as of September 30, 2023, compared to 84.1% on March 31, 2023[11]. - The occupancy rate for Kato Elderly Home reached 94.4% as of September 30, 2023, up from 88.2% in the previous period[11]. - Kato (Hong Kong) Holdings Limited's nursing homes are primarily contracted with the Social Welfare Department, which purchases beds under the Improved Purchase Scheme[6]. - The group has a diversified client base, including self-paying individuals and those receiving subsidies from the Social Welfare Department[6]. - The group’s nursing homes operate under various brand names, including "Fai To," "Kato," and "Tsuen Wan Center," all sharing the same logo[5]. - The average monthly occupancy rate for Kato Elderly Home was 90.0% as of September 30, 2023, significantly up from 48.5% in the previous period[11]. - The group plans to expand its services and improve care quality in response to increasing demand for elderly care in Hong Kong[5]. - The group is focused on enhancing its service offerings, including nutritional management and psychological care services[5]. - The group aims to maintain a high standard of care by adhering to the requirements set by the Improved Purchase Scheme for its nursing homes[9]. Financial Performance - Revenue decreased from approximately HKD 208.3 million in the previous period to about HKD 135.2 million in the current period, a decline of approximately 35%[20]. - Income from elderly care services increased to HKD 60.471 million, representing 44.8% of total revenue, compared to HKD 48.751 million (23.4%) in the previous period[18]. - The company provided community care services generating HKD 4.440 million, which accounted for 3.3% of total revenue, up from HKD 3.882 million (1.9%) previously[18]. - Medical and laboratory services revenue rose to HKD 5.551 million, a significant increase from HKD 226 thousand in the previous period[18]. - Profit for the current period decreased by approximately 64.8% to about HKD 20.1 million from HKD 57.1 million in the previous period[25]. - The company reported a decrease in total employee benefits expenses to HKD 4,428,000 for the six months ended September 30, 2023, from HKD 6,944,000 in the same period of 2022[137]. - The company’s total comprehensive income for the period was HKD 19,922,000, down from HKD 57,017,000, a decrease of 65.0%[77]. - For the six months ended September 30, 2023, the company reported a net profit of HKD 19,930,000, a decrease from HKD 57,167,000 for the same period in 2022, representing a decline of approximately 65.2%[82]. Assets and Liabilities - The net asset value remained stable at approximately HKD 371.8 million as of September 30, 2023, compared to HKD 372.9 million on March 31, 2023[28]. - The current ratio was approximately 1.3 times as of September 30, 2023, down from 1.6 times on March 31, 2023[28]. - The total bank borrowings amounted to HKD 116.664 million, with HKD 14.416 million due within one year[30]. - The group's investment properties were valued at HKD 107.8 million as of September 30, 2023[34]. - The total liabilities as of September 30, 2023, were HKD 324,552,000, a slight decrease from HKD 326,362,000[80]. - The total financial liabilities as of September 30, 2023, amounted to HKD 355,037,000, compared to HKD 332,916,000 as of March 31, 2023, indicating an increase of 6.6%[99]. - The company’s total equity as of September 30, 2023, was HKD 371,842,000, a slight decrease from HKD 372,940,000 as of April 1, 2023[82]. Capital Expenditures and Investments - The company aims to allocate HKD 86.3 million for the acquisition of suitable properties to establish new nursing homes, fully utilizing the funds as of September 30, 2023[48]. - HKD 27.2 million is allocated for the renovation and upgrading of existing nursing homes, with HKD 4.1 million utilized by March 31, 2023, and an expected utilization of HKD 2.2 million by 2024[48]. - The upgrade of IT infrastructure has an allocation of HKD 1.5 million, with HKD 1.3 million utilized by March 31, 2023, and an expected utilization of HKD 1.2 million by 2024[48]. - The company incurred capital expenditures of HKD 54,766,000 for the six months ended September 30, 2023, which is significantly higher than HKD 25,385,000 in the same period last year, marking an increase of about 115.5%[84]. - The group completed the acquisition of land in Yuen Long in July 2021 to establish a new nursing home with approximately 250 beds, expected to commence operations by the end of 2026[39]. - The company completed the acquisition of a property in Lam Tin in February 2021 to establish a nursing home with approximately 220 beds, expected to commence operations in 2024[52]. Shareholder and Governance - The company declared an interim dividend of HKD 0.01 per share, to be distributed on January 5, 2024[26]. - As of September 30, 2023, the company had a total of 1,000,000,000 shares issued, with significant shareholders holding 62.40% and 63.50% of the shares respectively[62][67]. - The company has adopted a corporate governance code to ensure proper regulation of business activities and decision-making processes[72]. - The company has complied with all corporate governance code provisions during the reporting period, except for a deviation regarding the separation of roles between the Chairman and CEO[72]. - The company’s board consists of four independent non-executive directors to provide independent opinions and ensure a balance of power[72]. - The shareholding structure indicates a strong concentration of ownership among major shareholders, which may impact decision-making processes[62][67]. Market and Strategic Developments - The company is diversifying its business by entering the medical diagnostics and health check market in Hong Kong, aiming to increase public awareness of preventive healthcare[54]. - The management team is confident in the company's sustainable development and its ability to adapt to rapid changes in social demands and market trends[54]. - The company has not disclosed any new product developments or market expansion strategies in the provided documents[63][64]. Cash Flow and Financial Management - Cash generated from operating activities for the six months ended September 30, 2023, was HKD 74,576,000, compared to HKD 97,368,000 in 2022, reflecting a decline of approximately 23.4%[84]. - The cash and cash equivalents at the end of the period decreased to HKD 41,616,000 from HKD 78,660,000 at the end of the previous year, indicating a decline of approximately 47%[84]. - The company reported a net cash outflow from investing activities of HKD 87,956,000 for the six months ended September 30, 2023, compared to HKD 25,662,000 in the previous year, indicating a significant increase in cash used for investments[84]. - The company’s operating cash flow for the six months ended September 30, 2023, was impacted by a payment of HKD 4,633,000 in Hong Kong profits tax, which was not applicable in the previous year[84].
嘉涛(香港)控股(02189) - 2024 - 中期财报