ThrivingGrowth Driven by Broadening of Elderly Residential Care HomesNetwork

Unaudited Interim Financial Highlights (For the 6 Months ended 30 June)

HONG KONG, CHINA - Media OutReach - 7 August 2018 - HangChi Holdings Limited ("HangChi", or the "Company", together with its subsidiaries, the "Group", stockcode: 8405.HK), a well-established home-grown operator of elderly residentialcare homes in Hong Kong, announced its unaudited interim results for the 6months ended 30 June 2018 ("the Reporting Period"). During the ReportingPeriod, the Group's revenue soared by 44.69% to HK$65.91 million, and theprofit for the Period shot up by 182.94% to HK$9.55 million, principallypropelled by the rise in the total number of residential care places under theGroup through the acquisition of Shui Jun Nursing Centre (Yau Tong) CompanyLimited ("Shui Jun (Yau Tong)"), and no listing expense was recorded during theReporting Period.

During the Reporting Period, the revenue generatedfrom the rendering of elderly home care services increased to approximatelyHK$51.24 million from approximately HK$37.71 million for the same period lastyear, representing an approximately 35.89% hike and accounting for 77.75% ofthe Group's total revenue. The revenue derived by the Hong Kong Social WelfareDepartment, which leased a fixed number of places at the Group's elderlyresidential care homes under the Enhanced Bought Place Scheme("EBPS"), went up by approximately 19.25% to HK$14.25 million.Moreover, the revenue generated from the rendering of elderly home careservices for individual customers, together with the unsubsidised portions paidby individual customers under the EBPS, grew significantly by approximately43.55% to $36.83 million. The revenue derived from the non-governmentalorganisations which leased residential care places from the Group's elderlyresidential care homes surged by approximately 58.25% to HK$163,000. During theReporting Period, the average occupancy rates of the Group's elderlyresidential care homes under EBPS and non-EBPS elderly residential care homeswere approximately 96.85% and 94.01%, respectively.

The Group's other major source of revenue was thesales of elderly related goods and provision of healthcare services. During thereporting period, the related revenue jumped by approximately 87.02% toHK$14.66 million, accounting for approximately 22.25% of the Group's totalrevenue.

Looking to the future, Mr. Yik Tak Chi, Chairman and Executive Director of Hang Chi said,"Due to the ageing population in Hong Kong, the demand for quality elderly carehomes is constantly on the rise. In view of the vast growth potential of theelderly residential care homes market, the Group has completed the acquisitionof Shui Jun (Yau Tong) to increase its total residential care places to 814 inNovember 2017. The Group will continue to expand the operation by furtheracquiring or leasing new residential care home, and, concurrently, we will alsobroaden our capabilities through increasing the sales of elderly related goods and the provision ofhealthcare services, in order to provide better services to the elders whilemaximising profits to shareholders."

About Hang Chi Holdings Limited

Hang Chi (HKSE stock code: 8405) is awell-established home-grown operator of elderly residential care homes in HongKong. Deeply rooted with a history of over a decade in Hong Kong, the Groupoperates six self-owned and self-operated elderly care homes under threebrands, which included four "Shui On瑞安", one "Shui Hing 瑞興"andone "Shui Jun 瑞臻",offering a total of 814 residential care places that provide 24-hourcomprehensive home and elderly care services round-the-clock. Committed to theoffering of truly caring services under a well-managed operational regime, theGroup has consistently maintained occupancy rate of its elderly residentialcare homes at or above 95%. It has established itself as a synonym for qualityelderly care services. 

The Company was listed on the GEMboard of the Hong Kong Stock Exchange on 12 July 2017 and raised net proceedsof HK$45.5 million. The capital will be applied for propelling the Group'sgrowth, expanding its business and increasing its competitiveness. For moreinformation on Hang Chi, please visit www.shuionnc.com.