Pine Care Group announces its 2021 Annual Results

HONG KONG,June 24,2021 --

Highlights

Revenue increased by 13% to HK$245.7 million,mainly driven by the ramp-up in the occupancy rate of Pine Care Place,full year impact of operation of Pine Care Point; and increase in average monthly residential fee of its eight EA 1 care and attention homes

Core EBITDA increased by 65.1% to HK$53.8 million

Financial Highlights

Year ended 31 March 2021

HK$ '000

2021

2020

Change

Revenue

245,706

217,363

+13.0%

EBITDA[1]

85,159

58,668

+45.2%

Core EBITDA[1]

53,776

32,573

+65.1%

One of the leading senior care operators in Hong Kong,Pine Care Group Limited ("Pine Care Group" or the "Company",together with its subsidiaries,the "Group",stock code: 1989.HK),today announced its annual results for the year ended 31 March 2021 ("FY2021"). During the Reporting Year,the Group's total revenue delivered a year-on-year increase of approximately 13.0% to HK$245.7 million in FY2021 from HK$217.4 million for the year ended 31 March 2020 ("FY2020"),which was mainly driven by the ramp-up in the occupancy rate of Pine Care Place,full year impact of operation of Pine Care Point; and increase in average monthly residential fee of its eight EA1 care and attention homes.

During the Reporting Year,core EBITDA amounted to HK$53.8 million,representing a year-on-year growth of approximately 65.1%.

Business review

The Group's senior care business in Hong Kong mainly comprises of eight EA1 care and attention homes and two newly developed RCHEs,the upscale RCHE,Pine Care Place,and RCHE specialising in dementia care,Pine Care Point.

The core business of its eight EA1 care and attention homes in Hong Kong remains strong and stable despite all the hardships with an average occupancy rate of 94.0%. Meanwhile,the Group is making great strides in the upscale segment. Pine Care Place has entered into its third operational year with occupancy rate as at 31 March 2021 surged to 80.9% as compared to 38.2% as at 31 March 2020,which contributed to the increase of revenue to HK$20.3 million in FY2021 as compared to HK$11.9 million in FY2020.

As for Pine Care Point,its revenue increased to HK$9.0 million in FY2021 from HK$0.3 million in FY2020 due to full year impact of operation. Occupancy rate as at 31 March 2021 approximated to 24.2%. The Group is confident of increasing the occupancy at Pine Care Point at an even quicker pace once the COVID situation stabilises. It is believed that the demand for quality dementia care is seriously underserved in Hong Kong and the Group is perfectly positioned to capitalise on this opportunity. The Group has also extended its multidisciplinary care service offerings to its residents to meet their specific needs.

The Group is gaining considerable momentum with its daycare services. The Group's first daycare centre at Pine Care Place in Yoho Mall was well received and has been a great success. The 20 daycare places were filled at the moment they became available in June 2020. The Group now plans to launch its second daycare centre at Pine Care Point with 35 places in late 2021.

In terms of the expansion,the Group has entered into a tenancy agreement for the lobby on ground floor and the front (or southern) portion of the first,second and third floors of No. 1 Leighton Road,Causeway Bay,Hong Kong — a total floor area of approximately 35,400 square feet.

With this space,the Group plans to establish and operate an upscale and gerontechnology-enabled,state of the art residential community for the seniors with a wide range of services covering EA1 (Note),affordable luxury and upscale residential care. Medical and professional nursing support will be delivered by a multidisciplinary team including,but not limited to,nurses,social workers,occupational therapists and physiotherapists.

The community enjoys a prime location on Hong Kong Island,within 10-minutes drive of five of Hong Kong's leading private and public hospitals. It will be staffed by health care professionals using a variety of advanced gerontology methods and technology to ensure the highest standard of geriatric care and well-being for the residents.

Business outlook

Moving forward,the Group will be redoubling our efforts with regard to training and development and strategically strengthening our manpower pipeline for upcoming developments.

Among these developments,the Group is currently in the process of exploring anasset light model that will enable us to replicate our business for differentmarket segments at a faster pace. The Group plans to extend footsteps in the Greater Bay Area,while continue to explore opportunities in Hong Kong to strengthen the Group's position in the industry.

The Group also aims to serve a wider spectrum ofcustomers with a greater range of service offerings. These include the active seniors currently being served by our integrated wellness hub for independent living at Patina Wellness,in Kowloon City; the expansion of our day care facilities; enhanced respite care and a wider range of residential care to encompass different age groups both in Hong Kong and the Greater Bay Area.

Mr. Angus Chan,Chief Executive Officer and Executive Directorof the Group,said,"Despite the pandemic has challenged many industries in the past year,Pine Care Group has remained strong in our senior care business which reflects the strong demand for quality senior care service in the market. We will continue to leverage our current resources to create sustainable long term value for our shareholders and promote the quality standard and development of the senior care industry with more innovative initiatives; and further extend our success and business models from Hong Kong to the rest of the Greater Bay Area."

About Pine Care Group Limited

Pine Care Group is a leading senior care operator in Hong Kong,providing comprehensive senior care services. The Group owns an extensive network of care and attention homes in Hong Kong under the brand name of "Pine Care Group". The Group was listed on the Main Board of The Hong Kong Stock Exchange in February 2017,with stock code 1989.

[1]"EBITDA" represents earnings before interest,tax,amortisation and depreciation. "Core EBITDA" represents EBITDA before share of depreciation and interest of a joint venture,other income and gains and non-recurring government grant for Employment Support Scheme,excluding the effect of adoption of HKFRS 16 on property rental and related expenses.