News Room

Human Health Announces FY2023 Annual Results

Enhanced Business Diversification with Sustainable Development

(Hong Kong, 27 September 2023) – Human Health Holdings Limited (“Human Health” or the “Company”, together with its subsidiaries, the “Group”; stock code: 1419), a leading private integrated healthcare service provider in Hong Kong, announces its consolidated annual results for the year ended 30 June 2023 (“FY2023”).

During FY2023, the Group has demonstrated strong resilience and adaptability in the challenging economic and business environment in Hong Kong. The Group’s efforts to diversify its scope of service as well as to enhance its market share through strengthened partnership with the Hong Kong Government and strategic partners, have empowered it to maintain its leadership position in the healthcare sector and weather the impact brought by the market challenges.

Following the resumption of normalcy in Hong Kong with the change of COVID-19 policy of the Hong Kong Government since February 2023, the revenue from COVID-19 services saw a significant decline in the second half of FY2023. The Group’s revenue for FY2023 was approximately HK$1,001.7 million, representing a decrease of approximately 10.7% from FY2022. Gross profit for FY2023 was approximately HK$593.2 million, representing a decrease of approximately 10.1% from FY2022; and the gross profit margin slightly increased from approximately 58.8% for FY2022 to 59.2% for FY2023. The Group’s profit attributable to owners of the Company for FY2023 was approximately HK$180.8 million while the basic earnings per share for FY2023 amounted to approximately HK47.6 cents. The Board proposed declaration of final dividend of HK16 cents per share for FY2023. In summary, while the Group recorded an increase in revenue from specialties services and dental services, it was not sufficient to offset the decrease in revenue from general practice services during the second half of FY2023.

Mr. Chan Kin Ping, BBS, JP said, “Considering the resumption of normalcy in Hong Kong, the market potential of healthcare services sector and public-private partnerships are expected to grow, the Group turned to allocate more resources on the provision of general healthcare, consumer healthcare and preventive medicine. As citizens are compelled to attach greater importance to healthcare by the pandemic, the Group managed to grasp the business opportunities generated from the rising demand in the disease prevention services during FY2023 by providing health monitoring, integrated health enhancement programmes and early detection services via various channels.”

Solid Growth on Specialties Services and Dental Services
During FY2023, the overall performance of specialties services and dental services of the Group witnessed solid growth as compared with that in FY2022. With the ease of the pandemic, patients were more willing to visit hospitals and clinics for non-emergency medical needs. Furthermore, the Group’s continuous efforts to extend the scope of specialties and dental services as well as to enhance the quality of medical services and patient experiences contributed to the growth of these segments. The revenue generated from the specialties services of the Group during FY2023 amounted to approximately HK$115.4 million (FY2022: approximately HK$104.4 million). In view of the growth potential of specialties services due to the strong demand on medical and healthcare services during post-pandemic era, the Group has expanded its specialist team and several specialties services such as Ophthalmology, Otorhinolaryngology, Gastroenterology & Hepatology, General Surgery, Orthopaedics & Traumatology and Dermatology & Venereology by engaging respective specialists during FY2023. In respect of dental services, the Group continued its strategy of developing high-end dental services during FY2023 and the revenue of dental services amounted to approximately HK$67.3 million, representing an increase of 6.4% as compared with that of FY2022. The Group’s continuous investment in dental technology and equipment enabled faster and more accurate diagnosis and treatment, making an essential contribution to the growth in this segment.

Official Opening of Healthy Square H2 – Mega Health Hub
To further expand its specialties and dental services and enhance its capabilities, the Group has established the mega health hub – “Healthy Square H2” at Star House in Tsim Sha Tsui, which is a healthcare facility that offers a wide range of medical and health-tech services. The health hub integrates multiple services under one roof, making it convenient for customers to access comprehensive care at once. The one-stop services provided at the mega health hub mainly include specialties, day surgery, dental, pharmacy, physical examination, early detection, nutritionist, wellness management as well as sales of healthcare products and services and a creative activity centre offering health lectures and activities, etc.

Steady Development of Rehabilitation Services
The Group took a momentous step by establishing a Work Injury Rehabilitation Office and providing services under the “Pilot Rehabilitation Programme for Employees Injured at Work” launched by the Labour Department of Hong Kong (the “Pilot Programme”). This initiative diversified and reinforced the Group’s medical services layout, and the Pilot Programme has progressed favorably, contributing a stable source of income to the Group.

Positive Prospect on PRC Business Development
During FY2023, the Shanghai Human Health Integrated Medical Centre (上海盈健門診部上海盈健門診部) – the medical centre operated by Pingan Yingjian Medical Management (Shanghai) Limited* (“Pingan Yingjian”, the associate of the Group) focused on nourishing customer retention, attracting new customers through referral programs, and providing premium, high-quality and high-value added medical aesthetic and other aesthetic services to enhance customer experiences.

In view of the expansion of the medical centre, the huge growth potential of healthcare industry during the post-pandemic era in the PRC, along with the reopening of the border of the PRC, the Group has entered into loan agreement with Pingan Yingjian for the provision of shareholder’s loan of RMB10.5 million for a term of three years on 5 January 2023 by utilising the unutilised net proceeds from the initial public offering of the Company for the expansion in the PRC market. The loan to Pingan Yingjian will be used as its working capital for the existing and expanding business.

Outlook for FY2024
With the easing of pandemic-related restrictions and the reopening of Hong Kong and Mainland China’s borders, number of inbound visitors is expected to increase, thus bringing a surge in the demand from visitors. In addition, the general public’s awareness of health
issues has significantly increased, the Group is optimistic towards the growing market potential of healthcare services sector and public-private partnerships in Hong Kong during the post-pandemic era.

To provide comprehensive healthcare solutions to its customers, the Group plans to expand its eye healthcare services along with the existing one provided at Healthy Square H2. The Group shall provide its customers a wider range of eye related procedures, covering Cataract, Vision Correction, and Retinal Diseases. The expansion of these services is expected to make ophthalmology services to be one of the core revenue streams for specialties segment of the Group.

Furthermore, the Group will be consistently looking for close cooperation with the Hong Kong Government and strategic partnerships with organisations. During FY2023, with the Primary Healthcare Blueprint issued by the Hong Kong Government to formulate the direction of development and strategies for strengthening Hong Kong’s primary healthcare system, the demand for primary healthcare services and private medical spending are anticipated to increase.

Mr. Chan Kin Ping, BBS, JP concluded, “The Group’s strategic initiatives in FY2023 have demonstrated its ability to innovate and resilience towards market challenges. Looking ahead to FY2024, while the revenue from general practice services will unavoidably be adversely affected by the cessation of the COVID-19 related services, we will remain committed to delivering high-quality and holistic healthcare services to its customers and will continue to explore new business opportunities in response to evolving customer needs. We will continue to prioritise digitisation and automation to improve operational efficiency and effectiveness and we aims to consolidate our leading position in the healthcare industry byexpanding the market share, increasing the scale and efficiency, and enhancing stakeholder engagement during FY2024.”

About Human Health Holdings Limited
Human Health, listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 1419), is one of the largest medical groups in Hong Kong. Having been serving the community since 1997, the Group operates almost 60 medical centres, with more than 800 professional team members and staff. With an aim to ”Elevate Your Health Values, Elevate Your Life", Human Health provides comprehensive medical services network including general practice, specialties, dental, physiotherapy, outreach, rehabilitation and case management, diagnostics and imaging, day procedure and endoscopy, medical aesthetics, Chinese medicine and wellness services to provide professional and person-centric care medical and wellness services in Hong Kong.

Media Enquiries:
China Times Corporate Advisory Limited
Destiny Cheng
Tel: (852) 6220 0861
Email: pr@ctimes.hk
Fax: (852) 3428 3012