News Room
Human Health Announces 2024 Interim Results
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Upgraded Operational Effectiveness and Efficiency
(Hong Kong, 27 February 2024) – 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 interim results for the six months ended 31 December 2023 (the “Interim Period of FY2024”).
During the Interim Period of FY2024, the Group managed to maintain remarkable resilience and adaptability, indicating its strategic vision, operational excellence, and commitment to its stakeholders. While the Group experienced a decrease in revenue, it is important to highlight that the Group has made significant strides in upgrading its operational effectiveness and efficiency.
The Group recorded revenue of approximately HK$295.2 million for the Interim Period of FY2024, representing a decrease of approximately HK$386.1 million as compared with the Interim Period of FY2023. The decrease in the Group’s revenue for the period was primarily due to the decrease in revenue generated from COVID-19 related preventive, testing, vaccination and outreach services of approximately HK$453.4 million. After exclusion of the revenue generated from such services, the Group’s revenue increased by approximately 29.6% as compared with the Interim Period of FY2023.
Gross profit for the Interim Period of FY2024 was approximately HK$140.5 million, representating a decrease of 70% year-on-year; and the gross profit margin was approximately 47.6% (Interim Period of 2023: 68.7%). It was mainly due to the decrease in gross profit margin for general practice services. Apart from the above-mentioned financial information, it is also noteworthy that the Group’s overall financial performance during the Interim Period of FY2024 has showcased steady growth when compared to the previous interim periods before the onset of COVID-19 pandemic.
Mr. Chan Kin Ping, BBS, JP said, “Considering the importance of maintaining a strong financial position and sustaining future growth, we have actively implemented strategies to upgrade our operational effectiveness and efficiency. Overall, the Group maintained a strong focus on cost management and implemented high efficiency operation management measures. During the Interim Period of FY2024, the Group has made notable progress in advancing its strategic goals, continuous investment in expediting the upgrade and enhancement of its IT infrastructure and digital transformation, increased the medical services market share through strengthened partnership with the Hong Kong Government and strategic partners, and was committed to delivering value to its stakeholders.
Strong Tenacity in General Practice Segment
During the Interim Period of FY2024, with the post-pandemic resumption of normalcy in Hong Kong, the Group’s revenue from COVID-19 related services witnessed a sharp decline owing to the weakened demand for these services. In spite of such challenges posed, the Group’s general practice segment remained resilient. As mentioned in the previous paragraph, after exclusion of the revenue generated from COVID-19 related services, the Group’s revenue of general practice services increased by approximately 47.3% as compared with the Interim Period of FY2023. More importantly, throughout the years, the Group’s general practice segment has exhibited solid growth and improvement in terms of revenue stream, service quality, customer base and market opportunity capturing capability.
The Group has strived to build a complete and strategic medical centre network over the years, serving as an integrated medical service platform that can provide fast, convenient and comprehensive medical services to patients. During the Interim Period of FY2024, the Group acquired a new medical centre at Lam Tin as an additional service point. In addition, the Group focused on bolstering its general practice offerings and enhancing the capabilities in areas such as family medicine, preventive care, and chronic disease management. Overall, the Group’s strategic investments in general healthcare, consumer healthcare, and preventive medicine reflect its dedication to meeting the evolving needs of its patients and capitalising on the growing market potential in the healthcare services sector. Through the establishment of the “InHealth Plus” brand, the constant promotion of its online shopping platform, and the opening of Healthy Square H2, the Group remains dedicated to upholding the highest standards of care, adapting to the changing healthcare landscape, and providing comprehensive and accessible primary healthcare services to the customers.
Stable Performance in Specialties and Dental Segments
During the Interim Period of FY2024, the Group’s specialties services experienced a stable
growth and the performance of dental services maintained stable as compared with that of the Interim Period of FY2023. The revenue from the specialties services of the Group during the Interim Period of FY2024 amounted to approximately HK$65.2 million (Interim Period of FY2023: approximately HK$57.9 million), an approximately 12.5% year on year growth. During the Interim Period of FY2024, the Group expanded its eye care services at Healthy Square H2 and this strategic expansion on ophthalmology services is expected to contribute as a core revenue growth within the specialties segment of the Group.
In respect of dental services, the Group continued its strategy of developing high-end dental services during the Interim Period of FY2024 and the revenue of dental services amounted to approximately HK$31.1 million, as compared with approximately HK$34.9 million for the Interim Period of FY2023. In addition, the Group’s ongoing investment in dental technology and equipment has played a vital role in driving growth in this segment.
Promising Prospect of Rehabilitation Services
During the Interim Period of FY2024, the Group’s rehabilitation services continued to exhibit steady growth. The “Pilot Rehabilitation Programme for Employees Injured at Work” launched by the Labour Department of Hong Kong progressed favourably, providing a stable source of income for the Group and reinforcing its commitment to delivering exceptional rehabilitation services.
Looking ahead, the Hong Kong government proposes to extend its rehabilitation services to other industries, the Group shall continuously leverage its expertise and persistently explore new business opportunities and is dedicated to facilitating the overall development of its medical services in the rehabilitation sector.
Development of Healthy Square H2
The Group has expanded its range of services of Healthy Square H2 to include advanced eye care procedures, notably covering Cataract, Vision Correction, and Retinal Diseases. By catering to the healthcare needs of elderly, middle-aged, and young individuals, it is aimed to ensure accessibility to high-quality eye care services for all segments of the population. This commitment to inclusive care aligns with the Group’s mission of delivering exceptional and personalised healthcare solutions.
In addition to its expanded eye care services, the Group continued to excel in providing integrated services, addressing the growing demands of customers, and enhancing the overall customer experience. Noteworthy advancements included the establishment of a licensed day procedure centre, the expansion of health management services, and the incorporation of strategic collaborations with renowned brands and online-offline platforms. Its sustained development manifested the ability to adapt to the dynamic healthcare landscape, driving Healthy Square H2 as a premier destination for the provision of comprehensive healthcare services.
Steadfastness in the PRC Business
During the Interim Period of FY2024, the Group’s PRC business maintained steady. Through the existing Shanghai Human Health Integrated Medical Centre (上海盈健門診部), operated by Pingan Yingjian Medical Management (Shanghai) Limited (“Pingan Yingjian”, an associate of the Group), the Group continued to deliver high-quality medical aesthetic services to its customers. By leveraging its expertise and adapting to market dynamics, Pingan Yingjian has established itself as a trusted provider of health and wellness services in the region. In addition, it has strategically allocated its resources for the achievement of maximising the value of its stakeholders. The Group’s PRC business segment demonstrated a testament to the Group’s commitment to delivering quality services and promoting health and well-being in the PRC market.
Outlook for for Second Half of FY2024
Building upon the strategic initiatives of the Interim Period of FY2024, the Group has demonstrated its resilience and innovative capabilities in navigating market challenges. Stepping into the second half of FY2024, the Group remains committed to delivering high quality and comprehensive healthcare services to its customers while adapting to the changing landscape. Notwithstanding the revenue from general practice services was affected by the decrease in demand for and provision of COVID-19 related services, the Group will continue to proactively explore new business opportunities to address evolving customer needs. By expanding its market share, enhancing operational efficiency, and improving stakeholder engagement, the Group strives to solidify its leading position in the healthcare industry.
Digitisation and automation will continue to be prioritised as the Group seeks to optimise operational effectiveness and efficiency. Also, with the increasing demand for healthcare services, the Group is well-positioned to capitalise on these opportunities. The Group remains confident in its ability to achieve sustainable growth and deliver long-term returns to its shareholders. While monitoring potential macroeconomic and industry-specific challenges, the Group will take necessary measures to mitigate risks and seize the opportunities that lie ahead. Through strategic initiatives, digital transformation, and a customer-centric strategy, the Group is poised for continuous delivering value to its stakeholders.
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 services, specialties services, dental services, Chinese medicine, physiotherapy, outreach, rehabilitation and case management, diagnostics and imaging, day procedure and endoscopy, medical aesthetics, wellness services and sale of healthcare products and services to provide professional and people-centric care medical and wellness services in Hong Kong.
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