Hang Chi Holdings Limited (stock code: 8405), an established operator of elderly residential care homes in Hong Kong, has been sucessfully listed on the GEM Board of The Hong Kong Stock Exchange today. During the day, its price reached HK$1.16, which is approximately 61.11% higher than its offer price. The stock closed at HK$0.88, which is approximately 22.22% higher than its offer price. It recorded a trading volume of 231,000,000 shares, and turnover of approximately HK$211 million.

Guotai Junan Capital Limited is the Sole Sponsor. Guotai Junan Securities (Hong Kong) Limited is Sole Global Coordinator and Sole Bookrunner. Guotai Junan Securities (Hong Kong) Limited, Ping An Securities Limited and Alliance Capital Partners Limited are Joint Lead Managers.

Pursuant to the Cornerstone Investment Agreement, Yingfeng International Investment Limited, a company indirectly wholly-owned by China Minsheng Futurelife Holding Group Co., Ltd., the Cornerstone Investor, has subscribed for 32,000,000 shares, representing an aggregate subscription amount of approximately HK$23.0 million., and representing 64.0% of the placing shares offered pursuant to the placing (as adjusted after reallocation); or 8.0% of the Group’s shares in issue upon completion of the capitalisation issue and the share offer (as the Offer Size Adjustment Option has not been exercised). Said shares has a lock-up period of six months.

Mr. YIK Tak Chi, Chairman, Chief Executive Officer and Executive Director of HANG CHI HOLDINGS LIMITED, said, "We are very honoured to be the first Company listed on the GEM Board of the Hong Kong Stock Exchange in the industry. This is an important step for the Company – becoming a public listed company brings new opportunities and challenges. This marks an important milestone in the Group's development."

As an established operator of elderly residential care homes in Hong Kong, Hang Chi Holdings provides comprehensive residential care home services to elderly residents. It also provides the sales of healthcare and medical consumable products, as well as customisable add-on healthcare services to its elderly residents. The Group owns and operates five elderly residntial care homes in four districts, namely Kwun Tong, Shatin, Eastern and Kwai Tsing districts. Four of these elderly residential care homes operate under the brand of "Shui On", and one operates under the brand of "Shui Hing".

Hang Chi Holdings has a healthy and balanced portfolio. Two of the the Group's care homes are participants of the Social Welfare Department's Enhanced Bought Place Scheme (EBPS), and three are non-EBPS participating private elderly residential care homes. The Group's two EBPS participating elderly residential care homes, namely Shui On (Shun On) and Shui On (Kwai Shing E.) are both classified as class EA1, which is the highest classification of the scheme. The SWD leases 59 and 134 residential care places (altogether 193 residential care places) respectively from the two homes, which represents about 32.8% of the Group’s total number of residential care places. This provided a steady income source for the Group. The remaining three non-EBPS participating private elderly residential care homes, namely Shui On (Hing Wah), Shui On (Sun Tin Wai), and Shui Hing, are not subject to the terms and requirements of the EBPS. Thus, the Group can benefit from a reasonable profit margin and the flexibility in offering more residential care places. In the year ended 31 December 2016, the average occupancy rate per month of Shui On (Hing Wah), Shui On (Sun Tin Wai), and Shui Hing was 98.6%, 98.9%, and 96.7% respectively. The occupancy rate continues to maintain at a relatively high level shows that the service quality of "Shui On" and "Shui Hing" elderly residential care homes are well recognised by elderly residents.

Mr. YIK Tak Chi said, " 'Business prosperity, social sustainability' is our vision and goal. We will continue to seek development for our Company, utilizing our replicable, successful business model to promote the 'Shui On' and 'Shui Hing' brands, so as to increase our market share. We wish to provide comprehensive, quality elderly care services to the elderly, so as to achieve our motto of 'Shui On is your home'. We look forward to the Company's development after the listing. We will continue to contribute to the society with sincerity, and create greater value for our shareholders."