"Health + Wealth" Strategy Synergy Gradually Emerges
HONG KONG, Aug 27, 2018 - (ACN Newswire) - Mason Group Holdings Limited ("Mason Group" or the "Group", stock code: 273.HK) today announced its unaudited interim results for the six months ended 30 June 2018 (the "Period"). With the continued implementation of its "Health + Wealth" strategy, the Group's net profit surged more than 18 times to approximately HK$172.18 million and saw a turnaround in its profit attributable to the Group's equity holders, amounting to approximately HK$135.43 million, with turnover increasing by 45.27% year-on-year to approximately HK$1,841.32 million. The significant improvement in the Group's performance is mainly attributable to the implementation of the "Health + Wealth" strategy and the establishment of a combined enterprise and financial development model, which has helped the Group to take one step closer to becoming a diversified international finance holding group.
Mr. CHANG Tat Joel, Mason Group's Executive Director and Chief Operating Officer, commented "After a series of acquisitions, the Group has seen encouraging results in terms of synergy and effectiveness from its newly integrated "Health + Wealth" business operations. During the first half of 2018, Mason Group established Mason Healthcare Group Limited ("Mason Healthcare Group"), Hong Kong's largest and Asia's leading IVF and biotechnology platform, which marked a milestone in the premium medical services market in Hong Kong. Meanwhile, it strived to strengthen its global financial ecosystem, with the successful acquisitions of Raiffeisen Privatbank Liechtenstein AG ("RPL") and Harris Fraser Group ("HFG"), a renowned wealth management company in Hong Kong, which further expanded its global footprint and realized the Group's vision to build a comprehensive global financial platform."
During the Period, Mason Group actively established its healthcare and financial operations. In terms of the healthcare business, it capitalized on growing market demand for assisted reproduction services in Asia, with the Group merging two assisted reproduction giants in Hong Kong to establish Reproductive Healthcare Group Limited ("RHG"), one of Hong Kong's largest IVF medical platforms. RHG provides a comprehensive range of IVF medical services, including intra -uterine insemination, in-vitro fertilization/test tube babies, frozen-thawed embryo transfers and egg freezing services, with approximately 30% market share in Hong Kong's assisted reproduction market. We Doctor Holdings Limited, a leading Chinese technology-enabled medical and healthcare solutions platform, has been introduced as a strategic investor in RHG, an important partnership that will support the Group's expansion into China's IVF market.
Furthermore, another subsidiary of Mason Group, Pangenia Holdings Limited ("Pangenia") primarily provides testing services, including women's health, prenatal and early cancer screening. Hence together with RHG, Mason Healthcare Group has a total of 3 IVF clinics, 4 laboratories, with more than 100 specialists and life science specialists. During the Period, the premium medical platform generated approximately HK$157.9 million in profit, up 745.93% year-on-year, of which HK$140 million is gain on disposal of interests in RHG, the profits of RHG and Pangenia excluding the gain on disposal is HK$17 million.
In terms of the mother-infant-child consumer retail platform, the Group has successfully formed an integrated ecosystem of upstream and downstream manufacturing, distribution and sales channels of mother-infant-child related products. The Group's Aiyangdao Zhuhai Business Chain Limited ("AYD"), a leading mother-infant-child products franchisor in China, and Blend and Pack Pty. Ltd. ("Blend & Pack"), an Australian infant formula and nutritional products manufacturer, maintained strong growth momentum. As at 30 June 2018, AYD had a regional network of 1,148 direct and franchise stores and 5,929 partner stores. The number of AYD franchise stores in Southern and Eastern China has been increasing, and has enhanced its brand awareness. According to the Nielsen report, AYD's brand recognition in the country has reached 29.3%. During the Period, the Group's mother-infant-child consumer retail platform generated approximately HK$1,611.71 million in revenue, up 46.65% year-on-year, and a profit of approximately HK$71.94 million, up 27.33% year-on-year.
In terms of its financial services platform, the successful acquisitions of RPL and HFG have added new service capabilities to the Group's financial platform. RPL has added deposit taking services, custody services and trust function capabilities, while HFG has added investment advisory services. These capabilities will enable the sale and distribution of a diverse range of products to clients in Asia and Europe, thus strengthening the competitiveness of the Group's financial platform. During the Period, the financial services platform recorded an increased operating income of about 60.64% to approximately HK$147.93 million, and recorded a turnaround in profit reaching HK$37.41 million. The Group's Assets Under Management ("AUM") amounted to HK$9,064 million as at end of June 2018.
Looking ahead, the Chinese government's two major initiatives - the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative - have both unleashed vast opportunities for Hong Kong. Leveraging the strengths of its financial and biotechnology platforms, the Group will grasp the demand for financial and premium medical services in the Greater Bay Area and even the Asia Pacific region. Meanwhile, its financial services platform will integrate RPL and HFG into the Group's financial platform, broaden product range, increase service offerings, widen client base, as well as expand wealth management capabilities to achieve AUM growth. In terms of the healthcare business, the Group intends to serve the health management organization ("HMO") in Greater Bay Area to align with relevant government policies. The Group is also planning to set up a research center for assisted reproductive and genetic testing technology. The Group is seeking acquisition targets in the Asia Pacific region, including investment managers and asset management companies in Korea, Taiwan and Singapore as part of its growth strategy.
Mr. KO Po Ming, Executive Director, Chairman and Chief Executive Officer of Mason Group, concluded "Mason Group's wide-ranging strengths have greatly improved within two years, laying a foundation for development in the long run. From set-up to integration, the two major businesses have begun to enter the strategic development stage, and more importantly, the Group is on the right track. The Group will continue to adhere to its "Health + Wealth" growth strategy to facilitate synergy across financial, premium medical and mother-infant-child consumer retail platforms on a global scale. The management is confident that the Group will continue to grow and develop in the future, creating value for the Group's shareholders and providing substantial returns."
About Mason Group Holdings Limited
Mason Group Holdings Limited (stock code: 273.HK) is a health and wealth solutions service conglomerate. It principally provides comprehensive financial services in Hong Kong, including financial brokerage services, leveraged and acquisition financing, asset and wealth management services and mortgages business. In addition, the Group provides innovative health solutions through its healthcare business, mother-infant-child business, and dairy products manufacturing business. Leveraging its "Health + Wealth" strategy, the healthcare business provides steady capital and a client base resource that support the rapid development of the Group's financial services business. For more information, please visit: http://www.masonhk.com