About Us
Dr. Benjamin Lai
Chairman of Board of Directors,
MentalCare Connect Co Ltd
I am delighted to present to you the twenty second annual report of MentalCare Connect Company Limited after a
challenging year following the COVID pandemic with the uncertain outlook of local economy, difficulties faced by
various business sectors in Hong Kong and changes in consumer pattern in the retail industry in 2023-2024.
Thanks to the continual financial support by the Government and the dedication and hard work of the staff of the Company. I am pleased to share with you the strong performance of the Company over the past year. The gross income of the Company is $188 million Hong Kong dollars representing a 9.9% increase over the preceding year and a net profit before tax of about $1.56 million dollars. At the end of the financial year ending on 31 March 2024 the number of employee is 220 with over 70% of the employees being from the disabled and disadvantaged group. The number of placement attendances provided to disabled persons for gaining experience in the year is 259. As of 31 March 2024 there are 35 shops and projects under the Company including 1 new shop and 7 re-new projects in the past one year. The Company has maintained its commitment to the provision of business outlets and services to patients, relatives, staff and customers inside the public hospitals. The Company will look forward to suitable opportunities in expanding its shops outside of the hospitals.
Thanks to the support of Mindset the Company has embarked on the management of 7-Eleven with the input of a part time social worker to facilitate the adjustment of the disadvantaged persons in the work environment during the course of their rehabilitation. This collaborative efforts by a corporation and a social enterprise in the facilitation of the rehabilitation of the ex-mentally ill has brought positive impact to the disadvantaged persons. Further expansion of such collaborative efforts is in the pipeline.
The Company will continue the joint efforts with other social enterprises in the promotion of social responsibilities and support of the disadvantaged persons.
On behalf of the Board I would like to thank the Home and Youth Affairs Bureau, Social Welfare Department, the Hospital Authority, suppliers, honorary advisors and other stakeholders for their continual support and advice to the Company. The Board is grateful to Mr. Chung Wai Shing and his staff for their dedication and hard work for the success of the Company. I wish to thank members of the Board for their insightful advice and untiring support to the Company.
Mr. Chung Wai Shing
CEO, MentalCare Connect Co Ltd
The epidemic was finally declined after its three years' ravaging the world. All walks of life were looking forward to the comprehensive recovery of social and economical activities. The business sectors were also anticipating a return of economic momentum similar to the period before the epidemic and social activities. However, the results seemed not matching the anticipation. Emigration, online shopping, consumption behaviour shifting to Mainland and the change of tourists' consumption pattern had seriously hampered the restoration, especially in catering and retail industries. This led to a new wave of business closure. Pursuant to the unpredictability of the market trend and the rental concession of Hospital Authority and HKSAR to be terminated in December 2023, this casted an obvious burden to the operational cost and also affected the pace of business development in the community.
Core Mission Implementation
As of March 2024, "MentalCare Connect" operated 35 social enterprise projects and employed a total of 220 staff. Among them, 157 were disadvantaged groups of people (144 were disabled). This accounted for 71% of the workplace. 259 cases were referred to our Company and shops for placement by different organisations. The collaboration of 7-Eleven x Mindset x MentalCare Connect recorded a positive impact. With reference to the interim report, the social workers' support showed a significant elevation in different areas, particularly in the relief of tense emotion, emotion distress, increase the working competitiveness and enhancement of working stability.
Financial Performance
In Year 2023 to 2024, the total revenue of "MentalCare Connect" was HK$188,099,569, showing a growth of 9.9% year-to-year. "Enhancing Employment of People with Disabilities through Small Enterprise Project" and "Enhancing Self-Reliance through District Partnership Programme" funded a total of HK$1,972,376 as the start-up fund for different social enterprise projects. This translated as an approximate of 1.05% of the income. Due to the gradual relief of "Emergency Response Level" in public hospitals, the footfall of the Hospital was evidently increase. This should bring a considerable business to our shops. Unfortunately, the Government and the Hospital Authority abolished the rental concession scheme and one-off staff salary subsidy in December 2023 brought the reduction of profit by more than 50% for Year 2023-2024.
Business Development
Rehab Shop/Convenience Store Business
Following the relief of "Emergency Response Level" in public hospitals, along with the extension of visiting hours and resumption of non - emergency medical services, the Hospital footfall was significantly increase. This further enhanced our business revenue. The recovery of business of Hospital shop will inevitably bring negative impact to our shops in the community. During the period, "MentalCare Connect" successfully secured the retail operation in several re-tendering exercise with overcoming numerous hurdles. This included Convenience Store and Rehab Shop in Tuen Mun Hospital, Caritas Medical Centre, Pamela Youde Nethersole Eastern Hospital and Princess Margaret Hospital. On the other hand, "Cheers Gallery “at Causeway Bay was closed to the below-par business performance.
Coop Shop Business/Cheers Coop
The business of HA Coop shop still faced tough challenge in business after the epidemic. Its turnover was far lower than the period before the epidemic and social movement. "Cheers Coop" situated at Immigration Tower was retrieved by the Government for its purpose after the 3-year operation. "Cheers Coop" located at Hennessy Road was closed due to poor business performance.
Fortunately, the Company secured the retail operations at the Departure Waiting Hall of Hong Kong Macau Ferry Terminal through "Socially Caring Leasing Arrangements" and the shop opened in September 2023. A number of vacancy was created for the unemployed staff.
7-Eleven x Mindset x MentalCare
7-Eleven at Tseung Kwan O Hospital has been operating for more than one year and witnessed the success of tripartite cooperation in supporting the people in recovery for sustaining employment. The business performance was satisfactory as well. There was consensus among the parties to open one to two 7-Eleven and hiring more people in recovery.
Future
Despite of the economic turmoil and difficult marketing situation in the territory, the Company can still perform satisfactorily in the market. This was much due to the effort of our staff in different tiers and loyal customers. In the difficult year of 2023-2024, the Company could still record profit. Looking forward to Years 2024-2025, tough challenges are still lied ahead for retail and catering businesses. MentalCare Connect is needed to adjust its business strategies and make corresponding adjustment. This includes bidding for new project in hospitals, request for rental reduction for shops in the community, develop our own brand and improve POS system to boost up the operational efficiency etc. All these facilitate the Company's sustainable development in future. I thank my colleagues for their courage in facing the market challenges and make proactive changes. Last but not least, I am greatly indebted to the Board of Directors for their guidance and unfailing support.
