About Us
Dr. Benjamin Lai
Chairman of Board of Directors,
MentalCare Connect Co Ltd
I am delighted to present to you the twenty first annual report of MentalCare Connect Company Limited after the
three year long testing period of COVID pandemic. I hope that the pandemic is gradually subside and our daily life can imminently get back on track.
The global and local economic situations have been confronted with uncertain time amid the rapid increase in interest rates, turbulence in the financial market and regional warfare on top of the unresolved trade war between Mainland China and the United States. In addition, a change of pattern of consumer behavior by people in Hong Kong and the reduction of high end tourists have directly affected the local retail industry. The Company has its fair share of challenges to manage before the projected re-expansion of retail business in Hong Kong in latter part of 2023.
Thanks to the continual financial support by the Government and the dedication and the 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. To meet the double bottom lines of a social enterprise, the business turnover of the Company is $171 million Hong Kong dollars with a net profit after tax of $3,054,864.
At the end of the financial year of 31 March 2023, the number of employees is 221, accounting over 70% of the employees being from the disadvantaged group. The number of trainees gaining experience in the Company in the year is 143. As of 31 March 2023, there are 35 shops and social enterprise projects under the Company, including two new contracts in the past one year. While the Company will maintain its commitment to the provision of business outlets and services to patients, relatives, staff and customers inside the hospitals, it is understood that the Company will look for continuing relationship with them beyond the hospital. MentalCare Connect will also look for suitable opportunities in expanding its shops outside of the hospitals. It will continue the joint efforts with other social enterprises in the promotion of social responsibilities and support of the disadvantaged persons.
Thanks to the support of MINDSET. "MentalCare Connect" has the opportunity to manage the staff in running a shop under 7-Eleven with the input of social worker support. This can facilitate the adjustment of the disabled persons in the work environment during the course of their rehabilitation. With accumulating experience such collaborative efforts should become an exemplary model for an integrative approach by a corporation and a social enterprise in the facilitation of the rehabilitation of the people in recovery.
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 MentalCare Connect. 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
With the 20th anniversary commemorative event comes to an end which symbolises "MentalCare Connect" entering into another 20 years. Starting a business is difficult, but sustaining it on is even harder. The sustainability of an enterprise relies on continuous development and succession. As a social enterprise, the inheritance of the five mottos underneath is vital to "MentalCare Connect":
"Original Intent":
Creating employment opportunities for people in recovery and disadvantaged group of people.
"Ambitious":
Achieving double bottom lines (Social and Financial Returns) of social enterprise through scaling up.
"Cautious":
Avoiding over expansion and carefully managing financial risks.
"Focus":
Focusing on the Company strengths and engaging in the areas of expertise.
"Concentric":
Strengthening of the team unity and collaborating with enterprises or social enterprises sharing the same value and further maximize social impact.
Stepping into "MentalCare Connect"'s 21st year, we are delighted to collaborate with the enterprises sharing the same value and subsequently launching a new social enterprise operation model. Through the partnership with MINDSET under Jardines and 7-Eleven, the first "Friendchised" convenience store was established. It carries the value creating job opportunities for more people in recovery. We look forward to joining the collaborative efforts in creating greater social impact and opportunities for the social enterprise development.
Financial Performance
For the financial year 2022-2023, the total revenue of "MentalCare Connect” was HK$171,203,906, a decline of 15.6% as comparing with the previous year. "Enhancing Employment of People with Disabilities through Small Enterprise" Project and the "Enhancing Self-Reliance Through District Partnership" Programme funded a total of HK$2,549,649 serving as the grant for various social enterprise projects and accounting for approximately 1.5% of the overall income. The Company's profit after tax was HK$3,054,864, the drop in revenue was primarily due to the implementation of Emergency Response Level in public hospitals during the COVID-19 pandemic, resulting in the decrease of sales from over ten stores located in hospitals. Moreover, the loss of key clients purchasing anti-epidemic supplies and cash vouchers further contributed to the significant reduction in annual sales. Fortunately, the Government's "Employment Support Scheme" and "Consumption Voucher Scheme", along with rental reductions for stores under government and Hospital Authority, helped the Company turn losses into profits.
Core Mission Implementation
As of March 2022, "MentalCare Connect" operated a total of 35 social enterprises projects and a total of 221 employees were hired, 158 of them were disadvantaged group of people (144 were disabled person), accounting for 71% of the total workforce. 143 cases were referred from various organizations to "MentalCare Connect" and its shops for training. In order to strengthen the counselling of those employees with disabilities who have left the Supported Employment Service, "MentalCare Connect" started employing the counselling services from its Mother Organisation, The Mental Health Association of Hong Kong in September 2022. The service has been implemented for six months with positive impact.
Business Development
Rehab Shop/Convenience Store Business:
Due to the long-term Emergency Response Level implemented in the hospitals, including the limitation of visiting hours and number of visitors, as well as limited provision of non-emergency medical services, the footfall in hospitals has significantly reduced. With the easing of travel restrictions and the lifting of mask wearing requirement in Hong Kong, the revenue of "Cheers Gallery" in hospitals has significantly increased. Therefore, we need to further increase the variety of products and implement more attractive sales promotions to maintain customer loyalty and expand our customer base. Last year, "MentalCare Connect" opened two "Cheers Gallery" in Shatin Hospital and Grantham Hospital, and the overall business has been gradually on track. We will also continue to explore suitable locations in the community for opening new stores.
Coop Shop Business/Cheers Coop:
Similarly, the revenue of the HA Coop Shop located in the Hospital Authority Building was decrease due to the implementation of Emergency Response Level. The significant reduction in footfall was due to the cut-down of training activities and conference in the headquarter. The revenue was thus declined. In addition, the direct sales of anti-epidemic supplies and cash coupon have also significantly dropped, as compared to the financial year of 2021-2022, primarily due to the loss of some key customers.
Catering Business:
With the gradual easing of the epidemic, the number of visits and follow-up patients has steadily increase, leading to a remarkable rebound in revenue. We believe that there is room for revenue growth in the coming year. The Company will continue to search for suitable locations to establish new catering shop.
E-commerce Business:
The buying habits of the public have undeniably undergone drastic changes during the social movements and the epidemic period, resulting in double-digit growth in the Company's e-commerce business each year. However, as the epidemic gradually subsides, shoppers have started to return to physical stores, especially for products that require personal experience or professional advice. As a result, the revenue of our e-commerce business has declined during the period. In the future, the Company will adjust its developmental strategy for e-commerce and allocate more resources to improve the online shopping system. By integrating online and offline channels, we aim to enhance the shopping experience and customer satisfaction.
Future
The fifth wave of the COVID-19 outbreak starting in January 2022 has been the longest and most challenging period for healthcare and the economy in Hong Kong since the pandemic began. However, with the implementation of government measures such as "Employment Support Scheme" and the efforts of employees at all levels, it is encouraging for "MentalCare Connect" to see its continuous significant growth in the number of stores and disabled employees in the financial year of 2022-2023. After more than three years of epidemic, the retail market has undergone tremendous changes. The Company needs to maintain its profitability as well as to review and strengthen the internal systems to satisfy the needs of further expansion. We would like to express our gratitude to the Government and the Hospital Authority for their support in terms of financial assistance and rental concessions during the epidemic. We also need to thank our suppliers for providing various quality products and to our employees for their contributions to the Company's sustainable development. Last but not least, we are indebted to the Board of Directors for their trust and support to the "MentalCare Connect" and its employees.
