Clinic manager and health-related projects investor Town Health International plans to open five to 10 more clinics this year, despite poor market conditions.
Cho Kwai-chee, chairman of the Growth Enterprise Market-listed company, said the firm planned to expand despite sharply lower profit margins last year after it opened 10 clinics.
'Demand for clinics is still there despite the economic downturn. We have strategies on how to make the new clinics profitable but I can't tell you what they are,' Mr Cho said.
The company saw its operating profit margin fall to 12.36 per cent in the nine months to December 31, from 37.91 per cent in the same period a year earlier.
The decline was largely due to a 41.19 per cent rise in medical salaries to HK$34.57 million, while turnover rose only 8.56 per cent to HK$73.70 million.
Net profit fell 82.56 per cent year on year to HK$3.68 million, due to the amortisation of goodwill stemming from its investments, higher finance costs and administration costs from non-clinic-related business.
Mr Cho said the slight rise in turnover was due to lower spending by customers per clinic visit, as they were less inclined to spend on non-urgent medical services.
