Financial Performance - Revenue increased by 4.2% from HKD 1,494.720 million to HKD 1,558.003 million[3] - Profit attributable to equity shareholders decreased from HKD 42.826 million to HKD 36.317 million[7] - Basic earnings per share decreased from 33.06 HK cents to 28.03 HK cents[5] - Operating profit for the period was HKD 59.461 million, down from HKD 63.542 million[5] - Profit before tax for the six months ended September 30, 2023, was HKD 43,409,000, compared to HKD 47,338,000 in the previous year, indicating a decrease of 8.5%[26] - The group reported a segment profit of HKD 55,430,000 for the six months ended September 30, 2023, down from HKD 67,120,000 in the same period last year, a decline of 17.4%[26] - Other income for the six months ended September 30, 2023, was HKD 18,284,000, compared to HKD 21,684,000 in the previous year, a decrease of 15.5%[28] - The group recognized a loss of HKD 1,030,000 from the valuation of investment properties for the six months ended September 30, 2023[26] - The group’s employee costs for the six months ended September 30, 2023, were HKD 540,343,000, an increase from HKD 480,734,000 in the previous year, reflecting a rise of 12.4%[30] - The group recognized impairment losses of HKD 6,312,000 for right-of-use assets and HKD 4,679,000 for other properties, machinery, and equipment during the reporting period[40] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, amounted to HKD 686.626 million, up from HKD 646.758 million as of March 31, 2023[13] - The group reported a net cash inflow from operating activities of HKD 311.722 million, down from HKD 414.871 million in the previous year[13] - The current ratio decreased to 0.9 from 1.0 as of March 31, 2023, indicating a tighter liquidity position[66] - The net cash generated from operating activities during the reporting period was HKD 311.7 million, down from HKD 414.9 million in 2022[67] - The group had no bank loans as of September 30, 2023, maintaining a capital debt ratio of 0.0%[67] Assets and Liabilities - Total current assets increased to HKD 846.825 million from HKD 792.447 million[12] - Total liabilities increased from HKD 817.224 million to HKD 909.062 million[12] - Total assets as of September 30, 2023, amounted to HKD 2.3397 billion, an increase from HKD 2.3025 billion as of March 31, 2023[66] - Accounts receivable (net of loss provisions) increased to HKD 16,373,000 from HKD 9,663,000 as of March 31, 2023[42] - The total accounts payable and accrued expenses increased to HKD 394,512,000 from HKD 376,664,000 as of March 31, 2023[43] Dividends and Shareholder Returns - The company declared an interim dividend of 11.0 HK cents per share[3] - The interim dividend declared per share was HKD 0.11, down from HKD 0.18 in 2022, resulting in a total of HKD 14,251,000 compared to HKD 23,320,000 in the previous year[35] - The interim dividend declared for the six months ended September 30, 2023, is HKD 0.11 per share, representing approximately 39% of the profit attributable to equity shareholders for the period[76] Business Operations and Strategy - The group successfully launched the "GYM Chicken Breast Set" targeting health-conscious customers, leading to a significant increase in sales and brand awareness[49] - The group implemented comprehensive cost management strategies, resulting in a notable reduction in food costs due to global sourcing and optimization measures[51] - The group introduced the "Croissant Waffle" afternoon tea set, which received positive feedback and increased interest among target customers[50] - Same-store sales growth in the Greater Bay Area achieved double-digit growth, with two new stores opened[60] - The company plans to focus on improving profit margins and expanding its target customer base in the short term[63] Market and Customer Engagement - Revenue from external customers in Hong Kong restaurants was HKD 1,460,769,000, up from HKD 1,417,757,000, reflecting a growth of 3.0%[25] - The number of members using the online application exceeded 660,000, contributing to customer retention and acquisition[56] - The company reduced food waste by approximately 93 tons during the period, receiving extensive media coverage valued at over HKD 4.7 million[57] - The number of restaurants in Hong Kong remained at 144, with 10 specialty restaurants maintained[59] Taxation - The estimated effective tax rate for the six months ended September 30, 2023, remained at 16.5%, consistent with the previous year[33] - The group reported a tax loss in mainland China for the six months ended September 30, 2023, resulting in no corporate income tax provision for that period[34] Employee and Compensation - The total number of employees remained stable at approximately 5,600 as of September 30, 2023[74] - The group has committed to providing competitive compensation and benefits to eligible employees based on performance and other factors[74]

Financial Performance - The annual revenue was HK$3,024.2 million, an increase of 4.9% from HK$2,881.9 million in 2022[30]. - Basic earnings per share increased by 5.3% to HK34.64 cents, compared to HK32.91 cents in 2022[32]. - Profit for the year rose by 5.3% to HK$44.9 million, excluding government subsidies, profit was HK$3.3 million, a turnaround from a loss of HK$16.3 million in the previous year[54]. - Profit attributable to equity shareholders rose by 5.3% to HK$44.9 million (2022: HK$42.6 million)[68]. - Excluding government subsidies, the profit for the year was HK$3.3 million, a turnaround from a loss in the previous financial year[68]. - The gross profit margin increased to 8.5% (2022: 7.7%)[68]. - Return on average equity increased to 6.4% in 2023 from 5.7% in 2022[192]. - Total assets as of March 31, 2023, were HK$2.3025 billion, a decrease from HK$2.3373 billion in 2022[182]. - The Group's current liabilities net amount was HK$24.8 million, an increase from HK$12.8 million in 2022[182]. Dividends - A final dividend of HK40.0 cents per share and a special final dividend of HK5.0 cents per share were proposed, totaling HK63.0 cents per share for the year with a payout ratio of approximately 182%[32]. - The total dividend for the year ended March 31, 2023, amounts to HK63.0 cents per share, representing a total distribution of approximately 182% of the Group's profit for the year[69]. - The payable date for the final and special dividends is on or before October 5, 2023[57]. Financial Position - The Group maintained a healthy financial position with cash and cash equivalents of HK$646.8 million, up from HK$557.1 million in 2022[55]. - The Group had no bank borrowings and a nil gearing ratio as of March 31, 2023[32]. - The Group's financing costs for the reporting period were HKD 31.7 million, a slight decrease from HKD 32.4 million in the previous year[130]. - The Group's financial position remains strong with stable cash flow and no debt, mitigating interest rate risks[116]. - As of March 31, 2023, Fairwood's cash and cash equivalents amounted to HK$646.8 million, a 16.1% increase from HK$557.1 million in the previous year[159]. - The company maintained a debt-free status with a gearing ratio of nil, providing it with the ability to seize investment opportunities[162]. Store Operations and Growth - The Group opened 12 new stores during the year, with 8 in Hong Kong and 4 in Mainland China, while closing 10 underperforming stores[111]. - Fairwood's Same Store Sales Growth (SSSG) improved year on year at approximately 5%[109]. - Same-store sales growth in Hong Kong increased by approximately 5%, with takeaway sales accounting for about 36% of total sales, higher than pre-pandemic levels[138]. - The Mainland China operations experienced a negative same-store sales growth of approximately 7% due to COVID-19 restrictions, but the company continues to open new stores[141][143]. Community and Social Responsibility - Fairwood launched a meal donation initiative that converted 23,438 customer actions into meals for those in need within four months[118]. - Fairwood's community initiatives resulted in the donation of 23,438 meal boxes through its "走塑•齊齊捐" program, contributing to social responsibility efforts[147]. Employee and Compensation - Employee costs for the year were approximately HK$1.0205 billion, up from HK$1.0045 billion in 2022, after accounting for government subsidies[169]. - As of March 31, 2023, the total number of employees in the Group was approximately 5,600, a slight decrease from 5,700 in 2022[200]. - Staff costs for the year amounted to approximately HK$1,020.5 million, compared to HK$1,004.5 million in 2022, reflecting an increase in employee compensation[200]. - Employee remuneration is aligned with job nature, qualifications, and experience, with annual reviews based on performance appraisals[200]. - The Company continues to provide competitive compensation and benefits to eligible employees based on performance[198]. Digitalization and Marketing - The introduction of the "Fairwood APP" attracted over 500,000 registered members by year-end, targeting younger customers[76]. - The launch of the Group's 50th Anniversary campaign significantly boosted customer engagement and sales, achieving an estimated 5.2 million views on social media[73]. - The Group's digitalization initiatives have enhanced efficiency and improved customer experience across its restaurants[105]. - Fairwood's new store design aims to attract younger customers with modern aesthetics and digital menus[104].

Financial Performance - The annual profit for the year was HKD 44.9 million, an increase of 5.3% compared to last year (HKD 42.6 million) [2] - Revenue for the year was HKD 3.024 billion, representing a growth of 4.9% from HKD 2.882 billion in the previous year [2] - Basic earnings per share increased to HKD 0.3464, up 5.3% from HKD 0.3291 in the previous year [2] - The group reported a pre-tax profit of HKD 51.664 million for the year ending March 31, 2023, compared to HKD 47.804 million in 2022, representing an increase of 5.8% [58] - Profit attributable to equity shareholders rose by 5.3% to HKD 44.9 million (2022: HKD 42.6 million) [94] - The group's comprehensive pre-tax profit for 2023 was HKD 51,664,000, an increase from HKD 47,804,000 in 2022, indicating a positive trend in profitability [83] Dividends - The proposed final dividend is HKD 0.40 per share, with a special final dividend of HKD 0.05 per share, resulting in a total annual dividend of HKD 0.63 per share and a payout ratio of approximately 182% [2] - The board proposed a final dividend of HKD 0.40 per share and a special final dividend of HKD 0.05 per share, totaling an annual dividend of HKD 0.63 per share, which represents approximately 182% of the group's annual profit [24] - The company declared an interim dividend of HKD 0.18 per share and a proposed final dividend of HKD 0.40 per share [90] Financial Position - The group maintained a strong financial position with cash and cash equivalents amounting to HKD 646.8 million as of March 31, 2023, up from HKD 557.1 million in the previous year [2] - The company maintains a strong financial position with no borrowings, thus not affected by interest rate risks [30] - The group has no bank loans and a debt ratio of zero as of March 31, 2023 [2] - The maximum debt obligation under guarantees for bank standby credits was HKD 88.9 million, with no significant risk of claims anticipated [22] - The group's total current assets as of March 31, 2023, amounted to HKD 792,447,000, an increase from HKD 769,484,000 in 2022, while total current liabilities rose to HKD 817,224,000 from HKD 782,322,000 [74] Store Operations - The group opened 7 new stores and closed 5 stores, resulting in a total of 147 fast-food outlets in Hong Kong by the end of the year [44] - The company opened 12 new stores during the year, with 8 located in Hong Kong and 4 in mainland China, while closing 10 underperforming stores [121] - As of March 31, 2023, the company operates a total of 179 stores, including 157 in Hong Kong and 22 in mainland China [121] Cost Management - The group faced significant challenges due to rising food costs and labor shortages, prompting cost-reduction measures such as sourcing directly from reliable suppliers [119] - The group has optimized packaging, particularly for takeaway items, to reduce costs and improve efficiency [119] - The group has negotiated more favorable leasing terms with landlords to alleviate operational pressures [119] - The company has implemented detailed cost-saving and productivity improvement strategies that have been effective over the years and will continue to be enforced [31] Customer Engagement - The company launched the "Dai Hoi Hoi APP" to attract younger customers, with over 500,000 members registered by year-end [96] - The company held a 50th anniversary celebration to promote post-pandemic business recovery, achieving 5.2 million total views on social media [95] - The group experienced a strong sales boost from the reintroduction of seven nostalgic menu items during its anniversary celebration [118] - Same-store sales growth increased by approximately 5% year-on-year, with a stable growth in customer per capita spending [120] - Takeaway sales accounted for about 36% of total sales, higher than pre-pandemic levels, indicating its continued importance in the business [120] Employee Management - The group launched a 50th-anniversary employee appreciation campaign, including various activities to improve employee retention and morale [97] - The group implemented digital training programs for employees to enhance skills and career opportunities, addressing high employee turnover in the restaurant industry [97] Challenges and Outlook - The company is optimistic about the performance of its mainland business in the coming months, despite challenges in refining its business model [31] - The company anticipates that food costs and labor-related pressures will not decrease in the near future [31] - The group's same-store sales in mainland China decreased by 7% due to pandemic-related restrictions, significantly impacting business operations [98] - The group continues to open new stores in mainland China, with a focus on smaller locations and a higher proportion of takeaway sales, aiming to enhance profitability despite lower sales intensity [98] Asset Management - The group recorded a net impairment loss on property, plant, and equipment of HKD 14,033,000 in 2023, down from HKD 18,960,000 in 2022, indicating an improvement in asset management [83] - The group reported a net loss from investment properties of HKD 4,840,000 in 2023, compared to a loss of HKD 1,730,000 in 2022, representing a significant increase in losses [83] - Other income for the group in 2023 was HKD 41,514,000, a decrease from HKD 76,263,000 in 2022, showing a decline of approximately 45.5% [85] Capital Expenditure - Capital expenditure for the year was approximately HKD 104.7 million, an increase from HKD 74.6 million in the previous year, attributed to new store openings and renovations [37] - Financing costs recorded during the reporting period were HKD 31.7 million, a slight decrease from HKD 32.4 million in the previous year [35] - Depreciation expenses for other properties, machinery, and equipment decreased by HKD 1.8 million to HKD 89.1 million due to reduced renovation works [34]

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 1,494,720,000, a slight decrease of 0.1% compared to HKD 1,498,604,000 for the same period in 2021[18] - Gross profit for the period was HKD 137,216,000, down 12.8% from HKD 157,282,000 in the previous year[18] - Operating profit decreased to HKD 63,542,000, representing a decline of 22.5% from HKD 81,950,000 in the prior year[18] - Profit attributable to equity shareholders for the period was HKD 42,826,000, down 18.4% from HKD 52,493,000 in the same period last year[18] - Basic and diluted earnings per share were both 33.06 cents, compared to 40.52 cents in the previous year[19] - Total comprehensive income for the period was HKD 37,135,000, a decrease of 29.4% from HKD 52,695,000 in the prior year[21] - The group reported a pre-tax profit of HKD 47,338,000 for the six months ended September 30, 2022, down from HKD 65,906,000 in the previous year[40] - The group recorded a segment profit of HKD 68,663,000 from the Hong Kong restaurant segment, down from HKD 78,653,000 in the previous year[49] - The group’s revenue for the period ended September 30, 2022, was HKD 1.4947 billion, a slight decrease from HKD 1.4986 billion in the previous year[98] - Gross profit margin decreased to 9.2% compared to 10.5% in the previous year[98] - Profit attributable to equity shareholders decreased by 18.4% to HKD 42.8 million, down from HKD 52.5 million in the previous year[98] Assets and Liabilities - Non-current assets as of September 30, 2022, totaled HKD 1,490,364,000, down from HKD 1,567,784,000 as of March 31, 2022[23] - Current assets amounted to HKD 865,544,000, an increase from HKD 769,484,000 as of March 31, 2022[23] - Total liabilities were HKD 1,596,978,000, compared to HKD 1,562,032,000 as of March 31, 2022[25] - Total equity attributable to shareholders was HKD 699,930,000, down from HKD 714,236,000 as of March 31, 2022[27] - The total receivables as of September 30, 2022, amounted to 115,233 thousand HKD, a decrease from 144,664 thousand HKD as of March 31, 2022[75] - Accounts receivable decreased from HKD 17,288,000 as of March 31, 2022, to HKD 12,900,000 as of September 30, 2022, representing a decline of approximately 25.5%[76] - The group reported a total of HKD 413,426,000 in payables as of September 30, 2022, compared to HKD 344,428,000 as of March 31, 2022, indicating a rise of approximately 20.1%[79] Cash Flow - Cash generated from operating activities was HKD 414,871,000, an increase from HKD 358,089,000 in the previous year, reflecting a growth of approximately 15.8%[36] - The company incurred a net cash outflow from investing activities of HKD 77,949,000, compared to HKD 49,105,000 in the previous year, indicating an increase in investment expenditures[36] - The net cash outflow from financing activities was HKD 225,599,000, slightly improved from HKD 231,507,000 in the previous year[37] - As of September 30, 2022, cash and cash equivalents amounted to HKD 667,200,000, down from HKD 693,304,000 at the same time last year[37] - The group’s cash and cash equivalents amounted to HKD 697,959,000 as of September 30, 2022, compared to HKD 557,102,000 as of March 31, 2022[40] - Total cash and cash equivalents rose from HKD 557,102,000 to HKD 697,959,000, marking an increase of approximately 25.3%[78] Dividends and Shareholder Returns - The company declared dividends amounting to HKD 77,731,000 for the previous year, reflecting its commitment to returning value to shareholders[30] - The interim dividend declared was 0.18 HKD per share, totaling 23,320 thousand HKD, a decrease from 0.25 HKD per share and 32,388 thousand HKD in the previous year[63] - The interim dividend declared for the six months ended September 30, 2022, is HKD 0.18 per share, down from HKD 0.25 per share in the previous year, representing approximately 54% of the group's profit attributable to equity shareholders for the period[142] Operational Developments - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[34] - The group opened nine new stores during the review period, including six in Hong Kong and three in mainland China[109] - The group has implemented various cost management measures to address rising food and labor costs, including seeking new suppliers and optimizing packaging[105] - New value meal options were introduced, such as breakfast and afternoon tea sets priced at HKD 27, and a dinner takeaway set priced at HKD 99[103] - The group is focusing on enhancing the attractiveness of dinner service offerings, particularly in a challenging economic environment[102] - The group continues to expand its breakfast and afternoon tea selections with new baked goods[102] - The group anticipates further growth in "Click-and-Collect" sales following the launch of a new application later in the year[103] Management and Governance - The company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended September 30, 2022[145] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial information and interim results for the six months ended September 30, 2022[148] - The major shareholders as of September 30, 2022, include Neblett with 37.65% and HSBC International Trustee Limited with 42.79%[139] - The company has not granted any stock options under the 2021 Stock Option Plan since its adoption[132] - The company has no other arrangements that allow directors or executives to acquire shares in the company or its subsidiaries as of September 30, 2022[137] Market Outlook - The group is preparing for market opportunities in mainland China following the easing of pandemic restrictions, with a focus on operational efficiency[112] - The group is positioned for recovery despite ongoing economic challenges, indicating a stable end-of-period condition[112] - The group anticipates that the expected cash flows from operations will further strengthen its financial position over the next twelve months[40]

Financial Performance - Annual revenue increased by 8.9% to HK$2,881.9 million (2021: HK$2,646.5 million) [22] - Profit attributable to equity shareholders dropped by 72.2% to HK$42.6 million (2021: HK$153.6 million) [21] - Basic earnings per share decreased by 72.2% to HK32.91 cents (2021: HK118.59 cents) [23] - Gross profit margin decreased to 7.7%, compared to 12.4% in the previous year [43] - The Group's return on average equity fell to 5.7% in 2022 from 20.5% in 2021, indicating a significant decline in profitability [111] Financial Position - The group maintained a healthy financial position with cash and cash equivalents of HK$557.1 million as of March 31, 2022 [22] - The group had no bank borrowings and a nil gearing ratio as of March 31, 2022 [23] - Total assets as of March 31, 2022, were HKD 2.3373 billion, down from HKD 2.4480 billion in 2021 [99] - Current liabilities net amount was HKD 12.8 million, an increase from HKD 9.6 million in 2021 [99] - Cash and cash equivalents decreased by 10.5% to HKD 557.1 million from HKD 622.1 million in 2021 [99] Dividends - Proposed final dividend of HK40.0 cents per share, totaling HK65.0 cents for the year with a payout ratio of approximately 197% [23] - The Board recommended a final dividend of HK40.0 cents per share, down from HK60.0 cents in 2021, resulting in a total dividend of HK65.0 cents for the year [44] - The Company’s dividend proposal for the final dividend amounts to HK$51,821,000, down from HK$77,720,000 in the previous year [190] Impact of COVID-19 - The company faced unprecedented challenges in the last quarter due to the "fifth wave" of COVID-19 [21] - The group reported a significant decline in profit due to the impact of the pandemic on the food and beverage sector [21] - The final quarter of the year was severely impacted by the fifth wave of the pandemic, affecting overall performance despite satisfactory results in the earlier quarters [51] - Fairwood's Same Store Sales Growth (SSSG) fell from +17% in the first half to around +10% for the full 2021-22 year due to the impact of the fifth wave of COVID-19 [71] Operational Adjustments - Takeaway sales grew significantly due to restrictions on in-store dining, with a successful HK$99 for three dishes campaign launched in January 2022 [58] - The "Click-and-Collect" online ordering platform saw steady growth, with over 260,000 members recruited for the loyalty program [60] - The Group adapted to COVID-19 restrictions by launching new meal sets and improving product quality to attract younger diners [54] - The Group's focus on takeaway sales and digital enhancements helped counteract the negative impacts of pandemic measures on business performance [72] Cost Management - The Group faced steady rises in food and labor costs, prompting initiatives to optimize menus and enhance productivity in the central food processing plant [64] - Employee costs rose to approximately HK$1,004.5 million in 2022 from HK$734.3 million in 2021, an increase of 36.7% primarily due to government subsidies [127] - Food and staff costs are expected to rise further, but improvements in the rental market may help offset these increases [90] Expansion and Growth - The Group opened 11 new stores during the year, with 6 in Hong Kong and 5 in Mainland China, while closing 6 underperforming stores [77] - The Group's expansion plans in Mainland China continued, with 5 new stores opened despite the closure of one, resulting in a total of 20 stores [76] - The group plans to establish a profitable network of 30 stores in Mainland China by the end of 2022 [91] - The store model in Mainland China is smaller and allows for quicker openings at lower costs compared to Hong Kong [91] Corporate Governance - The company emphasizes corporate governance with a well-structured board comprising various committees including Audit and Remuneration Committees [144] - The management team has extensive experience across different sectors, enhancing the company's strategic direction and operational efficiency [139] - The board includes members with significant academic qualifications, ensuring informed decision-making and strategic oversight [147] Community Engagement - The Fairwood Care For Seniors Card membership increased to approximately 323,000, reflecting the community engagement efforts [83] - The Group is committed to supporting environmental protection and complying with relevant regulations, with detailed information to be provided in the Environmental, Social and Governance Report [166] Leadership - Mr. Dennis Lo Hoi Yeung has been with the company since its listing in 1991 and has held various leadership roles, including Executive Chairman since January 2000 [133] - Mr. Lo Fai Shing Francis, appointed as CEO on April 1, 2020, has over four years of experience in the food and beverage industry prior to joining the company [134] - The company has maintained a stable leadership structure, with key executives having long tenures and deep industry knowledge [133][134]

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Revenue and Profit Performance - Revenue decreased by 12.7% to HK$2,646.5 million for the year, down from HK$3,030.2 million in 2020 due to the adverse effects of the COVID-19 pandemic on economic activities and restaurant patronage [9]. - Profit for the year increased by 152.4% to HK$153.6 million, compared to HK$60.9 million in 2020, primarily due to improved productivity, efficiency, and various subsidies from the Hong Kong Government [10]. - Basic earnings per share rose by 152.2% to HK$118.59 cents, up from HK$47.03 cents in 2020 [12]. - Profit attributable to equity shareholders rose by 152.4% to HK$153.6 million (2020: HK$60.9 million) [48]. - Basic earnings per share amounted to HK118.59 cents (2020: HK47.03 cents) [48]. Financial Position and Dividends - The Group maintained a healthy financial position with bank deposits, cash, and cash equivalents of HK$622.1 million as of March 31, 2021, with no bank borrowings and a nil gearing ratio [12]. - A proposed final dividend of HK$60.0 cents per share was announced, with a total dividend per share for the year of HK$90.0 cents and a payout ratio of approximately 76% [12]. - The total equity of the Group increased to HK$777.8 million from HK$720.8 million in 2020 [98]. - The total reserves available for distribution to equity shareholders as of 31 March 2021 amounted to HK$356,068,000, down from HK$459,419,000 in 2020 [162]. - The Company reported a final dividend of HK$60.0 cents per share for the year ended 31 March 2021, an increase from HK$50.0 cents in 2020 [159]. Impact of COVID-19 - The pandemic led to significant challenges in the restaurant industry, with a notable decline in dine-in patronage, but takeaway sales increased significantly [54]. - Same-store sales in Hong Kong decreased by approximately 15% due to the pandemic, while in Mainland China, the decline was about 27% in local currency [75][79]. - Various government subsidies helped stabilize the Group's performance despite the decline in sales [58]. - Fairwood expanded its takeaway sales and introduced a new "Click and Collect" platform to mitigate the drop in dine-in sales [75][77]. - The Group maintained a focus on health, hygiene, and safety for staff and customers throughout the pandemic [62]. Operational Developments - The "Click and Collect" online ordering system was rapidly adopted and contributed significantly to the Group's total sales [64]. - New menu items, including clay pot rice dishes and a Golden Cheesy Baked Rice series, were introduced to cater to changing consumer preferences during the pandemic [67]. - The company opened a total of 9 new stores during the year, including 5 in Hong Kong and 4 in Mainland China, bringing the total to 156 stores in Hong Kong and 16 in Mainland China [79][80]. - The company completed the localization of its Mainland China management team to enhance local expertise for better decision-making regarding new store locations [79]. - Plans are in place to expand the menu options to appeal to a wider range of age groups, with increased use of technology for menu selection and ordering [85]. Financial Management and Cost Control - The Group maintained a nil gearing ratio as there were no bank loans as of March 31, 2021 [99]. - The average return on equity rose to 20.5% in 2021, up from 8.1% in 2020 [102]. - The Group's net current liabilities improved to HK$9.6 million from HK$247.0 million in 2020, with a current ratio of 1.0 compared to 0.7 in the previous year [96]. - The company remains committed to cost controls and prudent financial management as part of its strategy moving forward [85]. - Capital expenditures for the year were approximately HK$93.5 million, down from HK$143.6 million in 2020 due to fewer new store openings and renovations [103]. Governance and Compliance - The company is committed to supporting environmental protection and complying with relevant regulations [146]. - The board of directors includes members with extensive experience in finance, management, and human resources [140][142]. - The company has a strong governance structure with various committees overseeing audit and remuneration [138][144]. - The Board was not aware of any non-compliance with applicable laws and regulations that could significantly impact the Group as of the report date [157]. - The Group's operating principles regarding environmental, social, and governance matters will be discussed in the upcoming report [149]. Employee Management - The Group continues to offer competitive remuneration packages and has committed to training programs to enhance employee skills and competencies [122]. - The Group's employee costs are reviewed annually based on performance, with a focus on maintaining competitive compensation [121]. - The Group's total employee count as of March 31, 2021, was approximately 5,600, down from 5,800 in 2020, with staff costs amounting to HK$734.3 million, a decrease of 27.9% from HK$1,019.9 million in 2020 [121]. - Directors and employees of the Group had interests in options to subscribe for shares of the Company granted for HK$1 consideration under the Share Option Scheme [197]. - The Company aims to attract and retain quality personnel through the Share Option Scheme, aligning the interests of option holders with shareholders [196].

Financial Performance - The total revenue for the six months ended September 30, 2020, was HKD 1,286,985, a decrease of 16.4% compared to HKD 1,538,972 for the same period in 2019[19] - The gross profit for the period was HKD 171,281, down from HKD 173,149, reflecting a gross margin of approximately 13.3%[19] - The net profit attributable to equity shareholders for the period was HKD 64,951, an increase of 13.5% from HKD 57,262 in the previous year[20] - The basic and diluted earnings per share were both 50.14 cents, unchanged from the previous period[19] - The total comprehensive income for the period was HKD 67,234, compared to HKD 55,066 in the same period last year, representing a growth of 22.5%[20] - The group's pre-tax profit for the six months ended September 30, 2020, was HKD 54,378,000, down from HKD 70,644,000 in the same period of 2019, representing a decrease of approximately 23%[44][58] - Revenue from food and beverage sales for the six months ended September 30, 2020, was HKD 1,283,959,000, compared to HKD 1,535,143,000 in 2019, indicating a decline of about 16.4%[60] - The group reported a profit from external customers of HKD 1,235,507,000 for the six months ended September 30, 2020, down from HKD 1,468,640,000 in 2019, a decrease of approximately 15.8%[55] Assets and Liabilities - The total assets as of September 30, 2020, were HKD 1,802,298, a decrease from HKD 2,040,298 as of March 31, 2020[23] - The total liabilities were HKD 1,078,268, resulting in a net asset value of HKD 724,030, slightly up from HKD 720,806[26] - The group's total current assets as of September 30, 2020, amounted to HKD 766,146,000, an increase from HKD 668,620,000 as of March 31, 2020[44] - The group's total liabilities as of September 30, 2020, were HKD 914,691,000, compared to HKD 915,652,000 as of March 31, 2020, showing a slight decrease[44] Cash Flow - The company reported a cash and cash equivalents balance of HKD 562,021, an increase from HKD 511,047 in the previous period[23] - The net cash generated from operating activities was HKD 342,947,000, slightly up from HKD 342,903,000 in the prior year[38] - The company incurred a net cash outflow from investing activities of HKD 73,026,000, compared to HKD 47,189,000 in the previous year[38] - The net cash used in financing activities was HKD 229,221,000, an increase from HKD 178,515,000 in the prior year[38] - Cash and cash equivalents as of September 30, 2020, were HKD 552,021,000, down from HKD 636,263,000 at the end of the previous period[38] Dividends and Share Capital - The company declared dividends amounting to HKD 64,767,000 based on the previous year's approved dividend[35] - The interim dividend declared was HKD 30.0 cents per share, up from HKD 23.0 cents per share in the previous year, marking a 30.4% increase[74] - The company issued shares under the share option scheme, resulting in an increase in share capital by HKD 757,000[35] Operational Strategies - The company plans to continue expanding its market presence and invest in new product development to drive future growth[18] - The management highlighted the importance of cost control measures implemented during the period to mitigate the impact of the pandemic on operations[18] - The company has implemented various cost control measures, including negotiating better lease terms and reducing advertising expenses[130] - The company has enhanced its online ordering platform "click-and-collect" to provide a contactless takeaway service[128] - The company remains committed to its core values and social responsibilities, ensuring no layoffs occurred during the pandemic[130] Impact of COVID-19 - The impact of the COVID-19 pandemic has introduced greater uncertainty into the company's operating environment, affecting its financial condition[116] - The company has been closely monitoring the pandemic's impact on its business and has implemented emergency measures[117] - During the review period, takeaway revenue accounted for approximately 40% of total sales, reflecting a shift in consumer behavior due to the pandemic[128] Corporate Governance - The company has complied with the Corporate Governance Code as per the Listing Rules during the six months ending September 30, 2020[169] - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited financial information and interim results for the six months ending September 30, 2020[172] - All directors confirmed compliance with the standard code for securities trading during the six months ending September 30, 2020[173] Share Options - As of September 30, 2020, the company had a total of 1,395,500 unexercised share options under the stock option plan[159] - The company issued 1,040,000 share options at an exercise price of HKD 17.90 per share, with the options exercisable from April 1, 2021, to March 31, 2027[104] - The company's stock options are divided into five tranches with specific vesting dates, the last tranche vesting in April 2025[159]

Financial Performance - Revenue for the year was HK$3,030.2 million, an increase of 2.0% from HK$2,970.5 million in 2019[21] - Profit for the year dropped by 66.2% from HK$179.9 million to HK$60.9 million[22] - Basic earnings per share decreased by 66.4% to HK$47.03 cents, down from HK$140.00 cents in 2019[27] - The adoption of HKFRS 16 had a negative impact of HK$24.3 million on profit, resulting in an adjusted profit of approximately HK$85.2 million, a decrease of 52.7%[26] - The Group's net assets and profit attributable to equity shareholders showed a significant decline compared to previous years[35] - The Group's revenue trend over the past five years indicates fluctuations, with a peak in 2019[32] - Profit attributable to equity shareholders decreased by 66.2% to HK$60.9 million, down from HK$179.9 million in 2019[45] - Gross profit margin fell to 9.2%, down from 12.9% in the previous year[45] - The total equity of the Group decreased to HK$720.8 million from HK$777.7 million in 2019[104] Dividends - A final dividend of HK$50.0 cents per share was proposed, with a total dividend for the year of HK$73.0 cents and a payout ratio of approximately 155%[28] - The Board recommended a final dividend of HK$50.0 cents per share, down from HK$81.0 cents in 2019, resulting in a total annual dividend of HK$73.0 cents, compared to HK$118.0 cents in the previous year[46] - The proposed final dividend for the year ended March 31, 2020, is HKD 0.50 per share, compared to HKD 0.81 per share in 2019[180] - The Company’s Directors proposed the final dividend has not been recognized as a liability at the end of the reporting period[192] Impact of COVID-19 - The COVID-19 outbreak severely impacted the Hong Kong economy, adversely affecting the Group's revenue and store operations[23] - The Group's financial performance was negatively influenced by weakened customer sentiment and social distancing measures[24] - Fairwood's same-store sales growth rate recorded a negative 3% due to the impact of COVID-19 and related restrictions[70] - The Group launched the "Click and Collect" digital order platform at half of its outlets in Hong Kong to enhance operational efficiency and support social distancing measures during the COVID-19 outbreak[86] - Enhanced staff training focused on customer service and hygiene protocols in response to COVID-19 challenges[50] Store Operations and Expansion - The Group opened 16 new stores during the year, including 13 in Hong Kong and 3 in Mainland China, bringing the total to 160 stores in Hong Kong and 12 in Mainland China[80] - Fairwood plans to open around five new stores in Southern China in the coming year, focusing on smaller restaurants catering to delivery preferences[77] - Revenue in Mainland China declined significantly, resulting in a negative same-store sales growth rate of 9% in local currency during the last quarter[76] Product Development and Marketing - The Group launched new products, including Omnipork, a plant-based pork alternative, as part of its "Tasty and Green" series[54] - A "Weekly Surprises" campaign was introduced, offering diverse meal promotions to enhance customer value and satisfaction[56] - Specialty restaurants like ASAP and Taiwan Bowl performed well, achieving solid growth and positive customer feedback[75] - Fairwood has partnered with major food delivery service providers in Mainland China to boost sales amid changing consumer preferences[77] Community Engagement and Social Responsibility - The Group continues to engage with the community, distributing 49,000 "Happy Care for Seniors" cards to provide dining discounts and benefits[81] - The "Care for Seniors" card program saw an increase in card discounts to HK$6 off each order, with an additional 49,000 cards distributed in the community[84] - Charitable donations made by the Group during the year amounted to HKD 20,000, a decrease from HKD 155,000 in 2019[181] Leadership and Governance - The new CEO, Mr. Francis Lo, is expected to bring innovative ideas to the Group, following the retirement of the previous CEO, Mr. Raymond Chan, who served for over 25 years[95][96] - The company has a strong leadership team with members holding advanced degrees in business and finance, contributing to over 35 years of experience in finance and management[151][153] - The company has maintained a focus on corporate governance and accountability through its structured board committees[153] - The leadership team includes members with backgrounds in economics, finance, and business administration, enhancing strategic decision-making capabilities[145][151] Financial Position and Assets - As of March 31, 2020, the Group had total assets of HK$2.7089 billion, an increase from HK$1.2758 billion in 2019, primarily due to the recognition of right-of-use assets amounting to HK$1.4336 billion[101] - The current ratio decreased to 0.7 from 1.6 in 2019, attributed to the recognition of current lease liabilities of HK$479.9 million under current liabilities[101] - Cash and cash equivalents as of March 31, 2020, were HK$511 million, a decrease of 1.7% from HK$519.9 million in 2019[101] - The Group's net current liabilities were HK$247.0 million, a shift from net current assets of HK$248.3 million in 2019, resulting in a current ratio of 0.7 compared to 1.6 in the previous year[104] Employee Management - The Group's employee costs increased to approximately HK$1,019.9 million from HK$963.2 million in 2019, with a total workforce of about 5,800 employees[134] - The Group has enhanced training programs for employees, which has improved staff retention rates and prepared them for career advancement[65] - The Group's initiatives to improve staff satisfaction include recognition programs and extensive training opportunities[63] Compliance and Regulations - The Company was not aware of any non-compliance with applicable laws and regulations that significantly impacted the Group during the reporting period[184] - The Company maintained compliance with the Securities and Futures Ordinance regarding the interests of Directors and chief executives in shares and debentures as of March 31, 2020[200]

Financial Performance - For the six months ended September 30, 2019, the total revenue was HKD 1,538,972,000, an increase from HKD 1,472,992,000 in the same period of 2018, representing a growth of approximately 4.5%[18]. - The net profit attributable to equity shareholders for the same period was HKD 57,262,000, down from HKD 100,660,000 in 2018, indicating a decline of about 43%[23]. - The total comprehensive income for the period was HKD 55,066,000, compared to HKD 95,398,000 in the previous year, reflecting a decrease of approximately 42.3%[28]. - The group reported a gross profit of HKD 173,149,000 for the period, compared to HKD 201,814,000 in the previous year, showing a decline of about 14.2%[18]. - The profit for the period is HKD 100,660,000, with a total comprehensive income of HKD 95,398,000, indicating a decline in overall earnings compared to the previous period[59]. - The operating profit for the six months ended September 30, 2019, was 89,074 thousand HKD, compared to 198,281 thousand HKD in the previous year[5]. - The profit before tax for the six months ended September 30, 2019, was HKD 70,644,000, down 40.7% from HKD 119,172,000 in 2018[132]. - The basic earnings per share for the six months ended September 30, 2019, was HKD 0.44, a decrease of 43% from HKD 0.78 in 2018[155]. - The interim dividend declared was HKD 0.23 per share, down from HKD 0.37 per share in 2018, totaling HKD 29,793,000 compared to HKD 47,597,000 in 2018[151]. Assets and Liabilities - The total assets as of September 30, 2019, were HKD 1,950,179,000, compared to HKD 1,744,465,000 as of March 31, 2019, indicating an increase of approximately 11.8%[54]. - The total liabilities increased to HKD 1,203,246,000 from HKD 966,787,000, representing a rise of about 24.4%[54]. - The total equity attributable to shareholders as of September 30, 2019, is HKD 746,933,000, compared to HKD 777,678,000 for the same period in 2018, representing a decrease of approximately 3.9%[59]. - The total current assets as of September 30 were HKD 773,767,000, an increase from HKD 667,788,000 as of March 31[75]. - The total current liabilities as of September 30 were HKD 979,481,000, compared to HKD 419,527,000 as of March 31[75]. - The group recognized lease liabilities amounting to HKD 420,871,000 under current liabilities as of September 30[75]. - The net current liabilities recorded were HKD 205,714,000, compared to HKD 248,261,000 under previous accounting standards[75]. Cash Flow - Cash generated from operating activities for the six months ended September 30, 2019, is HKD 342,903,000, an increase from HKD 150,186,000 in the prior year[68]. - The net cash used in investing activities is HKD 47,189,000, compared to HKD 32,908,000 in the previous year, reflecting increased investment outflows[68]. - The group’s cash and cash equivalents totaled HKD 636,263,000 as of September 30, 2019, compared to HKD 519,854,000 as of March 31, 2019[171]. - The group’s net cash from operating activities showed a significant increase, reflecting improved operational efficiency[162]. Accounting Standards and Reporting - The group has adopted the revised retrospective method for the initial application of HKFRS 16, which may impact future financial reporting[18]. - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards, specifically HKFRS 16 on leases, effective from April 1, 2019[80]. - The company did not restate comparative figures due to the adoption of the revised Hong Kong Financial Reporting Standard 16 on April 1, 2019[185]. - The independent auditor did not identify any matters that would lead to a belief that the interim financial report was not prepared in accordance with the relevant accounting standards[190]. Market and Growth Strategies - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[18]. - The company introduced a new plant-based pork alternative, "Omnipork," which has been well received in the market[196]. - The company plans to open two new stores in mainland China in the second half of the fiscal year[200]. - Employee training programs were enhanced to improve service quality and employee retention rates[198]. - The company launched flexible promotions and new product tasting offers to cater to changing consumer preferences[196]. - The company continues to focus on its "Feel Good" philosophy to address market challenges and enhance customer experience[198]. Segment Performance - The group has identified two reportable segments: Hong Kong restaurants and Mainland China restaurants for resource allocation and performance evaluation[7]. - Revenue from external customers for the restaurant segment was 1,468,640 thousand HKD, an increase from 1,408,393 thousand HKD[6]. - The group’s total revenue for the six months ended September 30, 2019, was reported at HKD 360,886,000, compared to HKD 344,960,000 for the same period in 2018[168]. - The ASAP brand restaurant recorded double-digit same-store sales growth during the period[199]. Expenses and Costs - The cost of goods sold for food and beverages was HKD 360,886,000 for the six months ended September 30, 2019, compared to HKD 344,960,000 in 2018[145]. - Employee benefits for the six months ended September 30, 2019, totaled HKD 11,315,000, down from HKD 12,630,000 for the same period in 2018[182]. - The group incurred rental expenses of HKD 1,311,000 for a property leased from a related party during the six months ended September 30, 2019[184]. - Depreciation and interest on lease liabilities for the property leased from a related party were HKD 1,238,000 and HKD 169,000 respectively during the same period[184].