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].

Financial Performance - Revenue for the year was HK$2,970.5 million, an increase of 4.6% from HK$2,840.6 million in 2018[34] - Profit for the year decreased by 16.7% from HK$216.1 million to HK$179.9 million[34] - Basic earnings per share were HK$140.00, down from HK$169.16 in 2018[34] - Return on average equity was 23.4%, down from 29.2% in 2018[34] - The profit attributable to equity shareholders has decreased from HK$216.1 million in 2018 to HK$179.9 million in 2019[37] - The gross profit margin receded to 12.9%, compared to 14.3% in the previous year[46] - The Group's revenue increased by 4.6% year-on-year to HK$2,970.5 million for the year ended 31 March 2019, compared to HK$2,840.6 million in 2018[46] - Profit attributable to equity shareholders decreased by 16.7% to HK$179.9 million, down from HK$216.1 million in 2018[46] Dividends - Proposed final dividend of HK$81.0 cents per share, with a total dividend per share for the year of HK$118.0 cents and a payout ratio of approximately 84%[34] - The Board recommended a final dividend of HK81.0 cents per share, down from HK105.0 cents in 2018, resulting in a total annual dividend of HK118.0 cents, which represents approximately 84% of the Group's profit for the year[47] - An interim dividend of HK37.0 cents was paid on December 31, 2018, and a final dividend of HK81.0 cents is recommended for the year ended March 31, 2019, down from HK105.0 cents in 2018[162] - The proposed final dividend is HK81.0 cents per share, totaling HK$104,207,000, down from HK$134,183,000 in 2018[164] Store Operations and Expansion - The Group opened a total of seven new fast food stores in Hong Kong during the year, expanding its business network[64] - Specialty restaurant brands, ASAP and Taiwan Bowl, showed significant sales growth, with a total of ten specialty restaurants operating as of 31 March 2019[65] - In Mainland China, the same-store sales growth rate was approximately -6% due to renovations and investments in new stores[70] - The Group operated a total of 148 stores in Hong Kong, including 138 fast food stores and ten specialty restaurants, and 11 stores in Mainland China as of 31 March 2019[71] - Future plans include expanding the brand presence in Hong Kong and developing the local market in Mainland China, leveraging popular home delivery platforms[84] Financial Position - The net assets of the company have been steadily increasing, reflecting a strong financial position[38] - As of 31 March 2019, the total assets of Fairwood Holdings Limited were HK$1,275.8 million, a decrease from HK$1,291.7 million in 2018[91] - The Group's working capital increased to HK$248.3 million in 2019 from HK$210.3 million in 2018, with a current ratio of 1.6 compared to 1.5 in the previous year[94] - The Group maintained a healthy financial position with total bank loans of HK$0.1 million in 2019, down from HK$1.9 million in 2018, resulting in a gearing ratio of 0.0%[96] Employee and Community Engagement - Total employee costs for the year were approximately HK$963.2 million, an increase from HK$904.7 million in 2018[116] - The Group's total number of employees remained stable at approximately 5,600 as of March 31, 2019[116] - Fairwood distributed over 180,000 "Care for Seniors" cards, representing more than 10% of the senior citizen population in Hong Kong, providing discounts for dining[75] - The Group is committed to supporting environmental protection and complying with relevant regulations, with detailed information to be discussed in the Environmental, Social and Governance Report[159] Corporate Governance and Leadership - The Company is committed to maintaining high standards of corporate governance with independent non-executive directors overseeing audit and remuneration committees[143] - The Company has a strong leadership team with members holding advanced degrees in finance, business administration, and economics, contributing to strategic decision-making[130] - The Company has been actively expanding its management team with experienced professionals from various industries to enhance operational efficiency[134] Strategic Initiatives - The Company is focused on developing new products and technologies to meet market demands and improve customer satisfaction[132] - The Company has a strategic plan for market expansion, aiming to increase its presence in key regions and enhance brand recognition[138] - The Company is exploring potential mergers and acquisitions to drive growth and diversify its business portfolio[144] - The Company aims to leverage its financial management expertise to optimize resource allocation and improve overall financial performance[137] Share Option Scheme - The total number of shares available for issue under the Share Option Scheme is 5,003,528 shares, representing approximately 3.87% of the issued share capital of the Company[181] - The purpose of the Share Option Scheme is to attract and retain quality personnel and align the interests of option holders with shareholders[179] - The options granted under the Share Option Scheme are unlisted and provide the right to subscribe for one ordinary share of HK$1 each[193] - The maximum entitlement for any one participant under the Share Option Scheme shall not exceed 1% of the Company's shares in issue within any twelve-month period[181] - The market value per share decreased from HK$30.80 in 2018 to HK$27.65 in 2019[178] Risk Management - Further discussion on principal risks and uncertainties facing the Group can be found in the "Business Review" and "Prospects" sections of the annual report[155] - The Group's receipts and expenditures were mainly denominated in Hong Kong dollars and Renminbi, with foreign currency risk primarily from US dollars and Renminbi[104][105] - The Group does not expect significant movements in the US dollar/Hong Kong dollar exchange rate due to the peg between the two currencies[105]