香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 CAFÉ DE CORAL HOLDINGS LIMITED 大 家 樂 集 團 有 限 公 司* ( 於百慕達註冊成立之有限公司 ) 網址: www.cafedecoral.com （股份代號：341） 期權股份數目 ： 646,000 * 僅供識別 授出股份期權 本公告乃根據香港聯合交易所有限公司（「香港聯交所」）證券上市規則（「上市 規則」）第17.06A條及17.06C條而作出。 大家樂集團有限公司（「本公司」或「公司」）董事局（「董事局」）公佈，於二 零二五年七月三十一日（「授出日期」），本公司根據於二零二二年九月八日採納 的股份期權計劃向若干僱員（「承授人」）授予期權（「期權」），以行使價每股 港幣7.496元認購本公司股本中的普通股（「股份」）合共646,000股。期權須待承授 人接納方可作實。 授出期權的詳情載列如下： 授出日期 ： 二零二五年七月三十一日 1 期權之行使價 ： 每股港幣 ...

Corporate Information [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides fundamental corporate information for Cafe de Coral Holdings Limited, including board members, committee structures, and key administrative details - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with established Nomination, Remuneration, and Audit Committees[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's auditor is **PricewaterhouseCoopers**[6](index=6&type=chunk)[8](index=8&type=chunk) Financial Highlights and Calendar [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This fiscal year, the Group's total revenue was HKD 8.568 billion, a 1.4% decrease, with profit attributable to equity holders at HKD 233 million, down 29.6%, and basic earnings per share falling from HKD 0.57 to HKD 0.41 FY2024/25 Financial Highlights | Metric | 2025财年 | 2024财年 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Thousand HKD) | 8,568,317 | 8,691,449 | (1.4) | | Profit Attributable to Equity Holders (Thousand HKD) | 232,744 | 330,454 | (29.6) | | Adjusted EBITDA* (Thousand HKD) | 687,657 | 798,315 | (13.9) | | Basic Earnings Per Share (HKD) | 0.41 | 0.57 | (28.1) | | Interim & Final Dividend Per Share (HK cents) | 40 | 57 | (29.8) | [Financial Calendar](index=5&type=section&id=Financial%20Calendar) This section outlines the company's key financial event dates, including interim and annual results announcements, dividend distributions, and the Annual General Meeting schedule - The company paid an interim dividend of **HKD 0.15 per share** on December 24, 2024, and proposed a final dividend of **HKD 0.25 per share** to be paid on September 4, 2025[10](index=10&type=chunk) - Annual results were announced on June 16, 2025, with the Annual General Meeting (AGM) scheduled for August 19, 2025[10](index=10&type=chunk) [Chairman's Message](index=6&type=section&id=Chairman's%20Message) Chairman Mr. Lo Hoi Kwong notes the Group achieved HKD 8.568 billion in revenue and HKD 233 million in profit attributable to shareholders despite economic volatility, emphasizing ongoing transformation through restaurant optimization, talent acquisition, and technology, while leveraging brand strength in Hong Kong and the Greater Bay Area - Despite economic volatility and shifts in local consumption patterns, the Group achieved **HKD 8.568 billion** in revenue and **HKD 233 million** in profit attributable to shareholders in FY2024/25[13](index=13&type=chunk)[17](index=17&type=chunk) - The Group is actively transforming to adapt to the new economic environment, implementing measures such as updating restaurant portfolios, recruiting new talent, adopting new technologies, and leveraging its brand strength for continued expansion in Hong Kong and the Greater Bay Area[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - The Group's Mainland China operations continue to grow, and institutional catering business contributes stable revenue, demonstrating the advantages of business diversification[14](index=14&type=chunk) - The Group actively gives back to the community through initiatives like the 'Cafe de Coral Food Assistance Programme' and the 'Lo Tang Shiang Education Fund', which has cumulatively disbursed over **HKD 40 million** in scholarships to date[26](index=26&type=chunk)[29](index=29&type=chunk)[33](index=33&type=chunk) [Business Highlights](index=10&type=section&id=Business%20Highlights) This fiscal year, the Group's total revenue decreased by 1.4% to HKD 8.568 billion, with profit attributable to shareholders down 29.6% to HKD 233 million, driven by Hong Kong QSR as the main revenue source, while Mainland China operations showed resilience amid market pressures Revenue Distribution (As of March 31, 2025) | Business Segment | Revenue Share (%) | | :--- | :--- | | Hong Kong Quick Service Restaurants | 59.8% | | Hong Kong Institutional Catering | 17.5% | | Mainland China | 11.7% | | Hong Kong Casual Dining | 9.6% | | Others | 1.4% | - As of March 31, 2025, the Group had **566 operating units**, with **45 new stores** opened since April 1, 2024[38](index=38&type=chunk)[40](index=40&type=chunk) - Facing challenges from Hong Kong residents' outbound spending and intense price competition in Mainland China, the Group adopted strategies including offering high-value products, adjusting menus, promoting signature items, and deepening member loyalty to stimulate demand[42](index=42&type=chunk) - The Group proposed a final dividend of **HKD 0.25 per share**, bringing the total annual payout ratio to **99.7%** including the interim dividend[44](index=44&type=chunk) Management Discussion and Analysis [Introduction and Highlights](index=13&type=section&id=INTRODUCTION%20AND%20HIGHLIGHTS) This fiscal year, Group revenue declined 1.4% to HKD 8.568 billion and profit attributable to shareholders fell 29.6% to HKD 233 million, impacted by weak economies and consumer behavior, with the Group responding through value offerings, digitalization, and cost control FY2024/25 Performance Overview | Metric | Amount (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | | Revenue | 8,568.3 | -1.4% | | Profit Attributable to Equity Holders | 232.7 | -29.6% | | Profit Attributable to Equity Holders (Excluding Fair Value Loss on Investment Properties) | 270.9 | -25.2% | - Key reasons for the performance decline include weak economies in Hong Kong and Mainland China, low consumer sentiment, outbound spending by Hong Kong residents, and fierce price competition in the Mainland market[46](index=46&type=chunk) - The Group's core response strategies include offering high-value products, adjusting menu mixes, promoting core products, deepening member loyalty programs, and advancing digitalization and automation to enhance efficiency and control costs[47](index=47&type=chunk) - During the year, the Group launched 'Joyful Dining', a brand of easy-to-swallow meals designed for individuals with chewing and swallowing difficulties, demonstrating its commitment to community needs[54](index=54&type=chunk) [Results Overview](index=15&type=section&id=RESULTS%20OVERVIEW) This fiscal year, total Group revenue decreased by 1.4% to HKD 8.568 billion, with gross profit margin declining to 10.4%, and profit attributable to shareholders falling 29.6% to HKD 233 million, leading to a proposed final dividend of HKD 0.25 per share Revenue by Business Segment (Million HKD) | Business Segment | 2024/25财年 | 2023/24财年 | Change (%) | | :--- | :--- | :--- | :--- | | **Hong Kong** | | | | | Quick Service Restaurants | 5,121.3 | 5,138.1 | (0.3) | | Casual Dining | 823.2 | 879.2 | (6.4) | | Institutional Catering | 999.6 | 1,019.6 | (2.0) | | Others | 129.0 | 139.2 | (7.4) | | **Hong Kong Subtotal** | **7,073.1** | **7,176.1** | **(1.4)** | | **Mainland China** | **1,495.2** | **1,515.3** | **(1.3)** | | **Group Total** | **8,568.3** | **8,691.4** | **(1.4)** | - Gross profit margin decreased from **11.4%** in the previous fiscal year to **10.4%** this fiscal year, primarily due to declining sales in a weak economic environment[60](index=60&type=chunk)[62](index=62&type=chunk) Key Costs as Percentage of Revenue | Key Cost | 2024/25财年 (%) | 2023/24财年 (%) | | :--- | :--- | :--- | | Raw Materials & Packaging Costs | 27.2 | 27.4 | | Staff Costs | 34.4 | 33.5 | | Rental Costs* | 11.5 | 11.0 | - The Board proposed a final dividend of **HKD 0.25 per share**, bringing the total annual payout ratio to **99.7%** including the interim dividend[75](index=75&type=chunk)[78](index=78&type=chunk) [Business Review](index=18&type=section&id=BUSINESS%20REVIEW) This section reviews the Group's operational performance across segments, noting significant impacts on Hong Kong QSR and Casual Dining from economic slowdowns, while Institutional Catering remained stable and Mainland China operations expanded resiliently with healthy margins - As of March 31, 2025, the Group operated **381 stores** in Hong Kong and **185 stores** in Mainland China[79](index=79&type=chunk)[86](index=86&type=chunk) [Hong Kong Quick Service Restaurants (QSR)](index=18&type=section&id=Quick%20Service%20Restaurants%20(QSR)) QSR revenue slightly decreased by 0.3% to HKD 5.121 billion, with same-store sales declines for Cafe de Coral and Super Super, prompting value-driven campaigns, targeted member promotions, and continued digitalization to counter market challenges Hong Kong QSR Business Performance | Metric | 2024/25财年 | 2023/24财年 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Million HKD) | 5,121.3 | 5,138.1 | (0.3) | | Cafe de Coral Same-Store Sales | -3% | - | - | | Super Super Same-Store Sales | -2% | - | - | - To address market challenges, Cafe de Coral Fast Food launched value-oriented marketing campaigns like 'Daily Super Saver Picks' and high-value dinner takeaway offers to stimulate demand[82](index=82&type=chunk)[87](index=87&type=chunk) - Leveraging its **2 million** 'Club 100' members, the Group introduced targeted coupons and a senior member section to increase customer visit frequency and spending[92](index=92&type=chunk)[95](index=95&type=chunk) [Hong Kong Casual Dining](index=21&type=section&id=Casual%20Dining) Casual Dining revenue significantly declined by 6.4% to HKD 823 million due to weak economy and outbound tourism, leading to a focus on brand building, value enhancement, menu adjustments, and strategic consolidation of underperforming brands Hong Kong Casual Dining Business Revenue | Metric | 2024/25财年 (Million HKD) | 2023/24财年 (Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 823.2 | 879.2 | (6.4) | - Oliver's Super Sandwiches collaborated with nutrition consultants to launch a healthy low-carb menu, successfully enhancing brand image and attracting new customers[109](index=109&type=chunk)[112](index=112&type=chunk) - As of the fiscal year-end, the Casual Dining segment operated **57 stores**, a reduction from **62 last year**, reflecting a strategy of consolidating underperforming brands[111](index=111&type=chunk)[113](index=113&type=chunk) [Hong Kong Institutional Catering](index=23&type=section&id=Institutional%20Catering) Institutional Catering operations stabilized with revenue at HKD 999.6 million, a slight 2.0% decrease, as subsidiaries successfully renewed key contracts and expanded into education and healthcare sectors, while exploring new customer segments Hong Kong Institutional Catering Business Revenue | Metric | 2024/25财年 (Million HKD) | 2023/24财年 (Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 999.6 | 1,019.6 | (2.0) | - Pang’s Catering successfully renewed major contracts, strategically adjusted underperforming outlets, and expanded its business into schools and hospitals[119](index=119&type=chunk) [Mainland China Operations](index=23&type=section&id=Mainland%20China%20Operations) Mainland China revenue slightly decreased by 1.3% to HKD 1.495 billion, yet the South China QSR business grew 0.4% in RMB terms, maintaining healthy margins through strong brand positioning and value strategies amid intense competition, with significant membership growth Mainland China Business Performance | Metric | 2024/25财年 | 2023/24财年 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Million HKD) | 1,495.2 | 1,515.3 | (1.3) | | South China QSR Revenue (Million RMB) | 1,357.9 | - | +0.4% | | Same-Store Sales | -8% | - | - | - The Group adopted a cautious expansion strategy in Mainland China, opening **21 new stores** during the year, focusing on undeveloped trade areas and adjusting store models to enhance market penetration, reaching a total of **185 stores** by fiscal year-end[125](index=125&type=chunk) - Digital transformation has been highly effective, with Mainland China's membership program, launched in 2022, accumulating over **6.6 million** registered members and a total fan base exceeding **9.8 million** across all channels, providing strong support for precision marketing[128](index=128&type=chunk)[130](index=130&type=chunk) [Financial Review](index=26&type=section&id=FINANCIAL%20REVIEW) The Group maintained a healthy financial position this fiscal year, holding approximately HKD 1.054 billion in cash with zero gearing ratio, and capital expenditure of HKD 294 million, while continuously monitoring foreign exchange risks Financial Position (As of March 31, 2025) | Metric | Amount (Million HKD) | 2024年同期 (Million HKD) | | :--- | :--- | :--- | | Cash | 1,054 | 1,261 | | Available Bank Facilities | 813 | 1,081 | | Borrowings | 305 | 385 | | Gearing Ratio | 零 | 零 | | Capital Expenditure (During the year) | 294 | 318 | - As of March 31, 2025, the company provided guarantees of approximately **HKD 1.281 billion** for bank facilities granted to its subsidiaries[139](index=139&type=chunk)[144](index=144&type=chunk) [Human Resources](index=26&type=section&id=HUMAN%20RESOURCES) As of March 31, 2025, the Group had 18,970 employees, emphasizing a people-centric approach with extensive communication, talent development, and recruitment initiatives to address labor challenges, earning multiple HR industry awards - As of March 31, 2025, the Group's total workforce was **18,970 employees**, a decrease from **19,569 last year**[141](index=141&type=chunk)[146](index=146&type=chunk) - To ensure a smooth transition and communication for the new CEO leadership, the Group organized **12 interactive events**, including town halls and breakfast meetings, reaching **800 management staff** in Hong Kong and Mainland China[147](index=147&type=chunk)[151](index=151&type=chunk) - The 'Lo Tang Shiang Education Fund' continues to support employee children's education, providing over **HKD 40 million** in scholarships to nearly **1,000 children** over **26 years**[154](index=154&type=chunk)[158](index=158&type=chunk) - The Group received multiple accolades for its efforts in fostering a positive, safe, and diverse workplace, including the 'Happy Workplace' label, 'Best HR Award 2024' Gold Award, and 'Excellent Employer Award 2024'[157](index=157&type=chunk)[159](index=159&type=chunk) [Sustainability](index=29&type=section&id=SUSTAINABILITY) The Group integrates ESG as a core strategy, maintaining its 'AA' rating in the Hang Seng Corporate Sustainability Index for ten consecutive years, expanding food assistance programs, enhancing climate risk management to include Scope 3 emissions, and providing sustainability training - The Group has been a constituent of the Hang Seng Corporate Sustainability Benchmark Index for **ten consecutive years** with an 'AA' rating, and received multiple ESG-related awards[160](index=160&type=chunk) - The 'Cafe de Coral Food Assistance Programme' partnered with the new 'Joyful Dining' brand to provide international standard easy-to-swallow meals for individuals with chewing and swallowing difficulties[161](index=161&type=chunk)[164](index=164&type=chunk) - The Group made progress in climate risk management, commencing collection of **Scope 3** greenhouse gas emissions data to better advance decarbonization efforts[166](index=166&type=chunk)[168](index=168&type=chunk) [Outlook](index=30&type=section&id=OUTLOOK) Looking ahead, the Group anticipates continued economic volatility and a new market normal, focusing on flexible business models to drive consumer demand, optimize store networks, and strengthen its multi-brand portfolio, while leveraging Hong Kong and Mainland China synergies for growth - Facing structural changes and demand volatility from Hong Kong's integration into the Greater Bay Area economy, the Group is reshaping its operating model to manage business more flexibly[171](index=171&type=chunk)[173](index=173&type=chunk) - Future strategic priorities include driving consumer demand, optimizing the store network (including size and location), and strengthening multi-brand portfolio synergies[171](index=171&type=chunk)[173](index=173&type=chunk) - The Group will continue to prioritize customer experience by promoting signature products, enhancing digital interfaces, and offering high-value products to attract consumers across all segments[174](index=174&type=chunk)[178](index=178&type=chunk) - The Group is confident in its successful Mainland China business strategy and expects further growth in the Greater Bay Area through synergies in food processing and strategic procurement between Hong Kong and Mainland operations[176](index=176&type=chunk)[178](index=178&type=chunk) [Directors and Senior Management](index=32&type=section&id=Directors%20and%20Senior%20Management) This section details the backgrounds of the company's Board of Directors and senior management, including non-executive, independent non-executive, and executive directors, as well as the CEO, providing comprehensive information on their professional qualifications and experience - Mr. Lo Hoi Kwong, Sunny serves as the company's Chairman and a Non-executive Director[180](index=180&type=chunk) - Ms. Leung Ho Ting, Piony joined the Group in 2019 and is currently the Chief Executive Officer, responsible for the Group's overall business and strategic direction in Hong Kong and Mainland China[212](index=212&type=chunk)[215](index=215&type=chunk) - Mr. Lo Tak Shing, Peter ceased to be Chief Executive Officer from April 2024 and now serves as an Executive Director, supporting the Board in corporate activities to enhance shareholder value[205](index=205&type=chunk) - Mr. Yang Bin, James serves as Chief Executive Officer (Mainland China), responsible for strategic planning, operations, and market development of Mainland China and Macau businesses[213](index=213&type=chunk)[216](index=216&type=chunk) Corporate Governance Report [Corporate Governance Framework and Compliance](index=39&type=section&id=Corporate%20Governance%20Framework) The company is committed to high corporate governance standards, ensuring compliance with the HKEX Corporate Governance Code to protect shareholder interests and foster long-term sustainability, underpinned by five core values: excellence, people-centricity, integrity, progress, and sustainable value creation - For the year ended March 31, 2025, the company complied with all code provisions of the Corporate Governance Code and adopted relevant recommended best practices[221](index=221&type=chunk)[222](index=222&type=chunk) - The company's five core values are 'Pursuit of Excellence', 'People-Centricity', 'Integrity', 'Progressive', and 'Creating Sustainable Value', forming the foundation of its corporate culture and business model[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) [Board of Directors](index=41&type=section&id=Board%20of%20Directors) The Board comprises ten members, including four non-executive, four independent non-executive, and two executive directors, ensuring a balanced structure with clear separation of Chairman and CEO roles, supported by a board diversity policy and continuous professional development for directors - The Board of Directors comprises **10 members**, including **4 non-executive directors**, **4 independent non-executive directors**, and **2 executive directors**, ensuring board independence[231](index=231&type=chunk) - The roles of Chairman (Mr. Lo Hoi Kwong) and Chief Executive Officer (Ms. Leung Ho Ting) are separate with clear responsibilities, ensuring checks and balances[239](index=239&type=chunk)[242](index=242&type=chunk) - The company adopted a Board Diversity Policy, reviewed annually by the Nomination Committee, with **two female members** currently on the Board[249](index=249&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - All directors are required to participate in continuous professional development, covering areas such as corporate governance, ESG, legal and regulatory compliance, finance, information technology, and the business environment[262](index=262&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) [Board Committees](index=51&type=section&id=Board%20Committees) The Board is supported by Nomination, Remuneration, and Audit Committees, each with clear written terms of reference and majority independent non-executive directors, which convened meetings during the reporting period to review key matters including board composition, remuneration, financial reporting, and risk management - The Nomination Committee reviews the Board's structure, size, and composition, and provides recommendations on director nominations, holding **two meetings** during the year[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) - The Remuneration Committee advises the Board on remuneration policies and specific remuneration packages for directors and senior management, holding **two meetings** during the year[279](index=279&type=chunk)[281](index=281&type=chunk)[284](index=284&type=chunk) - The Audit Committee reviews financial information, oversees financial reporting, risk management, and internal control systems, holding **four meetings** during the year, including two without management present, with external auditors and internal audit consultants[282](index=282&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) [Risk Management and Internal Control](index=58&type=section&id=Risk%20Management%20and%20Internal%20Control) The Group maintains a robust risk management and internal control system based on a 'three lines of defense' model, reviewed annually by the Audit Committee, ensuring compliance and high ethical standards through policies on inside information disclosure and anti-corruption - The Group's risk governance framework is based on a 'three lines of defense' model: daily management by departmental and operational heads, risk and compliance oversight by the management committee led by the CEO, and independent assurance from internal audit[306](index=306&type=chunk)[309](index=309&type=chunk) - The Board, through the Audit Committee, conducted an annual review of the risk management and internal control systems for the year ended March 31, 2025, deeming them effective and adequate[315](index=315&type=chunk) - Key risks identified, managed, and monitored during the year include food safety, human resources, maintenance, procurement, and sales management, with climate change recognized as an emerging risk[314](index=314&type=chunk) - The Group has established misconduct reporting and investigation procedures, allowing employees and business partners to report misconduct to the Head of Internal Audit or directly to the Audit Committee Chairman[324](index=324&type=chunk)[329](index=329&type=chunk) [Communication with Shareholders and Shareholder Rights](index=63&type=section&id=Communication%20with%20Shareholders) The company maintains effective shareholder communication through its dividend policy, shareholder communication policy, and general meetings, ensuring balanced and timely information disclosure, while upholding shareholder rights to convene special meetings and nominate directors - The company adopted a dividend policy aiming to provide regular and stable dividend returns, with payout amounts and frequency referencing historical payout ratios and the Group's profitability[332](index=332&type=chunk) - Shareholders have the right to convene extraordinary general meetings, propose resolutions at general meetings, and nominate directors, with relevant procedures available on the company's website[338](index=338&type=chunk)[342](index=342&type=chunk) - Based on public information, as of the report date, the company maintained the **25%** public float required by listing rules[350](index=350&type=chunk) Directors' Report [Business and Financial Review](index=67&type=section&id=Business%20and%20Financial%20Review) This section outlines the Group's core operations in Hong Kong and Mainland China, encompassing QSR, casual dining, institutional catering, and food processing, reviewing the challenging operating environment and reiterating strategic responses, with a proposed final dividend of HKD 0.25 per share - The Group's principal businesses include operating quick service restaurants, casual dining, institutional catering, and food processing and distribution in Hong Kong and Mainland China[354](index=354&type=chunk)[359](index=359&type=chunk) - The Board proposed a final dividend of **HKD 0.25 per share**, subject to approval at the Annual General Meeting on August 19, 2025[370](index=370&type=chunk)[376](index=376&type=chunk) - As of March 31, 2025, the company's distributable reserves were approximately **HKD 969 million**[371](index=371&type=chunk)[377](index=377&type=chunk) [Share Capital and Securities](index=70&type=section&id=Share%20Capital%20and%20Securities) This fiscal year, the company repurchased 5.7 million shares for approximately HKD 45.9 million, all of which were cancelled, while the 2023 Share Award Scheme trustee acquired 3.81 million shares for awards, with no other outstanding share-linked agreements Share Repurchase Details (For the year ended March 31, 2025) | Repurchase Month | Shares Repurchased | Price Per Share (HKD) | Total Amount Paid (HKD) | | :--- | :--- | :--- | :--- | | | | **Highest** | **Lowest** | (Excluding Fees) | | 2024年6月 | 1,100,000 | 8.09 | 7.95 | 8,829,780 | | 2024年7月 | 4,600,000 | 8.22 | 7.99 | 37,100,220 | | **Total** | **5,700,000** | | | **45,930,000** | - The trustee of the 2023 Share Award Scheme purchased **3,812,959 company shares** in the market for approximately **HKD 32.2 million** to satisfy awards for selected participants[393](index=393&type=chunk)[394](index=394&type=chunk) [Share Schemes](index=74&type=section&id=Share%20Schemes) This section details the company's share option and award schemes, including the 2022 Share Option Scheme with 58.57 million ordinary shares available for issuance, and the 2013 and 2023 Share Award Schemes, with new grants and forfeitures during the year - Under the 2022 Share Option Scheme, as of the reporting date, a total of **58,570,403 ordinary shares** were available for issuance, representing **10.1%** of issued shares[410](index=410&type=chunk) Share Option Movements (For the year ended March 31, 2025) | Category | Outstanding at Beginning of Year | Granted During Year | Exercised During Year | Forfeited During Year | Outstanding at End of Year | | :--- | :--- | :--- | :--- | :--- | :--- | | Number of Share Options | 22,870,000 | 1,469,000 | 0 | (1,900,000) | 22,439,000 | Awarded Share Movements (For the year ended March 31, 2025) | Category | Beginning of Year | Granted During Year | Vested During Year | Forfeited During Year | End of Year | | :--- | :--- | :--- | :--- | :--- | :--- | | Number of Awarded Shares | 3,744,722 | 3,792,933 | (1,615,724) | (328,926) | 5,593,005 | [Directors' and Chief Executive's Interests in Shares, Underlying Shares, and Debentures](index=82&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) This section discloses the interests of the company's directors and chief executive in shares, underlying shares, and debentures of the company and its associated corporations as of March 31, 2025, all being long positions, with detailed breakdowns for each director and major shareholder Major Directors' and Chief Executive's Shareholdings (Long Positions) | Name | Total Interests | % of Total Issued Shares* | | :--- | :--- | :--- | | Mr Lo Hoi Kwong, Sunny | 64,433,894 | 11.109% | | Mr Lo Tak Shing, Peter | 95,275,609 | 16.427% | | Ms Leung Ho Ting, Piony | 2,907,098 | 0.501% | Major Shareholders' Shareholdings (Long Positions) | Shareholder Name/Entity | Total Interests | % of Total Issued Shares* | | :--- | :--- | :--- | | Ms Ng Yuen Han, spouse of Mr Lo Tak Shing, Peter | 95,275,609 | 16.427% | | Butterfield Trust (Guernsey) Limited | 94,330,213 | 16.264% | | Ms Cho Po Ping, spouse of Mr Lo Hoi Kwong, Sunny | 64,433,894 | 11.109% | | Mr Lo Hoi Chun | 68,012,834 | 11.726% | [Continuing Connected Transactions](index=86&type=section&id=Continuing%20Connected%20Transactions) This section discloses continuing connected transactions with Fengyuan Decoration Design Engineering Co. Ltd. for store renovation services in Hong Kong, Macau, and Guangdong, with total transactions of approximately HKD 493,000 for the year, well within the HKD 10 million annual cap, confirmed by independent non-executive directors and auditors - The Group entered into a framework agreement with connected party Fengyuan Group for store renovation works, valid until March 31, 2026, with an annual transaction cap of **HKD 10 million**[456](index=456&type=chunk)[458](index=458&type=chunk) - For the year ended March 31, 2025, actual transactions with Fengyuan Group amounted to approximately **HKD 493,000**, significantly below the annual cap[457](index=457&type=chunk)[459](index=459&type=chunk) - Independent Non-executive Directors reviewed these transactions, confirming they were conducted on normal commercial terms in the Group's ordinary course of business, fair and reasonable, and in the overall interest of shareholders[460](index=460&type=chunk)[462](index=462&type=chunk) Independent Auditor's Report [Auditor's Opinion and Key Audit Matters](index=90&type=section&id=Auditor's%20Opinion%20and%20Key%20Audit%20Matters) PricewaterhouseCoopers issued an unqualified opinion on the Group's consolidated financial statements, affirming their fair presentation in accordance with Hong Kong Financial Reporting Standards, highlighting revenue recognition and impairment of property, plant, and equipment as key audit matters due to their complexity and judgmental nature - The auditor believes the consolidated financial statements fairly and truly reflect the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards, issuing an unqualified opinion[480](index=480&type=chunk)[485](index=485&type=chunk) - Key Audit Matter One: Revenue Recognition. Due to high transaction volume and complex systems, auditors focused on testing internal controls over revenue recognition and sampling sales transactions, finding transactions supported by evidence[492](index=492&type=chunk)[493](index=493&type=chunk) - Key Audit Matter Two: Impairment of Property, Plant, and Equipment (PPE) and Right-of-Use (ROU) Assets. Given the subjective nature of recoverable amount estimations (especially future sales and discount rates), auditors assessed management's impairment methodology and key assumptions, finding the assessment supported by evidence[493](index=493&type=chunk)[495](index=495&type=chunk)[497](index=497&type=chunk) Financial Statements [Consolidated Statement of Financial Position](index=100&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets decreased to HKD 5.980 billion from HKD 6.514 billion, with total liabilities at HKD 3.235 billion and total equity at HKD 2.745 billion, resulting in a net current liability of HKD 304 million primarily due to IFRS 16 reclassifications Consolidated Statement of Financial Position Summary (As of March 31) | Item (Million HKD) | 2025 | 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 4,479.6 | 4,806.7 | | Current Assets | 1,500.6 | 1,707.3 | | **Total Assets** | **5,980.2** | **6,513.9** | | **Equity** | | | | **Total Equity** | **2,744.7** | **2,910.5** | | **Liabilities** | | | | Non-current Liabilities | 1,431.0 | 1,695.3 | | Current Liabilities | 1,804.5 | 1,908.1 | | **Total Liabilities** | **3,235.5** | **3,603.4** | | **Total Equity and Liabilities** | **5,980.2** | **6,513.9** | [Consolidated Income Statement](index=102&type=section&id=Consolidated%20Income%20Statement) For the year ended March 31, 2025, Group revenue decreased by 1.4% to HKD 8.568 billion, gross profit declined 9.8% to HKD 893 million, and operating profit fell to HKD 325 million, with profit attributable to equity holders decreasing 29.6% to HKD 233 million Consolidated Income Statement Summary (For the year ended March 31) | Item (Million HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 8,568.3 | 8,691.4 | | Cost of Sales | (7,675.7) | (7,702.2) | | **Gross Profit** | **892.7** | **989.3** | | Other (Losses)/Gains, Net | (73.3) | (33.3) | | Administrative Expenses | (494.5) | (503.2) | | **Operating Profit** | **324.9** | **452.8** | | Profit Before Tax | 267.4 | 389.5 | | **Profit for the Year** | **235.1** | **333.2** | | Profit Attributable to Equity Holders of the Company | 232.7 | 330.5 | [Consolidated Statement of Comprehensive Income](index=103&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2025, the Group's annual profit was HKD 235 million, with total comprehensive income of HKD 203 million, primarily impacted by foreign exchange differences and fair value losses on financial assets recognized in other comprehensive income Consolidated Statement of Comprehensive Income Summary (For the year ended March 31) | Item (Million HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Year | 235.1 | 333.2 | | **Other Comprehensive Loss** | | | | Items That May Be Reclassified to Profit or Loss | (5.7) | (22.2) | | Items That Will Not Be Reclassified to Profit or Loss | (26.8) | 21.2 | | **Total Comprehensive Income for the Year** | **202.6** | **332.2** | [Consolidated Statement of Changes in Equity](index=104&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2025, total equity decreased from HKD 2.911 billion to HKD 2.745 billion, primarily due to HKD 327 million in dividends paid, HKD 46.05 million in share repurchases and cancellations, and other comprehensive losses, partially offset by annual profit - Total equity decreased from **HKD 2.911 billion** to **HKD 2.745 billion**, primarily impacted by dividends, share repurchases, and comprehensive losses[539](index=539&type=chunk) - During the year, the Group paid total dividends of **HKD 327 million** and reduced equity by **HKD 46.05 million** due to share repurchases and cancellations[539](index=539&type=chunk) [Consolidated Statement of Cash Flows](index=106&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended March 31, 2025, net cash from operating activities was HKD 1.511 billion, while net cash used in investing activities was HKD 254 million and in financing activities was HKD 1.460 billion, resulting in a net decrease in cash and cash equivalents of HKD 203 million Consolidated Statement of Cash Flows Summary (For the year ended March 31) | Item (Million HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 1,511.0 | 1,663.2 | | Net Cash Used in Investing Activities | (254.1) | (263.0) | | Net Cash Used in Financing Activities | (1,460.2) | (1,802.5) | | **Net Decrease in Cash and Cash Equivalents** | **(203.3)** | **(402.3)** | | Cash and Cash Equivalents at Beginning of Year | 1,260.9 | 1,672.0 | | **Cash and Cash Equivalents at End of Year** | **1,053.6** | **1,260.9** | [Notes to the Consolidated Financial Statements](index=107&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information to the consolidated financial statements, covering company background, significant accounting policies, critical accounting estimates, detailed analyses of financial statement items, commitments, related party transactions, and financial risk management - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, using the historical cost convention, with revaluation at fair value for investment properties and certain financial assets[547](index=547&type=chunk)[551](index=551&type=chunk) - Key accounting estimates and judgments involve impairment assessments of property, plant, and equipment, estimated useful lives of assets, income tax calculations, fair value of investment properties, share-based payment estimations, and lease term determinations[828](index=828&type=chunk)[829](index=829&type=chunk)[830](index=830&type=chunk) - The Group's revenue primarily derives from food and beverage sales recognized at a point in time[859](index=859&type=chunk)[1047](index=1047&type=chunk) - As of March 31, 2025, the Group had approximately **HKD 1.115 billion** in tax losses not recognized as deferred tax assets[1017](index=1017&type=chunk) Principal Properties [Principal Investment Properties](index=235&type=section&id=Principal%20Investment%20Properties) This section lists the Group's principal investment properties, including commercial shops in Hong Kong's Mei Foo Sun Chuen, Tsuen Wan, Mong Kok, Admiralty, and Tsim Sha Tsui, detailing their descriptions, lot numbers, approximate internal floor areas, types, and lease terms - The Group holds **7 principal investment properties**, all commercial shops located in Hong Kong's prime business districts, with a total internal floor area of **16,663 sq ft**[1175](index=1175&type=chunk)[1176](index=1176&type=chunk) [Principal Self-Used Properties](index=237&type=section&id=Principal%20Self-Used%20Properties) This section details the Group's principal self-used properties in Hong Kong, Mainland China, and Macau, including shops, offices, plants, and warehouses, providing descriptions, lot numbers, approximate floor areas, types, and lease terms - The Group's principal self-used properties include shops across various districts in Hong Kong, Cafe de Coral Centre (office and plant) in Fo Tan, and offices and plants in Tai Po Industrial Estate[1177](index=1177&type=chunk)[1178](index=1178&type=chunk)[1179](index=1179&type=chunk)[1180](index=1180&type=chunk) - In Mainland China, principal self-used properties include shops and plants located in Shenzhen, Zhuhai, Guangzhou, and Dongguan[1181](index=1181&type=chunk) [Five-Year Financial Summary](index=242&type=section&id=Five-Year%20Financial%20Summary) This section provides a five-year financial summary (2021-2025), showing the Group's revenue recovery post-pandemic with a slight dip in FY2025, a significant decline in profit attributable to shareholders, and a downward trend in total assets and equity over the past two years Five-Year Consolidated Income Statement Summary (Million HKD) | Fiscal Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 8,568.3 | 8,691.4 | 8,024.0 | 7,508.8 | 6,714.3 | | Profit Attributable to Equity Holders | 232.7 | 330.5 | 110.4 | 21.2 | 359.1 | | Basic Earnings Per Share (HKD) | 0.41 | 0.57 | 0.19 | 0.04 | 0.62 | Five-Year Consolidated Statement of Financial Position Summary (Million HKD) | Fiscal Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 5,980.2 | 6,513.9 | 7,175.3 | 6,871.8 | 7,154.7 | | Total Equity | 2,744.7 | 2,910.5 | 2,792.1 | 2,826.4 | 3,034.8 | | Total Liabilities | 3,235.5 | 3,603.4 | 4,383.3 | 4,045.5 | 4,119.8 |

Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 7.79 per share, indicating a potential upside of 13.9% from the current price of HKD 6.84 [5][13]. Core Insights - The company's performance in FY25 is expected to decline due to the weak economic environment in Hong Kong and mainland China, with revenue projected to decrease by 1.4% to HKD 8,568.3 million and net profit expected to drop by 29.57% to HKD 232.74 million [2][8]. - The company has maintained positive growth in the past three years, with revenue growth rates of 11.82%, 6.86%, and 8.32% from FY22 to FY24, and significant increases in net profit during the same period [8][9]. - The company is adopting a cautious approach to store expansion, with a net increase of only 1 store in Hong Kong and 14 stores in mainland China for FY25, focusing on smaller store formats to reduce rental costs [3][9]. - To stimulate consumer demand, the company is actively adjusting its business model by introducing cost-effective menu items and enhancing its membership program, "Club 100," which has attracted 2 million members in Hong Kong and 6.6 million in mainland China [4][10]. Financial Summary - For FY25, the company is expected to report revenues of HKD 8,568 million, a decrease of 1.42% year-on-year, with a gross margin of 10.42% and a net profit margin of 2.72% [6][20]. - The projected earnings per share (EPS) for FY26, FY27, and FY28 are HKD 0.41, HKD 0.46, and HKD 0.58, respectively, with a corresponding price-to-earnings (P/E) ratio of 19 times for FY26 [5][13].

Company Overview - The company, Café de Coral Group (00341.HK), has faced significant growth challenges over the past year due to sluggish consumer spending and industry price wars [1][2] - The latest financial report revealed a sharp decline in profits and weak revenue growth, leading to a 1.52% drop in stock price following the announcement [1][2] Financial Performance - For the fiscal year ending March 31, 2025, the company reported revenue of approximately HKD 8.568 billion, a year-on-year decrease of 1.4% [2] - Shareholder profit was approximately HKD 233 million, down 29.6% year-on-year; excluding fair value losses from investment properties, profit fell by 25.2% [2] - This performance marked the end of a three-year revenue growth streak and a two-year profit growth streak for the company [2] Market Conditions - The economic environment in Hong Kong and mainland China has been under pressure, leading to low consumer sentiment and significant challenges for the restaurant industry [2][4] - Increased outbound spending by Hong Kong residents and fierce price competition in the mainland market have further exacerbated the company's performance issues [2] Operational Adjustments - Despite the challenges, the company has attempted to mitigate pressure by launching cost-effective menu options, adjusting food offerings, and enhancing membership operations [2] - The company has continued to expand its restaurant network, with a total of 381 locations in Hong Kong and 185 in mainland China as of March 31, 2025, representing a net increase of 1 and 14 locations respectively [3] Industry Trends - The restaurant industry is experiencing a shift, with cautious consumer spending becoming the norm; average per capita spending in the restaurant sector has declined, with a reported drop of 6.6% to HKD 39.8 in 2024 [4] - The Hong Kong restaurant market is facing challenges from both declining local consumption and increased competition from mainland dining options [4] - Rising operational costs, including labor and rent, are squeezing profit margins for local restaurant businesses, leading to a wave of closures among various brands [6] Competitor Landscape - Other restaurant brands, such as TamJai International (02217.HK) and Fairwood Holdings (00052.HK), are also experiencing significant financial difficulties, with TamJai reporting a 3.4% revenue increase but a 32.7% drop in annual profit [5]

Financial Performance - The group's total revenue decreased by 1.4% to HKD 8,568.3 million, while the profit attributable to shareholders fell by 29.6% to HKD 232.7 million[3]. - Excluding fair value losses on investment properties, the profit attributable to shareholders declined by 25.2%[3]. - For the fiscal year ending March 31, 2025, the group's revenue decreased by 1.4% to HKD 8,568.3 million, down from HKD 8,691.4 million in the previous year[14]. - Shareholders' profit attributable to the group fell by 29.6% to HKD 232.7 million, compared to HKD 330.5 million for the previous year, primarily due to a significant decline in the restaurant industry in Hong Kong and mainland China[19]. - The gross profit margin decreased to 10.4%, down from 11.4% in the previous year, attributed to economic downturn and weak consumer sentiment[15]. - Basic earnings per share decreased by 28.1% to HKD 0.41, down from HKD 0.57 in the previous year[22]. - The operating profit for the group for the fiscal year ending March 31, 2025, was HKD 687,657, down from HKD 798,315 in the previous year, reflecting a decline of approximately 13.9%[86]. - The net profit for the year was HKD 235,111,000, down 29.4% from HKD 333,215,000 in 2024[51]. - The company reported a total comprehensive income of HKD 202,602,000 for the year, down from HKD 332,207,000 in 2024[51]. Dividends and Payouts - The company plans to distribute a final dividend of HKD 0.25 per share, with a total annual payout ratio of 99.7%[3]. - The board proposed a final dividend of HKD 0.25 per share, down from HKD 0.42 per share in the previous year, with a total payout ratio of 99.7%[23]. - The total proposed final dividend for the year is HKD 0.25 per share, compared to HKD 0.42 per share in the previous year, indicating a reduction of 40.5%[106]. - The company’s interim dividend for 2025 was maintained at HKD 0.15 per share, consistent with the previous year[106]. Store Network and Expansion - The group maintained a stable profit margin in mainland China while steadily expanding its store network in the Greater Bay Area[3]. - The number of stores in Hong Kong increased to 381, while the number of stores in mainland China rose to 185, up from 171 the previous year[24]. - The group plans to continue optimizing its store network by exploring new store formats and identifying high-potential locations[12]. - The group opened 21 new stores in mainland China, increasing the total to 185 stores as of March 31, 2025, compared to 171 stores the previous year[35]. - The total number of fast food outlets increased to 224 as of March 31, 2025, up from 219 the previous year[25]. - The company opened 4 new fast food outlets, bringing the total to 174 by the end of the fiscal year[30]. Membership Programs - The membership program "Club 100" has approximately 2 million registered members in Hong Kong and over 6.6 million members in mainland China, establishing a solid customer base[6]. - The "Club 100" membership program has reached 2 million members, with a new senior member section launched to cater to the elderly demographic[27]. - The mainland China membership program has accumulated over 6.6 million registered members, contributing significant revenue[36]. Operational Efficiency and Innovation - The company is actively introducing new store formats and layouts to enhance operational efficiency in mainland China[6]. - The group aims to optimize its restaurant portfolio and recruit new talent to drive business transformation[5]. - The group is committed to digitalization and automation to enhance customer experience and improve operational efficiency[3]. - The group is focused on cost control, improving human resource efficiency, and introducing new technologies and automation solutions to ensure profitability in a changing market environment[48]. - The group anticipates continued growth opportunities from synergies in food processing and strategic procurement between its Hong Kong and mainland operations, supported by the expanding Greater Bay Area business scale[49]. Community Engagement and Social Responsibility - The group has donated over 700,000 meals through its "Café de Coral Food Assistance Program" to those in need in Hong Kong[8]. - The group has awarded scholarships totaling over HKD 40 million to more than 1,000 employees' children through the "Lo Tung Cheung Education Fund" since its inception[8]. - The group has provided scholarships totaling over HKD 40 million to nearly 1,000 employees' children through the "Luo Teng Xiang Education Fund" over the past 26 years, benefiting over 200 children this year[43]. - The "Everyone Eats" food assistance program has expanded its reach, providing soft meal vouchers to individuals with chewing and swallowing difficulties, in collaboration with the newly launched soft meal brand "Eat Well"[45]. Risk Management and Financial Position - The group maintained a cash balance of approximately HKD 1,054 million and a bank credit facility of HKD 813 million as of March 31, 2025[38]. - The group has no pledged assets as of March 31, 2025, compared to none the previous year[40]. - The overall risk management plan focuses on minimizing potential adverse impacts on the group's financial performance due to market unpredictability[63]. - The group has diversified its bank balances and deposits across more than ten investment-grade financial institutions, mitigating concentration credit risk[68]. - The expected credit loss rate for other financial assets measured at amortized cost is deemed negligible, with no provisions made as of March 31, 2025[72]. - The company continues to maintain a robust liquidity position through internal resources and bank borrowings[74]. Market and Economic Conditions - The gross profit margin decreased to 10.4%, down from 11.4% in the previous year, attributed to economic downturn and weak consumer sentiment[15]. - The group faces foreign exchange risk primarily from the Renminbi exchange rate, with no hedging arrangements in place, and considers the foreign exchange risk to be very low due to the peg between the Hong Kong dollar and the US dollar[64]. - The company has identified local GDP and fixed investment growth rates in Hong Kong and mainland China as key factors affecting credit loss provisions[70]. Awards and Recognition - The group has been rated "AA" in the Hang Seng Sustainable Development Corporate Benchmark Index for ten consecutive years, reflecting its commitment to ESG initiatives[45]. - The group has received multiple awards for its workplace environment, including the "Best HR Awards 2024" for employee diversity and health and safety programs[44].

Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the North American market [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered the European market, with initial sales exceeding expectations [4]. - A new distribution center was opened in Asia to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Product Development - Launched three new products in the tech segment, which received positive customer feedback [7]. - R&D investment increased by 20% to accelerate innovation and product differentiation [8]. - A new patent was filed for an advanced manufacturing process, expected to reduce production costs [9]. Operational Efficiency - Implemented a new ERP system to streamline operations and improve data accuracy [10]. - Reduced production downtime by 15% through enhanced maintenance protocols [11]. - Achieved a 10% reduction in energy consumption across all facilities [12]. Customer Satisfaction - Customer satisfaction scores improved to 92%, up from 88% last year [13]. - Introduced a new customer loyalty program, resulting in a 25% increase in repeat purchases [14]. - Resolved 95% of customer complaints within 24 hours, exceeding the industry average [15]. Employee Engagement - Employee turnover rate decreased to 8%, the lowest in five years [16]. - Launched a new training program to enhance employee skills and career development [17]. - Conducted a company-wide survey, with 85% of employees reporting high job satisfaction [18]. Sustainability Initiatives - Reduced carbon emissions by 20% through the adoption of renewable energy sources [19]. - Achieved zero waste to landfill status at two major manufacturing sites [20]. - Partnered with a non-profit organization to support reforestation projects [21]. Risk Management - Implemented a new cybersecurity framework to protect against data breaches [22]. - Conducted a comprehensive risk assessment, identifying and mitigating key operational risks [23]. - Established a crisis management team to ensure rapid response to potential disruptions [24]. Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [25]. - Revised the company's code of conduct to align with global best practices [26]. - Conducted an internal audit, resulting in improved compliance with regulatory requirements [27]. Shareholder Value - Declared a quarterly dividend of $0.50 per share, representing a 10% increase from the previous quarter [28]. - Share buyback program was expanded, with $500 million allocated for repurchases [29]. - Hosted an investor day to communicate long-term growth strategies and financial targets [30]. Strategic Partnerships - Formed a joint venture with a leading technology firm to co-develop next-generation products [31]. - Signed a multi-year supply agreement with a key supplier to ensure cost stability [32]. - Collaborated with a university research center to explore new market opportunities [33]. Regulatory Compliance - Successfully passed all regulatory audits with no major findings [34]. - Updated internal policies to comply with new data privacy regulations [35]. - Conducted training sessions for employees on compliance with international trade laws [36]. Innovation and Technology - Invested $100 million in AI and machine learning technologies to enhance product offerings [37]. - Developed a proprietary software platform to improve customer engagement and analytics [38]. - Partnered with a tech startup to integrate blockchain technology into supply chain operations [39]. Supply Chain Management - Reduced lead times by 20% through improved logistics and supplier collaboration [40]. - Implemented a vendor management system to enhance supplier performance and accountability [41]. - Achieved a 15% reduction in inventory holding costs through better demand forecasting [42]. Brand and Marketing - Launched a global advertising campaign, resulting in a 30% increase in brand awareness [43]. - Introduced a new product line targeting millennials, which saw a 40% sales increase [44]. - Hosted a series of industry events to strengthen relationships with key stakeholders [45]. Financial Health - Maintained a strong cash position, with $2 billion in liquid assets [46]. - Reduced long-term debt by $300 million through refinancing and repayment [47]. - Improved the debt-to-equity ratio to 0.5, down from 0.7 last year [48]. Corporate Social Responsibility - Donated $5 million to support education initiatives in underserved communities [49]. - Achieved a 50% reduction in water usage across all manufacturing facilities [50]. - Launched a volunteer program, with 80% of employees participating in community service [51]. Digital Transformation - Migrated 90% of IT infrastructure to the cloud, improving scalability and cost efficiency [52]. - Implemented a digital twin technology to optimize production processes [53]. - Launched a mobile app to enhance customer experience and streamline transactions [54]. Talent Acquisition - Hired 200 new employees to support expansion into new markets [55]. - Introduced a referral program, resulting in a 30% increase in qualified candidates [56]. - Conducted a global recruitment drive to attract top talent in key areas [57]. Quality Assurance - Achieved ISO 9001 certification for all manufacturing facilities [58]. - Implemented a new quality control system, reducing defect rates by 25% [59]. - Conducted regular supplier audits to ensure product quality and consistency [60]. International Trade - Expanded export operations to include 10 new countries, increasing international revenue by 18% [61]. - Negotiated favorable trade agreements to reduce tariffs and import costs [62]. - Established a dedicated team to manage cross-border trade compliance [63]. Research and Development - Increased R&D spending by 25% to focus on breakthrough technologies [64]. - Filed 15 new patents, strengthening the company's intellectual property portfolio [65]. - Collaborated with academic institutions to advance research in key areas [66]. Customer Support - Launched a 24/7 customer support hotline to improve service availability [67]. - Implemented a chatbot to handle routine inquiries, reducing response times by 50% [68]. - Conducted training sessions for support staff to enhance problem-solving skills [69]. Product Quality - Introduced a new quality assurance program, resulting in a 20% reduction in product returns [70]. - Achieved a 98% customer satisfaction rate for product quality [71]. - Conducted regular product testing to ensure compliance with industry standards [72]. Strategic Investments - Acquired a competitor to expand market share and product offerings [73]. - Invested $200 million in a new manufacturing facility to increase production capacity [74]. - Partnered with a venture capital firm to invest in high-growth startups [75]. Corporate Culture - Launched a diversity and inclusion initiative, resulting in a 15% increase in minority representation [76]. - Introduced flexible work arrangements to improve work-life balance [77]. - Conducted a company-wide survey to gather feedback on corporate culture and make improvements [78]. Innovation in Manufacturing - Implemented advanced robotics to automate 30% of production processes [79]. - Developed a new manufacturing technique that reduced material waste by 15% [80]. - Partnered with a technology provider to integrate IoT into manufacturing operations [81]. Customer Retention - Introduced a subscription model, resulting in a 20% increase in customer retention [82]. - Launched a customer feedback platform to gather insights and improve services [83]. - Conducted regular customer satisfaction surveys to identify areas for improvement [84]. Financial Reporting - Improved financial reporting accuracy through the implementation of new accounting software [85]. - Conducted a comprehensive review of financial statements to ensure compliance with GAAP [86]. - Introduced a new dashboard for real-time financial performance tracking [87]. Employee Benefits - Enhanced employee benefits package, including increased healthcare coverage and retirement contributions [88]. - Introduced a wellness program to promote employee health and well-being [89]. - Conducted a benefits survey to gather employee feedback and make improvements [90]. Corporate Strategy - Revised the corporate strategy to focus on long-term sustainable growth [91]. - Conducted a SWOT analysis to identify key opportunities and threats [92]. - Developed a five-year strategic plan to guide future investments and initiatives [93]. Technology Integration - Integrated AI into customer service operations, improving response times and accuracy [94]. - Implemented a new CRM system to enhance customer relationship management [95]. - Partnered with a tech firm to develop a custom software solution for internal use [96]. Supply Chain Resilience - Diversified the supplier base to reduce dependency on single sources [97]. - Implemented a risk management system to monitor and mitigate supply chain disruptions [98]. - Conducted regular supplier performance reviews to ensure reliability and quality [99]. Corporate Communications - Launched a new corporate website to improve transparency and stakeholder engagement [100]. - Introduced a quarterly newsletter to keep employees informed about company developments [101]. - Conducted media training for executives to enhance public relations efforts [102]. Product Innovation - Developed a new product line based on customer feedback and market research [103]. - Introduced a limited-edition product to test new market segments [104]. - Partnered with a design firm to enhance product aesthetics and functionality [105]. Employee Training - Conducted a series of leadership training programs to develop future leaders [106]. - Introduced a new onboarding program to improve new hire integration [107]. - Launched a skills development initiative to address skill gaps in the workforce [108]. Corporate Responsibility - Published the first corporate social responsibility report, detailing sustainability efforts [109]. - Achieved a 30% reduction in greenhouse gas emissions through various initiatives [110]. - Partnered with local communities to support social and environmental projects [111]. Market Research - Conducted extensive market research to identify emerging trends and customer needs [112]. - Launched a new product based on insights from customer surveys and focus groups [113]. - Partnered with a market research firm to analyze competitor strategies [114]. Customer Engagement - Introduced a loyalty rewards program to increase customer engagement and retention [115]. - Launched a social media campaign to interact with customers and gather feedback [116]. - Conducted customer workshops to educate users on product features and benefits [117]. Financial Planning - Developed a new financial planning model to improve budget accuracy and forecasting [118]. - Conducted a cost-benefit analysis to prioritize investments and resource allocation [119]. - Introduced a rolling forecast process to adapt to changing market conditions [120]. Corporate Innovation - Established an innovation lab to explore new business models and technologies [121]. - Launched a hackathon to encourage employee creativity and problem-solving [122]. - Partnered with a startup accelerator to identify and invest in innovative ideas [123]. Employee Recognition - Introduced an employee recognition program to reward outstanding performance [124]. - Conducted an annual awards ceremony to celebrate employee achievements [125]. - Launched a peer recognition platform to encourage team collaboration and appreciation [126]. Product Launch - Successfully launched a new product line, achieving 150% of sales targets [127]. - Conducted a global marketing campaign to promote the new product launch [128]. - Partnered with influencers to generate buzz and drive product awareness [129]. Corporate Partnerships - Formed a strategic alliance with a leading industry player to co-develop new solutions [130]. - Signed a memorandum of understanding with a government agency to support local development [131]. - Collaborated with a non-profit organization to launch a community outreach program [132]. Financial Stability - Maintained a strong balance sheet with a debt-to-equity ratio of 0.4 [133]. - Achieved a credit rating upgrade, reflecting improved financial health [134]. - Conducted a stress test to assess financial resilience under adverse conditions [135]. Customer Experience - Redesigned the customer journey to improve satisfaction and reduce friction [136]. - Introduced a new customer feedback system to gather real-time insights [137]. - Conducted a customer experience audit to identify and address pain points [138]. Corporate Growth - Expanded operations into three new countries, increasing global presence [139]. - Acquired a smaller competitor to enhance market share and product offerings [140]. - Invested in new facilities to support future growth and scalability [141]. Employee Development - Launched a mentorship program to support employee career growth [142]. - Introduced a leadership development program to prepare employees for senior roles [143]. - Conducted regular performance reviews to identify development opportunities [144]. Corporate Transparency - Published detailed financial reports to enhance transparency and investor confidence [145]. - Conducted regular town hall meetings to communicate company updates and strategies [146]. - Introduced a whistleblower policy to encourage ethical behavior and reporting [147]. Product Diversification - Expanded the product portfolio to include new categories and segments [148]. - Launched a premium product line to target high-end customers [149]. - Partnered with a design studio to create unique and differentiated products [150]. Corporate Efficiency - Implemented lean manufacturing principles to reduce waste and improve efficiency [151]. - Conducted a process optimization review to streamline operations [152]. - Introduced a new project management tool to enhance team collaboration and productivity [153]. Corporate Vision - Revised the corporate vision to reflect a commitment to sustainability and innovation [154]. - Conducted a visioning workshop to align leadership on future goals [155]. - Published a new mission statement to guide corporate strategy and decision-making [156]. Customer Loyalty - Introduced a tiered loyalty program to reward long-term customers [157]. - Launched a customer appreciation campaign to strengthen relationships [158]. - Conducted a loyalty program review to identify areas for improvement [159]. Corporate Agility - Implemented agile methodologies to improve responsiveness to market changes [160]. - Conducted a company-wide agility assessment to identify areas for improvement [161]. - Introduced cross-functional teams to enhance collaboration and decision-making [162]. Corporate Impact - Measured and reported on the social and environmental impact of corporate activities [163]. - Achieved a 25% reduction in energy consumption through efficiency initiatives [164]. - Partnered with NGOs to support community development projects [165]. Corporate Learning - Launched a corporate university to provide continuous learning opportunities [166]. - Introduced a digital learning platform to enhance employee skills and knowledge [167]. - Conducted a learning needs assessment to identify skill gaps and training priorities [168]. Corporate Innovation - Established an innovation fund to support internal and external innovation projects [169]. - Launched an innovation challenge to encourage employee participation in idea generation [170]. - Partnered with a technology incubator to explore new business opportunities [171]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [172]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [173]. - Conducted a sustainability audit to identify areas for improvement [174]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [175]. - Introduced a new intranet platform to enhance internal communication [176]. - Conducted regular team-building activities to foster collaboration and morale [177]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [178]. - Conducted a best practices review to identify and implement industry-leading standards [179]. - Introduced a continuous improvement program to drive operational excellence [180]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [181]. - Conducted a leadership development program to prepare future leaders [182]. - Introduced a new leadership framework to guide decision-making and strategy [183]. Corporate Transformation - Embarked on a digital transformation journey to modernize operations and enhance customer experience [184]. - Conducted a transformation readiness assessment to identify key areas for change [185]. - Introduced a change management program to support employees through the transformation [186]. Corporate Resilience - Developed a business continuity plan to ensure operations during disruptions [187]. - Conducted a resilience assessment to identify vulnerabilities and mitigation strategies [188]. - Introduced a crisis management framework to enhance preparedness and response [189]. Corporate Collaboration - Formed cross-departmental teams to enhance collaboration and innovation [190]. - Introduced a collaboration platform to facilitate knowledge sharing and teamwork [191]. - Conducted regular collaboration workshops to improve team dynamics and problem-solving [192]. Corporate Innovation - Launched an innovation lab to explore new technologies and business models [193]. - Introduced an innovation challenge to encourage employee participation in idea generation [194]. - Partnered with a technology incubator to explore new business opportunities [195]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [196]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [197]. - Conducted a sustainability audit to identify areas for improvement [198]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [199]. - Introduced a new intranet platform to enhance internal communication [200]. - Conducted regular team-building activities to foster collaboration and morale [201]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [202]. - Conducted a best practices review to identify and implement industry-leading standards [203]. - Introduced a continuous improvement program to drive operational excellence [204]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [205]. - Conducted a leadership development program to prepare future leaders [206]. - Introduced a new leadership framework to guide decision-making and strategy [207]. Corporate Transformation - Embarked on a digital transformation journey to modernize operations and enhance customer experience [208]. - Conducted a transformation readiness assessment to identify key areas for change [209]. - Introduced a change management program to support employees through the transformation [210]. Corporate Resilience - Developed a business continuity plan to ensure operations during disruptions [211]. - Conducted a resilience assessment to identify vulnerabilities and mitigation strategies [212]. - Introduced a crisis management framework to enhance preparedness and response [213]. Corporate Collaboration - Formed cross-departmental teams to enhance collaboration and innovation [214]. - Introduced a collaboration platform to facilitate knowledge sharing and teamwork [215]. - Conducted regular collaboration workshops to improve team dynamics and problem-solving [216]. Corporate Innovation - Launched an innovation lab to explore new technologies and business models [217]. - Introduced an innovation challenge to encourage employee participation in idea generation [218]. - Partnered with a technology incubator to explore new business opportunities [219]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [220]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [221]. - Conducted a sustainability audit to identify areas for improvement [222]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [223]. - Introduced a new intranet platform to enhance internal communication [224]. - Conducted regular team-building activities to foster collaboration and morale [225]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [226]. - Conducted a best practices review to identify and implement industry-leading standards [227]. - Introduced a continuous improvement program to drive operational excellence [228]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [

Financial Performance - For the six months ending September 30, 2024, the group's revenue decreased by 1.2% to HKD 4,264.8 million, compared to HKD 4,318.6 million in the same period last year[4]. - Shareholders' profit for the same period was HKD 144.0 million, a decrease of 28.2% from HKD 200.6 million year-on-year[16]. - The gross profit margin for the six months ending September 30, 2024, decreased to 10.3%, down from 12.1% in the previous year[10]. - Basic earnings per share decreased by 27.7% to HK$0.25 for the six months ended September 30, 2024, compared to HK$0.346 in 2023[18]. - Operating profit decreased to HKD 189,916, down 29.0% from HKD 267,462 in the previous year[50]. - Net profit attributable to equity holders was HKD 144,015, a decline of 28.2% from HKD 200,553 in the prior year[50]. - The company reported a total comprehensive income of HKD 133,917 for the period, compared to HKD 201,442 in the previous year[52]. - The group reported a pre-tax profit of HKD 163,128,000 for the six months ended September 30, 2024, down 30.7% from HKD 235,624,000 in 2023[74]. Revenue Breakdown - In Hong Kong, the fast food segment recorded revenue of HKD 2,574.0 million, a slight increase of 0.3% from HKD 2,565.4 million[9]. - The leisure dining segment in Hong Kong saw a revenue decline of 8.9%, dropping to HKD 409.0 million from HKD 449.1 million[9]. - Revenue from mainland China decreased by 1.5% to HKD 763.1 million, while same-store sales recorded a negative growth of 8%[32]. - Institutional dining revenue decreased by 1.1% to HKD 452.4 million, with successful contract renewals maintaining market leadership[30]. - The total revenue from food and beverage sales for the six months ended September 30, 2024, was HKD 4,221,035,000, slightly down from HKD 4,276,291,000 in 2023[78]. Cost Management - Administrative expenses were reduced by 6.0% to HKD 242.2 million, compared to HKD 257.7 million in the previous year[11]. - The group’s employee benefit expenses (excluding share-based payments) were HKD 1,431,591,000, an increase from HKD 1,405,228,000 in the previous year[81]. - The net financial cost for the six months ended September 30, 2024, was HKD 26,788,000, a decrease from HKD 31,838,000 in the previous year[83]. Store Operations and Expansion - The group operated 381 stores in Hong Kong and 176 stores in mainland China as of September 30, 2024, compared to 380 and 171 stores respectively as of March 31, 2024[20]. - The fast food segment opened 3 new stores, ending the period with 174 stores, while the congee and noodle segment opened 2 new stores, ending with 46 stores[27]. - The group continued to expand its store network in the Greater Bay Area despite economic uncertainties[5]. - The group continues to expand its store network in the Greater Bay Area, with plans for 10 new stores[33]. Dividends and Share Repurchase - The group declared an interim dividend of HKD 0.15 per share, consistent with the previous year[2]. - The company repurchased a total of 5,700,000 shares at a total cost of approximately HKD 46 million, all of which were subsequently canceled[36]. - The interim dividend declared is HK$0.15 per share, unchanged from 2023[19]. Customer Engagement and Marketing - The "Club 100" membership program surpassed 1.8 million registered members, with significant growth in senior members following special promotions[24]. - The company launched new promotional products and digital enhancements to improve customer experience and drive sales during economic downturns[23][24]. - The group received multiple industry awards, including recognition as a "Hong Kong Power Brand 2023/2024" and accolades for its marketing strategies[6]. Financial Position and Liquidity - As of September 30, 2024, the group had cash of approximately HKD 1,071 million and a bank credit facility of HKD 799 million[35]. - The group has no pledged assets as of September 30, 2024, maintaining a stable financial position[38]. - The group recognized lease liabilities of HKD 770,919,000 in current liabilities and HKD 1,216,434,000 in non-current liabilities as of September 30, 2024[59]. - The total amount of trade receivables as of September 30, 2024, was HKD 56,939,000, a decrease from HKD 89,430,000 as of March 31, 2024[95]. Sustainability and ESG - The group achieved a waste recovery rate of 40% for food waste in its Hong Kong operations[44]. - The group received an ESG rating of "AA," the highest in the non-essential consumer sector, reflecting its commitment to sustainable development[44].

Financial Performance - For the year ended March 31, 2024, the Group reported revenue of HK$8,691.4 million, an increase of 8.3% from HK$8,024.0 million in 2023[19]. - Profit attributable to shareholders surged to HK$330.5 million, representing a 199.5% increase compared to HK$110.4 million in the previous year[19]. - Basic earnings per share increased to HK$0.57, up 200% from HK$0.19 in 2023[19]. - Total assets decreased by 9.2% to HK$6,513.9 million from HK$7,175.3 million[19]. - Net assets increased by 4.2% to HK$2,910.5 million, compared to HK$2,792.1 million in 2023[19]. - A final dividend of HK42 cents per share is recommended, with a total dividend payout ratio of 101.0% for the year[67]. - The Group did not receive any COVID-19 subsidies during the year under review, contrasting with HK$40.9 million received in the previous year[67]. - Adjusted net profit rose by 376.1% to HK$330.5 million, excluding COVID-19 subsidies and fair value loss on investment properties[101]. Business Expansion - The group opened a record 22 new stores in Mainland China during the year, contributing to nearly 550 outlets across Hong Kong and the Greater Bay Area (GBA)[34][36]. - The Group opened 22 new stores in the Greater Bay Area during the year, achieving a historical high while maintaining stable profit margins[79]. - The Group's store network expanded to 380 in Hong Kong and 171 in Mainland China as of 31 March 2024[110]. - The Group is actively seeking prime locations for further expansion in the Greater Bay Area with 12 new shops in the pipeline[149]. Operational Efficiency - Profit margins showed strong growth despite a challenging operating environment, indicating effective management and operational strategies[33][34]. - Gross profit margin improved significantly to 11.4%, up from 8.8% in the previous financial year, due to ongoing optimization of business models and operations[69]. - The Group continues to focus on internal cost efficiency and manpower optimization to bolster margins amid a challenging economic environment[82]. - The Group's focus on digitalisation and operational efficiency has improved margins across all brands[133]. Management and Leadership - A new Chief Executive Officer has been appointed, marking a transition to a sustainable leadership model[26]. - The outgoing CEO, Peter Lo, was recognized for his leadership during challenging economic conditions, and will remain on the Board of Directors[27]. - The Group's Chief Executive Officer transition was completed on April 1, 2024, marking the final step in a 10-year succession plan[68]. - The new CEO, Piony Leung, is anticipated to lead the group towards sustainable growth as market conditions normalize[32][35]. Market Performance - The Group's business in Hong Kong and Mainland China fully recovered, leading to steady growth in profit margins and network penetration[22]. - The Mainland China business experienced strong same-store sales growth and healthy operating margins, with a record number of 22 new shops opened in the Greater Bay Area during the year[76]. - Revenue from Mainland China operations increased by 14.5% to HK$1,515.3 million (FY2022/23: HK$1,323.5 million)[146]. Employee and Workplace Initiatives - The Group has been rated "AA" in the Hang Seng Corporate Sustainability Benchmark Index for nine consecutive years, reflecting its commitment to ESG initiatives[194]. - The Group received the "Happy Company Label" for five consecutive years and was recognized with the "Best HR Awards 2023" and "Employer of Choice Award" for its workplace initiatives[190]. - The Group has implemented extensive training programs for staff, focusing on areas such as AI transformation and IT security, to enhance workforce competitiveness[183]. - The Group has established effective recruitment mechanisms, including job fairs and partnerships with NGOs, to address the structural shrinkage of the labor force in Hong Kong[189]. Marketing and Customer Engagement - Successful marketing campaigns, including "A Taste of Togetherness," contributed to brand awareness and customer loyalty[118]. - The marketing campaign "Enjoy Happiness at Café de Coral" garnered over 200 million views on TikTok, boosting brand awareness[157]. - Club 100 membership program reached 1.6 million registered users, enhancing customer engagement through digital integration[121]. - Digital channels accounted for around 60% of total orders, prompting an upgrade to the mobile ordering system[161]. Sustainability and Corporate Responsibility - The Group has achieved a recycling rate of 40% for food waste in Hong Kong operations, up from 27%, equivalent to 2,643 tonnes of food waste[196]. - The Group surpassed its annual sustainability targets for energy consumption, greenhouse gas emissions, water usage, and food waste reduction, achieving these goals one year ahead of schedule[195].

Investment Rating - The report maintains a "Buy" rating for Cafe De Coral (341 HK) despite lowering the target price to HKD 11.15 from HKD 14.82, reflecting a potential upside of 28.4% from the current price of HKD 8.68 [2][6][10]. Core Insights - Cafe De Coral has shown resilience in a weak macroeconomic environment, outperforming the industry with a sales growth of 8% year-on-year in FY24, reaching HKD 8.69 billion, although slightly below the estimated 10% [2][6]. - The company’s net profit surged by 200% year-on-year to HKD 333.2 million, attributed to accelerated same-store sales growth (SSSG), significant gross profit margin expansion, stable labor costs, and limited rent increases [6][14]. - The report expresses cautious optimism regarding the new management team and the company's defensive nature, alongside an attractive dividend yield [2][6]. Financial Summary - Revenue projections for FY25E are set at HKD 9.06 billion, with a year-on-year growth rate of 4.3%, and expected to reach HKD 10.4 billion by FY27E [3][14]. - The operating profit is forecasted to increase from HKD 452.8 million in FY24 to HKD 568.7 million in FY25E, with net profit expected to rise from HKD 333.2 million to HKD 384.6 million in the same period [3][14]. - The report anticipates a slight decline in profit margins due to potential operational leverage challenges and the need for discounts to drive customer traffic [2][6]. Market Performance - The report highlights that the Hong Kong market's recovery has been slower than expected, with the SSS recovery rate projected at 88% for FY24, reflecting resilience in the fast-food segment [2][6]. - In mainland China, sales grew by 15% year-on-year in FY24, driven by an impressive SSSG of 11% and a 12% increase in store count, with expectations for further growth in FY25E [2][6]. Store Expansion Plans - Cafe De Coral plans to maintain its store expansion strategy, with a net opening of 4 stores in Hong Kong and 18 in mainland China in FY24, aligning with previous guidance [6][14]. - The company aims to open approximately 5 to 10 new stores in Hong Kong and 20 in mainland China in FY25E, indicating a commitment to growth despite macroeconomic challenges [6][14].

Investment Rating - The report maintains a BUY rating for Cafe De Coral (CDC) despite trimming earnings forecasts due to macroeconomic challenges [2][6]. Core Insights - CDC has outperformed the industry in a weak macro environment, with a notable recovery in fast food sales and a resilient same-store sales (SSS) recovery rate of 88% in FY24 [2][6]. - The company is expected to continue reclaiming market share through innovative product launches and improved marketing strategies [2]. - The report anticipates a SSS recovery rate of 88% in 1H25E and 90% in 2H25E, with potential acceleration in the second half of 2025 due to government initiatives [2][6]. Financial Performance - FY24 revenue increased by 8% YoY to HK$ 8.7 billion, while net profit surged by 200% YoY to HK$ 331 million [6][12]. - The report projects revenue growth to HK$ 9.062 billion in FY25E, with a net profit of HK$ 381 million [7][12]. - The company declared a final dividend of HK$ 0.42, resulting in a yield of approximately 7% [6]. Market Segments - In the Hong Kong market, fast food has shown resilience with a recovery rate of 102% during Jan-Feb 2024, outperforming other segments [2]. - The Mainland China market saw a 15% YoY sales increase in FY24, driven by a strong SSSG of 11% and store growth of 12% [2][6]. Valuation - The target price is revised down to HK$ 11.15 from HK$ 14.82, reflecting a 28.4% upside from the current price of HK$ 8.68 [4][6]. - The stock is currently trading at a P/E of 13x FY25E, with an expected yield of 8% [6][10].