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].

Financial Performance - Group annual revenue increased to HKD 8,691.4 million (FY2022/23: HKD 8,024.0 million), with profit attributable to shareholders reaching HKD 330.5 million (FY2022/23: HKD 110.4 million), approximately 4.8 times higher excluding government pandemic subsidies[2] - Gross margin significantly improved to 11.4% (FY2022/23: 8.8%) due to optimized business models and operations[2] - Group revenue increased by 8.3% to HKD 8,691.4 million for the year ended March 31, 2024[7] - Profit attributable to shareholders surged by 199.5% to HKD 330.5 million, compared to HKD 110.4 million in the previous year[7] - Gross profit margin improved significantly to 11.4%, up from 8.8% in the previous year[7] - Revenue for the fiscal year ending March 31, 2024, increased to HKD 8,691,449 thousand, up from HKD 8,024,044 thousand in the previous year[39] - Gross profit rose to HKD 989,286 thousand, compared to HKD 702,649 thousand in the prior year[39] - Net profit attributable to equity holders of the company surged to HKD 330,454 thousand from HKD 110,353 thousand[39] - Profit before tax more than doubled to 389,528 thousand HKD in 2024 from 144,176 thousand HKD in 2023[82] - Basic earnings per share increased to 0.57 HKD in 2024, up 200% from 0.19 HKD in 2023[84] - Net profit attributable to equity holders of the company increased to HKD 330,454 thousand in 2024, up from HKD 110,353 thousand in 2023, representing a significant growth[86] - Diluted earnings per share rose to HKD 0.57 in 2024 compared to HKD 0.19 in 2023[86] Dividend and Shareholder Returns - The company proposed a final dividend of 42 HK cents per share (FY2022/23: 28 HK cents), with a total annual dividend payout ratio of 101.0%[2] - The company proposed a final dividend of 42 HK cents per share for the year ended March 31, 2024, with a full-year payout ratio of 101.0%[18] - Proposed dividends increased to HKD 245,996,000 from HKD 163,997,000[42] - The company proposed a final dividend of 42 HK cents per share for 2024, up from 28 HK cents per share in 2023, with a total dividend of 57 HK cents per share for the year[87][93] Business Segments Performance - China mainland business showed strong recovery with robust same-store sales rebound and steady profit margins, with a record number of new stores opened during the year[2] - The company opened a record 22 new stores in China, maintaining overall profit margins despite challenging operating conditions[5] - The company's fast-food segment in Hong Kong enhanced product design, value-for-money offerings, and brand promotion activities[2] - The company's institutional catering and casual dining segments in Hong Kong also showed improved performance compared to the previous year[2] - Hong Kong fast food business revenue increased by 6.9% to HKD 5,138.1 million[11] - Mainland China business revenue grew by 14.5% to HKD 1,515.3 million[11] - Hong Kong segment profit increased by 32.0% to HKD 618.9 million[17] - Mainland China segment profit rose by 42.2% to HKD 179.4 million[17] - Fast food revenue increased by 6.9% to HK$5,138.1 million (2022/23: HK$4,808.4 million), accounting for 59.1% of total revenue[20] - Casual dining revenue increased by 2.5% to HK$879.2 million (2022/23: HK$857.8 million)[22] - Institutional catering revenue increased by 18.0% to HK$1,019.6 million (2022/23: HK$863.9 million), with 99 operational units as of March 31, 2024 (2023: 94)[24] - Mainland China business revenue increased by 14.5% to HKD 1,515.3 million (FY2022/23: HKD 1,323.5 million), with South China fast food business revenue rising by 20.6% to RMB 1,352.0 million and same-store sales growing by 11%[25] - Total classified revenue for the year ended March 31, 2024, was HK$8,807,626,000, with HK$7,181,814,000 from Hong Kong and HK$1,625,812,000 from Mainland China[69] - External revenue for the year ended March 31, 2024, was HK$8,691,449,000, with HK$7,176,068,000 from Hong Kong and HK$1,515,381,000 from Mainland China[69] - Classified performance for the year ended March 31, 2024, was HK$798,315,000, with HK$618,894,000 from Hong Kong and HK$179,421,000 from Mainland China[69] - Revenue from food and beverage sales increased to 8,603,538 thousand HKD in 2024, up 8.7% from 7,918,008 thousand HKD in 2023[75] Store Expansion and Operations - The company opened 22 new stores in the Greater Bay Area, achieving a record high[7] - The company currently operates nearly 550 stores in Hong Kong and the Greater Bay Area, with significant growth potential in the region[5] - The company operates 219 fast food outlets as of March 31, 2024 (2023: 216), with 8 new outlets in preparation[21] - The company operates 380 stores in Hong Kong (2023: 376) and 171 stores in mainland China (2023: 153)[19] - The company opened 22 new stores in the Greater Bay Area, with a net increase of 18 stores, bringing the total store network to 171 (March 31, 2023: 153)[26] - The company expanded its store network in Hong Kong, leveraging the current property market adjustments for growth opportunities[36] - In mainland China, the company focused on sustainable expansion, particularly in Guangdong, aiming to strengthen its presence in the Greater Bay Area[36] Digitalization and Automation - The company's focus on digitalization and automation has contributed to improved profit margins and cost control[2] - The "Club 100" app reached 1.6 million registered members, and 95% of stores have installed self-ordering kiosks[21] - Digital ordering accounts for approximately 60% of total orders, and the company has upgraded its mobile ordering system to improve user experience[26] - The company has accumulated over 4.6 million members in Mainland China since launching its membership program in 2022, contributing significantly to sales revenue[26] - The company's "Club 100" membership strategy significantly enhanced customer relationships and brand loyalty, with plans to further improve the VIP program[36] Financial Position and Capital Management - As of March 31, 2024, the company held cash of approximately HKD 1,261 million and had available bank credit facilities of HKD 1,081 million[28] - The company's capital expenditure (excluding right-of-use assets) for the year was HKD 318 million (FY2022/23: HKD 465 million), with outstanding capital commitments of HKD 516 million as of March 31, 2024[29] - The company provided guarantees of approximately HKD 1,920 million for bank credit facilities granted to its subsidiaries as of March 31, 2024 (March 31, 2023: HKD 2,226 million)[30] - Total assets decreased to HKD 6,513,924,000 from HKD 7,175,340,000 year-over-year[42] - Cash and cash equivalents dropped to HKD 1,260,948,000 from HKD 1,671,978,000[42] - Property, plant, and equipment decreased to HKD 1,552,675,000 from HKD 1,617,702,000[42] - Investment properties declined to HKD 440,300,000 from HKD 559,200,000[42] - Total liabilities decreased to HKD 3,603,411,000 from HKD 4,383,277,000[44] - Net current liabilities improved to HKD (200,827,000) from HKD (652,197,000)[44] - Lease liabilities in current liabilities increased to HKD 774,067,000 from HKD 760,629,000[44] - Lease liabilities in non-current liabilities decreased to HKD 1,289,060,000 from HKD 1,508,455,000[44] - Total equity increased to HKD 2,910,513,000 from HKD 2,792,063,000[42] - The company's total bank credit facilities amounted to HKD 1,627,459,000 as of March 31, 2024, with HKD 546,783,000 utilized, leaving HKD 1,080,676,000 available[61] - The company's net cash position was HKD 875,948,000 as of March 31, 2024, compared to HKD 692,028,000 as of March 31, 2023, indicating low capital risk[65] - The company's total undiscounted cash outflows for non-derivative financial liabilities were HKD 3,392,292,000 as of March 31, 2024, with HKD 1,711,698,000 due within one year[62] - The company's listed equity investments under fair value through other comprehensive income (FVTOCI) were valued at HKD 74,499,000 as of March 31, 2024[64] - The company's capital management strategy includes adjusting dividend payments, returning capital to shareholders, issuing new shares, or selling assets to reduce debt[63] - The company's liquidity is primarily supported by internal resources and borrowings from financial institutions, with cash mainly used to pay trade payables, other payables, and operating expenses[61] - Capital commitments for the acquisition of property, plant, and equipment stood at HKD 516,052 thousand in 2024, down from HKD 531,428 thousand in 2023[92] Risk Management and Financial Instruments - The company's profit would decrease/increase by HKD 1,607,000 (2023: HKD 4,091,000) and increase/decrease by HKD 2,493,000 (2023: HKD 2,750,000) if interest rates increase/decrease by 0.5% as of March 31, 2024[52] - A 10% increase/decrease in listed equity securities (financial assets at fair value through other comprehensive income) would result in an increase/decrease of HKD 7,450,000 (2023: HKD 8,675,000) in the company's investment reserve as of March 31, 2024[54] - The company's trade receivables as of March 31, 2024, totaled HKD 89,513,000, with a loss provision of HKD 83,000[57] - The company's trade receivables as of March 31, 2023, totaled HKD 75,944,000, with a loss provision of HKD 76,000[57] - The company's financial assets subject to expected credit loss models are categorized into cash and cash equivalents, trade receivables, and other financial assets measured at amortized cost[56] - The company's credit risk is managed collectively, with most bank balances and deposits held in institutions with investment-grade credit ratings[55] - The company does not use any hedging arrangements to mitigate foreign exchange risk, as it primarily operates in Hong Kong and Mainland China[51] - The company's financial risk management focuses on minimizing potential adverse effects on financial performance due to market unpredictability[50] - The company is evaluating the impact of new and revised accounting standards and interpretations, but the effect on its operating performance and financial position is not yet determinable[49] - The company's financial assets at fair value through other comprehensive income are subject to price risk, with fair value determined based on market conditions and assumptions[53] - Cash and cash equivalents are subject to impairment provisions under HKFRS 9, but the identified impairment losses are not significant due to the investment-grade credit ratings of all financial institutions[58] - The expected loss rate for trade receivables was assessed to be close to zero as of March 31, 2024, and March 31, 2023, with no significant impairment provisions made[58] - Trade receivables increased to HKD 89,513 thousand in 2024 from HKD 75,944 thousand in 2023[88] - Other receivables, including recoverable VAT and receivables from security logistics companies, amounted to HKD 63,080 thousand in 2024, slightly up from HKD 62,168 thousand in 2023[89] - Trade payables decreased to HKD 210,767 thousand in 2024 from HKD 225,881 thousand in 2023[91] ESG and Sustainability - The company achieved a 40% food waste recycling rate in Hong Kong, up from 27%, recycling 2,643 tons of food waste[34] - The company's ESG efforts were recognized with multiple awards, including the "ESG Benchmark Awards" and the "Green Kitchen" certification[34] - The company's "Let's Eat Together" food assistance program provided HKD 12 million in aid to 4,000 caregivers[35] Corporate Governance and Management - The company has transitioned from family management to a sustainable professional management model, with senior management succession completed[32] - The company has been awarded the "Happy Workplace" title for five consecutive years and received the "Best HR Awards 2023" for the third year[33] - The company maintained high standards of corporate governance, complying with all code provisions of the Corporate Governance Code of the Hong Kong Stock Exchange[95] - The audit committee, along with management and external auditors PwC, reviewed the company's financial reporting process and internal controls, confirming the accuracy of the financial statements[96] - No purchase, sale, or redemption of the company's listed securities occurred during the year ended March 31, 2024[97] Expenses and Costs - Administrative expenses rose by 3.5% to HKD 503.2 million[13] - Income tax expense increased by 70.7% to HKD 56.3 million[15] - Employee benefits expenses rose to 2,877,765 thousand HKD in 2024, a 7.3% increase from 2,681,659 thousand HKD in 2023[77] - Net finance costs increased to (63,288) thousand HKD in 2024, up 6.1% from (59,661) thousand HKD in 2023[79] - Tax expenses surged to 56,313 thousand HKD in 2024, a 70.7% jump from 32,989 thousand HKD in 2023[81] - The company implemented a cross-departmental task force to address rising food and supply chain costs, aiming to improve profit margins[36] Non-Current Assets and Investments - Non-current assets (excluding financial instruments and deferred tax assets) in Hong Kong as of March 31, 2024, were HK$3,861,999,000, compared to HK$4,117,381,000 in 2023[73] - Non-current assets (excluding financial instruments and deferred tax assets) in Mainland China as of March 31, 2024, were HK$803,946,000, compared to HK$780,659,000 in 2023[73] - Total classified assets as of March 31, 2024, were HK$6,372,499,000, with HK$5,231,695,000 from Hong Kong and HK$1,140,804,000 from Mainland China[73] - Total assets decreased to 6,513,924 thousand HKD in 2024 from 7,175,340 thousand HKD in 2023, a decline of 9.2%[74] - Investment property fair value loss widened to (31,900) thousand HKD in 2024 from (20,100) thousand HKD in 2023[76] - Depreciation and amortization (excluding depreciation of right-of-use assets - properties) for the year ended March 31, 2024, was HK$394,190,000[69] - Fair value loss on investment properties for the year ended March 31, 2024, was HK$31,900,000[69] - Impairment loss reversal on property, plant, and equipment for the year ended March 31, 2024, was HK$4,320,000[69] - Financial income for the year ended March 31, 2024, was HK$45,304,000[69]

Financial Performance - The Group's revenue for the first half of FY2023/24 increased by 10.8% to HK$4,318.6 million, and profit attributable to shareholders increased by 84.4% to HK$200.6 million[7]. - Excluding government COVID-19 subsidies received last year, the Group's profit attributable to shareholders for the period under review was about three times that of the same period last year[7]. - Profit attributable to shareholders rose by 84.4% to HK$200.6 million, up from HK$108.7 million in 2022, with a 195.7% increase when excluding government COVID-19 subsidies[21]. - Basic earnings per share increased by 84.0% to HK34.6 cents, up from HK18.8 cents in 2022[26]. - The profit for the period reached HK$201,221, which is an increase of 84.7% from HK$108,767 in the previous year[89]. - The company reported a total comprehensive income of HK$201,442 for the period, significantly higher than HK$44,174 in the previous year[89]. Revenue Segments - Revenue from the Quick Service Restaurants segment was HK$2,565.4 million, a 9.3% increase from HK$2,348.0 million in 2022[13]. - Institutional Catering revenue increased by 21.0% to HK$457.6 million from HK$378.3 million in 2022[13]. - Revenue from the Casual Dining business increased by 8.5% to HK$449.1 million, compared to HK$414.0 million in the previous year[37]. - Revenue from Mainland China operations increased by 13.2% to HK$774.8 million, up from HK$684.2 million in the previous year[40]. - Sales of food and beverages for the six months ended September 30, 2023, reached HK$4,276,291, an increase of 11.1% from HK$3,849,198 in 2022[199]. Cost Management and Profitability - Gross profit margin improved to 12.1% for the six months ended 30 September 2023, compared to 8.8% in 2022, due to effective operating cost control and productivity enhancements[14]. - The Quick Service Restaurant business achieved substantial improvement in margins through operating cost control, manpower productivity enhancement, supply chain efficiency, strategic sourcing, and digitalisation[7]. - The Group is committed to improving margins through pricing strategy, menu management, and effective control of food costs[41]. Dividends and Shareholder Returns - An interim dividend of HK15 cents per share is declared for the six months ended 30 September 2023, compared to HK10 cents in 2022[7]. - The company declared an interim dividend of HK$87,856, compared to HK$58,570 for the same period last year, reflecting a positive outlook[87]. Operational Developments - The Group is focusing on network expansion in the Greater Bay Area to tap into the vast mass-market consumer segment[7]. - The Mainland China business recorded strong same store sales growth, particularly in the second quarter, despite economic challenges[7]. - The introduction of a plant-based series of dishes has attracted new consumer segments and increased patronage[31]. - Deployment of ordering kiosks and mobile ordering apps has enhanced customer experience and reduced manpower costs[34]. - The mobile ordering app was revamped, leading to significant growth in traffic and sales on the eatCDC.com platform[36]. Financial Position and Cash Flow - As of September 30, 2023, the Group had cash of approximately HK$1,117.7 million and available banking facilities of HK$1,949.3 million, with a current ratio of 0.8 and a cash ratio of 0.5[43]. - The Group's external borrowing decreased to HK$400 million from HK$980 million, maintaining a nil gearing ratio[43]. - The Group's cash and cash equivalents at the end of the period were HK$1,117,674,000, down from HK$1,580,382,000, reflecting a decrease of 29.3%[95]. - Net cash generated from operating activities for the six months ended 30 September 2023 was HK$820,703,000, a decrease of 6.5% compared to HK$877,786,000 in 2022[95]. Employee and Management Developments - The Group's workforce increased to 19,666 employees as of September 30, 2023, reflecting ongoing recruitment and talent development efforts[44]. - The Group continues to enhance training resources for employees, focusing on leadership and customer service skills to meet evolving customer demands[47]. - The Group has completed the handover of senior management across all business units to ensure knowledge transfer and operational experience[47]. Corporate Governance and Compliance - The company complied with all code provisions of the Corporate Governance Code during the six months ended September 30, 2023[79]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the unaudited interim results for the six months ended September 30, 2023[79]. - The company’s financial reporting process and internal control are supervised by the Audit Committee, which comprises three Independent Non-executive Directors and two Non-executive Directors[79]. Future Outlook - The Group remains cautiously optimistic about performance and prospects in the second half of the year despite the ongoing economic recovery challenges[48]. - The company expects to continue its market expansion and product development strategies in the upcoming periods[200].

Financial Performance - The group's revenue for the six months ended September 30, 2023, increased by 10.8% to HKD 4,318.6 million, compared to HKD 3,898.2 million in the same period last year[2]. - Shareholders' profit attributable to the company rose by 84.4% to HKD 200.6 million, up from HKD 108.7 million in the previous year, with a threefold increase when excluding government COVID-19 subsidies[2][8]. - Basic earnings per share increased by 84.0% to HKD 0.346, compared to HKD 0.188 in the previous year[11]. - Operating profit for the same period rose to HKD 267.5 million, up from HKD 156.4 million, marking a 70.9% increase[27]. - Net profit attributable to equity holders was HKD 200.6 million, compared to HKD 108.7 million in the previous year, reflecting an 84.5% increase[27]. - Total comprehensive income for the period was HKD 201,442,000, significantly up from HKD 44,174,000 in the previous year, marking an increase of about 355%[30]. - The company reported a profit of HKD 201,221,000 for the six months ended September 30, 2023, compared to HKD 108,767,000 for the same period in 2022, representing an increase of approximately 85%[29]. Revenue Breakdown - The fast food segment in Hong Kong recorded a revenue increase of 9.3% to HKD 2,565.4 million, while the institutional dining segment saw a 21.0% increase to HKD 457.6 million[4]. - Fast food business revenue increased by 9.3% to HKD 2,565.4 million for the six months ended September 30, 2023, accounting for 59.4% of total group revenue[13]. - Casual dining revenue rose by 8.5% to HKD 449.1 million, with 67 outlets in operation at the end of the period[16]. - Institutional dining revenue increased by 21.0% to HKD 457.6 million, benefiting from increased student attendance and new business opportunities[17]. - Revenue from mainland China increased by 13.2% to HKD 774.8 million, up from HKD 684.2 million in 2022[19]. - Same-store sales in the South China fast food business grew by 11%, with revenue rising 21.1% to RMB 687.7 million[19]. Cost and Expenses - Administrative expenses increased by 13.6% to HKD 257.7 million, up from HKD 226.9 million in the previous year[5]. - For the six months ended September 30, 2023, the company reported a total cost of sales and administrative expenses amounting to HKD 4,051,923, an increase of 7.2% from HKD 3,780,618 in the same period of 2022[49]. - The company's employee benefits expenses (excluding share-based payments) rose to HKD 1,405,228 for the six months ended September 30, 2023, compared to HKD 1,283,700 in the previous year, an increase of 9.5%[49]. - Total financial costs for the six months ended September 30, 2023, amounted to HKD 54,210, an increase from HKD 40,917 in the previous year, representing a rise of 32.4%[50]. Dividends and Shareholder Returns - The interim dividend declared is HKD 0.15 per share, compared to HKD 0.10 per share in the previous year[11]. - The company declared an interim dividend of HKD 0.15 per share for the six months ended September 30, 2023, compared to HKD 0.10 per share in the previous year, marking a 50% increase[57]. Store Expansion and Operations - The number of stores in Hong Kong increased to 383 from 376, and in mainland China, the number of stores rose to 160 from 153[12]. - The group opened 5 new fast food outlets, bringing the total to 172, while One Bowl maintained 47 outlets[15]. - The group opened 8 new stores during the review period and is preparing to open 11 more[19]. - The company is actively seeking strategic locations for new outlets, with plans to open 2 additional fast food locations[15]. Digital and Customer Experience - Digital channels accounted for 60% of total order volume, with ongoing optimization of the digital ordering process[19]. - The introduction of self-service kiosks and mobile ordering apps has improved customer experience and increased usage rates[15]. - The "Club 100" membership program surpassed 1.5 million members, with high active user rates contributing to increased customer visits[15]. Financial Position - The company's total assets decreased to HKD 6,498,281,000 as of September 30, 2023, down from HKD 7,175,340,000 as of March 31, 2023, reflecting a decline of approximately 9.4%[32]. - The company's total liabilities decreased to HKD 3,650,623,000 from HKD 4,383,277,000, a reduction of about 16.7%[33]. - The net current liabilities improved to HKD 461,770,000 from HKD 652,197,000, indicating a positive change of approximately 29.2%[34]. - The company’s retained earnings increased to HKD 1,620,130,000 from HKD 1,516,205,000, reflecting a growth of approximately 6.9%[32]. Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ending September 30, 2023[64]. - The audit committee, consisting of three independent non-executive directors and two non-executive directors, has reviewed the interim unaudited results for the six months ending September 30, 2023[65]. - No purchase, sale, or redemption of the company's listed securities occurred during the six months ending September 30, 2023[66].

Financial Performance - Revenue for the year ended 31 March 2023 reached HK$8,024.0 million, a 6.9% increase compared to the previous year[7] - Profit attributable to equity holders of the company surged to HK$110.4 million, a 420.2% increase year-over-year[7] - Basic earnings per share rose to HK$0.19, a 375.0% increase from HK$0.04 in the previous year[7] - Total assets increased by 4.4% to HK$7,175.3 million as of 31 March 2023[7] - Net assets per share decreased slightly by 1.2% to HK$4.77[7] - Interim and final dividends per share increased by 35.7% to HK38 cents[7] - Group revenue increased by 6.9% to HK$8,024.0 million for the year ended 31 March 2023, compared to HK$7,508.8 million in FY2021/22[21][30] - Profit attributable to shareholders rose to HK$110.4 million, up from HK$21.2 million in FY2021/22, including HK$40.9 million in COVID-19 subsidies received during the year[21][30] - Revenue increased by 6.9% to HK$8,024.0 million in FY2022/23 compared to HK$7,508.8 million in FY2021/22[35][36] - Gross profit margin rose to 8.8% in FY2022/23 from 7.3% in FY2021/22, driven by better control of food and labor costs[38][39] - Profit attributable to equity holders surged 420.2% to HK$110.4 million in FY2022/23 from HK$21.2 million in FY2021/22, primarily due to business recovery[42] - Adjusted net profit increased by 165.1% to HK$69.5 million in FY2022/23 compared to a loss of HK$106.6 million in FY2021/22[43] - Basic earnings per share surged by 375.0% to HK19 cents in FY2022/23[43] - The Group's dividend payout ratio reached 201.7% for the year, with a final dividend of HK28 cents per share[43] - The company paid an interim dividend of HK10 cents per share and proposed a final dividend of HK28 cents per share, totaling approximately HK$163,997,000[170] - Distributable reserves of the company as of 31 March 2023 amounted to approximately HK$971,586,000[171] COVID-19 Impact and Recovery - The company faced challenges from the fifth wave of COVID-19 and slower-than-anticipated economic recovery in Hong Kong[9] - A nationwide COVID-19 outbreak in Mainland China during the third quarter significantly impacted the company's business[9] - The company achieved a solid return to growth following the worst of the COVID-19 pandemic[9] - Hong Kong business improved from Q2 2023, but H2 results were impacted by slower-than-expected economic recovery and a nationwide COVID-19 outbreak in Mainland China[22][23][30] - Mainland China business experienced a V-shaped recovery in early 2023 following the relaxation of pandemic controls, with healthy overall performance and satisfactory network expansion progress[23][33] - Greater Bay Area business in Mainland China was seriously impacted by COVID-19 outbreaks but returned to normal levels from mid-January 2023[33] - The Group received HK$40.9 million in COVID-19 subsidies in FY2022/23, down from HK$127.8 million in FY2021/22[42] - The Group's business in Hong Kong improved from the second quarter of FY2022/23, despite slower economic recovery and COVID-19 impacts[166] - Mainland China experienced a V-shaped recovery in business from mid-January following the relaxation of pandemic-related controls[167] - Hong Kong business performance improved in the second quarter of the fiscal year, but the recovery pace was slower than expected, impacting overall performance[169] - Mainland China business was severely affected by nationwide COVID-19 outbreaks in the third quarter, but experienced a V-shaped recovery starting mid-January[169] Business Expansion and Market Development - The company is expanding into new markets beyond traditional dining and commercial districts, including residential zones in the Greater Bay Area[15] - The company aims to improve profit margins in Hong Kong and expand its shop network in Mainland China over the next three years, though timelines may need adjustment due to pandemic challenges[16] - The company successfully changed consumer habits in Zhongshan by introducing a new breakfast service, attracting customers who traditionally ate breakfast at home[15] - The company's Club 100 CRM program has built direct relationships with loyal customers and driven repeat visits[15] - The company opened 20 new shops in Mainland China during the fiscal year, with 7 more in the pipeline[58] - The company's CRM membership project attracted over 3 million members, with digital marketing efforts boosting sales[59] - The Group expanded its store network to 376 stores in Hong Kong and 153 stores in Mainland China as of 31 March 2023[44][46] - The Group opened 13 new Café de Coral fast food stores and 6 new Super Super Congee & Noodles stores during the year[49] - The company's digital promotion efforts, including a TikTok campaign, attracted over 70 million online views and contributed to sales growth[60] - The company's CRM membership program has attracted over 3 million members, with a focus on increasing membership and engaging existing members through various activities[60] - The Group expects to accelerate new store openings in Mainland China as the economy recovers, focusing on the Greater Bay Area and Macau[66] - The Group is expanding its Café de Coral fast food network by strategically mapping house brands to suitable locations[66] Operational Efficiency and Digitalization - The company's digitalization and automation efforts are expected to strengthen margins and enhance productivity[12] - The company's marketing campaigns have improved sales and enhanced brand value and reputation as an industry leader[12] - Hong Kong business focused on cost control, digitalization, and automation, leading to improved margins and productivity[22][30] - The Group introduced a new smaller store format to reduce running costs and improve operating margins[49] - Digitalization efforts, including enhanced mobile ordering apps and serving robots, significantly improved customer experience and operational efficiency[49] - Robots have been deployed in 49 stores to improve operational productivity and enhance customer experience[59] - The company has introduced robots in 49 stores in Mainland China to enhance operational efficiency and provide high-tech entertainment for families with children[60] - The Group's digitalization efforts are key to building brand affiliation and integrating customer experiences through an Omni-channel strategy[66] Corporate Governance and Leadership - The company's management transition has been successful, leading to continuous improvement in business fundamentals[9] - The company's management team is focused on building, operating, and optimizing a multi-brand business strategy[15] - The company is experimenting with new ideas to build a stronger and more resilient business as it transitions to a new management team[19] - The Board and management focus on high standards of corporate governance, aiming to safeguard shareholder interests and ensure the Group's long-term sustainability[82] - The Company complied with all provisions of the Corporate Governance Code and adopted recommended best practices for the year ended 31 March 2023[83] - The company's corporate culture emphasizes continuous learning, innovation, and adaptability to changing environments, aiming to bring happiness to customers, employees, and shareholders[85] - The management team upholds high standards of governance, transparency, and integrity, guided by core values such as Pursuit of Excellence, People-Oriented, and Creating Sustainable Value[86] - The Board of Directors consists of ten members, including four Non-executive Directors, four Independent Non-executive Directors, and two Executive Directors, ensuring a balanced composition and diverse expertise[89] - The Chairman, Mr. Lo Hoi Kwong, and the Chief Executive Officer, Mr. Lo Tak Shing, have clearly defined responsibilities outlined in the Board Charter, with the Chairman leading the Board and the CEO overseeing the implementation of the Group's strategies and daily operations[91] - The company has a strong governance framework, disciplined risk management, and effective internal controls, which support long-term value creation for shareholders through sustainable business development[89] - The Board periodically evaluates its performance with the assistance of external professional advisors to enhance effectiveness and corporate governance, focusing on areas such as corporate vision, strategy, and management succession[91] - The Non-executive and Independent Non-executive Directors contribute independent judgment and strategic decision-making, with their independence confirmed annually under the Listing Rules[93] - The Board ensures mechanisms are in place to facilitate independent views and inputs, which are reviewed regularly to maintain effectiveness[94] - The Board maintains a balanced composition with 2 female Directors out of 10, including a newly appointed female Independent Non-executive Director during the year[98][101] - The Group's workforce gender ratio in Hong Kong is 75.8% female and 24.2% male, while in Mainland China it is 65.2% female and 34.8% male[99][102] - The Nomination Committee conducts annual reviews of Independent Non-executive Directors' independence and the Board's structure, size, and composition[96][97] - Directors receive regular updates and presentations on the Group's business developments and regulatory changes to facilitate their responsibilities[107] - Newly appointed Directors receive a comprehensive induction package and meetings with external legal advisers to ensure awareness of their responsibilities[106] - The Board Diversity Policy aims to achieve diversity through measurable objectives in skills, experience, cultural background, gender, and age[97] - Independent Non-executive Directors are remunerated by fixed fees and do not participate in the Company's share schemes[97] - The Board conducts periodic performance evaluations to enhance the operations of the Board and its Committees[97] - The Chairman of the Board meets regularly with Independent Non-executive Directors outside the boardroom[97] - Directors are entitled to seek in-house and independent professional advice at the Company's expense[97] - Ms Fang Suk Kwan, Katherine was appointed as an Independent Non-executive Director on 3 January 2023[111] - The Board is responsible for providing overall strategic direction and effective oversight of management, including approval of strategic and business plans, financial budgets, and significant transactions[112] - The Board has delegated authority to the Management Board for day-to-day operations, including development and implementation of corporate strategy, business plans, and financial budgets[114] - The Board has established the Nomination Committee, Remuneration Committee, and Audit Committee to assist in discharging its functions, with each committee having specific written terms of reference[115] - The Nomination Committee currently comprises five Directors, with the majority being Independent Non-executive Directors[116] - The Nomination Committee held three meetings during the year to review the Board's structure, size, and composition, focusing on diversity and independence of Independent Non-executive Directors[120] - The Remuneration Committee held two meetings to review and recommend remuneration packages for Executive Directors and senior management, with a significant proportion linked to corporate and individual performance[124] - The Audit Committee held four meetings to review financial information, oversee financial reporting systems, and assess risk management and internal control systems[127] - The Remuneration Committee recommended the adoption of a new share option scheme and the grant of share options[125] - The Audit Committee reviewed the independence and engagement of the external auditor, as well as their remuneration for audit and non-audit services[127] - The Nomination Committee prepared and nominated a new Independent Non-executive Director for appointment[120] - The Remuneration Committee considered remuneration policies and strategies for the Group[125] - The Audit Committee reviewed the Company's ESG reporting and internal audit processes[127] - The Audit Committee approved the Company's connected transactions and conducted an annual review of continuing connected transactions[127] - The Remuneration Committee recommended the renewal of Directors' and officers' liability insurance policy[128] - The Board held four regular meetings during the year to review the Group's development directions and strategies[130] - Directors' attendance rates for Board Meetings, Board Committee Meetings, and Annual General Meetings were consistently high, with most directors attending all scheduled meetings[131] - The company paid a total of HK$5,078,000 to its external auditor, PricewaterhouseCoopers, including HK$3,593,000 for audit services and HK$1,485,000 for non-audit services such as taxation and information system advisory services[137] - The Board is responsible for evaluating and determining the nature and extent of risks according to its risk appetite, ensuring the establishment of effective risk management and internal control systems[138] - The company's risk management and internal control systems are based on internationally recognized standards and designed to manage, but not eliminate, the risk of failure to achieve business objectives[139] - The Group's risk governance structure is based on the "3 lines of defence" model, including day-to-day operational management, risk and compliance oversight, and independent assurance[140] - The enterprise risk management (ERM) policy clearly defines the roles and responsibilities of the Board, Audit Committee, Management Board, department and operation heads, and Internal Audit[140] - The Group's ERM approach is a structured mechanism for identifying, evaluating, prioritizing, managing, and monitoring risks, categorized into strategic, operational, financial, and compliance risks[143] - Key risks managed and monitored during the year included food safety, supply chain management, site acquisition, project management, and human resources management[146] - Climate change is considered an emerging risk, and further actions will be taken if it becomes a significant threat to business operations[146] - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems for the year ended 31 March 2023, covering financial, operational, and compliance controls[146] - The Audit Committee reviewed the adequacy of resources, staff qualifications, experience, training programs, and budget for internal audit, accounting, financial reporting, and ESG performance and reporting[146] - The Group's Internal Audit team, co-sourced with external consultants, provides independent, objective assurance and consulting services on risk management and internal control[143] - Risk owners are required to submit risk alerts with mitigation plans and regular risk reports to the Management Board and Audit Committee for ongoing review and monitoring[146] - The Board received confirmation from the Management Board on the effectiveness of the risk management and internal control systems, with no significant areas of concern identified[146] - The Group has adopted a clear anti-corruption policy and provides ongoing anti-corruption training to ensure compliance and ethical behavior among employees[147] - The Company has established a Protocol on Malpractice Reporting and Investigation, allowing employees and business partners to report concerns confidentially, with reports directly handled by the Head of Internal Audit[147] - The Company adheres to the Model Code for Securities Transactions by Directors of Listed Issuers, with all Directors confirming compliance during the year ended 31 March 2023[147] - The Group's Disclosure Policy ensures timely and equal dissemination of inside information, with a dedicated Disclosure Team responsible for evaluating and approving disclosures[148] - The Company Secretaries provide governance support to the Board and ensure compliance with professional training requirements under the Listing Rules[149] - The Company's Dividend Policy aims to provide regular and stable dividends, with payouts based on profit available for distribution, historical payout ratios, and consideration of business performance and market conditions[153] - The Shareholders' Communication Policy ensures effective communication with shareholders through various channels, including meetings, publications, and conferences, with regular feedback reported to the Board[154] - The Company had 551 registered shareholders as of 31 March 2023[160] - 24.501% of registered shareholders held 0–1,000 shares, totaling 11,012 shares (0.002% of total issued shares)[162] - 44.827% of registered shareholders held 1,001–5,000 shares, totaling 647,245 shares (0.110% of total issued shares)[162] - 11.615% of registered shareholders held 5,001–10,000 shares, totaling 541,800 shares (0.093% of total issued shares)[162] - 14.701% of registered shareholders held 10,001–100,000 shares, totaling 2,593,937 shares (0.443% of total issued shares)[162] - 4.356% of registered shareholders held 100,001 or more shares, totaling 581,910,039 shares (99.352% of total issued shares)[162] - HKSCC Nominees Limited held 403,673,838 shares as of 31 March 2023[163] - The Company maintained the required 25% public float throughout the financial year ended 31 March 2023[163] - The company's sustainability performance is disclosed in four key pillars: Catering to Customers, Empowering Employees, Focusing on Food, and Preserving the Planet[170] - No purchase, sale, or redemption of listed securities by the company or its subsidiaries during the year ended 31 March 2023[172] - No outstanding convertible securities, options, warrants, or similar rights as of 31 March 2023, except for the Share Option Schemes described in the report[172] - The 2012 Share Option Scheme expired on 10 September 2022, with no share options granted under the scheme as of the report date[178] - The company maintains liability insurance to provide appropriate cover for directors and officers of the group[175] - No management contracts for the administration of the company's business were entered into or existed during the year[176] - No arrangements enabling directors to acquire benefits through shares or debentures of the company or any other body corporate during the year ended 31 March 2023[177] - Total number of ordinary shares available for issue is 58,570,403, representing 10% of the issued shares as of the report date[186] - 24,870,000 share options have been granted under the 2022 Scheme as of the report date[187] - The 2022 Scheme will remain in force until 7 September 2032 unless terminated earlier[190] - The exercise price of options granted is determined based on the highest of: (i) the closing price on the grant date, (ii) the average closing price for the five business days preceding the grant date, and (iii) the nominal value of a share[190] - The maximum entitlement for each participant under the 2022 Scheme shall not exceed 1% of the shares in issue in any 12-month period[189] - The vesting period of options granted is determined at the discretion of the Board[190] - The amount payable on acceptance of the options is HK$1.00[190] - The 2012 Scheme expired on 10 September 2022[182] - The purpose of the share option schemes is to attract and retain high-quality personnel and align the interests of grantees with shareholders[184] - The 2022 Scheme was adopted on 8 September 2022 following a shareholders' resolution[187] - 24,870,000

Financial Performance - The group's total revenue increased to HKD 8,024.0 million for the year ended March 31, 2023, compared to HKD 7,508.8 million in the previous year, representing a growth of approximately 6.9%[2] - Shareholders' profit attributable to the group was HKD 110.4 million, a significant increase from HKD 21.2 million in the previous year, marking a growth of over 419%[2] - The gross profit margin improved to 8.8%, up from 7.3% in the previous year, mainly due to effective control of food and labor costs[14] - Profit attributable to shareholders rose by 420.2% to HKD 110.4 million, up from HKD 21.2 million in the previous year, primarily due to economic recovery[17] - The operating profit for the same period was HKD 203,837, up 55.2% from HKD 131,174 in the previous year[38] - The group reported a total segment profit of HKD 594,991 for the year ended March 31, 2023, compared to HKD 514,220 for the previous year, reflecting a growth of approximately 15.7%[73] - The company reported a pre-tax profit of HKD 144,176,000 for 2023, compared to HKD 50,789,000 in 2022, showing a significant increase of approximately 184%[83] Dividends and Shareholder Returns - The group plans to distribute a final dividend of HKD 0.28 per share, up from HKD 0.18 per share in the previous year, resulting in a total dividend payout ratio of 201.7%[2] - The board proposed a final dividend of HKD 0.28 per share, up from HKD 0.18 per share in the previous year, resulting in a total payout ratio of 201.7% for the year[20] - The proposed final dividend for the year is HKD 0.28 per share, up from HKD 0.18 per share in 2022, representing a 55.6% increase[88] - The total dividend for the year, including an interim dividend of HKD 0.10 per share, amounts to HKD 0.38 per share, up from HKD 0.28 per share in the previous year, reflecting a 35.7% increase[94] Market Expansion and Strategy - The management team is focused on enhancing multi-brand business strategies and improving profitability through digitalization and automation[5] - The group has successfully expanded into new markets beyond traditional dining areas, particularly in residential zones, despite facing challenges during the expansion[5] - The group aims to increase profitability in Hong Kong and expand its store network in mainland China over the next three years, although timelines may need adjustment due to pandemic challenges[7] - The company plans to continue expanding its network in mainland China, anticipating sustained growth as pandemic restrictions ease[11] - The group plans to expand its store network in mainland China, particularly in the Greater Bay Area, despite a cautious approach to market opportunities[36] Operational Improvements and Innovations - The group implemented a digital transformation strategy, enhancing customer dining experiences through self-service kiosks and a new mobile app, which significantly increased mobile orders and membership[23] - The group introduced a new store format with smaller sizes and lower operating costs to improve profit margins in a competitive market[23] - The group is preparing to launch a fully automated rice production line to improve production efficiency in the institutional dining sector[26] - The group is committed to improving food quality and safety in response to supply chain issues affecting one of its brands, Vital Lunch[7] - The group has established a cross-business task force to address rising food and supply chain costs through strategic procurement and menu redesign[35] Employee and Labor Management - The company has a total of 19,555 employees as of March 31, 2023, up from 17,954 the previous year[33] - The group is actively recruiting and training staff to address industry-wide labor shortages and meet long-term business needs[35] Financial Position and Assets - As of March 31, 2023, the company recorded cash of approximately HKD 1,672 million and available bank credit of HKD 873 million[29] - The company's capital expenditure for the review year was HKD 465 million, a decrease from HKD 507 million in the previous year[30] - Total assets as of March 31, 2023, amounted to HKD 7,175,340, an increase from HKD 6,871,846 in the previous year[41] - The group's total liabilities related to lease liabilities were HKD 68,375 for the year ended March 31, 2023, compared to HKD 76,846 in the previous year, reflecting a decrease of approximately 11.0%[72] Government Support and Subsidies - The group received government subsidies related to COVID-19 amounting to HKD 40.9 million during the year, down from HKD 127.8 million in the previous year[2] - Government grants received amounted to HKD 45,201, a decrease from HKD 130,360 in the previous year, primarily due to reduced subsidies related to the COVID-19 pandemic[77] Sustainability and Environmental Initiatives - The company aims to reduce waste by phasing out single-use plastic utensils and adopting more environmentally friendly alternatives[34] - The company has received an "AA" rating in the Hang Seng Sustainable Development Index for eight consecutive years[34] Customer Engagement and Loyalty - The customer relationship management (CRM) program attracted over 3 million members, focusing on increasing member engagement and activities[28] - The number of active members in the "Club 100" program increased threefold to over 1.4 million, enhancing customer engagement and brand loyalty[35]

Financial Performance - The Group's revenue for the first half of FY2022/23 amounted to HK$3,898.2 million, a slight increase from HK$3,870.1 million in 2021[7]. - Profit attributable to shareholders increased to HK$108.7 million, compared to HK$81.2 million in 2021, including government COVID-19 subsidies of HK$40.9 million during the period[7]. - The Group's revenue for the six months ended 30 September 2022 increased by 0.7% to HK$3,898.2 million compared to HK$3,870.1 million in 2021[12]. - Profit attributable to shareholders rose by 33.9% to HK$108.7 million, primarily due to COVID-19 subsidies of HK$40.9 million received from the government during the period[19]. - Profit attributable to equity holders increased by 33.9% to HK$108.7 million for the six months ended 30 September 2022, compared to HK$81.2 million in 2021[21]. - Adjusted net profit decreased by 16.5% to HK$67.8 million, down from HK$81.2 million in the previous year[21]. - Basic earnings per share rose by 34.3% to HK18.8 cents, compared to HK14.0 cents in the same period last year[21]. - The gross profit margin decreased to 8.8% for the six months ended 30 September 2022, down from 9.8% in 2021, mainly due to the adverse impact of the COVID-19 pandemic[15]. Dividends and Shareholder Returns - An interim dividend of HK10 cents was declared for the six months ended 30 September 2022, consistent with the previous year[8]. - The Group declared an interim dividend of HK10 cents per share for the six months ended September 30, 2022, consistent with the previous year[38]. - The company reported a dividend income from listed equity investments of HK$3,062,000 for the six months ended September 30, 2022, compared to HK$6,123,000 in 2021[153]. Cost Management and Operational Efficiency - Administrative expenses decreased by 4.5% to HK$226.9 million during the six months ended 30 September 2022, reflecting effective cost control measures[16]. - The Group continued to focus on cost control and digitalization initiatives to enhance efficiency and productivity during the volatile market conditions[19]. - The Group is addressing rising costs through smart sourcing, menu reengineering, and enhanced business planning[25]. - The Group is focused on improving its cost base, productivity, and efficiency to achieve long-term margin improvement[37]. Market and Business Segments - The Hong Kong business profitability significantly recovered in the second quarter, driven by successful brand and product marketing campaigns, effective cost controls, and digitalisation initiatives[9]. - The Mainland China business faced challenges due to COVID-19 outbreaks in specific cities, but revenue from new shops and cost control measures helped mitigate losses[8]. - Revenue from the Institutional Catering segment increased by 12.3% to HK$378.3 million, while revenue from Quick Service Restaurants and Casual Dining segments saw slight declines[14]. - Revenue from the Institutional Catering division increased by 12.3% to HK$378.3 million (2021: HK$337.1 million) due to successful contract renegotiations and new contracts[27]. - Revenue from Mainland China operations increased by 1.6% to HK$684.2 million (2021: HK$673.5 million), with the South China fast food business experiencing a 5.1% revenue increase to RMB567.8 million despite a 5% decline in same store sales[27]. Digital Transformation and Customer Engagement - Club 100 membership surpassed 1.3 million users, with significant enhancements made to the mobile app to improve user experience[24]. - The Group's online platform, eatCDC.com, recorded significant growth in traffic and sales, aided by partnerships with third-party delivery platforms[24]. - Active customers and sales revenue from digital solutions, including mobile ordering and e-commerce platforms, have seen significant growth[37]. - More than half of all orders are now coming through digital platforms, with up to half of stores using robots for dine-in services[32]. Store Expansion and Development - New store openings were consistent with previous growth trends, despite a more cautious approach due to COVID-related uncertainties[19]. - The number of stores increased to 375 in Hong Kong and 146 in Mainland China as of 30 September 2022[22]. - Café de Coral opened 12 new stores in the first half of the year, reaching a total of 146 stores as of 30 September 2022 (31 March 2022: 136) with 9 new stores planned for the remainder of the financial year[30]. - The rollout of a new store format is being accelerated to enhance productivity and per-square-foot sales[26]. Financial Position and Liquidity - As of September 30, 2022, the Group had cash of approximately HK$1,580.4 million and available banking facilities of HK$875 million[32]. - The Group's current ratio was 0.8 and cash ratio was 0.6 as of September 30, 2022, compared to 1.2 and 0.9 respectively on March 31, 2022[32]. - The Group reported a net current liabilities position of HK$384,731,000 as of 30 September 2022, compared to net current assets of HK$425,513,000 as of 31 March 2022[81]. - The directors believe that the Group will have sufficient working capital to meet its financial obligations in the coming twelve months[81]. - The Group's liquidity risk management involves maintaining sufficient cash and available credit facilities, considering current and expected market conditions, including the impact of COVID-19[93]. Share Award Scheme and Employee Compensation - The Share Award Scheme allows for the awarding of restricted shares, with a total number of shares not exceeding 5% of the total issued shares of the Company[41]. - During the six months ended September 30, 2022, restricted shares were awarded to selected participants under the Share Award Scheme[42]. - A total of 19,924,512 shares have been awarded under the Share Award Scheme, representing approximately 3.40% of the total number of issued shares as of 30 September 2022[46]. - Key management compensation for the six months ended September 30, 2022, totaled HK$21,615,000, slightly down from HK$22,257,000 in 2021[179]. Governance and Compliance - The Audit Committee, comprising four Independent Non-executive Directors and one Non-executive Director, reviewed the unaudited interim results for the six months ended September 30, 2022[61]. - The company complied with all code provisions of the Corporate Governance Code during the six months ended September 30, 2022[57]. - All Directors confirmed compliance with the Model Code regarding securities transactions during the six months ended September 30, 2022[58]. Future Outlook - The Group remains cautiously optimistic about market conditions for the second half of the financial year, anticipating a boost from the reopening of Hong Kong and consumption vouchers[36]. - The Group expects to leverage the festive season in the second half of the financial year to drive additional sales through promotions and marketing activities[37]. - The Group remains confident in achieving its goal of new store openings throughout the Greater Bay Area despite uncertain conditions in Mainland China[37].

Financial Performance - Revenue for the year ended March 31, 2022, was HK$7,508,753, an increase of 11.8% from HK$6,714,255 in 2021[6] - Profit attributable to equity holders decreased significantly to HK$21,214, down 94.1% from HK$359,130 in the previous year[6] - Total assets decreased by 4.0% to HK$6,871,846 from HK$7,154,673[6] - Basic earnings per share fell to HK$0.04, a decline of 93.5% compared to HK$0.62 in 2021[6] - Proposed final dividend is HK$0.18 per share, down 26.3% from HK$0.38 per share in the previous year[6] - Net assets per share decreased to HK$4.83, down 6.8% from HK$5.18[6] - The Group's revenue for the year reached HK$7,508.8 million, an increase from HK$6,714.3 million in the previous year[16] - Profit attributable to shareholders decreased to HK$21.2 million, down from HK$359.1 million in the previous year[16] - COVID-19 relief and subsidies from the government amounted to HK$127.8 million, compared to HK$638.9 million in the previous financial year[16] - Revenue for the year ended March 31, 2022, increased by 11.8% to HK$7,508.8 million compared to HK$6,714.3 million in FY2020/21[29] - Profit attributable to shareholders for FY2021/22 decreased to HK$21.2 million from HK$359.1 million in FY2020/21[18] - Revenue from Hong Kong operations increased by 12.0% due to successful new product launches and growth in takeaway and delivery services[17] - Revenue from Mainland China operations increased by 11.0%, supported by a broad shop network across the Greater Bay Area[17] - The Group recorded COVID-19 relief and subsidies of HK$127.8 million during the year, down from HK$638.9 million in the previous fiscal year[18] - A final dividend of HK$0.18 per share is recommended, with a total dividend payout ratio of 773.6% for the year[17] - The Group's basic earnings per share decreased by 93.5% to HK4 cents from HK62 cents in FY2020/21[36] - The Group's distributable reserves as of March 31, 2022, amounted to approximately HK$844.2 million[156] Operational Challenges - During the peak of the fifth wave of COVID-19, 109 stores were closed, resulting in a cumulative loss of 2,755 business days, approximately 17% of capacity[9] - The Group experienced a cumulative loss of 2,755 shop operating days in Hong Kong due to the fifth wave of COVID-19[25] - The fifth wave of COVID-19 led to the temporary closure of 70 shops and a cumulative loss of 1,539 shop operating days in February and March 2022[43] - The fifth wave of COVID-19 led to the temporary closure of 26 Casual Dining shops and a cumulative loss of 746 shop operating days[46] - The Institutional Catering business faced a cumulative loss of 470 shop operating days due to the fifth wave of COVID-19[47] - The South China fast food business recorded negative same store sales growth of 1% for the year due to strict pandemic restrictions[48] Strategic Initiatives - The company plans to continue expanding its market presence and enhancing its product offerings[8] - The company is focused on new product development and technological advancements to drive future growth[8] - The Group aims to improve profit margins from low to high single digits within the next three years[11] - The Group plans to grow its retail network to 280 stores in the Greater Bay Area over the next three years while maintaining healthy profitability[11] - The Group's strategic focus includes consolidating operations and increasing investment in digital infrastructure[11] - The Group plans to enhance margins in Hong Kong and expand its network throughout the Greater Bay Area over the next three years[28] - The Group is focusing on digitalization and automation to improve manpower productivity and customer experience[43] - The Group plans to take advantage of market weakness to open new stores and build brand awareness[50] - The Group's digital platform expansion aims to unlock extra value and meet three-year financial objectives[57] - The Group's commitment to enhancing shareholder interests is reflected in its corporate governance practices and management strategies[75] Governance and Management - The company has a strong governance structure with multiple committees including Audit, Remuneration, and Nomination, ensuring oversight and strategic direction[63][64] - The leadership team includes professionals with advanced degrees from reputable institutions, enhancing the company's strategic capabilities[62][64] - The company is focused on maintaining high standards of corporate governance and transparency through its independent directors[63][64] - The Board consists of ten members, including four Non-executive Directors, four Independent Non-executive Directors, and two Executive Directors[79] - The Company has a structured process for the appointment and re-election of Directors, ensuring compliance with Listing Rules and internal regulations[89] - The Board is responsible for providing overall strategic direction and effective oversight of management, including approval of strategic and business plans and financial budgets[93] - The Company encourages Directors to participate in external continuous improvement programs, with related expenses covered by the Company[90] - The Company has adhered to all provisions of the corporate governance code effective during the year ending March 31, 2022[78] Shareholder Engagement - The Company actively communicates with shareholders through various channels, including meetings and corporate publications[143] - Management meets with institutional investors and analysts to provide updates on business progress and developments[147] - The Company did not convene any other Shareholders' meetings during the year ended 31 March 2022, except for the annual general meeting[146] Risk Management - The Group's risk management and internal control systems are based on internationally recognized standards and are designed to manage risks rather than eliminate them[120] - The risk governance structure follows a "3 lines of defense" model, which includes operational management, risk and compliance oversight, and independent assurance[121] - The Audit Committee provides oversight and review on risk management, financial reporting, and internal control systems[124] - Key risks identified during the year include food safety, supply chain management, site acquisition, project management, and human resources management[129] - Climate change is recognized as an emerging risk, with further actions planned if it poses a significant threat to business operations[129] Corporate Social Responsibility - The Group donated HK$500,000 worth of dining vouchers to support families impacted by COVID-19 through the Share for Good platform[56] - The pilot run of the "Bon Appétit Café" Food Assistance Programme provided HK$2 million of short-term food assistance to 500 beneficiaries, expanding to a total of HK$12 million for 3,000 eligible recipients in its first year[56] - The Group made charitable and other donations totaling HK$259,000 during the year[156] Future Outlook - The Group remains cautiously optimistic about the prospects for the coming year, anticipating a gradual return to normal market conditions from the second quarter onwards[28] - The Group remains confident in leveraging its market leadership to quickly recapture growth opportunities when the pandemic situation is under control[47] - The Group's business is well positioned to build revenue and accelerate growth over the coming years[59]

Financial Performance - The Group's revenue for the first half of FY2021/22 increased to HK$3,870.1 million, up 20.0% from HK$3,225.7 million in 2020[7]. - Profit attributable to shareholders amounted to HK$81.2 million, a decrease of 50.0% compared to HK$162.3 million in the previous year, which included government COVID-19 subsidies of HK$338.9 million[7]. - Revenue from Hong Kong operations increased by 19.7% compared to the same period last year, driven by strategies to boost takeaway and delivery sales and the launch of new products[7]. - Business growth in Mainland China saw a revenue increase of 21.2%, despite disruptions from isolated COVID-19 outbreaks[9]. - The Group recorded revenue of HK$3,870.1 million for the six months ended 30 September 2021, representing a 20% increase from HK$3,225.7 million in 2020[11]. - Profit attributable to equity holders decreased by 50.0% to HK$81.2 million, compared to HK$162.3 million in the same period last year, primarily due to the absence of COVID-19 subsidies[23]. - Gross profit margin increased to 9.8% for the six months ended 30 September 2021, up from 4.3% in 2020, attributed to improved business recovery[15]. - The Group's basic earnings per share decreased 50.0% to HK14.0 cents for the six months ended 30 September 2021[27]. - Profit for the period decreased to HK$81,983,000, down 49.7% from HK$162,818,000 in the same period last year[90]. - Total comprehensive income for the period was HK$85,830,000, a decline of 49.3% compared to HK$169,515,000 in the previous year[90]. Revenue Segmentation - Revenue from the Quick Service Restaurants segment rose by 15.5% to HK$2,370.0 million, while Casual Dining increased by 35.5% to HK$415.9 million[13]. - Revenue from the Casual Dining business increased by 35.5% to HK$415.9 million compared to HK$306.9 million in the same period last year[39]. - Institutional Catering revenue increased by 37.5% to HK$337.1 million from HK$245.1 million in the previous year, despite being heavily affected by pandemic-related restrictions[41]. - Revenue from Mainland China increased by 21.2% to HK$673.5 million, compared to HK$555.9 million in 2020[43]. - The South China fast food business experienced a 12.1% increase in revenue to RMB540.5 million, with same store sales growth of 7%[43]. Cost and Expenses - Administrative expenses increased by 4.4% to HK$237.7 million during the six months ended 30 September 2021[16]. - Staff costs accounted for 32.4% of revenue, increasing to HK$1,254.3 million from HK$1,146.0 million in the previous year[19]. - Overall food costs have surged due to global supply chain disruptions, placing additional pressure on margins[31]. - Employee benefit expenses (excluding share-based compensation) rose to HK$1,240,002, compared to HK$1,127,387 in the previous year, marking a 9.9% increase[186]. - Total administrative expenses increased to HK$237,653 from HK$227,620 in the previous year, reflecting a 0.5% increase[186]. Dividends and Shareholder Returns - An interim dividend of HK10 cents was declared for the six months ended 30 September 2021, consistent with the previous year[9]. - The Board declared an interim dividend of HK10 cents per share for the six months ended 30 September 2021, unchanged from the previous year[28]. - The Company declared a dividend of HK$162,756,000 during the period, impacting retained earnings significantly[92]. Strategic Initiatives and Future Outlook - The Group plans to expedite its network expansion in the Greater Bay Area in the second half of the year[9]. - The Group plans to continue enhancing productivity and efficiency through manpower deployment and digitalization initiatives[12]. - The Group is actively looking to expand its casual dining brand outlets and introduce more automated processes at retail outlets to improve productivity and operational efficiency[40]. - The Group aims to increase market penetration in the Greater Bay Area by prioritizing network development[52]. - The Group is cautiously optimistic about future growth as it adapts to the new normal[52]. Digitalization and Technology - The Group is implementing an integrated Online-Merge-Offline (OMO) approach to enhance distribution and convenience, leveraging both its own online channels and third-party aggregators[36]. - Digitalisation efforts included a new e-coupon system to drive repeat purchases and improve promotion effectiveness[43]. - The application of digital solutions, including mobile ordering and self-ordering kiosks, has significantly increased active customer numbers and sales[50]. - The Group plans to accelerate digitalization efforts and implement a comprehensive OMO strategy to enhance customer experience[50]. Shareholder Information and Governance - The Company complied with all code provisions set out in the Corporate Governance Code during the six months ended 30 September 2021[74]. - All Directors confirmed compliance with the required standards set out in the Model Code regarding securities transactions during the six months ended 30 September 2021[75]. - The Group's financial reporting process and internal control were supervised by the Audit Committee during the reporting period[76]. - The Company adopted the recommended best practices of the Corporate Governance Code as relevant and practicable during the reporting period[74]. Cash Flow and Liquidity - As of September 30, 2021, the Group had cash of approximately HK$1,940.6 million and external borrowings of HK$1,130 million[44]. - Net cash generated from operating activities for the six months ended September 30, 2021, was HK$690,795, a decrease of 6.5% compared to HK$739,177 for the same period in 2020[97]. - Cash and cash equivalents at the end of the period were HK$1,940,598, up from HK$1,200,397 at the end of the previous period[97]. - The Group's liquidity risk management involves maintaining sufficient cash and available credit facilities, considering current and expected market conditions, including the impact of COVID-19[112]. Asset Management - Total assets as of September 30, 2021, were HK$7,055,635, a decrease from HK$7,154,673 as of March 31, 2021[84]. - Non-current assets increased to HK$4,656,487 from HK$4,639,142, showing a slight growth[83]. - The total number of issued shares of the Company as of September 30, 2021, was 585,704,033[72]. - The Group's total trade payables as of September 30, 2021, were HK$229,529,000, an increase from HK$178,183,000 as of March 31, 2021[158].