Core Viewpoint - Tsui Wah Holdings reported a decline in revenue and net profit for the fiscal year ending March 31, 2025, indicating challenges in both local and mainland markets [1][2]. Financial Performance - Revenue decreased by 5.04% year-on-year to HKD 906.04 million [1][2]. - Net profit attributable to shareholders fell by 68.42% to HKD 12.34 million [1][2]. - Basic earnings per share dropped by 67.8% to HKD 0.92 [2]. Revenue Breakdown - Revenue from Hong Kong increased by 1.8% to HKD 514.60 million [2][3]. - Revenue from mainland China decreased by 14.1% to HKD 370.59 million [2][5]. - Revenue from other regions rose by 22.2% to HKD 20.86 million [2]. Restaurant Operations - The total number of restaurants remained stable at 72, with 6 closures and 6 openings during the reporting period [3][5]. - In Hong Kong, the number of restaurants increased to 31, with 4 new openings and 2 closures [3][5]. - In mainland China, the number of restaurants decreased to 32, with 4 closures and no new openings [5]. Cost and Market Conditions - Property rental and related expenses increased by 10.59% to HKD 59.86 million [3]. - The mainland market faced intensified price competition and rising ingredient costs due to tariff adjustments [5]. - The company is focusing on cost control and seeking quality suppliers to mitigate external impacts [5]. Future Outlook - Tsui Wah Holdings maintains a cautiously optimistic outlook for future development, planning to expand in traditional markets while exploring new growth opportunities [5].

[Annual Results Announcement](index=1&type=section&id=Annual%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For FY2025, the Group's total revenue decreased by 5%, with profit attributable to equity holders significantly down 68.4%, primarily due to weak markets in Hong Kong and mainland China, despite a slight increase in restaurant count FY2025 Performance Summary | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | 906,040 | 954,128 | -5% | | Hong Kong Revenue | 514,598 | 505,713 | +1.8% | | Mainland China Revenue | 370,585 | 431,348 | -14.1% | | **Profit for the Year** | 11,379 | 32,970 | -65.5% | | Profit Attributable to Equity Holders | 12,342 | 39,087 | -68.4% | | **Basic Earnings Per Share** | 0.92 HK cents | 2.86 HK cents | -67.8% | Restaurant Count Changes | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 31 | 29 | | Mainland China | 32 | 36 | | Macau | 3 | 3 | | Singapore | 6 | 4 | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial statements, indicating a significant decrease in profit before tax due to revenue decline and reduced other income, despite lower operating costs, while net current assets notably decreased due to a substantial drop in cash and cash equivalents Consolidated Statement of Profit or Loss Summary | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 906,040 | 954,128 | | Cost of Inventories Sold | (234,162) | (246,127) | | Staff Costs | (311,330) | (314,761) | | Depreciation and Amortization | (119,478) | (134,691) | | Profit Before Tax | 14,690 | 34,747 | | Profit for the Year | 11,379 | 32,970 | Consolidated Statement of Financial Position Summary | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 606,662 | 580,422 | | Total Current Assets | 221,251 | 309,902 | | Of which: Cash and Cash Equivalents | 146,578 | 235,013 | | Total Current Liabilities | 211,079 | 242,483 | | Net Assets | 440,715 | 485,314 | | Total Equity | 440,715 | 485,314 | [Summary of Notes to the Financial Statements](index=6&type=section&id=Summary%20of%20Notes%20to%20the%20Financial%20Statements) This section clarifies financial statement basis, accounting policies, and segment information, noting the Group's main business is catering with revenue primarily from Hong Kong and mainland China, where mainland revenue significantly declined, and total dividends for the year were substantially reduced Revenue from External Customers by Geographical Location | Region | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong | 514,598 | 505,713 | | Mainland China | 370,585 | 431,348 | | Other | 20,857 | 17,067 | - Total dividends for the current year were **1.0 HK cents per share**, a significant decrease from **3.5 HK cents per share** in FY2024. The Board decided not to declare a second interim dividend[29](index=29&type=chunk)[30](index=30&type=chunk) Earnings Per Share Calculation | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders (Thousand HKD) | 12,342 | 39,087 | | Basic Earnings Per Share | 0.92 HK cents | 2.86 HK cents | | Diluted Earnings Per Share | 0.92 HK cents | 2.85 HK cents | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) Management analyzes current challenges and opportunities, highlighting intense competition in Hong Kong's catering industry due to rising costs and cross-border consumption, while mainland China faces increased operational pressure from price wars and rising costs, leading to a 5% revenue decrease and significant profit decline attributed to an unfavorable macroeconomic environment and intensified market competition [Industry Overview](index=15&type=section&id=Industry%20Overview) Hong Kong's catering industry faces challenges from rising operating costs, labor shortages, and changing consumer preferences, with cross-border spending by residents intensifying local price sensitivity and competition, contributing to a continued economic downturn - Hong Kong's catering industry faces multiple challenges, including rising operating costs (food, rent, labor), labor shortages, and changing consumer preferences[35](index=35&type=chunk) - The trend of Hong Kong residents spending in mainland China has intensified local market price sensitivity, while a decrease in visitors to Hong Kong (especially mainland tourists) further exacerbates economic challenges[35](index=35&type=chunk)[36](index=36&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) As of March 31, 2025, the Group operated 72 restaurants, with Hong Kong seeing a net increase despite reduced tourist spending and cross-border consumption, while mainland China faced increased operational pressure and a net decrease in restaurants, adopting a cautious expansion strategy, and Singapore and Macau businesses performed strongly - The Hong Kong market faces challenges including increased price sensitivity among tourists leading to lower spending, and competitive pressure from local residents spending in mainland China, with **2 restaurants closed and 4 new ones opened** in Hong Kong during the year[38](index=38&type=chunk) - Mainland China's catering market exhibits a coexistence of "rational consumption and experience upgrading," with intensified price wars and rising ingredient costs; the Group adopted a cautious expansion strategy, closing **4 restaurants** during the year and opening **2 new ones** after year-end[39](index=39&type=chunk)[41](index=41&type=chunk) - Singapore operations, through collaboration with Jumbo Group, increased total restaurants to **6**, benefiting from stable tourist and local demand, while Macau operations enjoyed ample customer traffic due to booming tourism[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The Group's revenue decreased by 5% this year, primarily due to unfavorable economic conditions and intensified competition in Hong Kong and mainland China, while gross profit margin remained stable, and despite reduced operating expenses, profit for the year substantially decreased - Revenue decreased by **5%** year-on-year to **HKD 906 million**, primarily due to unfavorable economic conditions in Hong Kong and mainland China, increased cross-border traffic from Hong Kong, and intense competition in mainland China's catering industry[46](index=46&type=chunk) - Cost of inventories sold as a percentage of revenue remained at **25.8%**, indicating the Group's effectiveness in controlling food costs[47](index=47&type=chunk) - Other operating expenses decreased by **19.7%** year-on-year, mainly due to a significant reduction in impairment losses recognized on property, plant and equipment, and right-of-use assets during the year[53](index=53&type=chunk) - Profit for the year was approximately **HKD 11.4 million**, a significant decrease from **HKD 33 million** last year, consistent with the factors contributing to the revenue decline[57](index=57&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily relies on internal cash flow and listing proceeds, with cash and cash equivalents decreasing significantly as of March 31, 2025, leading to a current ratio drop from 1.3 to 1.0 times, while maintaining a 0% gearing ratio with no interest-bearing bank borrowings Liquidity Ratios | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 146.6 Million HKD | 235.0 Million HKD | | Current Ratio | 1.0x | 1.3x | | Gearing Ratio | 0% | 0% | [Outlook](index=23&type=section&id=Outlook) The Group plans to diversify its business by exploring new platforms, developing new brands, and investigating new business models, with strategic priorities including accelerating expansion into overseas markets, strengthening marketing, and actively promoting delivery services, while continuing strict cost control to maintain profit margins and achieve sustainable growth - The Group plans to diversify its business by exploring new platforms, developing new brands, and investigating other new business models[61](index=61&type=chunk) - Strategically, the Group will accelerate its entry into overseas markets and the Greater Bay Area, leveraging its partnership with Jumbo Group in Singapore to seek development opportunities in Southeast Asia[61](index=61&type=chunk) - To enhance efficiency, the Group will continue to implement cost control measures (such as rent and labor costs) and strengthen its food delivery business[62](index=62&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers dividends, closure of register of members, corporate governance, and audit committee review, noting total dividends for the year were 1.0 HK cents per share with no second interim dividend declared, and the company confirmed compliance with the Corporate Governance Code, with full-year results reviewed by the Audit Committee - The Board declared and paid an interim dividend of **1.0 HK cents per share** for the current year and resolved not to declare a second interim or final dividend[64](index=64&type=chunk) - To determine shareholders' eligibility to attend the Annual General Meeting, the register of members will be closed from **August 8 to August 13, 2025**, for share transfer registration[65](index=65&type=chunk) - The Company confirmed its compliance with all applicable code provisions of the Corporate Governance Code throughout the current year and up to the date of this announcement[67](index=67&type=chunk) - The Audit Committee has reviewed the Group's consolidated financial statements and full-year results for the current year and is of the opinion that they were prepared in compliance with applicable accounting standards and the Listing Rules[70](index=70&type=chunk)

Group 1 - The core viewpoint of the news highlights the recent performance of Tsui Wah Holdings, which saw a stock price increase of 9.76% on June 9, despite a cumulative decline of 5.09% over the past month and 7.66% year-to-date, underperforming the Hang Seng Index by 18.61% [1] - Financial data shows that for the period ending September 30, 2024, Tsui Wah Holdings reported total revenue of 404 million HKD, a year-on-year decrease of 9.85%, and a net profit attributable to shareholders of 5.79 million HKD, down 4.8% year-on-year [1] - The company's gross profit margin stands at 74.21%, with a debt-to-asset ratio of 45.98% [1] Group 2 - Tsui Wah Holdings is a chain restaurant group and the first tea restaurant chain listed on the Hong Kong Stock Exchange, operating in nine cities including Hong Kong, Macau, Shenzhen, Guangzhou, and Shanghai [2] - The company emphasizes the promotion of healthy and high-quality Hong Kong dining culture, maintaining strict standards for food quality, hygiene, and service [2] - Tsui Wah Holdings aims to provide quality ingredients and has a service philosophy of "Fast, Beautiful, and Right," focusing on efficiency and high-quality food presentation [2]

Revenue Performance - Revenue for the six months ended September 30, 2024, decreased by 9.8% to approximately HKD 448.32 million compared to HKD 497.29 million in 2023[15] - Revenue from Hong Kong operations decreased by 6.4% to HKD 241.86 million, while revenue from mainland China fell by 15.3% to HKD 195.86 million[15] - The group's revenue for the review period was approximately HKD 448.3 million, a decrease of about 9.8% compared to the previous period's revenue of approximately HKD 497.3 million, primarily due to the economic downturn in Hong Kong and mainland China[71] - Total revenue for the six months ended September 30, 2024, was HKD 448.32 million, a decrease of 9.8% from HKD 497.29 million in the same period of 2023[95] Profitability - Profit attributable to the company's owners remained stable at approximately HKD 6.42 million, a decrease of 4.8% from HKD 6.75 million in the previous year[15] - The group reported a profit attributable to shareholders of approximately HKD 6.4 million for the same period[46] - The group reported a profit attributable to shareholders of approximately HKD 6.4 million for the review period, compared to HKD 6.7 million in the previous period[80] - The company's net profit attributable to ordinary shareholders for the review period was approximately HKD 6,423,000, a decrease from HKD 6,747,000 in the previous period[168] Expansion Plans - The company opened its first overseas store in Singapore in early October 2024, marking a significant milestone in its expansion strategy[18] - The company plans to open a new location for "Twenty One" in Kowloon Bay by the end of 2024 and a fifth Tsui Wah restaurant in Singapore[20] - The group plans to open a new restaurant next to Shanghai Fudan University, marking its first entry into the university dining market[39] - The group is committed to strategic expansion and plans to deepen collaborations with local tourism agencies to enhance brand visibility in Macau[51] - The group is strategically planning to expand its retail network to capitalize on government initiatives aimed at stimulating local consumption and attracting more tourists in mainland China, Hong Kong, Macau, and Singapore[89] Operating Expenses and Costs - Operating expenses, particularly for labor, rent, and utilities, have been rising, posing challenges to the company's operations[28] - The cost of goods sold was approximately HKD 115.6 million, down about 11.8% from HKD 131 million in the previous period, representing 25.8% of total revenue[52] - Employee costs decreased by approximately 5.9% to about HKD 152.6 million from approximately HKD 162.1 million in the previous period, due to more prudent management and control of employee-related expenses[75] - Other operating expenses decreased by about 30.3%, from approximately HKD 89.8 million in the previous period to about HKD 62.6 million, representing about 14.0% of the group's revenue during the review period[75] Financial Position - The group’s cash and cash equivalents were approximately HKD 169.5 million as of September 30, 2024, a decrease of about HKD 65.5 million from HKD 235 million on March 31, 2024[56] - The group maintains a zero debt ratio, with no interest-bearing bank borrowings as of September 30, 2024[57] - The net asset value as of September 30, 2024, was HKD 454.098 million, a decrease from HKD 485.314 million as of March 31, 2024[101] - Current assets totaled HKD 252,446,000, down from HKD 309,902,000 as of March 31, 2024, indicating a decrease of approximately 18.5%[124] - Current liabilities were HKD 218,962,000, a decrease from HKD 242,483,000 as of March 31, 2024, reflecting a reduction of about 9.7%[124] Operational Challenges - The company maintains a cautious outlook on operational prospects due to unpredictable global economic conditions[28] - The group continues to face significant challenges in the food and beverage industry due to economic conditions, leading to intensified price competition and rising costs[67] - The management expressed confidence in the long-term prospects of the company, thanking stakeholders for their support[112] Employee and Service Quality - The company aims to strengthen and expand its business in Macau by optimizing internal operations and enhancing service quality[29] - The company has implemented comprehensive training programs for employees to enhance service quality and operational safety[111] - The company aims to diversify its brand offerings to improve customer satisfaction[111] Cash Flow and Investments - Operating cash flow generated from operations was HKD 29,968,000, down 65.7% from HKD 87,446,000 in the previous year[doc id='128'] - The net cash flow from operating activities was HKD 31,532,000, a decline of 65.5% compared to HKD 91,524,000 in 2023[doc id='128'] - The net cash flow from investing activities was HKD (2,721,000), a significant decrease from HKD 82,573,000 in 2023[doc id='128'] - Financing activities resulted in a net cash outflow of HKD (95,010,000), down from HKD (130,950,000) in the previous year[doc id='128'] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.01 per share, consistent with the previous period[93] - The company declared an interim dividend of HKD 0.01 per share, consistent with the previous interim period[doc id='167']

Revenue Performance - Revenue for the six months ended September 30, 2024, decreased by 9.8% to HKD 448.32 million compared to HKD 497.285 million in the same period last year[3] - Hong Kong revenue declined by 6.4% to HKD 241.856 million, while Mainland China revenue dropped by 15.3% to HKD 195.861 million[3] - Other revenue, primarily from a joint venture, increased by 40.7% to HKD 10.603 million[3] - Total revenue from external customers for the six months ended September 30, 2024, was HK$448,320 thousand, compared to HK$497,285 thousand in the same period in 2023[23] - Revenue from Hong Kong decreased to HK$241,856 thousand in 2024 from HK$258,472 thousand in 2023[23] - Revenue from Mainland China declined to HK$195,861 thousand in 2024 from HK$231,276 thousand in 2023[23] - Revenue from other regions increased to HK$10,603 thousand in 2024 from HK$7,537 thousand in 2023[23] - Total revenue for the six months ended September 30, 2024, was HK$448.32 million, compared to HK$497.285 million in the same period in 2023, representing a decrease of approximately 9.8%[28] - Restaurant operation revenue decreased to HK$436.436 million in 2024 from HK$487.263 million in 2023, a decline of approximately 10.4%[28] - Food sales revenue increased to HK$11.884 million in 2024 from HK$10.022 million in 2023, an increase of approximately 18.6%[28] - Revenue decreased by 9.8% to approximately HKD 448.3 million during the review period[55] - Revenue for the review period was approximately HKD 448.3 million, a decrease of 9.8% compared to the previous period's HKD 497.3 million, primarily due to economic downturns in Hong Kong and mainland China[74] Profitability and Earnings - EBITDA decreased by 7.9% to HKD 69.685 million, and net profit attributable to owners of the company fell by 4.8% to HKD 6.423 million[3] - Basic earnings per share decreased by 4.1% to 0.47 HK cents[3] - Total comprehensive income for the period was HKD 6.106 million, compared to a loss of HKD 11.432 million in the same period last year[9] - Net profit attributable to shareholders remained stable at approximately HKD 6.4 million[55] - The group recorded revenue of approximately HKD 448.3 million, a decrease of 9.8% compared to the previous period, with a net profit attributable to owners of approximately HKD 6.4 million[64] - The company's pre-tax profit for the six months ended September 30, 2024, included a government subsidy of HK$449,000 from the Chinese government[32] - Basic earnings per share for the period ended September 30, 2024, were calculated based on a profit attributable to ordinary shareholders of HK$6.423 million[39] Restaurant Operations and Expansion - The total number of restaurants decreased to 69 as of September 30, 2024, from 72 as of March 31, 2024[3] - The group operates a total of 69 restaurants across Hong Kong, Macau, Mainland China, and Singapore as of September 30, 2024[64] - The group closed 2 restaurants in Hong Kong and Mainland China respectively, while opening 1 new restaurant in Hong Kong during the review period[66] - The group plans to open a new Tsui Wah restaurant near Fudan University's EMBA building in Shanghai, marking its first entry into the university catering market[59] - The group will open a new "21 Hall" restaurant in Kowloon Bay and a fifth Tsui Wah restaurant in Singapore by the end of 2024[60] - The group's Singapore operations include 4 Tsui Wah restaurants, with a new branch opened at Clarke Quay Central in January 2024, showing steady growth in foot traffic and sales[70] - The company successfully opened its first overseas branch of "Jian Xin Hao Shanghai Sheng Jian Huang" in Singapore in early October 2024[56] Financial Position and Assets - Cash and cash equivalents decreased to HKD 169.528 million as of September 30, 2024, from HKD 235.013 million as of March 31, 2024[11] - Property, plant, and equipment decreased to HKD 141.398 million as of September 30, 2024, from HKD 157.879 million as of March 31, 2024[11] - Investment in joint ventures increased to HKD 93.355 million as of September 30, 2024, from HKD 75.853 million as of March 31, 2024[11] - Total current liabilities decreased to HK$218,962 thousand as of September 30, 2024, from HK$242,483 thousand as of March 31, 2024[13] - Net current assets decreased to HK$33,484 thousand as of September 30, 2024, from HK$67,419 thousand as of March 31, 2024[13] - Total assets minus current liabilities decreased to HK$621,672 thousand as of September 30, 2024, from HK$647,841 thousand as of March 31, 2024[13] - Total non-current liabilities increased to HK$167,574 thousand as of September 30, 2024, from HK$162,527 thousand as of March 31, 2024[13] - Net assets decreased to HK$454,098 thousand as of September 30, 2024, from HK$485,314 thousand as of March 31, 2024[13] - Non-current assets as of September 30, 2024, totaled HK$531.043 million, compared to HK$526.483 million as of March 31, 2024, showing a slight increase[27] - Accounts receivable as of September 30, 2024, totaled HK$4.027 million, compared to HK$2.636 million as of March 31, 2024[42] - Accounts receivable from joint ventures increased to HKD 1,672,000 as of September 30, 2024, compared to HKD 1,308,000 as of March 31, 2024[43] - Accounts payable aged over two months decreased to HKD 758,000 as of September 30, 2024, from HKD 872,000 as of March 31, 2024[45] - Capital commitments for property leasehold improvements amounted to HKD 7,327,000 as of September 30, 2024[45] - Cash and cash equivalents decreased by HKD 65.5 million to HKD 169.5 million as of September 30, 2024, compared to HKD 235.0 million as of March 31, 2024[87] - Total current assets decreased to HKD 252.4 million from HKD 309.9 million, and current liabilities decreased to HKD 219 million from HKD 242.5 million, resulting in a current ratio of 1.2x (previously 1.3x)[88] - The company has no interest-bearing bank borrowings, maintaining a debt-to-asset ratio of 0%[88] - Contingent liabilities decreased to HKD 1.7 million from HKD 2.9 million, related to bank guarantees provided to landlords in lieu of rental deposits[93] Costs and Expenses - Cost of goods sold decreased by 11.8% to HKD 115.6 million, accounting for 25.8% of revenue, down from 26.4% in the previous period, due to effective cost control measures[76] - Gross profit decreased by 9.1% to HKD 332.7 million, driven by economic challenges in Hong Kong and mainland China[77] - Employee costs decreased by 5.9% to HKD 152.6 million, reflecting more prudent management of related expenses[78] - Depreciation and amortization expenses totaled HKD 22.2 million, representing 5.0% of revenue, while right-of-use asset depreciation was HKD 41.3 million, accounting for 9.2% of revenue[79] - Other operating expenses decreased by 30.3% to HKD 62.6 million, primarily due to reduced impairment losses on right-of-use assets and property, plant, and equipment[81] - Employee headcount decreased to 1,619 from 1,700, with employee costs decreasing by 5.8% to HKD 152.6 million[95] Strategic Measures and Future Plans - The group has implemented strategic measures to mitigate the impact of economic downturns, including optimizing products, innovating business models, and enhancing online platform marketing[68] - The group remains confident in its core strategy of establishing one flagship store per region and multiple Tsui Wah Express outlets in Mainland China[69] - The company plans to deepen cooperation with local tourism agencies and business partners in Macau to develop market-specific products and enhance brand influence[73] - The company aims to optimize internal operations, improve service quality, and reduce costs to strengthen competitiveness in Macau's rapidly developing market[73] - The company plans to strategically expand its retail network to capitalize on government measures aimed at stimulating local consumption and attracting more tourists[100] - Net proceeds from the listing amounted to approximately HKD 794.4 million after deducting underwriting fees and related expenses[104] - Net proceeds of HKD 794.4 million were allocated as follows: 20% (HKD 158.9 million) for opening new restaurants and delivery centers in Hong Kong, 35% (HKD 278.0 million) for opening new restaurants in mainland China, 10% (HKD 79.4 million) for building a new central kitchen in Hong Kong, 20% (HKD 158.9 million) for building new central kitchens in Shanghai and South China, 5% (HKD 39.8 million) for upgrading IT systems and additional working capital, and 10% (HKD 79.4 million) for general corporate purposes[105] - As of September 30, 2024, HKD 50.6 million of the net proceeds remained unused, primarily intended for the construction of a new central kitchen in South China[105] - The company plans to utilize approximately HKD 30.0 million of the unused proceeds for the South China kitchen by Q4 2025, with the remaining HKD 20.6 million reserved for a potential Shanghai kitchen[107] - The company operates 27 restaurants in South China and is currently seeking a suitable location for the new South China kitchen[107] - The company has no immediate plans to establish a Shanghai kitchen due to the limited number of restaurants in the Shanghai area[107] - The company will further evaluate the necessity of establishing a Shanghai kitchen before the fiscal year ending March 31, 2025[107] Dividends and Shareholder Returns - The company declared an interim dividend of HK$0.01 per share for the period ended September 30, 2024, unchanged from the previous period[38] - An interim dividend of HKD 0.01 per share will be paid to shareholders registered by December 19, 2024[102] Awards and Recognition - The group has received multiple awards, including the Global Brand Award 2024 for Best Traditional Chain Restaurant (Hong Kong) and the Market Leader Award 2023/2024 for the Greater Bay Area fast food market[61] Joint Ventures and Sales - Sales to joint ventures increased to HKD 10,239,000 for the six months ended September 30, 2024, compared to HKD 7,472,000 for the same period in 2023[47] - Short-term employee benefits increased to HKD 6,033,000 for the six months ended September 30, 2024, from HKD 4,020,000 for the same period in 2023[49] Capital Expenditures - The company purchased property, plant, and equipment worth HK$2.721 million during the review period, significantly lower than the HK$17.427 million in the previous period[41]

Financial Performance - Total revenue for the fiscal year increased by approximately 12.8% to HKD 954,100,000, with a profit attributable to shareholders of about HKD 39,000,000[5] - The group successfully turned a loss into profit, significantly improving profitability after excluding a one-time gain of HKD 84,200,000 from property sales in the previous year[5] - The group's revenue for the year was approximately HKD 954,100,000, an increase of about 12.8% compared to HKD 845,800,000 for the previous year[22] - The group recorded a profit attributable to shareholders of approximately HKD 39,000,000, significantly improving from the previous year's performance when a one-time gain of HKD 84,200,000 was recorded from property sales[22] - The group's gross profit for the year was approximately HKD 708,000,000, an increase of 15.1% from HKD 615,000,000 in the previous year[24] - The group's profit for the year was approximately HKD 33,000,000, a decrease from HKD 55,900,000 in 2023, primarily due to the sale of certain properties[34] Revenue and Growth Strategies - The total restaurant revenue in Hong Kong for Q1 2024 rose to HKD 28.204 billion, an increase of approximately 2.8% from Q4 2023[12] - The group is planning to expand its retail network, including reopening restaurants in key tourist areas such as Central and Tsim Sha Tsui in Hong Kong[8] - The group is expanding its presence in Macau and Singapore, with plans to open new locations for its brand "Jian Xin Hao Shanghai Sheng Jian Huang"[8] - The group is optimistic about future growth opportunities as local governments plan promotional activities to stimulate consumption and attract tourists[8] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[44] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on expanding the menu offerings[44] - Market expansion plans include opening 10 new locations in key urban areas, targeting a 25% increase in market share[44] Operational Efficiency and Cost Management - The group aims to enhance operational efficiency by developing its own Point of Sale (POS) system to improve automation and control costs[8] - Management is taking decisive measures to control costs and review regular expenses to maintain profit margins[39] - The cost of goods sold for the year was approximately HKD 246,100,000, representing an increase of about 6.6% from HKD 230,800,000 in the previous year, with the cost as a percentage of revenue decreasing to 25.8% from 27.3%[23] - Employee costs for the year were approximately HKD 314,800,000, an increase of about 6.4% from HKD 295,800,000 in the previous year, attributed to the increase in revenue[25] - Other operating expenses rose by approximately 7.3% to about HKD 151,300,000, accounting for 15.9% of the group's revenue[30] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code since January 2022, emphasizing high integrity and transparency to enhance shareholder value[60] - The board of directors held six meetings during the year, with attendance rates for executive directors averaging 83.33% and for independent non-executive directors at 100%[68] - The chairman and the CEO roles are separated, ensuring effective leadership and management oversight within the company[69] - The company has established mechanisms to ensure independent viewpoints are communicated to the board, enhancing decision-making effectiveness[66] - The audit committee is chaired by an independent non-executive director, ensuring oversight of financial reporting and compliance[60] - The company has a robust internal control and risk management system in place, which is regularly monitored by the board[63] Shareholder Communication and Dividends - The company emphasizes the importance of maintaining transparent and effective communication with shareholders to build investor confidence and attract new investors[122] - The board has reviewed the implementation and effectiveness of the shareholder communication policy, ensuring timely publication of corporate communications and direct interaction with shareholders[124] - The company has adopted a dividend policy proposing to distribute no less than 30% of net profit as dividends, subject to business performance and other factors[130] - The company declared a special dividend of HKD 0.04 per share for the fiscal year 2023, which was paid in cash on July 21, 2023[143] - The total dividend for the year, including the interim dividend, amounts to HKD 0.035 per share, with no dividends declared in 2023[144] Risk Management and Internal Controls - The risk management framework is based on a "three lines of defense" model, with clear roles and responsibilities defined at various levels[109] - The internal audit team conducts regular audits of financial, operational, and compliance controls, reporting directly to the audit committee[112] - The company has established a structured risk management process that includes risk identification, assessment, response, monitoring, and reporting[113] - The audit committee reviewed the effectiveness of the risk management and internal control systems, finding them to be effective and adequate[114] Workforce and Diversity - As of March 31, 2024, the company has a workforce of 2,104 employees, comprising 964 males (45.8%) and 1,140 females (54.2%)[84] - The company aims to enhance workforce diversity by recruiting more employees of different genders and ages, with a review planned for Q1 2025[84] - The Nomination Committee will continue to review the board diversity policy to ensure its ongoing effectiveness[86] Shareholder Structure and Major Shareholders - As of March 31, 2024, Mr. Li holds 770,092,000 shares, representing 54.57% of the issued shares[167] - Major shareholders include Ms. Chen, who holds 770,092,000 shares (54.57%), and Mr. He, who, along with others, holds 878,956,000 shares (62.28%)[169] - The board of directors includes Mr. Li as the chairman and Mr. Li Kunlun as the CEO, with a total of six directors[162] Strategic Initiatives and Future Plans - The company plans to assess the adequacy of its internal audit and financial reporting functions, including resources and training[103] - The company will continue to monitor compliance with relevant laws and regulations as part of its corporate governance practices[103] - The company is exploring potential acquisitions to diversify its portfolio and strengthen its market position[44]

Revenue Performance - Total revenue for the year ended March 31, 2024, was HKD 954,128,000, representing a 12.8% increase from HKD 845,797,000 in 2023[3] - Revenue from Hong Kong was HKD 505,713,000, up 7.3% from HKD 471,503,000 in the previous year[3] - Revenue from mainland China increased by 17.3% to HKD 431,348,000, compared to HKD 367,587,000 in 2023[3] - Total revenue from customer contracts in 2024 was HKD 954,128,000, a 12.8% increase from HKD 845,797,000 in 2023[67] - The group recorded revenue of approximately HKD 954,100,000 for the year, representing an increase of about 12.8% compared to the previous year[107] - The group's revenue for the year was approximately HKD 954.1 million, an increase of about 12.8% compared to HKD 845.8 million in 2023, primarily due to recovery from the negative impacts of COVID-19 in Hong Kong and China[116] Profitability and Earnings - The net profit attributable to shareholders decreased by 41.0% to HKD 32,970,000 from HKD 55,880,000 in the previous year[3] - Basic earnings per share for the year was HKD 2.86, down 35.1% from HKD 4.41 in 2023[3] - The company's basic earnings per share (EPS) for the current year is HKD 0.0285, compared to HKD 0.0438 in the previous year[44] - The group reported a profit attributable to equity holders of approximately HKD 39,000,000, a significant improvement compared to the previous year[107] - The group's profit for the year was approximately HKD 33 million, a decrease from HKD 55.9 million in 2023, primarily due to the sale of certain properties in Hong Kong[149] Expenses and Costs - The cost of goods sold for the company increased to HKD 246.127 million in 2024 from HKD 230.825 million in 2023, reflecting a rise of about 6.6%[58] - Employee benefits expenses rose to HKD 312.601 million in 2024, compared to HKD 288.382 million in 2023, marking an increase of approximately 8.4%[58] - Property rental and related expenses increased by 102.8% to approximately HKD 54.1 million from HKD 26.7 million in 2023, as no rental concessions were received this year[120] - Other operating expenses totaled HKD 151,258,000, an increase from HKD 140,902,000 in the previous year[94] - Other operating expenses increased by approximately 7.3% to about HKD 151.3 million, accounting for 15.9% of the group's revenue (2023: 16.7%) [146] Asset and Liability Management - Non-current assets decreased from HKD 653,715 thousand in 2023 to HKD 580,422 thousand in 2024, representing a decline of approximately 11.2%[15] - Current assets decreased from HKD 385,904 thousand in 2023 to HKD 309,902 thousand in 2024, a reduction of about 19.7%[15] - Total liabilities decreased from HKD 289,497 thousand in 2023 to HKD 242,483 thousand in 2024, showing a decrease of approximately 16.2%[15] - The net assets of the company decreased from HKD 534,160 thousand in 2023 to HKD 485,314 thousand in 2024, a decline of about 9.2%[26] - The company's accounts receivable decreased from HKD 4,162 thousand in 2023 to HKD 2,636 thousand in 2024, a decline of about 36.6%[39] Strategic Initiatives and Future Plans - The company plans to focus on expanding its restaurant network in Singapore, increasing from 3 to 4 locations[3] - The company is facing challenges in the restaurant industry due to rising costs of food, rent, and utilities, which continue to pressure profit margins[45] - The group plans to diversify its business scope and revenue sources by actively developing new brands and exploring new business models to adapt to changing consumer spending patterns[154] - The group aims to enhance delivery services and marketing promotions to attract more customers while controlling costs to maintain profit margins[129] - The group will leverage its strategic partnership with Singapore's Paradise Group to seek development opportunities in Singapore and other Southeast Asian regions[154] Dividends and Shareholder Returns - The company has initiated a mid-term dividend of HKD 0.01 per share, amounting to approximately HKD 14.112 million, which was paid to shareholders[59] - The company declared a special dividend of HKD 0.04 per share for the fiscal year 2023[73] - The total dividend for the year, including the interim dividend, will be HKD 0.035 per share, compared to none in 2023[132] - The first interim dividend for the year is set at HKD 0.01 per share, amounting to approximately HKD 14,112,000, to be paid in cash on December 22, 2023[157] - The second interim dividend of HKD 0.025 per share is proposed, totaling approximately HKD 35,280,000, expected to be paid on or around July 31, 2024[158] Operational Changes - The number of restaurants in Hong Kong decreased from 34 to 29, while mainland China locations decreased from 39 to 36[3] - The company closed 8 restaurants in Hong Kong and opened 3 new ones during the year[82] - The group closed 7 contract-expired stores while opening 3 new Tsui Wah restaurants and 1 Tsui Wah Express restaurant in the Greater Bay Area, continuing its strategy of flagship and express outlets[111] - The restaurant in Macau will undergo renovations in mid-2024, aiming to attract new customers[87] - The introduction of a self-service ordering system in Macau restaurants has significantly improved table turnover rates[86] Government Support and Subsidies - The company received government subsidies totaling HKD 210,000,000 in 2024, compared to HKD 20,557,000 in 2023[69] Audit and Compliance - The audit committee has been established to oversee the company's internal control procedures and review financial statements[163] - The financial figures for the year have been compared and deemed consistent by the independent auditor, PricewaterhouseCoopers[167]

Financial Performance - Revenue for the six months ended September 30, 2023, was approximately HKD 497.3 million, an increase of 20.0% compared to HKD 414.6 million in the same period last year[8]. - Profit attributable to owners of the company was approximately HKD 6.7 million, down 83.5% from HKD 40.9 million in the previous year[8]. - The group reported a significant increase in revenue from mainland China, with a growth rate of 35.3% compared to the previous year[8]. - For the six months ended September 30, 2023, total revenue was HKD 497.285 million, an increase from HKD 414.564 million in the same period of 2022, representing a growth of approximately 19.9%[63]. - The net profit for the same period was HKD 2.819 million, a significant decrease from HKD 42.513 million in the previous year, reflecting a decline of approximately 93.4%[63]. - The total comprehensive income for the period, after tax, was a loss of HKD 11.432 million, compared to a gain of HKD 7.148 million in the previous year[65]. - The company reported a basic earnings per share of HKD 0.0048 for the current period, down from HKD 0.0289 in the previous period, representing a decline of 83.4%[100]. Operational Changes - The number of restaurants in Hong Kong decreased to 32 from 37 in the same period last year, while the number in mainland China decreased to 35 from 40[9]. - The company plans to open new restaurants in the Greater Bay Area in the second half of 2023 to capture local consumer demand[16]. - A new restaurant is scheduled to open in Singapore in the first quarter of 2024, continuing the promotion of Hong Kong-style dining culture overseas[16]. - The group operated a total of 73 restaurants across Hong Kong, mainland China, Macau, and Singapore as of September 30, 2023, having opened 2 and closed 8 during the period[21]. - The group plans to open 2 flagship stores in the Greater Bay Area in Q4 2023, continuing its strategic focus on this region[25]. - In Singapore, the group operates 3 restaurants and plans to open 1 more in Q1 2024, leveraging its partnership with the Jumbo Group[26]. Cost and Expenses - The cost of goods sold was approximately HKD 131.0 million, up about 8.9% from HKD 120.3 million in the previous period, accounting for 26.4% of total revenue[29]. - Gross profit was approximately HKD 366.2 million, an increase of 24.5% from HKD 294.3 million in the previous period[32]. - Employee costs rose to approximately HKD 162.1 million, a 12.8% increase from HKD 143.6 million in the previous period, primarily due to competitive labor market conditions[33]. - Other operating expenses increased by approximately 69.0%, from HKD 53.2 million to HKD 89.8 million, accounting for 18.1% of total revenue[35]. Market Challenges - The overall restaurant market continues to face challenges, including labor shortages and rising costs, impacting the dining industry[14]. - The mainland China business experienced over 35% year-on-year growth in the first half of 2023, despite a complex external market environment[23]. - The company is focusing on optimizing its operational model to improve efficiency and competitiveness in response to market challenges[14]. Cash Flow and Assets - The group's cash and cash equivalents as of September 30, 2023, were approximately HKD 226,000,000, a decrease of about HKD 60,000,000 from HKD 286,000,000 as of March 31, 2023[41]. - Current assets decreased to HKD 327.588 million from HKD 385.904 million, indicating a decline of approximately 15.1%[67]. - The company's total equity as of September 30, 2023, was HKD 468.743 million, down from HKD 534.160 million as of March 31, 2023[69]. - The company generated cash from operating activities amounting to HKD 87,446,000, a decrease of 13.2% compared to HKD 100,858,000 in 2022[73]. - The net cash flow from investing activities was HKD 82,573,000, significantly lower than HKD 272,774,000 in the prior year, primarily due to reduced proceeds from the sale of property, plant, and equipment[73]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules[135]. - The audit committee has reviewed the accounting principles and internal control matters related to the interim financial statements[138]. - The company confirmed that all directors have fully complied with the standards set out in the code during the review period[137]. - The company will continue to review and enhance its corporate governance practices to ensure compliance with the corporate governance code[135]. Shareholder Information - The company declared an interim dividend of HKD 0.01 per share, compared to no dividend in the previous period[60]. - The company has adopted a share incentive plan, granting 750,000 shares to each of four non-executive directors, totaling 1,750,000 shares, which vested on September 29, 2023[116]. - As of September 30, 2023, the total number of issued shares is 1,411,226,450, with 770,092,000 shares held by Tsui Fat Limited, representing approximately 54.57% ownership[123]. - Mr. Li holds a beneficial interest of 499,000 shares, which accounts for 49.90% of Tsui Fat Limited's shares[123].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Tsui Wah Holdings Limited 翠 華 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1314） 截至2023年9月30日止六個月的 中期業績公佈 財務摘要 截至9月30日止六個月 變動百分比 2023年 2022年 （未經審核）（未經審核） 千港元 千港元 收益 497,285 414,564 20.0% 香港 258,472 241,001 7.2% 中國內地 231,276 170,953 35.3% 其他* 7,537 2,610 188.8% 除利息、稅項、折舊和攤銷前 盈利^ 75,681 161,277 (53.1%) 本公司擁有人應佔溢利 6,747 40,867 (83.5%) ...

Financial Performance - For the fiscal year ending March 31, 2023, the company recorded revenue of approximately HKD 845.8 million, a decrease of about 14.9% compared to HKD 993.3 million for the fiscal year ending March 31, 2022[8]. - The group's revenue for the year was approximately HKD 845.8 million, a decrease of about 14.9% compared to HKD 993.3 million in 2022, primarily due to the impact of the pandemic in mainland China and Hong Kong[26]. - The cost of goods sold for the year was approximately HKD 230.8 million, down about 18.2% from HKD 282.1 million in 2022, representing 27.3% of total revenue, a decrease from 28.4% in the previous year[27]. - The group's gross profit for the year was approximately HKD 615 million, a decrease of 13.5% from HKD 711.2 million in 2022, mainly due to revenue decline caused by pandemic restrictions[28]. - Employee costs for the year were approximately HKD 295.8 million, a decrease of about 11.4% from HKD 334 million in 2022, attributed to the closure of loss-making restaurants and reduced social security contributions in mainland China[29]. - The group reported a profit of approximately HKD 55,900,000 for the year, a turnaround from a loss of HKD 124,000,000 in 2022, primarily due to gains from property sales and rental adjustments[39]. - Cash and cash equivalents, along with time deposits, totaled approximately HKD 286,000,000, an increase of about HKD 182,700,000 from HKD 103,300,000 in 2022[40]. - The group's current ratio improved to approximately 1.3 times, up from 1.0 times in 2022, with current assets totaling about HKD 385,900,000[40]. - The group had no interest-bearing bank borrowings as of March 31, 2023, resulting in a debt-to-equity ratio of 0%, down from 12.8% in 2022[41]. - The company's distributable reserves amounted to HKD 456,126,000, a slight decrease from HKD 457,286,000 on March 31, 2022, representing a decline of approximately 0.25%[174]. Operational Changes - As of March 31, 2023, the company operated a total of 79 restaurants across Hong Kong, Macau, mainland China, and Singapore[17]. - The company closed 5 restaurants in Hong Kong, 5 in mainland China, and 1 in Singapore during the fiscal year, while opening 4 in Hong Kong and 1 in mainland China[8]. - The company plans to continue promoting takeaway services and closely monitor the labor market to hire more quality talent[10]. - The company has engaged in cost control measures, including negotiating rent reductions and adjusting menu items to manage rising ingredient costs[8]. - The group has adjusted its operational strategies in response to the pandemic, including optimizing restaurant hours and reallocating staff to mitigate health and safety impacts[29]. - The group has resumed operations at its airport restaurants as of April 1, 2023, after a suspension due to a significant drop in passenger traffic caused by the pandemic[55]. - The group expects its operational performance to gradually improve with the increase in tourist numbers[55]. Strategic Plans - The company aims to expand its business in the Guangdong-Hong Kong-Macao Greater Bay Area and overseas markets[8]. - The group plans to focus on developing new restaurants in key cities of the Greater Bay Area and aims to establish flagship stores and multiple "Tsui Wah Express" restaurants in each region[21]. - In Singapore, the group maintains a strategic partnership with Jumbo Group to operate Hong Kong-style tea restaurants, aiming to build a strong international reputation among Singapore's population of approximately 5.5 million[22]. - The group plans to diversify its business and revenue sources in response to the pandemic, focusing on developing new brands and exploring new business models[55]. - The group aims to accelerate its entry into overseas markets and the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing marketing efforts to expand its customer base[55]. Corporate Governance - The company has maintained compliance with all applicable corporate governance code provisions since January 2022[78]. - The board of directors is responsible for leading and controlling the company, with a focus on making objective decisions in the best interest of the company[79]. - The company emphasizes the importance of board independence for effective corporate governance and decision-making[82]. - The board regularly reviews and adheres to the company's corporate governance policies to ensure compliance with the governance code[78]. - The company has established committees within the board to oversee various responsibilities, enhancing governance effectiveness[79]. - The company is committed to high levels of corporate governance to protect shareholder interests and ensure sustainable development[77]. - The board provides monthly operational information detailing recent performance and company data[79]. - The company has mechanisms in place to ensure independent viewpoints are communicated to the board, enhancing decision-making objectivity[82]. - The company has a structured approach to risk management and internal controls, which is overseen by the board[79]. - The board held 7 meetings during the year, with all directors actively participating in the annual general meeting and special meeting[85]. - The chairman and CEO roles are separated, ensuring effective governance and management oversight[86]. - The board consists of 8 members, including 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, meeting the independence requirements[88]. - Independent non-executive directors confirmed their independence in accordance with listing rules, ensuring unbiased judgment[89]. - The company has adequate directors' and officers' liability insurance to protect against legal claims arising from their duties[91]. - Continuous professional development is provided for all directors to enhance their understanding of regulatory responsibilities and corporate governance[94]. - The nomination committee evaluates the independence and qualifications of new independent non-executive director candidates annually[16]. - Performance assessments for independent non-executive directors are conducted yearly to evaluate their contributions[16]. - The company encourages open expression of independent views and constructive questioning during board meetings[16]. - Directors with significant interests in matters are prohibited from voting on those matters to maintain integrity in decision-making[16]. - The board of directors consists of eight members, including one female member, reflecting a gender diversity goal to maintain at least the current level of female representation[101]. - The company has adopted a diversity policy for the board, focusing on various factors such as knowledge, gender, age, and professional experience to ensure a balanced perspective[100]. - The company aims to enhance workforce diversity by recruiting more employees of different genders and ages, with a review planned for Q1 2024[101]. Risk Management - The company has adopted a compliance and risk management policy to ensure adherence to relevant laws and regulations[164]. - The company’s risk management framework is based on a "three lines of defense" model, clearly defining roles and responsibilities[134]. - The company conducts annual risk assessments to identify and prioritize potential risks, and develops mitigation plans accordingly[137]. - The internal audit team reports directly to the audit committee, providing independent assessments of risk management and internal controls[134]. - The company has established a whistleblowing system applicable to all stakeholders, allowing confidential reporting of concerns[123]. - The board is responsible for ensuring compliance with relevant laws and regulations, and has reviewed the adequacy of resources for accounting and internal audit functions[135]. - The company reviewed its risk management and internal control systems, confirming their effectiveness without identifying significant issues[134]. Shareholder Relations - The company maintains effective communication with shareholders, ensuring transparency and timely information dissemination through annual reports and other communications[144]. - The company has invited independent auditors to attend the 2023 annual general meeting to address shareholder inquiries regarding audit work and accounting policies[145]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[148]. - The company has a dedicated contact point for shareholders to address inquiries related to shareholding, dividend payments, and communication address changes[149]. - The company reported no final dividend for the fiscal year 2023, consistent with the previous year[170]. - The board of directors has proposed a dividend policy to distribute no less than 30% of net profit as dividends, subject to business performance and capital needs[153]. - The board of directors will review the dividend policy periodically, with no guarantee of dividends in any specific period[154]. Employment and Workforce - As of March 31, 2023, the company employed 2,565 staff members, with 1,191 males and 1,374 females, representing approximately 46.43% and 53.57% of the workforce respectively[101]. - The company has established specific committees, including the Nomination, Remuneration, and Audit Committees, to oversee various aspects of corporate governance[99]. - The Remuneration Committee evaluates the performance of all directors and senior management, providing recommendations on the company's remuneration policy[109]. - The remuneration details for senior management indicate one individual earned between HKD 2,500,001 and HKD 3,000,000, while one individual earned below HKD 1,000,000[124]. - The Nomination Committee held two meetings during the year, with all members present at each meeting[108]. - The Remuneration Committee also conducted two meetings, with all members attending and making several written resolutions on various matters[109].