2025-06-16 04:08Financial Performance - The group's total revenue decreased by 1.4% to HKD 8,568.3 million, while the profit attributable to shareholders fell by 29.6% to HKD 232.7 million[3]. - Excluding fair value losses on investment properties, the profit attributable to shareholders declined by 25.2%[3]. - For the fiscal year ending March 31, 2025, the group's revenue decreased by 1.4% to HKD 8,568.3 million, down from HKD 8,691.4 million in the previous year[14]. - Shareholders' profit attributable to the group fell by 29.6% to HKD 232.7 million, compared to HKD 330.5 million for the previous year, primarily due to a significant decline in the restaurant industry in Hong Kong and mainland China[19]. - The gross profit margin decreased to 10.4%, down from 11.4% in the previous year, attributed to economic downturn and weak consumer sentiment[15]. - Basic earnings per share decreased by 28.1% to HKD 0.41, down from HKD 0.57 in the previous year[22]. - The operating profit for the group for the fiscal year ending March 31, 2025, was HKD 687,657, down from HKD 798,315 in the previous year, reflecting a decline of approximately 13.9%[86]. - The net profit for the year was HKD 235,111,000, down 29.4% from HKD 333,215,000 in 2024[51]. - The company reported a total comprehensive income of HKD 202,602,000 for the year, down from HKD 332,207,000 in 2024[51]. Dividends and Payouts - The company plans to distribute a final dividend of HKD 0.25 per share, with a total annual payout ratio of 99.7%[3]. - The board proposed a final dividend of HKD 0.25 per share, down from HKD 0.42 per share in the previous year, with a total payout ratio of 99.7%[23]. - The total proposed final dividend for the year is HKD 0.25 per share, compared to HKD 0.42 per share in the previous year, indicating a reduction of 40.5%[106]. - The company’s interim dividend for 2025 was maintained at HKD 0.15 per share, consistent with the previous year[106]. Store Network and Expansion - The group maintained a stable profit margin in mainland China while steadily expanding its store network in the Greater Bay Area[3]. - The number of stores in Hong Kong increased to 381, while the number of stores in mainland China rose to 185, up from 171 the previous year[24]. - The group plans to continue optimizing its store network by exploring new store formats and identifying high-potential locations[12]. - The group opened 21 new stores in mainland China, increasing the total to 185 stores as of March 31, 2025, compared to 171 stores the previous year[35]. - The total number of fast food outlets increased to 224 as of March 31, 2025, up from 219 the previous year[25]. - The company opened 4 new fast food outlets, bringing the total to 174 by the end of the fiscal year[30]. Membership Programs - The membership program "Club 100" has approximately 2 million registered members in Hong Kong and over 6.6 million members in mainland China, establishing a solid customer base[6]. - The "Club 100" membership program has reached 2 million members, with a new senior member section launched to cater to the elderly demographic[27]. - The mainland China membership program has accumulated over 6.6 million registered members, contributing significant revenue[36]. Operational Efficiency and Innovation - The company is actively introducing new store formats and layouts to enhance operational efficiency in mainland China[6]. - The group aims to optimize its restaurant portfolio and recruit new talent to drive business transformation[5]. - The group is committed to digitalization and automation to enhance customer experience and improve operational efficiency[3]. - The group is focused on cost control, improving human resource efficiency, and introducing new technologies and automation solutions to ensure profitability in a changing market environment[48]. - The group anticipates continued growth opportunities from synergies in food processing and strategic procurement between its Hong Kong and mainland operations, supported by the expanding Greater Bay Area business scale[49]. Community Engagement and Social Responsibility - The group has donated over 700,000 meals through its "Café de Coral Food Assistance Program" to those in need in Hong Kong[8]. - The group has awarded scholarships totaling over HKD 40 million to more than 1,000 employees' children through the "Lo Tung Cheung Education Fund" since its inception[8]. - The group has provided scholarships totaling over HKD 40 million to nearly 1,000 employees' children through the "Luo Teng Xiang Education Fund" over the past 26 years, benefiting over 200 children this year[43]. - The "Everyone Eats" food assistance program has expanded its reach, providing soft meal vouchers to individuals with chewing and swallowing difficulties, in collaboration with the newly launched soft meal brand "Eat Well"[45]. Risk Management and Financial Position - The group maintained a cash balance of approximately HKD 1,054 million and a bank credit facility of HKD 813 million as of March 31, 2025[38]. - The group has no pledged assets as of March 31, 2025, compared to none the previous year[40]. - The overall risk management plan focuses on minimizing potential adverse impacts on the group's financial performance due to market unpredictability[63]. - The group has diversified its bank balances and deposits across more than ten investment-grade financial institutions, mitigating concentration credit risk[68]. - The expected credit loss rate for other financial assets measured at amortized cost is deemed negligible, with no provisions made as of March 31, 2025[72]. - The company continues to maintain a robust liquidity position through internal resources and bank borrowings[74]. Market and Economic Conditions - The gross profit margin decreased to 10.4%, down from 11.4% in the previous year, attributed to economic downturn and weak consumer sentiment[15]. - The group faces foreign exchange risk primarily from the Renminbi exchange rate, with no hedging arrangements in place, and considers the foreign exchange risk to be very low due to the peg between the Hong Kong dollar and the US dollar[64]. - The company has identified local GDP and fixed investment growth rates in Hong Kong and mainland China as key factors affecting credit loss provisions[70]. Awards and Recognition - The group has been rated "AA" in the Hang Seng Sustainable Development Corporate Benchmark Index for ten consecutive years, reflecting its commitment to ESG initiatives[45]. - The group has received multiple awards for its workplace environment, including the "Best HR Awards 2024" for employee diversity and health and safety programs[44].