翠华控股(01314) - 2025 - 年度业绩

Annual Results Announcement Financial Highlights 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 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 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][30] 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 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 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] - 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][36] Business Review 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] - 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][41] - 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][43][44] Financial Review 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] - Cost of inventories sold as a percentage of revenue remained at 25.8%, indicating the Group's effectiveness in controlling food costs[47] - 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] - 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] Liquidity, Financial Resources and Capital Structure 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 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] - 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] - 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] Other Information 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] - 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] - 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] - 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]