2025-12-15 08:42Financial Performance - The Group's revenue for the first half of FY2025/26 decreased by 5.4% to HK$4,036.2 million compared to HK$4,264.8 million in the same period last year[11]. - Adjusted EBITDA declined by 29.4% to HK$242.9 million, down from HK$343.8 million in the previous year[12]. - Profit attributable to shareholders decreased by 67.6% to HK$46.7 million, compared to HK$144.0 million in the prior year[12]. - The Group's profit attributable to shareholders, excluding fair value loss of investment properties, decreased by 59.4%[12]. - Basic earnings per share decreased by 67.3% to HK8.2 cents for the six months ended 30 September 2025 (2024: HK25.0 cents)[37]. - Total comprehensive income for the period was HK$54,139, down 59.5% from HK$133,917 in 2024[190]. - Gross profit for the same period was HK$329,368, down 24.7% from HK$437,425 in 2024[189]. - Operating profit decreased to HK$88,373, representing a decline of 53.5% from HK$189,916 in the previous year[189]. Market Conditions - The Group faced significant challenges due to structural transformation in the market, with weak inbound tourist consumption impacting sales during peak periods[11]. - The overall market conditions were marked by weak consumer sentiment and fierce price competition in the restaurant sector[13]. - The gross profit margin decreased to 8.2% for the six months ended September 30, 2025, down from 10.3% in 2024, primarily due to weak consumer sentiment and fierce price competition[25]. Business Operations - The Casual Dining division and Institutional Catering units performed better due to their simple operational models and stable demand[14]. - The Group continued stable network expansion in the Greater Bay Area despite a challenging economic environment in Mainland China[14]. - Management is focusing on improving efficiency by exploring new business formats and consolidating underperforming outlets[11]. - The Group is focusing on revamping existing business operations to enhance efficiency and drive growth while controlling overheads to improve margins[17]. - The Group's strategy includes exploring new business formats, consolidating underperforming outlets, and simplifying operations[20]. - The Group plans to consolidate lower-performing stores and identify high-traffic locations for new openings to drive future growth[120][124]. Dividends and Shareholder Returns - An interim dividend of HK10 cents per share was declared, down from HK15 cents in the previous year, with a payout ratio of 124.1%[11]. - Proposed dividends decreased from HK$145,001,000 to HK$58,000,000, indicating a significant reduction in shareholder returns[186]. - Interim dividend declared at HK10 cents per share, down from HK15 cents, with a payout ratio of 124.1%[38]. Digital Transformation and Technology - The Group's digital transformation initiatives improved overall store productivity and customer experience, enabling frontline staff to dedicate more time to customer service[85]. - The Group is implementing AI technology in its stores to optimize ventilation and air-conditioning systems, projecting energy savings of over 20%[113][114]. - Ordering kiosks have been rolled out to nearly all shops, with increasing customer usage, and enhancements to the mobile app ordering interface have been made[57]. Customer Engagement and Loyalty - The Club 100 loyalty programme reached 2 million registered members following a targeted campaign in August[52]. - The customer loyalty programme's registered membership base in the Chinese Mainland has expanded beyond 7.4 million users[85]. - The Group's product strategy focuses on three main pillars: Signature Product Strategy, Value Strategy, and Health Strategy, enhancing customer engagement and driving sales[84]. Financial Position and Assets - The Group's total assets as of September 30, 2025, amounted to HK$5,790,042,000, a decrease from HK$5,980,230,000 as of March 31, 2025[186]. - Total liabilities decreased from HK$3,235,494,000 to HK$3,143,428,000, with long-term borrowings reduced from HK$225,000,000 to HK$125,000,000[187]. - The Group's total equity as of September 30, 2025, was HK$2,646,614,000, down from HK$2,744,736,000[186]. - The Group's cash position as of September 30, 2025, was approximately HK$965 million, with available banking facilities of HK$746 million[90]. Employee and Corporate Governance - The Group's workforce consisted of 18,732 employees as of September 30, 2025, down from 18,970[98]. - The company complied with all code provisions of the Corporate Governance Code during the six months ended September 30, 2025[165]. - All directors confirmed compliance with the Model Code regarding securities transactions during the reporting period[166]. Share Options and Awards - The number of shares available for grant under the 2022 Share Option Scheme was 36,131,403 shares as of April 1, 2025, and increased to 37,125,403 shares by September 30, 2025[134]. - A total of 22,439,000 options were outstanding as of September 30, 2025, with 646,000 options exercised during the period and 1,640,000 options lapsed[136]. - The options granted under the 2022 Share Option Scheme are subject to personal performance targets based on the Company's Performance Management System before vesting[136]. - The company adopted a new Share Award Scheme on August 27, 2023, which will be effective for ten years[142].