FAIRWOOD HOLD(00052)2023-07-28 09:14Financial Performance - The annual revenue was HK$3,024.2 million, an increase of 4.9% from HK$2,881.9 million in 2022[30]. - Basic earnings per share increased by 5.3% to HK34.64 cents, compared to HK32.91 cents in 2022[32]. - Profit for the year rose by 5.3% to HK$44.9 million, excluding government subsidies, profit was HK$3.3 million, a turnaround from a loss of HK$16.3 million in the previous year[54]. - Profit attributable to equity shareholders rose by 5.3% to HK$44.9 million (2022: HK$42.6 million)[68]. - Excluding government subsidies, the profit for the year was HK$3.3 million, a turnaround from a loss in the previous financial year[68]. - The gross profit margin increased to 8.5% (2022: 7.7%)[68]. - Return on average equity increased to 6.4% in 2023 from 5.7% in 2022[192]. - Total assets as of March 31, 2023, were HK$2.3025 billion, a decrease from HK$2.3373 billion in 2022[182]. - The Group's current liabilities net amount was HK$24.8 million, an increase from HK$12.8 million in 2022[182]. Dividends - A final dividend of HK40.0 cents per share and a special final dividend of HK5.0 cents per share were proposed, totaling HK63.0 cents per share for the year with a payout ratio of approximately 182%[32]. - The total dividend for the year ended March 31, 2023, amounts to HK63.0 cents per share, representing a total distribution of approximately 182% of the Group's profit for the year[69]. - The payable date for the final and special dividends is on or before October 5, 2023[57]. Financial Position - The Group maintained a healthy financial position with cash and cash equivalents of HK$646.8 million, up from HK$557.1 million in 2022[55]. - The Group had no bank borrowings and a nil gearing ratio as of March 31, 2023[32]. - The Group's financing costs for the reporting period were HKD 31.7 million, a slight decrease from HKD 32.4 million in the previous year[130]. - The Group's financial position remains strong with stable cash flow and no debt, mitigating interest rate risks[116]. - As of March 31, 2023, Fairwood's cash and cash equivalents amounted to HK$646.8 million, a 16.1% increase from HK$557.1 million in the previous year[159]. - The company maintained a debt-free status with a gearing ratio of nil, providing it with the ability to seize investment opportunities[162]. Store Operations and Growth - The Group opened 12 new stores during the year, with 8 in Hong Kong and 4 in Mainland China, while closing 10 underperforming stores[111]. - Fairwood's Same Store Sales Growth (SSSG) improved year on year at approximately 5%[109]. - Same-store sales growth in Hong Kong increased by approximately 5%, with takeaway sales accounting for about 36% of total sales, higher than pre-pandemic levels[138]. - The Mainland China operations experienced a negative same-store sales growth of approximately 7% due to COVID-19 restrictions, but the company continues to open new stores[141][143]. Community and Social Responsibility - Fairwood launched a meal donation initiative that converted 23,438 customer actions into meals for those in need within four months[118]. - Fairwood's community initiatives resulted in the donation of 23,438 meal boxes through its "走塑•齊齊捐" program, contributing to social responsibility efforts[147]. Employee and Compensation - Employee costs for the year were approximately HK$1.0205 billion, up from HK$1.0045 billion in 2022, after accounting for government subsidies[169]. - As of March 31, 2023, the total number of employees in the Group was approximately 5,600, a slight decrease from 5,700 in 2022[200]. - Staff costs for the year amounted to approximately HK$1,020.5 million, compared to HK$1,004.5 million in 2022, reflecting an increase in employee compensation[200]. - Employee remuneration is aligned with job nature, qualifications, and experience, with annual reviews based on performance appraisals[200]. - The Company continues to provide competitive compensation and benefits to eligible employees based on performance[198]. Digitalization and Marketing - The introduction of the "Fairwood APP" attracted over 500,000 registered members by year-end, targeting younger customers[76]. - The launch of the Group's 50th Anniversary campaign significantly boosted customer engagement and sales, achieving an estimated 5.2 million views on social media[73]. - The Group's digitalization initiatives have enhanced efficiency and improved customer experience across its restaurants[105]. - Fairwood's new store design aims to attract younger customers with modern aesthetics and digital menus[104].