FAIRWOOD HOLD(00052)2023-12-28 08:30Financial Performance - For the six months ended September 30, 2023, the company's revenue was HKD 1,558,003,000, an increase from HKD 1,494,720,000 in the same period of 2022, representing a growth of approximately 4.3%[27] - The gross profit for the same period was HKD 146,508,000, compared to HKD 137,216,000 in 2022, indicating a year-over-year increase of about 6.3%[27] - The operating profit decreased to HKD 59,461,000 from HKD 63,542,000, reflecting a decline of approximately 6.5%[27] - The profit attributable to equity shareholders for the period was HKD 36,317,000, down from HKD 42,826,000 in the previous year, a decrease of about 15.2%[28] - The basic and diluted earnings per share for the six months ended September 30, 2023, were both 28.03 cents, compared to 33.06 cents in 2022, representing a decline of approximately 15.1%[27] - The total comprehensive income attributable to equity shareholders for the period was HKD 35,327,000, compared to HKD 37,135,000 in the previous period, representing a decrease of approximately 4.85%[29] - The profit before tax was HKD 43,409,000, a decrease of 8.4% compared to HKD 47,338,000 for the same period in 2022[61] - The total comprehensive income for the six months ended September 30, 2023, was HKD 36,317,000, compared to HKD 35,327,000 in the previous year, indicating a slight increase[71] Cash Flow and Assets - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 311,722,000, down from HKD 414,871,000 in the same period last year, a decline of about 25%[48] - The total assets as of September 30, 2023, amounted to HKD 1,492,921,000, slightly down from HKD 1,510,098,000 as of March 31, 2023, indicating a decrease of approximately 1.14%[41] - The cash and cash equivalents at the end of the period were HKD 483,150,000, a decrease from HKD 667,200,000 at the beginning of the period, reflecting a decline of around 27.6%[48] - The company reported a net cash outflow from investing activities of HKD 188,601,000 for the six months ended September 30, 2023, compared to HKD 77,949,000 in the previous year, indicating a significant increase in investment expenditures[48] - The total current assets of the group amounted to HKD 846,825,000, an increase from HKD 792,447,000 as of March 31, 2023[74] - The total current liabilities were HKD 909,062,000, up from HKD 817,224,000 as of March 31, 2023, indicating a net current liability position[74] Liabilities and Equity - The total liabilities increased to HKD 415,594,000 as of September 30, 2023, compared to HKD 400,536,000 as of March 31, 2023[17] - The total liabilities as of September 30, 2023, were HKD 834,585,000, compared to HKD 817,224,000 as of March 31, 2023, showing an increase of approximately 2.1%[43] - The total equity attributable to equity shareholders decreased to HKD 658,336,000 from HKD 680,629,000, representing a decline of about 3.3%[44] - The company’s lease liabilities as of September 30, 2023, were HKD 704,364,000, down from HKD 732,878,000, indicating a reduction of approximately 3.9%[44] Revenue and Costs - The total revenue for the six months ended September 30, 2023, was impacted by government subsidies of HKD 24,000,000 aimed at alleviating operational pressures due to the COVID-19 pandemic[62] - The cost of goods sold for the six months ended September 30, 2023, was HKD 384,488,000, a decrease from HKD 396,309,000 in the previous year, reflecting a 3.1% reduction[63] - Employee costs increased to HKD 540,343,000 for the six months ended September 30, 2023, up from HKD 480,734,000, representing a 12.4% increase[63] Dividends and Share Options - The interim dividend declared was HKD 0.11 per share, down from HKD 0.18 per share in the previous year, totaling HKD 14,251,000 compared to HKD 23,320,000[67] - The company granted 3,750,000 share options to existing holders and other employees at an exercise price of HKD 11.456, effective from July 5, 2024, with a total of 3,750,000 shares available for subscription[161] - The average exercise price of unexercised share options as of September 30, 2023 was HKD 11.46, down from HKD 17.41 as of March 31, 2023[163] Market Presence and Strategy - The company opened two new stores in the Greater Bay Area despite a slowing economy and reduced consumer spending[116] - The company plans to continue expanding its business in the Greater Bay Area and is optimistic about future growth due to its strong management team and brand reputation[120] - The company has implemented new strategies to expand its market presence, although specific details were not disclosed in the financial report[73] Sustainability and Initiatives - The company reduced approximately 93 tons of kitchen waste during the reporting period through sustainability initiatives[142] - The company successfully reduced food costs significantly due to expanded supplier range and global procurement strategies[140] Employee and Management - The group’s key management personnel compensation for the period was disclosed, reflecting the company's commitment to transparency[158] - The company reported employee benefits of 7,783,000 HKD for the six months ending September 30, 2023, compared to 7,637,000 HKD for the same period in 2022, reflecting a year-over-year increase of approximately 1.91%[184]