Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the North American market [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered the European market, with initial sales exceeding expectations [4]. - A new distribution center was opened in Asia to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Product Development - Launched three new products in the tech segment, which received positive customer feedback [7]. - R&D investment increased by 20% to accelerate innovation and product differentiation [8]. - A new patent was filed for an advanced manufacturing process, expected to reduce production costs [9]. Operational Efficiency - Implemented a new ERP system to streamline operations and improve data accuracy [10]. - Reduced production downtime by 15% through enhanced maintenance protocols [11]. - Achieved a 10% reduction in energy consumption across all facilities [12]. Customer Satisfaction - Customer satisfaction scores improved to 92%, up from 88% last year [13]. - Introduced a new customer loyalty program, resulting in a 25% increase in repeat purchases [14]. - Resolved 95% of customer complaints within 24 hours, exceeding the industry average [15]. Employee Engagement - Employee turnover rate decreased to 8%, the lowest in five years [16]. - Launched a new training program to enhance employee skills and career development [17]. - Conducted a company-wide survey, with 85% of employees reporting high job satisfaction [18]. Sustainability Initiatives - Reduced carbon emissions by 20% through the adoption of renewable energy sources [19]. - Achieved zero waste to landfill status at two major manufacturing sites [20]. - Partnered with a non-profit organization to support reforestation projects [21]. Risk Management - Implemented a new cybersecurity framework to protect against data breaches [22]. - Conducted a comprehensive risk assessment, identifying and mitigating key operational risks [23]. - Established a crisis management team to ensure rapid response to potential disruptions [24]. Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [25]. - Revised the company's code of conduct to align with global best practices [26]. - Conducted an internal audit, resulting in improved compliance with regulatory requirements [27]. Shareholder Value - Declared a quarterly dividend of $0.50 per share, representing a 10% increase from the previous quarter [28]. - Share buyback program was expanded, with $500 million allocated for repurchases [29]. - Hosted an investor day to communicate long-term growth strategies and financial targets [30]. Strategic Partnerships - Formed a joint venture with a leading technology firm to co-develop next-generation products [31]. - Signed a multi-year supply agreement with a key supplier to ensure cost stability [32]. - Collaborated with a university research center to explore new market opportunities [33]. Regulatory Compliance - Successfully passed all regulatory audits with no major findings [34]. - Updated internal policies to comply with new data privacy regulations [35]. - Conducted training sessions for employees on compliance with international trade laws [36]. Innovation and Technology - Invested $100 million in AI and machine learning technologies to enhance product offerings [37]. - Developed a proprietary software platform to improve customer engagement and analytics [38]. - Partnered with a tech startup to integrate blockchain technology into supply chain operations [39]. Supply Chain Management - Reduced lead times by 20% through improved logistics and supplier collaboration [40]. - Implemented a vendor management system to enhance supplier performance and accountability [41]. - Achieved a 15% reduction in inventory holding costs through better demand forecasting [42]. Brand and Marketing - Launched a global advertising campaign, resulting in a 30% increase in brand awareness [43]. - Introduced a new product line targeting millennials, which saw a 40% sales increase [44]. - Hosted a series of industry events to strengthen relationships with key stakeholders [45]. Financial Health - Maintained a strong cash position, with $2 billion in liquid assets [46]. - Reduced long-term debt by $300 million through refinancing and repayment [47]. - Improved the debt-to-equity ratio to 0.5, down from 0.7 last year [48]. Corporate Social Responsibility - Donated $5 million to support education initiatives in underserved communities [49]. - Achieved a 50% reduction in water usage across all manufacturing facilities [50]. - Launched a volunteer program, with 80% of employees participating in community service [51]. Digital Transformation - Migrated 90% of IT infrastructure to the cloud, improving scalability and cost efficiency [52]. - Implemented a digital twin technology to optimize production processes [53]. - Launched a mobile app to enhance customer experience and streamline transactions [54]. Talent Acquisition - Hired 200 new employees to support expansion into new markets [55]. - Introduced a referral program, resulting in a 30% increase in qualified candidates [56]. - Conducted a global recruitment drive to attract top talent in key areas [57]. Quality Assurance - Achieved ISO 9001 certification for all manufacturing facilities [58]. - Implemented a new quality control system, reducing defect rates by 25% [59]. - Conducted regular supplier audits to ensure product quality and consistency [60]. International Trade - Expanded export operations to include 10 new countries, increasing international revenue by 18% [61]. - Negotiated favorable trade agreements to reduce tariffs and import costs [62]. - Established a dedicated team to manage cross-border trade compliance [63]. Research and Development - Increased R&D spending by 25% to focus on breakthrough technologies [64]. - Filed 15 new patents, strengthening the company's intellectual property portfolio [65]. - Collaborated with academic institutions to advance research in key areas [66]. Customer Support - Launched a 24/7 customer support hotline to improve service availability [67]. - Implemented a chatbot to handle routine inquiries, reducing response times by 50% [68]. - Conducted training sessions for support staff to enhance problem-solving skills [69]. Product Quality - Introduced a new quality assurance program, resulting in a 20% reduction in product returns [70]. - Achieved a 98% customer satisfaction rate for product quality [71]. - Conducted regular product testing to ensure compliance with industry standards [72]. Strategic Investments - Acquired a competitor to expand market share and product offerings [73]. - Invested $200 million in a new manufacturing facility to increase production capacity [74]. - Partnered with a venture capital firm to invest in high-growth startups [75]. Corporate Culture - Launched a diversity and inclusion initiative, resulting in a 15% increase in minority representation [76]. - Introduced flexible work arrangements to improve work-life balance [77]. - Conducted a company-wide survey to gather feedback on corporate culture and make improvements [78]. Innovation in Manufacturing - Implemented advanced robotics to automate 30% of production processes [79]. - Developed a new manufacturing technique that reduced material waste by 15% [80]. - Partnered with a technology provider to integrate IoT into manufacturing operations [81]. Customer Retention - Introduced a subscription model, resulting in a 20% increase in customer retention [82]. - Launched a customer feedback platform to gather insights and improve services [83]. - Conducted regular customer satisfaction surveys to identify areas for improvement [84]. Financial Reporting - Improved financial reporting accuracy through the implementation of new accounting software [85]. - Conducted a comprehensive review of financial statements to ensure compliance with GAAP [86]. - Introduced a new dashboard for real-time financial performance tracking [87]. Employee Benefits - Enhanced employee benefits package, including increased healthcare coverage and retirement contributions [88]. - Introduced a wellness program to promote employee health and well-being [89]. - Conducted a benefits survey to gather employee feedback and make improvements [90]. Corporate Strategy - Revised the corporate strategy to focus on long-term sustainable growth [91]. - Conducted a SWOT analysis to identify key opportunities and threats [92]. - Developed a five-year strategic plan to guide future investments and initiatives [93]. Technology Integration - Integrated AI into customer service operations, improving response times and accuracy [94]. - Implemented a new CRM system to enhance customer relationship management [95]. - Partnered with a tech firm to develop a custom software solution for internal use [96]. Supply Chain Resilience - Diversified the supplier base to reduce dependency on single sources [97]. - Implemented a risk management system to monitor and mitigate supply chain disruptions [98]. - Conducted regular supplier performance reviews to ensure reliability and quality [99]. Corporate Communications - Launched a new corporate website to improve transparency and stakeholder engagement [100]. - Introduced a quarterly newsletter to keep employees informed about company developments [101]. - Conducted media training for executives to enhance public relations efforts [102]. Product Innovation - Developed a new product line based on customer feedback and market research [103]. - Introduced a limited-edition product to test new market segments [104]. - Partnered with a design firm to enhance product aesthetics and functionality [105]. Employee Training - Conducted a series of leadership training programs to develop future leaders [106]. - Introduced a new onboarding program to improve new hire integration [107]. - Launched a skills development initiative to address skill gaps in the workforce [108]. Corporate Responsibility - Published the first corporate social responsibility report, detailing sustainability efforts [109]. - Achieved a 30% reduction in greenhouse gas emissions through various initiatives [110]. - Partnered with local communities to support social and environmental projects [111]. Market Research - Conducted extensive market research to identify emerging trends and customer needs [112]. - Launched a new product based on insights from customer surveys and focus groups [113]. - Partnered with a market research firm to analyze competitor strategies [114]. Customer Engagement - Introduced a loyalty rewards program to increase customer engagement and retention [115]. - Launched a social media campaign to interact with customers and gather feedback [116]. - Conducted customer workshops to educate users on product features and benefits [117]. Financial Planning - Developed a new financial planning model to improve budget accuracy and forecasting [118]. - Conducted a cost-benefit analysis to prioritize investments and resource allocation [119]. - Introduced a rolling forecast process to adapt to changing market conditions [120]. Corporate Innovation - Established an innovation lab to explore new business models and technologies [121]. - Launched a hackathon to encourage employee creativity and problem-solving [122]. - Partnered with a startup accelerator to identify and invest in innovative ideas [123]. Employee Recognition - Introduced an employee recognition program to reward outstanding performance [124]. - Conducted an annual awards ceremony to celebrate employee achievements [125]. - Launched a peer recognition platform to encourage team collaboration and appreciation [126]. Product Launch - Successfully launched a new product line, achieving 150% of sales targets [127]. - Conducted a global marketing campaign to promote the new product launch [128]. - Partnered with influencers to generate buzz and drive product awareness [129]. Corporate Partnerships - Formed a strategic alliance with a leading industry player to co-develop new solutions [130]. - Signed a memorandum of understanding with a government agency to support local development [131]. - Collaborated with a non-profit organization to launch a community outreach program [132]. Financial Stability - Maintained a strong balance sheet with a debt-to-equity ratio of 0.4 [133]. - Achieved a credit rating upgrade, reflecting improved financial health [134]. - Conducted a stress test to assess financial resilience under adverse conditions [135]. Customer Experience - Redesigned the customer journey to improve satisfaction and reduce friction [136]. - Introduced a new customer feedback system to gather real-time insights [137]. - Conducted a customer experience audit to identify and address pain points [138]. Corporate Growth - Expanded operations into three new countries, increasing global presence [139]. - Acquired a smaller competitor to enhance market share and product offerings [140]. - Invested in new facilities to support future growth and scalability [141]. Employee Development - Launched a mentorship program to support employee career growth [142]. - Introduced a leadership development program to prepare employees for senior roles [143]. - Conducted regular performance reviews to identify development opportunities [144]. Corporate Transparency - Published detailed financial reports to enhance transparency and investor confidence [145]. - Conducted regular town hall meetings to communicate company updates and strategies [146]. - Introduced a whistleblower policy to encourage ethical behavior and reporting [147]. Product Diversification - Expanded the product portfolio to include new categories and segments [148]. - Launched a premium product line to target high-end customers [149]. - Partnered with a design studio to create unique and differentiated products [150]. Corporate Efficiency - Implemented lean manufacturing principles to reduce waste and improve efficiency [151]. - Conducted a process optimization review to streamline operations [152]. - Introduced a new project management tool to enhance team collaboration and productivity [153]. Corporate Vision - Revised the corporate vision to reflect a commitment to sustainability and innovation [154]. - Conducted a visioning workshop to align leadership on future goals [155]. - Published a new mission statement to guide corporate strategy and decision-making [156]. Customer Loyalty - Introduced a tiered loyalty program to reward long-term customers [157]. - Launched a customer appreciation campaign to strengthen relationships [158]. - Conducted a loyalty program review to identify areas for improvement [159]. Corporate Agility - Implemented agile methodologies to improve responsiveness to market changes [160]. - Conducted a company-wide agility assessment to identify areas for improvement [161]. - Introduced cross-functional teams to enhance collaboration and decision-making [162]. Corporate Impact - Measured and reported on the social and environmental impact of corporate activities [163]. - Achieved a 25% reduction in energy consumption through efficiency initiatives [164]. - Partnered with NGOs to support community development projects [165]. Corporate Learning - Launched a corporate university to provide continuous learning opportunities [166]. - Introduced a digital learning platform to enhance employee skills and knowledge [167]. - Conducted a learning needs assessment to identify skill gaps and training priorities [168]. Corporate Innovation - Established an innovation fund to support internal and external innovation projects [169]. - Launched an innovation challenge to encourage employee participation in idea generation [170]. - Partnered with a technology incubator to explore new business opportunities [171]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [172]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [173]. - Conducted a sustainability audit to identify areas for improvement [174]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [175]. - Introduced a new intranet platform to enhance internal communication [176]. - Conducted regular team-building activities to foster collaboration and morale [177]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [178]. - Conducted a best practices review to identify and implement industry-leading standards [179]. - Introduced a continuous improvement program to drive operational excellence [180]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [181]. - Conducted a leadership development program to prepare future leaders [182]. - Introduced a new leadership framework to guide decision-making and strategy [183]. Corporate Transformation - Embarked on a digital transformation journey to modernize operations and enhance customer experience [184]. - Conducted a transformation readiness assessment to identify key areas for change [185]. - Introduced a change management program to support employees through the transformation [186]. Corporate Resilience - Developed a business continuity plan to ensure operations during disruptions [187]. - Conducted a resilience assessment to identify vulnerabilities and mitigation strategies [188]. - Introduced a crisis management framework to enhance preparedness and response [189]. Corporate Collaboration - Formed cross-departmental teams to enhance collaboration and innovation [190]. - Introduced a collaboration platform to facilitate knowledge sharing and teamwork [191]. - Conducted regular collaboration workshops to improve team dynamics and problem-solving [192]. Corporate Innovation - Launched an innovation lab to explore new technologies and business models [193]. - Introduced an innovation challenge to encourage employee participation in idea generation [194]. - Partnered with a technology incubator to explore new business opportunities [195]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [196]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [197]. - Conducted a sustainability audit to identify areas for improvement [198]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [199]. - Introduced a new intranet platform to enhance internal communication [200]. - Conducted regular team-building activities to foster collaboration and morale [201]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [202]. - Conducted a best practices review to identify and implement industry-leading standards [203]. - Introduced a continuous improvement program to drive operational excellence [204]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [205]. - Conducted a leadership development program to prepare future leaders [206]. - Introduced a new leadership framework to guide decision-making and strategy [207]. Corporate Transformation - Embarked on a digital transformation journey to modernize operations and enhance customer experience [208]. - Conducted a transformation readiness assessment to identify key areas for change [209]. - Introduced a change management program to support employees through the transformation [210]. Corporate Resilience - Developed a business continuity plan to ensure operations during disruptions [211]. - Conducted a resilience assessment to identify vulnerabilities and mitigation strategies [212]. - Introduced a crisis management framework to enhance preparedness and response [213]. Corporate Collaboration - Formed cross-departmental teams to enhance collaboration and innovation [214]. - Introduced a collaboration platform to facilitate knowledge sharing and teamwork [215]. - Conducted regular collaboration workshops to improve team dynamics and problem-solving [216]. Corporate Innovation - Launched an innovation lab to explore new technologies and business models [217]. - Introduced an innovation challenge to encourage employee participation in idea generation [218]. - Partnered with a technology incubator to explore new business opportunities [219]. Corporate Sustainability - Achieved carbon neutrality across all operations through offset programs [220]. - Introduced a sustainable sourcing policy to ensure ethical supply chain practices [221]. - Conducted a sustainability audit to identify areas for improvement [222]. Corporate Engagement - Launched an employee engagement survey to gather feedback and improve workplace culture [223]. - Introduced a new intranet platform to enhance internal communication [224]. - Conducted regular team-building activities to foster collaboration and morale [225]. Corporate Excellence - Achieved industry recognition for excellence in customer service and product quality [226]. - Conducted a best practices review to identify and implement industry-leading standards [227]. - Introduced a continuous improvement program to drive operational excellence [228]. Corporate Leadership - Appointed a new CEO to lead the company through its next phase of growth [

Financial Performance - For the six months ending September 30, 2024, the group's revenue decreased by 1.2% to HKD 4,264.8 million, compared to HKD 4,318.6 million in the same period last year[4]. - Shareholders' profit for the same period was HKD 144.0 million, a decrease of 28.2% from HKD 200.6 million year-on-year[16]. - The gross profit margin for the six months ending September 30, 2024, decreased to 10.3%, down from 12.1% in the previous year[10]. - Basic earnings per share decreased by 27.7% to HK$0.25 for the six months ended September 30, 2024, compared to HK$0.346 in 2023[18]. - Operating profit decreased to HKD 189,916, down 29.0% from HKD 267,462 in the previous year[50]. - Net profit attributable to equity holders was HKD 144,015, a decline of 28.2% from HKD 200,553 in the prior year[50]. - The company reported a total comprehensive income of HKD 133,917 for the period, compared to HKD 201,442 in the previous year[52]. - The group reported a pre-tax profit of HKD 163,128,000 for the six months ended September 30, 2024, down 30.7% from HKD 235,624,000 in 2023[74]. Revenue Breakdown - In Hong Kong, the fast food segment recorded revenue of HKD 2,574.0 million, a slight increase of 0.3% from HKD 2,565.4 million[9]. - The leisure dining segment in Hong Kong saw a revenue decline of 8.9%, dropping to HKD 409.0 million from HKD 449.1 million[9]. - Revenue from mainland China decreased by 1.5% to HKD 763.1 million, while same-store sales recorded a negative growth of 8%[32]. - Institutional dining revenue decreased by 1.1% to HKD 452.4 million, with successful contract renewals maintaining market leadership[30]. - The total revenue from food and beverage sales for the six months ended September 30, 2024, was HKD 4,221,035,000, slightly down from HKD 4,276,291,000 in 2023[78]. Cost Management - Administrative expenses were reduced by 6.0% to HKD 242.2 million, compared to HKD 257.7 million in the previous year[11]. - The group’s employee benefit expenses (excluding share-based payments) were HKD 1,431,591,000, an increase from HKD 1,405,228,000 in the previous year[81]. - The net financial cost for the six months ended September 30, 2024, was HKD 26,788,000, a decrease from HKD 31,838,000 in the previous year[83]. Store Operations and Expansion - The group operated 381 stores in Hong Kong and 176 stores in mainland China as of September 30, 2024, compared to 380 and 171 stores respectively as of March 31, 2024[20]. - The fast food segment opened 3 new stores, ending the period with 174 stores, while the congee and noodle segment opened 2 new stores, ending with 46 stores[27]. - The group continued to expand its store network in the Greater Bay Area despite economic uncertainties[5]. - The group continues to expand its store network in the Greater Bay Area, with plans for 10 new stores[33]. Dividends and Share Repurchase - The group declared an interim dividend of HKD 0.15 per share, consistent with the previous year[2]. - The company repurchased a total of 5,700,000 shares at a total cost of approximately HKD 46 million, all of which were subsequently canceled[36]. - The interim dividend declared is HK$0.15 per share, unchanged from 2023[19]. Customer Engagement and Marketing - The "Club 100" membership program surpassed 1.8 million registered members, with significant growth in senior members following special promotions[24]. - The company launched new promotional products and digital enhancements to improve customer experience and drive sales during economic downturns[23][24]. - The group received multiple industry awards, including recognition as a "Hong Kong Power Brand 2023/2024" and accolades for its marketing strategies[6]. Financial Position and Liquidity - As of September 30, 2024, the group had cash of approximately HKD 1,071 million and a bank credit facility of HKD 799 million[35]. - The group has no pledged assets as of September 30, 2024, maintaining a stable financial position[38]. - The group recognized lease liabilities of HKD 770,919,000 in current liabilities and HKD 1,216,434,000 in non-current liabilities as of September 30, 2024[59]. - The total amount of trade receivables as of September 30, 2024, was HKD 56,939,000, a decrease from HKD 89,430,000 as of March 31, 2024[95]. Sustainability and ESG - The group achieved a waste recovery rate of 40% for food waste in its Hong Kong operations[44]. - The group received an ESG rating of "AA," the highest in the non-essential consumer sector, reflecting its commitment to sustainable development[44].

Financial Performance - For the year ended March 31, 2024, the Group reported revenue of HK$8,691.4 million, an increase of 8.3% from HK$8,024.0 million in 2023[19]. - Profit attributable to shareholders surged to HK$330.5 million, representing a 199.5% increase compared to HK$110.4 million in the previous year[19]. - Basic earnings per share increased to HK$0.57, up 200% from HK$0.19 in 2023[19]. - Total assets decreased by 9.2% to HK$6,513.9 million from HK$7,175.3 million[19]. - Net assets increased by 4.2% to HK$2,910.5 million, compared to HK$2,792.1 million in 2023[19]. - A final dividend of HK42 cents per share is recommended, with a total dividend payout ratio of 101.0% for the year[67]. - The Group did not receive any COVID-19 subsidies during the year under review, contrasting with HK$40.9 million received in the previous year[67]. - Adjusted net profit rose by 376.1% to HK$330.5 million, excluding COVID-19 subsidies and fair value loss on investment properties[101]. Business Expansion - The group opened a record 22 new stores in Mainland China during the year, contributing to nearly 550 outlets across Hong Kong and the Greater Bay Area (GBA)[34][36]. - The Group opened 22 new stores in the Greater Bay Area during the year, achieving a historical high while maintaining stable profit margins[79]. - The Group's store network expanded to 380 in Hong Kong and 171 in Mainland China as of 31 March 2024[110]. - The Group is actively seeking prime locations for further expansion in the Greater Bay Area with 12 new shops in the pipeline[149]. Operational Efficiency - Profit margins showed strong growth despite a challenging operating environment, indicating effective management and operational strategies[33][34]. - Gross profit margin improved significantly to 11.4%, up from 8.8% in the previous financial year, due to ongoing optimization of business models and operations[69]. - The Group continues to focus on internal cost efficiency and manpower optimization to bolster margins amid a challenging economic environment[82]. - The Group's focus on digitalisation and operational efficiency has improved margins across all brands[133]. Management and Leadership - A new Chief Executive Officer has been appointed, marking a transition to a sustainable leadership model[26]. - The outgoing CEO, Peter Lo, was recognized for his leadership during challenging economic conditions, and will remain on the Board of Directors[27]. - The Group's Chief Executive Officer transition was completed on April 1, 2024, marking the final step in a 10-year succession plan[68]. - The new CEO, Piony Leung, is anticipated to lead the group towards sustainable growth as market conditions normalize[32][35]. Market Performance - The Group's business in Hong Kong and Mainland China fully recovered, leading to steady growth in profit margins and network penetration[22]. - The Mainland China business experienced strong same-store sales growth and healthy operating margins, with a record number of 22 new shops opened in the Greater Bay Area during the year[76]. - Revenue from Mainland China operations increased by 14.5% to HK$1,515.3 million (FY2022/23: HK$1,323.5 million)[146]. Employee and Workplace Initiatives - The Group has been rated "AA" in the Hang Seng Corporate Sustainability Benchmark Index for nine consecutive years, reflecting its commitment to ESG initiatives[194]. - The Group received the "Happy Company Label" for five consecutive years and was recognized with the "Best HR Awards 2023" and "Employer of Choice Award" for its workplace initiatives[190]. - The Group has implemented extensive training programs for staff, focusing on areas such as AI transformation and IT security, to enhance workforce competitiveness[183]. - The Group has established effective recruitment mechanisms, including job fairs and partnerships with NGOs, to address the structural shrinkage of the labor force in Hong Kong[189]. Marketing and Customer Engagement - Successful marketing campaigns, including "A Taste of Togetherness," contributed to brand awareness and customer loyalty[118]. - The marketing campaign "Enjoy Happiness at Café de Coral" garnered over 200 million views on TikTok, boosting brand awareness[157]. - Club 100 membership program reached 1.6 million registered users, enhancing customer engagement through digital integration[121]. - Digital channels accounted for around 60% of total orders, prompting an upgrade to the mobile ordering system[161]. Sustainability and Corporate Responsibility - The Group has achieved a recycling rate of 40% for food waste in Hong Kong operations, up from 27%, equivalent to 2,643 tonnes of food waste[196]. - The Group surpassed its annual sustainability targets for energy consumption, greenhouse gas emissions, water usage, and food waste reduction, achieving these goals one year ahead of schedule[195].

Investment Rating - The report maintains a "Buy" rating for Cafe De Coral (341 HK) despite lowering the target price to HKD 11.15 from HKD 14.82, reflecting a potential upside of 28.4% from the current price of HKD 8.68 [2][6][10]. Core Insights - Cafe De Coral has shown resilience in a weak macroeconomic environment, outperforming the industry with a sales growth of 8% year-on-year in FY24, reaching HKD 8.69 billion, although slightly below the estimated 10% [2][6]. - The company’s net profit surged by 200% year-on-year to HKD 333.2 million, attributed to accelerated same-store sales growth (SSSG), significant gross profit margin expansion, stable labor costs, and limited rent increases [6][14]. - The report expresses cautious optimism regarding the new management team and the company's defensive nature, alongside an attractive dividend yield [2][6]. Financial Summary - Revenue projections for FY25E are set at HKD 9.06 billion, with a year-on-year growth rate of 4.3%, and expected to reach HKD 10.4 billion by FY27E [3][14]. - The operating profit is forecasted to increase from HKD 452.8 million in FY24 to HKD 568.7 million in FY25E, with net profit expected to rise from HKD 333.2 million to HKD 384.6 million in the same period [3][14]. - The report anticipates a slight decline in profit margins due to potential operational leverage challenges and the need for discounts to drive customer traffic [2][6]. Market Performance - The report highlights that the Hong Kong market's recovery has been slower than expected, with the SSS recovery rate projected at 88% for FY24, reflecting resilience in the fast-food segment [2][6]. - In mainland China, sales grew by 15% year-on-year in FY24, driven by an impressive SSSG of 11% and a 12% increase in store count, with expectations for further growth in FY25E [2][6]. Store Expansion Plans - Cafe De Coral plans to maintain its store expansion strategy, with a net opening of 4 stores in Hong Kong and 18 in mainland China in FY24, aligning with previous guidance [6][14]. - The company aims to open approximately 5 to 10 new stores in Hong Kong and 20 in mainland China in FY25E, indicating a commitment to growth despite macroeconomic challenges [6][14].

18 Jun 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Cafe De Coral (341 HK) Gaining market share under a weak macro FY24 results were decent. However, given such macro weakness (CDC has actually outperformed the industry), we have to trim our earnings forecast. But because of our high hope of the new management, CDC's defensive nature and its attractive dividend yield, we maintain BUY. HK market: While the industry recovery is slower than expected, CDC has outperf ...

Financial Performance - Group annual revenue increased to HKD 8,691.4 million (FY2022/23: HKD 8,024.0 million), with profit attributable to shareholders reaching HKD 330.5 million (FY2022/23: HKD 110.4 million), approximately 4.8 times higher excluding government pandemic subsidies[2] - Gross margin significantly improved to 11.4% (FY2022/23: 8.8%) due to optimized business models and operations[2] - Group revenue increased by 8.3% to HKD 8,691.4 million for the year ended March 31, 2024[7] - Profit attributable to shareholders surged by 199.5% to HKD 330.5 million, compared to HKD 110.4 million in the previous year[7] - Gross profit margin improved significantly to 11.4%, up from 8.8% in the previous year[7] - Revenue for the fiscal year ending March 31, 2024, increased to HKD 8,691,449 thousand, up from HKD 8,024,044 thousand in the previous year[39] - Gross profit rose to HKD 989,286 thousand, compared to HKD 702,649 thousand in the prior year[39] - Net profit attributable to equity holders of the company surged to HKD 330,454 thousand from HKD 110,353 thousand[39] - Profit before tax more than doubled to 389,528 thousand HKD in 2024 from 144,176 thousand HKD in 2023[82] - Basic earnings per share increased to 0.57 HKD in 2024, up 200% from 0.19 HKD in 2023[84] - Net profit attributable to equity holders of the company increased to HKD 330,454 thousand in 2024, up from HKD 110,353 thousand in 2023, representing a significant growth[86] - Diluted earnings per share rose to HKD 0.57 in 2024 compared to HKD 0.19 in 2023[86] Dividend and Shareholder Returns - The company proposed a final dividend of 42 HK cents per share (FY2022/23: 28 HK cents), with a total annual dividend payout ratio of 101.0%[2] - The company proposed a final dividend of 42 HK cents per share for the year ended March 31, 2024, with a full-year payout ratio of 101.0%[18] - Proposed dividends increased to HKD 245,996,000 from HKD 163,997,000[42] - The company proposed a final dividend of 42 HK cents per share for 2024, up from 28 HK cents per share in 2023, with a total dividend of 57 HK cents per share for the year[87][93] Business Segments Performance - China mainland business showed strong recovery with robust same-store sales rebound and steady profit margins, with a record number of new stores opened during the year[2] - The company opened a record 22 new stores in China, maintaining overall profit margins despite challenging operating conditions[5] - The company's fast-food segment in Hong Kong enhanced product design, value-for-money offerings, and brand promotion activities[2] - The company's institutional catering and casual dining segments in Hong Kong also showed improved performance compared to the previous year[2] - Hong Kong fast food business revenue increased by 6.9% to HKD 5,138.1 million[11] - Mainland China business revenue grew by 14.5% to HKD 1,515.3 million[11] - Hong Kong segment profit increased by 32.0% to HKD 618.9 million[17] - Mainland China segment profit rose by 42.2% to HKD 179.4 million[17] - Fast food revenue increased by 6.9% to HK$5,138.1 million (2022/23: HK$4,808.4 million), accounting for 59.1% of total revenue[20] - Casual dining revenue increased by 2.5% to HK$879.2 million (2022/23: HK$857.8 million)[22] - Institutional catering revenue increased by 18.0% to HK$1,019.6 million (2022/23: HK$863.9 million), with 99 operational units as of March 31, 2024 (2023: 94)[24] - Mainland China business revenue increased by 14.5% to HKD 1,515.3 million (FY2022/23: HKD 1,323.5 million), with South China fast food business revenue rising by 20.6% to RMB 1,352.0 million and same-store sales growing by 11%[25] - Total classified revenue for the year ended March 31, 2024, was HK$8,807,626,000, with HK$7,181,814,000 from Hong Kong and HK$1,625,812,000 from Mainland China[69] - External revenue for the year ended March 31, 2024, was HK$8,691,449,000, with HK$7,176,068,000 from Hong Kong and HK$1,515,381,000 from Mainland China[69] - Classified performance for the year ended March 31, 2024, was HK$798,315,000, with HK$618,894,000 from Hong Kong and HK$179,421,000 from Mainland China[69] - Revenue from food and beverage sales increased to 8,603,538 thousand HKD in 2024, up 8.7% from 7,918,008 thousand HKD in 2023[75] Store Expansion and Operations - The company opened 22 new stores in the Greater Bay Area, achieving a record high[7] - The company currently operates nearly 550 stores in Hong Kong and the Greater Bay Area, with significant growth potential in the region[5] - The company operates 219 fast food outlets as of March 31, 2024 (2023: 216), with 8 new outlets in preparation[21] - The company operates 380 stores in Hong Kong (2023: 376) and 171 stores in mainland China (2023: 153)[19] - The company opened 22 new stores in the Greater Bay Area, with a net increase of 18 stores, bringing the total store network to 171 (March 31, 2023: 153)[26] - The company expanded its store network in Hong Kong, leveraging the current property market adjustments for growth opportunities[36] - In mainland China, the company focused on sustainable expansion, particularly in Guangdong, aiming to strengthen its presence in the Greater Bay Area[36] Digitalization and Automation - The company's focus on digitalization and automation has contributed to improved profit margins and cost control[2] - The "Club 100" app reached 1.6 million registered members, and 95% of stores have installed self-ordering kiosks[21] - Digital ordering accounts for approximately 60% of total orders, and the company has upgraded its mobile ordering system to improve user experience[26] - The company has accumulated over 4.6 million members in Mainland China since launching its membership program in 2022, contributing significantly to sales revenue[26] - The company's "Club 100" membership strategy significantly enhanced customer relationships and brand loyalty, with plans to further improve the VIP program[36] Financial Position and Capital Management - As of March 31, 2024, the company held cash of approximately HKD 1,261 million and had available bank credit facilities of HKD 1,081 million[28] - The company's capital expenditure (excluding right-of-use assets) for the year was HKD 318 million (FY2022/23: HKD 465 million), with outstanding capital commitments of HKD 516 million as of March 31, 2024[29] - The company provided guarantees of approximately HKD 1,920 million for bank credit facilities granted to its subsidiaries as of March 31, 2024 (March 31, 2023: HKD 2,226 million)[30] - Total assets decreased to HKD 6,513,924,000 from HKD 7,175,340,000 year-over-year[42] - Cash and cash equivalents dropped to HKD 1,260,948,000 from HKD 1,671,978,000[42] - Property, plant, and equipment decreased to HKD 1,552,675,000 from HKD 1,617,702,000[42] - Investment properties declined to HKD 440,300,000 from HKD 559,200,000[42] - Total liabilities decreased to HKD 3,603,411,000 from HKD 4,383,277,000[44] - Net current liabilities improved to HKD (200,827,000) from HKD (652,197,000)[44] - Lease liabilities in current liabilities increased to HKD 774,067,000 from HKD 760,629,000[44] - Lease liabilities in non-current liabilities decreased to HKD 1,289,060,000 from HKD 1,508,455,000[44] - Total equity increased to HKD 2,910,513,000 from HKD 2,792,063,000[42] - The company's total bank credit facilities amounted to HKD 1,627,459,000 as of March 31, 2024, with HKD 546,783,000 utilized, leaving HKD 1,080,676,000 available[61] - The company's net cash position was HKD 875,948,000 as of March 31, 2024, compared to HKD 692,028,000 as of March 31, 2023, indicating low capital risk[65] - The company's total undiscounted cash outflows for non-derivative financial liabilities were HKD 3,392,292,000 as of March 31, 2024, with HKD 1,711,698,000 due within one year[62] - The company's listed equity investments under fair value through other comprehensive income (FVTOCI) were valued at HKD 74,499,000 as of March 31, 2024[64] - The company's capital management strategy includes adjusting dividend payments, returning capital to shareholders, issuing new shares, or selling assets to reduce debt[63] - The company's liquidity is primarily supported by internal resources and borrowings from financial institutions, with cash mainly used to pay trade payables, other payables, and operating expenses[61] - Capital commitments for the acquisition of property, plant, and equipment stood at HKD 516,052 thousand in 2024, down from HKD 531,428 thousand in 2023[92] Risk Management and Financial Instruments - The company's profit would decrease/increase by HKD 1,607,000 (2023: HKD 4,091,000) and increase/decrease by HKD 2,493,000 (2023: HKD 2,750,000) if interest rates increase/decrease by 0.5% as of March 31, 2024[52] - A 10% increase/decrease in listed equity securities (financial assets at fair value through other comprehensive income) would result in an increase/decrease of HKD 7,450,000 (2023: HKD 8,675,000) in the company's investment reserve as of March 31, 2024[54] - The company's trade receivables as of March 31, 2024, totaled HKD 89,513,000, with a loss provision of HKD 83,000[57] - The company's trade receivables as of March 31, 2023, totaled HKD 75,944,000, with a loss provision of HKD 76,000[57] - The company's financial assets subject to expected credit loss models are categorized into cash and cash equivalents, trade receivables, and other financial assets measured at amortized cost[56] - The company's credit risk is managed collectively, with most bank balances and deposits held in institutions with investment-grade credit ratings[55] - The company does not use any hedging arrangements to mitigate foreign exchange risk, as it primarily operates in Hong Kong and Mainland China[51] - The company's financial risk management focuses on minimizing potential adverse effects on financial performance due to market unpredictability[50] - The company is evaluating the impact of new and revised accounting standards and interpretations, but the effect on its operating performance and financial position is not yet determinable[49] - The company's financial assets at fair value through other comprehensive income are subject to price risk, with fair value determined based on market conditions and assumptions[53] - Cash and cash equivalents are subject to impairment provisions under HKFRS 9, but the identified impairment losses are not significant due to the investment-grade credit ratings of all financial institutions[58] - The expected loss rate for trade receivables was assessed to be close to zero as of March 31, 2024, and March 31, 2023, with no significant impairment provisions made[58] - Trade receivables increased to HKD 89,513 thousand in 2024 from HKD 75,944 thousand in 2023[88] - Other receivables, including recoverable VAT and receivables from security logistics companies, amounted to HKD 63,080 thousand in 2024, slightly up from HKD 62,168 thousand in 2023[89] - Trade payables decreased to HKD 210,767 thousand in 2024 from HKD 225,881 thousand in 2023[91] ESG and Sustainability - The company achieved a 40% food waste recycling rate in Hong Kong, up from 27%, recycling 2,643 tons of food waste[34] - The company's ESG efforts were recognized with multiple awards, including the "ESG Benchmark Awards" and the "Green Kitchen" certification[34] - The company's "Let's Eat Together" food assistance program provided HKD 12 million in aid to 4,000 caregivers[35] Corporate Governance and Management - The company has transitioned from family management to a sustainable professional management model, with senior management succession completed[32] - The company has been awarded the "Happy Workplace" title for five consecutive years and received the "Best HR Awards 2023" for the third year[33] - The company maintained high standards of corporate governance, complying with all code provisions of the Corporate Governance Code of the Hong Kong Stock Exchange[95] - The audit committee, along with management and external auditors PwC, reviewed the company's financial reporting process and internal controls, confirming the accuracy of the financial statements[96] - No purchase, sale, or redemption of the company's listed securities occurred during the year ended March 31, 2024[97] Expenses and Costs - Administrative expenses rose by 3.5% to HKD 503.2 million[13] - Income tax expense increased by 70.7% to HKD 56.3 million[15] - Employee benefits expenses rose to 2,877,765 thousand HKD in 2024, a 7.3% increase from 2,681,659 thousand HKD in 2023[77] - Net finance costs increased to (63,288) thousand HKD in 2024, up 6.1% from (59,661) thousand HKD in 2023[79] - Tax expenses surged to 56,313 thousand HKD in 2024, a 70.7% jump from 32,989 thousand HKD in 2023[81] - The company implemented a cross-departmental task force to address rising food and supply chain costs, aiming to improve profit margins[36] Non-Current Assets and Investments - Non-current assets (excluding financial instruments and deferred tax assets) in Hong Kong as of March 31, 2024, were HK$3,861,999,000, compared to HK$4,117,381,000 in 2023[73] - Non-current assets (excluding financial instruments and deferred tax assets) in Mainland China as of March 31, 2024, were HK$803,946,000, compared to HK$780,659,000 in 2023[73] - Total classified assets as of March 31, 2024, were HK$6,372,499,000, with HK$5,231,695,000 from Hong Kong and HK$1,140,804,000 from Mainland China[73] - Total assets decreased to 6,513,924 thousand HKD in 2024 from 7,175,340 thousand HKD in 2023, a decline of 9.2%[74] - Investment property fair value loss widened to (31,900) thousand HKD in 2024 from (20,100) thousand HKD in 2023[76] - Depreciation and amortization (excluding depreciation of right-of-use assets - properties) for the year ended March 31, 2024, was HK$394,190,000[69] - Fair value loss on investment properties for the year ended March 31, 2024, was HK$31,900,000[69] - Impairment loss reversal on property, plant, and equipment for the year ended March 31, 2024, was HK$4,320,000[69] - Financial income for the year ended March 31, 2024, was HK$45,304,000[69]

Financial Performance - The Group's revenue for the first half of FY2023/24 increased by 10.8% to HK$4,318.6 million, and profit attributable to shareholders increased by 84.4% to HK$200.6 million[7]. - Excluding government COVID-19 subsidies received last year, the Group's profit attributable to shareholders for the period under review was about three times that of the same period last year[7]. - Profit attributable to shareholders rose by 84.4% to HK$200.6 million, up from HK$108.7 million in 2022, with a 195.7% increase when excluding government COVID-19 subsidies[21]. - Basic earnings per share increased by 84.0% to HK34.6 cents, up from HK18.8 cents in 2022[26]. - The profit for the period reached HK$201,221, which is an increase of 84.7% from HK$108,767 in the previous year[89]. - The company reported a total comprehensive income of HK$201,442 for the period, significantly higher than HK$44,174 in the previous year[89]. Revenue Segments - Revenue from the Quick Service Restaurants segment was HK$2,565.4 million, a 9.3% increase from HK$2,348.0 million in 2022[13]. - Institutional Catering revenue increased by 21.0% to HK$457.6 million from HK$378.3 million in 2022[13]. - Revenue from the Casual Dining business increased by 8.5% to HK$449.1 million, compared to HK$414.0 million in the previous year[37]. - Revenue from Mainland China operations increased by 13.2% to HK$774.8 million, up from HK$684.2 million in the previous year[40]. - Sales of food and beverages for the six months ended September 30, 2023, reached HK$4,276,291, an increase of 11.1% from HK$3,849,198 in 2022[199]. Cost Management and Profitability - Gross profit margin improved to 12.1% for the six months ended 30 September 2023, compared to 8.8% in 2022, due to effective operating cost control and productivity enhancements[14]. - The Quick Service Restaurant business achieved substantial improvement in margins through operating cost control, manpower productivity enhancement, supply chain efficiency, strategic sourcing, and digitalisation[7]. - The Group is committed to improving margins through pricing strategy, menu management, and effective control of food costs[41]. Dividends and Shareholder Returns - An interim dividend of HK15 cents per share is declared for the six months ended 30 September 2023, compared to HK10 cents in 2022[7]. - The company declared an interim dividend of HK$87,856, compared to HK$58,570 for the same period last year, reflecting a positive outlook[87]. Operational Developments - The Group is focusing on network expansion in the Greater Bay Area to tap into the vast mass-market consumer segment[7]. - The Mainland China business recorded strong same store sales growth, particularly in the second quarter, despite economic challenges[7]. - The introduction of a plant-based series of dishes has attracted new consumer segments and increased patronage[31]. - Deployment of ordering kiosks and mobile ordering apps has enhanced customer experience and reduced manpower costs[34]. - The mobile ordering app was revamped, leading to significant growth in traffic and sales on the eatCDC.com platform[36]. Financial Position and Cash Flow - As of September 30, 2023, the Group had cash of approximately HK$1,117.7 million and available banking facilities of HK$1,949.3 million, with a current ratio of 0.8 and a cash ratio of 0.5[43]. - The Group's external borrowing decreased to HK$400 million from HK$980 million, maintaining a nil gearing ratio[43]. - The Group's cash and cash equivalents at the end of the period were HK$1,117,674,000, down from HK$1,580,382,000, reflecting a decrease of 29.3%[95]. - Net cash generated from operating activities for the six months ended 30 September 2023 was HK$820,703,000, a decrease of 6.5% compared to HK$877,786,000 in 2022[95]. Employee and Management Developments - The Group's workforce increased to 19,666 employees as of September 30, 2023, reflecting ongoing recruitment and talent development efforts[44]. - The Group continues to enhance training resources for employees, focusing on leadership and customer service skills to meet evolving customer demands[47]. - The Group has completed the handover of senior management across all business units to ensure knowledge transfer and operational experience[47]. Corporate Governance and Compliance - The company complied with all code provisions of the Corporate Governance Code during the six months ended September 30, 2023[79]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the unaudited interim results for the six months ended September 30, 2023[79]. - The company’s financial reporting process and internal control are supervised by the Audit Committee, which comprises three Independent Non-executive Directors and two Non-executive Directors[79]. Future Outlook - The Group remains cautiously optimistic about performance and prospects in the second half of the year despite the ongoing economic recovery challenges[48]. - The company expects to continue its market expansion and product development strategies in the upcoming periods[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 CAFÉ DE CORAL HOLDINGS LIMITED 大 家 樂 集 團 有 限 公 司* (於百慕達註冊成立之有限公司) 網址: www.cafedecoral.com （股份代號：341） 中期業績公告 截至二零二三年九月三十日止六個月 撮要 ◆ 集團於二零二三╱二四年度上半年的收入增加 10.8%至 4,318.6 百萬 港元，股東應佔溢利增加 84.4%至 200.6 百萬港元，若撇除去年獲政 府發放的新冠肺炎疫情資助，回顧期內集團股東應佔溢利約為去年 同期三倍。 ◆ 香港業務表現顯著回升，全賴出色的營運策劃、精心設計的產品和餐 單選擇，以及成功的品牌形象企劃及營銷推廣活動，推動香港業務快 速增長。速食餐飲業務的利潤率大幅改善，主要得益於積極控制營運 成本、提升人員生產力、加強供應鏈管理和策略性採購，以及推動數 碼化和自動化取得成效。 ◆ 中國內地業務取得令人鼓舞的業績，尤其在第二季度。 ...

Financial Performance - Revenue for the year ended 31 March 2023 reached HK$8,024.0 million, a 6.9% increase compared to the previous year[7] - Profit attributable to equity holders of the company surged to HK$110.4 million, a 420.2% increase year-over-year[7] - Basic earnings per share rose to HK$0.19, a 375.0% increase from HK$0.04 in the previous year[7] - Total assets increased by 4.4% to HK$7,175.3 million as of 31 March 2023[7] - Net assets per share decreased slightly by 1.2% to HK$4.77[7] - Interim and final dividends per share increased by 35.7% to HK38 cents[7] - Group revenue increased by 6.9% to HK$8,024.0 million for the year ended 31 March 2023, compared to HK$7,508.8 million in FY2021/22[21][30] - Profit attributable to shareholders rose to HK$110.4 million, up from HK$21.2 million in FY2021/22, including HK$40.9 million in COVID-19 subsidies received during the year[21][30] - Revenue increased by 6.9% to HK$8,024.0 million in FY2022/23 compared to HK$7,508.8 million in FY2021/22[35][36] - Gross profit margin rose to 8.8% in FY2022/23 from 7.3% in FY2021/22, driven by better control of food and labor costs[38][39] - Profit attributable to equity holders surged 420.2% to HK$110.4 million in FY2022/23 from HK$21.2 million in FY2021/22, primarily due to business recovery[42] - Adjusted net profit increased by 165.1% to HK$69.5 million in FY2022/23 compared to a loss of HK$106.6 million in FY2021/22[43] - Basic earnings per share surged by 375.0% to HK19 cents in FY2022/23[43] - The Group's dividend payout ratio reached 201.7% for the year, with a final dividend of HK28 cents per share[43] - The company paid an interim dividend of HK10 cents per share and proposed a final dividend of HK28 cents per share, totaling approximately HK$163,997,000[170] - Distributable reserves of the company as of 31 March 2023 amounted to approximately HK$971,586,000[171] COVID-19 Impact and Recovery - The company faced challenges from the fifth wave of COVID-19 and slower-than-anticipated economic recovery in Hong Kong[9] - A nationwide COVID-19 outbreak in Mainland China during the third quarter significantly impacted the company's business[9] - The company achieved a solid return to growth following the worst of the COVID-19 pandemic[9] - Hong Kong business improved from Q2 2023, but H2 results were impacted by slower-than-expected economic recovery and a nationwide COVID-19 outbreak in Mainland China[22][23][30] - Mainland China business experienced a V-shaped recovery in early 2023 following the relaxation of pandemic controls, with healthy overall performance and satisfactory network expansion progress[23][33] - Greater Bay Area business in Mainland China was seriously impacted by COVID-19 outbreaks but returned to normal levels from mid-January 2023[33] - The Group received HK$40.9 million in COVID-19 subsidies in FY2022/23, down from HK$127.8 million in FY2021/22[42] - The Group's business in Hong Kong improved from the second quarter of FY2022/23, despite slower economic recovery and COVID-19 impacts[166] - Mainland China experienced a V-shaped recovery in business from mid-January following the relaxation of pandemic-related controls[167] - Hong Kong business performance improved in the second quarter of the fiscal year, but the recovery pace was slower than expected, impacting overall performance[169] - Mainland China business was severely affected by nationwide COVID-19 outbreaks in the third quarter, but experienced a V-shaped recovery starting mid-January[169] Business Expansion and Market Development - The company is expanding into new markets beyond traditional dining and commercial districts, including residential zones in the Greater Bay Area[15] - The company aims to improve profit margins in Hong Kong and expand its shop network in Mainland China over the next three years, though timelines may need adjustment due to pandemic challenges[16] - The company successfully changed consumer habits in Zhongshan by introducing a new breakfast service, attracting customers who traditionally ate breakfast at home[15] - The company's Club 100 CRM program has built direct relationships with loyal customers and driven repeat visits[15] - The company opened 20 new shops in Mainland China during the fiscal year, with 7 more in the pipeline[58] - The company's CRM membership project attracted over 3 million members, with digital marketing efforts boosting sales[59] - The Group expanded its store network to 376 stores in Hong Kong and 153 stores in Mainland China as of 31 March 2023[44][46] - The Group opened 13 new Café de Coral fast food stores and 6 new Super Super Congee & Noodles stores during the year[49] - The company's digital promotion efforts, including a TikTok campaign, attracted over 70 million online views and contributed to sales growth[60] - The company's CRM membership program has attracted over 3 million members, with a focus on increasing membership and engaging existing members through various activities[60] - The Group expects to accelerate new store openings in Mainland China as the economy recovers, focusing on the Greater Bay Area and Macau[66] - The Group is expanding its Café de Coral fast food network by strategically mapping house brands to suitable locations[66] Operational Efficiency and Digitalization - The company's digitalization and automation efforts are expected to strengthen margins and enhance productivity[12] - The company's marketing campaigns have improved sales and enhanced brand value and reputation as an industry leader[12] - Hong Kong business focused on cost control, digitalization, and automation, leading to improved margins and productivity[22][30] - The Group introduced a new smaller store format to reduce running costs and improve operating margins[49] - Digitalization efforts, including enhanced mobile ordering apps and serving robots, significantly improved customer experience and operational efficiency[49] - Robots have been deployed in 49 stores to improve operational productivity and enhance customer experience[59] - The company has introduced robots in 49 stores in Mainland China to enhance operational efficiency and provide high-tech entertainment for families with children[60] - The Group's digitalization efforts are key to building brand affiliation and integrating customer experiences through an Omni-channel strategy[66] Corporate Governance and Leadership - The company's management transition has been successful, leading to continuous improvement in business fundamentals[9] - The company's management team is focused on building, operating, and optimizing a multi-brand business strategy[15] - The company is experimenting with new ideas to build a stronger and more resilient business as it transitions to a new management team[19] - The Board and management focus on high standards of corporate governance, aiming to safeguard shareholder interests and ensure the Group's long-term sustainability[82] - The Company complied with all provisions of the Corporate Governance Code and adopted recommended best practices for the year ended 31 March 2023[83] - The company's corporate culture emphasizes continuous learning, innovation, and adaptability to changing environments, aiming to bring happiness to customers, employees, and shareholders[85] - The management team upholds high standards of governance, transparency, and integrity, guided by core values such as Pursuit of Excellence, People-Oriented, and Creating Sustainable Value[86] - The Board of Directors consists of ten members, including four Non-executive Directors, four Independent Non-executive Directors, and two Executive Directors, ensuring a balanced composition and diverse expertise[89] - The Chairman, Mr. Lo Hoi Kwong, and the Chief Executive Officer, Mr. Lo Tak Shing, have clearly defined responsibilities outlined in the Board Charter, with the Chairman leading the Board and the CEO overseeing the implementation of the Group's strategies and daily operations[91] - The company has a strong governance framework, disciplined risk management, and effective internal controls, which support long-term value creation for shareholders through sustainable business development[89] - The Board periodically evaluates its performance with the assistance of external professional advisors to enhance effectiveness and corporate governance, focusing on areas such as corporate vision, strategy, and management succession[91] - The Non-executive and Independent Non-executive Directors contribute independent judgment and strategic decision-making, with their independence confirmed annually under the Listing Rules[93] - The Board ensures mechanisms are in place to facilitate independent views and inputs, which are reviewed regularly to maintain effectiveness[94] - The Board maintains a balanced composition with 2 female Directors out of 10, including a newly appointed female Independent Non-executive Director during the year[98][101] - The Group's workforce gender ratio in Hong Kong is 75.8% female and 24.2% male, while in Mainland China it is 65.2% female and 34.8% male[99][102] - The Nomination Committee conducts annual reviews of Independent Non-executive Directors' independence and the Board's structure, size, and composition[96][97] - Directors receive regular updates and presentations on the Group's business developments and regulatory changes to facilitate their responsibilities[107] - Newly appointed Directors receive a comprehensive induction package and meetings with external legal advisers to ensure awareness of their responsibilities[106] - The Board Diversity Policy aims to achieve diversity through measurable objectives in skills, experience, cultural background, gender, and age[97] - Independent Non-executive Directors are remunerated by fixed fees and do not participate in the Company's share schemes[97] - The Board conducts periodic performance evaluations to enhance the operations of the Board and its Committees[97] - The Chairman of the Board meets regularly with Independent Non-executive Directors outside the boardroom[97] - Directors are entitled to seek in-house and independent professional advice at the Company's expense[97] - Ms Fang Suk Kwan, Katherine was appointed as an Independent Non-executive Director on 3 January 2023[111] - The Board is responsible for providing overall strategic direction and effective oversight of management, including approval of strategic and business plans, financial budgets, and significant transactions[112] - The Board has delegated authority to the Management Board for day-to-day operations, including development and implementation of corporate strategy, business plans, and financial budgets[114] - The Board has established the Nomination Committee, Remuneration Committee, and Audit Committee to assist in discharging its functions, with each committee having specific written terms of reference[115] - The Nomination Committee currently comprises five Directors, with the majority being Independent Non-executive Directors[116] - The Nomination Committee held three meetings during the year to review the Board's structure, size, and composition, focusing on diversity and independence of Independent Non-executive Directors[120] - The Remuneration Committee held two meetings to review and recommend remuneration packages for Executive Directors and senior management, with a significant proportion linked to corporate and individual performance[124] - The Audit Committee held four meetings to review financial information, oversee financial reporting systems, and assess risk management and internal control systems[127] - The Remuneration Committee recommended the adoption of a new share option scheme and the grant of share options[125] - The Audit Committee reviewed the independence and engagement of the external auditor, as well as their remuneration for audit and non-audit services[127] - The Nomination Committee prepared and nominated a new Independent Non-executive Director for appointment[120] - The Remuneration Committee considered remuneration policies and strategies for the Group[125] - The Audit Committee reviewed the Company's ESG reporting and internal audit processes[127] - The Audit Committee approved the Company's connected transactions and conducted an annual review of continuing connected transactions[127] - The Remuneration Committee recommended the renewal of Directors' and officers' liability insurance policy[128] - The Board held four regular meetings during the year to review the Group's development directions and strategies[130] - Directors' attendance rates for Board Meetings, Board Committee Meetings, and Annual General Meetings were consistently high, with most directors attending all scheduled meetings[131] - The company paid a total of HK$5,078,000 to its external auditor, PricewaterhouseCoopers, including HK$3,593,000 for audit services and HK$1,485,000 for non-audit services such as taxation and information system advisory services[137] - The Board is responsible for evaluating and determining the nature and extent of risks according to its risk appetite, ensuring the establishment of effective risk management and internal control systems[138] - The company's risk management and internal control systems are based on internationally recognized standards and designed to manage, but not eliminate, the risk of failure to achieve business objectives[139] - The Group's risk governance structure is based on the "3 lines of defence" model, including day-to-day operational management, risk and compliance oversight, and independent assurance[140] - The enterprise risk management (ERM) policy clearly defines the roles and responsibilities of the Board, Audit Committee, Management Board, department and operation heads, and Internal Audit[140] - The Group's ERM approach is a structured mechanism for identifying, evaluating, prioritizing, managing, and monitoring risks, categorized into strategic, operational, financial, and compliance risks[143] - Key risks managed and monitored during the year included food safety, supply chain management, site acquisition, project management, and human resources management[146] - Climate change is considered an emerging risk, and further actions will be taken if it becomes a significant threat to business operations[146] - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems for the year ended 31 March 2023, covering financial, operational, and compliance controls[146] - The Audit Committee reviewed the adequacy of resources, staff qualifications, experience, training programs, and budget for internal audit, accounting, financial reporting, and ESG performance and reporting[146] - The Group's Internal Audit team, co-sourced with external consultants, provides independent, objective assurance and consulting services on risk management and internal control[143] - Risk owners are required to submit risk alerts with mitigation plans and regular risk reports to the Management Board and Audit Committee for ongoing review and monitoring[146] - The Board received confirmation from the Management Board on the effectiveness of the risk management and internal control systems, with no significant areas of concern identified[146] - The Group has adopted a clear anti-corruption policy and provides ongoing anti-corruption training to ensure compliance and ethical behavior among employees[147] - The Company has established a Protocol on Malpractice Reporting and Investigation, allowing employees and business partners to report concerns confidentially, with reports directly handled by the Head of Internal Audit[147] - The Company adheres to the Model Code for Securities Transactions by Directors of Listed Issuers, with all Directors confirming compliance during the year ended 31 March 2023[147] - The Group's Disclosure Policy ensures timely and equal dissemination of inside information, with a dedicated Disclosure Team responsible for evaluating and approving disclosures[148] - The Company Secretaries provide governance support to the Board and ensure compliance with professional training requirements under the Listing Rules[149] - The Company's Dividend Policy aims to provide regular and stable dividends, with payouts based on profit available for distribution, historical payout ratios, and consideration of business performance and market conditions[153] - The Shareholders' Communication Policy ensures effective communication with shareholders through various channels, including meetings, publications, and conferences, with regular feedback reported to the Board[154] - The Company had 551 registered shareholders as of 31 March 2023[160] - 24.501% of registered shareholders held 0–1,000 shares, totaling 11,012 shares (0.002% of total issued shares)[162] - 44.827% of registered shareholders held 1,001–5,000 shares, totaling 647,245 shares (0.110% of total issued shares)[162] - 11.615% of registered shareholders held 5,001–10,000 shares, totaling 541,800 shares (0.093% of total issued shares)[162] - 14.701% of registered shareholders held 10,001–100,000 shares, totaling 2,593,937 shares (0.443% of total issued shares)[162] - 4.356% of registered shareholders held 100,001 or more shares, totaling 581,910,039 shares (99.352% of total issued shares)[162] - HKSCC Nominees Limited held 403,673,838 shares as of 31 March 2023[163] - The Company maintained the required 25% public float throughout the financial year ended 31 March 2023[163] - The company's sustainability performance is disclosed in four key pillars: Catering to Customers, Empowering Employees, Focusing on Food, and Preserving the Planet[170] - No purchase, sale, or redemption of listed securities by the company or its subsidiaries during the year ended 31 March 2023[172] - No outstanding convertible securities, options, warrants, or similar rights as of 31 March 2023, except for the Share Option Schemes described in the report[172] - The 2012 Share Option Scheme expired on 10 September 2022, with no share options granted under the scheme as of the report date[178] - The company maintains liability insurance to provide appropriate cover for directors and officers of the group[175] - No management contracts for the administration of the company's business were entered into or existed during the year[176] - No arrangements enabling directors to acquire benefits through shares or debentures of the company or any other body corporate during the year ended 31 March 2023[177] - Total number of ordinary shares available for issue is 58,570,403, representing 10% of the issued shares as of the report date[186] - 24,870,000 share options have been granted under the 2022 Scheme as of the report date[187] - The 2022 Scheme will remain in force until 7 September 2032 unless terminated earlier[190] - The exercise price of options granted is determined based on the highest of: (i) the closing price on the grant date, (ii) the average closing price for the five business days preceding the grant date, and (iii) the nominal value of a share[190] - The maximum entitlement for each participant under the 2022 Scheme shall not exceed 1% of the shares in issue in any 12-month period[189] - The vesting period of options granted is determined at the discretion of the Board[190] - The amount payable on acceptance of the options is HK$1.00[190] - The 2012 Scheme expired on 10 September 2022[182] - The purpose of the share option schemes is to attract and retain high-quality personnel and align the interests of grantees with shareholders[184] - The 2022 Scheme was adopted on 8 September 2022 following a shareholders' resolution[187] - 24,870,000

Financial Performance - The group's total revenue increased to HKD 8,024.0 million for the year ended March 31, 2023, compared to HKD 7,508.8 million in the previous year, representing a growth of approximately 6.9%[2] - Shareholders' profit attributable to the group was HKD 110.4 million, a significant increase from HKD 21.2 million in the previous year, marking a growth of over 419%[2] - The gross profit margin improved to 8.8%, up from 7.3% in the previous year, mainly due to effective control of food and labor costs[14] - Profit attributable to shareholders rose by 420.2% to HKD 110.4 million, up from HKD 21.2 million in the previous year, primarily due to economic recovery[17] - The operating profit for the same period was HKD 203,837, up 55.2% from HKD 131,174 in the previous year[38] - The group reported a total segment profit of HKD 594,991 for the year ended March 31, 2023, compared to HKD 514,220 for the previous year, reflecting a growth of approximately 15.7%[73] - The company reported a pre-tax profit of HKD 144,176,000 for 2023, compared to HKD 50,789,000 in 2022, showing a significant increase of approximately 184%[83] Dividends and Shareholder Returns - The group plans to distribute a final dividend of HKD 0.28 per share, up from HKD 0.18 per share in the previous year, resulting in a total dividend payout ratio of 201.7%[2] - The board proposed a final dividend of HKD 0.28 per share, up from HKD 0.18 per share in the previous year, resulting in a total payout ratio of 201.7% for the year[20] - The proposed final dividend for the year is HKD 0.28 per share, up from HKD 0.18 per share in 2022, representing a 55.6% increase[88] - The total dividend for the year, including an interim dividend of HKD 0.10 per share, amounts to HKD 0.38 per share, up from HKD 0.28 per share in the previous year, reflecting a 35.7% increase[94] Market Expansion and Strategy - The management team is focused on enhancing multi-brand business strategies and improving profitability through digitalization and automation[5] - The group has successfully expanded into new markets beyond traditional dining areas, particularly in residential zones, despite facing challenges during the expansion[5] - The group aims to increase profitability in Hong Kong and expand its store network in mainland China over the next three years, although timelines may need adjustment due to pandemic challenges[7] - The company plans to continue expanding its network in mainland China, anticipating sustained growth as pandemic restrictions ease[11] - The group plans to expand its store network in mainland China, particularly in the Greater Bay Area, despite a cautious approach to market opportunities[36] Operational Improvements and Innovations - The group implemented a digital transformation strategy, enhancing customer dining experiences through self-service kiosks and a new mobile app, which significantly increased mobile orders and membership[23] - The group introduced a new store format with smaller sizes and lower operating costs to improve profit margins in a competitive market[23] - The group is preparing to launch a fully automated rice production line to improve production efficiency in the institutional dining sector[26] - The group is committed to improving food quality and safety in response to supply chain issues affecting one of its brands, Vital Lunch[7] - The group has established a cross-business task force to address rising food and supply chain costs through strategic procurement and menu redesign[35] Employee and Labor Management - The company has a total of 19,555 employees as of March 31, 2023, up from 17,954 the previous year[33] - The group is actively recruiting and training staff to address industry-wide labor shortages and meet long-term business needs[35] Financial Position and Assets - As of March 31, 2023, the company recorded cash of approximately HKD 1,672 million and available bank credit of HKD 873 million[29] - The company's capital expenditure for the review year was HKD 465 million, a decrease from HKD 507 million in the previous year[30] - Total assets as of March 31, 2023, amounted to HKD 7,175,340, an increase from HKD 6,871,846 in the previous year[41] - The group's total liabilities related to lease liabilities were HKD 68,375 for the year ended March 31, 2023, compared to HKD 76,846 in the previous year, reflecting a decrease of approximately 11.0%[72] Government Support and Subsidies - The group received government subsidies related to COVID-19 amounting to HKD 40.9 million during the year, down from HKD 127.8 million in the previous year[2] - Government grants received amounted to HKD 45,201, a decrease from HKD 130,360 in the previous year, primarily due to reduced subsidies related to the COVID-19 pandemic[77] Sustainability and Environmental Initiatives - The company aims to reduce waste by phasing out single-use plastic utensils and adopting more environmentally friendly alternatives[34] - The company has received an "AA" rating in the Hang Seng Sustainable Development Index for eight consecutive years[34] Customer Engagement and Loyalty - The customer relationship management (CRM) program attracted over 3 million members, focusing on increasing member engagement and activities[28] - The number of active members in the "Club 100" program increased threefold to over 1.4 million, enhancing customer engagement and brand loyalty[35]