CAFE DE CORAL H(00341)2024-07-08 08:33Financial Performance - For the year ended March 31, 2024, the Group reported revenue of HK8,024.0 million in 2023[19]. - Profit attributable to shareholders surged to HK110.4 million in the previous year[19]. - Basic earnings per share increased to HK0.19 in 2023[19]. - Total assets decreased by 9.2% to HK7,175.3 million[19]. - Net assets increased by 4.2% to HK2,792.1 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 HK330.5 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 HK1,323.5 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].