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Financial Highlights

HK$'000

FY2017

FY2016

Change

Revenue

2,965,974

   2,773,289   

+6.9%

Restaurant operations

 

 

 

   "Fulum (富臨)" main brand

2,138,701

2,087,494

+2.5%

   "Sportful Garden (陶源)" main brand

383,398

349,860

+9.6%

   "Fulum Concept (富臨概念)" main line

373,583

273,078

+36.8%

Sale of food and other operating items

70,292

62,857

+11.8%

Profit attributable to owners of the Group

82,842

101,404

-18.3%

Basic Earnings Per Share (Cent)

6.37

7.80

-18.3%

 

 

 

 

 

 

HONG KONG, CHINA - Media OutReach - 27 June 2017 - The board of directors of Fulum Group Holdings Limited (HKSE: 1443, the "Group" or "Fulum") announced its annual results and its financial position. For the year ended 31 March 2017 ("FY2017"), revenue increased by 6.9% to HK$2,966.0 million, mainly due to the increased number of restaurants. Among which, revenue from "Fulum Concept (富臨概念)" has increased by 36.8% to HK$373.6 million. During the year, profit attributable to shareholders of the Company has decreased by 18.3% and amounted to HK$82.8 million. Basic earnings per share are 6.37 cents.

 

The Board recommends a final dividend of HK2.55 cents per ordinary share for the year ended 31 Mar 2017 (2016FY: HK3.12 cents per ordinary share).

 

During the year, the Group continued its proactive development of the restaurants under the "Fulum Concept (富臨概念)" main line, which comprised over one-half of the new restaurants established in Hong Kong are under the "Fulum Concept (富臨概念)" main line, including 4 restaurants of the brand "MeokBang Korean BBQ & Bar (炑八韓烤)" specialising in Korean barbecue, were opened in Tuen Mun, Tin Shui Wai and Wong Tai Sin, and 2 restaurants of the new brand "Co Co Kitchen (四季文昌)" were opened in Mongkok and Tsim Sha Tsui. These new restaurants are extremely helpful in responding to the limited availability of prime restaurant spaces and attracting more young customers. For the brands, "Fulum Palace (富臨皇宮)" and "Fulum (富臨)" under the "Fulum (富臨)" main brand, restaurants were launched under these brands in Shatin and in Tseung Kwan O respectively, and 2 restaurants under the "Sportful Garden (陶源)" main brand were opened at Olympian City in Tai Kok Tsui, and E Plaza in Kwun Tong. It is expected that the opening of the restaurants can strengthen the core business of the Group.


Business Review

During the financial year under review, local catering needs remained stable. The Group continued to adopt proactive and aggressive expansion strategy to establish new restaurants and to explore diversifying catering brands to gratify local catering needs and enhance dining experience. During the year, the Group has opened 2 restaurants under the "Fulum (富臨)" main brand, 2 restaurants under "Sportful Garden (陶源)" main brand and 6 restaurants under the "Fulum Concept (富臨概念)" main line in Hong Kong. As of 31 March 2017, the Group operated a total of 82 restaurants in Hong Kong, among which, 43 restaurants were under "Fulum (富臨)" main brand, 12 restaurants were under the "Sportful Garden (陶源)" main brand and 27 restaurants were under the "Fulum Concept (富臨概念)" main line. The Group also operated 3 restaurants in the PRC.

 

"Fulum (富臨)" main brand and "Sportful Garden(陶源)" main brand are the important cornerstone of the Group. Currently, restaurants under "Fulum (富臨)" main brand, including "Royal One Pleasant Palace (皇室①號囍臨門)", "Fulum Palace (富臨皇宮)", "Fulum Restaurant (富臨酒家)", "Fulum Fisherman's Wharf Restaurant (富臨漁港)", "Pleasant Palace (囍臨門酒家)", "Fulum (富臨粵之味)", "Banquet Palace (金皇廷囍宴)" and "Fulum (富臨)", provide Cantonese cuisine for mass market customers, while restaurants under "Sportful Garden(陶源)" main brand focus on mid-high end Cantonese cuisine targeting mid-to-high end customers.

 

Meanwhile, the Group proactively launched different restaurants under the "Fulum Concept (富臨概念)" main line in recent years, including "MeokBang Korean BBQ & Bar (炑八韓烤)" and "Mount HallaSan BBQ (漢拏山烤肉)" which mainly serve Korean cuisine, and "Treasure City Hot Pot Seafood Restaurant (富城火鍋海鮮酒家)", "Winter Steam Pot Restaurant (正冬火鍋)", "The Orient Barbecue Cuisine (正東燒豬料理)", "Winter Yutango Restaurant (正冬魚塘公)" and "Steamy Seafood Cuisine (海里鮮蒸氣石鍋)" which mainly serve hotpot cuisine. The Group introduced a new brand "Co Co Kitchen (四季文昌)" mainly serving "coconut chicken hotpot in Hainan style" in financial year 2016/17. Subsequent to the year end, the Group opened two "Tou Hotpot (饕鍋物)" restaurants in Causeway Bay and Tseung Kwan O respectively under a new Taiwanese hotpot brand, which are popular among the diners.

 

For the PRC market, the Group currently operates three "Fulum Palace (富臨皇宮)" restaurants in Guangzhou, Zhuhai and Fuzhou, respectively. All of them which are located in the residential areas with dense population mainly provide mass catering services so as to meet the neighbourhoods' demand for Chinese cuisine and wedding venues within the regions. Believing in the enormous consumption power in the PRC market, the Group will open new restaurants in due course in the future to provide Mainland China residents with quality catering experience and services.

 

The following table sets forth the number of restaurant by business for the financial years indicated:

Number of restaurants (as at 31 Mar)   

FY2016

   FY2015

   "Fulum (富臨)" main brand

46

45

   "Sportful Garden (陶源)" main brand

12

11

   "Fulum Concept (富臨概念)" main line

27

21

Total

85

77

The Group has introduced a customer loyalty membership card programme in June 2015 in the restaurants of "Sportful Garden (陶源)" in Hong Kong for the Group's loyal customers to accumulate credit points to redeem for value-added benefits and gifts. Currently, there are more than 30,000 members under such membership programme. The Group will provide various membership benefits and discounts in order to increase the number of long-term customers.


Prospects and outlook

The Group is confident in the long-term prospects of the catering market in Hong Kong and the PRC and will continue to adopt proactive and aggressive strategy. Meanwhile, the Group is proactively looking for the opportunity of mergers and acquisitions and continues to identify catering brands, in particular Asian catering brands as targets for mergers and acquisitions, and thus makes Fulum Group a diversified catering kingdom.

 

For the PRC market, the mass catering market continued its rapid development and the Group is optimistic towards the long-term development of that market. The Group will increase the number of restaurants in Mainland China prudently to expand its customer base and market share.

About Fulum Group Holdings Limited

Fulum Group originated its business in 1992. The first restaurant "Fulum Hotpot Restaurant" was run in Tai Kok Tsui. It has been developed to a group of approximately 20 brands and 85 restaurants serving a variety of cuisines, along with approximately 4,920 employees under our Group. Fulum Group was listed successfully in the Main Board of the Stock Exchange of Hong Kong Limited in November 2014, with the Stock Code: 1443. Our business developments have turned into another new page in the milestone.

 

We have a network of restaurants in different districts of Hong Kong and provide different types of cuisines under various brands. We are planning to expand our Chinese cuisine business in China with the aim of providing high quality food to customers in the Greater China region.

Source http://www.media-outreach.com/release.php/View/3605#Contact