Fulum FY2023 Annual Results Out of the Red

Source: Media Outreach

Recorded a net profit of approximately HK$21.1 million< >Proposed a final dividend of HK$0.3 cents per share

Highlights:< >

• A turnaround from net loss of approximately HK$49.2 million to net profit of approximately HK$21.1 million
• Gross profit margin increased by 4.7 percentage points to 70.1%
• As at 31 March 2023, the Group operates a total of 102 restaurants in Hong Kong, increased 11 restaurants YoY, of which “Concept Line” increased 13 restaurants compared with the corresponding period last year
• Continued to adopt a branding strategy of full-time catering by increasing the number of brands and categories under “Concept Line”, which is one of the growth momentums of the Group, to provide customers with diversified choices
• Basic earning per share was HK$1.63 cents, compared with Basic loss per share of HK$3.78 cents in the corresponding period last year. The Board recommended the payment of final dividend of HK$0.3 cents per share.

< >Financial Highlights< >

< >HONG KONG SAR – Media OutReach – 28 June 2023 – The board of directors of Fulum Group Holdings Limited (HKEx stock code: 1443, the “Group” or “Fulum”) announced its annual results for the year ended 31 March 2023 (“Financial Year under Review”). During the Financial Year under Review, the Group recorded net profit of approximately HK$21.1 million, compared with a net loss of approximately HK$49.2 million in the corresponding period last year.

During the Financial Year under Review, the Group recorded revenue of approximately HK$1,641.5 million, representing an increase of 10.4% as compared with approximately HK$1,486.5 million for the year ended 31 March 2022. During the year, gross profit margin increased by 4.7 percentage points to 70.1%; basic earning per share was HK$1.63 cents. The Board recommended the payment of final dividend of HK$0.3 cents per share.

Business Review

During the Financial Year under Review, the Hong Kong government gradually withdrew pandemic control policies. The limit for number of customer at each table in restaurants has been removed, together with the limit for the number of people in social gatherings and the limit for the distance between each table. After the full resumption of normal travel, the number of overseas and Mainland Chinese visitors to Hong Kong have been gradually increasing, resulting in a significant improvement in the Group’s revenue.

In light of the revival of the catering industry and the changing consumption and catering patterns in the post-pandemic era, the Group maintained the branding strategy of full-time catering and increased the number of brands and categories under its “Concept Line (概念線)”, as well as extending its business to a full day operation with diverse options, so that customers can cater in the Group’s restaurants at any time.

During the Financial Year under Review, the Group has been expanding its catering brands in residential areas at a moderate and prudent pace in order to meet the diverse local catering needs and enhance customers’ dining experience at different hours of the day. As at 31 March 2023, the Group operated a total of 102 restaurants in Hong Kong, including 15 restaurants under the “Fulum (富臨)” main brand, 7 restaurants under the “Sportful Garden (陶源)” main brand, 80 restaurants under the “Concept Line (概念線)” main line as well as 8 supermarkets, and 3 restaurants in the Mainland China.

During the Financial Year under Review, the Group offered customers with a traditional Chinese dining experience under the “Fulum (富臨)” main brand and “Sportful Garden (陶源)” main brand. The “Fulum (富臨)” main brand offers a wide variety of Cantonese delicacies to mass market customers. Restaurants under the “Sportful Garden (陶源)” main brand focus on mid-to-high-end Cantonese cuisine and attract customers who put a high value on quality with luxurious decorations. In the post-pandemic era, there is a change in people’s dining habits, as more people choose to cook at home or purchase takeaway. The Group has adjusted its business strategy in a timely manner and actively developed an online shopping platform under Fulum (富臨) to cater to the tastes and needs of the market by regularly launching selected set meals for self-pickup delivery, BBQ assortment and dishes for self-pickup delivery to attract customers both online and offline.

On the other hand, the Group continues to expand its “Concept Line (概念線)” series of restaurants to create a full-time catering ecosphere to cater to the diverse local dining needs and enhance the dining experience of customers at different hours of the day. The “Concept Line (概念線)” series of restaurants provide consumers with Korean barbecue restaurants combining authentic Korean izakaya food and traditional culture, classy and casual cafes, authentic Thai food, food courts and so on. During the Financial Year under Review, we have started a number of fine dining restaurants with different price ranges and different cuisines to cater to the needs of our customers.

The following table sets forth the number of restaurants by business for the Reporting Period:< >

< >The pandemic has changed the consumption and catering patterns in Hong Kong, leading to a structural change in the catering market. Therefore, the Group continued to operate supermarkets in residential areas and provide online shopping services so that customers can buy fresh ingredients anytime and anywhere. Meanwhile, the Group has opened food courts in different districts to provide various different catering and takeaway options. In the future, the Group will continue to open more supermarkets and food courts in residential areas to cater for the customers’ needs.

Prospects and Outlook

The Group believes that our branding strategy of full-time dining and adjusting the menu portfolio of each brand in response to market conditions will provide us with a sustainable and stable growth momentum. The Group believes that the relaxation of entry restrictions will boost cross-border economic activities and further revive the local catering market. In order to meet the capricious market environment and customer consumption patterns, we continue to expand our “Concept Line (概念線)” main line, expand our casual dining portfolio, and meet the needs of the masses through a small-store group management approach. We will review our operation strategy as appropriate, increase the sales channels of our restaurants and strengthen our digital marketing to build the Group into a diversified catering kingdom and strengthen our market position by increasing our market share and enhancing our competitiveness. In the future, the Group will continue to explore quality dishes from around the world to meet customer demand and broaden its customer base.

Mr. Samuel Yeung, CEO of the Group, said, “With the return of overseas tourists, the local catering industry has entered a period of recovery. In addition, our team constantly adjust the business strategies and the construction of different catering portfolios due to the market environment, so that the Group has successfully recorded good results and achieved a profit turnaround during the Financial Year under Review. Looking ahead, we will closely monitor market changes and explore market opportunities in a cautiously optimistic manner to create better results for the Group and bring satisfactory returns to the shareholders.”

Hashtag: #Fulum

The issuer is solely responsible for the content of this announcement.

– Published and distributed with permission of Media-Outreach.com.