Fulum FY 2017 revenue increased 6.9%; Gross Profit Margin rose to 71.6%
Marketwired
HONG KONG, CHINA--(Marketwired - Jun 26, 2017) - Fulum Group Holdings Limited (HKSE: 1443)
Financial Highlights
HK$'000
FY2017
FY2016
Change
Revenue
2,965,974
2,773,289
+6.9%
Restaurant operations
"Fulum" main brand
2,138,701
2,087,494
+2.5%
"Sportful Garden" main brand
383,398
349,860
+9.6%
"Fulum Concept" 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%
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" 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" main line, which comprised over one-half of the new restaurants established in Hong Kong are under the "Fulum Concept" main line, including 4 restaurants of the brand "MeokBang Korean BBQ & Bar" 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" 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" and "Fulum" under the "Fulum" main brand, restaurants were launched under these brands in Shatin and in Tseung Kwan O respectively, and 2 restaurants under the "Sportful Garden" 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" main brand, 2 restaurants under "Sportful Garden" main brand and 6 restaurants under the "Fulum Concept" 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" main brand, 12 restaurants were under the "Sportful Garden" main brand and 27 restaurants were under the "Fulum Concept" main line. The Group also operated 3 restaurants in the PRC.
"Fulum" main brand and "Sportful Garden" main brand are the important cornerstones of the Group. Currently, restaurants under "Fulum" main brand, including "Royal One Pleasant Palace ", "Fulum Palace", "Fulum Restaurant", "Fulum Fisherman's Wharf Restaurant", "Pleasant Palace", "Fulum", "Banquet Palace " and "Fulum", provide Cantonese cuisine for mass market customers, while restaurants under "Sportful Garden" 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" main line in recent years, including "MeokBang Korean BBQ & Bar" and "Mount HallaSan BBQ" which mainly serve Korean cuisine, and "Treasure City Hot Pot Seafood Restaurant", "Winter Steam Pot Restaurant", "The Orient Barbecue Cuisine", "Winter Yutango Restaurant" and "Steamy Seafood Cuisine" which mainly serve hotpot cuisine. The Group introduced a new brand "Co Co Kitchen" mainly serving "coconut chicken hotpot in Hainan style" in financial year 2016/17. Subsequent to the year end, the Group opened two "Tou Hotpot" 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" 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 of 31 Mar)
FY2016
FY2015
"Fulum" main brand
46
45
"Sportful Garden" main brand
12
11
"Fulum Concept" 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" 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.
