1. Performance of H1 in fiscal year 1. In the 2015 fiscal year, earnings for the first six months were about HK $952 million, up 6.6% over the same period last year. Of this total, income from Hong Kong was about HK $668 million, up 7.2% from the same period last year; income from mainland China was about HK $276 million, up 5% from the same period last year; other income was HK $7.91 million, up 12.8% from the same period last year; profit attributable to company owners was HK $81.26 million, down 8.5% from the same period last year Basic earnings per share were HK5.75 cents, down 9.2% from the same period last year.
2. Gross profit: the company's gross profit in the first half of the year was about HK $682 million, an increase of 10.8% over the same period last year. During the six-month period ended September 30, 2014 and 2015, the gross profit margin was about 68.9% and 71.6%, respectively. The increase in gross profit margin was mainly due to the economies of scale generated by centralized procurement and the central kitchen and the optimization of dishes on the menu during the period.
3. New stores: as of September 30, the company has opened 6 new stores, including 2 in Hong Kong, 1 in Macao and 3 in mainland China (1 Nanjing and 2 Shanghai). It is planned to open 5-6 in the second half of the year to meet the target for the whole year. The pace of opening stores will be maintained next year to reach the target of 80 stores in 2017.
4. various costs: the decline in the cost of food is due to the centralized procurement of the central kitchen; labor costs remain stable, currently accounting for 27.6% of income; rents remain at the level of 15%, 16%, despite the recent downward trend of rents in Hong Kong. However, for now, the level will remain at 15% this year, and rents may fall next year, and the rent ratio will decline. The increase in other charges was mainly due to an exchange loss of 6 million RMB against the Hong Kong dollar this year.
5. The situation in the second half of the year: the main focus is on opening new stores. At present, there is no plan to make a second brand. The company hopes to reflect certain economic benefits through the increase in the number of branches, dilution, depreciation, upfront costs and other expenses. From October to November, another branch in Hong Kong will be opened in Wong Tai Sin. Next week, Chui Wah in Central will reopen to introduce new dishes, which are intended to test the market with the afternoon tea model of the high-end Hotel, which is the price of the general public. If feasible, it may be extended to other branches.
6. contribution to the opening of new stores in the first half of the year: compared with the previous two fiscal years, although the company opened six new stores, it did not contribute more to revenue than before. The retail market in Hong Kong is relatively poor, while the market competition in the mainland is fierce. As a result, the speed of achieving breakeven has also slowed down.
7. The cost of opening a shop in Hong Kong and the mainland: HK $6-8 million in the mainland and HK $6 million in Hong Kong.
8. Same-store growth in Hong Kong and the mainland: Hong Kong is expected to be flat, while the mainland is negative units. The mainland is mainly due to fierce market competition, but also the situation of diversion in the same region.
9. Target distribution of 80 new stores in 2017: Hong Kong + Macao accounts for 1/3, and the mainland accounts for 2/3 (half East China, half South China).
10. Depreciation of Shanghai Central Factory and office buildings: HK $80 million for Central Factory and HK $90 million for office buildings, amortized for 30 years, depreciation of less than 6 million per year.
11. Rent: the domestic rent of the company is not high, many of which are invited by landlords, but good locations need to be located. There is a downward trend in rents in Hong Kong, which will have little impact on shops with renewed contracts, but will have an impact on newly leased shops. The company expects rents to remain stable in the second half of this year and a reduction in renting new stores in the next fiscal year.
12. Break even for new stores: from 6 months to 8 months, domestic stores take a long time.
13. Stores turn over: about 24 in Hong Kong and 4-6 in the mainland every day.
14. The company's positioning in the mainland: located in the cuisine from Hong Kong, or the food culture of Hong Kong.
15. The location of the company's mainland stores: 12 in Shanghai, 3 in Wuhan, 2 in Shenzhen, 1 in Guangzhou and 1 in Hangzhou. The main branch is in East China. At present, the slow progress of opening a store in South China is mainly because the team building is not yet mature and it takes some time to prepare.
16. South China Central Kitchen: at present, there are few branches in South China, and the rent or depreciation of setting up a central kitchen will impose a great burden on the company, so at this stage, the three branches are still supplied by themselves. so its purchasing cost is also higher than that in East China. In the future, when the team building is mature and the speed of opening stores increases every year, the company will consider the construction of the central kitchen.