HONG KONG--(BUSINESS WIRE)--Fulum Group Holdings Limited

The board of directors of Fulum Group Holdings Limited (HKEx stock code: 1443, the “Group” or “Fulum”) announced its annual results and its financial position. For the year ended 31 March 2016, revenue increased by 9.7% to HK$2,773.3 million, mainly due to the increased number of restaurants. Among which, revenue from “Fulum Concept (富臨概念)” has increased by 58.8% to HK$273.1 million. During the year, profit attributable to shareholders of the Company has decreased by 36.7% and amounted to HK$101.4 million. The decrease was mainly due to: (i) due to the economic downturn in China and Hong Kong, consumer sentiment among citizens and the number of tourists dropped significantly; and (ii) high magnitude of costs including rent, labour, food, ingredients and utilities. Basic earnings per share are 7.80 cents.

The Board recommends a final dividend of HK3.12 cents per ordinary share for the year ended 31 Mar 2016 (2015: HK5.00 cents per ordinary share).

During the year, the Group continued to implement aggressive expansion strategy by establishing more restaurants and diversifying the themes of restaurants. The Group continued its proactive development of the restaurants under the “Fulum Concept (富臨概念)” line of business, including “MeokBang Korean BBQ & Bar (炑八韓烤)” specialising in Korean barbecue, “Mount Hallasan BBQ (漢拏山烤肉)” specialising in Korea Jeju cuisine and “Winter Yutango Restaurant (正冬魚塘公)” specialising in grilled fish which are in responding to the limited availability of prime restaurant spaces and the attracting of more young customers. For the main brand, “Royal One (皇室1號)” under the “Fulum (富臨)” main brand specialising in wedding banquets was launched and the flagship restaurant under the “Sportful Garden (陶源)” main brand was opened inside iSquare, a prime location in Tsim Sha Tsui. We expect the opening of the restaurants can strengthen the core business of the Group.

Business Review

Despite the current stagnant retail market in Hong Kong, as an enterprise rooted in Hong Kong, the Group is still full of confidence towards the long-term prospects of the catering market.

During the period, the Group had opened a total of 15 restaurants in Hong Kong, among which, 4 restaurants were under the “Fulum (富臨)” main brand, 1 restaurant was under the “Sportful Garden (陶源)” main brand and 10 restaurants were under the “Fulum Concept (富臨概念)” main line. As of 31 March 2016, the Group operated a total of 74 restaurants in Hong Kong, among which, 42 restaurants were under the “Fulum” (富臨) main brand, 11 restaurants were under the “Sportful Garden (陶源)” main brand and 21 restaurants were under the “Fulum Concept (富臨概念)” main line.

For Mainland China market, the Group opened 2 new “Fulum Palace (富臨皇宮)” restaurants in Zhuhai and Fuzhou respectively during the year. Together with the “Fulum Palace (富臨皇宮)” restaurant opened in Guangzhou last year, the Group currently has a total of 3 restaurants in mainland China. All of them which are located in the residential areas with dense population mainly provide mass catering services so as to meet the neighbourhoods’ strong demand for Chinese cuisine and wedding venues within the regions.

Furthermore, the Group introduced a customer loyalty membership card programme in June 2015 as pilot testing in the restaurants of “Sportful Garden (陶源)” main brand in Hong Kong for the Group’s loyal customers to accumulate credit points and provide value-added benefits and gifts in order to encourage their frequent visits. Currently, there are approximately 19,700 members under such membership programme. The Group will provide various membership benefits and discounts in the future.

Prospects and outlook

Looking ahead, despite the fact that Hong Kong’s economy is expected to be uncertain under the impact of unstable external factors, the Group is confident in the long-term prospects of the catering market and will continue to adopt aggressive strategy. The Group plans to open 4 new restaurants under the “Fulum (富臨)” main brand, 1 new restaurant under the “Sportful Garden (陶源)” main brand and 7 featured restaurants under the “Fulum Concept (富臨概念)” main line during the year ending 31 March 2017. “MeokBang Korean BBQ & Bar (炑八韓烤)” will be one of the featured restaurants under the main expansion plan of the Group. The decrease in commercial properties’ occupancy rate in Hong Kong provides the Group with more alternatives to identify suitable sites and the Group will be able to open new restaurants in favourable locations at lower prices.

Apart from the self-owned brands of the Group, the Group also identifies suitable overseas catering brands and introduces well-known foreign restaurant brands into Hong Kong by way of franchise operation. We are currently negotiating with a famous Asian cuisine brand. Meanwhile, the Group is proactively looking for the opportunity of mergers and acquisitions and is identifying suitable targets for mergers and acquisitions with reference to the local catering trends and the preference of the public.

For Mainland China market, the mass catering market continued its rapid development and the Group is rather optimistic towards the long-term development of the market. The Group’s future growth strategy in China will be based in the Guangdong Province and gradually developed in each of the major cities in China. The Group plans to open two more Fulum Palace restaurants in China in order to increase the number of restaurants in China prudently during the year ending 31 March 2017. Currently, the Group is proactively considering the locations so as to raise public’s awareness of the brand “Fulum” and expanding its customer base and market share nationwide.

Mr. YEUNG Wai, chairman and chief executive officer and executive director of the Group said, “We will continue to adhere to the spirit of ‘The Rationale of Three Excellence — Excellent Environment, Excellent Supply, Excellent Service’ in order to provide the public with better dining experience. Together with proactive development, our management will make Fulum a diversified catering kingdom.”

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 20 brands and 80 restaurants serving a variety of cuisines, along with over 5000 fulltime 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.

Contacts

Stimulus Investor Relations
Hill Ho, +852-3159-2944
hill.ho@stimulus-ir.com
or
Jessica Choi, +852-3159-2900
jessica.choi@stimulus-ir.com