Fulum FY 2017 revenue increased 6.9%; Gross Profit Margin rose to 71.6% - Seite 2

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.