Monday, November 30, 2020
 
Columnist
Martin Hennecke
 
TSUI WAH HLDG
HKEx Stock Code : 01314 
 
Corporate Profile
The Group owns and operates all of its 26 restaurants under its ˇĄˇĄTsui Wah (»AµŘ)'' brand, including 21 restaurants in Hong Kong, four restaurants in China and one restaurant in Macau.

Business Review - For the year ended March 31, 2013

In the year ended 31 March 2013, the Group opened 10 new restaurants, as compared to 3 in the year ended 31 March 2012. The opening of new restaurants in Hong Kong and the PRC was in line with the Group's development blueprint and was not significantly affected by the economic slowdown. The new restaurants in Hong Kong include, the Hong Kong International Airport Terminal shop, Hung To Road shop in Ngau Tau Kok, Shatin Plaza shop, Yau Ma Tei shop and Tsim Sha Tsui East shop. Whilst in the PRC, the Group opened 4 new restaurants in Shanghai Xuhui district, Putuo district and Yangpu district and 1 in Wuhan. The satisfactory performance of the Group's new restaurants was attributed to its strategic restaurant development planning and site selection.

The Group successfully established a new business line, the delivery service ˇ§Tsui Wah Deliveryˇ¨ (§Ö»A°e) which covers the whole of Kowloon district, enabling its customers to enjoy scrumptious food provided by Tsui Wah with ease. Within a short period of time, this new delivery service was very well received by its customers. This service represents a long term profit and growth potential for ˇ§Tsui Wahˇ¨.

Moreover, cost management was achieved for the year ended 31 March 2013 as the Group effectively and efficiently controlled and strengthened the procurement and supply chain management. In addition, by reducing wastage during food preparation, the gross profit margin of the Group has remained stable without sacrificing the quality and safety of its food. However, the Group's net profit margin (profit for the year as a percentage of revenue) recorded a decrease from approximately 14.5% for the year ended 31 March 2012 to approximately 12.1% for the year ended 31 March 2013, which was mainly owing to the initial start up labour cost and property rental expenses from new restaurants during the year under review.

Business Outlook - For the year ended March 31, 2013

For the PRC market, the Group is expected to be benefited from i) the continuing urbanisation in the PRC; ii) increase in disposable income by the country's burgeoning middle class; and iii) increase in awareness and needs for quality restaurant. The Group will continue to explore any expansion possibility.

In addition, while focusing on food safety, the Group will also strengthen its operational system by retaining experienced staff and encourage creative product development. These improvements, along with enhanced marketing and brand recognition, will secure the Group's ability in generating revenue and profit.

In view of the above, the Board believes that ˇ§Tsui Wahˇ¨ has the resources, vision and reputation to capitalise any future opportunity in the view of continuing expansion in the enormous PRC market and reap attractive returns for the shareholders.

Source: Tsui Wah Holdings (01314) Annual Results Announcement
Chairman LEE Yuen Hong Issued Capital (shares) 1,383M
Par Value HKD 0.01 Market Capitalisation (HKD) 5,782M
 
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