Corporate Governance - The board acknowledges the responsibility for publishing clear and accurate annual and interim reports as required by listing rules[1] - The independent auditor for the year is Forvis Mazars LLP, with fees paid or payable listed in thousands[3] - The nomination committee held one meeting during the year, with all members present[10] - The remuneration committee held three meetings during the year, with all members present[11] - The audit committee held four meetings during the year, with all members present[14] - All directors participated in continuous professional development to enhance their knowledge and skills[15] - The board diversity policy is regularly reviewed to ensure its ongoing effectiveness[7] - The company emphasizes the importance of good corporate governance elements in its management structure and internal controls[7] - The audit committee reviews the group's financial and accounting policies and practices[20] - The board has reviewed the company's corporate governance policies and practices and made relevant recommendations during the year[92] - The board is responsible for ensuring the company maintains and implements comprehensive corporate governance practices[92] - The board has adopted a diversity policy to ensure a range of perspectives in decision-making, considering factors such as knowledge, gender, age, and professional experience[132] - The board's diversity policy encompasses the composition of the board and the assessment of the independence of independent non-executive directors[198] - The company has confirmed the independence of all non-executive directors, ensuring no circumstances affect their independent judgment[173] - The company has adhered to all mandatory disclosure requirements and best practices outlined in the corporate governance code for the year[195] - The company has not yet established an internal audit function as per the corporate governance code, but is reviewing the need for it annually[176] Financial Performance - The group's total revenue decreased from approximately 26.4 million SGD in the previous year to about 25.2 million SGD, a decline of approximately 4.5%[75] - The group's gross profit for the year was approximately 15.6 million SGD, down about 3.1% from approximately 16.1 million SGD in the previous year, with a stable gross margin maintained at around 61-63%[78][77] - Employee costs increased from approximately 8.6 million SGD in the previous year to about 9.8 million SGD, an increase of approximately 14% due to salary adjustments and incentives to attract and retain talent[54] - Administrative expenses rose from approximately 7.6 million SGD to about 9.2 million SGD, representing an increase of approximately 21%[57] - The group recorded interest-bearing bank borrowings of about 2.0 million SGD as of March 31, 2024, with an interest rate increase from 3.4% to 4.8%[58] - The group's debt-to-equity ratio as of March 31, 2024, is approximately 22%, compared to 18% on March 31, 2023[95] - As of March 31, 2024, the group's cash and cash equivalents were approximately SGD 22.1 million, a decrease of about SGD 1.4 million from SGD 23.5 million on March 31, 2023[164] - The total current assets and current liabilities as of March 31, 2024, were approximately SGD 25.8 million and SGD 5.4 million, respectively, resulting in a current ratio of approximately 4.8 times, down from 5.7 times on March 31, 2023[164] Business Operations and Expansion - The company has closed 1 Shilin specialty store in Singapore and Malaysia, while opening 4 new stores in Singapore and 2 in Malaysia[24] - The company acquired a central kitchen in Singapore, expected to be operational by Q2 2024/2025, aimed at increasing product supply and improving operational efficiency[25] - The company has expanded its Eat Pizza brand, opening 2 new stores this year and planning to open 3 more in Singapore[40] - Revenue from Singapore's Shilin brand self-operated stores decreased by approximately SGD 0.6 million due to increased dining options post-pandemic and competition[51] - Franchise fees decreased by approximately SGD 0.1 million, mainly due to reduced fees from new store openings in Indonesia and the USA[52] - The company is actively seeking new locations for Shilin specialty stores and dining outlets in Singapore and Malaysia[47] - The company has strengthened its team at the Singapore headquarters to support digital development and business expansion[26] - The group opened 6 new specialty stores in Singapore and West Malaysia during the year and is actively seeking better locations for future expansions[98] - The group has signed a master franchise agreement for the Korean pizza brand Eat Pizza in Singapore and Malaysia, with two self-operated stores opened in Singapore, increasing to four by the report date[72] Marketing and Customer Engagement - The company continues to collaborate with influencers for marketing and has created official accounts on TikTok and Xiaohongshu to attract more consumers[41] - The company aims to expand its menu offerings in specialty stores and enhance brand visibility through social media marketing[43] - The company emphasizes high-quality customer service as a key factor in building customer loyalty[124] - The company has a vision to bring authentic street food to customers worldwide, actively participating in exhibitions to attract franchisees[123] - The group has extended the operating hours of two stores and introduced all-day dining services on weekends, along with group ordering and promotional menu offerings[66] Digital Transformation and Efficiency - The group is undergoing a digital transformation with the establishment of an ERP system aimed at streamlining processes and improving operational efficiency, expected to be completed by Q2 2024/2025[65] - Future outlook includes continuing digitalization and automation to improve operational efficiency, seeking suitable locations to expand the store network, enhancing the menu offered to consumers, and exploring additional revenue streams to create shareholder value[167] Employee Development and Training - The company encourages directors to attend training courses, with costs covered by the company[15] - The company has provided comprehensive training programs for employees, focusing on operational safety and customer service, to improve frontline service quality[190] - The company has a strong focus on maintaining service quality and consistency across its outlets through employee training[126] Compliance and Risk Management - The company is committed to maintaining compliance with anti-corruption and fraud regulations, providing regular training to employees[138] - The company has implemented a whistleblowing policy to maintain high standards of transparency and accountability, allowing employees to report misconduct anonymously[136] - The company will take necessary measures to ensure foreign currency risks are manageable as needed[100] - The company does not currently use derivative financial instruments to hedge foreign currency risks and will continue to monitor currency fluctuation risks closely[100] - The company has not identified any significant fraud or misconduct that would materially impact its financial statements for the year[184] Future Plans and Investments - The company has allocated 47.7% of its net proceeds, amounting to 6,200 thousand SGD, for general working capital[189] - The company plans to open new self-operated stores in Singapore and West Malaysia, with allocations of 1,280 thousand SGD (9.8%) and 1,228 thousand SGD (9.4%) respectively, expected to be completed by March 2025[189] - The company is enhancing its workforce with an allocation of 1,060 thousand SGD (8.2%), with a remaining balance of 46 thousand SGD expected to be utilized by March 2025[189] - The company is investing 1,060 thousand SGD (8.2%) in upgrading IT infrastructure and data management systems, with a remaining balance of 829 thousand SGD expected to be utilized by March 2027[189] - The group plans to undertake a brand revitalization initiative aimed at attracting a new generation of customers, expected to be completed by March 2026[165] - The group has no significant investment or capital asset plans aside from the use of proceeds from the share sale as of March 31, 2023, and March 31, 2024[105] - The group has no plans for significant investments or capital assets beyond the use of proceeds from the share sale[105]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) A concise overview of the company's key financial performance indicators [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the fiscal year ended March 31, 2024, Fast Food Empire Holdings experienced slight declines in revenue and gross profit, while profit attributable to equity holders plummeted by 90.2% to 0.18 million SGD, resulting in near-zero earnings per share Financial Performance Summary | Metric | FY2024 (Ended March 31) | FY2023 (Ended March 31) | | :--- | :--- | :--- | | Revenue | 25.16 million SGD | 26.405 million SGD | | Gross Profit | 15.603 million SGD | 16.116 million SGD | | Profit Attributable to Equity Holders | 0.18 million SGD | 1.843 million SGD | | Basic and Diluted Earnings Per Share | 0.0 SGD cents | 0.2 SGD cents | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) A comprehensive overview of the company's financial position, performance, and cash flows for the reporting period [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In FY2024, total revenue decreased by 4.7% to 25.16 million SGD, with administrative expenses surging by 24.3% to 9.51 million SGD, significantly impacting pre-tax profit which plummeted from 2.39 million SGD to 0.23 million SGD, leading to a substantial net profit reduction Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item | 2024 (thousand SGD) | 2023 (thousand SGD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 25,160 | 26,405 | -4.7% | | Gross Profit | 15,603 | 16,116 | -3.2% | | Administrative Expenses | (9,506) | (7,646) | +24.3% | | Profit Before Income Tax | 226 | 2,388 | -90.5% | | Profit for the Year | 180 | 1,843 | -90.2% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, total assets slightly increased to 33.92 million SGD, driven by property, plant, and equipment, while total liabilities rose to 9.58 million SGD, leading to a marginal decrease in total equity and a 1.4 million SGD reduction in cash and cash equivalents to 22.13 million SGD Consolidated Statement of Financial Position | Item | March 31, 2024 (thousand SGD) | March 31, 2023 (thousand SGD) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Property, Plant and Equipment | 8,000 | 6,153 | +30.0% | | Cash and Cash Equivalents | 22,134 | 23,493 | -5.8% | | **Total Assets** | **33,921** | **32,904** | **+3.1%** | | **Liabilities** | | | | | Borrowings | 1,950 | 2,080 | -6.3% | | Lease Liabilities | 3,496 | 2,415 | +44.8% | | **Total Liabilities** | **9,578** | **8,410** | **+13.9%** | | **Equity** | **24,343** | **24,494** | **-0.6%** | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed explanations and breakdowns of the figures presented in the consolidated financial statements [Segment Information](index=9&type=section&id=3%20Segment%20Information) The Group manages all operations as a single segment, with Singapore and Malaysia as core markets contributing over 85% of revenue, both experiencing declines this fiscal year, while a single Indonesian customer accounts for 11.7% of total revenue, posing customer concentration risk Revenue by Geographical Market | Geographical Market | 2024 Revenue (thousand SGD) | 2023 Revenue (thousand SGD) | YoY Change | | :--- | :--- | :--- | :--- | | Singapore | 10,757 | 11,106 | -3.1% | | Malaysia | 10,793 | 11,587 | -6.9% | | Indonesia | 2,954 | 2,901 | +1.8% | | United States | 518 | 748 | -30.7% | | Others | 138 | 63 | +119.0% | | **Total** | **25,160** | **26,405** | **-4.7%** | - A single external customer from Indonesia contributed **2.954 million SGD** in revenue, representing **11.7%** of total revenue[28](index=28&type=chunk) [Revenue Analysis](index=10&type=section&id=4%20Revenue) Total revenue decreased by 4.7% this fiscal year, with all major income streams declining, most notably an 0.88 million SGD reduction in sales to franchisees/licensees, alongside slight decreases in retail outlet sales and high-margin franchise and royalty fees Revenue by Source | Revenue Source | 2024 (thousand SGD) | 2023 (thousand SGD) | YoY Change | | :--- | :--- | :--- | :--- | | Retail Outlet Sales | 16,626 | 16,718 | -0.5% | | Sales to Franchisees/Licensees | 6,960 | 7,837 | -11.2% | | Franchise Fees | 521 | 636 | -18.1% | | Royalty Fees | 841 | 937 | -10.2% | | Advertising and Promotion Fees | 212 | 277 | -23.5% | | **Total** | **25,160** | **26,405** | **-4.7%** | [Dividends](index=14&type=section&id=9%20Dividends) Unlike the previous fiscal year's special, interim, and final dividends, the Board decided not to declare any dividends for the fiscal year ended March 31, 2024, reflecting reduced profitability and a potential shift towards cash retention for business development - The Board did not declare any dividends for the fiscal year ended March 31, 2024[40](index=40&type=chunk) - In contrast, for FY2023, the company declared special, interim, and final dividends totaling approximately **6.181 million SGD**[40](index=40&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) Management's perspective on the company's financial performance, operational highlights, and future outlook [Business Review and Outlook](index=22&type=section&id=Business%20Review%20and%20Outlook) FY2024 marked the start of the Group's transformation, focusing on digitalization and expansion, including ERP system implementation, introducing 'Eat Pizza,' and acquiring a central kitchen; despite rising labor costs, inflation, and increased competition impacting Shilin brand revenue, management remains optimistic, planning continued store network expansion, brand rebranding, and new revenue stream exploration for long-term value growth - The Group initiated digital transformation by establishing an ERP system to streamline processes and enhance operational efficiency[67](index=67&type=chunk) - Secured master franchise rights for Korean pizza brand 'Eat Pizza' in Singapore and Malaysia, with successful store openings and positive market reception[68](index=68&type=chunk) - Acquired a central kitchen in Singapore to expand menu offerings, extend catering services, and optimize store operations[68](index=68&type=chunk) - Key challenges include rising store labor costs, manpower shortages, and increased food ingredient and rental costs due to inflation[70](index=70&type=chunk) - Future outlook includes continued digitalization, expansion of the retail outlet network, menu improvements, and exploration of additional revenue streams such as catering/events[68](index=68&type=chunk)[103](index=103&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) Total revenue decreased by 4.5% to 25.2 million SGD this fiscal year, primarily due to reduced sales from Singapore Shilin brand outlets amid increased competition and lower sales/fee income from fewer Malaysian franchisees; while gross margin remained stable at 61-63%, administrative expenses surged 21% due to increased staffing and new brand setup costs, significantly eroding profits - Total revenue decreased by **4.5%**, primarily due to a **0.6 million SGD** decline in Singapore Shilin brand outlet sales and a **0.5 million SGD** reduction in sales to Malaysian franchisees[77](index=77&type=chunk)[78](index=78&type=chunk) - Gross margin remained stable at approximately **61–63%**, indicating relatively effective cost control at the sales level[82](index=82&type=chunk) - Staff costs increased by **1.2 million SGD**, and administrative expenses rose by **21%**, mainly due to increased headcount for new brand and central kitchen expansion, along with annual salary adjustments[84](index=84&type=chunk)[86](index=86&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a sound financial position despite tightening liquidity, with cash and cash equivalents decreasing by 1.4 million SGD to 22.1 million SGD; the current ratio declined from 5.7x to 4.8x, remaining healthy, while the debt-to-equity ratio (interest-bearing and lease liabilities/equity) increased from 18% to 22% due to higher lease liabilities Key Liquidity and Capital Metrics | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 22.1 million SGD | 23.5 million SGD | | Current Ratio | 4.8 times | 5.7 times | | Debt-to-Equity Ratio | 22% | 18% | [Use of Proceeds from Share Offer](index=28&type=section&id=Use%20of%20Proceeds%20from%20Share%20Offer) As of March 31, 2024, approximately 2.48 million SGD of the 13 million SGD net IPO proceeds remain unutilized; due to pandemic-induced expansion delays, the Board extended the fund utilization timeline, with remaining funds allocated for store expansion in Singapore and Malaysia, human resource enhancement, and IT infrastructure upgrades, phased between 2025 and 2027 - As of March 31, 2024, **2.476 million SGD** of the net proceeds from the share offer remain unutilized[91](index=91&type=chunk) - Due to delays in expansion plans, the Board decided to extend the expected timeline for utilizing the proceeds to align with future 2-3 year business strategies[91](index=91&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Information) Information regarding the company's governance practices, dividend policy, and audit review processes [Dividend Policy](index=31&type=section&id=Dividend%20Policy) This fiscal year, the company adopted a conservative dividend policy, with the Board neither declaring nor recommending any final dividends, a stark contrast to the previous year's multiple dividend payouts, indicating a current preference for cash retention for reinvestment and operational challenges - The Board did not declare any dividends and does not recommend any final dividends for the current fiscal year[109](index=109&type=chunk) [Review of Annual Results](index=32&type=section&id=Review%20of%20Annual%20Results) This annual results announcement has been reviewed by the company's Audit Committee, and independent auditor Forvis Mazars LLP confirmed that the financial statement figures in the announcement align with the Group's draft consolidated financial statements, ensuring accuracy of disclosed information - This annual results announcement has been reviewed by the Audit Committee[116](index=116&type=chunk) - Independent auditor Forvis Mazars LLP has confirmed that the financial statement figures contained in this announcement are consistent with the amounts in the Group's draft consolidated financial statements for the current year[117](index=117&type=chunk)

Revenue Performance - Total revenue decreased from approximately 13,845 thousand SGD in the corresponding period to about 12,372 thousand SGD, representing a decline of approximately 10.6%[9] - Retail and delivery sales in Singapore decreased by approximately 788 thousand SGD or 13% during the review period, attributed to the normalization of conditions post-COVID-19[9] - Revenue for the six months ended September 30, 2023, was 12,372 thousand SGD, a decrease of 10.6% from 13,845 thousand SGD in the same period of 2022[105] Profitability - Gross profit for the same period was 7,602 thousand SGD, down 8.9% from 8,346 thousand SGD in 2022[75] - Profit attributable to equity holders for the period was 445 thousand SGD, a significant decline of 75.1% compared to 1,777 thousand SGD in the previous year[75] - Basic and diluted earnings per share for the period were 0.04 SGD, down from 0.21 SGD in the same period last year[75] - The total comprehensive income for the period was 323 thousand SGD, down from 1,666 thousand SGD in the previous year, indicating a decline of about 81%[83] - For the six months ended September 30, 2023, the company reported a profit of 445 thousand SGD, compared to 1,777 thousand SGD for the same period in 2022, representing a decrease of approximately 75%[83] Expenses and Costs - Administrative expenses increased by approximately 526 thousand SGD or 15.5%, mainly due to increased salary costs from headquarters expansion[14] - The company reported a decrease in sales and distribution expenses to 3,180 thousand SGD from 3,270 thousand SGD in the previous year[75] - Total employee benefits and director remuneration increased to 4,087 thousand SGD in 2023 from 3,609 thousand SGD in 2022, reflecting a rise in wage and salary expenses[110] Cash Flow and Financing - Cash generated from operating activities was 1,863 thousand SGD, a decrease from 2,279 thousand SGD year-on-year, reflecting a decline of approximately 18%[86] - The net cash used in financing activities was 1,149 thousand SGD, a substantial decrease from 5,978 thousand SGD in the previous year, showing improved cash management[87] - The company's cash and cash equivalents at the end of the reporting period were 23,796 thousand SGD, a slight decrease from 24,101 thousand SGD year-on-year[87] Capital and Investments - The company issued 200,000,000 shares at HKD 0.65 per share, resulting in net proceeds of approximately HKD 74.8 million after deducting underwriting fees and related listing expenses[37] - The company allocated 47.7% of the proceeds, approximately HKD 6.2 million, for general working capital, with HKD 2.361 million already utilized[37] - The company has no significant investments or capital asset plans other than those disclosed in the prospectus and this report as of September 30, 2023[40] Financial Position - As of September 30, 2023, the total equity of the group was approximately SGD 24.7 million, compared to SGD 24.5 million as of March 31, 2023[47] - The current assets of the group were approximately SGD 26.9 million, while current liabilities were about SGD 4.4 million, resulting in a current ratio of approximately 6.1 times[47] - The group's outstanding bank borrowings were approximately SGD 2.0 million as of September 30, 2023, down from SGD 2.1 million as of March 31, 2023[47] - The debt-to-equity ratio of the group was approximately 19% as of September 30, 2023, up from 18% as of March 31, 2023[50] Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes throughout the review period[68] Future Plans - The group plans to launch a new cooking kiosk concept in early 2024 as an additional revenue source[5] - The company plans to open new self-operated stores in Singapore and West Malaysia, with expected completion by March 2024, utilizing 9.8% and 9.4% of the proceeds respectively[37] Miscellaneous - No interim dividend was declared for the review period, compared to 0.133 SGD per share in the corresponding period[18] - The company experienced a foreign exchange loss of 122 thousand SGD during the period, compared to a loss of 111 thousand SGD in the previous year[83] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[42]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Snack Empire Holdings Limited 快 餐 帝 國 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1843） 截至二零二三年九月三十日止 六個月之中期業績公告 快餐帝國控股有限公司（「本公司」）之董事會（分別為「董事」及「董事會」）欣然宣佈本公司 及其附屬公司截至二零二三年九月三十日止六個月之未經審核簡明綜合財務業績。本公 告列載本公司截至二零二三年九月三十日止六個月之中期報告全文，並符合聯交所證券 上市規則（「上市規則」）有關中期業績初步公告須包括的資料的相關規定。本公司截至二 零二三年九月三十日止六個月之中期報告的印刷版將適時發送予本公司股東，並將按照 上市規則所規定的方式於聯交所網站www.hkexnews.hk及本公司網站www.snackemp.com 可供查閱。 承董事會命 快餐帝國控股有限公司 主席及獨立非執行董事 ...

Business Operations - The company operates 238 stores across Singapore, Malaysia, Indonesia, the United States, Egypt, and Cambodia, with 16 self-operated stores in Singapore and 21 in West Malaysia[12]. - Revenue has rebounded to pre-COVID-19 levels in Malaysia following the lifting of restrictions, with an increase of 5 stores compared to the previous year[13]. - The company has successfully secured a location in a hospital in Malaysia, which commenced operations in January 2023[12]. - The company plans to expand its presence in ASEAN countries through franchise exhibitions to attract potential franchisees[7]. - A collaboration with Chef Roboto aims to develop customized frying robots to improve operational efficiency and customer service[7]. Financial Performance - Total revenue increased from approximately 24.1 million SGD in 2022 to about 26.4 million SGD in 2023, representing a growth of approximately 10%[17]. - Sales from self-operated stores in Malaysia increased by 3.0 million SGD, a growth of 38%, due to the lifting of movement restrictions[17]. - Revenue from franchisees in Indonesia and Northern California, USA, increased by approximately 0.6 million SGD (28%) and 0.2 million SGD (41%) respectively, attributed to the easing of COVID-19 restrictions[17]. - Gross profit for the year was approximately 16.1 million SGD, an increase of about 7.0% from 15.1 million SGD in 2022[21]. - The cost of goods sold increased in line with revenue growth, maintaining a gross margin of approximately 61-63%[20]. Employee and Talent Management - Employee costs rose from approximately 7.4 million SGD in 2022 to about 8.6 million SGD in 2023, reflecting a need to attract and retain talent in a competitive labor market[24]. - The gender ratio of employees is 1.2 females for every male employee, indicating a commitment to gender diversity in the workforce[69]. - The company has implemented air quality control practices in its restaurants to ensure a healthy working environment[159]. - The employee retention strategy includes regular reviews of compensation structures to maintain competitiveness in the labor market[165]. - A total of 176 employees participated in the training program, with 45.5% being male and 54.5% female[178]. Corporate Governance - The company has maintained high levels of corporate governance, ensuring the protection of shareholder rights and adherence to governance codes[56]. - The board of directors held five meetings and one annual general meeting during the year, with all executive directors attending all meetings[61]. - The company has appointed new independent directors to enhance its governance structure and oversight capabilities[49][51]. - The board's commitment to corporate governance is reflected in its adherence to mandatory disclosure requirements and best practices[56]. - The company has established various committees to oversee different responsibilities, ensuring effective management and compliance[58]. Environmental, Social, and Governance (ESG) Practices - The company is committed to enhancing its environmental, social, and governance (ESG) practices to create sustainable value for stakeholders[39]. - The company has established a governance framework for environmental, social, and governance (ESG) strategies, with a dedicated working group to assess ESG performance[130]. - Key performance indicators related to ESG are disclosed with a focus on transparency and accountability[132]. - The company is committed to sustainable development and aims to implement sustainability measures across all operational aspects[25]. - The report adheres to the guidelines set by the Hong Kong Stock Exchange for ESG reporting, ensuring compliance with relevant regulations[128]. Customer Feedback and Quality Control - The group received and processed a total of 142 customer complaints in its restaurants in Singapore and Malaysia during the reporting period, averaging 3.7 complaints per store per year[39]. - Customer feedback primarily related to long wait times, service attitude, inaccurate order processing, and dissatisfaction with food taste and quality[39]. - The company has established a food quality control system and safety guidelines, ensuring compliance in its outlets[191]. - The company has not reported any violations related to child labor or forced labor laws during the reporting period[181]. - The company maintains strict supply chain management, ensuring quality control and compliance with safety standards[184]. Financial Management and Capital Structure - Cash and cash equivalents decreased to approximately 23.5 million SGD from 28.4 million SGD in the previous year, a reduction of about 4.9 million SGD[26]. - The current ratio was approximately 5.7 times, down from 6.6 times in the previous year, indicating a decrease in liquidity[26]. - The debt-to-equity ratio was approximately 18% as of March 31, 2023, compared to 15% in the previous year[27]. - The company raised approximately 13.0 million SGD (equivalent to 74.8 million HKD) from the issuance of 200,000,000 shares at HKD 0.65 per share[30]. - The company has no significant contingent liabilities as of March 31, 2023[34]. Training and Development - The total training hours for employees amounted to 2,677 hours, averaging 15.21 hours per employee[178]. - Franchisee training included onboarding for new franchisees and ongoing training for existing ones, totaling 1,609 hours for 60 franchisee employees[179]. - The average training hours for male employees were 14.75 hours, while female employees averaged 15.59 hours[178]. - The company plans to provide comprehensive training for all employees related to operations, management, accounting, finance, legal compliance, and research and development[69]. - All directors participated in continuous professional development to enhance their knowledge and skills, with training covering various relevant topics[79].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Snack Empire Holdings Limited 快 餐 帝 國 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1843） 截至二零二三年三月三十一日止年度 之全年業績公告 本年度財務摘要 • 收入約為26,405,000坡元（二零二二年年度：24,051,000坡元） • 毛利約為16,116,000坡元（二零二二年年度：15,060,000坡元） • 本公司權益持有人應佔年內溢利約為1,843,000坡元（二零二二年年度：2,828,000坡 元） • 每股基本及攤薄盈利約為每股0.2坡仙（二零二二年年度：每股0.4坡仙） ...

Revenue and Profitability - The company's total revenue increased from approximately 11,791 thousand SGD in the corresponding period to about 13,845 thousand SGD, representing a growth of approximately 17%[12] - Revenue for the period reached SGD 13,845 million, an increase of 17.4% compared to SGD 11,791 million in the previous period[72] - Gross profit increased to SGD 8,346 million, up 9.7% from SGD 7,606 million[72] - Net profit attributable to equity holders was SGD 1,777 million, representing a 4.8% increase from SGD 1,695 million[72] - The company reported a net profit attributable to equity holders of 1,666 thousand SGD for the six months ended September 30, 2022, compared to 1,704 thousand SGD for the same period in 2021, reflecting a slight decrease of 2.2%[120] Expenses and Costs - Total sales and distribution expenses grew by approximately 405 thousand SGD or 14.1%, mainly due to increased employee compensation and advertising expenses[16] - The company’s total employee benefits costs increased to 3,609 thousand SGD for the six months ended September 30, 2022, compared to 3,208 thousand SGD for the same period in 2021, reflecting an increase of 12.5%[118] - The average effective interest rate on borrowings is reported at 2.5%, compared to 1.3% in the previous period[130] Dividends - The company declared an interim dividend of 0.133 SGD per share, compared to no dividend in the corresponding period[21] - The company declared an interim dividend of 0.133 per share, totaling 1,066,000, compared to no dividend declared in the previous year[134] Financial Position - As of September 30, 2022, the total equity of the group was approximately SGD 25.5 million, down from SGD 28.9 million as of March 31, 2022[43] - The group's current assets were approximately SGD 27.4 million, while current liabilities were about SGD 4.1 million, resulting in a current ratio of approximately 6.7[43] - The group had outstanding bank borrowings of approximately SGD 2.1 million as of September 30, 2022, compared to SGD 2.2 million as of March 31, 2022[44] - The group held cash and cash equivalents of approximately SGD 24.1 million as of September 30, 2022, down from SGD 28.4 million as of March 31, 2022[44] - The debt-to-equity ratio of the group was approximately 16% as of September 30, 2022, compared to 15% as of March 31, 2022[46] Business Operations - Sales from retail stores in Malaysia increased by approximately 911 thousand SGD or 59%, attributed to the easing of COVID-19 restrictions and the opening of new stores in Indonesia[12] - Franchise sales to overseas franchisees increased significantly, contributing to overall revenue growth[12] - The overall sales of non-self-operated stores increased, leading to a rise in royalty fee income by approximately 149 thousand SGD or 44%[12] - The company remains cautious about ongoing challenges in the snack and beverage industry, particularly regarding rising costs and labor shortages[19] - The company plans to continue exploring potential business opportunities to improve overall profitability[20] Shareholder Information - As of September 30, 2022, the company has 800,000,000 issued shares, with Daniel Tay and Huang Zhidai each holding 600,000,000 shares, representing 75% ownership[56] - Daniel Tay and Huang Zhidai each have a 50% beneficial ownership in Qiaomai Limited, which holds 600,000,000 shares[61] - The company did not repurchase any of its listed securities during the review period[63] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the interim results and confirmed compliance with applicable accounting standards[68] - The company has adopted the corporate governance code and is committed to maintaining high standards of corporate governance[65] - No changes in director information have occurred since the last annual report date[64] - The company has confirmed that all directors complied with the securities trading code during the review period[67] Other Financial Metrics - Total assets decreased to SGD 33,205 million from SGD 37,130 million, a decline of 10.4%[78] - Cash and cash equivalents decreased to SGD 24,101 million from SGD 28,432 million, a reduction of 15.4%[95] - Operating cash flow generated was SGD 2,279 million, down from SGD 3,109 million, a decrease of 26.7%[91] - Total liabilities decreased to SGD 7,657 million from SGD 8,248 million, a decline of 7.2%[81] - The company reported a foreign exchange loss of SGD 111 million, compared to a gain of SGD 9 million in the previous period[72] Government Support - Other income from government subsidies decreased to approximately 73 thousand SGD, down from 496 thousand SGD in the corresponding period[17] - Government grants received were 73 thousand SGD for the six months ended September 30, 2022, a decrease of 85.3% from 496 thousand SGD in the same period of 2021[114]

Financial Performance - The company's revenue for the year ended March 31, 2022, was SGD 24,051,000, an increase of 12.5% compared to SGD 21,451,000 in the previous year[18]. - Sales from specialty and dining stores amounted to SGD 16,030,000, up from SGD 14,477,000, representing an increase of 10.8%[18]. - Franchise and licensed operators contributed SGD 6,470,000 in sales, compared to SGD 5,740,000, marking a growth of 12.7%[18]. - The group's total revenue increased from approximately 21.5 million SGD in 2021 to about 24.1 million SGD in 2022, representing a growth of approximately 12%[5]. - The group's gross profit for the year was approximately 15.0 million SGD, an increase of about 14.5% from approximately 13.1 million SGD in 2021[25]. - The total sales revenue from Singapore's self-operated stores increased due to the nature of takeaway services, with total revenue from Indonesia and the USA rising by approximately 0.9 million SGD (68%) and 0.3 million SGD (136%) respectively[5]. Operational Expansion - The company expanded its operations into East Malaysia through a franchise agreement, reflecting a strategic move to enhance market presence[15]. - The number of specialty and dining stores increased by 6 during the year, attributed to the easing of COVID-19 restrictions[15]. - The company remains optimistic about business prospects in Malaysia and Indonesia, despite ongoing challenges in the restaurant industry[9]. - The company plans to continue expanding both local and overseas markets while enhancing brand strength and shareholder value[40]. Cost Management - The company is focused on managing high costs and maintaining cash flow amid unpredictable COVID-19 conditions[9]. - Employee costs rose from approximately 6.4 million SGD in 2021 to about 7.4 million SGD in 2022, an increase of approximately 1.0 million SGD[27]. - Rental and related expenses increased by approximately 0.5 million SGD (16%) to about 2.4 million SGD due to new store openings and increased warehouse rent in Singapore[28]. - The cost of goods sold increased in line with revenue growth, maintaining a gross margin of approximately 61-63%[24]. Cash Flow and Financial Position - As of March 31, 2022, the group's cash and cash equivalents were approximately 28.4 million SGD, an increase of about 3.0 million SGD from 25.4 million SGD in 2021[29]. - The group recorded a debt-to-equity ratio of approximately 15% as of March 31, 2022, compared to 16% in the previous year[30]. - The net proceeds from the share issuance amounted to approximately 13.0 million SGD, with allocations for new store openings and technology upgrades planned for 2023 and 2024[32]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and ensure transparency and accountability[57]. - The board of directors held four meetings and one annual general meeting during the year, with all executive directors attending all meetings[62]. - The independent non-executive director, Mr. Ho, was appointed on August 27, 2021, and has attended three out of three board meetings since his appointment[62]. - The company has adopted and complied with all provisions of the corporate governance code during the year[58]. - The board consists of three independent non-executive directors, meeting the requirement that independent non-executive directors must account for at least one-third of the board members[13]. Risk Management - The group remains cautious about the unpredictable impacts of COVID-19 and other challenges facing the restaurant industry, such as high operating costs[39]. - The company is subject to various risks and uncertainties that could significantly impact its financial condition and operational performance[123]. - The company faces potential adverse impacts on its financial performance due to reliance on rental agreements for its self-operated stores, with rental costs constituting a major part of operational expenses[128]. - The company acknowledges that negative reviews from food critics can adversely affect its business and brand reputation[125]. Shareholder Relations - The board emphasizes the importance of transparent and timely communication with shareholders to build investor confidence[110]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital, and the meeting must be held within two months of the request[111]. - The company has adopted a dividend policy to distribute no less than 40% of net profit as dividends, subject to board discretion and shareholder approval[117]. - The company reported no final dividend for the fiscal year ending March 31, 2022[138]. Audit and Compliance - The independent auditor, Mazars LLP, was appointed to fill the vacancy left by the resignation of the previous auditor and will be proposed for reappointment at the 2022 annual general meeting[183]. - The independent auditor's report confirms that the consolidated financial statements of Fast Food Empire Holdings Limited accurately reflect the group's financial position as of March 31, 2022, in accordance with International Financial Reporting Standards[135]. - The audit committee reviewed the independence of external auditors and the appointment of external auditors[95]. - The audit committee reviewed the internal control review report and found the risk management and internal control systems to be effective and adequate[102].

0 Snack Empire Holdings Limited 快 餐 帝 國 控 股 有 限 公 司 (於聞曼群島註冊成立的有限公司) 股份代號：1843 2022 ឌ 期 E ME BE ME ME 目 錄 | --- | --- | |--------------------|-------| | | | | | | | | | | 公司資料 | 2 | | | | | 管理層討論及分析 | 3 | | 企業管治及其他資料 | 13 | | 簡明綜合全面收益表 | 18 | | --- | --- | --- | |-------|----------------------|-------| | | | | | | 簡明綜合財務狀況表 | 19 | | | 簡明綜合權益變動表 | 21 | | | 簡明綜合現金流量表 | 22 | | | 簡明綜合財務報表附註 | 24 | 2022 中期報告 2 公司資料 | --- | --- | |----------------------------------------------------------------------------------- ...

Store Operations and Expansion - The company operates a total of 227 stores, including 17 self-operated stores in Singapore and 120 non-self-operated stores in Indonesia, reflecting a decrease of 21 stores compared to the previous year due to pandemic-related restrictions[14] - The company plans to continue expanding its network of self-operated and non-self-operated stores in Singapore and West Malaysia, as well as renovating existing locations and enhancing its IT systems[9] - The company aims to expand into multiple overseas markets and strengthen marketing efforts to attract a diverse customer base[37] Sales and Revenue - Revenue sources include sales from stores, ingredient sales to franchisees, franchise fees, royalties, and advertising income[16] - Total revenue decreased from approximately 24.3 million SGD in 2020 to about 21.5 million SGD in 2021, representing a decline of approximately 12%[19] - Sales from franchisees decreased significantly, with a drop of about 2.6 million SGD or 66% from Indonesia and a decrease of about 2.5 million SGD or 22% from Malaysia[19] - A significant portion of the company's revenue is derived from franchising and licensing models, particularly in Singapore and West Malaysia[124] - The company may experience revenue fluctuations due to delays or cancellations of significant sales orders from franchisees[125] Financial Performance - Gross profit for the year was approximately 13.1 million SGD, down about 14% from 15.4 million SGD in 2020, primarily due to reduced sales volume caused by the COVID-19 pandemic[23] - The cost of goods sold decreased in line with revenue decline, maintaining a stable gross margin of 61-63%[22] - Employee costs increased from approximately 4.8 million SGD in 2020 to about 6.4 million SGD in 2021, an increase of about 1.6 million SGD to support expansion plans[25] - Cash and cash equivalents increased to approximately 25.4 million SGD in 2021 from about 21.6 million SGD in 2020, an increase of about 3.8 million SGD[27] - The current ratio was approximately 6.6 times in 2021, down from 7.0 times in 2020[27] Corporate Governance - The company has maintained compliance with all provisions of the corporate governance code during the year[54] - The board of directors is responsible for leading and controlling the company, ensuring objective decision-making in the best interest of the company[56] - The company emphasizes high levels of corporate governance to protect shareholder interests and ensure sustainable development[53] - The board regularly reviews and adheres to corporate governance policies to ensure compliance with the code[55] - The company has established various board committees with specific responsibilities to enhance governance practices[56] Risk Management and Challenges - The company maintains a cautious optimism regarding recovery from the pandemic, despite ongoing challenges and fluctuating infection rates in various countries[7] - The company is cautious about the ongoing impact of the COVID-19 pandemic and other market uncertainties on its operations and revenue[37] - The company faces risks related to potential negative reviews from food critics, which could adversely affect its business operations and brand reputation[124] - The company relies on major franchisees and licensed operators for revenue, and any disruption in these relationships could adversely affect financial performance[127] Shareholder and Stakeholder Engagement - The company expresses gratitude to stakeholders for their trust and support during challenging times[10] - The board emphasizes the importance of maintaining transparent and timely communication with shareholders to build investor confidence[107] - The company has implemented a policy for handling and disclosing inside information to ensure accuracy and timeliness of public disclosures[101] Audit and Financial Reporting - The independent auditor Mazars LLP was paid a total of 158,000 for annual audit services in the current year[97] - The audit committee reviewed the financial statements and the independence of external auditors, ensuring compliance with accounting standards and risk management[86] - The company’s financial statements have been audited and reviewed by the independent auditor, ensuring compliance with accounting principles[181] - The audit process involved identifying and assessing risks of material misstatement and designing appropriate audit procedures[199] Dividend Policy - The company has adopted a dividend policy, proposing to distribute no less than 40% of net profit as dividends, subject to board discretion and shareholder approval[115] - The company has implemented a review process for its dividend policy, with no guarantee of dividend payments in any specific period[116] - The company’s board will decide on the payment of dividends based on factors such as operational performance, cash flow, and capital requirements[115] - The company has no plans to declare any final dividends for the fiscal year[138] Share Options and Management - The total number of options that can be granted under the share option scheme is capped at 80 million shares, representing 10% of the total issued shares as of the report date[147] - The maximum rights granted to any qualified person cannot exceed 1% of the total issued shares unless approved by shareholders[148] - The exercise period for stock options is within ten years from the grant date, subject to early termination provisions[149]