Revenue Growth - For the six months ended September 30, 2023, the revenue from Hong Kong increased by 8.2% year-on-year to HKD 1,296.1 million, driven by improved comparable restaurant performance since Q4 of the previous fiscal year [4]. - The Singapore market's total revenue for the first half of 2024 increased by 38.8% compared to the same period in 2023, despite a decline in comparable restaurant revenue due to labor shortages [5]. - Revenue increased by 10.0% from HKD 1,261.7 million in the first half of 2023 to HKD 1,387.4 million in the first half of 2024, primarily due to an increase in the number of operating restaurants and growth in comparable restaurant revenue in Hong Kong [24]. - Revenue for the first half of 2024 reached HKD 1,387.4 million, a 10.0% increase from HKD 1,261.7 million in the same period of 2023 [62]. - Revenue from external customers for the six months ended September 30, 2023, was HKD 1,387,369,000, an increase from HKD 1,261,721,000 in the same period last year, representing a growth of 9.9% [175]. Profitability - The operating profit for the first half of 2024 was HKD 257.0 million, representing a 19.3% increase from HKD 215.5 million in the same period of 2023 [16]. - The operating profit margin improved from 17.1% in the first half of 2023 to 18.5% in the first half of 2024, attributed to a decrease in the percentage of costs related to materials and food [17]. - The company's profit for the period was HKD 81.6 million, slightly down from HKD 82.8 million in the previous year, while profit excluding government subsidies increased by 153.1% to HKD 81.4 million [74]. - Profit for the period decreased by 1.4% to HKD 81.6 million, while profit excluding government subsidies increased by 153.1% to HKD 81.4 million [198]. Operating Performance - The operating loss in markets outside Hong Kong narrowed by 68.3% to HKD 5.3 million, attributed to improved performance in mainland China and Japan [73]. - The operating profit margin for Hong Kong operations improved from 19.4% in the first half of 2023 to 20.2% in the first half of 2024, reflecting successful business strategies and effective cost control [22]. - Comparable restaurant revenue in Hong Kong rose by 2.9% to HKD 1,096.0 million, while comparable restaurant revenue in mainland China and overseas markets decreased by 5.7% to HKD 38.1 million [35]. Expansion Plans - The company plans to continue expanding its business network in existing and overseas markets, including a joint venture with ST Group in Australia, where it holds a 49% stake [13]. - The company plans to expand into the Philippines through a franchise agreement with Suyen Corporation, leveraging their strong business network in the local market [30]. - The company is expanding into the Australian market using a joint venture and franchising model to reduce capital investment and risk [50]. - The company is exploring franchising opportunities in Australia and the Philippines while promoting brand diversification in Hong Kong [198]. Cost Management - The cost of food and beverages rose by 8.5% to HKD 327.8 million in the first half of 2024, accounting for 23.6% of revenue [63]. - Employee costs increased by 7.8% to HKD 436.9 million, representing 31.5% of revenue in the first half of 2024 [63]. - The company's financing costs increased by 22.2% from HKD 9.0 million in the first half of 2023 to HKD 11.0 million in the first half of 2024 due to the expansion of the restaurant network [46]. - The company's electricity and water expenses rose by 27.3% to HKD 45.2 million, accounting for 3.3% of revenue in the first half of 2024 [43]. Dividend Declaration - The company declared an interim dividend of HKD 0.03 per share for the first half of 2024, with a payout ratio of approximately 49.2% [20]. - The board declared an interim dividend of HKD 0.03 per share, compared to no dividend in the first half of 2023 [198]. Strategic Initiatives - The company is enhancing localization efforts in mainland China, including launching food that caters to local tastes and conducting marketing activities on popular social media platforms [10]. - The company is focusing on developing new product varieties for its top brands, "Tam Jai Yunnan Noodles" and "Sam Go," to attract more customers and enhance customer relationship management [14]. - The company is focusing on enhancing brand awareness and adapting to local markets in mainland China, Singapore, and Japan as part of its second development phase [51]. Financial Position - Cash and cash equivalents amounted to HKD 1,339.0 million as of September 30, 2023, down from HKD 1,375.7 million as of March 31, 2023 [105]. - Non-current assets totaled HKD 1,225,531 as of September 30, 2023, an increase from HKD 1,161,080 [141]. - The company's net asset value decreased to HKD 1,481,535,000 from HKD 1,541,848,000, indicating a decline of about 3.9% [142]. - Total assets less current liabilities were HKD 2,045,287, slightly up from HKD 2,044,473 [141].

Revenue and Profit - Revenue increased by 14.0% to HK$2,594.6 million year-on-year, mainly attributable to the increased number of restaurants in operation[25] - Profit for the year decreased by 30.6% to HK$140.9 million, with a profit margin of 5.4% compared to 8.9% in the previous year[10] - Revenue from takeaway and delivery services contributed 45.3% of total revenue in FY2023[18] - Revenue for the fiscal year 2023 was HK$2,594.6 million, with a comparable restaurant revenue of HK$1,980.3 million, reflecting a decrease of 2.0% from HK$2,020.2 million in fiscal year 2022[70][72] - Operating profit decreased by 6.6% to HK$445.4 million in FY2023, with an operating profit margin of 17.2%, down from 20.9% in FY2022[84] Expansion and Growth - In Singapore, revenue reached HK$64.2 million in FY2023, representing a 149.8% year-on-year increase[27] - The company aims to open approximately 50 new restaurants in various regions in FY2024 as part of its expansion strategy[52] - The company accelerated its expansion strategy in Mainland China, opening 12 new restaurants in tier 2 cities of the Greater Bay Area during FY2023[37] - In FY2023, the company opened 20 new restaurants in Hong Kong, enhancing its restaurant network for recovery in FY2024[36] - The total number of self-operated restaurants increased from 86 in FY2022 to 104 in FY2023, with significant growth in Hong Kong and Singapore[86] Operational Efficiency and Costs - The cost of food and beverages consumed increased by 19.7% from HK$518.3 million in fiscal year 2022 to HK$620.3 million in fiscal year 2023, representing 23.9% of revenue[78] - Staff costs rose by 14.6% from HK$722.8 million in fiscal year 2022 to HK$828.6 million in fiscal year 2023, accounting for 31.9% of revenue[79] - Depreciation of owned property, plant, and equipment increased by 33.4% from HK$92.2 million in fiscal year 2022 to HK$123.0 million in fiscal year 2023[80] - Utilities expenses increased by 37.9% from HK$53.0 million in FY2022 to HK$73.1 million in FY2023, driven by the growth in the number of restaurants and rising charge rates[125] - Other expenses grew by 39.1% from HK$51.1 million in FY2022 to HK$71.1 million in FY2023, mainly due to the increase in the number of restaurants and expansion of headquarters[106] Marketing and Brand Development - The company aims to promote the "Tam Jai" brand in overseas markets as part of its international expansion plan[35] - The company is committed to building strong customer loyalty and brand recognition through innovative marketing strategies[32] - The company launched a series of branding and promotion campaigns in Japan, including the "Spicy Challenges" campaign, to build brand awareness[41] - The company successfully conducted brand-building activities in Mainland China and Singapore, enhancing brand awareness[61] - The company aims to integrate its brand into local markets through various promotional activities and social media engagement[61] Financial Position and Assets - Non-current assets increased by 10.0% to HK$1,161.1 million[10] - Current liabilities rose by 10.2% to HK$630.5 million[10] - Cash and cash equivalents as of 31 March 2023 were HK$1,375.7 million, slightly up from HK$1,365.2 million as of 31 March 2022[113] - Right-of-use assets increased from HK$700.8 million as of 31 March 2022 to HK$768.6 million as of 31 March 2023 due to more tenancy agreements for restaurants and offices[131] - Trade and other payables and accruals increased from HK$199.4 million as of 31 March 2022 to HK$238.4 million as of 31 March 2023, resulting from operational expansion[133] Employee and Staffing - The company had 3,363 employees as of March 31, 2023, an increase of 12.3% from 2,990 employees on March 31, 2022[160] - Employee costs totaled HK$828.6 million in FY2023, up from HK$722.8 million in FY2022, reflecting an increase in restaurant and office staff[122] - The basic salary for employees is generally based on their work experience and prevailing market salary levels[160] Future Outlook - The company expects business recovery in Hong Kong to continue, driven by the lifting of border restrictions and social distancing measures[48] - The company plans to close two under-performing restaurants in Mainland China in Q1 FY2024 to enhance efficiency[37] - The company is enhancing operational efficiency and service quality in Singapore and Japan while adapting its brand to local markets[50] - The company has shown agility in operations despite economic challenges, positioning itself for future business opportunities[63] Miscellaneous - The first-ever Charitable NFT, "Souper Hero," was launched during FY2023, achieving a 10-times over-subscription during the whitelisting stage[45] - The company does not have a currency hedging policy, and fluctuations in Renminbi, Singapore dollars, and Japanese Yen against Hong Kong dollars may affect results[136] - The company will continue to monitor foreign currency exposure and take appropriate measures to minimize risks when necessary[136] - As of March 31, 2023, capital commitments amounted to HK$2.3 million, a decrease of 72.6% from HK$8.4 million on March 31, 2022[160]

Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was HKD 2,594.6 million, representing a 14.0% increase from HKD 2,275.3 million in the previous year[9]. - Operating profit decreased by 6.6% to HKD 445.4 million, down from HKD 476.7 million, resulting in an operating profit margin of 17.2%, down from 20.9%[11]. - The company reported a pre-tax profit of HKD 176,005, a decrease of 28.2% from the previous year, and an annual profit of HKD 140,953, down 30.6%[23]. - The profit margin for the fiscal year was 5.4%, reflecting the challenges faced in the market[23]. - The net profit for the fiscal year 2023 was HKD 141.0 million, down from HKD 203.0 million in the fiscal year 2022, with basic earnings per share at HKD 0.105 compared to HKD 0.175 in the previous year[48]. - The company’s profit attributable to ordinary equity shareholders for the year was HKD 140,953,000, a decrease of 30.5% from HKD 202,960,000 in the previous year[171]. Revenue Breakdown - The revenue from Hong Kong was HKD 2,452,667, up 10.4% from HKD 2,221,773, while revenue from mainland China and overseas markets surged by 165.2% to HKD 141,946 from HKD 53,525[15]. - For the fiscal year 2023, the company's revenue reached HKD 2,594.6 million, representing a 14.0% increase compared to HKD 2,275.3 million in the fiscal year 2022[46]. - The comparable restaurant revenue in Hong Kong decreased by 9.0% in the first half of the fiscal year 2023, but the overall decline for the year was only 2.2% due to improvements in the second half[49]. - In Singapore, the company achieved revenue of HKD 64.2 million in FY2023, a year-on-year growth of 149.8%, with average bowls sold per seat increasing by 32.1% to 3.7[62]. Cost and Expenses - The cost of food and beverages increased by 19.7%, while employee costs rose by 13.2%, contributing to the decline in operating profit margin[11]. - Employee costs rose to HKD 828,579, an increase of 14.6% from HKD 722,808 in the previous year[164]. - Food and beverage costs increased by 19.7% from HKD 518.3 million in fiscal year 2022 to HKD 620.3 million in fiscal year 2023, representing 23.9% of total revenue[94]. - Utilities expenses rose by 37.9% from HKD 53.0 million in fiscal year 2022 to HKD 73.1 million in fiscal year 2023, representing 2.8% of total revenue[101]. - Depreciation and related expenses for right-of-use assets increased by 19.3% from HKD 418.4 million in fiscal year 2022 to HKD 499.3 million in fiscal year 2023[98]. - Advertising and promotional expenses rose by 30.9% from HKD 46.6 million in fiscal year 2022 to HKD 61.0 million in fiscal year 2023, driven by brand-building activities in new markets[116]. Expansion and Growth Strategy - The company plans to open approximately 50 new restaurants in various regions during the fiscal year 2024, aiming to expand its market presence[6]. - The company opened a total of 20 new restaurants in Hong Kong, mainland China, Singapore, and Japan during the fiscal year 2023, bringing the total to 215 restaurants by March 31, 2023[46]. - The company plans to expand its brand internationally, with a focus on Western markets starting in the fiscal year 2024, despite challenges from the macroeconomic environment[41]. - The company is investing in automation technology to enhance operational efficiency and support future expansion[85]. Marketing and Customer Engagement - The company is focusing on enhancing product and service quality to maintain its brand value in Hong Kong, especially after the lifting of border restrictions[5]. - Marketing activities are planned in the Greater Bay Area to capitalize on economic recovery opportunities following the reopening of borders[6]. - New marketing initiatives, including the launch of mobile apps and promotional campaigns, have been implemented to drive customer engagement and sales[50]. - The company successfully attracted approximately 450,000 independent members to its CRM system within a few months, demonstrating the effectiveness of its digital transformation strategy[38]. Community and Social Responsibility - The company has expanded its scholarship program, increasing the total amount from HKD 1.0 million to HKD 3.0 million, supporting 60 awardees[1]. - The company has established the "Tam Jai Charity Fund" to support ESG initiatives, focusing on community enrichment, people-centric projects, and green initiatives[39]. - The company introduced a charity NFT called "Souper Hero," which achieved a 10x oversubscription during its whitelist phase[14]. Operational Efficiency - The company implemented cost control measures and improved operational efficiency despite challenges, maintaining employee costs at a similar level compared to the previous fiscal year[68]. - The company is expanding its supplier network to mitigate rising food costs and improve supply chain efficiency[85]. - The company aims to enhance its CRM and mobile app functionalities to improve operational excellence and customer experience, which will contribute to brand value and revenue growth[38]. Assets and Liabilities - The non-current assets increased by 10.0% to HKD 1,161,080 from HKD 1,055,739, while current assets remained relatively stable with a slight increase of 0.1%[25]. - The current ratio decreased to 2.4 from 2.6, indicating a slight decline in liquidity[25]. - Cash and cash equivalents amounted to HKD 1,375.7 million as of March 31, 2023, compared to HKD 1,365.2 million as of March 31, 2022, with no interest-bearing bank or other borrowings[134]. - Total non-current liabilities increased to HKD 502,625 from HKD 443,050, representing a rise of 13.4%[146].

Revenue Performance - Revenue for the first half of 2023 reached HK$1,261,721,000, representing a 6.8% increase from HK$1,181,494,000 in the first half of 2022[10] - Revenue for the six months ended 30 September 2022 was HK$1,261,721, representing a 6.8% increase from HK$1,181,494 in 2021[18] - Revenue increased by 6.8% from HK$1,181.5 million in 1H2022 to HK$1,261.7 million in 1H2023, primarily due to an increase in the number of restaurants in operation[123] Profitability - Profit for the period in 1H2023 was HK$137,871,000, a decrease of 0.6% compared to HK$138,871,000 in 1H2022[12] - Profit before taxation decreased by 40.1% to HK$101,413 from HK$169,216 in the previous year[18] - Profit for the period was HK$82,775 with a profit margin of 6.6%, down from HK$137,871 and 11.7% respectively[18] - Basic earnings per share for 1H2023 were HK$6.2 cents, a decline from HK$13.8 cents in 1H2022[14] - Operating profit decreased by 29.0% from HK$303.3 million in 1H2022 to HK$215.5 million in 1H2023[114] - Operating profit margin fell from 25.7% in 1H2022 to 17.1% in 1H2023, attributed to rising food costs, handling charges, and increased marketing expenses[118] Restaurant Network Expansion - The number of restaurants increased to 208 in 1H2023, up from 157 in 1H2022, indicating a growth of 32.5%[11] - The company plans to expand its restaurant network further into Mainland China and overseas markets[11] - The company expanded its restaurant network to Japan, marking a significant milestone in its growth strategy[27] - In 1H2023, the company opened 19 new restaurants in Hong Kong, 9 in Mainland China, 5 in Singapore, and 2 in Japan, reaching a total of 208 restaurants globally as of September 30, 2022[75] Operational Efficiency and Cost Control - Future guidance indicates a focus on increasing operational efficiency and profitability despite current challenges[11] - The company implemented various cost control measures to streamline food and labor costs and negotiated rent concessions with landlords[70] - Cost-control measures and improved operational efficiency are expected to stabilize profit margins moving forward[103] Customer Experience and Technology - Management highlighted ongoing development of new products and technologies to enhance customer experience[11] - The customer relationship management (CRM) system for both TamJai brands is set to launch in Q3 FY2023, aimed at enhancing customer experience and driving long-term revenue growth[38] - The company launched a new SamGor mobile application and CRM system in 1H2023 to enhance mobile ordering and brand loyalty programs[68] Challenges and Market Conditions - The F&B industry is facing rising ingredient costs due to inflation and supply chain disruptions, impacting overall profitability[58] - In Mainland China, the business was adversely impacted by multiple lockdowns and mandatory PCR test policies, yet new restaurants in Guangzhou and Dongguan showed encouraging performance[68] - The company has slowed down expansion in Mainland China and Japan due to global economic uncertainty but remains optimistic about future growth in these markets[107] Sustainability Initiatives - New initiatives include the Tam Jai Goodness Trust and various ESG-focused programs aimed at community and environmental sustainability[44] - The company expanded its sustainability initiatives, granting around HK$1.2 million in scholarships to the children of 35 employees[83] Marketing and Public Relations - The charitable NFT campaign "Souper Hero" generated over HK$28.8 million in PR value within one month[93] - The "TamJai SamGor 2022 Branding Campaign" achieved over 2.9 million video views and 6.4 million impressions, resulting in HK$22.0 million in PR value[94] - The company has won over 30 public relations and marketing awards for its successful campaigns, including the Gold Award for Innovation in Investor Relations at the Asia-Pacific Stevie® Awards[101] Financial Position - Non-current assets increased by 11.6% to HK$1,178,093 from HK$1,055,739[18] - Current assets decreased by 3.9% to HK$1,453,861 from HK$1,513,008[18] - Cash and cash equivalents were HK$1,324.3 million as of September 30, 2022, down from HK$1,365.2 million as of March 31, 2022[190] - The company had no interest-bearing bank and other borrowings as of September 30, 2022, maintaining a gearing ratio of zero[191]

Revenue and Profit Performance - Revenue for the year ended March 31, 2022, was HK$2,275,298, representing a 26.8% increase from HK$1,794,693 in the previous year[26]. - Profit for the year decreased to HK$202,960, down 29.5% from HK$287,792 in the prior year[26]. - Profit margin for the year was 8.9%, compared to 16.0% in the previous year[26]. - Adjusted profit for the year, excluding government subsidies and listing expenses, was HK$165,453, an increase of 17.8% from HK$140,438[26]. - Profit attributable to equity shareholders for FY2022 was HK$203.0 million, down from HK$287.8 million in FY2021, while adjusted profit increased by HK$25.0 million or 17.8% to HK$165.5 million[81]. - Profit for the year decreased from HK$287.8 million in FY2021 to HK$203.0 million in FY2022; adjusted profit increased by 17.8% from HK$140.4 million to HK$165.5 million[198]. - Profit margin was 16.0% in FY2021 and 8.9% in FY2022; adjusted profit margin decreased from 7.8% to 7.3%[198]. Expenses and Costs - Listing expenses increased significantly by 138.7% to HK$17,261 from HK$7,231[26]. - Staff costs rose by 29.2% from HK$559.4 million in FY2021 to HK$722.8 million in FY2022, with staff costs as a percentage of revenue increasing from 31.2% to 31.8%[174]. - Cost of food and beverages consumed increased by 26.0% from HK$411.5 million in FY2021 to HK$518.3 million in FY2022, maintaining a stable percentage of revenue at 22.9% and 22.8% respectively[170]. - Other net income decreased significantly from HK$167.8 million in FY2021 to HK$57.7 million in FY2022, primarily due to reduced government subsidies and rental concessions[170]. - Advertising and promotion expenses surged by 115.1% from HK$21.7 million in FY2021 to HK$46.6 million in FY2022, attributed to increased branding and promotional activities[187]. - Other expenses increased by 46.4% from HK$34.9 million in FY2021 to HK$51.1 million in FY2022[188]. - Income tax expense increased from HK$32.5 million in FY2021 to HK$42.1 million in FY2022, with an adjusted effective tax rate rising from 19.6% to 22.1%[198]. Restaurant Operations and Expansion - The number of international restaurants increased to 175, up from 147 in the previous year[21]. - The company operated 144 restaurants in Hong Kong and 31 outside Hong Kong as of March 31, 2022[21]. - The company successfully expanded into Mainland China and Japan markets, with significant customer interest in Tokyo restaurants[46]. - The company successfully expanded its restaurant network to Mainland China and Japan, with a total of 175 restaurants across Hong Kong, Mainland China, Japan, and Singapore as of 31 March 2022[66]. - The first restaurant in Japan opened on 31 March 2022 and received positive customer responses[79]. - The company plans to continue expanding its restaurant network in Mainland China, Singapore, and Japan to support growth[174]. - The company opened 8 new restaurants in Mainland China during FY2022, including 6 in Shenzhen and 2 in Guangzhou, with plans for continued expansion in the Greater Bay Area in FY2023[92]. - In Singapore, one new restaurant was opened in March 2022, with additional locations confirmed for FY2023 following the easing of COVID-19 restrictions[94]. Financial Position and Assets - Non-current assets increased by 24.0% to HK$1,055,739,000 in FY2022 from HK$851,563,000 in FY2021[27]. - Current assets surged by 173.4% to HK$1,513,008,000 in FY2022 compared to HK$553,419,000 in FY2021[27]. - As of 31 March 2022, the company had cash and cash equivalents of HK$1,365.2 million, indicating a healthy financial position[81]. - Right-of-use assets increased from HK$563.8 million as of March 31, 2021, to HK$700.8 million as of March 31, 2022, due to more tenancy agreements for restaurants and offices[198]. Customer Engagement and Marketing - Hundreds of customers queued for hours outside the Shinjuku restaurant in Japan, indicating strong demand for Hong Kong flavors[46]. - The company maintained operations and core menu offerings during the pandemic, providing affordable meals to millions[48]. - The marketing campaigns in Shenzhen generated over 7 million social media exposures in April 2021, showcasing the brand's strong market impact[126]. - The company received 12 PR and marketing awards, including the "Campaign of the Year (Gold)" at the Marketing Interactive — PR Awards 2021[125]. - The launch of the Japan restaurant on March 31, 2022, was highlighted by features in over 20 Japanese media outlets, enhancing brand visibility[126]. - The company’s innovative marketing strategies, such as the "TamJai Girl Group" campaign, generated over 1.3 million views, reinforcing community engagement[114]. Product Innovation and Customer Experience - The average spending per customer increased due to menu price adjustments and successful product innovations, contributing to a rise in the average daily number of bowls served per seat[94][102]. - The company launched over 24 new products in FY2022, including premium toppings and snacks, which significantly boosted customer spending and menu variety[102]. - The company introduced the Bak Kut Bowl in Singapore, adapting its Wula soup to local tastes, which reflects its commitment to product innovation across different markets[103]. - In FY2022, the company launched over 20 new products, including high-end ingredients and unique dishes, significantly increasing per customer spending and daily bowl sales[105]. Operational Efficiency and Management - The current ratio improved to 2.6 in FY2022 from 1.1 in FY2021, reflecting better liquidity management[30]. - The integration of the central kitchen for TamJai and SamGor has improved cost efficiency and food production optimization amid rising food costs[104]. - The company integrated its central kitchens to reduce facility costs and improve food production efficiency, while also implementing a new supply chain management system to enhance cost control[106]. - The company is investing in new technologies, including a customer relationship management system and a voice-ordering system, to enhance restaurant-level efficiency[129]. - The company plans to continue investing in logistics and operational infrastructure while maintaining a prudent approach to international expansion[54]. - The company implemented Smart Rostering to maintain staff productivity amidst fluctuating business volumes due to COVID-19[109]. - Continuous training was provided to all staff, along with special arrangements to protect them from COVID-19, including temperature checks and flexible work hours[110].

Tam Jai International Co. Limited 譚 仔 國 際 有 限 公 司 (Incorporated in Hong Kong with limited liability) (於香港註冊成立的有限公司) Stock Code 股份代號 : 2217 中 期 報 告 INTERIM REPORT ２０２１/２２ CONTENTS 目錄 | --- | --- | --- | |-------------------------------------------------------------------------------------------|---------------------------------------|-------| | | | | | | | | | Corporate Information | 公司資料 | | | Financial Highlights | 財務摘要 | | | Management Discussion and Analysis | 管理層討論及分析 | | | Independent Review Report to ...