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].

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) The company's revenue grew significantly, and adjusted profit more than doubled, driven by strong core business performance despite a reported profit decline Key Financial Metrics | Metric | H1 FY2022 (as of 2021/9/30) | H1 FY2021 (as of 2020/9/30) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue (HK$ million)** | 1,181 | 826 | +43.0% | | **Profit for the Period (HK$ million)** | 138 | 156 | -11.8% | | **Adjusted Profit for the Period(1) (HK$ million)** | 147 | 71 | +107.8% | | **Profit Margin** | 11.7% | 18.9% | -7.2pp | | **Adjusted Profit Margin** | 12.4% | 8.6% | +3.8pp | - Adjusted profit for the period excludes the impact of one-time COVID-19 related government subsidies and listing expenses; government subsidies were **HK$1.97 million** in H1 FY2022, compared to **HK$89.63 million** in the prior-year period[8][13] Financial Position Summary | Metric (HK$ million) | As of Sep 30, 2021 | As of Mar 31, 2021 | Change | | :--- | :--- | :--- | :--- | | **Non-current Assets** | 864 | 852 | +1.5% | | **Current Assets** | 424 | 553 | -23.3% | | **Current Liabilities** | 547 | 526 | +3.9% | | **Capital and Reserves** | 409 | 545 | -25.1% | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) Strong revenue growth was driven by network expansion and improved operational efficiency, with successful market recovery in Hong Kong and strategic expansion overseas [Business Review](index=7&type=section&id=BUSINESS%20REVIEW) Revenue and adjusted profit surged due to an expanded restaurant network and strong comparable sales, supported by operational efficiencies and market expansion - As of September 30, 2021, the Group operated a total of **157 restaurants** across Hong Kong, Mainland China, and Singapore[20] - Sales from comparable restaurants in Hong Kong have largely recovered to pre-COVID-19 levels, driven by a stable local pandemic situation, the consumption voucher scheme, and strong takeaway business[25] - The Group successfully controlled costs and improved profit margins by integrating the central kitchens of the Tamjai and Samgor brands and implementing a "smart rostering" system for staff, without any pandemic-related layoffs[31][32] - The Group actively expanded into new markets, opening **4 new restaurants in Shenzhen** that met management's expectations for revenue and profitability; the Singapore and Japan markets remain in the initial investment phase[38][39] [Prospects](index=12&type=section&id=PROSPECTS) The Group will focus on product innovation, supply chain optimization, and technology investment while pursuing further expansion in Hong Kong and international markets - The Group will continue to leverage its diverse menu by introducing new products and premium toppings, and will implement a new supply chain management system to optimize costs and inventory[56] - Investments are planned in new technologies such as a Customer Relationship Management (CRM) system and a voice ordering system to enhance efficiency for dine-in, takeaway, and delivery orders[56] - Expansion plans include opening **14 new restaurants in Hong Kong** between October 2021 and March 2022, with further expansion in the Greater Bay Area and Singapore; two new restaurants are expected to open in Japan in Q1 2022[62] [Performance of Restaurant Operations](index=13&type=section&id=PERFORMANCE%20OF%20RESTAURANT%20OPERATIONS) Restaurant-level operating profit and margin increased significantly, driven by revenue growth, cost efficiencies, and positive performance across key metrics Restaurant-level Operating Performance | Metric | H1 FY2022 | H1 FY2021 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Profit (HK$ million)** | 303 | 154 | +96.7% | | **Operating Profit Margin** | 25.7% | 18.7% | +7.0pp | Restaurant Count by Region | Region | No. of Restaurants as of Sep 30, 2021 | No. of Restaurants as of Sep 30, 2020 | | :--- | :--- | :--- | | **Hong Kong** | 150 | 131 | | **Mainland China** | 4 | 0 | | **Singapore** | 3 | 0 | | **Total** | 157 | 131 | - Revenue from comparable restaurants in the Hong Kong market **increased by 20.0% YoY**, from HK$771 million to HK$925 million[84] Key Performance Indicators (H1 FY2022) | KPI | Hong Kong | Mainland China | Singapore | Overall | | :--- | :--- | :--- | :--- | :--- | | **Average Spending per Customer (HK$)** | 59.5 | 61.8 | 85.0 | 59.6 | | **Daily Bowl Sales per Seat** | 6.8 | 6.4 | 2.4 | 6.7 | | **Daily Revenue per Restaurant (HK$)** | 43,546 | 30,643 | 19,494 | 42,889 | [Financial Review](index=19&type=section&id=FINANCIAL%20REVIEW) Revenue grew 43.0% with improved cost ratios, though cash decreased due to a significant dividend payment during the period - Total revenue **increased by 43.0% YoY**, primarily due to an increase in the number of restaurants and growth in comparable restaurant revenue[92] - Other income decreased significantly to HK$2.5 million from HK$98.4 million in the prior-year period, mainly due to a substantial reduction in COVID-19 related government subsidies[93] - Overall staff costs rose by 38.7% YoY to HK$359 million, but the staff cost-to-revenue ratio **improved from 31.3% to 30.3%**, indicating enhanced labor efficiency[98][99] - Advertising and promotion expenses surged by 206.0% YoY to HK$18.3 million, mainly for brand promotion in Hong Kong and Singapore and market launch activities in Shenzhen[112] - The adjusted effective tax rate slightly increased from 17.3% to 18.7%; excluding listing expenses and government subsidies, **adjusted profit grew by 107.8% YoY**[130] - As of September 30, 2021, cash and cash equivalents stood at HK$321 million, a decrease of HK$140 million from the beginning of the period, mainly due to net cash from operations of HK$349 million being offset by net cash used in financing activities of HK$448 million (including a **HK$280 million dividend payment**)[144] [Unaudited Consolidated Financial Statements](index=29&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited statements of profit or loss, financial position, changes in equity, and cash flows for the six-month period [Unaudited Consolidated Statement of Profit or Loss](index=29&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The company generated revenue of HK$1.181 billion and profit for the period of HK$138 million, resulting in basic earnings per share of 13.8 HK cents | Item | Amount (HK$'000) | | :--- | :--- | | **Revenue** | 1,181,494 | | **Profit before tax** | 169,216 | | **Income tax expense** | (31,345) | | **Profit for the period** | 137,871 | | **Basic earnings per share** | 13.8 HK cents | [Unaudited Consolidated Statement of Financial Position](index=31&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) The company reported total assets of HK$1.29 billion and net assets of HK$409 million, with net current liabilities of HK$122 million | Item | Amount (HK$'000) | | :--- | :--- | | **Non-current Assets** | 864,165 | | **Current Assets** | 424,350 | | **Total Assets** | 1,288,515 | | **Current Liabilities** | 546,624 | | **Non-current Liabilities** | 333,246 | | **Total Liabilities** | 879,870 | | **Net Assets** | 408,645 | - The company recorded **net current liabilities of HK$122 million** at the period end, primarily attributable to HK$308 million in lease liabilities included in current liabilities and a reduction in cash due to a HK$280 million dividend payment[212] [Unaudited Consolidated Statement of Changes in Equity](index=33&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HK$545 million to HK$409 million, primarily due to a HK$280 million dividend payment offset by period profits - Total equity at the beginning of the period was **HK$545 million**[189] - A dividend payment of **HK$280 million** was made during the period, with equity-settled share-based payment expenses of HK$5.02 million[192] - Total equity at the end of the period was **HK$409 million**[193] [Unaudited Condensed Consolidated Cash Flow Statement](index=34&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statement) The period saw strong net cash from operations, but a net cash decrease of HK$140 million resulted from significant financing outflows | Item | Amount (HK$'000) | | :--- | :--- | | **Net cash generated from operating activities** | 349,298 | | **Net cash used in investing activities** | (41,026) | | **Net cash used in financing activities** | (448,381) | | **Net (decrease) in cash and cash equivalents** | (140,109) | | **Cash and cash equivalents at beginning of period** | 460,851 | | **Cash and cash equivalents at end of period** | 320,742 | [Notes to the Unaudited Interim Financial Report](index=35&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) These notes provide detailed explanations of key financial items, including accounting policies, segment reporting, and significant post-period events like the IPO [Note 15 CAPITAL, RESERVES AND DIVIDENDS](index=49&type=section&id=Note%2015%20CAPITAL%2C%20RESERVES%20AND%20DIVIDENDS) No interim dividend was proposed for the period, though a prior-year dividend was paid, and share-based compensation plans were actively utilized - The Board of Directors **does not recommend the payment of an interim dividend** for the six months ended September 30, 2021[276] - An interim dividend of **HK$0.28 per share**, totaling HK$280 million, attributable to the previous financial year was paid during the period[277] - On August 9, 2021, **3,000,000 share awards** were granted to selected employees for no consideration under the Pre-IPO Share Award Scheme[283] - Share options were granted to eligible participants under the Pre-IPO Share Option Scheme with an **exercise price of HK$0.85**[291] [Note 19 NON-ADJUSTING EVENT AFTER THE REPORTING PERIOD](index=56&type=section&id=Note%2019%20NON-ADJUSTING%20EVENT%20AFTER%20THE%20REPORTING%20PERIOD) The company successfully completed its IPO on the Hong Kong Stock Exchange on October 7, 2021, raising approximately HK$1.116 billion in gross proceeds - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **October 7, 2021**[311] - The global offering comprised **335,008,000 ordinary shares** at an offer price of HK$3.33 per share, raising gross proceeds of approximately HK$1.116 billion[311] [Corporate Governance and Other Information](index=57&type=section&id=Corporate%20Governance%20and%20Other%20Information) The company complied with the Corporate Governance Code post-listing, with details on share plans and the allocation of its HK$1.051 billion IPO proceeds [Corporate Governance Information](index=57&type=section&id=Corporate%20Governance%20Information) The company has complied with the Corporate Governance Code since its listing, with the exception of the chairman and CEO roles being combined - The Corporate Governance Code has been applicable to the company since its listing date of **October 7, 2021**[315] - One deviation exists: the roles of Chairman and Chief Executive Officer are both held by **Mr. Lau Tat Man**, which the Board believes is beneficial for effective management and operations[316] [Share Option Schemes](index=58&type=section&id=Share%20Option%20Schemes) The company operates pre-IPO and post-IPO share option schemes, with options granted and outstanding under the pre-IPO plan - Under the Pre-IPO Share Option Scheme, a total of **2,848,400 share options** were granted to 37 eligible participants on March 25, 2021, with an exercise price of HK$0.85 per share[323][324] - The Post-IPO Share Option Scheme was adopted on March 25, 2021, with a 10-year validity; **no options have been granted** under this scheme as of the reporting date[369][372] [Share Award Scheme](index=61&type=section&id=Share%20Award%20Scheme) A share award scheme was adopted to incentivize employees, with awards vesting in three tranches linked to the company's listing anniversary - The Share Award Scheme was adopted on **March 25, 2021**, and is valid for 10 years[376] - Awarded shares vest in three tranches: **30% on the listing date** (October 7, 2021), 30% on the first anniversary of listing, and 40% on the second anniversary of listing[378] [Use of Proceeds from Initial Public Offering](index=67&type=section&id=USE%20OF%20PROCEEDS%20FROM%20INITIAL%20PUBLIC%20OFFERING) Net IPO proceeds of HK$1.051 billion are primarily allocated for network expansion, with HK$17.9 million utilized as of the reporting date | Intended Use | Net Proceeds Allocated (HK$ million) | Net Proceeds Utilized (HK$ million) | Unutilized Net Proceeds (HK$ million) | | :--- | :--- | :--- | :--- | | **Expansion of restaurant network** | 603.3 | 14.8 | 588.5 | | **Expansion and establishment of central kitchens** | 98.8 | 0 | 98.8 | | **Renovation of restaurants and upgrading of equipment** | 110.4 | 3.1 | 107.3 | | **Upgrading systems and technology infrastructure** | 53.6 | 0 | 53.6 | | **International brand building** | 82.0 | 0 | 82.0 | | **General corporate purposes and working capital** | 102.9 | 0 | 102.9 | | **Total** | **1,051.0** | **17.9** | **1,033.1** |