Taste • Gourmet Group announces 2018/19 annual results

Strong revenue and net profit growth attributable to the significant increase in the number of restaurants and customers


Results Highlights:

  • Recorded a strong revenue growth of
    43.0% to nearly HK$307.71 million
  • Profit attributable to owners of the
    Company accelerated significantly by 50.9% to HK$27.25 million
  • Total number of restaurants increased by
    46.7% to 22 as at 31 March 2019
  • Four new restaurants opened in April and
    May 2019
  • Number of customers grew strongly by
    46.3% to over 2.1 million
  • Proposed a final dividend of HK$0.015 (2017:
    HK$0.022) per share, together with the interim dividend of HK$0.015 per share,
    the total dividend for the Year reached HK$0.030 cents per share
  • Dividend payout ratio reached 42.6%


HONG KONG, CHINA - Media OutReach - 31 May 2019 -
Group Limited
("TasteGourmet Group" or the "Company", together with
its subsidiaries, the "Group"; GEM stock code: 8371) is pleased to announce its
annual results for the year ended 31 March 2019 (the "Year").


For the year ended 31
March 2019, the Group recorded a revenue of approximately HK$307.71 million,
representing a significant increase of 43.0% as compared with the figure in the
last year. The Group's profit attributable to owners of the Company surged
approximately 50.9% to HK$27.25 million. Due to the overwhelming results of the
Year, the board of the directors recommended a final dividend of HK$0.015
(2017: HK$0.022) per share, together with the interim dividend of HK$0.015 per
share, the total dividend for the Year reached HK$0.030 per share.


Commenting the annual
results for the Year, Mr. Wong Ngai
Shan, Chairman and Executive Director of Taste
Gourmet Group,
said, "In the past year, despite the rising costs of raw materials, labor, rent
and utility services, which have adversely affected the profitability of the
catering industry, the Group has steadily improved its business through
adopting comprehensive measures of increasing revenue and reducing expenditure,
thus becoming more profitable than our peers."


As at 31 March 2019,
the Company owns 20 self-operated restaurants in Hong Kong, while the Group
welcomed over 2.1 million customers during the Year, representing a significant
increase of 46.3% when compared to last year. During the Year, the Group opened
and acquired seven new restaurants, namely Nabe Urawa Restaurant at the Uptown
Plaza in Tai Po, a dessert restaurant Sweetology, Dab-Pa Jing Chuan Hu at the
Metroplaza in Kwai Fong, the first Japanese ramen restaurant under our own
brand, Rakuraku Ramen in Lee Tung Avenue in Wanchai, and three Parkview
restaurants from the A1 Bakery situated at the New Town Plaza in Shatin, the
Metroplaza in Kwai Fong and PopWalk in Tsang Kwan O (The Parkview restaurant
situated at the PopWalk was rebranded as Xiang Hui in April 2019).

The Fiat Caffé was
reopened in October 2018 as a modern Vietnamese restaurant Madam Saigon, which
together with The Pho are both 50% owned by the Group and 50% owned by the
Lubuds Food and Beverage Group. In April 2019, the Group opened a new Nabe
Urawa restaurant at the Park Central in Tseung Kwan O, a new Xiang Hui
restaurant at the PopWalk in Tseung Kwan O and two new Rakuraku Ramen restaurants
at the MegaBox in Kowloon Bay and the Kornhill Plaza in Taikoo.


During the Year, the
Group entered into a licensing agreement from Japan to license the rights to
the exclusive and unlimited usage for all countries outside of Japan of a
Japanese ramen brand "
???" or "Takano". The first "???" ramen restaurant
will open at the K11 MUSEA, Victoria Dockside in Tsim Sha Tsui during the third
quarter of 2019.  In addition to the
Takano Ramen restaurant, the Group has also entered into two new lease
agreements to open a Nabe Urawa restaurant at the Nina Mall II in Tsuen Wan and
a Dab-pa Chinese restaurant at the Citygate in Tung Chung.  Both new restaurants are expected to open
during the third quarter of 2019.


Taking about the
future prospects, Mr. Wong concluded,
"The food and beverage sector in Hong Kong, although competitive, has ample
opportunities for the better operators. We now operate 26 outlets as compared
to 15 outlets as at 31 March 2018, representing a 73.3% increase. In addition,
we have committed three new leases so far and we will continue to discuss with
shopping mall landlords for new potential locations. Supporting by our strong
local management team, the Company can accurately identify consumer tastes,
fully seize the opportunities of development and bring continued success."


He added, "Believing
that excellent customer service is an essential element of a 'happy dining
experience, we developed a series of measures to motivate our staff to provide
better service. As a result, Dab-Pa Cuisine restaurant attained the 'Quality
Service Award 2018' for the second time after 2016 from the MTR. We believe
value-for-money is the key to our success, customers need to feel that they are
getting their money's worth of quality food as well as high standard of
services, but we will not rest on our laurels and will continue to improve our
food quality and services. We will also continue to seize every opportunity and
strive to maximize the interests of our shareholders and the Company."

About Taste•Gourmet Group

Taste?Gourmet Group is a
restaurant group in Hong Kong which owns and operates 26 self-operated and
joint venture restaurants in Hong Kong currently. Since the opening of the
first restaurant in 2007, the Group has expanded into a multi-brand business,
offering a variety of cuisines, mainly Vietnamese, Japanese, Chinese and
Western cuisines. Currently we operate our restaurants under various brands,
comprising self-owned brands such as La'taste Vietnamese Cuisine, Dab-pa Cuisine
Restaurant, Urawa Japanese Restaurant, Nabe Urawa, Say Cheese, Rakuraku Ramen
Restaurant; acquired brands such as Parkview Restaurant and a dessert
restaurant, Sweetology; and joint venture brands such as Madam Saigon, The Pho
and Xiang Hui. A majority of these restaurants are strategically located in
first tier and/or premium shopping malls or on street levels in prime areas and
central business district, covering Hong Kong Island, Kowloon and New

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