Dish­ing it up

China Daily (Canada) - - HONG KONG - By SO­PHIE HE in Hong Kong so­phiehe@chi­nadai­lyhk.com

Tsui Wah Hold­ings Ltd said in a state­ment that for the year ended March 31, 2015, the com­pany opened 10 new restau­rants in to­tal across Hong Kong and the main­land, as com­pared to nine in the year ended March 31, 2014.

The four new restau­rants it opened in Hong Kong in­clude branches in Tuen Mun, Cause­way Bay and Tsim Sha Tsui.

On the main­land, the com­pany has opened four new restau­rants in Shang­hai (Hongkou dis­trict and Pudong New Area) and one each in Jiang­han dis­trict of Wuhan and Nan­shan dis­trict of Shen­zhen.

Lee Yuen-hong, chair­man of Tsui Wah Hold­ings, told China Daily that his tar­get is to op­er­ate over 80 restau­rants be­fore 2017.

Aside from Hong Kong, Tsui Wah plans to open more restau­rants in south­ern and eastern main­land prov­inces.

Ac­cord­ing to lo­cal news re­ports, Tsui Wah plans to in­vest around HK$100 mil­lion to open 15 new restau­rants in Hong Kong and on the main­land this year.

For the year ended March 31, 2015, the com­pany recorded a profit at­trib­ut­able to own­ers of the com­pany of HK$157.41 mil­lion, an in­crease of 0.9 per­cent from the HK$156 mil­lion it recorded in the same pe­riod a year ago.

Com­pany rev­enue in­creased by 22.2 per­cent from HK$1.47 bil­lion a year ago to HK$1.8 bil­lion.

The in­crease was mainly at­trib­ut­able to the strong growth in res­tau­rant sales due to the qual­ity food of­fered, the open­ing of new branches and in­tro­duc­tion of new items to the com­pany menu from time to time, Tsui Wah said in a state­ment.

Rev­enue gen­er­ated dur­ing the pe­riod in Hong Kong was HK$1.2 bil­lion, a rise of 14.6 per­cent from a year ago, while rev­enue gen­er­ated on the main­land was HK$ 522.2 mil­lion, rep­re­sent­ing year-on-year growth of 46.9 per­cent.

The com­pany’s staff costs in­creased by 22.3 per­cent from a year ago to HK$483.3 mil­lion, the in­crease at­trib­ut­able to the gen­eral in­crease in la­bor costs in the food and cater­ing sec­tor in re­cent years and staff re­cruit­ment for the newly opened restau­rants.

As of now, the Tsui Wah group em­ploys about 4,000 peo­ple, ac­cord­ing to Lee.

For the year ended March 31, 2015, the com­pany’s prop­erty rentals and re­lated ex­penses rose to HK$278.5 mil­lion, an in­crease of HK$68.7 mil­lion, or 32.7 per­cent, from HK$209.8 mil­lion the pre­vi­ous fi­nan­cial year.

The uptick was pri­mar­ily due to new res­tau­rant premises leased dur­ing the year, and in­crease in rent dur­ing lease re­newal.

In or­der to re­al­ize bet­ter con­trol of prop­erty rentals and re­lated ex­penses, the com­pany has en­tered into long- term rental agree­ments with its land­lords so as to main­tain rentals at a rea­son­able level.

PARKER ZHENG / CHINA DAILY

Lee Yuen-hong says the Tsui Wah Res­tau­rant chain tasted suc­cess with its very first branch in Shang­hai be­cause the com­pany put a lot of thought into ways to draw main­land din­ers in­stead of blindly repli­cat­ing the Hong Kong model.

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