HONG KONG, Aug 31, 2021 – (ACN Newswire) – China's major furniture product manufacturer Huisen Household International Group Ltd. ("Huisen Household" or "the Group"; stock code: 2127.HK) announced unaudited interim results for the period ended 30 June 2021 ("the Reporting Period") today.

During the Reporting Period, the Group's revenue recorded a year-on-year increase of approximately 47.3% to approximately RMB2.4 billion. Gross profit was approximately RMB630 million, representing an increase of 72.1% as compared with the same period last year. The profit during the period was approximately RMB421 million, representing an increase of 75.9% as compared to the corresponding period of 2020. Earnings per share was RMB0.14. This was mainly due to the fact that the coronavirus disease 2019 ("COVID-19") pandemic in Mainland China was basically came under control during the Reporting Period, and various industries, including the furniture manufacturing industry, was fully recovered.

Mr. Zengming, chairman and executive director, said: "The first half of 2021 was a period of accelerated reform for the furniture industry. Despite the unstable development of COVID-19 pandemic overseas, the pandemic came under control gradually after the launch of vaccination programme around the globe, especially in China and other European and American regions. Encouraged by the recovery of economy in various industries and the improvement of the consumption sentiment, many countries and regions recorded satisfactory economic growth in the first half of 2021, boosting the demand for products from Mainland China."

According to the statistics from General Administration of Customs of the PRC, in the first half of 2021, the total trading import and export value of goods in China amounted to approximately RMB18.1 trillion, representing a year-on-year increase of approximately 27.1%, while the export value of furniture and parts amounted to approximately RMB226.4 billion in the first half of the year, representing a year-on-year increase of approximately 44.5%. The overall profits for furniture enterprises in China had increased during the first half of 2021.

Panel-type Furniture
The Group's panel-type furniture products include television cabinets, bookshelves, shelves, desks and coffee tables. Panel-type furniture has always been the core revenue driver of the Group. During the Reporting Period, vigorous demand sustained in overseas markets. Leveraging on our expertise and experience in product design and development as well as our business relationship with major overseas retail chains and furniture traders, our revenue from panel-type furniture increased from RMB1.5 billion to RMB2.3 billion for the Reporting Period, representing an increase of approximately 50.5%.

Upholstered Furniture
The Group's upholstered furniture mainly includes sofas. During the Reporting Period, the demand for upholstered furniture has increased. The revenue from upholstered furniture recorded an increase of approximately 27.3% to RMB74.8 million. During the Reporting Period, some of the upholstered furniture had a relatively higher gross profit margin, resulting in an overall increase in the gross profit margin of the sales of upholstered furniture.

Others
Others include sports and recreational equipment. Sports and recreational equipment mainly includes table tennis tables and pool tables. During the Reporting Period, the revenue from others amounted to RMB69.9 million, representing a decrease of 3.1% from the corresponding period of 2020, mainly due to the suspension of the production of outdoor furniture. The gross profit margin of others increased from approximately 28.2% from the corresponding period of 2020 to 30.1% in the Reporting Period, mainly due to the increase in the average product selling prices of sports and recreational equipment.

In order to meet future market demand and increase production capacity, Huisen Smart Home Technology (Longnan) Co., Limited*, a subsidiary of the Company as the buyer, has entered into a contract for the grant of the land use rights of state-owned construction land* with Natural Resources Bureau of Longnan* as the seller, for the acquisition of the state-owned land use rights for a parcel of land with a total site area of approximately 233,736 square metres located in Trading Logistics Park, Longnan, Ganzhou, Jiangxi Province, the PRC for a consideration of RMB20,802,600. The land parcel is designated for the construction of new manufacturing factories specialized in the production of panel-type furniture and upholstered furniture.

Besides, the Company has entered into a strategic cooperation agreement with Jiangxi University of Science and Technology to further enhance the cooperation in relation to the R&D on smart furniture on 16 June 2021.

Looking to the second half of 2021, it is expected that furniture exports in the PRC will continue to boom with the normalisation of pandemic prevention and control as well as the enhanced demand for home life driven by the policy of staying home during the pandemic. Furthermore, under the backdrop of accelerated vaccinations around the globe, the economy in Europe and America have been recovering gradually, which will generate robust overseas demand to support the exports of the PRC. Nevertheless, facing the possible tightening of the quantitative easing policy by the US Federal Reserve and the potential risk in respect of the possible cooling down of the property market, we will stay highly alert, constantly expand into markets outside the United States and continue to strengthen our ODM capability, so as to stay calm and composed during market fluctuations.



Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 31, 2021 – (ACN Newswire) – Far East Horizon Limited ("Far East Horizon" or "the Group", Stock Code: 03360.HK), a leading financial services and industrial group in China, today announced its interim results for the six months ended 30 June 2021 (the "Review Period").

Financial Review

In the first half of 2021, against the backdrop of the continuous evolution of the COVID-19 on a global scale, as well as the more complex and severe external environment, the quality and efficiency of the proactive fiscal policy of China improved, the economy recovered in a remarkable fashion. In the face of the complex and difficult external environment, the Group adhered to its original aspiration and followed its development vision of "vigorously building excellent enterprises", performance remained stable and healthy. During the Review Period, the Group realized revenue of RMB16.18 billion, representing an increase of 21.91% year-on-year ("YoY"). Among which, the financial and advisory segment remained stable overall with a slight increase. The industrial operation segment continued to record substantial growth with the quality of assets continued to be further optimized. The profit attributable to holders of ordinary shares of the Company during the Review Period amounted to RMB2.57 billion, representing an increase of 25.16% YoY, basic earnings per share reached RMB0.64, together with the return on average equity (ROE) of 14.45%, demonstrating a steady growth momentum.

Financial Business Developed Steadily with Significant Growth in Industrial Operation

In terms of financial business, on the basis of nine industry sectors, the Group continued to focus on deepening its foothold in various regions and industries, enriched the operation means and consolidated and deepened the competitive advantages, thus revenue of RMB11.1billion, representing an increase of 14.98% YoY. On the basis of traditional financial leasing services, the Group continued to expand and enrich new business such as inclusive finance, commercial factoring, PPP investment, overseas financing, asset business and other new business directions, the interest income contribution from these new business directions amounted to RMB873 million, representing a YoY increase of 112.87%.

The Group adhered to the prudent strategies of risk control and asset management, the non-performing asset ratio recorded a slight decrease YoY to 1.10%, asset quality remained healthy and stable.

In terms of industrial operation, in response to national development strategies such as new urbanization and population aging, the Group's business sectors including Horizon Construction Development and Horizon Healthcare have undertook active planning and formed an industrial group with leading scale and social influence. Income derived from industrial operation amounted to RMB5.12billion, representing an increase of 41.34% YoY. In particular, Horizon Construction Development has become the largest comprehensive equipment operation service provider in the PRC, realized revenue of RMB2.43 billion and net profit of RMB230 million during the period, representing an increase of 75.85% and 55.65% YoY, respectively. Horizon Healthcare continues to focus on regions with weak medical resources, steadily promotes the "100 Counties Plan", and is committed to building a medical service network across the country with regional chains. Currently, the number of hospitals in which Horizon Healthcare had controlling interests was 29 and its number of available beds was more than 12,000. During the Period, Horizon Healthcare realized revenue of RMB1.99 billion and net profit of RMB110 million, representing an increase of 29.20% and 293.09% YoY, respectively.

In the first half of 2021, the economy in China continues to recover. However, the global pandemic continues to evolve and the external environment has become more complex and severe. Against this backdrop, the Group will remain true to the original aspiration and upgrade the business and management models, make unremitting efforts to seek high-quality and sustainable development in an environment full of uncertainty and instability in the future, and continuously increase value creation for all parties in society.

About Far East Horizon Limited

Far East Horizon Limited is one of China's leading innovative financial companies focusing on the Chinese fundamental industries and leveraging the business model of integrating finance and industry to serve enterprises of greatest vitality with the support of the fast-growing and enormous economy in China. Based on its operational philosophy of "finance + industry", Far East Horizon endeavours to realize its vision of "Integrating global resources and promoting China's industries" by making innovations in products and services to provide our customers with tailor-made integrated operations services. Over the past more than 10 years, the Group has been leading the development of the industry, and has been listed among the Fortune China 500 and Forbes Global 2000.

Over the past two decades, the Group has evolved from a single financial service company into an integrated service provider with a global vision centered on China so as to facilitate national economic and sustainable social development. With the creative integration of industrial services and financial capital and with unique advantages in the organization of resources and value added services, we provide integrated finance, investment, trade, advisory and engineering services in healthcare, cultural & tourism, engineering construction, machinery, chemical & medicine, electronic information, public consuming, transportation & logistics, urban public utility as well as other fundamental sectors.

The Group, headquartered in Hong Kong, has business operations centers in Shanghai and Tianjin, and has offices in major cities throughout China such as Beijing, Shenyang, Ji'nan, Zhengzhou, Wuhan, Chengdu, Chongqing, Changsha, Shenzhen,

Xi'an, Harbin, Xiamen, Kunming, Hefei, Nanning and Urumqi, forming a client service network that covers the national market. The Group has been successfully operating its multiple specialized business platforms in China and abroad in financial services, industrial investment, hospital investment and operations, equipment operation services, exquisite education, trade brokerage, management consulting, engineering services, etc.

The Company was officially listed on the Main Board of The Stock Exchange of Hong Kong Limited ("Stock Exchange") on 30 March 2011.


Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 30, 2021 – (ACN Newswire) – Newborn Town Inc. (9911.HK) released its 2021 Interim Financial Report on August 25, showing satisfactory business performance. In fact, Newborn Town has long been favored by the capital market, and experienced a large rise in share price of 15.8% on August 24.

Newborn Town, after shifting its focus to social business in 2020, has achieved strong results in its business operations and aggressive acquisition and expansion strategies, acquisition of MICO and layout of mid- and hard-core games, leading to Newborn Town's impressive outperformance in its stock price in the past two years.

It is not hard to understand why Newborn Town's stock price has increased sharply by 186% from HKD1.8 to HKD5.14 since the beginning of this year. It should be noted that Newborn Town has been leading the e-commerce and Internet sectors in the Hong Kong stock market, and therefore, is well-deserved as one of the best performing Hong Kong stocks this year.

Newborn Town grows in line with the law of the Internet industry

There is a law in the Internet industry which was proposed by Robert Metcalfe, the inventor of the Ethernet, and was named after him as Metcalfe's Law. According to Metcalfe's Law, the value of the network is proportional to the number of network users squared.

As shown in Newborn Town's latest Interim Financial Report, the number of overseas users remained on a stable and high rise while cumulative downloads of social apps reached 254 million through June 30 2021, with 17.41 million Monthly Active Users (MAU) on average during 1H2021, increasing by about 38% from 2H2020.

In response to the rapid growth in the number of users, Newborn Town recorded revenue of RMB1.04 billion and a net profit of RMB0.14 billion in the first half of the year, showing a year-on-year increase of nearly 6 times and nearly 40 times respectively.

In fact, in spite of Newborn Town's excellent financial performance, what investors in the Internet sector value most is not a company's short-term revenue and profit, but the sustainability of its user growth. This is because expansion of user groups of social products and diversified monetization methods will surely bring about rapid growth in operating revenue.

The rapid growth in Newborn Town's revenue not only benefits from the sharp increase in the number of users, but also from the constantly diversified social product portfolio and the improvement of its operational efficiency.

It is widely held that Newborn Town is an "upstart" standing out from Chinese Internet companies having established business operations in foreign markets. In fact, it is not. Newborn Town began to expand its business to foreign markets in 2013 and began to deploy its social business in 2015. Its audio and video social platforms such as MICO and YoHo having been downloaded more than 200 million times worldwide, with more than 18 million MAU on average in the second quarter of 2021.

The Gulf countries in the Middle East contribute a great deal to Newborn Town's revenue. For example:
– In Saudi Arabia, MICO and YoHo ranked 10th and 8th respectively among the top-grossing social apps in Google Play, and ranked 7th and 6th respectively among the top-grossing social apps in App Store.
– In the UAE, YoHo and MICO ranked 5th and 11th among the top-grossing social apps in Google Play, and MICO ranked 4th among the top-grossing social apps in App Store.

From statistics released by Sensor Tower, we know:
– Newborn Town's products rank among the top-grossing in social app rankings in many countries worldwide, which provides reliable evidence for the company's satisfactory performance data.
– Newborn Town's products are very popular in many countries worldwide, indicating that the product and operational strategies applied by the company work well.

If everything goes well, Newborn Town's next important strategy is to focus on social traffic, further develop mid- and hard-core games, increase user stickiness and monetization rate, make its business layout in the game market by using the "independent research + release + investment" strategy, place emphasis on quality products, and increase the monetization efficiency.

Underestimated Newborn Town, Neglected High Growth

Based on the user and market data above, although Newborn Town's stock price rose sharply by 15.58% on August 24, we believe that its closing price of RMB5.14 on August 25 is substantially undervalued by the capital market.

At market's close on August 25, Newborn Town's market capitalization reached HKD5.13 billion, equivalent to RMB4.26 billion. However, considering its expected annual revenue of about RMB2.1 billion, Newborn Town had a price-to-sales ratio of about 2.03x in the capital market.

Therefore, Newborn Town, a high-growth stock in the Internet sector, which has its revenue and net profit increasing by about 590% and 4000% year-on-year respectively and has the number of its half-year average MAU increasing by nearly 40%, has an extremely conservative valuation with a price-to-sales ratio of about 2x, as it may go for stocks in the banking and insurance sectors.

Look at Newborn Town's cash flow statement. According to its annual report 2020, Newborn Town had net cash inflow from its operating activities in 2020 totaling RMB300 million, net cash outflow from its investment activities in 2020 totaling RMB97 million, and annual net cashes in 2020 of over RMB200 million. According to its interim report in 2021, in the first half of this year, Newborn Town had net cash inflow from its operating activities totaling RMB160 million, net cash inflow from its investment activities totaling RMB23 million, and net cashes of over RMB180 million.

It seems inconsistent that a company with rapid growth in user groups and with sound cash flows should receive such a low valuation.

What's more, Newborn Town's potential high-growth factors have not yet been included in the foregoing. For example, since the second quarter of this year, Newborn Town has focused on Japanese, South Korean and other developed markets, and began to expand MICO and other products into those markets. In another example this year, Newborn Town attached great importance to mid- and hard-core games and is releasing independently developed quality games, and is making initial investments in several game businesses which may exert influence on its current profit but will greatly drive Newborn Town's future growth.

Value recognition may be late, but will never be absent. We believe the value of Newborn Town will be recognized at some point by the capital market, and so advise investors to take the long view.

Behind Newborn Town's expansion to foreign markets: the victory of Internet industry players in China

According to data from Sensor Tower, in 2020, the total revenue of Chinese social apps launched in global markets increased by 127% from the previous year and the total revenue of Chinese entertainment apps launched in global markets increased by 250% from the previous year. As shown in the data from Analysys International, MICO ranked top five Chinese going-global entertainment and social apps contributing at least USD100 million to corporate revenue in 2020.

Since the beginning of 2021, Chinese apps have enjoyed worldwide popularity, especially social and game apps. Keeping up with this historical trend, Newborn Town has launched dozens of social, games and other apps widely used worldwide, and based on the average MAU of its social apps, it has become the largest Chinese company to have expanded its social networking business to foreign markets.

We believe that the value of Newborn Town Inc. (9911.HK) will be re-evaluated by the capital market. With its current valuation and potential for future growth, both of which are quite attractive, Newborn Town presents a great opportunity in the context of market recovery.

Contact:
Weijie Xie, Peanutmedia
E: xieweijie@czgmcn.com
URL: www.Peanutmedia.com

Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 30, 2021 – (ACN Newswire) – Capital market reforms are presenting opportunities for Mainland China's securities industry, with companies that embrace fintech and digitalisation best positioned for long-term growth, according to KPMG analysis.

The 15th annual Mainland China Securities Survey analyses the industry based on the 2020 financial statements of 137 securities companies in mainland China. The report highlights the need for the securities industry to drive transformation by creating a customer-oriented ecosystem with other players in the capital market." Securities companies should focus on enhancing their wealth management capabilities by engaging in customer value mining, investment research and precision marketing. Meanwhile, achieving effective innovation by combining new technologies with actual business needs is one of the most important strategic issues facing industry participants. In addition, as China pursues a national strategic goal of hitting peak carbon dioxide emissions by 2030 and for carbon neutrality by 2060, environmental, social and governance (ESG) investment is rising up the corporate agenda and will present new opportunities for the securities industry.

Tony Cheung, Head of Financial Services, KPMG China, says: "Fintech and digitalisation will be the core drivers of growth for the next strategic cycle. Fintech is transforming securities companies' business models, business architecture and operating systems. Standardising data processing and exploiting data to convert it into an asset are becoming best practices for institutions embarking on digital transformation. For securities companies, the key is to use financial technologies that match their actual business needs to fully deliver growth from innovation. In the future, increased digital transformation in the securities industry will lead to greater integration of big data, financial technology and business scenarios."

According to the report, the securities industry realised operating income of RMB 446.8 billion and net profit of RMB154.9 billion in 2020, representing year-on-year increases of 24 percent and 30 percent, respectively. In terms of income composition, income from all segments achieved growth in 2020. Although the proportion of income accounted for by proprietary trading slipped by 6 percentage points to 33 percent, it remained the largest source of income for the securities industry. Driven by the strong performance of the secondary market, net income from the brokerage segment accounted for 29 percent, up 6 percentage points from 2019. The investment banking sector outperformed in 2020 and its income accounted for 15 percent of the total, representing growth of 2 percentage points in its share. There was no significant change in asset management income.

The report notes that as demand for financial services has increased due to the growing number of high-net-worth customers, financial institutions are investing in areas such as talent and financial technology to transform the wealth management sector. Bonn Liu, Head of Asset Management, KPMG ASPAC, says: "Brokers are actively transforming in order to stay competitive. Most have launched wealth management platforms to drive business development and established special committees or departments to pool resources together. Against this backdrop, securities companies are directing investment into new business lines to provide high-net-worth individuals with comprehensive one-stop financial services. Technology is proving to be an indispensable factor in these wealth management transformations and we are seeing that a wide spectrum of securities companies are making good progress with this."

As more international ESG investors increase their presence in China, ESG and responsible investing is becoming increasingly accepted. Thomas Chan, Head of Financial Services Assurance, KPMG China, says: "As China pursues its national strategic goal of hitting peak carbon dioxide emissions by 2030 and for carbon neutrality by 2060, the securities industry is paying increased attention to ESG development. Through green financing, green investment, green research and environmental rights trading, securities companies are providing financial support to sustainable enterprises that are active in clean energy, energy transition, energy saving and environmental protection. Fund management companies are showing their commitment to sustainable development in China by creating multi-layered ESG products, promoting green investments and most importantly, taking action themselves."

In 2021, China ushered in the 14th Five-Year Plan period. As one of the most important intermediaries in the capital market, securities companies are certain to benefit from the reforms in capital market policies. At the same time, the industry is expected to support the quality development of the capital market as a whole through its own quality development.

Abby Wang, Head of Asset Management, KPMG China, concludes: "As integral players in the financial markets, securities companies are embarking on an innovative and transformational journey that will be filled with both opportunities and challenges, and they have shown both vitality and creativity."

Going forward, the report recommends that industry participants should focus their efforts on the following three areas:

Professionalisation: The securities industry should maintain a professional mindset. Moreover, it should accelerate its transformation and stay competitive by enhancing its core capabilities in sponsoring, pricing and underwriting.

Steady development: Following a period of major changes that have rarely been seen over the last century, the industry as a whole should focus on stability and compliance, as well as strengthen internal control and risk management. These will help lay a solid foundation for sustainable development.

Intelligent innovation: The industry is embracing digital transformation, and intelligent middle platforms and ecosystem development are also high on companies' agendas. Securities companies should focus their innovation efforts on smart investment research, smart investment advisory and smart risk control.

About KPMG China
KPMG China is based in 28 offices across 25 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.

KPMG is a global network of professional independent member firms. We operate in 146 countries and territories and have about 227,000 people in FY2020 providing Audit, Tax and Advisory services. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its affiliates provide no client services.

In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, which it did on 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to the China market, together with an unwavering focus on quality, has been the foundation for the firm's accumulated industry experience, and is reflected in KPMG's appointment to provide multi-disciplinary services (including audit, tax and advisory) to some of China's most prestigious companies.

Media inquiries:
Nina Mehra
Direct: +852 2140 2824
Email: nina.mehra@kpmg.com


Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 27, 2021 – (ACN Newswire) – Tai Hing Group Holdings Limited ("Tai Hing Group" or the "Group"; stock code: 6811), a multi-brand casual dining restaurant group with roots in Hong Kong and a network of more than 220 restaurants in Hong Kong, Mainland China, Macau, and Taiwan, has just announced its interim results for the six months ended 30 June 2021 ("1H2021" or the "Review Period").

RESULTS HIGHLIGHTS
— Revenue increased by 16.4% to HK$1,532.7 million in 1H2021 (1H2020: HK$1,316.9 million) though both markets in Hong Kong and Mainland China still saw challenges in the first half of the year
Revenue from major operations in Hong Kong, Macau and Taiwan up 3.7% to HK$1,177.1 million
Mainland China delivered a strong revenue rebound to HK$355.6 million, increased by 96.0%
— Gross profit and gross profit margin improved to HK$1,100.9 million (1H2020: HK$928.4 million) and 71.8% (1H2020: 70.5%) respectively
— Profit for the period attributable to owners of the Company increased significantly by 297.9% to HK$33.4 million in 1H2021 (1H2020: HK$8.4 million)
— Recommended an interim dividend of HK2.50 cents per share (1H2020: HK1.30 cents per share), representing a dividend payout ratio of 75%
— "Men Wah Bing Teng" recorded a significant 63.4% revenue growth, while "Asam Chicken Rice" achieved an impressive revenue growth of 873.2%

During 1H2021, the Group was able to record satisfactory overall revenue with a year-on-year increase of 16.4% to reach HK$1,532.7 million (1H2020: HK$1,316.9 million). Gross profit and gross profit margin improved to HK$1,100.9 million (1H2020: HK$928.4 million) and 71.8% (1H2020: 70.5%) respectively. Profit attributable to owners of the Company increased 297.9% to HK$33.4 million (1H2020: HK$8.4 million). Basic earnings per share were HK3.34 cents (1H2020: HK0.84 cents). The outbreak of the COVID-19 was largely brought under control during the Review Period with market confidence and consumption sentiment gradually restored. Although the market still faced continued uncertainty, the Group has been well-equipped with extensive experience in coping with the negative impacts of the pandemic and thus delivered satisfactory financial results during the Review Period.

In addition, the Group's financial position remains positive, with sufficient cash and a healthy operating cash flow that has enabled it to fuel further growth. As at 30 June 2021, the Group had cash and cash equivalents of HK$518.5 million (as at 31 Dec 2020: HK$562.1 million).

To share the Group's achievements with Shareholders, the Board has declared the payment of an interim dividend of HK2.50 cents per share (1H2020: HK1.30 cents per share) for the six months ended 30 June 2021, representing a dividend payout ratio of 75%.

Business Review
As at 30 June 2021, the Group has a network of 223 restaurants spanning across Hong Kong, Mainland China, Macau, and Taiwan, under 14 casual dining brands.

High-growth "Men Wah Bing Teng" and "Asam Chicken Rice" continued to outperform the market
The "Men Wah Bing Teng" brand continued to serve as one of the major catalysts boosting the Group's sales. Having outperformed the market in 1H2021, the business achieved significant revenue growth of 63.4% to HK$345.0 million (1H2020: HK$211.2 million). It was also the Group's second-largest revenue contributor, accounting for 22.5% of the total revenue. In light of the brand's impressive sales revenue, the Group opened six new stores in both Hong Kong and Mainland China in 1H2021. In order to maintain its pace of growth, the Group will exert further efforts in the promotion of "Men Wah Bing Teng" in the Greater Bay Area as well as other potential markets.

With regard to the "Asam Chicken Rice' brand, it was another fast-growing revenue contributor, with impressive revenue growth of 873.2% to HK$57.4 million (1H2020: HK$5.9 million) and same-store sales growth reaching a high single-digit. During the Review Period, the Group opened five new 'Asam Chicken Rice" restaurants – hence a total of 11 branches in Hong Kong. By in large, the new branches received favourable market response during the Review Period, which led to a ninefold increase in revenue when compared with that of 1H2020. The profitability of "Asam Chicken Rice" was also more competitive owing primarily to less manpower required in the kitchen and more universal menu options.

As the Group's signature brand, "Tai Hing" is a well-recognised name in the mass market and continues to be a stable source of revenue. With the majority of its restaurants located in shopping malls or within well-populated communities, the "Tai Hing" brand was able to generate stable revenue totalling HK$734.3 million (1H2020: HK$692.6 million), which represents 48.0% of the Group's total revenue for the Review Period.

Having introduced several new brands to the market during the preceding financial year, the Group is delighted to note that "Daocheng", "Dumpling Station" and "Dimpot" all performed well during the Review Period. The Group will continue to nurture and enhance these new brands to ensure they reach their full potential.

Revenue from takeaway and delivery business accounted for approximately 28.0% of total revenue
In Hong Kong, the restrictions on catering businesses have been partially relaxed in recent months, with anti-epidemic measures proving effective in controlling the pandemic. While an improvement in consumption sentiment has been observed, the sector has yet seen a return to normal in terms of dine-in level during the Review Period. The Group has therefore continued to increase its efforts in boosting sales from takeaway and delivery services. As a result, revenue from such services to total revenue for the Group's restaurant operations was approximately 28.0% during 1H2021, with around 90% of the revenue contributed by the takeaway business, thus helping to offset the loss in dine-in revenue. In addition, the Group has further developed its line of ready-to-eat products in order to capitalise on the increasing dine-at-home trend.

Prospects
With its successful multi-brand strategy, the Group is well positioned to take advantage of opportunities under the current market conditions. It will therefore continue to negotiate with landlords for rent reductions and other concessions, in order to strengthen its control over rental expenses in the next three years. It will also steadily expand its restaurant network in a prudent and pragmatic manner. A principal focus of this expansion plan – covering both Mainland China and Hong Kong, will centre on the Group's high-growth brands "Men Wah Bing Teng" which have enjoyed remarkable success and generated high returns. In addition, with the Southeast Asian cuisine brand "Asam Chicken Rice" having received such a positive market response, the Group has plans to introduce it to the Mainland China market later this year. The Group will continue to develop and launch new brands in both Hong Kong and Mainland China based on market trends and customer preferences.

In order to support its rapid business growth in the future, the Group will further optimise the production capacity of its food factories in both Mainland China and Hong Kong as well as improve the quantity, variety and quality of output from such factories through "direct procurement and centralised production", and thus effectively bolster the Group's competitiveness and reduce food costs. It is worth noting that the food factory in Dongguan recorded a profit and achieved an increase in production capacity in 1H2021.

Regarding the HK$5,000 Consumption Voucher Scheme ("the Scheme") introduced by the Hong Kong SAR Government, the first batch of consumption vouchers was issued on 1st August 2021. The Group has been buoyed by the public response and plans to further capture opportunities by co-operating with various designated digital payment platforms and with corporations and shopping malls in Hong Kong to attract more consumer. In addition, the Group will also give full play to its multi-brand advantages and launch special promotions relating to the Scheme, so as to enhance the appeal of its restaurants among consumers and capitalise on the synergies generated among the brands. Given Tai Hing Group's positioning as a multi-brand casual dining restaurant group targeting the mass public, it is confident that the Scheme can help boost its sales performance in the second half of this year.

The Group has taken a conservative approach to allocating resources to marketing activities over the past year due to the lingering pandemic situation and poor market sentiment. However, with the pandemic being brought under control in Hong Kong, it will bolster its marketing efforts going forward in order to stimulate consumption at its restaurants and revitalise its brand image. This will begin with the launch of marketing campaigns for the "TeaWood" brand through online and offline cross-platform promotions. With respect to the Group's signature brand, "Tai Hing" and high-growth brand "Men Wah Bing Teng", a series of marketing activities will be launched in accordance with the strategic goal of further boosting consumption and increasing revenue.

In view of the global digitisation trend, the Group will continue to increase its level of systematic digitalisation and increase automation so as to improve the efficiency of its restaurant operations. The Group will also develop its first integrated digital mobile application with the aim of enhancing and improving its customer relationship management. By utilising big data applications, the Group will be able to both increase the effectiveness and flexibility in which marketing resources are allocated, leading ultimately to greater patronage and stronger loyalty from target customers. Furthermore, by leveraging the Group's solid customer base, it will be able to develop online sales and delivery platform as well as promote the cross-selling of its products. With this in mind, it will dedicate greater resources to the deployment of various advanced technology systems, upgrade its IT systems, and utilise big data applications, with the ultimate objective of supporting the expansion of the Group's restaurant network and facilitating sustainable development in the long run.

Mr. Chan Wing On, Chairman and Executive Director of Tai Hing, said, "Given the constantly evolving pandemic situation, we believe the pace and degree of the market's recovery will be very much dependent on how fully the virus subsides in the near future. The Group will continue to closely monitor market developments and will take proactive and appropriate steps to facilitate continuous business expansion in a prudent manner through its multi-brand strategy. With Tai Hing's solid business foundation underpinned by its well-developed multi-brand strategy, we remain confident in the Group's ability to withstand the current headwinds and move towards a more favourable trajectory along with the market recovery."

About Tai Hing Group Holdings Limited (stock code: 6811)
Tai Hing Group Holdings Limited ("Tai Hing Group") is a multi-brand casual dining restaurant group with roots in Hong Kong. In addition to its flagship "Tai Hing" brand, the Group has a growing brand portfolio comprisng of self-developed brands, and acquired and licensed brands, including "TeaWood", "Trusty Congee King", "Men Wah Bing Teng", "Pho Le", "Fisher & Farmer", "Rice Rule", "Hot Pot Couple", "King Fong Bing Teng", "Asam Chicken Rice", "Daocheng", "Dimpot" and "Dumpling Station". Currently, it has a network of more than 220 restaurants in Hong Kong, Mainland China, Macau and Taiwan.




Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com