Revenue dip, but profit for Tsui Wah Holdings
Despite a dip in revenue, restaurant group Tsui Wah Holdings managed to grow its first-half profit, according to its interim results.
Profit for the six months to the end of September grew 13.4 per cent year on year to about HK$5.7 million (US$729,770), mainly attributed to lower income tax and running expenses.
Revenue fell 2.9 per cent to about $904.8 million, mainly because of restaurant closures as well as sluggish domestic market and “fierce” competition in Mainland China.
Gross profit, was about HK$648.7 million, down about 2.2 per cent, while the gross profit margin was about 71.9 per cent (71.2 per cent a year earlier).
Chairman/executive director Lee Yuen Hong says the group is steadily expanding its restaurant network.
At the end of September, the group had 31 restaurants in Hong Kong, 31 in Mainland China and three in Macau under the Tsui Wah brand. The Macau restaurants are run under a JV arrangement.
Two restaurants were opened on the mainland during the half-year, namely Shanghai Dingxiang and Shanghai Raffles City Changning.
In addition, the group has continued to expand its Tsui Wah Delivery service and has further strengthened its centralised procurement and logistics management capabilities. Through its Supreme Catering business, the group is also offering on-site catering services.
As part of the 50th anniversary celebrations for Tsui Wah, the group sponsored a Cantonese drama series jointly produced by Television Broadcast and Tencent Penguin Pictures. The group also invited songwriter/actor Louis Cheung to be its brand ambassador.