TJI Announces Unaudited Financial Data For Q1 FY2025

14 August 2024

14 February 2024 – Tam Jai International Co. Limited (“TJI” or the “Company”, and together with its subsidiaries, the “Group”; HKEX stock code: 2217), one of the leading and renowned restaurant groups in Hong Kong, disclosed its unaudited financial information for the three months ended 30 June 2024 (“Period”) in its latest HKEX announcement published today.

Performance Review
During the Period, the Group’s revenue remained at approximately HK$685 million, compared to approximately HK$687 million generated in the first quarter of the financial year ended 31 March 2024 (‘‘FY2024’’). The Group’s core market in Hong Kong remained challenging, with continuously growing number of outbound travellers and weak consumer sentiment. The market has also become highly competitive with generous discounts offered in general. During the Period, apart from launching more innovative products and opening new stores, the Group also provided more value deals and special meal sets to drive traffic and customer spending. This, together with enhanced promotions with delivery platforms, successfully sustained revenue performance, though operating profit was impacted as a result.

Outside of Hong Kong, the results have been mixed. The Group’s business in Japan has continued its notable progress in terms of revenue growth and operational efficiency. In contrast, the revenue performance in Singapore remained stagnant. In Mainland China, the Group’s performance was impacted by heavy competition and an uncertain economic environment.

Taking into account the higher corporate expenses incurred to cope with the Group’s expansion plan and franchising initiatives, profit after tax for the Period for the Group decreased by approximately HK$21 million or 61.8% year-on-year, but increased by approximately 18.2% when comparing to the last quarter of FY2024.

Looking ahead, the Group will continue its marketing and promotional efforts in Hong Kong with strengthened strategic focus on its own customer relationship management (CRM) platform to boost repeated purchases while protecting profit margin. At the same time, the Group will continue to implement various cost saving initiatives, including negotiating for better commercial terms with the landlords and suppliers. The Group will also enhance manpower efficiency through streamlining workflows and digitalisation to lower operating costs at stores.

The Group is also proactively working to expand its income sources and position the Group for further growth in Hong Kong. Capitalising on the growingly popular Japanese dining concept in the city, the Group piloted a new brand ‘‘Yakiniku Yamagyu’’, featuring Japanese beef rice, in April 2024 through a licensing arrangement with our parent company, Toridoll Japan. The response to this new concept brand store has been overwhelmingly positive so far. Furthermore, the Group plans to open new stores for another franchised brand, ‘‘Marugame Seimen’’, by the end of the financial year ending 31 March 2025. These new brand introductions are expected to diversify the Group’s offerings and reach out to a new customer base of Japanese cuisine patrons in Hong Kong.

The Group’s franchise business is also gaining strong momentum and represents an exciting avenue for future expansion. The Group’s first franchise store in Australia is underway and will be opened by the end of 2024. The negotiations with other potential franchise partners in the Southeast Asian countries are also progressing well. These franchise initiatives will allow the Group to leverage its operational expertise and established brand recognition to drive growth beyond its core Hong Kong market.

For more details, please refer to the HKEX announcement:
https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0814/2024081400192.pdf