HONG KONG, May 13, 2015 /PRNewswire/ -- Gayety Holdings Limited ("Gayety" or the "Group") (Stock Code: 8179) is pleased to announce that it has entered into a memorandum of understanding with the legal owner of Guangzhou Doreme Catering Management Limited ("Doreme") regarding the disposal of 10% of the equity interests in Lucky Dessert (China) Holdings Limited ("Lucky Dessert (BVI)"). The proposed consideration for the possible disposal shall be HK$50,000,000. Upon the implementation of the memorandum, Doreme shall set up counters in its chained restaurants to sell products under the trademark of "Lucky Dessert." The introduction of Doreme as a strategic shareholder of Lucky Dessert will immediately expand Lucky Dessert's sales network in Mainland China, thus speeding up the business development.
Doreme is currently operating about 85 chained restaurants under the trade name of Do & Me in the Mainland China through direct operations, joint operations and franchises. The restaurants are located in various provinces in the Mainland China , including Anhui, Guangdong, Hubei, Hunan, Inner Mongolia, and Zhejiang. The Group believes that, leveraging on the numerous business spots and expanding sales network, the cooperation is going to speed up the development of dessert business in the Mainland China, further expanding Lucky Dessert's business scope in the country.
Mr. Wong Kwan Mo, Chairman of Gayety, said, "The Group has been providing quality, innovative, and distinguishing Chinese cuisine experiences to our customers and already received positive feedback. Meanwhile, we are glad that investors express immense interest in our domestic dessert business in Mainland China, which shows investment community's confidence in our future development. To grasp the opportunities arising from the Mainland Chinese consumers' pursuit of the Hong Kong-style dessert, we will continuously expand the sales channels of Lucky Dessert and aim to become the leader of Mainland China's dessert industry."
Established in Hong Kong for over 15 years, Lucky Dessert is the pioneer of Hong Kong new style dessert and also a must-visit spot for many tourists. In line with its fast developing dessert business plan in Mainland China, the Group's wholly-owned subsidiary completed an acquisition and disposal agreement in April 2015 and, as a result, is interested in 49% of the issued share capital of Lucky Dessert (BVI). Under the trademark of "Lucky Dessert", Lucky Dessert (BVI) opens and operates dessert shops, either through sole investment or collaboration with other parties in Mainland China.
Upon the completion of the acquisition, the Group has expanded its market in Mainland China under the trademark of "Lucky Dessert," with the first outlet opening in Riverside 66 in Heping, Tianjin on 1st May 2015, which, in line with the Group's expectation, has achieved satisfactory results since its inception. Continuing to uphold the essence of Hong Kong-style dessert, the new outlet is going to spread the taste and innovation of Hong Kong-style dessert throughout Mainland China. As Tianjin is a major export city next to Beijing, it is believed that the outlet will be crucial to the brand development in Northern Mainland China. The second outlet in Tianjin is also under progress, expected to commence operations within the year.
Further with the development of the "Lucky Dessert" brand, the Group will expand its marketing channels further to aim at radial-development throughout Mainland China. "Lucky Dessert" is going to promote its brand in different phases and various areas. Beijing is going to be the next target, and the scope will expand to include regions such as Shanghai, Chengdu, Shenzhen, and Chongqing accordingly. The Group already set up a clear target to open more than 200 outlets in Mainland China in the next ten years to establish its presence as the leading local dessert brand.
Mr. Wong Kwan Mo concluded, "In addition to introducing 'Lucky Dessert' into the Mainland Chinese market, we will continue to pace up our development by diversifying our catering business portfolio to expand the market presence and cement our leadership of the industry. To reflect our determination of business diversification, the Group has proposed the renaming of the Company to 'Food Idea Holdings Limited' to emphasize the future business focus of the Group in developing catering business with new and creative ideas and fresh corporate image, thus creating more opportunities in future."
About Gayety Holdings Limited
Founded in 2006 and listed on the GEM Board of the Hong Kong Stock Exchange in 2011, Gayety (Stock Code: 8179) is a fast growing diversified chain restaurant group. The Group is principally engaged in the operation of a chain of Chinese restaurants in Hong Kong; productions, sales and distribution of food products to chain supermarkets in Hong Kong; investment in the listed securities; and dessert catering business in Mainland China. With a distinctive market positioning owning four brands, Gayety operates 11 restaurants under four brands to meet the customers' various requests. Red Seasons, Plentiful Delight Banquet and Red Royalty Banquet enjoy a good reputation in offering quality Chinese food at affordable prices as well as integrated wedding banquets and dining services to customers. Meanwhile, Home-made Cuisine mainly offers Cantonese home-made cuisine to lead a fashionable and healthy dining trend. The Group also strived to expand its dessert business development in the PRC market under the trademark of "Lucky Dessert." To reflect its determination of business diversification, the Group has proposed the renaming of the Company to 'Food Idea Holdings Limited' to emphasize the future business focus of the Group. Please visit www.gayety.com.hk and www.redseasons.com.hk for more information.
About Guangzhou Doreme Catering Management Limited
Doreme is a company established in Mainland China on 8 March 2001, principally engaged in the operation of a quick service restaurant chain in Mainland China. At present, Doreme is operating about 85 chained restaurants under the trade name of Do & Me in Mainland China through direct operations, joint operations and Franchise. These stores are located in various provinces of Mainland China, including Anhui, Guangdong, Hubei, Hunan, Inner Mongolia and Zhejiang. Doreme has maintained a reputation of delivering high quality food in speedy manner and at affordable prices. It offers an extensive range of Chinese and Western-style food that appeals to the Chinese taste buds, including baked pork chops, seafood rice, spaghetti bolognese, hamburgers, fried chicken, dim sum, Cantonese siu mei and various Chinese homemade soup and dishes.
About Lucky Dessert
Established in Hong Kong for over 15 years, "Lucky Dessert" is a renowned brand of Hong Kong dessert outlet. Its signature dishes, including "Durian Delight," "Mango Sago with Pomelo," "Banana Krisp," and "Lucky Chestnut," are well received from local customers, especially among the young generation, and are highly recommended and appreciated by both Mainland Chinese and foreign visitors. "Lucky Dessert" currently operates four outlets at Causeway Bay, Tsim Sha Tsui, Mong Kok and Sham Tseng, together with a centralised factory in Hong Kong.
