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Royal Catering to Open Hong Kong's First Du Hsiao Yueh Restaurant This Month

- Royal Catering plans to move from HKEx Growth Enterprise Market to the Main Board over the next 3-5 years

HONG KONG, June 9, 2017 /PRNewswire/ -- Royal Catering Group Holdings Company Limited ("Royal Catering") (HKEx: 8300) previously announced that its wholly-owned subsidiary Alliance Catering Company Limited signed a deal to buy a 60 percent stake in Du Hsiao Yueh (Hong Kong) Company Limited for a consideration of HK$5.4 million. Royal Catering chairman and CEO Wong Man Wai disclosed that Hong Kong's first Du Hsiao Yueh restaurant will open by the end of this month at LCX, a shopping, food and entertainment emporium located at Ocean Terminal in Tsim Sha Tsui. Mr. Wong said, "Founded in 1895, long-established Du Hsiao Yueh has been operating for 122 years and is now one of the best-known brands in Taiwan."

He added, "Every time I visit Taiwan, I go to a Du Hsiao Yueh restaurant for some of my favorites, Dan Tzai Noodles and Rice with Minced Meat. I have always wanted to bring the Du Hsiao Yueh brand to Hong Kong with the aim of giving Hongkongers a chance to enjoy the delicacies offered by Du Hsiao Yueh without needing to fly to Taiwan."

Focusing on the development of Du Hsiao Yueh in the short term

Hong Kong's first Du Hsiao Yueh restaurant, on schedule to be opened by the end of this month, is located in LCX, at Ocean Terminal, Tsim Sha Tsui. The decor of the 2,000-square-foot restaurant will embody the history of the brand by incorporating elements derived from Taiwanese-style vintage buildings. According to Mr. Wong, Royal Catering will focus on the development of the brand as part of its short-term plan. He said, "It is indeed a challenge as Du Hsiao Yueh is a household name in Taiwan. It is the first time that a Taiwanese brand being managed by the fourth generation of a family-owned firm will open at a location in Hong Kong, so we must all work to ensure its success."

In addition to the restaurant's first Hong Kong-based outlet in Tsim Sha Tsui, Mr. Wong also plans to open Du Hsiao Yueh restaurants in other leading shopping malls. Separately, Royal Catering may open a Du Hsiao Yueh restaurant at Hong Kong International Airport where Royal Catering is now managing several restaurants, allowing more travelers and Hongkongers to have an opportunity to enjoy the restaurant's unique offerings.

Planning to move from HKEx Growth Enterprise Market to the Main Board over the next three to five years  

Royal Catering began to trade on the HKEx Growth Enterprise Market less than one year ago. Mr. Wong said he looks forward to the company moving to the Main Board in due course as that is a goal that the company is judiciously working on. He also indicated that Royal Catering plans to trade on the Main Board over the next three to five years, subject to possible changes in the economic environment.

He noted that for Hong Kong's restaurant sector, we can expect the tough times to continue through the first half of this year, while an improvement is expected in the second half. He said, "As Hong Kong prepares to celebrate the 20th anniversary of its handover from Britain to China, the city expects to welcome more visitors from mainland China, and this should benefit the city's many restaurants. The group plans to roll out special packages at its restaurants to attract more diners, especially visitors from the mainland."

The right people and the right location play a key role

Royal Catering's Taiwan Beef Noodle brand has been operating for almost 25 years in Hong Kong. Mr. Wong said he knows from experience that the competition in the restaurant sector will continue to increase. He explained, "The growth of the restaurant trade depends on people, rather than machines. However, the market is in urgent need of skilled people and many members of today's youth generation have no interest in working for a restaurant. Furthermore, the cost to lease commercial space continues to stay at a high level, making it more difficult to find just the right location for opening a restaurant. I believe that the right people and the right location play a more important role in the long-term growth of a restaurant than beating rivals."

Mr. Wong indicated that in addition to the first Du Hsiao Yueh restaurant to be opened later this month, the company aims to open at one or two more locations within this year. He said, "The current business environment requires us to expand at a moderate pace. We aim to be profitable and in the position of paying a dividend to our shareholders at each outlet we open."

About Royal Catering Group Holdings Company Limited (HKEx: 8300)

Royal Catering Group Holdings Company Limited ("Royal Catering", HKEx: 8300) is a food and beverage group in Hong Kong operating casual dining restaurants under a portfolio of brands, including Taiwan Beef Noodle, Chinese Kitchen, Macao Harbour, Nosh Cafe & Bar and Coffee Express.

Royal Catering Group (Holdings) Company Limited

Address:
Room 1207, 12th Floor
Wing On Kowloon Centre
No. 345 Nathan Road
Kowloon, Hong Kong
Tel: +852-2388-9423
Website: www.hkrcg.com

Source: Royal Catering Group Holdings Co Ltd
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