Hong Kong–based restaurant chain Cafe de Coral Holdings envisages a rapid expansion in the Guangdong-Hong Kong-Macao Greater Bay Area after its annual report on Tuesday revealed a near quintuple increase in profit.
As a result of financial subsidies from the Hong Kong and central governments, the company’s profit grew to HK$359 million (US$46.25 million) from HK$73.6 million for the financial year ending on March 31. Company revenue slumped to HK$6.71 billion from HK$7.96 billion due to restrictions imposed during COVID-19.
The listed fast-food chain decided to open 11 new quick-service restaurants in Hong Kong and 17 fast food stores in South China
The company received government financial subsidies amounting to HK$638.9 million in this financial year, including subsidies of HK$486.8 million under the Employment Support Scheme and HK$136 million under the Anti-epidemic Fund of the Hong Kong government.
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The profit of the listed restaurant’s mainland business segment increased 93.3 percent to HK$149.4 million, which contributed to the bulk of the listed company’s overall profit.
Though difficulties were reported in the previous year’s results in Hong Kong, the company performed well in the Greater Bay Area. Its fast food business in South China recorded a 9.3 percent increase to 1 billion yuan (US$156.23 million), and revenue from the Chinese mainland grew 10.1 percent to 1.2 billion yuan, which was attributed to the economic recovery in the mainland.
The listed fast-food chain decided to open 11 new quick-service restaurants in Hong Kong and 17 fast food stores in South China because of the good performance.
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As at March 31, the company has 121 chain restaurants in the Chinese mainland and 352 in Hong Kong. The restaurant chain said it intends to penetrate residential areas in mainland tier 1 cities and expand its presence in tier 2 and tier 3 cities.