Investor Relations

SINGAPORE, September 30 - Tung Lok Restaurants 2000 Ltd is considering overseas expansion and is planning to open new restaurants in China and Indonesia to add to its current network of 21 restaurants in Singapore, Managing Director Andrew Tjioe said on Monday.

The Singapore Exchange (SGX-SESDAQ) listed company said high operating costs, the economic slowdown, combined with the difficulty in finding good service staff, are among the reasons why Tung Lok may limit future expansion in Singapore.

The Company announced via the SGX's Masnet that it is considering opening new restaurants in China and Indonesia as part of its corporate strategy on regionalisation. The announcement was made in response to an article in a local newspaper, The New Paper, on September 28 (Saturday) which incorrectly stated that Tung Lok may shut down its operations and leave Singapore.

The New Paper on Monday apologised to Tung Lok and issued a clarification that Mr Tjioe had meant the company may not open new restaurants locally but would expand overseas.

Commenting on the newspaper report, Mr Tjioe said: "Tung Lok is committed to Singapore. This is where we started over two decades ago. All our operations are here. We are stayers and not quitters. Even if we expand in the region, Singapore will always be our base."

Even if Tung Lok does not open new restaurants in Singapore, all its outlets here are constantly undergoing renewal. "Innovation is part and parcel of the Tung Lok culture. We have helped to shape the food and beverage industry in Singapore; our chefs have won numerous awards for culinary excellence. This spirit will continue for a long time to come," he added.

Mr Tjioe revealed that he and his senior managers have visited potential locations in Beijing, Shanghai and Jakarta in considering overseas expansion. Business groups from other countries have also approached Tung Lok to consider starting operations there.

"We have to examine each proposal carefully. We are considering various possibilities in our expansion strategy - franchising, management only and joint or whole ownership," he added.

"We have about 1,000 staff on our payroll in Singapore. But it is getting more and more difficult to find good service staff here. Good chefs and managers are also being enticed to work overseas in more senior positions or as expatriates. The growth of the food and beverage industry in Singapore is being limited because of this," Mr Tjioe said.

Company Background

Listed on the SGX-SESDAQ on March 2001, Tung Lok currently operates 21 restaurants in Singapore. Founded in 1980, Tung Lok operates a mixed portfolio of high-end and mid-range restaurants. Its restaurants cater to the discerning diner as well as to patrons who find value in its mid-range outlets such as Lao Beijing, House of Mao Hunan Hot Pot and TeaHouse at China Square. For the six months ended June 30, 2002, the Group recorded a turnover of $33.34 million, up 16.9% from the same period a year ago. Information on the Group's restaurants can be found in www.tunglok.com.