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1. Internal Transfer Of The Charming Garden Restaurant Business To Charming Garden (Asia-Pacific) Pte Ltd ("CGAP") 2. Investment By Third Party Into CGAP 3. Proposed Investments In The People's Republic Of China ("PRC")

BackFeb 20, 2004

The Board of Directors of Tung Lok Restaurants (2000) Ltd (the "Company") wishes to announce that:-

1. Internal transfer of the Charming Garden Restaurant business to Charming Garden (Asia-Pacific) Pte Ltd ("CGAP")

      A wholly owned subsidiary of the Company, Tung Lok Millennium Pte Ltd ("TLM"), has today entered into a sale and purchase of business agreement to transfer the business of Charming Garden Restaurant (the "Business") to CGAP, a wholly-owned subsidiary of TLM.

      The consideration for the transfer of Business is S$900,000 to be satisfied by an issue of 629,998 ordinary shares of S$1.00 each in CGAP to TLM credited as fully paid-up and a cash payment of S$270,002.00 to TLM. The consideration was arrived at based on negotiations between TLM and the third party investor (details set out in paragraph 2 below) with reference to a business valuation conducted by Robert Khan & Co Pte Ltd. Transfer of the Business is deemed to have taken effect on 1 January 2004.

      TLM has granted to CGAP a royalty free non-exclusive license to use the name "Charming Garden" to facilitate the operation of the Business by CGAP.

2. Investment by third party into CGAP

      Further, TLM has today also entered into a shareholders' agreement with a third party investor, Mr Meng Kai, the owner of the Xiang E Flavour Catering Trade Group Co Ltd of the PRC ("MK"). MK has paid an aggregate subscription price of S$270,000 for 270,000 ordinary shares, constituting 30% of the shareholding of CGAP. MK has also been appointed as a director and chairman of the board of CGAP. The remaining 70% of shareholding in CGAP is held by TLM.

      The purpose of this joint venture is to introduce the preparation of Hunan cuisine in the manner as practised by the Hunan chefs in the PRC to Charming Garden Restaurant so as to offer its patrons authentic Hunan cuisine. In this regard, the Chinese Investor shall provide the expertise, experience and knowledge in the preparation of Hunan cuisine and operation of restaurants offering such cuisine. This shall include providing appropriate chefs experienced in preparing Hunan cuisine and training chefs in such preparation. Operation and management of the Business shall be provided by TLM.

3. Proposed investments in the People's Republic of China ("PRC")

      The Company has jointly invested a total paid up capital of S$1.2 million in Tung Lok (China) Holdings Pte Ltd.("TLC").The Company holds 840,000 ordinary shares of S$1.00 each in Tung Lok (China) Holdings Pte Ltd ("TLC"), constituting 70% of the shareholding of TLC. The $840,0000 is financed by internal resources of the Company. The remaining 30 % of shareholding in TLC is held by Messrs Tay Kwang Thiam ("TKT"), Goh Cheng Liang ("GCL"), Sim Seng Jin (SSJ) and Sim Seng Kiang (SSK).

      TKT, GCL, SSJ and SSK are existing shareholders of the Company with GCL being a substantial shareholder.

      The above transactions are not expected to have any material impact on the net tangible assets per share or earnings per share of the Company for the financial year ended 31 December 2003, assuming that the transactions had been effected at the end of the financial year ended 31 December 2003.

      TL China is in the midst of discussions with third parties including MK with a view to investing in the restaurant business in the PRC. While details cannot be confirmed at this time, the following restaurant concepts are being envisaged:

      (i)
      A restaurant in Chengdu, the capital of Sichuan province, located in a new tourist area in the city, this proposed outlet will have a dining hall capacity of an estimated 150 persons and 20 private dining rooms;
      (ii)
      A restaurant in Beijing to be modeled after the Company's My Humble House Restaurant in The Esplanade in Singapore. To be located at Oriental Plaza, near Tiananmen Square in Beijing, this proposed outlet will have an estimated 250-seats.


      Further details will be announced in due course.

Except as disclosed above, none of the directors and so far as the directors are aware, none of the controlling shareholders or substantial shareholders of the Company has any interest, direct or indirect, in the above transactions.