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Half Year Financial Statement And Dividend Announcement For The Period Ended 30/06/2004

BackAug 05, 2004

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3),

HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the

corresponding period of the immediately preceding financial year.

Group


	30 June 2004	30 June 2003
	$'000	$'000
Revenue	31,981	29,279
Cost of sales	(9,356)	(8,471)
Gross profit	22,625	20,808
Other operating income	343	125
Staff costs	(9,014)	(8,805)
Administrative expenses	(2,045)	(1,643)
Other operating expenses	(10,432)	(10,159)
Profit from operations	1,477	326
Finance cost	(78)	(119)
Profit before income tax and share of loss in joint venture	1,399	207
Share of loss in joint venture	(788)	(454)
	611	(247)
Income tax expense	(262)	(100)
Profit/(loss) after income tax	349	(347)
Minority interest	14	60
Profit/(loss) for the period	363	(287)
Additional information for Income Statement above:
Other income including interest income	(290)	(125)
Interest on borrowings	78	119
Depreciation and amortisation	1,076	1,099
(Gain)/loss on disposal of property, plant and equipment	(53)	11
Loss on disposal of a subsidiary	-	23

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement

as at the end of the immediately preceding financial year.

	Group		Company
	30 June 04	31 Dec 03	30 June 04	31 Dec 03
	$'000	$'000	$'000	$'000
ASSETS

Current assets:
Cash and bank balances	8,551	4,137	2,705	23
Trade receivables	1,401	1,988	-	-
Other receivables and prepayments	477	450	231	386
Inventories	911	1,100	-	-
Total current assets	11,340	7,675	2,936	409


Non-current assets:
Long term deposits	1,436	1,354	-	-
Advances to joint venture	1,601	1,250	1,601	1,250
Investment in subsidiaries	-	-	2,997	1,797
Property, plant and equipment	9,254	9,120	-	-
Total non-current assets	12,291	11,724	4,598	3,047

Total assets	23,631	19,399	7,534	3,456

LIABILITIES AND EQUITY

Current liabilities:
Bank overdrafts	14	72	14	-
Trade payables	4,525	5,011	-	-
Other payables	5,837	4,977	2,421	1,120
Current portion of finance leases	72	210	-	-
Term loans	138	380	-	-
Income tax payable	508	391	17	17
Total current liabilities	11,094	11,041	2,452	1,137

Non-current liabilities:
Finance leases	-	56	-	-
Long-term loans	1,907	1,948	-	-
Deferred income tax	841	841	-	-
Investment in joint venture	1,808	1,020	-	-
Total non-current liabilities	4,556	3,865	-	-


Minority interests	978	527	-	-

Capital and reserves:
Issued capital	3,500	3,000	3,500	3,000
Share premium	6,769	4,595	6,769	4,595
Accumulated losses	(3,266)	(3,629)	(5,187)	(5,276)
Total equity	7,003	3,966	5,082	2,319

Total liabilities and equity	23,631	19,399	7,534	3,456

1(b)(ii) Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 30/06/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured

150,000	60,000	283,000	307,000

Amount repayable after one year

As at 30/06/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured

1,712,000	195,000	1,809,000	195,000

Details of any collateral

1. Mortgage of No 20, Bukit Batok Crescent #11-05,06,07,08,09 Enterprise Centre, Singapore 658080.
2. Kitchen equipment and furnitures under finance leases.

1(c) A cash flow statement (for the group), together with a comparative statement for

the corresponding period of the immediately preceding financial year.

	1 Jan 04	1 Jan 03
	30 Jun 04	30 Jun 03
	$'000	$'000
Cash flows from operating activities
Profit before income tax and share of loss in joint venture	1,399	207
Adjustments for:
Depreciation expense	1,076	1,099
Loss on disposal of a subsidiary	-	23
Interest income	(1)	(1)
Interest expenses	78	119
(Gain)/loss on disposal of property, plant and equipment	(53)	11
Operating profit before working capital changes	2,499	1,458
Trade receivables	587	19
Other receivables and prepayments	(27)	(22)
Long term deposits	(82)	7
Advances to joint venture	(351)	(1,163)
Inventories	189	317
Trade payables	(486)	(79)
Other payables	860	3,677
Cash generated from operations	3,189	4,214
Interest paid	(78)	(119)
Interest received	1	1
Income tax paid	(145)	(91)
Net cash from operating activities	2,967	4,005
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment	255	18
Purchase of property, plant and equipment	(1,412)	(359)
Cashflow on disposal of subsidiary	-	(4,403)
Capital contributed by a minority shareholder of a subsidiary	581	-
Payment to a minority shareholder of a subsidiary	(116)	-
Net cash used in investing activities	(692)	(4,744)
Cash flows from financing activities
Proceeds from issuing shares	2,700	-
Share issue expenses	(26)	-
Repayments of bank loans	(283)	(659)
Repayments of obligations under finance leases	(194)	(283)
Net cash from (used in) financing activities	2,197	(942)
Net increase/(decrease) in cash	4,472	(1,681)
Net cash at beginning of the period	4,065	3,434
Net cash at end of the period	8,537	1,753
	1 Jan 04	1 Jan 03
	30 Jun 04	30 Jun 03
Summary of the effect of disposal of a subsidiary	$'000	$'000
Inventories	-	25
Trade receivables	-	25
Others receivables	-	2
Cash and bank balances	-	24
Trade payables	-	(454)
Others payables	-	(3,721)
Term loan	-	(104)
Finance lease	-	(153)
Loss on disposal	-	(23)
Net liabilities disposed	-	(4,379)
Less: Cash at bank of a subsidiary disposed	-	(24)
Cash outflow on disposal of a subsidiary	-	(4,403)

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or

(ii) changes in equity other than those arising from capitalisation issues and
distributions to shareholders, together with a comparative statement for the
corresponding period of the immediately preceding financial year.

	GROUP				COMPANY
	Issued capital	Share premuim	Accumulated profits (losses)	Total	Issued capital	Share premium	Accumulated profits (losses)	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Balance as at January 1, 2003	3,000	4,595	(4,561)	3,034	3,000	4,595	(4,086)	3,509
Net loss for the period	-	-	(287)	(287)	-	-	(159)	(159)
Balance as at June 30, 2003	3,000	4,595	(4,848)	2,747	3,000	4,595	(4,245)	3,350

Balance as at January 1, 2004	3,000	4,595	(3,629)	3,966	3,000	4,595	(5,276)	2,319
Private placement of share	500	2,200	-	2,700	500	2,200	-	2,700
Private share placement expenses	-	(26)	-	(26)	-	(26)	-	(26)
Net profit for the period	-	-	363	363	-	-	89	89
Balance as at June 30, 2004	3,500	6,769	(3,266)	7,003	3,500	6,769	(5,187)	5,082

1(d)(ii) Details of any changes in the company's share capital arising from rights issue,

bonus issue, share buy-backs, exercise of share options or warrants, conversion of
other issues of equity securities, issue of shares for cash or as consideration for
acquisition or for any other purpose since the end of the previous period reported
on. State also the number of shares that may be issued on conversion of all the
outstanding convertibles as at the end of the current financial period reported on
and as at the end of the corresponding period of the immediately preceding
financial year.

Changes in Company Share Capital
Balance as at January 1, 2004	$ 3,000,000
Placement of 20,000,000 shares allotted on April 22, 2004	$ 500,000
Balance as at June 30, 2004	$ 3,500,000

2. Whether the figures have been audited or reviewed and in accordance with

which auditing standard or practice.

The figures have not been audited or reviewed by the auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including

any qualifications or emphasis of a matter).

4. Whether the same accounting policies and methods of computation as in the

issuer's most recently audited annual financial statements have been applied.

The group has applied the same accounting policies and methods of computation as in the most recently audited financial statements.

5. If there are any changes in the accounting policies and methods of computation,

including any required by an accounting standard, what has changed, as well as
the reasons for, and the effect of, the change.

6. Earnings per ordinary share of the group for the current financial period reported

on and the corresponding period of the immediately preceding financial year,
after deducting any provision for preference dividends.

	GROUP
	30/06/2004	30/06/2003
Earnings per ordinary share for the period after deducting any provision for preference dividends:
(a) Based on weighted average number of ordinary shares in issued	0.29 cents	(0.24) cents
(b) On a fully diluted basis	NA	NA

7. Net asset value (for the issuer and group) per ordinary share based on issued share

capital of the issuer at the end of the:-

(a) current financial period reported on; and
(b) immediately preceding financial year.

	GROUP		COMPANY
	30/06/2004	31/12/2003	30/06/2004	31/12/2003
Net asset backing per ordinary share based on existing issued share capital as at the end of the period reported on	5.00 cents	3.31 cents	3.63 cents	1.93 cents

8. A review of the performance of the group, to the extent necessary for a reasonable

understanding of the group's business. It must include a discussion of the
following:-

(a) any significant factors that affected the turnover, costs, and earnings of the
group for the current financial period reported on, including (where applicable)
seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.

Revenue for the period (1H04) rose by 9.2% to $31.9million compared to $29.2million (1H03). This increase was due mainly to the recovery from the SARS epidemic, improved economic situation, and our Group's aggressive marketing programmes.

The Group achieved a net profit after tax after minority interest of $0.4million (1H04) compared to a net loss of $0.3million (1H03).

The working capital of the Group has also improved from a negative of $3.4million as at 31 December 2003 to a positive of $0.2million as at 30 June 2004 due to the $2.7million net proceeds from a share placement, and improved operational performance.

9. Where a forecast, or a prospect statement, has been previously disclosed to

shareholders, any variance between it and the actual results.

10. A commentary at the date of the announcement of the significant trends and

competitive conditions of the industry in which the group operates and any
known factors or events that may affect the group in the next reporting period
and the next 12 months.

In 1H04 the Group announced that it would set up two restaurants in China - in Chengdu and Beijing. The restaurant in Chengdu is 30%-owned by the Group's wholly owned Tung Lok (China) Holdings Pte Ltd ("TLC"), and commenced operations in July 2004. My Humble House in Beijing, which is 70%-owned by TLC, is expected to commence operations in the fourth quarter of 2004. The contribution from these two new outlets will be felt from end of 2H04 onwards.

At the same time, the Group is continuously seeking to improve operational efficiencies among the 18 restaurants it owns and operates in Singapore. The Group will continue to increase selectively the number of franchises and management contracts. The Group also sees opportunities to further streamline its central kitchen and manufacturing of food and festive products.

Barring unforeseen circumstances, the directors expect operating performance to improve in the second half of the year.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

The date <Enter the date here> the dividend is payable.

(d) Books closure date

Registrable Transfers received by the company up to 5.00 pm on <Enter the date here> will be registered before entitlements to the dividend are determined.

[If not applicable, to say so]

12. If no dividend has been declared/recommended, a statement to that effect.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the

group) in the form presented in the issuer's most recently audited annual financial
statements, with comparative information for the immediately preceding year.

The Group operates in Singapore and in one main line of business, being that restaurant business. Therefore, the requirement on the disclosure of the information relating to the product or business activity and geographical segments of the operation is not applicable

14. In the review of performance, the factors leading to any material changes in

contributions to turnover and earnings by the business or geographical segments.

15. A breakdown of sales.

Not applicable

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest

full year and its previous full year.

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference	0	0
Total:

BY ORDER OF THE BOARD

Andrew Tjioe Ka Men
Managing Director
5 August 2004

Investor Relations

Half Year Financial Statement And Dividend Announcement For The Period Ended 30/06/2004