JIN MI FANG GP (08300) has announced the recent establishment of a non-wholly owned subsidiary in Hong Kong, named Jin Mi Fang Catering (Hong Kong) Limited. The purpose of this new entity is to develop a hot pot catering business in Hong Kong. Prior to this establishment, the Group had accumulated multiple years of experience in the Hong Kong catering sector. However, due to ongoing uncertainties in the overall Hong Kong餐饮 market since the COVID-19 outbreak and into the post-pandemic era, the Group gradually closed its restaurants and ceased its restaurant operations in Hong Kong in late October 2024. The Group has been reassessing its strategic approach to resource allocation across its various business segments, aiming to create optimal returns for the Company and its shareholders. To diversify its revenue streams and further develop its catering operations, the Group has also entered the mainland Chinese market for liquor supply and the food sales and distribution business during the fiscal years ending March 31, 2024, and March 31, 2025, respectively. Concurrently, the Group has been closely monitoring market trends and has adopted a conservative and prudent business strategy for its catering operations in Hong Kong, with the goal of re-establishing its presence in the餐饮 industry. Considering the popularity of the hot pot catering sector in Hong Kong, the Group intends to explore market opportunities through a partnership with a business associate. As of the date of this announcement, Jin Mi Fang Catering (Hong Kong) is 51% owned by the Group and 49% owned by Mr. Lam Hoi Kei. Mr. Lam possesses extensive experience in the Hong Kong餐饮 industry, particularly in the setup, management, and operation of hot pot restaurants. To the best of the Directors' knowledge, information, and belief, following reasonable enquiries, Mr. Lam was an independent third party with no connection to the Company or its related parties prior to the establishment of the subsidiary. The Board believes that the Group will be able to leverage Mr. Lam's industry insights, management expertise, and business network to enhance the competitiveness and operational efficiency of its planned hot pot catering business in Hong Kong. The Group plans to open its new hot pot restaurant in Kowloon, Hong Kong, through Jin Mi Fang Catering (Hong Kong), and preparations are currently underway. The Group targets commencing operations of this hot pot restaurant around the second quarter of 2026, subject to the progress of relevant preparatory work and obtaining any necessary licenses, permits, and approvals. The Directors are of the view that establishing the subsidiary and developing the hot pot catering business in Hong Kong aligns with the overall interests of the Company and its shareholders. They consider this business development a strategic move for the Group to regain a foothold in the catering market, allowing it to utilize its existing experience and expertise in the餐饮 industry to grow the hot pot business, thereby broadening the Group's revenue base and ultimately improving its overall financial performance.
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