Evolving with Time

ANNUAL REPORT 2021

Contents

  1. Corporate Profile
  2. Chairman's Statement and Operations Review
  1. Our Brands
  1. Retail Outlets
  1. Milestones
  1. Group Structure
  1. Financial Highlights
  1. Board of Directors

Our Advocacy

Delivering great food is our advocacy. Satisfying the wide palate of Singaporeans remains to be our delight; and we just keep getting better at it. Making good on its promise, Old Chang Kee carries on with its tradition of turning simple recipes into high quality dishes at fair prices. This is for the service of many hardworking Singaporeans who deserve all the delectable treats that our kitchen can provide.

This annual report has been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this document including the correctness of any of the statements or opinions made or reports contained in this document. The contact person for the Sponsor is Ms Ng Shi Qing, 16 Collyer Quay #10-00 Income at Raffles, Singapore 049318, sponsorship@ppcf.com.sg.

  1. Key Management
  2. Corporate Information
  3. Corporate Governance
  1. Financial Statements

143 Statistics of Shareholdings

146 Notice of Annual General Meeting

155 Addendum Proxy Form

Corporate Profile

Old Chang Kee is synonymous with quality food. An accessible go-to snack creator, a trusted store when you need to grab a bite or fill an empty stomach.

We have been present in Singapore for over 60 years now and we will remain as your Old Chang Kee, giving the same good old taste you have loved all these years. We specialise in the manufacture and sale of affordable and delectable food products of consistent quality, under the "Old Chang Kee" brand name. Our signature curry puff is sold at our outlets together with over 30 other food products including fishballs, chicken nuggets and chicken wings. We pride ourselves on always innovating and introducing new products to our customers. Most of our sales are on a takeaway basis and our outlets are located at strategic locations to reach out to a wide range of consumers. The Dip 'n' Go retail outlet offers delicious food on the go, with a variety of accompanying dips. Bun Times retail outlets offer Hainanese inspired buns with a variety of fillings like curry chicken and coconut. The "Curry Times", "O'My Kampong" and "Mushroom" dine-in retail outlets carry a range of local delights such as laksa, mee siam, nasi lemak and curry chicken. We also provide catering services to the central business district and selected areas in Singapore.

OLD CHANG KEE | ANNUAL REPORT 2021

1

Chairman's Statement & Operations Review

Dear Shareholders,

It is my pleasure to present to you Old Chang Kee Ltd.'s (the "Company" or "Old Chang Kee" and together with its subsidiaries, the "Group") Annual Report and the Group's financial results for the financial year ended 31 March 2021 ("FY2021").

(A) STATEMENT OF COMPREHENSIVE INCOME

FY2021 vs FY2020

The Group's revenue decreased by approximately S$12.7 million or 14.4% for FY2021, mainly due to a decrease in revenue from retail outlets, offset by higher revenue from delivery, catering and events.

Revenue from retail outlets decreased by approximately S$22.2 million or 26.4% mainly due to Covid-19 safe management measures.

Revenue from other services, such as delivery and catering services, increased by approximately S$9.5 million mainly due to catering of packed meals to foreign workers dormitories, and higher delivery revenue.

The Group's gross margin improved by 1.9% to 65.6% in FY2021, mainly due to economies of scale from the large-scale catering of packed meals to foreign workers dormitories, improved food cost controls and higher production staff efficiency.

2

OLD CHANG KEE | ANNUAL REPORT 2021

Other income increased by approximately S$6.1 million due to government grants such as Job Support Scheme ("JSS"), Wage Credit Scheme, Special Employment Grant Scheme and property tax rebates.

The decrease in selling and distribution ("S & D") expenses was largely due to lower overtime and part-timer costs, as some outlets were closed during the Phase 1 circuit breaker ("CB") period and temporary closure of some outlets due to lower traffic; lower outlet operating expenses, waiver of foreign worker levies in April 2020 and rental rebates received from landlords during FY2021.

The increase in administrative expenses was mainly due to higher staff incentive provision arising from the increase in net profit for FY2021; offset by lower travelling, upkeep of motor vehicle, repair and maintenance expenses due to the temporary closure of some outlets and travel restrictions imposed by the government during the CB.

Finance costs decreased mainly due to lower loan interest rates and lower interest expenses arising from lease liabilities during FY2021.

Other expenses decreased by S$1.8 million mainly due to lower impairment loss for our United Kingdom ("UK") joint venture and our Malaysian associate, exchange rate gains on foreign currency denominated payables to related companies within the Group, and lower fixed assets written off due to fewer outlet closures, offset by higher impairment of right-of-use assets and property, plant and equipment for retail outlets affected by the pandemic.

The increase in depreciation expenses was mainly due to recognition of lease-related depreciation attributed to the right-of-use assets, as a result of outlet lease renewals that resulted in the increase in right-of-use-assets.

The Group's tax expenses increased by S$374,000 mainly due to higher profit for FY2021. The effective tax rate for the current period increased to 12.4% mainly due to an increase in profit offset by higher non-taxable JSS grant income for FY2021.

  1. STATEMENT OF FINANCIAL POSITION Non-currentassets

The Group's non-current assets decreased by approximately S$3.3 million, mainly due to:

  1. a decrease in property, plant and equipment resulting from the disposal of the Group's factory facility in Woodlands Loop and motor vehicles, depreciation expenses, impairment and assets written off for selected outlets, offset by additions in FY2021; offset by
  1. an increase in right-of-use assets of approximately S$405,000 mainly due to lease renewal and new lease committed, offset by depreciation and impairment of right-of-use assets for retail outlets affected by the pandemic; and
  2. an increase in long term deposits mainly due to top-up of lease deposit for lease renewal and reclassification of lease deposits in accordance with the respective lease tenures.

OLD CHANG KEE | ANNUAL REPORT 2021

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Old Chang Kee Ltd. published this content on 06 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 July 2021 09:49:04 UTC.