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TungLok leverages on healthy balance sheet to stay relevant in challenging market

TO stay relevant in a challenging food and beverage (F&B) market in Singapore, TungLok Restaurants will be leveraging on its healthy balance sheet to explore suitable investment opportunities that can add value to its business.

The group said in a Singapore Exchange filing on Monday morning that it has accelerated efforts "to refresh dining concepts and streamline operations with a view to optimising costs while delivering differentiated values to customers".

To drive further growth, TungLok will focus on the following strategies: rolling out promising brands to new geographical markets to reduce overdependence on Singapore, currently its key market; expand services and capabilities to offer greater convenience and choice to consumers in Singapore with an eye on younger diners; and streamline operations further through innovation, automation and other efforts to promote productivity at kitchen and service levels.

TungLok achieved a successful turnaround in FY2015 and was profitable in FY2016 and FY2017, it said.

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Its balance sheet has also been strengthened and as at March 31, the group has net working capital of S$8.6 million and cash and bank balances of S$15 million. Its gearing ratio improved to 0.21 times in the same period.

TungLok, which specialises in Chinese cuisine, operates a total of 46 restaurant outlets, comprising 26 that are directly owned by the group, nine held by its associates and 11 under franchising/licensing contracts. These outlets are spread across Singapore, Indonesia, Japan, China and Vietnam.

Currently, the group operates more than 20 F&B brands and has a catering arm that provides outdoor and institutional catering services. It also has manufacturing facilities that produce dim sum, mooncakes, rice dumplings and festive goods.