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Old Chang Kee Ltd. • Annual Report 2012
approximately S$9.2 million. The net cash outflow from working
capital changes comprised mainly of an increase in inventories
and deposits of S$429,000 and S$308,000 respectively, partially
offset by a decrease in trade and other receivables and an
increase in trade and other payables of S$181,000 and S$52,000
respectively.
In 15M2012, net cash used in investing activities amounted to
approximately S$4.2 million. This was mainly attributed to the
purchase of a new factory facility, renovation costs and purchase
of plant and equipment for the Group’s new and existing retail
outlets amounting to approximately S$4.5 million. This was
partially offset by proceeds from the disposal of plant and
equipment of approximately S$303,000.
Net cash used in financing activities amounted to approximately
S$2.1 million in 15M2012. This was mainly attributed to
dividends paid for the financial year ended 12M2010, which
amounted to S$1.4 million, and repayments of bank loans and
finance lease liabilities including interest of S$150,000 and
S$625,000 respectively, partially offset by proceeds from the
issuance of ordinary shares of S$145,000 pursuant to warrants
exercised in 15M2012.
TheGroup’s cash and cash equivalents amounted to approximately
S$15.9 million as at 31March 2012, as compared to approximately
S$13.0 million as at 31 December 2010.
Business Development
In August 2011, the Group purchased a factory facility in the
Iskandar region, Johor, Malaysia. This is part of the overall plan
to enhance the Group’s manufacturing capabilities. The Iskandar
manufacturing facility will further support the Group’s expansion
plans, both local and overseas.
In December 2011, the Group opened its first retail outlet in
Perth, Western Australia. The retail outlet is located in the hip
and trendy Waterford Plaza Shopping Centre. The walls of the
outlet are adorned with pictures of our signature curry puff,
giving the outlet a distinctive Singaporean touch. Two non-
profitable outlets in Chengdu, PRC, have ceased operations in
December 2011.
Riding on the popularity of our Old Chang Kee curry puffs, the
Group introduced a new brand, Curry Times, in February 2012.
This is the Group’s first curry themed restaurant in Singapore.
Hearty, homely plates of curry dishes are served in a relaxed retro-
setting that brings back memories of the past. Press coverage and
customer reviews thus far have been very positive.
The U.S based Travel and Leisure Magazine announced in May
2012 that Old Chang Kee was selected as one of the world’s 20
best fast-food chains. Old Chang Kee was the only brand from
Singapore to have the honour of being included in the list. I
would like to thank our loyal customers and strategic partners,
whose unwavering support over the past years have helped us in
gaining such recognition.
Dividends
The Directors have proposed an ordinary final dividend of 1
Singapore cent per ordinary share and a special final dividend of
0.5 Singapore cent per ordinary share for FY2012.
Going Forward
Labour costs will continue to increase and the Group expects that
this, together with the acute labour shortages and the high costs
of raw materials, to have an impact on the Group’s profitability.
With the assiduous assistance of government agencies, we will
continue to explore how we can better deploy manpower and
improve productivity, especially at the back end, as part of the
Group’s costs management initiatives.
The Group will continue with our efforts to drive revenue
growth and manage operation costs in both the local and
overseas markets.
Acknowledgement
I would like to express my heartfelt appreciation to our
customers for their continued patronage and our shareholders,
Directors, bankers, strategic business partners and our staff for
their continued support.
Han Keen Juan
Executive Chairman