de Coral Group (0341) is the largest publicly listed Chinese
fast food restaurant group in the world. The Group is principally
engaged in the operation of quick service and specialty restaurants
chain, with vertical and horizontal diversification in institutional
catering and food processing business.
Group was incorporated in October 1968 and went public in
July 1986 on the Stock Exchange of Hong Kong, which was the
first of its kind at the time of listing. In October 2001,
it was appointed as one of the top 200 constituents of The
Hang Seng Composite Index Series. After 42 years of development,
it has become the market leader in the Hong Kong fast food
industry and the largest national brand for Chinese quick
service restaurant in Canada, with over 24.8% market share
in the Quick Service Restaurant segment and 4.6% of the total
dining out industry in Hong Kong. Its business operation spans
over 2 continents with more than 300 operating units in Hong
Kong, over 100 outlets in China as well as more than 140 units
in North America.
the past years since its public listing in 1986, the Group
advanced in strides in profit performance and in its business
dimensions. The Group has successfully transformed from a
small home grown enterprise into a diversified global corporation.
The continuous business growth records over the years speak
for itself, recording multiple growths in terms of market
capitalization, turnover, profits, employees and net assets
value. Our market cap increased by over 20 times, turnover
by over 19 times, profit by over 14 times and net assets by
over 51 times since listing. With a dedicated workforce of
16,000, we are awarded the Best Employer in Asia.
the past years, Cafe' de Coral has received numerous awards
for its management excellence from the local and international
institutions, which include the most coveted award of the
¡§Asian Management Awards for Marketing and General Management¡¨.
Five times in a row, we have been selected as ¡§World¡¦s 200
Best Small Capitalization Companies¡¨ by Forbes Global and
three times in a row chosen as ¡§Best Practice Companies¡¨ by
Hong Kong Productivity Council. In addition, we have been
selected as ¡§Leader in Corporate Governance¡¨, and also been
awarded the ¡§IT Excellence Awards¡¨ and ¡§IR Magazine Asia Awards¡¨.
More recently, our group has been honored five years in the
row the ¡§PRC Consumer¡¦s Most Favorable Hong Kong Brand-Gold
a personal basis, our Group¡¦s Chairman, Mr. Michael Y.K. Chan
was awarded with the most coveted ¡§Stars of Asia Award¡¨ in
1999, the prestigious ¡§Executive of the Year Award 2001¡¨,
the ¡§2002 Bauhinia Cup Outstanding Entrepreneur Awards¡¨, the
¡§Directors of the Year Awards¡¨, as well as the ¡§Entrepreneur
of the Year China¡¨ by Earnest & Young in 2007.
Locally here in its Hong Kong headquarter, Cafe' de Coral
is the market leader of the fast food sector, catering to
over 300,000 customers per day. While we emphasize offering
quality products to our customers at affordable prices, we
are also innovative in our introduction of new products, with
over 100 items on our menu list on any one day, and regularly
rotated to maintain variety of choices.
from core brand Cafe' de Coral, the Group is actively developing
other brands to boost long-term sales and earnings growth
in the Hong Kong Chinese QSR market, with Super Super Congee
& Noodles being another strategic brand to tap into the
We are one of the pioneers to tap into the big emerging market
of fast casual dining for healthy and nutritional lifestyle,
and have established different brands to meet this rapidly
expanding market of health-conscious customers. Acquired in
2003, Oliver¡¦s Super Sandwiches¡¦ highly recognized ¡§made-to-order¡¨
sandwiches and salads, together with an assorted selection
of hot food, are well received among our customers. To penetrate
into the high-end coffee market in Hong Kong, the Group established
a joint venture in November 2007 to operate an exclusive franchise
under the brand of ¡§Espressamente illy¡¨. Newly added to our
portfolio is Mix, the first and largest healthy concept restaurant
chain in Hong Kong, with innovative juice offerings and smoothies,
together with a wide array of highly recognized and nutritionally
balanced wrapps, salad, and gourmet sandwiches.
Being well aware that the catering sector in Hong Kong representing
a market of 80 billion Hong Kong dollar businesses, the Group
has gone beyond its core business of quick service restaurants
and diversified into full-service specialty restaurant operations,
making efforts to capture bigger market shares in other segments
of catering industry as a whole. The development of The Spaghetti
House since 1991 and the recent development of 360 series
enable the Group to achieve a more diverse earning base through
wider market exposure, as well as assuming a leadership position
in the pasta segment. Our strategies are to enlarge our market
share in the Hong Kong catering industry as a whole and to
establish a balanced business portfolio to explore the greater
potentials of the vast catering market in Greater China.
The Group¡¦s venture into the institutional catering business
with Asia Pacific Catering since the early 90¡¦s has gradually
developed into an undisputed market leader in the field. Major
clients being served cover a wide spectrum of institutions
ranging from most major hospitals, universities, private and
public corporations, both in Hong Kong and China.
September 1999, the student catering business was launched
under the brand name of Luncheon Star. It has since then become
one of the major school lunch providers in the marketplace.
To provide children with a healthy growing environment for
a brighter future, Luncheon Star consistently emphasizes food
safety, healthy diet and environmental protection. We select
high quality food materials by way of global purchase. We
utilize advanced cook-chill technology to maintain the highest
food safety standards. We have experienced dietitians to fulfill
the nutritional needs of children. We are also the first school
lunch providers to adopt comprehensive environmental protection
measures in disposables and recycling.
are also one of the pioneer caterers in being accredited simultaneously
with ¡§HACCP¡¨, ¡§ISO 9001¡¨ and the strictest ¡§ISO 22000¡¨ food
safety and monitoring system, which are the first of its kind
in the Hong Kong catering industry. These accreditations are
testimonial of our commitment in food safety and corporate
responsibility to the local community.
international accreditations in the areas of food safety,
nutrition and environmental protection, we plan to further
upgrade the central kitchen¡¦s infrastructure, and the reheating
centers for institutional catering, thereby ensuring the consistency
of the high quality food to serve our customers.
Recognizing that central food processing facility will be
one of the critical success factors to the catering sector,
the management of the Group has long established our first
central food processing facility in Hong Kong since 1980s,
so as to standardize and maintain quality control over the
increasing volume and range of produce and ingredients processed.
It also enabled the Group to minimize its reliance on manual
labor by way of mechanization and automation on much of its
of the food sold in the Group¡¦s restaurants is portioned and
processed at the central food processing facility. All produce,
ingredients and packaging materials delivered to the central
food processing facility will undergo quality checks before
further processing or delivery to the individual restaurants
and a high standard of hygiene is maintained throughout.
these years of development, however, the original central
food processing facility is not able to fully satisfy the
need of the Group¡¦s rapid expansion, which necessitated the
construction of a new centralized food processing center in
Tai Po, Hong Kong. With an area of 150,000 square feet and
a capability to support 300 stores in Hong Kong, the new centralized
food processing center will be launched into production in
2012. The construction of the new central food processing
facility is expected to contribute significantly to the better
food quality control, cost saving and productivity enhancements.
After years of development, we are proud that our Cafe' de
Coral has already covered the major Pearl River Delta cities,
in particular Shenzhen and Guangzhou. With a sizable business
platform and a highly recognized brand, we plan to accelerate
the store opening process by building a central food processing
plant in Guangzhou, which launched production in 2011 and
have the production capacity to support the demand of over
300 stores in the region. The multi-purpose training facilities
adjoining the plant will also be established in order to provide
all-round training to our front-end staff, in preparation
to tap into the vast potential in this strategic market.
The Specialty Restaurant sector is another important market
in the Mainland China. Following the success of The Spaghetti
House in Hong Kong, we accelerated our development of the
brand in the top-tier cities in the Pearl River Delta Regions,
including Shenzhen, Guangzhou, Foshan and Zhuhai.
In Mainland China, we strengthen our efforts to pursue business
opportunities with intuitional clients in science parks, modern
office complexes, and in the education sector. Recently, we
reached a management agreement with United International College
in Zhuhai to manage and operate a student and staff canteen
with a total floor area of 2,740 square meters.
Manufacturing and Distribution Business
The acquisition of Scanfoods in 1997 led the Group towards
further upstream integration into the food manufacturing and
distribution business in the Greater China region. As one
of the leading processed meat suppliers in Hong Kong, Scanfoods
owns a 40,000 square feet production base in Dongguan city,
which processes and distributes ham, sausages and bacon products
to over 1,000 institutional customers in Hong Kong and China.
more than 140 units, Manchu Wok is the largest national brand
of Chinese quick service restaurant chain in Canada and the
second largest in U.S.A. The chain was first established in
1982 in Canada, which was targeted to fill the growing demand
for a systematic and professional Chinese fast food restaurant
concept in North America at the time. Since 2007, our management
team has taken various measures to revitalize the Manchu Wok
brand. In particular, we introduced innovative store design
and combined it with improved operational protocol to refresh
our brand image. We help the franchisees to build their stores
on time, on specification and on budget.
date, Manchu Wok in U.S. accounts for almost half of total
outlets in North America, and our franchises have grown to
more than 120 outlets. Our non-traditional outlets also account
for one third of the total portfolio. In the future, we will
continue to expand in North America, further concentrate our
efforts in the Canadian market, and increase the percentage
of franchise stores in our total portfolio. We will also commit
more resources to grow both our traditional and non-traditional
portfolios, in the arena of airports, casinos, and military
bases. Our globalization vision in the years ahead will continue
to be pursued in a disciplined pace through further organic
growth and franchising.