YKGI has reported a 20.6% y-o-y lower earnings for the 1HFY2025 ended June 30, of $1.96 million, down from the $2.47 million reported in the same period a year ago.

 

Revenue for 1HFY2025 grew 4.6% y-o-y to $33.4 million.

 

YKGI, which stands for Yew Kee Group, manages five food courts located in Singapore under the My Kampung and Fine Food brands.

 

The group says that revenue increase is mainly due to revenue from its F& B Operations increasing due to new outlets opening in 2HFY2024 and 1HFY2025 a rise in foot traffic from the two universities it has food courts in and incremental revenue from new outlets in operations for its franchise business.

 

Other income decreased $400,000 due to a reduction in government grants, and purchases and related costs grew $400,000 due to corresponding sales growth.

 

As at June 30, the group&rsquo s cash and bank balances amounted to $20.6 million.

 

YKGI' s net profits in 1HFY2024 to end-June rose by 557% to $2.46 million. Revenue rose by 7.6% y-o-y to $31.9 million. The net profit in 1HFY2024 includes a deduction for the one-off IPO and related expenses $1.24 million for the Company' s listing on the Catalist, on Feb 6, 2023. 

 

YKGI stands for Yew Kee Group, which is known for duck rice. The Group manages five food courts located in Singapore under the My Kampung and Fine Food brands. The Group also leases the food courts and in turn sub-leases stalls to individual food court tenants. The food court management services provided by the Group include the upkeep of vacant stalls and allocation of such stalls to Food Court Tenants, application for and renewal of licences, collection of takings from the daily sales of Food Court Tenants, collection of management and cleaning fees from Food Court Tenants, managing arrears, addressing complaints from Food Court Tenants and customers and the cleaning, maintenance and repair of the food courts.

 

The F& B operations are involved in the operations of food outlets and hawker stalls under Yew Kee Duck Rice and a diverse portfolio of other non-halal and halal brands such as XO Minced Meat Noodles, My Kampung Chicken Rice, PastaGo, Victory Bakery and Kampung Kopi House. The operations of the Group&rsquo s food outlets and hawker stalls are supported by the central kitchen which procures, processes and prepares key ingredients and products for supply to the food outlets operating under the Group&rsquo s brands and certain third-party food outlets. 

 

Between Sep 21 and 27 executive chairman and executive director Seah Boon Lock acquired 2,235,100 shares at an average price of S$0.119 per share. With a consideration of S$265,955, this increased his deemed interest in the Catalist-listed F& B player from 77.70 per cent to 78.23 per cent. Seah has gradually increased his deemed interest in YKGI from 76.70 per cent on Feb 6. He has more than 30 years of relevant experience in the F& B industry and was a founder the group.

 

YKGI : YK9 +5.51% was listed on the Catalist on Feb 6, 2023. The principal activity of the company is that of an investment holding. The principal activities of the subsidiary corporations are those of F& B operations, food court management and franchising and sub-franchising. The F& B operations contributed 52 per cent of H1FY23 revenue (ended June 30) and comprise the operations of food outlets and hawker stalls under the flagship brand, Yew Kee Duck Rice. The F& B operations also include a diverse portfolio of other non-halal and halal brands such as XO Minced Meat Noodles, My Kampung Chicken Rice, PastaGo and Kampung Kopi House. The operations of the food outlets and hawker stalls are supported by the central kitchen which procures, processes, and prepares key ingredients and products for supply to the food outlets operating under the group&rsquo s brands and certain third-party food outlets.

 

For its H1FY23, the group reported revenue of S$29.6 million, a 10.7 per cent increase from H1FY22. This was mainly attributed to an increase of S$2.3 million from the F& B operations, due to more stores being in operation in H1FY23, and the charging for takeaway packaging from the end of FY22. It also highlighted an increase of S$0.8 million from its food court business due to the lifting of Covid-19 epidemic safe distance measures in Singapore universities and in the community and the gradual resumption of activities in the community which led to higher demand.

 

YKGI announced that its wholly-owned subsidiary Yew Kee Collective has acquired the remaining 50% and 20% shares in Fine Food F& B (FFF& B) and Fine Food (Nanyang) (FFNY) respectively, from an individual Tan Hwee Meng for $330,000.

 

Based on FFF& B and FFNY&rsquo s unaudited financial statements for the six months ended June 30, FFF& B and FFNY&rsquo s net profit after tax was $293,000, and its net book value and net tangible assets was $782,000.

 

Based on FFF& B and FFNY&rsquo s unaudited financial statements for the financial year ended Dec 31, 2022, FFF& B and FFNY&rsquo s net profit after tax was $441,000. The net book value and net tangible assets attributable to the sales shares as at June 30 based on the unaudited financial statements of FFF& B and FFNY was $287,000.

 

the proposed acquisition will give YKGI full control over FFF& B and FFNY which is in line with the group&rsquo s business strategies and future plans. The acquisition will also allow the group to account for the full profit contribution from FFF& B and FFNY and the benefits of managing its resources efficiently.

 

Accordingly, the board is of the view that the proposed acquisition will bring value to shareholders of the company and is in the best interest of the company and its shareholders.

 

FFF& B was incorporated in Sept 2017, while FFNY in Sept 2019. Both companies&rsquo principal activity is letting and operating of self-owned or leased food courts, coffee shops and canteens (with mainly rental income) with stalls selling cooked food and prepared drinks (including stalls at food courts and mobile food hawkers) as the secondary activity.

 

YKGI Limited YK9 0.00% has entered into a non-binding overseas authorisation memorandum (OAM) with Fang Yuan F& B International to operate and, or manage the Chicha San Chen franchise in Macau.

 

Both parties will work towards entering the definitive agreements afterwards.

 

Fang Yuan is the franchisor of the Taiwan-based bubble tea brand. YKGI had previously signed a master franchise agreement with Fang Yuan and was granted the franchise and license to operate outlets under the Chicha San Chen brand in Singapore. The master franchise agreement is good for a term of 10 years from Jan 14, 2019.

Between Jun 15 and Jun 20, YKGI : YK9 0% executive chairman and executive director Seah Boon Lock acquired 1,033,300 shares at an average price of S$0.136 per share.

 

With a consideration of S$140,691, this increased his deemed interest in the Catalist-listed food and beverage player from 77.46 per cent 77.70 per cent.

 

Seah has gradually increased his deemed interest in YKGI from 76.70 per cent on Feb 6. He has more than 30 years of experience in the F& B industry and was a founder the group.

 

Sing Investments & Finance

On Jun 19, Sing Investments & Finance (SIF) : S35 -0.5% deputy managing director Lee Sze Siong acquired 32,000 shares at S$1.00 apiece. This increased his total interest in the licensed finance company from 30.52 per cent to 30.54 per cent.

 

His preceding acquisition was on Jun 12, with 8,000 shares also acquired at S$1.00 apiece.

 

SIF&rsquo s principal activities include accepting deposits from the public and providing loans and credit facilities to individuals and corporations, particularly the small and medium-sized enterprises in Singapore.

 

Lee currently oversees the company&rsquo s credit documentation & operations, credit control, finance, IT support, product management, HR, tenancy and building maintenance.

Between May 25 and 26, YKGI : YK9 0% executive chairman and executive director Seah Boon Lock acquired 1,341,900 shares at an average price of S$0.131 per share. With a consideration of S$175,327, this increased his deemed interest in the Catalist-listed food and beverage (F& B) player from 76.92 per cent 77.23 per cent.

 

Seah has gradually increased his deemed interest in YKGI from 76.70 per cent on Feb 6.

 

He has more than 30 years of experience in the F& B industry and was a founder the group.

 

YKGI, an abbreviation for Yew Kee Group International, represents the aspirations of the group expanding internationally from Yew Kee, a household name which started in the 1950s as a pushcart selling braised duck rice in Nee Soon, to Yew Kee Group which manages a diverse portfolio of brands.

Between May 4 and May 10, YKGI executive chairman and executive director Seah Boon Lock acquired 350,000 shares at an average price of S$0.144 per share. With a consideration of S$50,245, this increased his deemed interest in the F& B player from 76.83 per cent to 76.91 per cent. Seah has more than 30 years of relevant experience in the F& B industry and was a founder the group. YKGI listed on the Catalist board on Feb 6.