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Annual Report 2006

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Annual Report 2006 THAI VILLAGE Holdings Ltd ANNUAL REPORT 2006 Th e Best Place For Authentic Thai-Teochew Cuisine Cover Story Village To Village + Special Map Guide To Thai Village Outlets Company Reg No.: 199905141N Plus: CORPORATE PROFILE // CHAIRMAN'S STATEMENT // OPERATIONS REVIEW // BOARD OF DIRECTORS // CORPORATE STRUCTURE // CORPORATE INFORMATION // FINANCIAL REPORT ORPORATE PROFILE CTh ai Village Holdings Ltd consists of a chain of 10 self- managed restaurants and 17 franchise restaurants. Since our inception in 1991 with our flagship Thai Village Sharksfin Restaurant, we have grown steadily to expand throughout the region. Our signature Braised Superior Sharks’ Fin soup can now be found in Thai Village restaurants throughout Singapore, the People’s Republic of China and Indonesia. Guided by sound judgment, we continue to conquer new grounds with our winning strategy of off ering our customers only the choicest quality ingredients, superior Th ai-Teochew cuisine and impeccable service. Thai Village Holdings Ltd Blk 1002 Tai Seng Avenue, #01-2536, Singapore 534409 Tel: (65) 6487 6182 Fax: (65) 6487 6183 Email: [email protected] Website: www.thaivillagerestaurant.com.sg CONTENTS Corporate Information Board of Directors Mr Lee Tong Soon Chairman & Managing Director Mr Lee Tong Kuon Executive Director 02 Mr Kok Nyong Patt COVER STORY Executive Director Village to Village Dr John Chen Seow Phun Independent Director Mr Chow Kok Kee Independent Director Joint Company Secretaries Ms Kong Yim Pui Susan 09 LLB (Hons.) FEATURE Operations Review Ms Goh Chui Ling Marilyn LLB (Hons.) Registered Offi ce Block 1002 Tai Seng Avenue 01 Corporate Information #01-2536 Singapore 534409 02 Cover Story: Village to Village Tel: (65) 6487 6182 Fax: (65) 6487 6183 04 Chairman’s Statement Email: [email protected] 08 Board of Directors Website: www.thaivillagerestaurant.com.sg Share Registrar Lim Associates (Pte) Ltd 3 Church Street #08-01, Samsung Hub Singapore 049483 09 Operations Review 16 Group Structure Auditors Ernst & Young 17 Financial Report Index One Raffl es Quay North Tower, Level 18 Singapore 048583 Mr Cheng Heng Tan Special Map Guide (Appointed during fi nancial year ended To Th ai Village Outlets 30 September 2005) Bankers On Page 14-15! United Overseas Bank Limited Overseas-Chinese Banking Corporation Limited DBS Bank Ltd Th ai Village Holdings Ltd 1 Annual Report 2006 COVER STORY VILLAGE TO VILLAGE A BRIEF HISTORY OF THAI VILLAGE For many Singaporeans, the fi rst taste of authentic Th ai-Teochew cuisine came from a kitchen in the eastern part of Singapore. What started as a tiny restaurant on East Coast Road in 1991, has grown into a chain of restaurants in Singapore, Indonesia and China. Here, we explore the history of the fi rst chinese restaurant business to be listed on the Singapore Exchange. hen the fi rst Th ai Village 17 franchise outlets in Indonesia Th is would infl uence Lee Tong Soon Sharksfi n Restaurant and China. heavily, as it is this very experience – opened in 1991, Th ai- one comprising great food, ambience W Th is incredible success story really had Teochew cuisine was novel to Singapore and hospitality - that defi nes the Th ai and the idea of having whole, braised its roots in Pulau Tekong, where Lee Village experience. And it was those sharks’ fi n in large claypots was Tong Soon, Chairman and Managing memorable days he had spent in the completely unheard of. Director of Th ai Village Holdings Ltd, village that gave Lee Tong Soon the spent his growing-up years. During that inspiration for the company’s name. Blending exotic Th ai-Teochew dishes time, Lee Tong Soon’s parents toiled served in stunning presentation with hard to raise him and six siblings. Lee Tong Soon wasn’t always a dazzling service and an enjoyable, restaurateur, although he had a stint at upscale atmosphere may have been a Th ough life was austere for the young McDonald’s. Even then, he was a real radical idea, but it was the recipe for Lee Tong Soon, he did have joys. One estate manager charged with scouting success at Th ai Village. of his greatest delights was tucking into for locations in the heartlands of the food that diff erent households Singapore for the fast food chain. Prior From its first outlet at East Coast would prepare to share with the rest to working at McDonald’s, Lee Tong Road with a seating capacity of of the kampung (Malay for ‘village’). Soon was an estate offi cer with the 70 persons only, Thai Village has He loved to see the families interacting Housing and Development Board and grown into a chain of 10 restaurants with one another, enjoying good food a property consultant with Jones Lang in Singapore and China, and and having a wonderful time. Wotton (now Jones Lang LaSalle). Th ai Village Holdings Ltd 2 Annual Report 2006 Th e entrepreneurial bug bit him in to something “diff erent”. Th is little business from the ground up – the 1991, the year his elder brother, Lee Th ai Village Sharksfi n Restaurant soon importance of absolute cleanliness Tong Kuon, Executive Director of Th ai became known for serving authentic in the kitchen, using the freshest Village Holdings Ltd, returned to Th ai-Teochew cuisine and braised ingredients and the very best cooking Singapore aft er learning Th ai-Teochew shark’s fi ns in large claypots. tools money could buy. The elder brother, Lee Tong Kuon also grasped the important lesson of “Our company has a wonderful culture. We serve offering guests something out of the consistent, good food – that’s part of it. It’s a comfortable ordinary and he displayed his innovations in the kitchen, cooking place to appreciate authentic Th ai-Teochew cuisine. And up signature dishes such as baked crabs with vermicelli and deep fried we truly mean it when we say our people are our best fish with egg yolk butter sauce, asset. At Th ai Village the recipe for success is simple – which remain popular today. There was something magical about this take great care of your employees and they’ll take great combination and the business care of your customers. In fact, fi ve of the staff whom we grew quickly. started the business with are still with us today. It’s a By 1997, from that humble beginning at East Coast Road, Thai Village had company with good core values that’s run by people who grown into a chain of four restaurants in Singapore. The year also saw the care – we’re not just another restaurant chain.” opening of the first Thai Village franchise in Surabaya, Indonesia. Lee Tong Soon on the key to the success of the Th ai Village concept. The expansion brought Thai Village to China in 1998, when it opened its first branch in the Middle Kingdom cooking techniques in the Land of With a staff strength of only 15 in Shanghai. Three years on, Thai Smiles. Th e two brothers roped in three (including the fi ve partners), Village Holdings Ltd was listed on other friends, and pooled S$250,000 Lee Tong Soon would have to wash the Singapore Exchange, marking together to set up the maiden Th ai many of those claypots himself, on top a grand milestone in the history of Village Sharksfi n Restaurant. of cleaning the washroom, helping out Thai Village Holdings Ltd. in the kitchen and serving guests. Although he had no prior experience in running a restaurant, Lee Tong Soon Having gotten his hands dirty, Lee Tong was well aware of the public’s attraction Soon understood the restaurant Th ai Village Holdings Ltd 3 Annual Report 2006 CHAIRMAN'S STATEMENT "Gaining market share is paramount to our growth strategy. To achieve that, we will concentrate on creating unmatched food, service quality and ambience." CONSOLIDATING STRENGTHS, PURSUING GROWTH Dear Shareholders, FY 2006 was one of the most Th ere was unanimous agreement challenging years in the Group’s within the Board: Th e time had come 15-year history. Ever tougher for radical changes and a realignment competition, oil prices that spiralled of the Group. upwards and regulatory measures made business diffi cult for the Group. As we have always done, the Group made prudent consolidations to our Conditions were particularly tough in restaurant portfolio in FY 2006 – the People’s Republic of China (“PRC”), closing underperforming outlets, both where we were hit hard by extreme in Singapore and the PRC. We will competition and the controls on continue to evaluate our operations on spending the central government a regional scale, and take appropriate retained to curb overheating of the action to reduce costs and maximise country’s economy. return on assets. Th e Group has taken decisive action Gaining market share is paramount to to close the under-performing outlets in the PRC and Singapore. Th is has our growth strategy. To achieve that, resulted in a decrease in revenue by we will concentrate on creating 9% as compared to FY 2005 and a net unmatched ambience, food and service loss of S$1.9m for FY 2006. However, quality. Th ese will create a competitive the Group continued to generate advantage for Th ai Village and deliver positive cash fl ow from operations. an optimal experience for the people who patronise our restaurants. Embracing change We have already begun this process. In FY 2006, the Group focused our Here are just some examples: energy to address the situation facing the Group. Specifi cally, the Board and • Th e Group has initiated an internal the management team engaged in culinary competition in June and numerous critical discussions and October 2006 amongst the chefs in conducted a painstaking and very our outlets in Singapore to spur menu honest evaluation of the general health innovation and culinary excellence.
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