BUSINESS OVERVIEW We are a top full service multi-brand restaurant group with 34 restaurants in Hong Kong specialising in Chinese and Asian (in particular Japanese) cuisine. As at the Latest Practicable Date, we operated six Chinese restaurants and 28 Asian restaurants, which serve quality, value-for-money delicacies to diversified customer segments seeking a wide array of culinary experiences. We operate a diverse and appealing portfolio of 10 brands and are developing one new brand, which are self-owned or franchised. The diagram below shows our brand portfolio, the number of restaurants and the cuisine served under each brand as at the Latest Practicable Date: Chinese cuisine Asian cuisine Cantonese specialised Yakiniku (13) in wedding banquet (2) “All-you-can-eat” Cantonese (1) shabu-shabu (10) Premium shabu-shabu (3) Cantonese (1) Beijing, Shanghai Chicken galbi (1) Sichuan (1) Modern hotpot (1) Yakiniku donburi Cantonese, (To be launched) pot dishes (1) (Self-owned brands) (Self-owned brands) (Franchised brands) See “— Overview of our restaurant network and operations — Our brand and restaurant portfolio” in this section for details on the brands we have successfully built. Since we opened our first Chinese restaurant in the 1980s, we have, through our over 30 years of heritage, strengthened our foothold in the full service restaurant market in Hong Kong and become a sizeable restaurant operator in the city. Growing at a CAGR of 3.9% from 2013 to 2017, the full service restaurant market in Hong Kong was sizeable at approximately HK$44.6 billion in 2017, of which we had a market share of 1.8% as the fifth largest operator. Our strength lies in particular in Japanese cuisine, and we ranked second in that market in 2017, with a market share of 7.9%, drawing primarily from the popularity of our “Mou Mou Club ( )” and “Gyu-Kaku ( )” restaurants. – 105 – BUSINESS We pride ourselves in the extensive market coverage of our brand portfolio, which allows us to tap into customer segments spanning across mid-to-high end market (mainly at the lower end of this market segment) to mass market with different culinary preferences. For Chinese cuisine, our “The Banqueting House ( )”, “China Hall ( )” and “LHGrand ( )” restaurants generally have larger venues and focus on Cantonese dishes and Chinese banquet services, while our “Pot Master ( )” and “Peace Cuisine ( )” restaurants are specialists in pot dishes and Beijing, Shanghai and Sichuan cuisine, respectively. For Asian cuisine, we consider our “Mou Mou Club ( )” and “Gyu-Kaku ( )” brands as pioneers of Japanese dishes, shabu-shabu and yakiniku, in Hong Kong, taking advantage of the growing multi-cultural taste of the dining communities in recent years. Our Asian cuisine offering has been further strengthened by the addition of “On-Yasai ( )” (Japanese premium shabu-shabu), “Yoogane ( )” (Korean chicken galbi) and “Hotpot PNP ( )” (modern hotpot). We consider that we have a balanced profile of self-owned brands and franchised brands. For FY2015, FY2016 and FY2017, our revenue was HK$771.2 million, HK$743.0 million and HK$829.2 million, respectively, whereas our profit and total comprehensive income was HK$46.7 million, HK$40.6 million and HK$24.0 million, respectively. The table below shows a breakdown of our revenue for the years indicated: FY2015 FY2016 FY2017 Revenue Percentage Revenue Percentage Revenue Percentage (HK$’000) (%) (HK$’000) (%) (HK$’000) (%) Chinese restaurants — Self-owned brands 349,699 45.4 292,971 39.4 290,234 35.0 Asian restaurants(1) — Self-owned brands 199,963 25.9 178,622 24.1 198,969 24.0 — Franchised brands 199,639 25.9 250,672 33.7 319,694 38.6 Sub-total of Asian restaurants: 399,602 51.8 429,294 57.8 518,663 62.6 Sale of food ingredients(2) 21,867 2.8 20,781 2.8 20,255 2.4 Total: 771,168 100.0 743,046 100.0 829,152 100.0 Notes: (1) Asian cuisine comprises Japanese and Korean cuisines. (2) As we source various food ingredients in bulk for our restaurants, we may, upon the request of individual customers or other restaurant operators and after accessing our stock availability and operation needs, supply certain excess food ingredients to them on a cost-plus basis. Riding on our success to-date, we have plans to expand our restaurant network in Hong Kong and further enrich our brand portfolio. In July 2017, we obtained franchise rights of “Gyu-Kaku Jinan- Bou ( )”, a well-received sub-brand of “Gyu-Kaku ( )” since its establishment in Japan in March 2016 with restaurants set up in Japan and Taiwan, including the landmark of Taipei 101. We intend to open our first “Gyu-Kaku Jinan-Bou ( )” restaurant in Hong Kong in late 2018, specialising in authentic Japanese dish of yakiniku donburi (Japanese rice bowl topped with grilled meat) targeting the mass market. In February 2018, we entered into a licencing agreement with Rongda, an Independent Third Party, pursuant to which we have obtained exclusive sub-licenced rights to operate restaurants under the “Gyu-Kaku ( )” brand in the South China area (except that the sub-licensor can still operate restaurants in South China area under the said brand). See “— Our business strategies” in this section for details of our expansion plans. – 106 – BUSINESS With our multi-brand strategy, efficient and specialised team of management, and leveraging on our improved capital and corporate resources and arisen corporate image after the Listing, we are committed to further strengthening our market position as a top full service, multi-brand restaurant group in Hong Kong. OUR COMPETITIVE STRENGTHS We believe the following competitive strengths differentiate us from our competitors: A portfolio of iconic brands giving us a strong foundation for business success We attribute our success to a portfolio of iconic brands that enhance the market awareness of our restaurant network and customer loyalty, which in turn generate a stable and consistent guest traffic. We have a proven track record of developing popular self-owned brands and introducing franchised brands which are successful overseas in Hong Kong. We have developed our self-owned brands as some of the icons of quality, value-for-money delicacies in Hong Kong. Our Chinese restaurants, which seek to offer innovative, top notch Chinese dishes, have received numerous accolades. Every year from 2009 to 2015, “The Banqueting House ( )” had been recognised as a “Quality Wedding Merchant” by ESD Life, and our Cantonese dishes have received “The Best of the Best Culinary Award” every year since 2011 in multiple categories such as dim sum, roasted pork and seafood, with the highlights being the Gold with Distinction Award ( ) in Beef category and Lobster category in 2012, in Vegetables (Gourd) category in 2014 and in Crab category in 2016. In terms of Asian cuisine, Mou Mou Club ( )” has been a popular brand of “all-you-can-eat” shabu-shabu since its launch in 2010 and contributed approximately 1.2 million customer visits for FY2017. In 2016, it was helmed with a “Hong Kong Star Brand Award” by the Hong Kong Small and Medium Enterprises Association. We introduced a number of popular franchised brands to Hong Kong. Having envisioned the popularity of Japanese speciality dishes back in late 2000s, we introduced “Gyu-Kaku ( )”, a leading yakiniku restaurant chain with over 620 restaurants in Japan and more than 110 restaurants in other countries as at 31 December 2017. Since 2011, our “Gyu-Kaku ( )” brand has obtained numerous “Best Ever Dining Awards” from Weekend Weekly. In 2015, we introduced “On-Yasai ( )”, a leading brand providing shabu-shabu with an established network of over 370 restaurants in Japan and over 20 restaurants in other countries as at 31 December 2017. In 2017, we introduced “Yoogane ( )”, the largest chicken galbi restaurant chain with nearly 140 restaurants in Korea and nearly 15 restaurants in other countries as at 31 December 2017. We have also obtained franchise rights of “Gyu- Kaku Jinan-Bou ( )”, a well-received sub-brand of “Gyu-Kaku ( )” offering yakiniku donburi. The popularity of our brand portfolio enabled us to achieve competitive market positions: Rank Market share Overall — Full service restaurant group in Hong Kong 5th 1.8% Asian Cuisine — Full service restaurant group in Hong Kong 3rd 3.6% Japanese Cuisine — Full service restaurant group in Hong Kong 2nd 7.9% Note: The industry ranking and market share data are compiled by Frost & Sullivan based on revenue in 2017. – 107 – BUSINESS Diversified and wide customer base through multi-brand strategy Our multi-brand strategy allows us to target diversified customer segments with different spending powers and various culinary preferences. Spending power. Our restaurant network has access to a wide array of customers with different spending power, ranging from mid-to-high end market (mainly at the lower end of this market segment) to mass market. In respect of our Asian cuisine restaurants, while “Mou Mou Club ( )”, “Gyu-Kaku ( )”, “On-Yasai ( )” and “Yoogane ( )” target mid-to-high end market, “Hotpot PNP ( )”, “Sushi Dai ( )” (to be relaunched) and “Gyu-Kaku Jinan-Bou ( )” (with the first restaurant to be opened in late 2018) serve the mass market. Our Chinese restaurants also cater for mid-to-high end (under our “The Banqueting House ( )”, “China Hall ( )” and “LHGrand ( )” brands) and mass market (under our “Pot Master ( )” and “Peace Cuisine ( )” brands). Our restaurants cover a range of average spending per customer (excluding wedding banquet services) from approximately HK$60 to HK$300, which account for a vast customer base in the Hong Kong full service restaurant market. Culinary preferences. Our diverse cuisines offering caters for customers with different culinary preferences. Some of our restaurant brands specialise in Cantonese cuisine (“China Hall ( )” and “LH Grand ( )”) and wedding banquet services (“The Banqueting House ( )”), and others offer specialty dishes such as shabu-shabu (“Mou Mou Club ( )” and “On-Yasai ( )”), sushi (“Sushi Dai ( )”), yakiniku (“Gyu-Kaku ( )”), chicken galbi (“Yoogane ( )”), Beijing, Shanghai and Sichuan cuisine (“Peace Cuisine ( )”), pot dishes (“Pot Master ( )”) and modern hotpot (“Hotpot PNP ( )”).