Chairman's Statement

Extracted from Annual Report 2016

Dear Shareholders,

2016 was an eventful year in the Group's history as we marked a major milestone through our successful listing on the Catalist board of SGX-ST. Taking the next step towards our vision to be a leading food and beverage company, we were deeply appreciative of the warm reception we received from the market.

In our stride to grow the business by establishing exciting restaurant brands and providing great dining experiences, we are glad to have received two Certificates of Excellence from Trip Advisor for Indobox and So Pho and, within our staff, 41 Excellent Service Awards from SPRING Singapore for 2016. The recognition of our efforts continues to steady our course of expansion.

It is with great pleasure that we present our introductory Annual Report for the financial year ended 31 December 2016 ("FY2016"). The Group had a decent performance despite less than favourable market conditions, achieving a 9.5% year-on-year increase in revenue to S$56.8 million.

Year in Review

We first set out to list our Group to ensure continuity and progress of our business on a larger scale. As a specialist in multi-cuisine concepts and restaurant operations, the opportunity to list on the Catalist board of SGX-ST provided us with a good foothold in our path to enhance our brand value and amplify our presence on a regional level.

Our maiden year as a listed company was one of strategising and planning as we persisted through challenges stemming from macro environmental factors, which led to consumers' cautious spending and a decline in the Food & Beverage Services Index ("FSI") in Singapore for 2016.1

Nonetheless, we were able to increase our revenue and expand our operations partly through contributions from our four new restaurant outlets in Raffles City (under the brand name "Streats"), Ngee Ann City (under the brand name "Bali Thai") and two outlets in Waterway Point (under the brand names "Bali Thai" and "So Pho") respectively.

At the close of FY2016, our nine proprietary restaurant brands were represented by 33 restaurants in Singapore and two restaurants in the PRC.

A breakthrough in our expansion was our online food ordering platform. By the end of FY2016, all nine of our brands were made available online. The expansion saw online food ordering and delivery services achieving revenue of S$2.5 million in FY2016. We are pleased with the good progress we made in our foray into online food ordering and delivery services and hope to expand upon these promising results in FY2017.

Through the year, we continued to improve our operational efficiency by upgrading our business management systems. This will help us pinpoint areas of improvement and alleviate unnecessary processes to increase overall staff productivity and save costs in the long run.

Outlook and Future Plans

In view of the challenges, we remain cautious but maintain our intention to grow our operations. We have moved towards cost efficiency, lower risk avenues for growth and aim to make further improvements to lower operating costs in the long run.

In Singapore, we target to grow our business with several new outlets in the coming months. Additionally, based on our success in FY2016 and the rising demand for food delivery, we hope to increase the reach of our online food delivery services. These plans will help us capture more of the market share and heighten our market position.

Outside of Singapore, we continue to assess the feasibility of further expansion into the PRC and opening new restaurants in the region. While organic expansion and expansion via strategic alliances, acquisitions and joint ventures continue to be viable options, we are focusing on franchising which will hasten our growth albeit at a lower level of investment and risk.

In order to support our expansion plans comprehensively, we have begun plans to increase the use of consumer-focused technology like self-ordering devices and upgrade other operations systems to provide us better analytics. These measures are aimed at saving costs in the long run and improving overall business productivity.

As we move into the next financial year, we look at using the foundation we have built to create increased value and achieve new milestones both locally and regionally.

Dividends

The Directors have proposed a final dividend of 0.61 cents per share or 60% of the Group's net profits for FY2016. This is in line with our intention as stated in our Offer Document as a token of our gratitude for the unwavering support from our shareholders.

The proposed dividend is subject to the approval of shareholders at the upcoming Annual General Meeting ("AGM").

In Appreciation

We would like to thank our board of directors and management team for their valuable guidance through the year as we commenced this new chapter in our journey. We would also like to extend our appreciation to all our customers, shareholders, partners and staff who have provided us with their dedication and continued support.

Last but not least, it is with much gratitude that we recognise the professional working team, management and staff for the efforts put in during the listing process.

We look forward to sharing another year of innovation, expansion and accomplishment with all our stakeholders.

1http://www.singstat.gov.sg/docs/default-source/default-document-library/publications/publications_and_papers/services/mrsdec16.pdf

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