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Chairman's Statement

When we first started at
East Coast Seafood Centre

Recognition is the
greatest motivator

Your dining experience is
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Dear Shareholders,

We entered FY2020 with full confidence that we were able to maintain and likely surpass our FY2019 performance as we surged ahead with a healthy rate of expansion of our F&B network in the first quarter of FY2020. Regrettably, in the face of an unprecedented challenging global environment, the Group was not spared from the widespread adverse impact arising from the COVID-19 pandemic. The management team, despite proactive monitoring and quick adoption of recovery decisions and actions, had to deliver a lossmaking set of results for FY2020.

The Group charted an expansion plan to further extend our reach locally and regionally, across our various concepts at the beginning of FY2020. After adding four outlets in just three months, our plans were put to an abrupt stop by the outbreak of the pandemic, forcing the Group to switch gears as we focused on sustaining operations of existing outlets, diversifying revenue sources and customer bases, and protecting the livelihood of our team to reduce the negative impact to a minimal.

The COVID-19 pandemic presented a unique challenge but also a great opportunity for the Group to display its decisive leadership and ability to make profound strategic decisions. When the People’s Republic of China (“PRC”) was first hit by the pandemic, we bit the bullet and closed the under-performing JUMBO Kitchen outlet at Raffles City prior to the expiry of the lease, to cut losses. During the circuit breaker in Singapore, we utilised the lull period to innovate, producing new products and concepts, giving rise to high tea offerings at JUMBO Seafood at ION Orchard and the birth of HACK IT – the Group’s first virtual brand, targeting at a local community who are young at heart, adventurous and want to enjoy affordable quality food at the comfort of their homes.

Though we might not be dancing out of this storm, it should be acknowledged that the conservatism and prudency that the management team had adopted in the past has shielded us from the dire situations that many of our peers in the industry are facing. Through the years of healthy profits and shoring up of reserves, our strong balance sheet has allowed us to weather through this challenging year. In addition, our strong credit standing, pragmatic management approach, sound business model and reputable quality products, have supported us in securing supplementary sources of funding to re-embark on our growth plans when the environment is more conducive. Our franchisees, in the less affected cities, are still pushing ahead with the establishment of more outlets in upcoming months, a clear demonstration of the confidence they have in our brands, and a reflection of the demand for our cuisines in those markets.

As we enter 2021, there is still little visibility on an end to the COVID-19 pandemic as sporadic outbreaks around the world continue to be reported and new strands of virus emerging. Meanwhile, different countries are at different stages of containment, though it is fair to say that most are striving to head toward gradual opening of their economies, as governments attempt to find the balance between lives and livelihoods. The Group does not expect to go back to the heydays until vaccines against the COVID-19 virus are proven to be effective and widely available to the public around the globe. Despite demonstrating business resilience thus far, looking ahead, the prospect of intermittent lockdowns and rising unemployment is likely to persist, which will continue to have a negative impact to the Group in terms of lower footfall at restaurants and weaker sales revenue. The Group has thus reviewed and pivoted our growth strategy to leverage on our strong brand presence to build a stronger foothold in our home country, Singapore, with a multiple pronged approach – new concepts and new product offerings, both organically and inorganically. We will also continue to focus on managing our liquidity and optimise our costs.

On behalf of everyone at JUMBO, we thank all our shareholders, business partners, customers and our dedicated team for the ongoing support, especially through this tough period and having confidence in our future. We look to a better year ahead, as our team surge forward to serve our customers with quality food and an exceptional experience.

Tan Cher Liang

Independent Chairman