Tam Tsai International is a leading and well-known restaurant chain operator of fast leisure restaurants under the brands of "Tam Tsai Yunnan Rice Noodle" and "Tam Tsai Sango Rice Noodle" in Hong Kong. it also has operations in mainland China and Singapore and specializes in rice noodles.

As at the latest practicable date, the company operated a total of 156 restaurants, including 76 Tam Tsai restaurants and 74 Sam GE restaurants covering 18 districts in Hong Kong, Kowloon and the New Territories, 3 Tam Tsai restaurants in Shenzhen, mainland China and 3 Sam GE restaurants in Singapore. All of the company's restaurants are self-operated under two own brands (Tan Tsai and third Brother).

During the track record, Tam Tsai successfully maintained the growth in the number of restaurants and maintained a relatively stable level of financial performance. From the beginning of the track record period to the last practicable date, the number of restaurants has increased from 107 to 156. Based on the company's success in Hong Kong, it is planned to continue to expand its restaurant network in the existing market and open up new international markets.

Using the proceeds from this IPO fund-raising, Tam is expected to expand the restaurant network in Hong Kong, mainland China and Singapore, and to enter the Japanese and Australian markets in the future. Management believes that this will help seize potential business opportunities and consolidate its market position.

For the years ended 31 March 2019, 2020 and 2021, the company recorded income of HK $1.556 billion, HK $1.691 billion and HK $1.795 billion respectively, representing a compound annual growth rate of 7.4% during the track record period. In the same year, the company's annual profit was HK $198 million, HK $191 million and HK $288 million respectively, representing a compound annual growth rate of 20.7% during the track record period.

As can be seen from the above data, the company's profit for the year ended 31 March 2021 was significantly higher than that for the year ended 31 March 2021, mainly due to one-off government subsidies and rent concessions related to the COVID-19 epidemic.

Excluding the government subsidy of HK $155 million related to COVID-19 and the rental concession of HK $15.6 million (including HK $11.7 million including other income and HK $3.9 million of turnover rental offset by rent and related expenses), the company recorded a decrease in net profit for the year ended March 31, 2021 compared with the year ended March 31, 2021, mainly due to a decrease in revenue per restaurant due to a decrease in patronage. The increase in takeout and home orders led to an increase in consumables and packaging expenses; and an increase in depreciation expenses related to the expansion of the restaurant network. It is understood that Tan Tsai and San GE brands have a history of more than 24 years and 12 years respectively, and have successfully established an outstanding reputation for providing high-quality and delicious rice noodles in Hong Kong's food culture.

Inspired by southwestern Chinese cuisine, the company's rice noodles provide a "mash-up" food experience through a variety of ingredients, soup base and spicy, and the company's level 10 spicy meter has become a well-known spicy measure in Hong Kong's food and cultural circles.

Tam Tsai's signature soup (such as spicy soup, spicy soup, etc.) and signature dishes (such as bandit chicken wings, etc.) have become customers' favorite delicacies. A wide range of ingredients, soup base, spicy degree, snacks and drinks to choose from and tailored to individual tastes can be mixed into countless combinations to allow customers to taste different flavors, thus attracting them to patronize the restaurant again.

According to Euromonitor, the brands of Tan Tsai and San GE enjoy a high reputation among the major Asian noodle shops in Hong Kong. After years of development, careful development and improvement, the company believes that Tan Tsai and Sango rice noodles have become a new generation of popular and refreshing delicacies in Hong Kong's food culture. Tam Tsai was founded by Tam Tsai's founding shareholders in 1996. Since the opening of the first Tam Tsai restaurant, Tam Tsai has quickly gained popularity in Hong Kong.

In 2008, the founding shareholders of the third Brother founded the third Brother based on its own business philosophy, as an independent restaurant brand, offering similar meals but different soup bottoms. Since then, Tan Tsai and the third elder brother have respectively developed and established their own brand image.

In 2018, Donlido Hong Kong saw the great development potential of Tam Tsai and Brother Sam and the catering industry in Hong Kong and the huge potential of Tam Tsai and Brother Tam and Brother in the international catering industry, so it acquired two company groups operating chain restaurants under the brands of Tam Tsai and Brother Sam.

After years of development, each has become a unique and well-known brand with its own audience, but on the whole, there is no significant difference between the two brands in terms of market positioning, major menu mix and customer base.

For example, Tam Tsai and the third Brother have their own loyal supporters, and they prefer one of them because of the soup base, ingredients, seasoning, brand image, restaurant layout and customer service. Therefore, the company believes that maintaining the two brands will help the company to take advantage of the strong brand awareness of each brand and thus gain a higher market share than the company can achieve by merging two brands or terminating either brand.

The target clients of Tam Tsai and the third Brother include people from all walks of life, mainly young people and young to middle-aged people. Tam Tsai and the third Brother are positioned as fast leisure restaurants that aim to provide quality food and fast services at affordable prices.

The company carefully selects different ingredients and spiciness when preparing the soup base of Tan Tsai and third Brother, in order to create different tastes for the two brands. Each brand has its own unique combination of rice noodles and ingredients, soup base, snacks and special drinks. In addition, the restaurant designs of the two brands are very different. Each uses a distinct color system for the restaurant storefront and environment, and has created a unique brand image. According to Euromonitor, the company's market share has increased from 2019 and continues to have a competitive position in the market, as follows:

Tam Tsai plans to implement the following business strategy in the future: expand the restaurant network. Expand the central kitchen in Hong Kong and set up new central kitchens in mainland China, Singapore and Australia; renovate and improve the operating equipment of restaurants; enhance customer experience and operational efficiency through digitization; international brand building and new market entry promotion; continue to invest in brand building and marketing; implement measures to promote same-store revenue growth.