HKEX-listed Cafe de Coral plans China expansion

It is looking to penetrate residential areas in Tier 1 cities.

Hong Kong-listed restaurant group Cafe de Coral has expressed plans for an expansion in China, where domestic consumption is expected to rebound at a faster rate due to its early control of the COVID-19 outbreak, the company announced.

In particular, the group is seeking to penetrate residential areas in Tier 1 cities, whilst expanding  its presence in Tier 2 and 3 cities.

As of 31 March 2021, the Group had a network of 352 stores in Hong Kong, declining from 356 in 2020, and 121 stores in Mainland China, where it expanded from 114.

The group’s profit attributable to equity holders soared 387.7% to $46.25m (HK$359.1m) for FY 2021, which it attributed to government monetary relief of $82.29m (HK$638.9m). Meanwhile, its revenue fell 15.7% to $864.79m (HK$6.71b).