PRINCIPLES OF ACCOUNTING & FINANCE

01A N N U A L R E P O R T 2021

A N N U A L R E P O R T 2 0 2 1

K I M LY L I M I T E D02

Content

02 CORPORATE PROFILE

03 OUR BUSINESSES

04 OUR NETWORK

05 MILESTONES

07 MESSAGE TO SHAREHOLDERS

17 BOARD OF DIRECTORS

19 KEY MANAGEMENT

22 FINANCIAL HIGHLIGHTS

24 FINANCIAL REVIEW

27 CORPORATE INFORMATION

This annual report has been reviewed by the Company’s Sponsor,

PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”). It has not

been examined or approved by the Singapore Exchange Securities Trading

Limited (the "Exchange") and the Exchange assumes no responsibility for the

contents of this document, including the correctness of any of the statements

or opinions made or reports contained in this document.

The contact person for the Sponsor is Mr. Joseph Au, 16 Collyer Quay, #10-00

Income at Raffles, Singapore 049318, [email protected] sg.

Corporate Profile

Kimly Limited (the “Company” or “Kimly”, and together with

its subsidiaries, the “Group”) is one of the largest traditional

coffeeshop operators in Singapore with more than 30 years

of experience. The Group operates and manages an extensive

network of 85 food outlets under “Kimly”, “foodclique” and a third

party brand, 139 food stalls comprising Mixed Vegetable Rice,

Teochew Porridge, Dim Sum, Seafood “Zi Char”, Kanaaji Japanese

Tonkatsu, two Tonkichi restaurants and seven Rive Gauche

confectionery shops.

While keeping to the heritage of a traditional coffeeshop that

provides affordable food for all, Kimly is also constantly

modernising to keep up with the times and changing consumer

trends, through digitalisation, strengthening the operations and

upscaling capabilities. All its food retail products are currently

available for online ordering through Deliveroo, Foodpanda,

GrabFood and Oddle.

The Group continues to proactively extend its footprints and

revenue streams through suitable merger and acquisition

(“M & A”) projects.

The Company was successfully listed on Catalist of the SGX-ST

on 20 March 2017.

K I M LY L I M I T E D02

03A N N U A L R E P O R T 2021

OUTLET MANAGEMENT DIVISION

Under our Outlet Management Division, the Group operates

and manages 67 coffeeshops, and seven industrial canteens,

and two food courts under the “foodclique” brand.

With our proven and established track record as a food outlet

operator, we have been able to attract quality and anchor

tenants with whom we have forged strong longstanding

relationships. As at the date of this report, Kimly maintained

a healthy occupancy rate of 98% for a total of 680 stalls within

our managed food outlets.

FOOD RETAIL DIVISION

Catering to a broad and varied customer base and supported by

our Central Kitchen, the Group’s 139 food stalls, two Tonkichi

restaurants and seven Rive Gauche confectionery shops under

our Food Retail portfolio comprises:

Our Central Kitchens supply sauces, marinades, pastries

and semifinished food products to our Mixed Vegetable

Rice, Seafood “Zi Char”, Dim Sum stalls and Rive Gauche

confectionary shops.

OUTLET INVESTMENT BUSINESS DIVISION

Outlet Investment Business Division assists the group in

securing sustainable and stable rights of use to strategic

business locations, through investments into properties

(freehold and leasehold), at the same time allows the group to

benefit from rental income and/or capital growth. The Group

has acquired five coffeeshops, three industrial canteen units

and a restaurant unit during FY2020.

Corporate Profile

Our Businesses

85 FOOD OUTLETS

148 FOODSTALLS / RESTAURANTS / PATISSERIE

55 OUT OF 85 FOOD OUTLETS ARE OPEN 24 HOURS

K I M LY L I M I T E D04

Our Network

* Picture for illustration purposes only.

KIMLY GROUP OUTLETS

TENDERFRESH OUTLETS

K I M LY L I M I T E D04

The Group has an extensive network of 85 food outlets located across the heartlands of Singapore, with its food stalls/ restaurants/patisseries serving a variety of dishes catering to consumers’ diverse preferences. 55 out of 85 food outlets are open 24 hours.

60 MIXED VEGETABLE RICE / TEOCHEW PORRIDGE

49 DIM SUM

2 TONKICHI RESTAURANTS

28 SEAFOOD “ZI CHAR”

7 RIVE GAUCHE CONFECTIONERY SHOPS

2 KANAAJI KATSU JAPANESE FOOD STALLS

05A N N U A L R E P O R T 2021

Milestones 2017 2018 2019 2020 2021

1 JUL – Acquisition of Tonkichi & Rive Gauche Patisserie

2 JUL – Commenced operations with the first digitalized tray return & rewards system at Bukit Batok 292 Coffeeshop

1 MAY – Launch of beverage line “HOLIM”

1 JUL – Successfully tendered for 3 HDB coffeeshops under HDB’s Price- Quality-Method (“PQM”)

1 AUG – Successfully launched the iconic Kimly Bak Kwa Bao

3 NOV – Entered into a business agreement to operate and manage the first halal coffeeshop, Kedai Kopi

1 NOV – Successfully acquired our first coffeeshop property, Teck Whye 143 coffeeshop

21 JAN – Entered into a joint venture agreement to operate and manage Lorong Ah Soo 134 Coffeeshop

1 APR – Acquisition of 60% of the shares in Klovex Holdings Pte. Ltd.

29 APR – Entered into a joint venture agreement to operate and manage Bukit Batok 233 Coffeeshop and Serangoon 153A Coffeeshop

1 JUL – Opened second Kedai Kopi at 12 Haig Road

15 MAY – 122 Food stalls onboard on third party food delivery platform

3 JUN – Completion of acquisition of 6 food outlet properties

26 JUN – Successfully acquired 25% partnership interest in North View Investments LLP

30 JUN – Acquisition of Ang Mo Kio 347 Coffeeshop

26 AUG – Acquisition of Clementi 380 Coffeeshop

9 SEP – Entered into joint venture agreements to manage and operate Bukit Batok 376 Coffeeshop and Upper Aljunied 1 Coffeeshop

29 SEP – Entered into a joint venture agreement to manage and operate Choa Chu Kang 429A Coffeeshop

1 OCT – Completion of acquisition of 75% of the stake in Tenderfresh Business

20 MAR – Successfully listed on the Catalist Board of the SGX-ST

3 JUL – Acquisition of operating leases & business operations of Bedok 631 coffeeshop, 21 Woodlands Close Industrial Canteen

30 SEP – Completed HQ & central kitchen annex block’s expansion project

K I M LY L I M I T E D06

Kedai Kopi at 12 Haig Road

Adding Tenderfresh brands into the food mix for our food retail division

Expansion of Footprints

Accelerating Digitalisation

Developed in-house proprietory web application to facilitate the submission and

compilation of the weekly Fast and Easy Testing (“FET”)

NETs Unified Payment terminal deployed across

all food outlets

* Photos taken before Covid-19 restrictions

07A N N U A L R E P O R T 2021

Message to Shareholders

One of our major acquisitions in 2021 is our completion of the acquisition of a 75% stake in Tenderfresh Business for S$54 million on 1 October 2021. In 2020, we entered into a business agreement (51% stake by Kimly) with Tenderfresh Fried & BBQ Chicken Pte Ltd to operate a Halal themed coffeeshop, Kedai Kopi, at Block 380 Clementi Avenue 5.

Dear Shareholders,

On behalf of the Board of Directors (the “Board”), I am pleased to share our results for the financial year ended 30 September 2021 (“FY2021”). I am delighted to update that we have achieved healthy growth despite the headwinds and challenges brought by the pandemic related restrictions and challenges. We have also expanded our operations through organic growth, acquisitions and joint ventures during FY2021. I am proud to share that the Group has further built upon its strong foundation to grow further in our Food Retail division.

The continuation of the pandemic coupled with measures for endemic living continued to pose certain challenges for the overall food and beverage (“F&B”) industry. However,