Envictus International Holdings Ltd (formerly: Etika International Holdings Ltd)

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Proposed Disposal of 72.35% of the Issued and Paid-Up Share Capital of Envictus Dairies NZ Limited

Envictus International Holdings Limited announced that Envictus NZ Limited (the "Vendor"), a subsidiary of the Company, has entered into a conditional sale and purchase agreement ("SPA") with Neil Geoffrey McGarva (as the sole trustee of the Neil McGarva Trust) on 12 April 2019 for the proposed disposal by the Vendor of its entire shareholding interest of 6,802,382 ordinary shares in Envictus Dairies NZ Limited ("EDNZ"), representing 72.35% of the issued and paid-up share capital of EDNZ (the "Sale Shares") for an aggregate consideration of NZD7,000,000, on the terms and conditions of the SPA.

As the Sale Shares represent the entire shareholding interest of the Vendor in EDNZ, EDNZ will cease to be a subsidiary of the Company following the completion of the Proposed Disposal.

More details in https://links.sgx.com/FileOpen/EIHL%20An...eID=552005

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Notification of Inclusion on the Watch-List Due to the Minimum Trading Price Entry Criterion

Singapore Exchange Securities Trading Limited (the "SGX-ST") has notified the Company on 4 June 2019 that the Company will be placed on the Watch-list with effect from 6 June 2019 pursuant to Listing Rule 1311(2) of the SGX-ST Listing Manual.

The Company will take active steps to meet the requirements of Listing Rule 1314(2) of the SGX-ST Listing Manual within 36 months from 6 June 2019, failing which the SGX-ST would delist the Company or suspend trading in the Company’s shares with a view to delisting the Company.

Listing Rule 1314(2) of the SGX-ST Listing Manual states that the issuer will be assessed by the SGXST for removal from the Watch-list if it records volume weighted average price of at least S$0.20 and an average daily market capitalisation of S$40 million or more over the last 6 months.

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Notice of 3 Consecutive Years' Losses

Envictus International Holdings Limited gives notice that:
(i) it has recorded pre-tax losses for the three (3) most recently completed consecutive financial years (based on audited full year consolidated accounts); and
(ii) its latest 6-month average daily market capitalisation as at 28/11/2019 is S$32 Million

More details in https://links.sgx.com/1.0.0/corporate-an...uddies.com

[dydx]

Notice of 3 Consecutive Years' Losses

Envictus International Holdings Limited gives notice that:
(i) it has recorded pre-tax losses for the three (3) most recently completed consecutive financial years (based on audited full year consolidated accounts); and
(ii) its latest 6-month average daily market capitalisation as at 28/11/2019 is S$32 Million

More details in https://links.sgx.com/1.0.0/corporate-an...uddies.com

Very strange, despite the continued losses, the counter has been advancing steadily since mid-Dec23 and is now at its 5 years' high! Today it added another $0.015 and closed at $0.345.

[Shrivathsa]

Interesting that they managed to wipe out losses and turned in a profit. That probably explains why the share price was rising through the year.

https://links.sgx.com/FileOpen/EIHL_%20S...eID=826548

[weijian]

Interesting that they managed to wipe out losses and turned in a profit. That probably explains why the share price was rising through the year.

https://links.sgx.com/FileOpen/EIHL_%20S...eID=826548

The turnaround is coming from the huge SSS (same store sales) improvement in its Texas Chicken outlets in FY24 compared to FY23.

no. of stores in FY24=95
no. of stores in FY23=92

There is a 44% increase in revenue with a net 3 stores added. With ~5-6 stores closed down in FY24 and new stores not yet matured, "effective SSS" will be much higher at probably 55-60%? This increase is really impressive and but more so puzzling because peers like McD/KFC had definitely suffered badly in the face of popular boycott movement in Msia, after the Israel-Hamas War started. So the logical explanation is that it has actually managed to fly under the radar (despite its "Texas" name) and benefitted from McD/KFC customers turning to them.

Besides the usual fixed fees like staff/leasing/reno operating a restaurant, restaurant franchises have additional fixed fees like franchise (master/store) and annual software/IP licensing. So the barrier to achieve escape velocity from fixed costs is much higher. But when it does escape, it soars and it seem to have just achieved that.

Texas Chicken has copied from its competitors' playbook - limited time promotions, drive throughs etc. Will be interesting to see what happens in the coming year or two as McD/KFC who are definitely much bigger, fight to win back the Masian consumer's mindshare.