Zhitong Financial APP News, Tan Tsai International (02217) issued an announcement on October 31, 2023, a subsidiary of the company Tam Jai Australia Pty Ltd. With STG Food Industries 5 Pty Ltd, a subsidiary of ST Group. Enter into a joint venture agreement to regulate the operation of three Brother brand restaurants and related takeout-to-home services (the business) in Australia and New Zealand in Australia and New Zealand.

On October 11, 2023, through the understanding reached by the parties on their intention to enter into a joint venture agreement, Tam Jai Australia Pty Ltd. And STG Food Industries 5 Pty Ltd. A joint venture company, Tam Jai Aust JV Pty Ltd, has been established in Australia, which is a limited company with a total paid-up share capital of A $100 (consisting of 100 common shares), in which the Group and ST Group hold 49 per cent and 51 per cent, respectively. The initial registered capital of the joint venture company is A $2 million, of which the Group will contribute A $980000 and ST Group will contribute A $1.02 million to inject into the registered share capital of the joint venture company in cash.

According to the announcement, under the joint venture agreement, the company and ST Group will cooperate to develop the joint venture company, and the joint venture company is expected to enter into further subsidiary franchise agreements with other subsidiary franchisees from time to time to operate the business. The Group also reserves the right to open and operate its own restaurants under the brands of Tam Tsai and San GE in Australia and New Zealand. The Board is of the view that the establishment of joint ventures and franchise arrangements will help the Group to expand its overseas restaurant network with higher efficiency and lower entry costs. With ST Group's track record in developing a number of restaurant brands and based on its experience in the local market, ST Group is an ideal partner to help the Group seize growth opportunities in Australia and New Zealand.

In addition, the company entered into a memorandum of understanding and letter of intent with a potential Philippine partner, BVCUISINE Inc. (BVCUISINE), a subsidiary of Suyen Corporation, in August 2023 and is exploring the possibility of entering into the Philippine market (potential Philippine franchise) in the form of a franchise arrangement with BVCUISINE.

Under the potential Philippine franchise, it is expected that the Group will grant an exclusive license to BVCUISINE to open and operate restaurants in the Philippines under several of the Company's brands, which will have a fixed initial period and can be renewed, subject to certain minimum development obligations, including, but not limited to, the opening of a minimum number of restaurants within a specified period. It is expected that the Group will collect certain franchise fees from BVCUISINE in accordance with the mutually agreed terms and / or fee structure, and will provide BVCUISINE with the necessary training and support, design services and licenses to use the Group's intellectual property rights during the franchise period.