Zitong Financial App News, Singapore Food Holdings (08496) announced that the group operates a central kitchen at 171st Kampong Ampat,#06-12,KA Foodlink,Singapore 368330, preparing dough and a number of bakery products for delivery to the group's bakeries and restaurants. During an inspection conducted by the Singapore Food Bureau on 26 October 2021, the Singapore Food Bureau found that the sanitary conditions, food safety practices and maintenance of the Central Kitchen and the food delivery vehicles operated by the Group did not comply with the regulatory standards and food safety requirements of the Singapore Food Bureau. Following the inspection, the Singapore Food Bureau has taken the following regulatory actions against the group:
(I) suspension of central kitchen food business with effect from 26 October 2021 until further notice
(ii) directing the Group to recall a wide range of food products distributed to certain bakeries of the Group from the central kitchen; and
(iii) instructed the Group to take necessary measures to improve its food safety practices and the cleanliness of its premises.
The board of directors of the company is of the view that the regulatory action will only lead to a temporary interruption of the Group's business operations and will not have a significant impact on the Group's business and long-term financial performance, taking into account the following:
(I) the regulatory action only involved the operation of the central kitchen and did not result in the suspension of the business of any bakeries and restaurants or restaurants of the Group.
(ii) the bakery of the group is equipped with necessary equipment and facilities for preparing dough and baking products. As an emergency measure, the group will maintain the supply of baked products by conducting on-site food preparation processes in its bakeries.
(iii) the Group is arranging the necessary measures to improve the cleanliness of its food safety practices and its business premises, including the cleaning and disinfection of the central kitchen and its food delivery vehicles to comply with the regulatory standards and food safety requirements of the Food Authority of Singapore. The Group will also arrange further training for its employees on appropriate food safety management; and
(iv) upon completion of the cleaning and disinfection of the central kitchen and the food delivery vehicle, the Group will immediately apply to the Singapore Food Bureau to revoke the suspension of the food business in the central kitchen.