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Discontinued Operation

12 Months Ended

Dec. 31, 2024

Discontinued Operation [Abstract]

Discontinued Operation

5.

Discontinued Operation

On Transaction Date, the Company entered into a Share Purchase Agreement for the sale of 100% of equity interest of Popeyes China to PLK APAC Pte. Ltd., a subsidiary of RBI. The disposal of Popeyes China represents a strategic shift for the Company, as a result of qualifying for reporting as discontinued operations. Financial position, results of operations, and cash flows for Popeyes China are reported as discontinued operation for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis.

The results of the discontinued operation for the years ended December 31, 2024 and 2023 are as follows:

(a)

Results of discontinued “Popeyes China” operation

		For the year ended December 31,
		2024 (Note)				2023 (Note)

Company owned and operated store sales			30,875,454				15,761,230
Other revenues			22,449				13,143
Total revenues			30,897,903				15,774,373
Costs and expenses, net
Company owned and operated stores
Food and packaging			11,978,585				6,839,014
Store rental expenses			8,735,620				6,200,927
Payroll and employee benefits			7,971,499				6,173,813
Delivery costs			2,362,132				510,438
Other operating expenses			2,810,735				2,783,167
Store depreciation and amortization			1,888,301				877,370
Company owned and operated store costs and expenses			35,746,872				23,384,729

Marketing expenses			3,828,211				5,506,486
General and administrative expenses			8,630,449				18,363,979
Franchise and royalty expenses			1,895,613				1,885,515
Other operating costs and expenses			9,129				-
Other income			(50	)			(108,615	)
Total costs and expenses, net			50,110,224				49,032,094

Operating loss			(19,212,321	)			(33,257,721	)
Interest income			3,482				66,912
Interest expense			(11,921	)			(5,652	)
Foreign currency transaction gain/(loss)			(130	)			-

Loss before taxation			(19,220,890	)			(33,196,461	)
Income tax expenses			-				-

Net loss for the year			(19,220,890	)			(33,196,461	)
Gain on disposal of Popeyes business			70,664,684				-

Net Income/(loss) from discontinued operation			51,443,794				(33,196,461	)

Note: For the years ended December 31, 2024 and 2023, Popeye’s operating results included the periods from January 1, 2024 to June 28, 2024, and from March 30, 2023 to December 31, 2023, respectively.

(b)

Effect of disposal on the financial position of the Group

		As of December 31, 2023

Cash			1,271,738
Inventories			852,604
Prepaid expenses and other current assets			2,732,684
Total current assets			4,857,026

Property and equipment, net			25,884,026
Intangible assets, net			36,482,168
Operating lease right-of-use assets			63,641,599
Other non-current assets			4,561,539
Total non-current assets			130,569,332
Total assets			135,426,358

Accounts payable			5,074,452
Amount due to related party			1,002,196
Operating Lease liabilities-current			11,043,233
Other current liabilities			46,438,123
Total current liabilities			63,558,004

Operating Lease liabilities-non current			54,029,794
Other non-current liabilities			259,578
Total non-current liabilities			54,289,372
Total liabilities			117,847,376