Kingza International to Be Listed on the OTC Market in Early September

Kingza has built a diversified global food and beverage platform with a multi-brand strategy and stable, positive operations, planning to complete 11 overseas outlets and expand into the Seattle market in the United States

Founded in December 2015 with a paid-in capital of NT$170 million, Kingza was listed on the Emerging Stock Market in June 2023. The company currently operates six major food brands: “Ginza Anzu Tonkatsu,” “Osaka Ohsho,” “Duan Chun Zhen,” “Gyukatsu Kyoto Katsugyu,” “Kyochon Chicken,” and “Xingmei Canteen.” Kingza operates 54 directly managed stores in Taiwan and has sublicensed its two brands, “Duan Chun Zhen Beef Noodles” and “Gyukatsu Kyoto Katsugyu,” to franchisees in the United States and Hong Kong, with a total of 10 overseas stores, gradually expanding its revenue scale. For three consecutive years since 2021, annual revenue has continued to grow. In the first half of 2024, consolidated revenue reached NT$673 million, marking a 16.14% year-on-year increase – setting a record high for the same period and outperforming the overall growth trend of Taiwan’s food and beverage industry.

In 2023, Kingza’s revenue from directly managed stores in Taiwan increased by 45%, driven by a 15% expansion in store openings and strategic adjustments focusing on mid-tier brands such as “Ginza Anzu Tonkatsu,” “Gyukatsu Kyoto Katsugyu,” and “Kyochon Chicken,” optimizing the brand portfolio. As a result, the revenue share from mid-tier brands increased to 78% in the second quarter of this year. By refining menus, optimizing production and delivery processes, and enhancing consistency from the central kitchen to outlets – along with boosting automated frozen food sales – Kingza maintained a gross margin of 48% in the first half of this year, comparable to 48.39% for the full year of 2023, despite fluctuations in raw material prices.

Kingza acquired the Taiwan agency rights for “Kyochon Chicken” last year, generating NT$30–40 million in revenue. Currently, four directly managed stores have opened in Taiwan, sparking strong interest in the local franchise market. The company aims to launch its first franchised outlet in Taiwan in Q4 of this year, kickstarting Kingza’s franchise business in Taiwan and boosting related revenue streams.

For overseas sublicensing, Kingza is exporting its “Duan Chun Zhen” and “Gyukatsu Kyoto Katsugyu” brands to franchise partners in the U.S. and Hong Kong, targeting a total of 11 franchised outlets this year. This includes five “Duan Chun Zhen” outlets in Hong Kong and three in California (totaling eight); and two “Gyukatsu Kyoto Katsugyu” outlets in Hong Kong, with one more expected in Q4, totaling three this year. Leveraging its strong track record in food operations management, Kingza has attracted domestic and international brands for licensing and expanded agency brands globally. Through a sublicensing business model, Kingza differentiates itself from competitors. The company plans to expand into the Seattle market in the U.S., aiming to add 2–3 new countries or regions each year and sustain an annual outlet growth rate of 20%.

Looking ahead, Kingza will continue to strengthen its market share in Taiwan, targeting 8–10 new directly managed stores annually. The company will use the “Kyochon Chicken” brand to launch its franchise business in Taiwan while continuing to expand the sublicensing of “Duan Chun Zhen” and “Gyukatsu Kyoto Katsugyu” overseas. This approach ensures continued growth from diverse revenue streams, including food and merchandise sales, franchising, and licensing. Additionally, as deferred revenue from prepaid dining credits is gradually recognized as operating income, Kingza continues to optimize its revenue structure and control operating expenses, maintaining stable and positive operations.