Risk of a deteriorating Hong Kong restaurant environment following the emergence of COVID-19
First written in FY2020-Q3. 5 of 18 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2025-H1.
Asmo moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 6 of 13 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2025-H1Continued weak demand due to post-pandemic outbound spendingAnnual report
「The phenomenon known as “northbound consumption,” in which Hong Kong residents travel to mainland China, including Shenzhen, to shop and dine rather than spending in Hong Kong, continues and is having a significant impact on the performance of Japanese supermarkets and department stores.」
Even after pandemic-related restrictions on movement were eased, Hong Kong residents have continued to spend outside the territory, and this continues to hinder the recovery of domestic retail and food service demand. - FY2024The slowdown in the post-pandemic demand recovery continuesAnnual report
「This trend is unlikely to improve in the short term. For the time being, Hong Kong cannot expect the return of the economic conditions that had depended on inflows of people, goods and money from outside the territory for travel, shopping and the holding of large-scale exhibitions.」
The company states that a recovery in the inflow of people, goods and money from outside Hong Kong is unlikely in the short term even after restrictions on movement are eased, and continues to identify a slowing post-pandemic demand recovery and a structurally difficult demand environment. - FY2024-Q3Continued slowdown in the post-pandemic demand recoveryAnnual report
「In Hong Kong, the recovery trend from the pandemic that emerged temporarily during the first quarter clearly slowed around the end of the second quarter. Revenue in the restaurant division for the first nine months of the current fiscal year was ¥955 million, down 20% from the same period of the previous year, which had not yet fully emerged from the pandemic.」
Although pandemic-related restrictions on movement were eased, the expected recovery in Hong Kong’s food service demand slowed, and revenue in the restaurant division declined 20% year on year. - FY2024-Q2Failure of demand to recover after the pandemicAnnual report
「In Hong Kong, as in the first quarter, no recovery has been seen in demand in the retail and food-service industries that was expected in the post-COVID period. Temporary factors include Hong Kong residents, fatigued by the pandemic, traveling to Japan and other Asian countries, as well as an outflow of people to mainland China, particularly on weekends. A more structural factor is that Hong Kong society is entering a period of fundamental change, which is thought to have been triggered by the political turmoil in 2018.」
Although pandemic-related restrictions on movement themselves were eased, Hong Kong’s retail and food service demand did not recover as expected after the pandemic. The company explains that changes in travel destinations and social structures have had an impact. - FY2024-Q1MitigatedAnnual report
「In Hong Kong, travel between Hong Kong and mainland China was normalized in February 2023 following the easing of the zero-COVID policy, and a rapid economic recovery was expected. However, after travel was normalized, the number of Hong Kong residents crossing the border to mainland China and overseas for shopping and dining increased sharply, far exceeding the number of visitors entering Hong Kong from mainland China. In addition, tourists’ consumption patterns have shifted away from the former focus on shopping, and the economic recovery has therefore been extremely gradual.」
Travel between Hong Kong and mainland China returned to normal in February 2023, reducing the risk of the large-scale restrictions on movement imposed previously. However, the company explains that the recovery in demand has been extremely gradual. - FY2023MitigatedAnnual report
「In the ASMO CATERING (HK) business, economic activity in Hong Kong is finally beginning to return to normal following the lifting in January 2023 of various COVID-19 restrictions in mainland China.」
The company explains that the lifting of various restrictions in mainland China in January 2023 put Hong Kong’s economic activity and revenue in the business on a recovery trend. - FY2023-Q3MitigatedAnnual report
「In Hong Kong, COVID-19 control measures for Hong Kong residents and travelers from overseas and Taiwan were eased in December 2022, and the movement of people has begun to recover. As a result, revenue in the ASMO CATERING（HK）business is on a gradual recovery trend.」
The company explains that Hong Kong eased its COVID-19 control measures in December 2022, putting the movement of people and revenue in the Hong Kong business on a recovery trend. - FY2023-Q2MitigatedAnnual report
「Hong Kong has a relatively well-developed healthcare system compared with mainland China, so it is unlikely to impose blanket restrictions whenever cases rise, as it did previously. The company therefore judges that the possibility of performance being significantly affected by large-scale restrictions on movement is low.」
The company indicates that Hong Kong is unlikely to impose blanket restrictions of the kind used previously when cases rise, explaining that the risk of further deterioration in the city’s food service environment due to COVID-19 has partially declined. - FY2023-Q1MitigatedAnnual report
「Hong Kong has a relatively well-developed healthcare system compared with mainland China, so it is unlikely to impose blanket restrictions whenever cases rise, as it did previously. The company therefore judges that the possibility of performance being significantly affected by large-scale restrictions on movement is low.」
Although cases have risen and a vaccine certificate requirement remains following the easing of restrictions in Hong Kong, the company indicates that performance is unlikely to be significantly affected by large-scale restrictions on movement of the kind imposed previously. - FY2022-Q3WorsenedAnnual report
「Although the number of COVID-19 cases in Hong Kong has been contained, cases that had been kept close to zero in various parts of mainland China have begun to increase gradually. As the Hong Kong government has been very cautious about easing restrictions, the recovery trend seen at restaurants since the second quarter has once again been interrupted.」
Rising cases in mainland China and the Hong Kong government’s cautious stance on easing restrictions have once again slowed the recovery of Hong Kong’s food service business, and the business environment continues to deteriorate due to the pandemic. - FY2022-Q2RestatedAnnual report
「The COVID-19 outbreak in Hong Kong has subsided and daily life is finally beginning to return to normal. However, the food service industry has not fully returned to normal operating conditions because restrictions remain in place, including limits on the number of people permitted per restaurant table.」
Although the infection situation in Hong Kong has subsided and daily life shows signs of returning to normal, restrictions such as limits on the number of people per restaurant table remain, and the food service business has not fully normalized. - FY2022-Q1RestatedAnnual report
「A full-scale recovery in the restaurant division will require the resumption of travel between mainland China, neighboring countries and Hong Kong. Until then, the company will work to restore performance with its strong food processing and sales division as the core.」
The company maintains its view that the full-scale recovery of Hong Kong’s food service business requires the resumption of travel with mainland China and neighboring countries. Until then, it reconfirms its policy of pursuing a recovery centered on the food processing and sales division. - FY2021RestatedAnnual report
「Restrictions remain in place, including seating capacity of no more than 50% and a limit of 4 people per group, and considerable uncertainty continues.」
Operating restrictions related to COVID-19 remain in place in Hong Kong’s food service business, leaving continued uncertainty in the business environment. - FY2021-Q3WorsenedAnnual report
「In the ASMO CATERING (HK) business, the number of COVID-19 cases in Hong Kong, which had been declining since September, began increasing again in November. As a result, the Hong Kong government imposed stringent restrictions from 10 December, including a ban on restaurant operations after 6 p.m.」
In Hong Kong, restaurant operating restrictions were tightened again with the third wave of infections, and restaurants were prohibited from operating after 6 p.m. The risk of further deterioration in Hong Kong’s food service environment due to COVID-19 is increasing. - FY2021-Q2WorsenedAnnual report
「In the ASMO CATERING（HK）business, the number of COVID-19 cases, which had been declining, began to rise in early July due to the third wave, and various restaurant operating restrictions that had been gradually relaxed were reinstated in a much stricter form. Although the number of new cases has been declining since September, the authorities have been criticized for easing restrictions too readily during the second wave and thereby contributing to the third wave. As a result, it is expected to take time before restrictions are relaxed this time.」
In Hong Kong, restaurant operating restrictions were tightened again due to the third wave of infections, and a prolonged period before restrictions are eased is expected. - FY2021-Q1MaterialisedAnnual report
「In the ASMO CATERING(HK) business, restrictions were imposed on restaurant seating from late March 2020 as measures to prevent the spread of COVID-19, including operating at no more than 50% of seating capacity, prohibiting groups of 4 or more from sitting together, and requiring at least 1.5 m between tables. Most public facilities, including schools and government facilities, were also closed, while many private companies introduced remote working, significantly restricting the movement of people and causing a substantial decline in revenue.」
The spread of COVID-19 restricted commercial activity and the movement of people in Hong Kong, resulting in restaurant operating restrictions and a decline in revenue. - FY2020MaterialisedAnnual report
「In the ASMO CATERING (HK) business, the repeated large-scale demonstrations in Hong Kong since March 2019, followed by the spread of the novel coronavirus infection in mainland China from January, severely affected the earnings model by substantially restricting commercial activity.」
COVID-19, which emerged in China, affected Hong Kong’s food service business, resulting in restrictions on commercial activity and a serious impact on the earnings model. - FY2020-Q3First statedAnnual report
「At the end of 2019, COVID-19 emerged in neighboring mainland China, and difficult conditions are expected to continue. The company will work to restore performance by leveraging both its restaurants and central kitchen.」
The company describes the emergence of COVID-19 in China and indicates that difficult conditions may continue in Hong Kong’s food service business. It also states its policy of seeking a recovery by leveraging its restaurants and central kitchen.