May 19, 2010 (China Knowledge) - China Quanjude (Group) Co Ltd<002186
>, which is engaged in the provision of restaurant services, food processing and distribution, yesterday announced that it will team up with Xinjiang Junbang Investment Co Ltd to set up a joint venture in Xinjiang
Uygur Autonomous Region.
firm will invest RMB 139 million in the JV to have an 85% stake and the right to operate three existing restaurants.
The three restaurants' revenue for 2009 totaled RMB 123 million, but their combined net profit was only RMB 1.94 million. One of the three restaurants suffered a net loss of RMB 2.64 million last year.
The board secretary of China Quanjude said that the three restaurants' annual revenue will total between RMB 180 million and RMB 200 million in the next ten years and that their total profits will be around RMB 17 million per year.
China Quanjude, whose specialty is to provide "All-Duck Banquet" dishes such as Quanjude roast duck, always reaps more than 91% of the total revenue from business in Beijing.
According to the company's fiscal results for 2009, it only won profits from restaurants in Beijing and Shanghai. The restaurants in Chongqing, Changchun
all showed deficits.