SINGAPORE - Jumbo Group will establish a new branch office and Jumbo Seafood restaurant in Xi'An, China, the restaurant operator announced on Thursday (Feb 1) after the market closed.
This is through a joint venture between its indirect wholly owned subsidiary Jumbo F&B Services (Shanghai) Co and Beijing Hualian (SKP) Departmental Store Co. Both parties have entered into a supplemental agreement.
Jumbo and Beijing Hualian will both increase their capital contributions to the joint venture by an aggregate amount of 13.0 million yuan. In line with their shareholding percentages of 51 per cent and 49 per cent respectively, the Jumbo will contribute 6.63 million yuan and Beijing Hualian will contribute 6.37 million yuan.
In a filing to the bourse, Jumbo said that this development will allow the group to introduce its brand to the city of Xi'An, China. It is also part of the group's plans to expand its brands to other major cities in China. The group's investment in the joint venture will be funded by internal resources.