Quanjude 140 Million Yuan Acquisition Of 85% Stake In Xinjiang Franchise

On the evening of November 30th, 002186.SZ announced that the company intends to acquire 85% equity interest in Xinjiang Quanjude holding company (hereinafter referred to as Quanjude) in Xinjiang, which is 140 million yuan acquisition, and take Xinjiang Quanjude as a regional company to actively develop the Northwest market in Xinjiang.

In November 29th, the company and Xinjiang Jun Bang Investment Co., Ltd. (hereinafter referred to as the "Royal state company") formally signed the "equity transfer agreement", allowing the 85% of the Xinjiang Quanjude company owned by the sovereign state company.

The main business of the company is the hotel industry and catering industry. It owns three business entities: Quanjude Changjiang Road store, Beijing Road store and Tianshan grand hotel. Jun Bang company is a "Quanjude" brand franchise chain franchisee in Xinjiang.

In March of this year, the company signed a letter of intent with royal state company. According to the agreement, the sovereign state company invested in the city of Urumqi to invest in the establishment of Xinjiang Quanjude company to acquire the Royal assets of the Royal state Tianshan Hotel, which was held by the sovereign state company, except for the operating assets outside the house. After the acquisition, the company of the sovereign transferred the 85% stake of Xinjiang Quanjude company to Quanjude.

After Quanjude went public, it began to try to develop chain operations with acquisitions. After the project is completed, the company will set up a regional company in Xinjiang. The company will not only manage the existing Quanjude enterprises in Urumqi, but also continue to develop new chain enterprises in Xinjiang. If conditions permit, the Beijing duck will also be raised to overcome the long-distance transportation problem from Beijing to Xinjiang.

Quanjude said that the acquisition will play a positive role in promoting the expansion of the business scale by the company in the form of strategic acquisitions. At the same time, the future development prospect of the region will be very broad. The company will rely on Xinjiang Quanjude company and Xinjiang Quanjude company as a regional company to actively develop the Northwest market.

As of October 2010, Xinjiang Quanjude realized a total profit of 2 million 860 thousand yuan and a net profit of 2 million 140 thousand yuan.

In the first three quarters of 2010, the company achieved an operating income of 990 million yuan, an increase of 12.32% over the previous year, and a net profit of 80 million 810 thousand yuan to the parent company, an increase of 20.56% over the same period last year.