SINGAPORE – A wholly owned subsidiary of seafood restaurant operator Jumbo Group and China’s Laoxiangji Holdings have agreed to incorporate a joint venture company in Singapore to establish and operate Chinese-style quick-service restaurants under the Lausanjee brand in the city-state.
Laoxiangji holds the rights to the Lausanjee trade marks and trade names, as well as the franchisor, for Singapore, Jumbo said in a June 30 bourse filing. The China-founded brand is best known for its chicken soups and dishes.
Under the agreement, Jumbo subsidiary Jumbo F&B Services will subscribe for 980,000 new shares in the capital of the joint venture company for $980,000 in cash. Laoxiangji will subscribe for 1,020,000 new shares for $1,020,000.
Following the subscription, Jumbo F&B Services will hold a 49 per cent stake in the joint venture company, while Laoxiangji will have a 51 per cent interest.
After its incorporation, the joint venture company will enter into a franchise agreement with Laoxiangji or its designated affiliate for the right to use the Lausanjee trade marks and trade names in Singapore for the purposes of the joint venture.
This agreement will govern the joint venture company’s operations, including the term and renewal of the franchise, the scope of the franchise rights, operational standards and franchise fees.
The new company’s board will comprise three directors. Laoxiangji will be entitled appoint two; and Jumbo F&B Services, one. This board will oversee the company’s strategic direction and governance, while day-to-day operations will be handled by an appointed management team, Jumbo Group said.
It noted that Laoxiangji serves more than 150 million customers annually in China, and operates over 1,600 restaurants – both directly-operated and franchised – across more than 50 cities in the country.
It noted that the collaboration will bring Laoxiangji’s popular brand of Chinese-style quick-service restaurants from China to Singapore, “coupled with the group’s extensive local expertise and know-how”.
“The joint venture is in line with the group’s plan to continually expand its stable of F&B brands to further strengthen and grow its presence and market share in Singapore,” Jumbo Group added.
The group’s investment in the joint venture company will be funded through internal resources. The joint venture is not expected to have a material impact on the consolidated net tangible assets per share or the consolidated earnings per share of the group for the 2026 financial year.
The counter closed flat at $0.27 on June 30, before the announcement. THE BUSINESS TIMES
