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RealDutch

11/21/12 10:46 PM

#23511 RE: treit2002 #23510

"The Company commenced its aforesaid restaurant chain business in Guangzhou City about a year ago, and it is planning to establish over 50 such restaurant chain outlets by the end of 2013."

$200k to $500k in revenue is normal for one restaurant. You can look it up on the internet.

I think it is more about establishing a brand name in the short term. And there will be more restaurant chains in the long run. Perhaps a big one in Shanghai since they supplied samples there. Also, they can sell imported seafood to restaurants.

But the majority of fish and beef produced will not be sold to their own restaurants. And that is how it should be IMO. The economics of a fully integrated business does not work. The Cattle farms and Fish Farms have to compete with other suppliers or else they will lose their edge.
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The Swede

11/22/12 7:11 AM

#23518 RE: treit2002 #23510

See page 4 in the contract for Leonie
http://sec.gov/Archives/edgar/data/1488419/000114420412045676/v319813_ex10-7.htm

Minimum yearly sales turnover at 30.04.2014 for the chain should be RMB25m, and that is with 50 restaurants.

I have never included the restaurant profit when I have done my calculations. I think it will be insignificant compared to profits from the fish and beef farm.



You have been on both restaurants right? Did you see any prices on the menus?