Business Opportunities

Business Opportunities:

Continuous to focus on Catering Services

Strong demand for institutional catering in China, especially in the Yangtze River Delta region where large-scale manufacturing operations and government-controlled organizations clustered

The outsource % for catering service in Mainland is still very low

High demand for catering in 2008 Beijing Olympics and the Paralympics

Current consumer segment

This business now has two sub-segments namely Consumer Segment Catering and Institutional Segment Catering defined with reference to the downstream market they serve.

Consumer Segment Catering

Consumer Segment Catering provides finished and semi-finished goods mainly to factories industrial parks universities canteens in central business district and exhibitions and sports events. It reported a turnover of approximately RMB1342.7 million for the year. The Group sees substantial untapped opportunities in the different markets covered in the segment.

For this key profit driver under its Catering Services business the Group will explore business opportunities in enterprises factories central business district universities and schools and exhibition centres.

Institutional Segment Catering

The segment is currently serving semi-finished products to railway passengers in high-speed trains in the PRC and expanding business coverage to tourist spots and highway service stations and military and shipping sites. It brought in a turnover of approximately RMB40.5 million for the year. The Group is optimistic about the growth of the segment as it is among the first movers in this largely unexploited market.

With products boasting the distinctive feature of staying fresh for more than 30 days without refrigeration and preservatives the Group enjoys absolute advantage over its competitors in this fast growing market. Relative to Consumer Segment Catering Institutional Segment Catering currently has a lower profit margin but much bigger room to...