Chinese hot pot restaurant chain Little Sheep has announced that it is selling its 69% stake in Little Sheep U.S. to Wang Fang, the director of Little Sheep's previous subsidiary in Canada, for USD345,000.
The main businesses of Little Sheep U.S. are operating a Chinese-style hot pot restaurant, providing food and beverage services, and selling related food products in the United States. According to Little Sheep, this transaction aims to help the company to better allocate resources in its core businesses in China.
The first and only Little Sheep U.S. restaurant was opened on August 31, 2006. In 2007, Little Sheep U.S. made an after-tax profit of USD151,000; and in 2008, it made net profit of USD201,000. However, in the year to October 31, 2009, its net profit had decreased to USD85,000. At present, the value of the net assets of the Little Sheep restaurant in the United States is about USD499,000.