Ajisen China plans to open 120 New Store This Year(69297)

The profit of Japanese restaurant chain Ajisen China increased 42.2% in 2009, reaching to 314 million Yuan. The company plans to open 120 new stores in China this year, aming to expand the number of its total stores to 1,000 within 5 years.

By the end of last year, the number of the company's restaurants has increased from 315 to 398. Chief Financial Officer Liu Jiahao said that the company would open 120 new stores this year, involving capital expenditure of 160 million Yuan. The annual capital expenditure is expected to 500 million Yuan.

Besides the 160 million yuan which will be used to open additional outletsh, 130 million Yuan will be used for the investment of its Shanghai offcie, and another 170 million Yuan for the construction of four plants, while the remaining 40 million Yuan for the store refurbishment. Because the lease period of its stores in mainland China is generally up to 6 to 8 years, the number of this year's renewal of the lease fees stores is less than 10%.

Therefore, the rental cost is controllable this year.

The total same store sales of Ajisen in mainland last year fell 1.3%l, and the Hong Kong branch fell 14.3%. Board Secretary t Huang Nian said that the growth rate of the same store sales in January and February in mainland returned to be positive, while the performance of its Hong Kong stores was flat. It is expected that the same store sales of the Group this year will be positive.

Ajisen China plans to open 120 New Store This Year

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