Jumbo Group Limited has entered into a joint venture (JV) with K.Grand Resources Pte. Ltd. and investor Yap Kok Kiong to expand its heritage Ng Ah Sio Bak Kut Teh (NASBKT) brand across mainland China through franchising. The newly established Singapore-incorporated JV will initially focus on Shanghai, with plans to extend into other agreed locations in China as part of the group’s asset-light international growth strategy.
The agreement, signed on July 27, 2026, was executed by Jumbo’s indirect wholly owned subsidiary, Jumbo F&B Services Pte. Ltd., alongside K.Grand Resources and Yap Kok Kiong. The JV will serve as the vehicle to operate and develop the Ng Ah Sio Bak Kut Teh brand in China, primarily by holding area franchise rights, granting unit franchise rights, and identifying suitable franchise operators and local investors.
The JV will have an issued share capital of S$200,000, with K.Grand Resources holding a 60% stake, while Jumbo F&B Services and Yap Kok Kiong will each own 20%. Upon incorporation, the company will become an indirect associate of Jumbo Group.
Under the agreement, the JV will enter into a franchise arrangement with Jumbo Group of Restaurants Pte. Ltd. to use the Ng Ah Sio Bak Kut Teh brand and related intellectual property. Besides managing area franchise rights, the venture will oversee franchise development through subsidiaries, joint ventures or independent third-party operators across the designated territory.
In its SGX filing, Jumbo said the partnership would strengthen its expansion efforts by combining the brand’s heritage with the local expertise of its partners. “The joint venture provides Jumbo Group Limited with an opportunity to participate in the development of the Ng Ah Sio Bak Kut Teh brand in Shanghai together with K.Grand Resources Pte. Ltd. and Yap Kok Kiong, who bring relevant operational, market and regulatory experience.”
The company added that its minority equity participation allows it to leverage its partners’ expertise and resources while managing investment exposure and execution risks. “It also provides a platform for Jumbo Group Limited to assess the market potential of the Ng Ah Sio Bak Kut Teh brand and pursue growth opportunities in the People’s Republic of China in a measured and disciplined manner.”
Jumbo said the investment will be funded through internal resources and is not expected to have a material impact on the group’s consolidated earnings per share or net tangible assets for the financial year ending September 30, 2026.
The JV will be governed by a three-member board, with one director appointed by each shareholder, while K.Grand Resources will appoint the chairman. The agreement will remain in force for an initial 10-year term, or for as long as the franchise agreement remains valid, whichever is later.
Founded in 1955, Ng Ah Sio Bak Kut Teh is one of Singapore’s most iconic bak kut teh brands, renowned for its Teochew-style peppery pork rib soup. Acquired by Jumbo Group in 2010, the brand currently operates through company-owned outlets and overseas partnerships, with international expansion driven by franchising and joint ventures. The newly formed China JV will adopt an area franchise model, under which it will hold the master franchise rights, appoint unit franchisees and oversee the brand’s rollout across Shanghai and, subject to mutual agreement, other parts of mainland China. The move aligns with Jumbo Group’s broader asset-light strategy of expanding its restaurant brands through local franchise partners in international markets.
