Little Sheep Group Limited is an investment holding company. It is engaged in the operation of full-service restaurants chain, provision of catering services and sale of related food products. It operates in four segments: the restaurant operations and provision of catering services segment engages in operating Chinese hot pot restaurants; the sale of food products segment engages in the production of soup-based seasoning and sale of lamb meat; the franchise income segment represents the charges to the franchisees for the rights of using the Little Sheep�s trademark, and the others segment represents the provision of services of sales promotion, purchase, training, and other administrative services rendered to franchised restaurants. As of December 31, 2010, the Company owned 184 restaurants. During the year ended December 31, 2010, it opened 26 restaurants and acquired seven franchised restaurants. During 2010, it closed down five restaurants and sold five restaurants.