Little Sheep Group Limited (Little Sheep) is principally engaged in the operation of full-service restaurants chain, provision of catering services and sale of related food products in the People’s Republic of China), Hong Kong, Macau, the United States of America and Japan. The Company specializes in Mongolian-style hot pot cuisine. It operates restaurants in China and overseas markets under the Little Sheep brand. It is also engaged in the processing and sales of lamb and soup base products and the wholesale distribution of fresh and dried food products. Little Sheep provides a range of fresh and dried food products, including lamb, hot pot soup base and other seasonings to wholesale distributors nationwide for their retail sales in hypermarkets, supermarkets, and convenience stores. As of December 31, 2008, the Company had a total of 127 Company-owned restaurants and 248 franchise restaurants.