Jumbo Group's (SGX:42R) subsidiary, Jumbo F&B Services, agreed with Beijing Hualian F&B Management, to establish a joint venture company in China to operate a restaurant under the Jumbo Seafood brand, according to a Thursday filing with the Singapore Exchange.

Shares of the food and beverage company were up nearly 2% in Friday trading.

Under the agreement, Jumbo F&B will have a 20% stake in the restaurant, whole Beijing Hualian will have an 80% stake.

The joint venture company will be involved in restaurant operations, management and sale of food products.

The company's investment of around 300,000 yuan in the JV company will be funded through internal resources and is a part of its strategy to establish its seafood brand.