AOM International Groups' (HKG:0381) subsidiary Kiu Hung (Fujian) Investment agreed to develop a business related to medicinal cuisine stew stores with Hunan Shilin Commercial Management, a Thursday Hong Kong bourse filing said.

The new venture has a cooperation term of one year, starting from Thursday, Jan. 16.

Under the cooperation agreement, the parties will develop and expand the new business across various provinces of China by using over 200 products from the group's medicinal base of Hubei Jincaotang Pharmaceutical.

The parties plan to open 5,000 stores within one year through franchising with a fee of 200,000 yuan.

The parties expect to generate a billion yuan in revenue from the new venture.