On the flip side to that to actually get a company going in...

On the flip side to that to actually get a company going in China is very tough. To get the right business connections and good sales distribution agreements is again difficult. So if you get all these going in the right direction and can still run a profitable business, you have done very well.
If this business is good, they can expand 50 fold. You could pretty much fit their existing entire business in just one of the major cities ( Shanghai, Beijing, Shenzhen ). So if they get it right there is massive expansion potential.