Sales of Jollibee Foods Corporation, Asia's biggest food service company, in China plunged by 5.7 percent in the second quarter of this year due to the competitive pressure faced by the company's largest brand Yonghe King.

On Tuesday, Jollibee admitted that the dismal second quarter followed a first term where it barely grew due to stiff competition. The fast food giant revealed that China contributed 12 percent of its overall sales in 2015. Its two other established brands in China, namely, Hong Zhuang Yuan and San Ping Yan, are going strong, GMA News reported.

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According to Nikkei Asia Review, Jollibee's overall sales from its foreign markets increased by just 3.7 percent, nearly six times lower than its earnings in its home base in the Philippines at 17.9 percent. Its sales in other countries, however, managed to compensate for its struggles in China. Sales jumped by 37 percent across Southeast Asia, 56 percent in Singapore, 49 percent in Vietnam, 17 percent in the Middle East, and 11 percent in the United States.

"Our established brands in China, Hong Zhuang Yuan, and San Ping, continued to perform strongly. We look forward to a strong recovery of our Yonghe King business in the months ahead with the launch of new products with high value and taste scores supported by strong marketing campaigns and continuously building a significant business in the People's Republic of China and other parts of the world," Ernesto Tanmantiong, Jollibee's CEO, said.

Currently, Jollibee has 321 Yonghe King branches, more than three-fourths of its 424-store network in the country. It also owns more than 3,000 outlets across the world as of the first half this year. 

TagsJollibee, Jollibee Foods Corporation, Yonghe King, fast-food chain