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Introduction Future Plans And Prospects

Future Plans And Prospects

The Group's objective is to build a leading nationwide stylish premium department store chain in the PRC.

Pursuant to the Group's chain development strategy, the Group will further increase the number of its chain stores in Jiangsu Province and will implement "single city multiple stores" strategy for cities in which it has established a leading position, so as to strengthen its leading position in Jiangsu Province. Meanwhile, the Group will continue its expansion plan in neighbouring provinces including Anhui Province. Anhui Province is strategically important to the Group, where the Group has planned for profound development. The successful acquisition of two Anhui mid-to-high end department stores, together with Hefei Flagship Store and Huaibei Store, which are about to commence operation, have demonstrated the preliminary achievements of our Anhui strategic expansion plan. The Group will further extend its coverage to include key cities in Anhui Province. Meanwhile, leveraging the Group's strong foothold in Xi'an city, the Group will expand its store network in Xi'an city in order to increase its market share and its capability of extending its presence to surrounding cities. The Group will further strengthen the branding effect of brand in the Kunming market and enhance customer loyalty through the establishment of a second store in Kunming. The Group will also keep a close eye on other provincial capital cities that possess immense economic potentials and with less competition, so as to develop a more extensive chain store network.

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