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

In view of the ongoing rapid economic growth of Jiangsu province and to further leverage on the highly reputable brand name of the Group’s Nanjing Xinjiekou Store, the Group intends to continue opening new stores in Jiangsu province to enhance its leading position in the eastern China. In the meantime, with the rapid commercial development of the western China, the Group is also exploring business opportunities in that region. Xi’an Store and Xi’an Gaoxin Store are positioned by the Group as the platform to further penetrate into the western China region of the PRC. In addition, the Directors are considering the expansion of its department store chain to Kunming as a platform for its expansion in the southwestern region of the PRC and to establish the Group as a nationally recognized chain store.

The Group’s development strategy is to continuously open new department stores under the " "service logo in prime shopping districts in cities with rapid economic growth and, as the Directors believe, with less intense competition. The Group will set up stylish premium department stores by various means principally including purchase of property, lease of property, and mergers and acquisitions of operations in prime shopping districts. By leveraging on the Group’s managerial systems and localised operating strategies, the Directors intend to develop the Group into a nationwide stylish premium department store chain with leading market position managed by professional managers. When determining the location and timing for the opening of a new store, the Group carries out a thorough assessment of the local retailing dynamics including population level, economic statistics, availability and affordability of prime locations, competition intensity, and forecasted sales proceeds.