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Business conditions

[Retailing Service] GrandBuy Co., Ltd., the core of the group, is the leading chain enterprise in Guangdong. GrandBuy owns 16 chain stores in Guangdong and Hainan provinces with a total operation area of more than 210,000 square meters, including department store, electrical chain store, discount store and shopping center. The total sales volume of GrandBuy was over 21 billion yuan from 1991 to 2006, with taxes and profits more than 1 billion yuan; the sales value of 2006 was more than 2.8 billion yuan. GrandBuy Co., Ltd. was honored the leading chain enterprise in Guangdong in 2006, with the Beijing Lu store defending its title as the retail sales champion in Guangzhou in consecutive 14 years and ranked in the top 10 large-scale retail enterprises (single store) in China in 2005.

[Logistics Distribution] Guangzhou Logistics was the first state-owned logistics distributor approved by both national and international quality inspection system ISO9002. The enterprise owns logistics bases covering 480,000 square meters, including two large logistics bases with an area of over 120,000 square meters each, a double-tracked dedicated line connecting Beijing-Guangzhou Railway with 1.72 kilometers and a specialized berth with enough room for a cargo ship of 3,000 tons. With logistics service covering 130 cities in the country, Guangzhou Logistics is one of the major logistics enterprises in Guangzhou.

[Wholesale Agency] The wholesale agency of the group dedicates to expand automobile business involving import and export of automobiles, trading of second-hand automobiles and selling of automobiles, with the overall trade volume of second-hand automobiles covering more than 40% of that of Guangzhou. The sales volume of franchiser of Zhengzhou Nissan ranked the 4th of China and the 1st of Guangdong in 2006. The wholesale and agency business of household electrical appliances and chemical products is expanding by establishing franchising and marketing channels with famous household electrical appliances brands such as Galanz in China. The sales volume of Galanz microwave ovens ranked the 1st among that of other agencies in China in past several years. The agency of chemical products built long-term cooperation with large-scale chemical enterprises both at home and abroad and the sales volume of it ranked among that of the best chemical enterprises in China.

[Specialized Market & Property Management] The group owns a variety of specialized markets and develops its leasing management with some good property, which makes good profits.

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