PDF《OUR BUSINESS》

93 C retail market for internationally-recognized luxury products. The management has built up a strong track record of successfully operating in the Chinese retail market, and has placed us in a competitive position to sell luxury goods in the Chinese market. We have well-established relationships with various participants in the PRC retail industry and possess in-depth knowledge of operating retail business in various Chinese cities. . Well-established relationships with well-known brands. With the experience in and knowledge of China'

s retail industry, we have developed solid relationships with various well-known international and domestic brands. We believe the highly experienced management team and PCD'

s brand and reputation make us an attractive business partner for a wide variety of high-end and luxury brands, which enable us to offer a broad range of appealing merchandise in our stores. . Track record for establishing, integrating, and operating department stores. We have demonstrated a track record of successfully establishing and integrating new stores into our Group. Our extensive knowledge of, and experience in, the China retail market, obtained by the Chan Family through the PORTS business, have allowed us to effectively identify and integrate stores into our self-owned store network. For example, Scitech Plaza was added into our store network in July

2007 and underwent major revamp of its store layout, tenant mix and operation management. It has become a successful upscale department store in Beijing and our major revenue contributor. In addition, our understanding of Chinese consumer preferences for high-end and luxury brands and the variations of those preferences in different local markets have allowed us to adapt our business model to an evolving business environment and successfully expand into various regions of China. This also helps us to identify and effectively integrate additional stores to further drive our growth. Premium brand positioning in the Chinese high-end and luxury retail market We have established a strong brand in the high-end retail market in several major cities in China. We believe our PCD brand and its positioning attract sustainable demand from customers with strong and growing spending power in various economic climates. We believe that the use of our distinctive '

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Fleur de Lys'

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logo as well as the '

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Fleur de Lys'

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logo which has the Chinese characters '

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巴黎春天'

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embedded in it will assist customers in differentiating our stores from other unaffiliated stores that also use the '

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巴黎春天'

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trade name. We engage in extensive brand- building activities, including launch parties and store visits by high-profile celebrities. We also offer exclusive VIP benefits and privileges, such as VIP lounges and bar areas and on-site personal shoppers and style consultants. Through our operations in the department store business, we are able to analyze a particular market and optimize the positioning of our department store in that market to further expand our market share in existing markets and target new markets and areas of the Chinese retail industry. Prime store locations with long-term market growth potential A prime location is a key factor for a successful retail operation. Our network covers major cities in China including Beijing, Xiamen, Xian, Changchun, Qingdao, Taiyuan, Nanning and Guiyang. A majority of our stores is located in commercial areas with high target customer OUR BUSINESS C