Lianhua Supermarket Co., Ltd. (“Lianhua Supermarket” or the “Company”) has been operating in Shanghai since 1991. Over the course of 21 years, it has developed into a retail supermarket chain with the most complete business format through direct operation, franchise management, and mergers and acquisitions. As of December 31, 2011, the total number of stores in Lianhua Supermarket and its subsidiaries (the “Group”) reached 5,150 (not including stores operated by the company's affiliated companies), spread across 19 provinces and municipalities directly under the Central Government, and continued to maintain a leading position in the FMCG chain retail industry in the People's Republic of China (“China”). Lianhua Supermarket was listed on the Hong Kong Stock Exchange Limited (“Stock Exchange”) on June 27, 2003. It is the first Chinese retail supermarket chain to be listed on the Stock Exchange. The Group operates three major retail formats: large integrated supermarkets, supermarkets and convenience stores, to meet the different needs of consumers. The three major business formats have continued to expand through the “Century Lianhua”, “Lianhua Supermarket”, “Hualian Supermarket”, and “Express Convenience” brands, respectively. In recent years, “Lianhua Supermarket”, “Hualian Supermarket”, and “Express Convenience” have continuously been awarded as one of the “Outstanding Chinese Licensed Brands” by the China Chain Management Association Patent Committee.