Lianhua Supermarket Co., Ltd. (“Lianhua Supermarket” or the “Company”) began operating in Shanghai in 1991. Over the course of 21, it developed into a retail supermarket chain with a nationwide network layout and the most complete business format through direct operation, franchise operation, and mergers and acquisitions. As of December 31, 2011, the total number of stores of Lianhua Supermarket and its subsidiaries (the “Group”) reached 5,150 (excluding stores operated by the company's associated companies), spread across 19 provinces and municipalities directly under the Central Government, and continued to maintain its leading position in the FMCG retail chain industry in the People's Republic of China (“China”). Lianhua Supermarkets was listed on the Hong Kong Stock Exchange Limited (the “Stock Exchange”) on June 27, 2003. It is the first Chinese retail supermarket chain company to be listed on the Stock Exchange. The group operates three major retail businesses: large integrated supermarkets, supermarkets and convenience stores, which cater to the different needs of consumers. The three major business formats have continued to expand through the “Century Lianhua”, “Lianhua Supermarkets”, “Hualian Supermarkets”, and “Express Convenience” brands. In recent years, “Lianhua Supermarket”, “Hualian Supermarket”, and “Express Convenience” have been continuously assessed as one of the “China's Outstanding Franchise Brands” by the Patent Committee of the China Chain Management Association.
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