Wal-Mart heads list of the Fortune 500 companies and is also the first multinational company which has established its regional headquarters in Shenzhen. Wal-Mart SZITIC Department Store Co., Ltd. is a joint venture with nationwide influence in which our company holds 35% stake. This company is actively expanding in China, which has many positive effects. Wal-Mart has greatly promoted our country s export trade as well as the reform and development of the Chinese retail industry. It has created countless jobs and became a major source of local tax revenue and provided high quality shopping facilities for the general public.

In 2005 Wal-Mart SZITIC Department Store Co., Ltd. accelerated its development in China. By the end of 2005, this company had ready opened 50 stores in China, 11 of them were newly opened during this year. In 2005 it realized sales revenue of RMB 8.6 billion, 30% higher than the number last year. Its operation was improved through exploring new markets, strengthening management, adjusting its strategy and controlling costs. With the number of stores increasing, the operational scale enlarging and distribution costs reducing, alongside with Wal-Mart s brand, management, capital and procurement advantages, Wal-Mart SZITIC Department Store Co., Ltd. will be our most influential, and profitable investee company. This venture has a huge potential. At the same time, it will also provide a broad space for SZITIC-CP to develop its commercial real estate business.