Tenacy Agreement Terminated

As Qinghai Chuangxin Real Estate Group Co,. Ltd., the leaser of Xining Chuangxin Department Store, has breached a tenancy agreement signed with the company on 7 Aug 2004, the company has decided to terminate the agreement and cease operations in the Chuangxin Store.

Chuangxin Store is currently operated by Qinghai Xidan Market Department Store Co., Ltd, a subsidiary of the company in which a 89.79% stake is held, thereby Qinghai Xidan will act as a contract party to terminate the agreement, hand over dissolution responsibilities of the Chuangxin Store and seek damages from Qinghai Chuangxin.

A resolution to terminate the tenancy agreement, which has been approved by the 8th Meeting of the 5th Board of Directors, will be submitted to a general meeting of shareholders for consideration and approval.

Board of Directors
14 Aug 2008


Source: Shanghai Stock Exchange

Date: 14 Aug 2008

CN01/VW/DM/BT/KM