Zhongmin Baihui Opens Maiden Store Outside of Fujian Province

• New Nanjing Nanzhan Store adds 30% to the Group's total gross floor area which now exceeds 1.5 million sq ft
• Largest store of the Group yet at 361,000 sq ft
• Located next to world's second largest railway station, Nanjing South Railway Station
• Nanjing Nanzhan Store to contribute positively to revenue 

SINGAPORE, Sept. 21, 2012 /PRNewswire/ --Zhongmin Baihui Retail Group Ltd., ("Zhongmin Baihui", or "the Group"), an established PRC department store brand that operates and manages retail malls in Fujian province, the PRC, opens its maiden store outside of Fujian province.

The 4-storey newly opened Nanjing Nanzhan Store of 361,000 sq ft (33,600 sq m) is the largest store of the Group yet. This addition raises the Group's total gross floor area by 30% to 1,563,000 sq ft (145,477 sq m). The new store is strategically located next to the Nanjing South Railway Station. Touted by CCTV as the world's second largest train station with gross floor area of approximately five million sq ft (1), the Nanjing South Railway Station is at the heart of China's railway networks.

According to the Nanjing government, it is estimated that the long-term passenger flow of Nanjing South Station will reach 120 million (2). Nanjing South Railway Station, which started operations last year in June, serves four railway routes including the Beijing-Shanghai High-Speed Railway, the Huning Intercity Rail, the Hangning Passenger Railway and the Shanghai-Wuhan-Chengdu Railway (3). The Nanjing South Railway Station is one of five originating stations along the Beijing-Shanghai High-speed Railway (4). The Group hopes to enjoy the spillover effects of high foot traffic at Nanjing South Railway Station which is estimated to bring in an average daily flow of 1.4 million people (5).

The new Nanjing Nanzhan Store is situated within the development area of the Nanjing Mingfa Commercial Centre, where the Nanjing municipal government aims to create a one-stop shopping paradise of over four million sq ft, organized according to six different themes including lifestyle, family and global brand (6). This is part of the government's efforts to promote a mall-goer generation and heighten Nanjing Mingfa Commercial Centre's status in the international commercial retail scene (7).

Leveraging on the retail vibrancy of the themed shopping arena packed with hotels, restaurants, cinema, entertainment and leisure facilities, the Nanjing Nanzhan store would be able to bask in the benefits of massive tourist crowd and enhance the Group's visibility in the area. The new store targets middle to high income groups with its modern look and feel, featuring well-known local and overseas retail and F&B brands.

"Venturing out of Fujian province to break into Jiangsu province is an important step for our growth. As a local Fujian brand, we aim to elevate our brand awareness beyond Fujian with our new store in the capital of Jiangsu to bring in improved earnings for the Group."

• Mr. Lee Swee Keng, Executive Chairman of Zhongmin Baihui

The Group has three stores in the pipeline namely its Xiamen Zhongshan Store, Quanzhou Qiaonan Store and Zhangzhou Longwen Store, which would be expected to open by end 2013 in Fujian province.

Footnote:

1. http://en.wikipedia.org/wiki/Nanjing_South_Railway_Station, Nanjing South Railway Station,  Wikipedia

1. http://english.nanjing.gov.cn/zx/szyw/200812/t20081219_257936.htm, Four Main Railways Pass Nanjing South Station, with Long-term Passenger Flow of 120 Million, Nanjing Government

3. http://en.wikipedia.org/wiki/Nanjing_South_Railway_Station, Nanjing South Railway Station, Wikipedia
4. http://baike.baidu.com/view/160129.htm
5. http://baike.baidu.com/view/3651097.htm
6. http://baike.baidu.com/view/3651097.htm
7. http://baike.baidu.com/view/3651097.htm

About Zhongmin Baihui Retail Group Ltd. ("Zhongmin Baihui")

Zhongmin Baihui Retail Group Ltd. is principally engaged in the operation of the "Zhongmin Baihui" department store in Xiamen, Quanzhou and Zhangzhou, Fujian province and Nanjing, Jiangsu province in the PRC.  Strategically located in commercial centres, the Group's stores are in close proximity to residential, shopping and commercial areas as well as public transportation hubs that offer high visibility and steady flow of human traffic.

With its first store in Anxi, Fujian in 1997, the Group has rapidly expanded to operate three self-owned stores and six managed stores with an aggregate gross floor area of 1,563,000 sq ft (145,477 sq m).The Group's largest store is in Nanjing and it plans to open three more stores, one of which would be larger than its Nanjing Nanzhan Store, in Fujian province by end 2013. 

With 15 years of strong retail reputation under the "Zhongmin Baihui" brand name, the Group's stores offer a wide variety of quality merchandise and customer-oriented services catering to middle to high level income bracket consumers.

The Group's revenue is mainly derived from four sources, namely direct sales, commission from concessionaire sales, rental income and income from managed rental.

For more information, please refer to http://www.zhongminbaihui.com.sg

Note:

This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, CIMB Bank Berhad, Singapore Branch ("Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), this being the SGX-ST Listing Manual Section B: Rules of Catalist. The Sponsor has not independently verified the contents of this announcement.

The announcement has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr. Benjamin Choy, Director, Corporate Finance. The contact particulars are 50 Raffles Place #09-01 Singapore Land Tower Singapore 048623, telephone: +65 6337 5115.