Company Profile of Youyi Stock

Shanghai Friendship Group Co., Ltd. was formerly known as Shanghai Friendship Overseas Chinese Company (hereinafter referred to as Friendship, Inc.), founded in 1952, was restructured into a joint-stock limited company in 1993, and the company's A and B shares were listed in the Shanghai Stock Exchange on Feb. 4, 1994 and Jan. 5, 1994, respectively.

In December 2000, the company was renamed Shanghai Friendship Group Co. Youyi A-share stock referred to as Youyi stock, code 600827; B-share stock referred to as Youyi B-share, code 900923.

In 2000, the company, through the recombination of advantageous resources, the foresight to successfully realize the transformation of the company's main business from a traditional department store to a retail chain, and to clearly form the framework for the rapid development of the company in the next few years, to determine the main body of the company's development of the four core businesses:

(1) Food and daily necessities supermarket chain with Lianhua Supermarket Co., Ltd, the largest supermarket chain in China, as the main body;

(2) Specialized hypermarket chain with Haomeijia Decoration and Building Materials Co. Ltd. as the main body;

(4) the community shopping center chain with the main body of the Friendship Shopping Center, with modern logistics, distribution and e-commerce system as support. Since 2001, the company has launched a comprehensive national market development strategy.

The company's industry is commercial retailing, and it is currently the largest listed company in China's retail industry in terms of sales scale.

The company is mainly engaged in chain supermarkets, decoration and building materials, general department stores, as well as import and export business, catering services, acquisition of new and old handicrafts, gold and silver products, furniture, antiques and so on.

As of September 30, 2002, the company's total share capital of 33015.14 million shares, of which: 106,040,000 shares of the state, accounting for 32.12% of the total share capital; 156,138,000 shares of legal persons, accounting for 4.73% of the total share capital; circulation of 82,820,500 shares of A shares, accounting for 25.08% of the total share capital; circulation of 125,677,700 shares of B shares, accounting for 38.7% of the total share capital. The total number of B shares is 125,677,700,000 shares, accounting for 38.07% of the total share capital. The national shareholder is Shanghai Friendship (Group) Company Limited, which is the largest shareholder of the company.

The company is a large-scale chain enterprise with commercial retailing as its main business, and is currently the largest listed company in China's retailing industry in terms of sales scale. in 2001, the company's sales scale of 16.126 billion yuan (RMB) accounted for 8.7% of the total retail sales of Shanghai's consumer goods of 186.13 billion yuan (RBM) in 2001 (including residential housing consumption and automobile consumption and other factors of bulk sales), and 8.7% of the total sales of the top 100 national chain supermarkets in terms of sales in 2001. 10% of the total sales of 162 billion RMB (RMB) of the top 100 national supermarket chains.