Lifestyle China Group Limited (02136.HK)

Lifestyle China Group Limited (together with its subsidiaries, the “Group”) is an established operator of department stores based in the PRC. We operate Shanghai Jiuguang, Suzhou Jiuguang and Dalian Jiuguang. The department stores we operate are ‘‘lifestyle’’ department stores, with middle to upper-end market positioning and through Jiuguang Brand in the PRC. Our department stores are characterised by the ‘‘one-stop shopping’’, ‘‘shops-in-shop’’, and ‘‘customer oriented’’ concepts, which we aim to offer quality goods and services, customer convenience and a comfortable shopping environment.

Our department stores offer a wide variety of goods ranging from daily necessities to luxury products as well as personal care services, such as hair and beauty salons, for meeting the needs of our customers. Depending on the location of the department stores, the merchandise are sold by means of concessionaire sales as well as direct sales and can be broadly categorised into apparels and fashion, cosmetics and accessories, household, toys and others, and food and confectionery. The merchandise mix and services provided by our department stores are reviewed and adjusted from time to time to enhance the shopping experience it provides and to attract new customers and retain existing customers with the goal of increasing turnover to the Group. We also lease space in our department stores to third party service providers, such as restaurants, for rental income. Furthermore, we receive service income from concessionaires and suppliers for displaying their products and billboards in our department stores.