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The Company expects its franchise business tobecome the most strong and influential brand in the Yangtze River Delta regionand even in the national market, thereby leading to substantial growth of thebusiness.Chairman Ma Xinsheng said, "The acquisition helps to expand LianhuaSupermarket's economies of scale and builds on our competitive strengths baseball season tickets . As aresult, we will become the dominant supermarket player in the Yangtze Riverdelta region and our influence in the provinces of Zhejiang and Jiangsu willbe deepened nationals baseball tickets . Looking ahead, together with Hualian Supermarket, LianhuaSupermarket will continue developing its 'Strong Outlet Strategy' and exploremarket opportunities by adopting a dual-brand marketing strategy andintegration of resources nationals tickets . We aim to become the largest and most efficientretail chain operator in China and create values for our shareholders."Hualian Supermarket started its business in 1992 with a registered capital ofRMB300 million david wright . As of December 31 2008, it had a network of 1,183 franchiseoutlets and 213 direct outlets, concentrated in Shanghai, Jiangsu Province andother cities in the Yangtze River Delta region.Under the agreement, the Company conditionally agrees to acquire a 99.4%equity interest in Hualian Supermarket from Bailian Group forRMB488,831,631.05. Lianhua Supermarket Development, a subsidiary of theCompany, conditionally agrees to acquire a 0.6% equity interest in HualianSupermarket from Bailian Real Estate, a subsidiary of Bailian Group, forRMB2,950,693.95.
Hualian Supermarket will become a subsidiary of the Companyafter the acquisition.Commenting on the cash basis of the acquisition, Lianhua Supermarket'sChairman Ma said: "We chose to use cash for the purchase in order to avoiddiluting shareholder's equity baseball tickets . We have seized the opportunities before theeconomy fully recovers by capitalizing on our strong cash position david wright jerseys . We expectthe acquisition to lay the foundation for further development, and create morevalue for our shareholders in the future."In accordance with PRC accounting standards, the consolidated audited netasset value of Hualian Supermarket on 31 December 2008 was RMB257,493,180.25.The consolidated revenue of Hualian Supermarket was RMB2,271,470,420.60 forthe year ending 31 December 2007 and RMB2,958,315,507.76 for the year ending31 December 2008 johan santana jerseys . The consolidated net profit of Hualian Supermarket (beforetaxation and extraordinary items) for the years ended 31 December 2007 and 31December 2008 was RMB10,721,609.09 and RMB57,459,933.25 respectively . Theconsolidated net profit of Hualian Supermarket (after taxation andextraordinary items) was RMB9,144,064.12 and RMB34,928,526.89 for the yearsended 31 December 2007 and 31 December 2008, respectively. The consolidatednet profit attributable to the shareholders of Hualian Supermarket wasRMB9,290,145.65 and RMB32,829,427.05 for the years ended 31 December 2007 and31 December 2008, respectively.About Lianhua SupermarketLianhua Supermarket Holdings Co., Ltd. ("Lianhua Supermarket" or the"Company") is China's leading supermarket chain.
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