Speech of Mr. Zong ENG.docVIP

Wahaha entering the Retail Industry with Firm Steps Speech Outline for the Press Conference  Dear friends from the media: First of all, thank you for your concern and attention to Wahaha’s entering into the retail industry. Since Wahaha opened its first shopping mall last November, there were the constant questions, and most of which thought that we would retreat, but the reality was on the contrary. We have been long prepared for the current status quo of our first shopping mall. Firstly, we spent only four months on the introduction of goods and the decoration, which was for the expression of our attitude to enter the retail industry before our 25th anniversary celebration in a way of creating our first shopping mall. Secondly, the subway station under the shopping mall has not yet opened; therefore, the local business climate has not yet formed. Thirdly, it is our first try, availing our further understanding on the retail business operation and innovation models. Through the recent practice experience, we have more confidence on entering the retail business industry. Today, we report to you our ideas and practice and hope to get your valuable comments and suggestions to help us to contribute more on China’s retail business development and commercial retail model reform. China’s retail industry is still promising The Eighteenth National Congress of the Communist Party of China put forward to double increase the GDP and people’s income before the year 2020, which also means the doubling of spending power. Especially, the party committee and the government put more emphasis on agriculture and increase the income of the rural areas. Currently, the spending power surges in the rural market, which is an obvious example, therefore, we believe that there is large market potential in China’s 13 billion-population market. Despite that the e-commerce gives negative impact on the retail business, however, I think it definitely would not replace the retail business wit