Corporate Presentation

2

AgendAgendaa

Speaker

Company’s Vision & Overview

WEI Tingzhan

Future Plans WEI Tingzhan

CHEN LiminFinancial Highlights

Retail Business

Wholesale Business

Industry Overview WEI Tingzhan

WEI Tingzhan

WEI Tingzhan

3

WEI TingzhanWEI TingzhanChairmanChairman

Section 1: Section 1: Company’s Vision & Company’s Vision & OverviewOverview

4

Our Our VisionVision

Expanding distribution network in the Greater Beijing Region, Northern and Eastern China by actively exploring expansion opportunities through organic growth and/or merger & acquisitions

To have approximately 255 Retail Outlets by the end of 2008

Strengthening the information and logistics system

Further brand building

To Become One of the Leading Integrated Retail andWholesale Distribution Operators in the Greater Beijing Region by :

5

Core Investment Core Investment ValueValue

One of the largest supermarket chains in Beijing

Integrated wholesale and retail distribution operator

Operates in the Greater Beijing Region, with a strong network in the affluent and populous Chaoyang District,in particular, the CBD in Beijing

Well established and modernized logistics infrastructureand management information systems to capture immense potential for future growth

Well-poised to capture opportunities arising from the2008 Beijing Olympics

6

JingkelongJingkelong– – A Renowned Brand in Greater Beijing A Renowned Brand in Greater Beijing RegionRegion

A leading integrated retail and wholesale distribution operator of daily consumer products in the Greater Beijing Region, with a strong presence in Chaoyang District

One of the largest supermarket chainsin Beijing

7

We have Grown We have Grown Significantly in a Short Significantly in a Short TimeTime

19941995 2002 2005

Establishment of

1st Distribution Center inChaoyang

District

19971998 2003 20042000

Establishment of1st Dry Products Logistics Center

Opened2nd & 3rd

Hypermarkets

• Establishment of 2nd Distribution Centerin Tianjin

• Revenue and net income after minority interestfrom continuing operations reached RMB2.9 billionand RMB38.2 million

• Establishment of Live & Fresh Produce Logistics Center

• Revenue and net income after minority interest from continuing operations reached RMB4.1 billion and RMB75.1 million

• Establishment of joint stock limited company, Jingkelong

• Revenue and net income after minority interestfrom continuing operations reached RMB3.6 billion and RMB73.2 million

• Restructuring by Parent and the establishment of Beijing Jingkelong Supermarket Chain Company Limited

• Opened 4th

Hypermarket

• Opened 1st convenience store

Opened1st

Hypermarket

Opened1st

supermarket

2006

Listed on the GEM of The

Stock Exchange of Hong Kong in September

8

A strategic operator for an integrated retail and wholesale distribution businesses

Directly operate retail network complemented by franchise operations enables fast and efficient expansion

JingkelongJingkelong– – An Integrated Retail & Wholesale Distribution An Integrated Retail & Wholesale Distribution OperatorOperator

Retailing

Hypermarkets

5(1) directly operatedHypermarkets

Supermarkets

39(1) supermarketsincluding:- 38 directly operated- 1 franchise stores

Convenience Stores127(1) convenience stores, including:- 39 directly operated- 88 franchise stores

Dry ProductLogistics Center

Live and FreshProduce Logistics

Center

(1) Number of Retail Outlets as at 31 December 2006 which had commenced commercial operation

9

Wholesale distribution business operated by Chaopi Trading and its subsidiaries and associates

Complementary operation of Logistic Centers and Distribution Center enhances distribution efficiency

Wholesaling

Major customers:including local and foreign retail chain store

operators & wholesale operators

Wholesale Distribution

Business

Tianjin Distribution Center

Beijing Distribution Center

JingkelongJingkelong– – An Integrated Retail & Wholesale Distribution An Integrated Retail & Wholesale Distribution OperatorOperator

10

Our Key Our Key StrengthsStrengths

More than 10 years of experience in the daily consumer product distribution industryOne of the largest supermarket chainsin BeijingRanked 21st amongst the top 100 fast moving consumer goods retail chain in China in 2005 in terms of revenue (2003: RMB2.9 billion, 2004: RMB3.6 billion, 2005: RMB4.1 billion,Q3 2006:RMB 3.3 billion)

Well-Recognized Brands

11

Our Key Our Key StrengthsStrengths

Extensive retail network comprising5 hypermarkets, 39 supermarketsand 127 convenience stores

Strong retail network in densely populated and affluent Chaoyang District

Hosting of the Beijing Olympicsin 2008

Locality of Operations ..... Greater Beijing Region

ChaoyangDongcheng

Fengtai

Chongwen

3rd Outer Ring

4th Outer Ring

5th Outer Ring

Beijing CapitalInternational Airport

Central Business District

No. of Retail Outlets in Chaoyang District:• 2 Hypermarkets• 23 Supermarkets• 106 Convenience Stores

12

Integrated Retail and Wholesale Distribution Network

Our Key Our Key StrengthsStrengths

Timely collectionof first-hand information

on market trends andconsumer preferences

Broader customer base

Higher bargaining powerand better concession

on bulk purchase

Stability in sourcingand distribution

of products

13

Minimize costs and increase profit margin

Fully equipped for future expansion of distribution network

Our Key StrengthsOur Key Strengths

Centralized Logistics Centers and Distribution Centers

Chaoyangdistrict

Distributioncenters

Retail Distribution Business

Wholesale Distribution Business

TianjinDry products

Logisticscenters

Live & freshproduce

14

Title Responsibility

WEI Tingzhan

LI Jianwen

LIU Yuejin

CHEN Limin

LI Chunyan

Chairman

Executive Director/General Manager

Executive Director

Chief Financial Officer

Executive Director/Joint Company Secretary

Overall strategies planning

Business development andoperation

Retail operation

Financial affairs

Legal affairs

Our Key StrengthsOur Key Strengths

Experienced & Stable Management

Well-established merit based

reward system

Over 20 years

of experience

Strong vision

15

Strong Financial Strong Financial PositionPosition

(1) After adjusting for non-recurring revaluation gain on Jinsong Supermarket(2) After adjusting for one-off bank interest income and related tax from over-subscription

Significant growth in Revenue, Net Income & Net Margin from Continuing Operations

Net NetRevenue Income MarginRMB million RMB million %

2003 2,894 38.2 1.3

2004 3,569 54.8(1) 1.5(1)

2005 4,122 75.1 1.8

2003 – 2005 Revenue & Net Income CAGR: 19.4% / 40.3%

05/06 9-months Revenue & Net Income Growth: 6.0% / 22.2%

30 September 2005 3,087 59.8 1.930 September 2006 3,273 73.1(2) 2.2(2)

16

Shareholding Shareholding & Corporate & Corporate StructurStructure e

44.24% 3.52% 5.84% 39.47%

ChaoyangAuxillary

3 Corporate Promoters(1) Public

Beijing Xinyang Tongli Commercial

Facilities Company Limited

(Commercial equipment installation

& repair)

Beijing Chaopi Trading Company

(Wholesaling distribution)

Beijing Jingkelong (Langfang)

Company Limited

(Hypermarket operation)

52.03% 76.42% 80.00%

Individual Promoters

Beijing Jingkelong Supermarket

Chain Company Limited

(Supermarket operation)

100.00%

6.93%

Shanxi Trust(2)

(1) Represents three small suppliers of the Group(2) A professional trustee company and is holding Domestic Shares as trustee for

122 employees and officers of the Company

17

Section 2: Section 2: Industry OverviewIndustry Overview

18

Regions in the PRC with the Highest Per Capita Annual Regions in the PRC with the Highest Per Capita Annual DisposalDisposal

Income and Living Expenditure of Urban Residents in 2005Income and Living Expenditure of Urban Residents in 2005

Beijing, One of the Regions with the Beijing, One of the Regions with the Highest Per Capita Annual Disposable Highest Per Capita Annual Disposable Income and Living ExpenditureIncome and Living Expenditure

Source: National Bureau of Statistics of China

Disposable Income Living expenditure

0

5,000

10,000

15,000

20,000

Beijing Zhejiang Tianjin Jiangsu ChongqingShanghai Guangdong Fujian Shangdong

Per

Cap

ita

(RM

B)

19

Source: Beijing Municipal Bureau of Statistics

Rapid Growth in Retail Rapid Growth in Retail Sales ofSales ofConsumer Goods in BeijingConsumer Goods in Beijing

Retail Sales of Consumer Goods in Beijing Retail Sales of Consumer Goods in Beijing (RMB billion)(RMB billion)

95.0

150.9165.9

183.1200.5

229.7

262.7

0

50

100

150

200

250

1995 1999 2000 2001 2002 2003 2004

CAGR: 11.8%

290.3

2005

300

20

Chaoyang District – One of the Top Chaoyang District – One of the Top Average Wages amongst Districts in Average Wages amongst Districts in Beijing in 2005Beijing in 2005

Source: Beijing Municipal Bureau of Statistics

Number of Employed Persons Average Annual Wages per Employed Person

Chaoyang Fengtai Xuanwu ShijingshanHaidian Xicheng Dongcheng Daxing Chongwen

100

300

500

700

900

5,000

15,000

25,000

35,000

45,000('000) (RMB)

21

Section 3: Section 3: Retail Retail BusinessBusiness

22

Strategic investment in modernized back-end support during track record period led to prudent growth in retail outletsContinue to expand number of hypermarkets and supermarkets through self-operated mode

Retail Outlets are mostly locatedRetail Outlets are mostly locatedin Chaoyang District of Beijingin Chaoyang District of Beijing

Number of Retail Outlets directly operated by the Group as at the date indicated:

Number of franchised stores:

Fengtai

4th Outer Ring

5th Outer Ring

Beijing CapitalInternational Airport

Central Business District

Chongwen

Dongcheng

3rd Outer Ring

Chaoyang

No. of Retail Outlets in Chaoyang District:• 2 Hypermarkets• 23 Supermarkets• 106 Convenience Stores

2003 20052004

Hypermarket

Supermarket

Convenience Stores

4273465

4

26

3565

4263464

2006

5

38

39

82

31 December

LPD-2008

4

1616

36

Planned new store

openings

2003 20052004

Supermarket

Convenience Stores

4

46

50

5

88

93

4

72

76

2006

1

88

89

31 December

LPD-2008

-

35

35

Planned new store

openings

23

Optimize product mixby enhancing

operation capability of live and fresh produce

in the Retail Outlets

Increase number ofin-house branded products

Our Strategy to Our Strategy to RetailingRetailing

Solid top line growth without

scarifying Profitability

Increase paceof expansion throughorganic growth and/ormerger & acquisitions

Renovate and upgrade existing Retail Outlets

Strengthenthe logistics and

information systems

24

Limited Exposure to Rental Limited Exposure to Rental InflationInflation

Long-term leases for all of its directly-operated retail outlets, with a step up clause of 5% once every five years

During the past three years and nine months ended 30 September 2006, rental costs as a percentage of the Group’s revenue is 0.65%, 0.96%, 0.96% and 1.14% respectively

A defensive player amongst its competitors

25

Live and Fresh Produce Logistics Center and Dry Products Logistics Center situated in the Chaoyang District

CAPEX of RMB53 million and RMB57 million respectively

Consolidate orders and provide daily consumer products to Retail Outlets in the Greater Beijing region

Provide logistics support to wholesale distribution business during peak season

Logistics Logistics CentersCenters

26

Business Statistics by Business Statistics by FormatFormat

2003 2004 2005

As at Dec 31

HypermarketsHypermarkets

438.69.7

42.347.3

7.2

438.69.7

46.245.910.5

438.6

9.7

49.248.4

6.2

Number of stores

Total operating area (’000 sq.m.)

Average area per store (’000 sq.m.)

Revenue/Operating area/day (RMB)

Average value per transaction (RMB)

Same store sales growth (%)

20064

38.6

9.7

48.6

49.2

(1.6)

As at Sept 30

2003 2004 2005

As at Dec 31

SupermarketsSupermarkets

2765.12.4

51.225.5

2.5

26

66.92.6

48.1

25.03.1

26

65.4

2.5

46.9

27.84.0

Number of stores

Total operating area (’000 sq.m.)

Average area per store (’000 sq.m.)

Revenue/Operating area/day (RMB)

Average value per transaction (RMB)

Same store sales growth (%)

200639

89.2

2.3

47.6

29.2

5.0

As at Sept 30

27

Business Statistics by Format Business Statistics by Format (Cont’d)(Cont’d)

2003 2004 2005

As at Dec 31

Convenience Stores Convenience Stores

Number of directly operated stores

Total operating area (’000 sq.m.)

Average area per store (’000 sq.m.)

Revenue/Operating area/Day (RMB)

Average value per transaction

Same store sales growth (%)

34

7.7

0.23

54.5

10.3

(7.6)

34

8.2

0.24

49.7

9.3

(5.8)

35

8.1

0.23

55.3

9.0

5.6

2006

36

8.2

0.23

57.2

8.4

3.6

As at Sept 30

28

Section 4: Section 4: Wholesale Wholesale BusinessBusiness

29

Close relationship with suppliers and customers build over 20 years of operating history

Huge market potential brought forth by rapid growth of retail industry

With long history in wholesale sector, the Group is prepared for future competition from foreign competitors

Control supply chains to prevent revenue leakage and strengthen customer loyalty

Logics Behind Going into Logics Behind Going into WholesalingWholesaling

30

Our Strategy to Our Strategy to WholesalingWholesaling

We provide wholesale supply of daily consumer products including food products, beverages and wine product to customers including our own Retail Outlets and other local and foreign retail operators and trading companies

2003 2005(RMB M) 2004

Revenue

Gross Profit

Gross Margin

1,026.7

84.4

8.2%

2,057.4

205.6

10.0%

1,555.9

130.6

8.4%

Capture moresole distributorships

Increase our pace ofexpansion in

Eastern and Northern China

Revenue

CAGRCAGR

42%42%

20062005

1,622.9

165.9

10.2%

1,528.9

151.4

9.9%

31 December 30 September

31

Distribution Distribution CentersCenters

Provide accurate and latest market intelligence to customers

Monitor market demand and fluctuations at the retail level

To support retail distribution business during peak season

2 Distribution Centers, located in Chaoyang District and Tianjin respectively

Wholesaling of daily consumer products to retail outlets, and other retail operators and trading companies

To acquire additional automated loading systems from Japan in order to strengthen distribution capacity

32

Section 5: Section 5: Financial Financial HighlightsHighlights

CHEN LiminCHEN LiminChief Financial OfficerChief Financial Officer

33

Profit after Adjusting Profit after Adjusting forforNon-Recurring EventNon-Recurring Event

2003 2004

Year ended Dec 31

2005(RMB M)

Profit attributable to Equity Holders

Less:

Revaluation gain on exchangeof fixed assets, net of tax

Bank interest from over-subscription

38.2

—

—

38.2

73.2

(18.4)

—

54.8

75.1

—

—

75.1

2003 – 2005 CAGR: 40.3%

Jingkelong has relinquisheda property in June 2002 for redevelopment purposes in exchange for a property with similar size from the property developer

The replacement was completed in December 2004 and a property of similar size was transferred to the Company

Revaluation Gain onRevaluation Gain onExchange of Fixed AssetsExchange of Fixed Assets

2006

88.6

—

(15.5)

73.1

Nine months ended Sept

30

59.8

—

—

59.8

2005

05/06 9-months Growth: 22.2%

34

Contributions from Continuing Contributions from Continuing OperationsOperations

Strong growth in revenue and gross profit from wholesaling

Significant investment in logistics infrastructure and is now ready forrapid expansion for retail and wholesale businessesRevenueRevenue Gross ProfitGross Profit

Year ended Dec 31

(RMB million) (RMB million)

1,864 2,009

1,027

1,556

0

1,000

2,000

3,000

4,000

2003 2004 2005

264 272

84131

0

100

200

300

400

500

2003 2004 2005

5,000

2,061

2,057

293

206

Retailing

WholesalingRetailing

Wholesaling

2005 2006Nine months

ended Sept 30Year ended Dec

31

2005 2006Nine months

ended Sept 30

51.5%

7.7%

32.1%

2.5%

56%

3%

57.2%

7.7%

1,554

1,529

1,648

1,6236.1%

6.0%

210

151

241

166

14.8%

9.9%

35

(RMB million)

Year ended Dec 31

Hypermarkets Convenience Stores

7.8%

10.5%

Supermarkets

2.6%

592 654

1,1211,208

152148

0

300

600

900

1,200

1,500

1,800

2,100

2003 2004 2005

695

1,205

161

6.2%

0.2%

8.7%

1.6%

Turnover Breakdown by Turnover Breakdown by Retail SegmentsRetail Segments

Hypermarkets and Supermarkets contribute over 90% revenue to retail distribution business

Nine months ended Sept 302005 2006

512

1,007

128

520

917

118

9.8%

8.5%

592 654

1,1211,208

152148

695

1,205

161

36

Operating Expenses Operating Expenses fromfromContinuing Continuing OperationsOperations

For the year ended Dec 30

2004

Cost of sales Selling &distribution costs

Administrativeexpenses

20052003

Stringent cost control

87.9%9.7%3.2% 88.7%

8.9%2.5% 87.9%

9%2.2%

As a percentage of revenue

2005 200688.2%8.7%2.3% 87.5%

8.7%2.8%

For the nine months ended Sept 30

37

A Fairly Stable Gross Profit Margin inA Fairly Stable Gross Profit Margin inRetailing with a Strong Growth in Retailing with a Strong Growth in WholesalingWholesaling

Optimization of product mix and logistics arrangement of live and fresh produce in convenience stores led to a reboundin gross profit margin in 2005

Establishment of new subsidiaries specialized in major product categories, the acquisition of more sole distributorships and the well established reward system gave rise to continuous improvement in gross profit marginWholesalingWholesalingRetailingRetailing

12

13

14

15

16

17

2003 2004 2005 3Q 2006

Hypermarkets

Supermarkets

Convenience Stores

7

8

9

10

11

2003 2004 2005 3Q 2006

14.614.6

14.7

13.3

13.6

13.0

14.3 13.914.7

15.5

13.6

14.8

10.210.0

8.2

8.4

% %

38

Selected Financial Selected Financial RatiosRatios

(1) After adjustment for non-recurring items(2) After adjustment for non-recurring items and increase in equity from listing

proceeds

Gross profit margin

EBITDA margin

EBIT margin

Net profit margin

Effective tax rate

Return on equity

Current ratio

Net gearing ratio

2003

Key Financial RatiosKey Financial Ratios

2004

As at Dec 31

12.1%

5.3%

4.0%

1.8%

32.4%

20.9%

0.82

128.6%

11.3%

4.9% (1)

3.7% (1)

1.5% (1)

34.5%

17.0% (1)

0.87

101.5%

12.1%

4.6%

3.0%

1.3%

31.2%

14.0%

0.74

98.1%

20062005

12.5%

6.1%(1)

4.8%(1)

2.2%(1)

33.2%

19.4%(2)

1.26

0.1%

As at Sept 30

39

Selected Financial Ratios Selected Financial Ratios (Cont’d)(Cont’d)

Inventory turnover days

Debtor turnover days

Creditor turnover days

Fixed assets turnover

Operating lease / revenue

Staffing expenses / revenue

Finance costs / sales

Retail: revenue / employee (RMB)

Key Financial RatiosKey Financial Ratios

2003 2004

As at Dec 31

20062005

As at Sept 30

46

23

68

6.7x

0.7%

5.8%

0.7%

468,000

41

31

66

7.7x

1.0%

4.7%

0.6%

542,000

37

38

64

8.3x

1.0%

4.3%

0.5%

586,000

43

35

62

6.0x

1.1%

4.8%

0.5%

435,000

40

Section 6: Section 6: Future PlansFuture Plans

WEI TingzhanWEI Tingzhan

41

Future Future PlansPlans

Our 5 key business objectives going forward are:

Further expand our Distribution Network in Greater Beijing Region, Eastern and Northern China

Upgrade Logistics and Distribution Centers to further improve distribution capability

Upgrade Retail Outlets to strengthen customers’ loyalty

Keep on strengthening internal control

Continue to invest in management information systems