Mr. Alan Stewart Named Chief Operating Officer
Two New Supermarkets Open Year-to-Date
DA QING, China, Sept. 22 /Xinhua-PRNewswire/ -- QKL Stores Inc. (the "Company") (OTC Bulletin Board: QKLS), a leading regional supermarket chain in Northeast China, today announced the appointment of Mr. Alan Stewart, effective August 6, 2008, as the Company’s new Chief Operating Officer. Mr. Stewart will oversee the Company’s operations, purchasing, and employee training. He will also play an integral role in defining and realizing the Company’s mission and vision. Mr. Stewart will report directly to QKL Stores Inc.’s Chairman and Chief Executive Officer, Mr. Zhuangyi Wang.
Mr. Stewart is joining QKL Stores Inc. with 37 years of retail experience in the United States and 11 years of international retail experience in areas including Singapore, Indonesia, and Saudi Arabia. Most recently, Mr. Stewart was the General Hypermarket Manager of Fairprice Co-operative Ltd., a multi-format retailer in Singapore. Prior to that position, Mr. Stewart served as Hypermarket Director at PT Matahari Putra Prima Tbk., a multi-format retailer in Indonesia, and as CEO of the Supermarket Division, Director of Hypermarkets, and Marketplace Director of PT Matahari Putra Prima. Mr. Stewart holds a Bachelors Degree from Mt. San Antonio College, an Advanced Management Program certification from Harvard Business School, and a Restaurant Executive Program certification from Cornell University.
"We are delighted that Alan has agreed to join our executive team," said Mr. Wang. "His extensive experience in the supermarket industry and his broad knowledge and understanding of retail operations are and will continue to be invaluable to us as we grow our company."
The Company is also pleased to announce the opening of two new supermarkets in Heilongjiang Province this year to date. The first new supermarket, located in Zhaoyuan City near Daqing, opened its doors on March 24, 2008, and is currently operating at a profit. The supermarket occupies approximately 5,600 square meters on three floors of leased space. The total investment in the new supermarket as of its opening day is RMB 7 million (approximately US$1 million), which includes pre-opening expenses for construction, training, and salaries, and administrative and related fees and other costs such as furnishings, display units and equipment. The new supermarket is housed in the Songjiang Pearl Shopping Mall, which occupies a total of 28,000 square meters and is the largest shopping mall in Zhaoyuan City.
The city of Zhaoyuan has a population that exceeds 400,000 residents and contained no large supermarkets prior to the opening of QKL’s supermarket. The Company believes that its most significant competitor in the new location is a local retail store with an area of approximately 800 square meters.
The Company’s second new supermarket is situated in Suihua, which is approximately 110 kilometers from Harbin, the provincial capital. This supermarket opened its doors on July 12, 2008, and occupies approximately 3,870 square meters of leased space in the largest commercial center in Suihua. The supermarket is expected to begin making a profit in January 2009. The total investment in the second new supermarket as of its opening day is RMB 8 million (approximately US$1.2 million), which includes pre-opening expenses for construction, training, and salaries, and administrative and related fees and other costs such as furnishings, display units and equipment.
The city of Suihua has a population of approximately 300,000 persons, with additional potential customers residing on the outskirts of the city in rural and semi-rural areas. The Company believes that there are two other supermarkets competing in Suihua, which occupy approximately 1,000 and 4,000 square meters, respectively.
Mr. Wang said, "We are pleased that we are able to bring our exceptional services and product offerings to the residents of Zhaoyuan and Suihua. All of us at QKL are focused on serving these communities and providing convenience, freshness, low prices, and high quality products."
Mr. Wang concluded, "We remain optimistic about the future growth of QKL. We are currently building additional supermarkets, with plans to achieve 100,000 to 115,000 square meters of space with existing stores by the end of 2008. Our aggressive growth strategy combined with our strong capital position will allow us to quickly grow our business. We will continue to manage our balance sheet to be prepared to capitalize on opportunities we see in the marketplace. We are excited about the future of our business and look forward to continuing on this growth trajectory to optimize value for our shareholders by making QKL the leading retail supermarket company in our market."
About QKL Stores Inc.:
Based in Daqing, China, QKL Stores Inc. is a leading regional supermarket chain company operating in Northeast China. QKL Stores sells a broad selection of merchandise, including groceries, fresh food, and non-food items, through its retail supermarkets, convenience store, and department store; the company also has its own distribution centers that service its supermarkets.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company’s services and projects and the Company’s continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
For more information, please contact:
Company Contact:
QKL Stores Inc.
Rhett Xudong Wang
Tel: +86-45-9460-7987
Investor Relations:
In the U.S.:
Abbie Gellman
Tel: +1-203-682-8200
In Asia:
Bill Zima & Annie Chen
Tel: +86-10-8523-3087
