An agreement between CR Enterprise and TESCO on the establishment of a joint venture has been recently approved by relevant authorities and the two parties will co-establish a multi-element retail company that is planned to engage in retail businesses including hypermarkets, supermarkets, convenience stores, cash-and-carry businesses and franchised wine shops in Greater China Region (including Mainland China, Hong Kong and Macao). TESCO will contribute to the new joint venture with its business in China (including Tesco supermarkets) and cash contribution accounting for 20% of the capital shares of the new joint venture while CR Enterprise will indirectly hold 80% of it. After the establishment of the joint venture, the business of CR Vanguard supermarkets will be integrated with 135 TESCO stores in China and TESCO’s shopping center services.

As one of Fortune 500 companies and one of the world's three major retail companies, TESCO has advanced global retail experience, international procurement and supply chain management capabilities and unique advantages in terms of customer management, self-owned brands and multi-channel retail, with a total of 25,000 employees in China. The joint venture, drawing on advantages of the two world's Top 500 companies, will promote the rapid development of the retail business of the new joint venture in future and the competency of the two giants on the retail market of China while contributing to the prosperity of the retail market of China.