“Xingmeihui” specializes in operating in-theater counter sales and an online shopping platform, with an aim to provide customers with a brand new shopping experience that combines online shopping and physical store sales.

After two years of planning and development, “Xingmeihui” has defined its market position precisely and formulated a clear development strategy of providing customers with high-quality and diversified products, including peripheral products for movies and TV programs, as well as high-end brand products, specialty food items and fashionable daily staples etc. from Hong Kong, Macau, Taiwan and overseas, so as to fully satisfy various needs of customers.

During the year under review, the Company increased its resources commitment and transformed the existing movie audiences to “Xingmeihui” retail customers through the New Membership Plan. It is believed that clear development positioning and adequate resources commitment would enable the business to maintain a stable growth in next few years and is expected to become the new income growth driver for the Group.

In late 2013, the first “Xingmeihui Digital Experience Museum” was grandly opened in Beijing, another unprecedented achievement of SMI’s innovative business model. The Museum displays and sells digital products of famous brand all over the world with complete brand portfolio and variety of products, and innovated to introduce open experience model and provides “online order and offline pickup” service. In the future, the Group plans to identify more suitable provinces and cities to open more Xingmeihui Digital Experience Museums and it is believed that this business would become the Group’s new business growth points and bring new momentum for the Group’s income growth in the future.

We endeavor to form partnerships with domestic and overseas outstanding parties to enhance the joint promotion of “Xingmeihui” business development.

In February 2014, the Company established a long-term business strategic partnership with Beijing Jingdong Century Trading Co., Ltd. (“JD.com”), a domestic online retail giant of electrical appliances and digital products. It is believed that such cooperation could further enrich the digital goods mix in xingmeihui.com, provide a stable supply of merchandise, facilitate the increase in market share of “Xingmeihui”, improve sales revenue, enhance brand influence and brand awareness, thereby benefiting the future expansion and development of “Xingmeihui”.

Currently, Xingmeihui has its coverage in the first and second tier cities as well as economically developed regions and begins to establish footholds in the third and fourth tier cities. The Group plans to increase the platform to 500 in next three years, which includes the planning of having more spaces to set up new “Xingmeihui” counters in existing theaters zones, active expansion in the third and fourth tier cities and opening of community shops outside theaters.