Shandong Commercial Group Co.，Ltd. (hereinafter referred to Lushang Group) is a large state-owned enterprise that transformed entirely from the Office of Commerce，Shandong Province，in the end of 1992. With the development in the past 17 years， it has now grown into a large enterprise group with modern retail industry as its main business，pharmacy and real estate industries as key industries，covering hospitality，education，media， mining，investment，etc. It owns well known brands such as "Lushang "，" Inzone " and " Freda "and so on. Today，more than 130，000 employees are working for the Group. Lushang Group achieved sales income of RMB 25.6 billion yuan and pre-tax profit of 2.35 billion in 2009， with the two major economic indicators increasing over 30% for seven consecutive years.
      As the main industry of Lushang Group， Inzone Retail is the leading retail enterprise in Shandong，and has been ranked as one of China‘s top 10 retail companies. At present，Inzone Retail has 70 large stores in Shandong，Hebei and Henan provinces，covering high-end department stores，shopping plaza，shopping mall，convenience supermarket， modern household furniture，automobile stores，logistics center，and professional firms and so on. It achieved annual sales revenue of 20 billion Yuan in 2009. Inzone Company Ltd.，a listed company，has become a blue chip stock in Shanghai and Shenzhen Stock Exchange Markets，meanwhile，it operates more than 100 convenience supermarkets in a joint venture with Taiwan’s President Chain Store.
      The pharmacy industry is the key industry of Lushang Group， with four provincial-level research institutes， and three provincial-level laboratories， whose scientific research won the National Scientific and Technological Progress Second Award twice. With its leading ophthalmic products of "Runshu" and "Runjie" Eye Drops accounting for 20% of the domestic market share， it has been China’s largest production base of ophthalmic drugs; leading orthopedic product of “Shipeite" accounts for 80% of the domestic market share of similar drugs. Lushang pharmacy industry also has explored a wide variety of fields，such as cosmetics，health products，traditional Chinese medicine，etc.
      Real estate industry is another important industry of Lushang Group. Through the organic combination with the Group’s retail，hotel，culture and entertainment section，the real estate is comprehensively developing city squares， garden houses，ecological villas and other products. So far it has been the owner of 19 project companies in Shandong， Beijing，Chongqing and other cities，with an annual development area of more than 1.2 million square meters. The ST Lushang Real Estate Co.， Ltd is its listed company.
      The hotel &tourism industry of Lushang Group is mainly engaged in high-star hotels， economy hotels and cultural activities and entertainment. Now it possesses a five-star hotel of Sofitel Silver Plaza and a four-star of Silver Plaza Quancheng Hotel，as well as various four-star hotels entrusted to manage. Cooperating with Accor，Hyatt and other international hotel management companies，the industry is building four five-star hotels and three four-star hotels in Jinan，Qingdao，Linyi and other cities; dozens of economy hotels are under operation; cultural and entertainment involves in leisure，entertainment，fitness，beauty，art collections and other fields，and it is running Inzone New World，a large-scale urban Entertainment Complex. In 2009， the Group set up Inzone Tourism Group by integrating hotel entertainment resources，to create a comprehensive portfolio of tourism industrial chain covering food，housing，transportation，travel，shopping and entertainment.
      The education industry of Lushang Group has three institutions and one university in Jinan，Qingdao，Yantai and Zibo，with the total enrollment of 50，000 students; and runs more than 10 bilingual art kindergartens. Shandong Business Vocational and Technical College located in Jinan， is China’s key vocational school and demonstration vocational school; Qingdao Hotel Management Vocational and Technical College is the first college specializing in hotel management ; Shandong Civic Service  Institute has been favorably known as "China cooking academy "; and Wanjie Medical College is a full-time undergraduate university approved by the Ministry of Education.
      "Shandong Business”， the media industry of Lushang Group， enjoys a daily circulation of more than 300，000 copies across Shandong province. The newly established electronic audio-visual publishing house and the newly acquired "New Tide "， "Classic"， "City Classic"，and Shandong News Net etc.，are under active operation， and strive to be an integrated modern media group covering newspaper，magazine and network. In addition，through acquisition， joint venture， trusteeship， transfer and other channels，Lushang Group has possessed and set up a number of enterprises in mining， investment， food processing，logistics，and Multi-purpose Card， etc.
      Looking into future，in line with macroeconomic trends and the actual situation of the enterprise， Lushang Group has studied and formulated the 2010-2020 "Double 100 Billion" strategic objective: based on 25.6 billion sales revenue in 2009，by the end of 2015，the Group’s sales revenue will be more than 100 billion Yuan; By 2020，the sale income of the Group will exceed 200 billion Yuan.