Import and Export Branch and Orient Department Store of Nanjing Xinjiekou Department Store Stock Co., Ltd. (Xinbai for short) were checked by Nanjing Bureau of Taxation due to spuriously making out value added tax receipts. On March 30 2007, Nanjing Xinbai received relative files from Nanjing Bureau of Taxation.

On February 22 2006, Nanjing Bureau of Taxation entered into Nanjing Xinbai and Orient Department Store to check matters concerned spuriously making out value added tax receipts on import and export operations. Now it has been found out. From January 2002 to October 2005, under the process that Nanjing Xinbai and Orient Department Store received Nanjing Huarun Oriental Investment Management Co., Ltd. on import and export operations of apparels, Nanjing Xinbai and Orient Department Store were utilized and controlled by Nanjing Huarun to receive and make out parts of spurious value added tax receipts. They also acquired part of spurious value added tax receipts from relative enterprises in Shenzhen and made out part of spurious value added tax receipts to relative enterprises of Shenzhen and Shanghai. After new directorate on duty in 2004, the cooperation and relative operation with Nanjing Huarun were ended.

In the morning of April 4, Nanjing Xinbai held the News Conference in Orient Department Store. General Manager Fu Dunxun of Xinbai told the reporter that Xinbai has ended the cooperation and relative operations with Nanjing Huarun and evacuated from the field of import and export trade. Fu Dunxun said that the benefit increase momentum of Xinbai was not affected.

Will customers be affected? Fu Dunxun said that Xinbai was an old enterprise with 55-year history. It has rich experiences in local market.