Since 2006, due to the rapid growth of the PRC retail sportswear industry, improving Pou Sheng's competitiveness through accelerating its growth plan has become an important part of Pou Sheng's business strategy. Pou Sheng has then decided to adopt a flexible method to expand its footprints in the PRC by establishing regional partnerships with different regional joint venture partners, which Pou Sheng believed is an efficient way to extend Pou Sheng's market presence into emerging cities in the PRC. Therefore, as part of Pou Sheng's expansion strategy, Pou Sheng has set up a number of joint ventures, with leading retail players in their respective regional markets in the PRC. Currently, Pou Sheng has a total of 22 joint ventures in the PRC. Pou Sheng has majority interests in six joint ventures in the PRC that are accounted for as its non wholly-owned subsidiaries. All of the joint venture partners in these joint vertices are independent of one another. Pou Sheng has minority interests in the other 16 joint ventures, or the regional joint ventures. The regional joint ventures have a presence in 22 provinces, autonomous regions and municipalities in the PRC.