Home appliance and electronics retailer Sanlian Commercial (600898.SH) released a securities announcement on April 14 stating that the company has sued Sanlian Group, formerly the listed company's largest shareholder, and its affiliated companies in three separate civil cases in the Jinan Lixia District People's Court. Sanlian Commercial said it faces a huge operation risk from Sanlian Group due to disputes over trademarks, assets appropriation, operation area, and leasing cancellation and suspension resulting in store closures. The court is scheduled to start hearing the cases on May 12, 2009.

Sanlian Commercial announced April 16 that its only profitable store in the first three quarters of 2008, located in Weifang, Shandong province, shut its doors when its lease was cancelled by a Sanlian Group-affiliated property company. Sanlian Commercial booked a loss of RMB 44.19 in the first three quarters of 2008. In the same period, the Weifang store recorded net profit of RMB 3.36 million and revenue of RMB 215.83 million, accounting for 19% of total company revenue.