GOLDLION Holdings has agreed to buy a 40,000 sq ft building in Shanghai for 16.5 million yuan (about HK$22.1 million) to set up a wholesale centre. Chairman Tsang Hin-chi said the Shanghai wholesale centre would also serve as a foothold for Goldlion to expand its presence in eastern China. Speaking after yesterday's Federation of Hongkong Industries seminar, he said Goldlion had signed a letter of intent to pay 16.5 million yuan for the building on a 15,000 sq ft site in Shanghai. A deposit of 750,000 yuan was paid, but the purchase had yet to be approved by the Shanghai authorities. The eight-storey building will be refurbished to locate a wholesale centre for Goldlion, which sees Shanghai as a major point for expansion in China. Mr Tsang also said Goldlion had signed a joint-venture contract with the Nanjing Jinling Hotel for the upgrading and management of a 20,000 sq ft shopping mall in Nanjing. Goldlion had taken a 51 per cent stake in the venture, which involved a total investment of US$4 million, and the shopping mall would be renovated and upgraded to sell Goldlion products and other brands, he said. He said his group had taken various measures to offset the negative effect of the depreciation of the yuan, and its mainland subsidiary Silverlion had reported improved performance last year.