On October 11, 2012, Mr. Jingyuan Gao was appointed to fill the vacancy on the board of directors of QKL Stores Inc. created by the resignation of Mr. Zhiguo Jin on April 20, 2012, until his respective successor is duly qualified and elected to succeed him at the company's next annual meeting or such earlier date of his resignation or removal. The company has determined that Mr. Gao qualifies as independent director. Mr. Gao will serve on each of the Audit Committee, Nominating and Corporate Governance Committee and Compensation Committee and will be the chair of the Nominating and Corporate Governance Committee.

Mr. Gao, age 44, has served as the Chairman of CCSM Consulting Co. Ltd., the Chief Editor of Retail World, the Deputy Secretary-General of China Commercial Culture Research Committee, and has been a consultant to Beijing City University Academic Committee, since 2006.