On 29 December 2016, a wholly-owned subsidiary of the Company entered into a convertible preferred share subscription agreement with G7, pursuant to which the Group, as one of the investors, agreed to subscribe for the newly issued preferred shares of G7 at a cash consideration of US$25.00 million. G7 is a leading Internet of Things (IoT) technology company in PRC, operating the largest IoT integrated logistics platform in PRC. Since its inception, G7 has been focusing on serving freight operators in the logistics ecosystem, providing all types of freight operators with integrated software and hardware services, and a full chain of SaaS services. Based on its ability to acquire, integrate and analyze IoT data, G7 provides open platform services to customers through its Big Data Cloud Platform and powerful AI algorithms to meet their needs in all aspects of business and finance in the course of their operations. By providing digital services for the entire logistics landscape, including vehicle management, driver safety, asset services, vehicle insurance and transaction settlement, G7 makes it easy for freight operators to complete their digital transformation so as to improve operational efficiency, reduce operating costs and improve transport safety. G7 is an independent third party of the Group.

Affected by the COVID-19 pandemic and the ongoing adjustment of the overall Chinese economy, China’s logistics industry is still in the process of slow recovery as a whole, and cargo owners and enterprises are more cautious about new investment in digitalisation and technology, which adversely affects G7’s revenue growth. In order to consolidate its business competitive advantage and enhance its integrated service capabilities, G7 has actively expanded its product portfolio, enriched its product functions and improved its data accuracy, helping customers improve their digital capability with technological advantages.