On 24 November 2016, the Company entered into an investment agreement with Meicai (previously named Spruce), pursuant to which the Company agreed to subscribe for the newly issued equity interests of Meicai at a cash consideration of US$25.70 million. Meicai is a holding company incorporated in the Cayman Islands. Its business model shortens the flow of agricultural products at all levels, reducing the cost of raw material procurement, manpower and prices for customers, while providing customers with a wide range of commodities, connecting one end of the supply chain to the fields and one end to urban consumers, satisfying users with a “one-stop shopping” experience. With small and medium-sized food and beverage merchants as the entry point, Meicai focuses on providing restaurants and fruit and vegetable shops with a one-stop, full range of raw material procurement services for food and beverage. Meicai is an independent third party of the Group.

With the impact of COVID-19 gradually waned, Meicai maintained steadily and with high quality in the food and beverage supply chain by continuing to optimize its business structure, improving its organisational network and improving synergies during the Period, resulting in a continued improvement in financial performance. The Company is confident that Meicai will continue its business expansion at a satisfactory growth rate and become a leader in this industry.