About YIHAI INTL Company

We are China's leading producer of compound seasonings, primarily focused on the hot pot seasoning market. According to Frost & Sullivan, based on 2015 sales value, we were the largest producer of mid-to-high-end hot pot base seasonings in China, capturing over 30% of the market share—three times that of the second-largest player. Also according to Frost & Sullivan, we ranked as the second-largest hot pot seasoning producer in China in 2015, with a 6.8% market share. Furthermore, Frost & Sullivan reports that we are the only major producer specializing exclusively in the rapidly growing mid-to-high-end hot pot seasoning segment. During the track record period, the vast majority of our hot pot base products were mid-to-high-end, and we were the fastest-growing company in terms of sales value among China's top five hot pot seasoning producers. Benefiting from the widely recognized "Haidilao" brand, coupled with our market‑driven, robust core competencies and solid innovation capabilities, extensive network coverage, advanced production technologies, and stringent quality control mechanisms, we are one of the few nationally acclaimed compound seasoning producers in China. We are committed to becoming China's leading provider of culinary seasoning solutions. Our market leadership is built on the success of our products. We aim to deliver comprehensive, high-quality offerings by relentlessly executing the following strategies: (i) maintaining a steadfast focus on the mid-to-high-end segment; (ii) continuing to expand into new sub‑segments within the compound seasoning market; and (iii) remaining firmly dedicated to product quality, keeping pace with evolving consumer expectations and food safety standards. We supply a wide range of seasonings, from hot pot condiments to Chinese compound seasonings such as mala xiangguo and pickled fish seasoning. As of December 31, 2015, we operated three main product lines, offering a total of 56 distinct products. We have established an extensive nationwide distribution network. By December 31, 2015, our 339 distributors covered all 31 provincial-level regions in China, including every first-tier city, 28 second-tier cities, and 134 third- and fourth-tier cities, as well as 11 overseas countries and markets. This enabled our products to reach more than 6,000 large supermarkets and hypermarkets across China—including Walmart and Carrefour—alongside traditional retail channels such as grocery stores, neighborhood shops, and butcher shops. In addition, we have successfully established and steadily strengthened our presence in overseas markets through our distributors. Our physical distribution network is further complemented by e‑commerce channels like Tmall and JD.com. Our products are sold in 11 countries and overseas markets across North America, Europe, and Asia. We are the exclusive supplier of hot pot base products to the Haidilao Group in China, and our products serve as a critical cornerstone of Haidilao's successful growth. According to Frost & Sullivan, in terms of sales value, Haidilao was China's largest chain of hot pot restaurants and the country's top-ranked Chinese restaurant enterprise in both 2014 and 2015. From 2013 to 2015, Haidilao operated 93, 111, and 142 hot pot restaurants in 24, 29, and 39 cities across China, respectively, while also maintaining two, four, and seven overseas locations in two, three, and five foreign countries, respectively. Haidilao's continuous expansion and development in China and globally have significantly boosted our business growth and enhanced customer recognition and acceptance of our products. Annual in‑restaurant displays and sales of our products at Haidilao hot pot restaurants allow us to engage directly with 50 million target customers dining at these outlets each year, including 8.6 million members of the Haidilao loyalty program.