About PAGODA GP Company

We are the largest fruit retail dealer in China. For ten consecutive years (2014-2023), we have the highest sales volume of fruit chain stores in the country. We have built a nationwide fruit franchise retail network close to the community, integrated storehouse, and online and offline. In 2023, in order to clarify the Group's long-term development goals and promote the Group's continued growth, we optimized the organizational structure into three major business groups: retail business group, 2B business group, and category business group. In 2023, we will focus mainly on the development of the retail business group, focusing on expanding the scale of stores and improving the operational efficiency of existing stores. In terms of expanding the size of stores, we are not only encrypting stores in high-tier cities to enhance users' mentality and exert scale effects; at the same time, we are also seizing the opportunity of a sinking market and actively expanding new cities around the existing 29 warehousing and distribution centers. In 2023, we had a net increase of 443 stores, bringing the total number of stores to 6,093, covering more than 170 cities in 22 provinces and municipalities directly under the Central Government. Based on the characteristics of fruit retail and meeting the convenience needs of consumers, we use diversified online channels, including proprietary apps, WeChat applets, and third-party platforms such as Douyin, Meituan, and Hungry, based on an offline store network, to expand the sales radius of stores and improve store operation efficiency. Our share of online orders in 2023 was around 27.6%. Our 2B business group maintained a good growth trend in 2023, with a year-on-year increase of about 42.5% over the previous year. Our 2B business group mainly uses the advantages of existing supply chain resources to expand and strengthen individual products and expand sales channels and customer base at home and abroad. At the same time, we have achieved control over Shenzhen Panguo this year. Through collaborative development with Shenzhen Panguo, we can further enhance our supply chain advantage and expand our market share. In order to build category brands and enhance product competitiveness, and support the development of the retail business group and 2B business group, we support suppliers to reduce product costs and improve product quality by providing exclusive varieties, agricultural technical services, full-cycle farming management, post-harvest preservation technology and capital for upstream suppliers. By the end of 2023, we had successfully launched 37 categories of brands to the market. The sales volume of these categories of brands accounted for about 14% of the total sales volume of our stores.