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 logistics artificial intelligence service and intelligent equipment supplier in China with its business coverage spanning across China and its neighboring countries in Asia. G7 is connected to cargo vehicles from various customers. By installing smart devices on vehicles in the fleet, G7 utilizes real-time sensing technology to provide data services that span the entire logistic process, to connect the data of every single vehicle, consignor, fleet owner and driver, and thus to improve the efficiency of logistic service. Based on big data of the connected vehicles, G7 cooperates with premium partners from oil distribution, toll roads and bridges, insurance, banking and financial leasing industries to establish a one-stop service platform that integrates primary consumption of fleets. The platform enables safer, more economical, more efficient and more environmentally-friendly logistic services. G7 is an independent third party of the Group.
Despite the adverse impact of the COVID-19 epidemic, G7 completed the share swap and merger with Shenzhen Yiliu Technology Co., Ltd.("E6") in the first quarter of 2022 and completed the first phase of business integration with E6 in order to consolidate its competitive advantage and enhance its integrated service capabilities to take advantage of the favourable market opportunities. E6 has a long history of working with large shippers and large logistics companies, focusing on providing IoT-based software subscription services to its customers. The Company expects that through this merger, G7 will become the largest and most influential data services company in the industry, covering key vertical markets from production logistics to consumer logistics, with customers including major players in the road freight market, a product portfolio that forms a one-stop digital service, and a further strengthened technological advantage.