On 15 December 2015, the Company had entered into a share subscription agreement with Jolly and an independent third party of the Company, pursuant to which Jolly agreed to issue an aggregate of 31,449 ordinary shares of Jolly and the Company as one of the investors agreed to subscribe for 7,245 ordinary shares of Jolly at a cash consideration of US$25.00 million. Jolly is an investment holding company incorporated in the Cayman Islands with limited liabilities. Jolly indirectly invested in PG Investment, a PRC company. PG Investment is a leading logistics warehouse infrastructure operator in the PRC, whose principal business includes investment, construction and operation of large scale logistics parks, business facilities and exhibition centers. Jolly and PG Investment are both independent third parties of the Group.

On 25 May 2021, following the completion of the restructuring of overseas red chips, PG Investment became the wholly owned subsidiary of P.G. Logistics, a newly established investment holding company incorporated in the Cayman Islands. As a result, the equity interests of Jolly originally held by the Group has been converted into relevant equity interests of P.G. Logistics in accordance with relevant legal documents. The restructuring of overseas red chips will not affect the actual shareholding ratio of the Group in PG Investment.

On 30 May 2022, the Company proposed to dispose its 4.82% interest in P.G. Logistics on the SUAEX by way of listing-for-sale. On 30 June 2022, at the end of the publication period through SUAEX, the Company was informed that there was one transferee that was qualified for the Disposal, i.e., Shenzhen Aoyuheng (an independent third party of the Company). On 15 July 2022, the Company entered into the Equity Transfer Agreement with Shenzhen Aoyuheng in relation to the disposal of 4.82% interest in P.G. Logistics by the Company to Shenzhen Aoyuheng at a consideration of RMB192,800,000. Upon completion of the Disposal, the Company will not hold any equity interest in P.G. Logistics.

The Company is currently in the course of dealing with matters towards completion of the Disposal.