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 34,441,169 shares of Meicai’s series D preferred shares 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.

During the Period, Meicai continued to maintain steady, high-quality growth in the food and beverage supply chain and consistently improved its financial performance by optimizing its business structure, refining its organizational network and enhancing synergies. The Company is confident that Meicai will continue its business expansion and become an industry leader.