Condiments
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On 4 September 2018,
the Group successfully acquired 100% interest of Jiahao Foodstuff Limited and
its subsidiaries. Driven by the development of the domestic economy, increasing
urbanization, consumption upgrade, and change of consumption environment and
patterns, China’s foodservice market enjoys a rapid growth. As the foodservice
industry further develops towards to chainstore and customized direction,
restaurants’ demand for condiments of high quality, high stability and
high-customization grows significantly. Established in 1994, Jiahao has
advantages in the niche market. Jiahao’s two major products, chicken bouillon
and wasabi paste, are widely known and recognized in China’s foodservice
industry and possessed a leading market share. Jiahao positions itself as
“Professional brand for the professional chef”, its “Close Connection” marketing
strategies enables the company’s salespersons to better understand the chefs
and restaurants’ demand, thereby developing products that could meet the
market’s demand and preference. In addition, Jiahao is located in the trade
centre Zhongshan, a city that has easy access to all means of transportation
with an advantage over production cost. The management of Jiahao have extensive
operating and managing experience in the condiment industry. After the
acquisition, the Group will gradually implement the synergies of the
acquisition in terms of distribution network, cost control and research and
development. The acquisition of Jiahao is an implementation of the Group’s
strategy “Concentric Diversification based on Consumers’ Demand in the
Taste-based Fast-moving Products Industry”. Jiahao offers an opportunity to the
Group to break into the RMB100 billion condiment market. Jiahao will expand the
Group’s business operation scope, optimize business structures, and create more
value for our shareholders.