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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.