About YIHAI INTL Company

We are a leading producer of compound seasonings in China, focusing mainly on the hot pot seasoning market. According to Frost & Sullivan, in terms of sales value in 2015, we are the largest producer of high-end hot pot seasoning in China, accounting for more than 30% of the market share, which is three times that of the second-largest market participants. According to Frost & Sullivan, we are also the second-largest producer of hot pot seasoning in China in terms of sales value in 2015, accounting for 6.8% of the market share. According to Frost & Sullivan, we are the only producer of fondue seasoning focused primarily on the rapidly growing mid-to-high-end market. During the track record period, the vast majority of our hot pot base products were high-end products. We are the company with the fastest growing sales value among the top five hot pot seasoning manufacturers in China. Benefiting from the widely recognized “Haidilao” brand and our strong market-oriented focus and steady innovation capabilities, extensive network coverage, advanced production technology and strict quality control mechanisms, we are one of the few nationally renowned compound seasoning manufacturers in China. We are committed to becoming a leading supplier of cooking seasoning solutions in China. Our market leadership is based on the success of our products. We aim to provide comprehensive and high-quality products through relentlessly implementing the following strategies: (i) maintaining focus on the middle and high-end sector; (ii) continuing to expand into new segments of the compound seasoning market; and (iii) being committed to product quality and keeping up with evolving consumer expectations and food safety standards. We supply a wide range of condiments, from hot pot seasonings to Chinese compound seasonings (such as spicy hot pot and sauerkraut fish seasoning). As of December 31, 2015, we have three main product lines with 56 products available. We have established an extensive nationwide distribution network. As of December 31, 2015, our 339 dealers covered 31 provinces in China, all first-tier cities, 28 second-tier cities, 134 third-tier and fourth-tier cities, and 11 foreign countries and markets, enabling our products to be delivered to more than 6,000 large supermarkets and supermarkets in China (including Walmart and Carrefour), as well as traditional retail channels (such as grocery stores, community stores and meat shops). Furthermore, we have established and continuously strengthened our share in overseas markets through our distributors. Our physical network is further complemented by e-commerce channels such as Tmall and JD. Our products are sold to 11 countries and markets in North America, Europe and Asia and overseas regions. We are the exclusive supplier of Haidilao Group's hot pot base products in China. Our products are an important cornerstone of Haidilao Group's successful development. According to Frost & Sullivan, in terms of sales value, Haidilao Group was the largest chain of hot pot restaurants in China and the number one Chinese food company in China in 2014 and 2015. In 2013, 2014 and 2015, Haidilao Group owned 93, 111 and 142 hot pot restaurants in 24, 29 and 39 cities across China, and owned 2, 4 and 7 hot pot restaurants in 2, 3 and 5 overseas locations, respectively. The continuous expansion and development of Haidilao Group in China and around the world has greatly contributed to the growth of our business and increased customer recognition and acceptance of our products. Displaying and selling our products at Haidilao hot pot restaurants allows us to reach 50 million target customers who dine at such restaurants every year, including 8.6 million target customers who have members of the Haidilao Group.