About YIHAI INTL Company

We are a leading manufacturer of compound seasonings in China, mainly focusing on the hot pot seasoning market. According to Frost & Sullivan's data, in terms of sales value in 2015, we are the largest producer of high-end hot pot condiments in China, accounting for more than 30% of the market share, three times that of the second-largest market participant. According to Frost & Sullivan, in terms of sales value in 2015, we are also the second largest producer of hot pot seasoning in China, accounting for 6.8% of the market share. According to Frost & Sullivan, we are the only producer of fondue seasoning that focuses mainly on the rapidly growing middle and high-end markets. During the track record period, the vast majority of our hot pot seasoning products were high-end products. We are the company with the fastest increase in sales value among the top five hot pot seasoning manufacturers in China. Benefiting from the widely recognized “Haidilao” brand, our strong market-oriented ownership and solid 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 the 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 by relentlessly implementing the following strategies: (i) continuing to focus on the middle and high-end sector; (ii) continuing to expand into new segments of the compound seasoning market; and (iii) a strong commitment to product quality, 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 pickled cabbage fish seasoning). As of December 31, 2015, we have three main product lines, offering 56 products. 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- and fourth-tier cities, and 11 foreign countries and markets, enabling our products to reach 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 stores). Furthermore, we have established and continuously strengthened our share of 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 Haidilao Group's exclusive supplier of hot pot seasoning products in China, and our products are an important cornerstone of Haidilao Group's successful development. According to Frost & Sullivan, in terms of sales value, in 2014 and 2015, Haidilao Group was the largest chain of hot pot restaurants in China and the number one Chinese food company in China. In 2013, 2014 and 2015, Haidilao Group had 93, 111 and 142 hot pot restaurants in 24, 29 and 39 cities across China, and 2, 4 and 7 hotpot 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 the recognition and acceptance of our products by customers. The display and sale of our products at Haidilao Hot Pot Restaurant allows us to reach 50 million target customers who dine at these restaurants every year, including 8.6 million target customers who are members of the Haidilao Group.