About PAGODA GP Company

We are the largest fruit retail dealer in China. For ten consecutive years (2014-2023), we have the highest sales of fruit chain stores in the country. We have built a nationwide fruit franchise retail network close to the community, integrated storehouse, and online and offline. Currently, domestic consumption growth is slowing down, and consumers are less willing to spend but are actively pursuing consumer categories with high emotional value and high cost performance. As a result, consumer trends in fruit consumption are characterized by more diversification and individualization. In order to cope with the complex and diverse consumer environment, we began implementing a new strategy of “High Quality Fruit Experts and Leaders” in early 2024, and each business group focused on carrying out three major campaigns with the goal of “building on brand advantages and becoming the first choice for quality”, namely the brand renewal war, the signature fruit leadership battle, and the gift war. In the first half of 2024, the retail business group focused more on high-quality development, focusing on strengthening brand building and optimizing the franchisee ecosystem. We have completely renovated and upgraded nearly 6,000 franchised stores to enhance consumers' awareness of our brand. We are also actively deploying emerging e-commerce channels such as Xiaohongshu and Douyin, and increasing brand exposure and promoting product sales through a series of online and offline marketing activities combining quality and efficiency. In order to enhance the profitability of franchisees, we continue to promote a number of measures such as “Operation Iron Force” assistance, standard store construction, and digital intelligence system support. Furthermore, we are penetrating diverse consumption scenarios by expanding “healthy fruit gifts.” In the first half of 2024, our gift sales increased to 13.0% of total store sales. Benefiting from the continuous expansion of the customer base and product categories in domestic and overseas markets, our 2B business group maintained a steady growth trend in the first half of 2024, with a year-on-year increase of about 30.0% over the previous year. Shenzhen Banguo also further expanded its market share, with a total commodity transaction volume of RMB 1469.7 million in the first half of 2024. Since 2024, we have concentrated our brand resources to promote our signature fruit, and held two separate signature fruit launches in April and July 2024 to further strengthen consumers' awareness of signature fruit and highlight our differentiated advantages. As of June 30, 2024, we have successfully launched 42 categories of brands to the market. Sales of these categories of brands account for about 16.0% of the total sales of our stores. OUR STRATEGY Our strategy is to become an expert and leader in high quality fruit. Our vision Our vision is to become the world's leading ecological technology company in the fruit industry. Our mission Our mission is to let people all over the world enjoy a good life with fruit. Our core values Our core values are conscience, trust, altruism, innovation and results. Conscience means we must have correct ideas and good intentions in the process of development; trust means we should fully trust our partners such as franchisees, suppliers, consumers, and employees; altruism is our guide to action, and we must consider the interests of others when doing anything; innovation accompanies us and bears witness our growth and is the driving force that supports our future development; results mean that we must focus on output in everything we do and optimize our results through the process of optimizing results.