The Group is principally engaged in the production and sales of processed fruit products on an OEM basis and under our own brands.

i.)  OEM sales in the PRC and overseas markets

Our OEM products are directly sold to brand owners and trading entities. The trading entities in the PRC may further export the products to overseas countries or sell our products in the PRC to brand owners or their agents.

ii.)  Sales of own brand products in the PRC and overseas markets.

Sales of our own brand products are directly made to customers who are distributors and retail-ers. We are currently selling processed fruit products under our own brand.

We primarily procure fresh fruit from a variety of independent suppliers in the PRC, with a majority of them located in Anhui, Shandong and Hebei Provinces. Among the fresh fruit we purchased for our production use, we select a portion of the fresh fruit during the incoming raw materials inspection stage and directly re-sell those to wholesalers in the PRC to increase our overall profitability. Our domestic sales of fresh fruit are not conducted under any particular brand.