Announcement on Partial Stock Pledge by Controlling Shareholder and Actual Controller

　　Sanmenxia Lerenjia Food Co., Ltd. was established on December 30, 2014, with a registered capital of 20 million yuan. It is located in the Jiaokou Industrial Park, Hubin District, as the first company there. The company's business scope mainly includes the research, development, production, and sales of pre-packaged foods, beverages, tea, and related products. The company has total assets of 200 million yuan, a fixed staff of 290 employees, and the factory covers an area of 515.37 mu.

　　The company is an agricultural "three-industry integration" industrial group integrating agricultural planting research and development, industrial deep processing, and logistics trade. It is located in the western Henan region of the Yellow River Golden Triangle. The company has built a comprehensive office building, staff dormitory, standardized workshops, and supporting facilities, with a total construction area of about 120,000 square meters. It is equipped with a provincial-level R&D center, standardized testing center, steam supply center, power supply center, pilot R&D laboratory center, logistics distribution center, and e-commerce center, forming a complete R&D testing operation system and marketing supply system. The company has 16 technical achievements and over 100 food batch numbers under its subsidiaries. It operates 10 major industrial forms with twelve production lines, mainly producing liquid beverages, food, health food, and more than 400 products.

　　The company also has a logistics control center and an e-commerce center, with 15 marketing operation centers nationwide, and offices in Beijing, Xi'an, and Chengdu. It has established a complete information disclosure system and online marketing platform. The main business is conducted at the Sanmenxia headquarters.

　　The company manages all qualifications and inspection reports from raw material planting and processing to logistics trade, verifying and obtaining them, and conducts layered testing of physical, chemical, and microbiological indicators of semi-finished and finished products, ensuring every link is meticulous and rigorous, guaranteeing all products are safe and reliable. The group is a labor-intensive enterprise group focusing on planting and production processing, with a significant advantage in employment absorption: firstly, in the agricultural planting and forestry development sectors, we spend tens of millions of yuan annually on labor costs to benefit local people, directly arranging seasonal employment for 6,000 farmers and converting over a thousand farmers into industrial workers; secondly, our secondary industrial processing sector employs over a thousand social workers; thirdly, there are currently more than 300 full-time marketing personnel for the group's products. In total, nearly ten thousand people directly or indirectly benefit from employment and labor provided by the group. With further development and expansion of the agricultural planting and industrial processing sectors, more farming families will benefit from our employment system. The group aims to become an excellent agricultural industrialization group focusing on the "three-industry integration" of agriculture and a green health industry group characterized by ecological organic features based on large-scale agriculture.

　　We strengthen industrial development, planning, innovation, and expansion, promoting our brand. After repeated market research and theoretical study, based on our company's actual situation, we believe the way forward is to vigorously implement a market-driven strategy, determined to deeply pursue market-oriented development. The key is to innovate marketing models, using new retail and social e-commerce models to develop markets and market products. We closely embrace the internet, leveraging the advantages of low online costs, high efficiency, and saving time and space, quickly launching a mobile app so our customers can buy genuine company products without leaving home, achieving nationwide buying and selling, and building a strong digital marketing team. This year, online sales are expected to exceed 1 billion yuan, with 450 million yuan already completed in the first half of the year. By combining online and offline efforts, we aim to achieve a total new retail and traditional offline business marketing revenue exceeding 1.2 billion yuan this year. We have introduced international brand operation and planning talents to position and enhance Lerenjia's brand strength from the customer's perspective, making our brand our pride.

　　We are full of confidence to develop the enterprise strongly and well. With the support of a broad customer base and through our own unremitting efforts, actively exploring new marketing innovation ideas, we have gradually developed and gained good market recognition, creating excellent social and economic benefits! President Xi said, "Pies won't fall from the sky; only hard work can make dreams come true." If yesterday we were working hard to enter the fast track of rapid development, in the future, we will be even more passionate, united, and striving to achieve the company's brilliant takeoff! We will do our modest part to realize the great rejuvenation of the Chinese nation and the Chinese Dream!