As a distinctive eco-friendly enterprise group, our subsidiaries in China have deeply rooted themselves in the agarwood industry, focusing on selling high-quality agarwood products across six core product lines: Jewelry & Accessories, Health Foods & Beverages, Personal Care & Beauty Products, Agarwood Sleep Enhancement Products, Home & Lifestyle Goods, and Cultural & Handicrafts. We prioritize quality and innovation, effectively integrating modern technology with the cultural heritage of agarwood agriculture to drive sustainable industry growth. This approach enriches consumers' lifestyles while fostering cultural innovation within the industry.
Our core business is driven by Guangzhou Qiaru, which provides the foundation for the entire group's operations and development. Leveraging a vertically integrated supply chain, we collaborate with professional and reliable third-party suppliers to source premium agarwood products, which are then sold to distributors and end-users. This enables us to maintain consistent product quality standards while focusing on market expansion and growing our range of agarwood-based daily necessities. Our partnerships with experienced suppliers ensure operational efficiency, thereby enhancing cost control, business agility, and capital efficiency across the entire supply chain. This model allows us to concentrate on sales, marketing, and expanding product supply within the agarwood industry. Additionally, our subsidiaries in Huizhou, Xuzhou, Foshan, and Guangzhou further support this business, strengthening our growth and operational capabilities.
Our business strategy revolves around an asset-light model, aiming to maximize flexibility, minimize operational costs, and accelerate growth. By focusing on selling agarwood products (rather than in-house production), we avoid capital-intensive investments in production facilities and resources. Instead, we outsource storage, packaging, and transportation services to third-party providers through a fee-based model to optimize supply chain efficiency. This approach allows us to avoid the complexities of owning or managing inventory storage facilities while maintaining full control over inventory flow and logistics operations. By collaborating with multiple third-party warehouses for storage and packaging services, and specialized logistics providers for transportation, we can scale efficiently, respond quickly to market demands, and keep operational costs low.
To accelerate market expansion, we partner with authorized dealers and distributors nationwide through sales agency agreements. This approach enables us to effectively promote and distribute our products across multiple regions without maintaining our own inventory, further reinforcing our asset-light model. By expanding our distribution network, we aim to enhance brand awareness, increase market share, and strengthen our competitive position in the agarwood market. This scalable model supports sustainable growth while upholding our commitment to preserving cultural heritage and embracing modern innovation.