As a distinctive eco-friendly enterprise group, our subsidiary in China deeply engages in the agarwood industry, focusing on selling high-quality agarwood products across six product lines: Jewelry & Accessories, Health Foods & Beverages, Personal Care & Beauty Products, Agarwood Sleep-Aid Products, Home & Living Products, 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 operation and development of our entire group. Leveraging a vertically integrated supply chain, we collaborate with professional and reliable third-party suppliers to source high-quality agarwood products and sell them to distributors and end-users. This enables us to maintain consistent product quality standards while focusing on market expansion and scaling up our agarwood-based daily necessities. Our cooperation with experienced suppliers ensures 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 offerings in the agarwood industry. Additionally, our subsidiaries in Huizhou, Xuzhou, Foshan, and Guangzhou in China 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 eliminate the need for capital-intensive investments in production facilities and resources. Instead, we outsource storage, packaging, and transportation services to third-party service 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. Collaborating with multiple third-party warehouses for storage and packaging services, and specialized logistics providers for transportation, enables us to scale efficiently, respond quickly to market demands, and maintain low operational costs.

To accelerate our market expansion, we cooperate 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 the 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.

Given the profound cultural ties and concentrated production base in the Asia-Pacific region, regional growth models consistently show that the Asia-Pacific maintains a dominant market position. Meanwhile, the adoption of agarwood in North America and Europe is increasing, driven by luxury consumption trends, greater awareness of natural and sustainable ingredients, and expanding health applications supported by online retail and professional distribution channels.