Small Berry, Super BenefitsBuild A Great Future Together

Shaopeng ChenSenior Vice-President, Legend Holdings

Chairman & President, JOYVIO Group

Small Berry, Super Health Benefits01

No.1 among 41 Antioxidant Fruit & Vegetables

- 1998, research from USDA

“Top Ten Healthy Food in the 21st Century”

- 2007, WHO

“Top Ten Nutritious Food”

- 2010, TIME Magazine

China Blueberry Industry has Great Potential02

0

500

1000

1500

2000

2500

3000 2666

778552

323 250 140 134 40 10

Under 5

RMB

5-8 RMB

8-10 RMB

10-15 RMB

15-20 RMB

20-25 RMB

25-30 RMB

Above 30

RMB

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Actual PurchasePerception price

Unit ： g

China per Capita Consumption Lacks Behind

China on High Speed

2005A 2007A 2009A 2011A 2013A 2015E 2018E

0.2 0.4 1.8 4.112.0

32.3

71.4

69%

43%

Blueberry consumption per capita worldwide

Huge Potential in China Blueberry ConsumptionChina blueberry consumer perception price and actual purchase

China blueberry productionUnit : Kiloton

Global Blueberry Industry Grows Fast

Major blueberry production countriesvolume trends from 2010-2012

美国 智利 加拿大 中国 总计0

50100150200250300350400450500

2010

2012

US Chile Canada China Total

9%

17%

108%13%34%

Unit: RMB/125g

Unit : Kiloton

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

24 41 83 118 203 605 1338 24044646

8101

11281

1846220366

Blueberry Planted Area in China （ ha ）

China Blueberry Planted Area Grow Rapidly, and Already Became the No. 2 Grower Globally

03

Data Source： statistics from Jilin Agriculture University

1 50+ blueberry research institutes

3

5

2 700+ blueberry production, processing, and trade enterprises• Rev. > $16m: 20+ enterprises• $1.6m< Rev. < $8m: 200+ enterprises

4

6

20+Major production provinces

Supply• Mar to Oct supply is assured out of the combination of varieties, facilities, and regions

• All year round supply is assured by domestic + importation

Whole chain development

breeding, planting, sorting, packing, processing, cold chain logistics, and sales

Industrial Servicesfrom financial services, bio pesticide, organic fertilizer, agricultural machinery, water-saving irrigation to IOT (internet of things)

Qingdao Blueberry Research Center

First Class Tissue Culturing Center & Nursery Greenhouse

Blueberry Demonstration Orchard & Facility Agriculture

Cold Chain Logistics & Social Media Marketing

China Blueberry Industry Growing Significantly04

3 Development Phases of China Blueberry Industry

05

• Variety introduction and adoption test started by Mr. Hao Rui from the North and Mr. He Shanan from the South

• Continuous study by Jilin Agriculture University ， the Plant Institute of the CAS in Jiangsu, Beihua University, Shandong Institute of Pomology

1Early Introduction（ Early 80s to end of 90s)

• Commercialized production trial by Jie Cheng Co., and Wallen Co. from the North and Zhejiang Berryland Co. from the South

• Scaled breeding, nursery, and promotion by leading corporations & scientific institutes

2Industrial Trial（ 2000 -2008）

• Well recognized by consumers; price premium and good profits start the boom of national blueberry cultivation

• Industrial capital comes into play, e.g. JOYVIO Group, Jiangsu Richard Agriculture

3Fast Growing（ 2009-2013）

Lack of industry know-how, slow or bad ROI

Variety deployment mistakes

Planting techniques is in the middle of the learning curve

Poor industry services, e.g. cold chain infrastructure

Market education far behind, limited sales coverage

Lack of industrial standards, supply & demand information, self-discipline & regulation

12

34

56

Challenges the Industry is Facing…06

New Era for China Blueberry Industry07

New Era （ 2014~ ） Fast Growing（ 2009-2013）

Industrial Trial （ 2000年 -2008年）

Early Introduction（ Early 80s- End 90s）Investment returns to rational

The expansion of the planting area slows down

Old varieties to be replaced by new varieties

Industry gradually matures and specialized

Embrace the Transformation of the Industry

Market Education

Health benefits research

Sales network penetration

Transition of marketing model

Variety Upgrade

Patented Regional best

of the breed Specialized

TechnologyImproveme

nt Fertilizing &

watering + bio-prevention + pruning + cold chain preservation

Facility + machinery + IT

Structure Optimizatio

n

LooseClosed Transaction Relationship Fragmented ->

Consolidated

Form China Blueberry Association, Nurture Sustainable Ecosystem

08

Small Berry, Big VisionTogether We Succeed!