We, through our operating subsidiaries, are engaged in the trading of commodities and supply chain consulting services in Mainland China. Our commodities trading business mainly involves purchasing chemical products, non-ferrous metal products, and agricultural products from upstream suppliers and selling such commodities to downstream customers. Our supply chain consulting service business mainly refers to the professional consultation we provide to our customers on bulk trading based on our customer resources data, industry experience, and professional knowledge in bulk trading to fit the needs of our customers.

Our first operating subsidiary in Mainland China, SH Zhang Yang, was founded in 2021. Shortly afterwards, we acquired Zhejiang Xinyu, which was founded in 2020, at the end of 2021. Since 2021, the company has gradually established a stable and mature risk control system which has been accepted by upstream and downstream enterprises. 

Our commodities trading business mainly involves purchasing ethylene glycol, pure terephthalic acid (“PTA”), rebar, corn, ethylene vinyl acetate (“EVA”), and other products from upstream suppliers in bulk, then selling such commodities to our downstream customers.

We do not provide transportation and warehousing services. We engage third-party warehouses to store the products we purchase from our suppliers. Generally, our suppliers transport the products to our designated third-party warehouses with which we have agreements, and our customers transport the products from the warehouses on their own.

We operate principally with short-term transactions on fixed pricing terms. Our customers may be required to pay 100% of the total contract value upon the date of order confirmation, or may be required to pay a certain amount of advance payment of an entire payment (which is determined by mutual agreement and varies from case to case) within a stipulated period from the date of order confirmation and with the balance amount payable upon receipt of the products, or may be required to make the entire payment upon receipt of the products. We have not entered into long-term contracts with any of our customers and suppliers.

Yin Zhang has served as the chairman of the board of directors since May 6, 2024, and a director since Jan. 18, 2024. Mr. Zhang has also served as the Chairman of Zhejiang Xinyu since April 2020 and chairman of SH Zhang Yang since March 2021.