About Yihai

R & D team

production base

Logistics base

We engage third-party logistics service providers to collect our products from warehouses at our production facilities in Zhengzhou and Chengdu and deliver them to our customers. As of 31 December 2015, we had four logistics service providers. Our transportation arrangements with third-party logistics service providers enable us to maintain a low level of capital investment in developing and maintaining an in-house logistics system.

We select logistics service providers based on their reputation, scale of operation, track record and price. We usually enter into agreements with our logistics service providers on a semiannual basis. We use a standardized logistics agreement for our logistics service providers. Our logistics service providers bear the risks associated with the delivery of our products, are liable for product contamination occuring during the transportation process and are required to purchase necessary insurance. We assess our logistics service providers based on delivery performance, transportation capability and overall service quality. During the Track Record Period and up to the Latest Practicable Date, we had not experienced any material disruption in the delivery of our products or suffered any loss due to late delivery or mishandling of products by our logistics service providers.



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