On April 26, 2021, Meituan issued an announcement regarding its receipt of a notice of investigation (the " Anti-Monopoly Investigation") from the State Administration for Market Regulation of the People's Republic of China (the "SAMR"). On October 8, 2021, the SAMR issued an Administrative Penalty Decision (the "Decision") of the Anti-Monopoly Investigation into the Company. In the Decision, the SAMR found that the Company had violated Article 17(4) of the Anti-Monopoly Law of the People's Republic of China (the "Anti-Monopoly Law"). Article 17(4) of the Anti-Monopoly Law stipulates that a business operator with a dominant market position is prohibited from restricting business counterparties through exclusive arrangements without justifiable causes. Pursuant to Articles 47 and 49 of the Anti-Monopoly Law and Articles 5 and 32 of the Law of the People's Republic of China on Administrative Penalties, the SAMR ordered the Company to cease unlawful acts and imposed on the Company a fine of RMB3.442 billion, or 3% of the Company's revenue generated in the People's Republic of China in 2020, after considering the factors such as the Company's voluntary admission of its "pick-one-from-two" conduct before the investigation, voluntary production of evidence during the investigation, suspension of the "pick-one-from-two" conduct, implementation of comprehensive self-investigation and rectification, and proactive return of the exclusive partnership deposits that were previously collected. The SAMR also issued an administrative guidance (the "Guidance"), instructing the Company to rectify its competing acts in all aspects, protect the lawful rights and interests of all participants on the platform, enhance its internal controls and compliance, and uphold a positive competitive ecosystem of the platform. The Guidance requires the Company to submit a self-assessment and compliance report to the SAMR for three consecutive years. The Company accepts this with sincerity and is determined to ensure compliance. The Company will implement a comprehensive and in-depth self-rectification program according to the Decision and the Guidance, and prohibit the "pick-one-from-two" conduct. The Company will also take this lesson to heart, operate in accordance with law, consciously maintain orderly fair competition, earnestly fulfill its responsibility to society, better obey and serve the socioeconomic development, and contribute more towards the high-quality development of the national economics.