August, 31 2016

Introduction ofJK International

Ver. 201609

AboutJK International

BizPerformance

Vision &Strategy

Index

01. Company Introduction

JK International

About JK International

The largest cosmetic export company to China

Currently, we are exporting morethan 20 containers per week and

About 150 billion won per year Through the distribution subsidiary that has know-how based on 27years trading experience with China.

Own the exclusive distribution rights regards for the Korean leading brands

JK international has the exclusivedistribution and sales rights inChina for 50 different leading Korean brands such as cosmetics, foods, clothes and households goods. We export the high qualityKorean products to China faster and safer than anyone else.

Entrances and expansions in New distribution channels

JK international is focusing on the product planning and the OBM development. Furthermore, by signing the joint cooperate relationship with Korean Outlet Company and Chinese Duty Free Company, we launch and manage The franchise outlets and Duty Free shops in near future. This isexpected to diversify the distributing channels.

02. Summary Sheet of Company

JK International

About JK InternationalJK international is specialized in exports and distribution of cosmetics

And food to the international markets for last 20 years.

Establishment

1988, JK international was founded

2013 , JK international was converted to a corporation

Partnership

Orange factory, EQUIS &ZAROO CO., LTD, CDF(China Duty Free Group), Seonse China

Major Clients

China: Jumei, Roichen, Tmall and etc. Korea: Mediheal, Leaders, Tonymoly, Holika, Rainbow and etc.

Business Area

Cosmetics, foods, clothes, household goods, brand development, distribution and franchise.

03. Mission

Convenience(Households &Baby goods)

Health(Food &

Beverage)

JK International

Beauty(Cosmetic & Fashion)

About JK InternationalWe push the company’s mission even further

which is delivering the happiness to the customers.

04 . Company History

Beginning Stage

Growing Stage

Declaring reformation

About JK International

We never stop growing if there are markets and customers available.

1988. Founded JK international (focused on trading foods)

2013 conversion to a corporation2014 made a supplying contract

with the number one cosmetic internet shopping mall, Jumei.

2014 The new CEO was appointed2015 ‘50 Million Dollars the tower

of exports’ awarded on Honor Trade Day

2016 Build the distribution center in Weihai China

2016 Start to build JK NamdongCenter(company’s office buildingand cosmetic cluster)

2016 Enter into the cosmetic, foods & convenience products markets through the partnership with Orange factory (opened 30 stores)

2017 Plan to develop and launch the own brand

2017 Manage the Domestic Duty Free shopsand sell the own brands with joint partner, CDF group

2020 Expect to open 10,000 franchised stores

05. OrganizationAbout JK International

CEO

Distribution Division

Management Division

CosmeticDep.

Food Dep.

Export Dep.

Distribution Dep.

Financial dep.

Account Dep.

Marketing Division

Legal Team(Law, Finance, M&A)

Sales and purchasing Division

China distributionT/F

4 division and 6 departments with passionate employees will support the clients’ success

06. Location

[Head Office] [ China T/F Office& Show Room]

[Distribution Center]

Wolgot Dong 325-4, Si Heung, Kyung Gi Do

About JK International

[Outlet First Village]

DunpoMyun Haewuian Gill 17, Asan, Chung Chung Nam Do

Non Hyun Ro 26-15 Wistco Plaza 3rd and 5th floor ,NamdongGu, Incheon

Gui Dong 25-16 Orange Tower 4th and 5th floor, GwangJinGu, Seoul

AboutJK International

BizPerformance

Vision &Strategy

Biz Performance

01. Business Model

F&BCosmetic FashionHouseholdGoods

JK International

On – LineShopping Mall

Off – Line(franchise)

JK international has the

exclusive export rights of

Korea mega hit cosmetic

brands and famous snacks

and beverages brands.

We will expand the exports

furthermore through not only

depending on current online

shopping malls but also

developing aggressively the

off-line franchised stores.

Biz Performance

02. Business StructureBiz Performance

• Developing the brand/License, Plan and produce New Korean wave products

• Trading – Imports and Exports,

• Transport logistics

• Cosmetics,• clothes, • foods, • babies’ goods• households goods

Product Distribution

MarketingPlace

My company is specialized in brand developing, logistics and distribution.

• Online shopping mall,

• Franchised stores

(Orange Factory)

• Duty –Free (CDF-China Duty

Free Mall)

JK International is

To export and sell the cosmetics, clothes, food and beverage andhousehold goods, we

signed a strategic alliance with the best companies in each industry and created Task Force Team.

We will grow continuouslyby developing own brands and increasing the numberof franchised stores.

JK International Orange Factory

Stallion C&M

U-jin

First Village

•Fashion• Cosmetic• Household goods

Food & Beverage

03, AllianceBiz Performance

JK Internationaltotal management

Currently, Chinese internet shopping malls are growing dramatically. JK international is supplying the Korean Wave products to the major online shopping malls. Especially, we are focusing on cosmetic exports, and the total export amounts are contributing a big part on K-Beauty industry.

04. China shopping mall ClientBiz Performance

JK international is the Number 1 directly purchasing Korean products vendor among Jumei vendors which is the largest online site in China.

2015 Total sales was 1.9trillion won

Total members are 50 million people

Number 1 online cosmetic sales site in China

2014 signed the contract to supply Cosmetics

2015 supplied 83 billion won worth of cosmetics

Number 1 Korean cosmetic supplying vendor (25%)

Biz Performance 05. China On- Line shopping mall JUMEI

JK International JUMEI

JK International은중국에서 가장 큰 화장품 온라인 사이트인

JUMEI 한국 직구 사이트 No. 1 벤더사입니다.

회원 가입자수5천만명

중국 내 온라인화장품 판매 1위

2014년 화장품공급 계약체결

2015년 화장품830억원 공급

한국 화장품공급 률 1위 (25%)

Biz Performance

2,500 billion won

830 billion won

200 billion won

06. JUMEI supply turnover

2014(achieved)

2015(achieved)

2016(expected)

2017(target)

1,000 billion won

awarded the tower of exports in 50 million dollars, rewarded from President Park Geunhye

07. Handling Brand : CosmeticBiz Performance

Cosmetics: Own the exclusive authorization and distribution rights of 74 Korean cosmetic brands

Biz PerformanceClothes: Own the exclusive distribution rights for

KARRA, TRAD CLUB and etc.

08. Handling Brand : Clothes

Biz PerformanceBaby products: own the exclusive authorization and sales distribution of 40 different brands include agaworld

09. Handling Brand : Baby products

Biz Performance

Households Goods: Own the authorization of many different brands include CUCHEN

10. Handling Brand : Households goods

Biz PerformanceFoods: Contracted with the 4major Korean snack companies

and health and supplement brands

11. Handling Brand : Foods

AboutJK International

BizPerformance

Vision &Strategy

Vision & Strategy

01. The company’s growth planVision & Strategy

•Step 1. : Logistics and distribution of cosmetics

Step 2. Developing the own brands and Franchising Business

•Exports through the online in China

•Strengthen the sales with the domestic cosmetic suppliers

• Diversify the exporting products into fashion and foods

• Develop the own brand such as OBM• Increase the number of franchised branches. • Jointly managed Duty Free with CDF Group and sell the own brand products

Step 3. Diversifying the overseas markets and strengthening the marketing capabilities

• Enhancing the Franchise Business• Strengthen the sales competency for

own brand• Expanding the international marketssuch as South East Asia and India

Brand development, diversification, diversification of exportingcompanies through growth of sales channel

02. Franchise biz strategyVision & Strategy

LowPrice

One StopShopping

Management2020yr

10,000storeOpen

(Korean cosmetics + foods+ clothing stores: over 1000m )2

Franchised Store in Gui Dong (Exhibition Room)

Build the distribution channel to lead K-beauty, K-food, and K-fashion in abroad.

Orange Factory in Wangjing, china

OutletFirst Village

03. Duty free mall managementVision & StrategyManage the Tax refund shop and being part of the shop to sell

own brand by having a partnership with CDF Group

2016~2017 Plan to build and manage: Tax refund shop in Gimpo Airport: Tax refund shop in First Village: Tax refund shop in JK Namdong

Center

China Duty Free Group•Manage the 200 Duty Free

shops in China• Have 300 luxury brands• Manage the shops in

Hong Kong and Macao

Hainan Duty Free Sanya Duty Free Shops Overview

04. Domestic cosmetics erected clustersVision & Strategy

Expect to leadthe growth developing cosmetic industrythrough the cosmetic cluster business

•Start to build Namdong center composing complex area with the resting zone and cosmetic cluster in October

Korea industrial complex Corp. for Incheon has announcedthat they appointed JK international and Rainbow as agencies to build Namdong Center on 15th.These companies will invest total 69.1 billion won to the 9290m2 sizedlands until the end of next year and the buildingwill be the total floor area about 34367m2. The 25742m2 of the total area will be used as a cosmetic cluster. The cosmetic factories, offices and labs are coming in this complex. . According to Korea Industrial complex Corp. for Incheon, “If Namdong Center is developed for the supporting business and education as a convergence place, and then it is expected to strengthen the strategic business since the cosmetic industry is able to integrate and link with supports from various industries.

05. Global business objectiveVision & Strategy

Post 1

Post 3

Post 2

~ 2016 ~ 2021 ~ 20261

(The targeted share pies for Sales correlation with Regions)

◄Post 1

◄Post 2

◄Post 3

From the current Chinese dependent exports model, JK international propels the expansions of the exports to India, South East Asia and America (Hiring local experts and progressing the contracts with local marketing companies)

06. Sales objectiveVision & Strategy

2014 2015 2016 2017

We will devoted to the 2017 target to achieve sales of 250 billion won

Total ass

et

Total de

bt

Total ca

pital

Capital Sales Profits Auditor’

s opinio

n

External

audit

Yr3 14,789 10,659 4,130 600 83,410 3,160

Yr2 5,933 5,450 483 50 12801 350

Yr1 216 63 153 50 2517 102

•From Electronic disclosure for JK International (unit: million won)

•We do not receive external audit, so• auditor’s opinion is not announced. •Yr3 means 2015, Yr2 is 2014 and Yr1 is 2013•My company has increased the sales from 24 billion won in 2013 to 830 billion won in 2015.

•This dramatic increase is based on the result as the leading Korean Cosmetic Sales company in China through internet. In other words, not only cosmetics but also other products are able to sell through the online co mpany in China, we expect further expansions.

For your success,

JK International

will be together.

Thank You