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Private &Confidential

UCO —— Absolute Leader in Beauty Ecommerce

UCOLeader in Beauty

Ecommerce

Full Channels

Ecommerce Partner

New Retail –extending offline

resources

Social and Content Marketing/Brand

Incubation

• 20+ Tier 1 Tmall stores• 40+ Brands on all channels• 66%Tmall, 20%VIP, 14% JD, RED,

wechat…• RMB3.5B+ (USD500M+)GMV

• Q3 Testing and start 500 CS shops by end 2018

• Covering over 10,000 CS shops in 2 years

• Brand Incubation via KOL and social marketing

• Social and Content marketing service partner that combines Ecommerce conversion and social index

Private &Confidential

2017 China Beauty Sales by Channel

67 13%

98 19%

150 29%

160 31%

35 6%

10 2%

Department Store

Key Account

CS shop

EC

Direct Sales

Other

Unit : 10 billion RMB

Data Resource : Euromoniter ;

CITIC Securities ; China Tax

China 2017 Beauty EC- B2C Sales by Platform

Tmall

52 Billion 55%

JD.com

15%

VIP.com

15%

Jumei.com;

Kaola.com ;RED

& others

15%

Tmall JD.com VIP.com Jumei.com; Kaola.com ;RED & others

Private &Confidential

China Beauty Sales by Channel Evolution from 2002-2016

• From 2009 to 2016, the market share of e-commerce channels has increased to 20.6% in beauty industry,• And in the long term, the proportion of e-commerce channels is expected to be 30%~35%.

Channel share of Chinese marketing

store supermarket EC Direct sales

Mass Beauty vs Premium Beauty Growth Rate and %

Skincare

Cosmetics

Perfume

Home Fregrance

2017 Growth Rate by Category

Skincare : 20%- 25%Cosmetics : 45-50%Perfume : 30-35%

Unit : 100 million

China Beauty Sales & Growth Rateby Category 2017

Main B2C Platforms Positioning

Higher Tier

cities(1st ~ 2nd)

Lower Tier

cities(3rd-4th)

TMALL

VIP

REDNETEASE KAOLA

Marketing and BrandingJD

Geographic distribution

Sales Driven

* Size of each platform represents GMV and market size

Premium Brands on Main B2C Platforms

2013 2014 2015 20162012

(test)

2017

• All the major beauty groups already on Tmall except Chanel• VIP and JD is 2-3 years behind Tmall when it comes to Premium brands but believe would catch up in the coming 18 months

2018

12

TOP Brands on Tmall- changes in last 4 years- Consumption UpgradeConsumer Mindset of Brand Positioning, Big Opportunity and Threats for Existing and New Brands

• Japanese Brands- coming back?• Western Brands- where are the

opportunities and threats?• Local Brand- Growth and Decline?• Korean Brand

• Fashion or Sustainable?• THAAD impact?

• Content and Social Brand (��, KOL…)- New Type of Brands?

• Consumption Upgrade• Brands with character• More High end brands in top 10 list

• Makeup growth, particularly premium make up- what is the category opportunities?

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Consumption Upgrading

2017 Nov 11- RMB1BOrders No. 2.5M

DSR of 20 shops>35%above average beauty shops

1000+ staff

>80% yearly sales growth

10 shops>100M; 6 shops>50MEstimated 2 shops > 1 billion 2018

Wholly-owned subsidiary of listed company

10 warehouse 50000 sqm2

ISO27001 certification (an Internet Security certificate)

GMV>3.5 BILLION (550M USD)

IN 2017

UCO — Quick Numbers

Private &Confidential

UCO is ABSOLUTE LEADERas Service Partner For PremiumBeauty Brands

We Operate 10 out of top 17 Premium Brands who have official presence in the key B2C platforms

Premium Brand Operation

Private &Confidential

EXPERIENCED TEAM FROMINDUSTRY LEADING COMPANIES

Content & Social - Sunnie Shao

B2B Distribution - Iris Chien

Tmall Operation - Anne Guo

Customer Service - Tina Ni

Supply Chain & IT - Long Wong

Business Development – Nancy Xue

Private &Confidential

UCO �������� ���������

Private &Confidential

UCO — ����

Private &Confidential

New Retail Extending

Offline Resources

New Retail — We Cover Total Online & Offline

ProvincesDistributors

DepartmentStores

Watson’s Stores…

CS Shops

Counties

Offline POS

Supplier Chain Integration

Data integration

User Experience offline

Enhancing Offline customer contact and sales

Private &Confidential

Private &Confidential

Social and Content Marketing

Brand Incubation

Private &Confidential

Private &Confidential

Private &Confidential

E-Commerce & Marketing Showcases