shenmei group

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SHENMEIGROUP PROFILE 2022.01.18

CONTENT 01.Aboutus 1-1.Intro. 1-2.Business 13.History 02.Groupstructure 21.Subsidiaries 22.Headquarter 03.Business 31.SHENMEIDistributionBusiness(10,20,30시대) 32.SHENMEIBrandBusiness 33.SHENMEICommerceBusiness 34.SHENMEIPlatformBusiness 04.MainPower 41.MainPower 42.SuccessStory(1) 43.SuccessStory(2) 05.AffiliatedCompanyInstruction

1.ABOUTUS

1-1.Introdution GLOBALCOMMERCEGROUP,SHENMEI SHENMEIGroupwasfoundedin2010IncludingChinaandSoutheastAsia,wehavebranchofficesin8regionsaroundtheworld Currently,SHENMEIDistribution,SHENMEILogistics,SHENMEIMCN,SHENMEImanufacturingproductsandpownbrands,SHENMEIInvestment,etc. Expandingandgrowingitsbusinessscopeintovariousfields.Notwiththetraditionaldistributionmethod,butwithbusinessstrategiesthatkeeppacewiththechangingtrends. Weprovidethehighestqualityproductstoconsumersaroundtheworld.

1-2.Business BrandBusiness Weservevariousbrand products,includingBeauty, HealthandFoodandliving products. CommerceBusiness Wearedevelopingand operatingnewcommerce platformwiththebusiness changingtrend. GlobalBusiness Incooperationwithoverseas affiliatesandpartnersinAsia, Americaetc., Wearerunningdistribution businessinoverseasmarkets. DISTRIBUTION Koreanbrand Overseasallchannel distribution, exclusivesales business MANUFACTURING Ownbrand Manufacturingand brandoperating LOGISTICS B2B+B2C globallogisticssystem COMMERCE LiveCommerceand overseasplatform development.Overseas influencernetworking OWNPALTFORM OperationofAZIPMall Globalmarketexpand INVESTMENT InvestmentProject Management/ OverseasInvestment

1-3.History SHENMEGROUP Fromtraditionaldistribution>Globalcommercegroupchallenge 2013 2.BrandCirculationBiz branddistributionbusiness 2015 3.ManufacturingBiz manufacturingbusiness 2019 4.CommerceBiz SHENMEcommercebusiness 2009 1.CirculationBiz traditionaldistributionbusiness 5.GlobalPlatform SHENMEIplatformbusiness 2021

2.GROUPSTRUCTURE

SHENMEIGROUP KOREA CHINA HONGKONG VIETNAM JIWOOTra ding CNCOCo., Ltd SHENME COSMETIC SCo.,Ltd SHENMEIS hanghai SHENMEIH angzhou SHENMEIG uangzhou SHENMEIHong kong CNCNOVietnam B2BDistribut ion, logistics Ownbrand, platformoper ation Distribution/ Commerce China Manufacturing Distribution, logistics Marketing Distribution, logistics Distribution, sales •OperationofoverseasaffiliatesindifferentregionsuchasKorea,China,HongKong,andVietnam. Throughconstantcollaboration,weprogressmanufacturing/production/distribution/logistics/marketing/investmentbusiness. Wehavesuccessfullyhelpmanysmallandmedium-sizedKoreanbrandsexpandtooverseas. 2-1.Subsidiaries

2-2.Headquarter •SHENMEIHangzhouCompanywasfoundedin2018inHangzhou,China,isparentcompanyofSHENMEIGroup. •SHENMEIisbeingoperatedthroughatotalof6branchesincluding3ShanghaibranchesinHangzhou,Dongguanbranch,andHongKongbranch. Ownbrandmanufacturing/marketing LaunchedMadeinChinabrandKOUY/DR.DH(in2021) LaunchingOKUP,OLIPetc.8brandsin2022 SHENMEISupplyChain Management Internationaldistribution business On/offlinechanneldistribution SHENMEIHangzhoucompany Shanghaibranch Dongguanbranch Hongkongbranch Hangzhoubranch

2-2.Headquarter offline channel business WuhanLishengyan Company •HangzhouSHENMEICo.,Ltd.isoperatingsub-divisionssuchasdistribution/agent operation/on/offlinechannel/commercebusinessthroughabout10partnercompanies. Professional distribution business WuhanYiyan compnay Hangzhou meimucompany onlinechannel business HangzhouSHENMEI1st Branch HangzhouSHENMEI2nd Branch HangzhouSHENMEI3rd Branch Operation Business HangzhouPaisi Company HangzhouYouyishuoyi Company commerce business HangzhouSHENMEIMedia Company HangzhouSHENMEIMedia Company

3.BUSINESS

3-1.SHENMEIDistribution Koreabrandglobaldistributionandlogistics business nCompetence:From2009to2022,14yearsofexperienceinChinadistribution, occupyingabout130,000online/offlinedistributionchannelsinChina,andable tonetworkwith7000partners Distribution Experience 14years+ Channel 13W+ Partner 7000+ Brand 200+

3-1.SHENMEIDistribution1.0 nDistributiontype:DistributionoffirstgenerationKbeautybrands/DutyFreeshopsfirst timedistribution nDistribution:With5years,1000+Koreanbrands,10w+KoreanSKUdistribution 100% 전통다브랜드유통 2009~2013,Distributedvariousfirst-generationK-beautybrands *Distribution1.0Features:Brand>Agent>XUnclear distributionchannel Traditionalbrandsdistribution

3-1.SHENMEIDistribution 2013~,ChineseAffiliateLayout >FormationofexclusivebrandmanagementsystemforSHENMEI2.0 Globaldistribution/logisticsbusiness operationHongKonglocaldistribution operation >HongKongSHENMEI HKZHIYOU Export/ImportBusinessroleinChina CScenteroperation,marketingservicesupport >GuangzhouSHENME Guangzhou Weilansong Brandmanagementoperation(marketing) Chinesemanufacturing/exportbusiness >ShanghaiSHENMEI Shanghai CNCO Brandmanagementoperation(sales) Enteredallonline/offlinechannelsinChina Hangzhou SHENMEI 2014.04 2018.05 2016.04 2018.10

3-1.SHENMEIDistribution2.0 2013-2019,Exclusivebrandmaindistribution nDistributiontype:Exclusivebranddistribution80%,traditionaldistribution20% nAttheendof2014,startedPapaRecipeexclusiveChinesesalesbusiness,andsecuredtheentire distributionchannelintheSHENMEIChinesemarketthroughPapa’smulti-yearoperation nAttheendof2019,StartedRoundLab’sexclusivedistributorbusinessinChina •15,000+channelsexpansionon/offlinewithin2years •Chinaon/offline13w+distributionchannelentry •“BombeeMask”anaccumulatedsalesof2.1billionunitsinChina •“EggplantMudPack”anaccumuatedsalesof60millionunitsinChina 80% exclusive branddistribution Traditional distribution 20%

3-1.SHENMEIDistribution 2019~,AffiliatesupgradeforSHENMEIDistributionof3.0generation 2016~2021년VIVLAS>CNCO Developmenttechnologyandtrainingof100experts Launchof30+ownbrandsin2021 AZIPMALLglobalplatformoperation CNCOkorea 2014~2021TraditionalDistribution>GlobalCommerce Overallivecommerce Myeongdonglivecommercecenter Overseastrafficnurturinganddrivingtrafficsales SHENMEI COSMETIC 2013~2021 Globallogisticsdelivery systemoperation B2BLogistics+Overseas DirectPurchase+Supply ChainQualityManagement JIWOOTRADE IncheonLogisticsCenter

3-1.SHENMEIDistribution3.0 2019~2021,OwnBrandDistribution nDistributiontype:exclusivebranddistribution20%,ownbranddistribution80% nInnovation:1)ReinnovationofSHENMEIdistributionformataccordingtoecommercemarkettrend, andstartoflivecommercebusiness 2)PossessesSHENMEIuniquetrafficnurturingandsaleschannelsonoverseasplatforms 80% Ownbranddistribution Exclusivebrand distribution 20% Dtrafficnurturing rivetrafficsales GGlobalPlatform1 lobalPlatform2 ... ...

3-2.SHENMEIBrandBusiness Brandself-manufacturingandproductionoperation nStartingwiththefirstbrand-VIVLASin2016,30+ownmanufacturedbrands suchascosmetics,health&food,andothersbrandwillbelaunchedin2022. 6years+ Brand development experience 100+ Koreaexperts 30+ 2022lauchbrands 7 countries+ Overseas expansion country 1000+ On/offlinechannel 达肤研

3-3.SHENMEICommerceBusiness nNurturingmaximizationofSHENMEIprivatetrafficinoverseasmarketsinlinewiththeflowoflivecommerce nNurturing1millionfollowerscorporateaccountsonoverseasplatforms nProspectstogrowintoatop-qualityKoreanproductsupplychaincompanyforKoreanIPinfluencerin2022 nIn2022,ourbrandwillexpandto7overseascountries,aimstoexpandtheglobalmarket MaximizeSHENMEI'sprivatetrafficthroughtheoverallcommercebusiness Influencers Brands SHENMEI Platform StronginfluenceinSHENMEI’Soverseas representativeplatform eg:ChineseDouyin,SoutheastAsian Tiktok,etc. Koreanbrandsthatwanttoexpandtooverseas Koreaninfluencer

3-4.SHENMEIPlatformBusiness

LinkedtotheglobalmarketthroughSHENMEI’sownplatform AzipMall nAimtosecurenotonlySHENMEI’suniquetrafficnurturingchannelinoverseasplatforms,but alsosaleschannels nSHENMEI’sownanddistributionbrandsaimtolinkthecustomersintheglobalmarket nIdentifySHENMEI'sowntrafficintheglobalmarketthroughoverseasoperationof SHENMEI'sownplatformAzipMall

WWW.AZIPMALL.COM

4.MAINPOWER

Chinesemarketexpert Stronginfluenceontheplatform Sales&MarketingSynergy throughtheoperationoflocal affiliates,weareabletocatchup andrespondtochangesinthe marketimmediately Highmarketshareinmajorplatformsin China(Rankingdomination,sales) datadrivenstrategy Sales/MarketingSynergy •Basedonourhistoryandexperience,wehaveChinesemarketexpertgroup/Sales& MarketingSynergy/Stronginfluenceintheplatform,contributingtosecuringoverseas marketsforKoreanbrandsandexpandingsales. 4-1.MainPower

§2015PapaRecipeChinaexclusivedistributorcontract §Asof2022,cumulativerecord Numberofonline/offlinestores:Approx.130,000+(offline100,000,online30,000ormore) “Bombeemaskpack”anaccumulatedsalesof2.2billionunitsinChina (No.1overallintheonline/offlineKoreanmaskpackcategoryinChina(2016~2018)/Sales,realtimesearch,etc.) -“EggplantMudPack”anaccumulatedsalesof70millionunitsinChina 20162022ChineseBeautyIndustryAwards 11+ParticipationinChinaCBE, CIIEExpo20172021 Acquiredmanyinfluentiallocalemblems China'spopularecommerce platformrealtimetrading popularityRanking#1 Marketingwith China’smostpopularmodel 4-2.Representativesuccessstory(1)Paparecipe

§In2020,RoundLabexclusivedistributoragreementinChina §2022totalcumulativerecord -Targettoenteronline/offlinestores:about15,000+(offline10,000,online5,000ormore) -“DokdoWaterGelMask”soldout10millionunitswithin1monthoflaunch -“BirchCream”soldoutwhenlivesaleson11.11NationalDay 2021ChinaCBEFair,DokdoTonerAwarded1st placeatMEIYIAwards 4-3.Representativesuccessstory(2)Roundlab

5.SHENMEIAffiliatedCompanyInstruction

5-1.JIWOOTrading •Yearofestablishment:2013 •Mainbusiness:B2Bdistribution,logistics,investment Foundedin2013,JiwooinchargeofB2Bdistributionandlogistics businessintheSHENMEIGroup. CurrentlydistributePapaRecipe,RoundLab,etc. exclusivebrandsandduty-freeshopsinKoreaandChina. Wearealsorunningourownbrandglobaldistributionbusiness. In2022,expandingthedistributionrangetoglobalchannelssuch asSoutheastAsiabeyondtheexistingdistributionchannelsandat thesametime,expandingandoperatingB2Clogisticssuchas consignmentsales,wearestrengtheningourgloballogisticsand deliverysystem.

•Yearofestablishment:2016 •Mainbusiness:Ownbrandmanufacturing/sales CNCOistheonlycompanythatmanufacturingand salesitsownbrandintheSHENMEIgroup. AfterbeingestablishedasVibrasCo.,Ltd.in2016 In2020,thecompanynamewaschangedtoCNCO Co.,Ltd.CurrentlyCNCOareoperatingbeauty, health&food,andlivingwithbrandbusinessand alsooperatingacommerceplatform,Azipnow. Bytheendof2021,weareaimingtolaunchourown 20Koreanbrandsthatmanufacture/selland10 brandsmanufactured/importedinChina. RepresentativebrandsincludevivLas,DEEOMand LIZDA. 5-2.CNCOCorporation

•Yearofestablishment:2014 •Mainbusiness: Distribution/Commerce Foundedin2014,SHENMEICosmeticsCo.,Ltd. fromthetraditionalcosmeticsdistributionbusiness, expandedandoperatedasaglobalcommerce businessrecently. Consultingandmarketingforsmallandmedium sizedKoreanbrands,helpthemexpandto overseasmarkets. Breakthroughthetraditionalsalesmethodand channellimitstodiscoverandgraftnew consumptiontrends. From2020,wearesimultaneouslydeveloping variousbusinessessuchasglobalcommerce business,MCNbusiness,brandconsulting business,andinfluencersupplychainbusiness. 5-3.SHENMEICOSMETICS

•Yearofestablishment:2018 •Mainbusiness:Chinaownbrandmanufacturing Shanghai CNCO Foundedin2018,ShanghaiSHENMEIarefocusingon manufacturing/exportbusinessinChina. Forlocalmanufacturing/productioninChina Includingresearchanddevelopment,production,andoverseas export,wehaveacomprehensivebrandsystem. 2021,launched2brandthatMadeinChinaKOUY,DR.DH, In2022,weplantolaunchabouteightMadeinChinabrands, includingOKUPandO-LIP. 5-4.ShanghaiSHENMEI

•Yearofestablishment:2018 •MainBusiness:Distribution/ Logistics Foundedin2018,HangzhouSHENMEI, asthemaincompanyofSHENMEIGroup, basedonthelast10yearsofexperienceinbrandmanagement andglobalsupplychain. Wehaveonestepbrandmanagementsystemfrombranding marketingsales. CurrentlyinchargeofPapaRecipe,ROUNDLAB, vivLasDEEOM,KOUY,DR.DH,etc. localdistribution/logisticsofthebrandinChina. From2020,operatedby30%ofexclusivebrandsand70%of ownbrands,andaimtooperatewiththegoaloflistingby2024. 5-5.HangzhouSHENMEIHeadoffice

•Yearofestablishment:2016 •MainBusiness:Marketing Foundedin2016,GuangzhouSHENMEI ItislocatedinGuangzhou'slandmarkUniverseTradeCenter. Theoverallmarketingworkofexclusivebrands, ThroughtheoperationofalocalCScenterinChina. Weareinchargeofoverallcustomerservice. InadditiontotheROUNDLAB’slocalmarketingworkin China, wearesupportinganumberofnewdistributorbrandsfor marketingservices. 31 5-6.GuangzhouSHENMEIBranch

•Yearofestablishment:2018 •MainBusiness:International Distribution/Logistics HongKongSHENMEI(formerHongKongWeilansong+HongKongJIWOO) FormerHKWeilansongandformerHKJIWOO,weremergedto HongKongSHENMEITradingCompanyin2021. Operatingexclusivebusiness/ownbranddistributor/logisticswork. Inaddition,operatingthelocaldistributioninHongKong(large cosmeticchainstores,pharmacies,hypermarkets,etc.) Offlinechannels)andlogisticsservicesinChina. 5-7.HKSHENMEIBranch

•EstablishedYear:2020 •Mainbusiness:localdistribution/sales EstablishedinFebruary2020,CNCOVietnamaredoing distribution/salesspecializedinVietnam. Salesofallonline/offlinechannelsinVietnam Throughlocalinfluencermarketingsupport,weareplan tolaunchourownbrands,includingVivLas,DEEOMand TTAT. 5-8.VietnamCNCO

CHINA •DongguanWeilansong •HangzhouShenmei HangzhouShenmei,SHbranch HangzhouShenmei,DGbranch HangzhouShenmei,HZbranch1,2,3 •ShanghaiCNCO KOREA •SHENMEIcosmetics •JIWOOtrading •CNCOCorporation HONGKONG •HangzhouShenmei,HKbranchVIETNAM CNCO SHENMEIGROUPFuture SHENMEIGroup'sNewGeneration:LeaptoGlobalization nItisrapidlygrowingasaglobaldistributionplatformforKorean/overseassmallandmediumsizedbrandsby operatingoverseasaffiliatesineachregionsuchasChinaandSoutheastAsiabeyondKorea,andsimultaneously performingoveralltaskssuchasdistribution,logistics,manufacturing,commerce,andownplatformbusiness throughconstantcollaboration.

SHENMEIOffice(Seoul) MediaWall LLiveStudioOiveStudio ffice Cafeteria Cafeteria MeetingRoom Studio

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