We were founded in 2009 and are principally engaged in the sourcing, marketing, selling and distribution of a variety of beauty device products and fitness and health care products, as well as other products, which are mainly for home use, under various brands through our sales and distribution network in Hong Kong and the People’s Republic of China (PRC). Our revenue is principally derived from the sales of (i) beauty device product, (ii) fitness and health care product and (iii) other products. Our beauty device product segment mainly consists of beauty devices for hair removal, wrinkle reduction, skin lifting, anti-acne treatment, rejuvenation of the skin’s appearance and body slimming and other health accessories. Our fitness and health care product segment mainly consists of treadmills, exercise bikes, elliptical trainers, steppers and other fitness accessories, such as trampolines, yoga gears, dumbbells, boxing gears, heart rate monitors and diagnostic scales. Other products include traveler’s items, anti-pollution masks, sandals and electrical heated blankets.
We estimate that we will receive net proceeds from this offering of approximately US$ million, or approximately US$ million if the underwriter exercises its over-allotment option in full, after deducting underwriting discounts and the estimated offering expenses payable by us. We plan to use the net proceeds of this offering primarily for general corporate purposes. The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management, however, will have significant flexibility and discretion to apply the net proceeds of this offering. If an unforeseen event occurs or business conditions change, we may use the proceeds of this offering differently than as described in this prospectus. The table below shows how we intend to use the proceeds from offering and assumes the underwriter’s over-allotment has not been exercised. Estimated Amount of Net Description of Use Proceeds Percentage Further development of our market appearance, brand recognition and image in the PRC and Hong Kong40.0 % Enhancing marketing and promotional activities25.0 % General working capital 22.5 % Research and development team and creation of beauty deviceswith our own brands 12.5 % Total 100 %
We face keen competition with respect to pricing, product quality and brand identification. Some of our competitors may have greater financial, technological and informational resources, which may enable them to provide products superior to our products, or to adapt more quickly than we do to evolving industry trends and consumer preferences. Conversely, some of the our competitors may, out of various commercial considerations, adopt low-margin sales strategies and compete against us based on lower prices to increase their market share.