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                                     INDUSTRY OVERVIEW

       The information presented under this section, unless otherwise indicated, is derived from various
 official government publications and other publications and from the market research report prepared
 by Frost & Sullivan, which was commissioned by us. We believe that the information has been derived
 from appropriate sources and we have taken reasonable care in extracting and reproducing the
 information. We have no reason to believe that the information is false or misleading in any material
 respect or that any fact has been omitted that would render the information false or misleading in any
 material respect. The information has not been independently verified by us, the Sponsor or any of our
 or their respective directors, officers or representatives or any other person involved in the
 [REDACTED] nor is any representation given as to its accuracy or completeness. The information and
 statistics contained under this section may not be consistent with other information and statistics
 compiled within or outside of Singapore, Malaysia, the PRC and Hong Kong.

SOURCE OF INFORMATION
      We have commissioned Frost & Sullivan, an independent market research and consulting company,
to conduct an analysis of, and to prepare a report on the beauty and grooming service industries. The
report prepared by Frost & Sullivan for us is referred to in this document as the Frost & Sullivan Report.
A total fee of HK$1.1 million was paid to Frost & Sullivan for the preparation of the report, which we
believe reflects market rates for reports of this type.
     Frost & Sullivan is a global consulting company founded in 1961 in New York and has over 40
global offices with more than 2,000 industry consultants, market research analysts, technology analysts
and economists.
RESEARCH METHODOLOGY
      The Frost & Sullivan Report was undertaken through both primary and secondary research obtained
from various sources using intelligence collection methodologies. Primary research involved discussing
the status of the industry with certain leading industry participants across the industry value chain and
conducting interviews with relevant parties to obtain objective and factual data and prospective
predictions. Secondary research involved reviewing information integration of data and publication from
publicly available sources, including official data and announcements from government agencies,
company reports, independent research reports and data from Frost & Sullivan’s own database.
Basis and assumptions
      In compiling and preparing the Frost & Sullivan Report, Frost & Sullivan has adopted the following
assumptions (i) the social, economic and political environment in Singapore, Malaysia, the PRC and Hong
Kong are likely to remain stable in the forecasted period; and (ii) industry key drivers are likely to drive
the growth of the intimate care and face architecture industries in Singapore, Malaysia, the PRC and Hong
Kong in the forecasted period.
      On these bases, our Directors are satisfied that the forecasts and industry data disclosed under this
section are not misleading. Our Directors confirm that, after making reasonable enquiries, there is no
material adverse change in the market information since the issue date of the abovementioned sources
which may qualify, contradict or have adverse impact on the information under this section.
OVERVIEW OF THE BEAUTY AND GROOMING SERVICES MARKET
Introduction of beauty and grooming services industry
      As a result of the ongoing development of the world’s economy and the rise of consumption level,
people around the world are increasingly paying more attention to their personal image. Development of
the related industries, such as beauty and grooming services are accelerated by the growing demand for
personal grooming management. Beauty and grooming services, usually refers to companies that provide
customers with various beauty treatments and grooming services at their outlet. Beauty and grooming
services can be subdivided into spa and massage, skin care services, slimming services, nail saloon, tattoo,
intimate care, tanning, face architecture etc. Amongst them, spa and massage accounts for the largest share

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                                                                            INDUSTRY OVERVIEW

at 33.4% in 2019, followed by skin care services, at 31.3% in 2019. The global market for beauty and
grooming services is expected to increase at a CAGR of 3.1% over the next few years, with a total market
value of US$157.0 billion by 2024. In particular, intimate care and face architecture are one of the fastest
growing industries within the global beauty and grooming services market, which are expected to grow in
proportion from 1.5% and 1.1% in 2019 to 1.7% and 1.3% by 2024, respectively.
                 Classification and share in 2014                                        Classification and share in 2019                                        Classification and share in 2024
                                        1.3%                                                                    1.5%                                                                   1.7%
                                             0.9%                                                                    1.1%                                                                   1.3%
                                1.7% 1.2%                                                               1.7% 1.2%                                                              1.6% 1.4%
                            8.6%                                                                    8.9%                                                                   9.2%

                                                                  33.9%                                                                      33.4%
                  9.3%                                                                                                                                                                                          33.1%
                                                                                          9.7%                                                                   10.1%

                 12.2%                                                                  11.2%                                                                    9.2%

                                                           30.9%                                                                         31.3%                                                          32.4%

                         Spa and massage industry         Tattoo industry                        Spa and massage industry           Tattoo industry                     Spa and massage industry      Tattoo industry
                         Skin care services industry      Tanning industry                       Skin care services industry        Tanning industry                    Skin care services industry   Tanning industry
                         Other industries                 Intimate care industry                 Other industries                   Intimate care industry              Other industries              Intimate care industry
                         Slimming service industry        Face architecture industry             Slimming service industry          Face architecture industry          Slimming service industry     Face architecture industry
                         Nail saloon industry                                                    Nail saloon industry                                                   Nail saloon industry

     Source: Frost & Sullivan Report

      Over the past few years, global beauty and grooming market has experienced growth, with the total
market size by revenue increasing from US$112.1 billion in 2014 to US$134.4 billion in 2019. The growth
is mainly contributed by the rising consciousness of beauty and health and the improving living standard
of consumers in developing areas, such as those living in countries of Asia, Middle East and Africa.
Driven by increasing number of customers who wants to improve their personal appearances and images,
the global market for beauty and grooming services is expected to increase at a CAGR of 3.1% over the
next few years, according to the Frost & Sullivan Report. The upgrading of beauty techniques and devices
are also expected to draw more customers to consume personal care services at beauty outlets.
Definition of the intimate care and face architecture segment
      Intimate care covers treatments and products of hair removal (including waxing, other semi-
permanent hair removal techniques and pre- and post-care services), rejuvenation for the intimate area and
thermal shape services offered at beauty outlets. Face architecture entails treatments and products of semi-
permanent make-up, brow shaping and coloring, lash extension and curl up and other facial hair removal
offered at beauty outlets.
       Intimate care and face architecture services are usually provided at outlets, which are equipped with
facilities and therapists to ensure the service quality and safety. Upstream suppliers of the intimate care
and face architecture segment includes manufacture/distribution of beauty equipment and treatment
consumables. Therapists are of great importance to service quality and operational safety and tend to be
qualified prior to provision of services. As such, labour costs tend to form a substantial component for
market players.
OVERVIEW OF GLOBAL INTIMATE CARE MARKET
Market size by revenue
                Market size by revenue of intimate care industry (global), 2014–2024E
                                                  Million US$
                                                  2,800                                                 Total               Male         Female                                            2,674.5
                                                  2,600          2014–2019 CAGR:                        5.9%                5.8%         5.9%                               2,518.4
                                                                 2020E–2024E CAGR:                      6.3%                7.5%         6.1%                    2,369.1                   432.3
                                                  2,400
                                                                                                                                                       2,226.6                401.8
                                                  2,200                                                                                   2,092.7                373.1
                                                                                                                               1,968.7                 347.1
                                                  2,000                                                         1,853.8                    323.2
                                                  1,800                                             1,757.2                    301.8
                                                                                       1,656.2                      283.1
                                                                         1,563.9                                                                                                           2,242.2
                                                  1,600                                              267.1                                                                  2,116.6
                                                            1,479.6                    252.5                                                                     1,996.0
                                                                            239.3                                                                      1,879.5
                                                  1,400       227.3                                                            1,666.9    1,769.5
                                                                                                    1,490.1     1,570.7
                                                  1,200                  1,324.6       1,403.7
                                                            1,252.3
                                                  1,000
                                                              2014          2015       2016          2017           2018       2019       2020E        2021E     2022E       2023E         2024E

                                                                                                                    Male                  Female

     Source: Frost & Sullivan Report

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                                                                            INDUSTRY OVERVIEW

      The intimate care market is gaining significant momentum across the world, as a consequence of the
increasing global interest in personal beauty. Such rising consciousness has fueled the demand for
professional intimate care services. The global intimate care industry has increased to
US$1,968.7 million in 2019, at a CAGR of 5.9% since 2014. The market is expected to increase to
US$2,674.5 million at a CAGR of 6.3% from 2020 to 2024. Historically, patrons of the intimate care
market are mostly female professionals whose spending accounted for around 84.7% of the total market
size in terms of revenue. The market size for males are expected to grow at a higher CAGR of 7.5% from
2020 to 2024 as personal grooming consciousness spread amongst the male population.
Market size by revenue of intimate care industry                                                            Market size by revenue of intimate care industry
           (Singapore), 2014–2024E                                                                                      (Malaysia), 2014–2024E
   Million S$       2014–2019 CAGR:                 6.0%                                                         Million MYR      2014–2019 CAGR:                 5.8%
   200              2020E–2024E CAGR:               7.1%                                                         220              2020E–2024E CAGR:               6.7%                                    205.4
                                                                                              183.0                                                                                               192.7
                                                                                    170.9                        200                                                                      180.6
                                                                            159.4                                                                                                 169.3
                                                                    148.8                                        180
   150                                                      139.2                                                                                                         158.7
                                                    130.7                                                        160                                              148.9
                                           123.3                                                                                                         139.8
                                   117.4                                                                         140                     124.5   131.6
                   103.4   110.1                                                                                                 117.9
           97.5                                                                                                  120     112.3
   100
                                                                                                                 100
                                                                                                                  80
     50                                                                                                           60
                                                                                                                  40
                                                                                                                  20
      0                                                                                                            0
           2014    2015    2016    2017    2018     2019    2020E   2021E   2022E   2023E     2024E                      2014    2015    2016    2017    2018     2019    2020E   2021E   2022E   2023E   2024E

                                           Actual            Estimated                                                                                   Actual            Estimated

Source: Frost & Sullivan Report                                                                             Source: Frost & Sullivan Report

Market size by revenue of intimate care industry                                                            Market size by revenue of intimate care industry
              (PRC), 2014–2024E                                                                                        (Hong Kong), 2014–2024E
   Million RMB       2014–2019 CAGR:                 5.8%                                                        Million HK$       2014–2019 CAGR:                 5.9%
   1,200             2020E–2024E CAGR:               6.5%                                                                          2020E–2024E CAGR:               6.6%                                   1,035.9
                                                                                              1,088.7            1,050                                                                            971.8
                                                                                    1,021.3                                                                                               909.9
   1,050                                                                    958.1                                 900                                                             853.6
                                                                    899.6                                                                                                 802.3
    900                                                     844.7                                                                                                 756.2
                                                    793.9                                                         750                            681.3    718.8
                                   702.5    746.1                                                                                        639.7
    750                    662.7                                                                                                 601.2
           598.3   626.4                                                                                          600    568.2
    600
                                                                                                                  450
    450
    300                                                                                                           300

    150                                                                                                           150

      0                                                                                                             0
           2014    2015    2016    2017     2018    2019    2020E   2021E   2022E   2023E     2024E                      2014    2015    2016    2017     2018    2019    2020E   2021E   2022E   2023E   2024E

                                           Actual             Estimated                                                                                  Actual             Estimated

Source: Frost & Sullivan Report                                                                             Source: Frost & Sullivan Report

      As Singapore is situated near the equator, it has a tropical climate with abundant rainfall, high
temperature and high humidity all year round. Since hair removal for certain areas such as intimate area
and the back are difficult to accomplish by oneself at home and hair removal services in professional
outlets have longer lasting effects, professional intimate care services are gaining popularity in Singapore
over the past years and the market is expected to grow at a CAGR of 7.1% from 2020 to 2024. Moreover,
the per capita disposable income in Singapore experienced stable growth over the past few years and is
estimated to reach approximately S$79,000 in 2018. The per capita disposable income in Singapore is
expected to further increase to approximately S$85,600 by 2023. The general rising income by household
in Singapore together with rising awareness of the necessity of personal care is also expected to lead to
higher spending on personal care services. This is in line with the general trend in the global beauty and
grooming market, which growth has been mainly contributed by the rising consciousness of beauty and
health and improving living standard of consumers in developing areas — Asia amongst others.
      As Malaysia is a developing country, professional intimate care service is still vastly considered as a
high-end consumption. Going forward, with the improvement of people’s living standard and the
increasing focus on personal appearance, the market size in Malaysia is predicted to reach MYR205.4
million in 2024 at a CAGR of 6.7% from 2020 to 2024.

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                                      INDUSTRY OVERVIEW

      Due to different levels of urbanisation, inhabitants in the PRC’s tier one cities have higher aesthetics
consciousness and consumption power as compared to lower-tier cities. Going forward, backed by a
growing economy and increasing awareness of personal hygiene brought about by urbanisation and the
rapidly-increasing income level and spending power of tier two cities, the market size of the PRC is
expected to reach RMB1,088.7 million by 2024, at a CAGR of 6.5% from 2020 to 2024.
     For Hong Kong, in addition to local customers, customers from the PRC with strong consumption
power also consume intimate care services in Hong Kong. With the development of the Hong Kong
economy, the market size in Hong Kong therefore is predicted to grow to HK$1,035.9 million by 2024, at
a CAGR of 6.6% from 2020 to 2024.
Key drivers of intimate care industry
—    Consumer purchasing power
     Due to the growing disposable income, the global market for beauty and grooming service is
expected to witness a substantial growth from US$139.1 billion in 2020 to US$157.0 billion in 2024,
demonstrating a CAGR of 3.1%. Moreover, per capita annual personal care expenditures in Singapore,
Malaysia, the PRC and Hong Kong are expected to grow at a CAGR of 2.7%, 4.9%, 8.2% and 4.7%,
respectively from 2019 to 2023, demonstrating increasing potential for growth in demand for personal
intimate care. The overall intimate care segment are partly fueled by high growth from the up-and-coming
intimate care products within the intimate care segment.
—    Improvement in efficacy
      With heightened focus on body appearance, customers generally have more expectations on the
results of intimate care services. For intimate care service providers, adapting to the technological
development by upgrading to more advanced models of beauty devices is one of the key factors for
improved efficacy. It is likely that potential customers will expand their consumption pattern from existing
traditional hair removal services to intimate care treatments. As a result, intimate care service providers
have to continuously launch new intimate care services and products to satisfy customers’ increased
demand for better efficacy and variety of intimate care treatments and products.
—    Growing demand for intimate care product
      There has been a growing demand for intimate care products to perform self-treatment on a more
frequent basis at the comfort of consumers’ home. There has also been a growing preference to purchase
intimate care products online in addition to conventional distribution channels such as cosmetic stores,
convenience stores and supermarkets. To capitalise on such trends, intimate care service providers should
expand both their online and retail presence by promoting new intimate care products in order to expand
their customer base and further enhance the overall development of the industry.
Market challenges
—    High demand cultivation cost
      The intimate care industry has obtained remarkable achievements in the past few years. However,
many customers still do not recognise the importance and need to purchase intimate care services. For
instance, Chinese customers do not have the habit of hair removal and only some tier one cities like
Shanghai has embraced these services. Hence, intimate care service providers will face obstacles for their
business development and expansion especially in markets with low awareness. In order to overcome such
issues, service providers need to devote time and capital to educate these customers.
—    Intense competitive environment in developed markets
       In developed markets such as Singapore, competition within the intimate care market is fierce.
Customers are constantly looking for more advanced and innovative services and products; therefore,
intimate care service providers need to continuously upgrade the efficacy of their offerings in order to
keep pace with the market. Those who do not address changes in market demand will be driven out of the
market eventually. It is critical for service providers of the intimate care industry to foster continuous

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                                        INDUSTRY OVERVIEW

education and skill development for their technicians to improve business image, develop high quality
service and increase client base. Educating technicians to improve their skills is essential for building
customer confidence and promoting good practices within the industry. It is expected that the intimate care
industry will develop their own industry standard in the near future to meet increasing demand for high
quality services.
—    Franchise business
      Intimate care industry is decentralised and competitive and given the low barriers to entry,
competition is expected to intensify further in the years to come. Large franchise service providers will be
able to gain more market share by delivering a consistent customer experience on a global scale. In the
expansion of global franchise network, intimate care service providers establish robust infrastructure and
implement distinctive procedures. With the expansion of global business, franchise service providers will
gain greater reputation and provide consumers with more choices in the future.
Competitive landscape of intimate care industry
—    Entry barrier
     Brand recognition
           The global market for intimate care displays a highly competitive business landscape with the
     continuous venturing of new entrants. Given the nature of intimate care, customers’ confidence is of
     paramount importance, therefore, brand recognition is one of the major competitive advantage for
     intimate care service providers. Establishing a brand of repute requires time, effort and more
     importantly, satisfied customers. New entrants without strong brand recognition may find it difficult
     to establish any competitive advantage.
     Capital intensive
           Intimate care market has a high barrier in terms of capital access. Intimate care outlets are
     usually located in the central area of metropolitan cities with high footfall to solicit customers and
     enhance brand exposure. Further, marketing efforts to promote brand recognition also requires
     substantial expenditure. Moreover, since quality of services depends heavily on the experience and
     competency of therapists, leading companies usually invest substantial capital by offering
     professional trainings to their staff members in order to maintain consistent and outstanding services.
—    Industry ranking
     Top five intimate care service providers in Singapore
          Intimate care industry in Singapore is fragmented. The total revenue of Singapore intimate care
     industry reached S$130.7 million in 2019 and the top five players accounted for approximately
     45.6% of the total revenue. Amongst all the players, our Group ranked first with a market share of
     14.9% in 2019.
                 Top 5 players by revenue in intimate care industry (Singapore), 2019

                          Our Group                                        14.9%

                         Company A                                 10.8%

                         Company B                          8.2%

                         Company C                   6.6%

                         Company D            5.1%

           Source: Frost & Sullivan Report

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            Competitor profiles
                 Among other companies in the top five rankings, Company A is a private company
            headquartered in Singapore and provides services such as waxing and long term hair removal to
            customers, as well as face architecture services such as tinting and whitening of the brows. Company
            B is a private company headquartered in Japan and mainly focuses its business on hair removal.
            Company C is also a private company from Japan and is specialised in helping customers achieve
            smoother and fairer skin. Company D is a private company headquartered in Singapore, operating
            businesses such as Brazilian waxing, body waxing, LHE (Light, Heat and Energy) treatment, etc.
                 According to Frost & Sullivan, the intimate care industry is vast with many service providers
            providing different types of treatments and no recognisable industry leaders in Malaysia, the PRC
            and Hong Kong and considering our Group accounted for an insignificant share of the overall
            intimate care industry in the these regions, it is not practical to ascertain the market share of our
            Group and other major players in these regions.
OVERVIEW OF GLOBAL FACE ARCHITECTURE INDUSTRY
Market size by revenue
     The global face architecture market has experienced a sound development over the past five years.
Its market size by revenue increased to US$1,419.5 million in 2019, at a CAGR of 6.4% since 2014.
Going forward, market size of the female customers are expected to grow at a higher CAGR at 7.3% for
2020 to 2024 compared to 6.8% for males over the same period.
   Market size by revenue of face architecture                                                                                            Market size by revenue of face architecture
        industry (global), 2014–2024E                                                                                                        industry (Singapore), 2014–2024E

   Million US$                                      Total           Male       Female                                                       Million S$       2014–2019 CAGR:                  7.4%
                     2014–2019 CAGR:                6.4%            5.7%       6.5%                                    2,017.1             160.0             2020E–2024E CAGR:                8.4%
   2,100                                                                                                     1,881.6                                                                                                                      151.7
                     2020E–2024E CAGR:              7.3%            6.8%       7.3%                1,753.6             145.2
                                                                                         1,632.8             135.8
                                                                                                                                           140.0                                                                                 139.9
   1,800                                                                                                                                                                                                                128.9
                                                                               1,521.7             127.2
                                                                     1,419.5             119.1                                             120.0                                                               118.8
   1,500                                               1,324.9                  111.7                                                                                                                 109.8
                                  1,165.9   1,240.5                  104.9                                                                                                                  101.6
                        1,099.9                                                                                                            100.0                                    94.5
             1,040.6                                        98.6                                                                                                            88.2
   1,200                           88.2
                                             93.0
                                                                                                                                                                    81.7
                         83.8                                                                                          1,871.9              80.0            76.2
              79.6
                                                                                                             1,745.8                                71.2
    900                                                                                            1,626.4                                  60.0
                                                                               1,410.0   1,513.7
                                                       1,226.3       1,314.6
    600                           1,077.7   1,147.5                                                                                         40.0
             961.0      1,016.1
    300                                                                                                                                     20.0

      0                                                                                                                                      0.0
             2014       2015      2016      2017        2018         2019      2020E     2021E     2022E     2023E     2024E                        2014    2015    2016    2017    2018     2019    2020E    2021E    2022E    2023E    2024E

                                                        Male                   Female

Source: Frost & Sullivan Report                                                                                                      Source: Frost & Sullivan Report
   Market size by revenue of face architecture                                                                                            Market size by revenue of face architecture
         industry (PRC), 2014–2024E                                                                                                          industry (Hong Kong), 2014–2024E
   Million RMB             2014–2019 CAGR:                             6.3%                                                               Million HK$       2014–2019 CAGR:                 7.0%
  1,050.0                  2020E–2024E CAGR:                           7.5%                                                                                 2020E–2024E CAGR:               7.9%
                                                                                                                                          800.0
                                                                                                                        936.9                                                                                                            710.5
                                                                                                              871.5                       700.0                                                                                 657.9
   900.0                                                                                            809.9                                                                                                              608.6
                                                                                          753.4                                           600.0                                                               563.5
   750.0                                                              655.6     702.1                                                                                                                523.7
                                                            615.0                                                                                                                           489.4
                                             580.2                                                                                        500.0                                    459.5
   600.0                           544.8                                                                                                                           398.3   428.6
              482.6      512.5                                                                                                            400.0            371.5
                                                                                                                                                   348.2
   450.0
                                                                                                                                          300.0
   300.0
                                                                                                                                          200.0
   150.0                                                                                                                                  100.0
      0.0                                                                                                                                   0.0
              2014       2015      2016      2017           2018      2019      2020E 20201E 2022E           2023E      2024E                      2014    2015    2016    2017    2018     2019     2020E    2021E    2022E    2023E    2024E

                                                        Actual                    Estimated                                                                                        Actual             Estimated

Source: Frost & Sullivan Report                                                                                                      Source: Frost & Sullivan Report

      Singapore has a well-developed market for face architecture. Going forward, customers are likely to
have higher expectations for face architecture services such as longer lasting results, thereby encouraging
service providers to upgrade their offerings. The market size by revenue is expected to grow from S$109.8
million in 2020 to S$151.7 million in 2024, representing a CAGR of 8.4%. Similar to intimate care
services in Singapore, the per capita annual expenditure on personal care services in Singapore reached
approximately S$322.9 in 2019, at a CAGR of 2.8% since 2014 and is expected to further grow to

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                                     INDUSTRY OVERVIEW

approximately S$369.9 in 2024, at a CAGR of 2.8% from 2020. In light of this, coupled with the
increasing awareness among customers, there is a strong potential for sustained growth for face
architecture services in Singapore in the near future.
      The PRC had a fast developing economy in the past few years which underpinned the overall
development of the face architecture service market. Going forward, tier two and tier three cities are
expected to largely contribute to the growth of the overall PRC market. With the PRC’s sizeable potential
customer base, the market size by revenue of face architecture industry is forecasted to reach RMB936.9
million in 2024, at a CAGR of 7.5% since 2020.
      Since the culture in Hong Kong is more westernised, face architecture services developed rapidly
with the market size by revenue increased at a CAGR of 7.0% from 2014 to 2019. Looking forward, the
market size for face architecture service in Hong Kong will expand further as a result of rising customer
awareness driven by more advanced service techniques.
Key drivers of face architecture industry
—    Large customer base
      The improving living standard affords more consumers to concentrate on their quality of life and
personal images. With the rising interest in beauty, face architecture is gaining significant momentum
across the world. In addition to its traditionally female clientele, growth in the market amongst male
customers is expected to be driven by increasing male awareness and social acceptance on face
architecture services. The enlarging customer group expands wider and further drives the development of
face architecture industry in the coming future.
—    Improved efficacy
      In the face architecture industry, semi-permanent make-up techniques are expected to develop with a
higher degree of colour permanence with more natural-looking, longer-lasting results and more
comfortable treatment. In addition, customer experience will prompt the growth of face architecture
industry that makes it necessary for market participants to expand their business scope and provide more
diversified services, thus maintaining customer stickiness and horizontally promoting the development of
face architecture industry.
Market challenges
—    High demand cultivation cost
      Face architecture industry has obtained significant achievements in the past few years. However, due
to the development difference of economy and cultural concept, many customers have yet to recognise the
importance and effect of professional face architecture services as certain services such as brow shaping
can be performed by oneself at home. Cultivation of consumer behaviour, from the acceptance of concept
to the formation of consumer habits would require time and marketing efforts; hence, face architecture
service providers need to devote a massive amount of time and capital to educate customers.
—    Intense competitive environment in developed markets
      The competition environment in developed market such as Singapore and Hong Kong is relatively
intense and fragmented. Due to the relatively longer development history of face architecture service in
developed countries or regions, many players in the market have obtained good customer relationships and
experienced therapist teams. Hence, in order to keep pace with the fast developing market, face
architecture service providers need to continuously enhance their research and development capabilities
and training strategies to retain customers and therapists alike. It is critical for service providers of the
face architecture industry to foster continuous education and skill development for their technicians to
improve business image, develop high quality service and expand client base. Educating technicians to
improve their skills is essential for building customer confidence and promoting good practices within the
industry. It is expected that the face architecture industry will develop their own industry standard in the
near future to meet increasing demand for high quality services.

                                                   – 69 –
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN
CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

                                        INDUSTRY OVERVIEW

Competitive landscape of face architecture industry
—    Entry barriers
     Ability to recruit and retain skilled talents
           The inherent nature of the face architecture industry requires an artistic touch. In particular,
     specific face architecture treatments under ‘‘Browhaus’’ such as brow shaping and semi-permanent
     make-up requires strong appreciation for aesthetics. The talent pool for therapists in the face
     architecture industry is relatively limited, compared with the types of beauty services, which are
     more mechanical in nature. As a result, the in-house treatment techniques, reputation and
     remuneration packages offered by face architecture service providers to potential therapists are key
     factors for recruitment and retention of skilled talents, and in turn, maintenance of its service quality,
     thus competitiveness.
     Capital intensive
           Face architecture industry has a high barrier in terms of capital access. Face architecture outlets
     are usually located in the commercial business area of metropolitan cities which can bring large
     population flow and potential customers. Moreover, the equipment and devices applied to semi-
     permanent make-up services, brow shaping and coloring, lash extension, etc. are of great importance
     to the service quality and customer experience; hence, face architecture service providers need to
     invest heavily on advanced equipment. For new entrants, a large amount of capital investment in the
     early stage is essential but difficult to obtain.
—    Industry ranking
     Top five face architecture service providers in Singapore
           Face architecture industry in Singapore is fragmented. The total revenue of Singapore face
     architecture industry reached S$101.6 million in 2019 and the top five players accounted for
     approximately 38.9% of the total revenue. Among all the players, our Group ranked first with a
     market share of 12.0% in 2019.
              Top 5 Players by revenue in face architecture industry (Singapore), 2019

                          Our Group                                       12.0%

                          Company E                                8.6%

                          Company F                         7.3%

                         Company A                   6.3%

                         Company G            4.7%

           Source: Frost & Sullivan Report

     Competitor profiles
           Among other companies in the top 5 rankings, Company E is a private company headquartered
     in Singapore and provides services such as lash tint, waxing, false eyelash application to customers.
     Company F is a private company headquartered in Singapore, providing services of eyebrow,
     eyeliner and lips and products of skincare and beauty tools. Company A is a private-owned local
     brand in Singapore, focusing its business on tinting and whitening under the face architecture
     category. Company G is a private company headquartered in Singapore, providing services of
     eyebrow, eyelash, eyeliner and lips as well as derivative products.

                                                      – 70 –
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN
CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

                                                                                             INDUSTRY OVERVIEW

                   According to Frost & Sullivan, the face architecture industry is vast with many service
             providers providing different types of treatments and no recognisable industry leaders in Malaysia,
             the PRC and Hong Kong and considering our Group accounted for an insignificant share of the
             overall face architecture industry in the these regions, it is not practical to ascertain the market share
             of our Group and other major players in these regions.
COST ANALYSIS
      According to the Frost & Sullivan Report, the major expense factors in Singapore, Malaysia, the
PRC and Hong Kong intimate care service industry and face architecture service industry are labour costs
and equipment. The chart below sets forth the annual average employee salary in the intimate care and
face architecture industries of Singapore, Malaysia, the PRC and Hong Kong:
 Average annual employee salary in the intimate    Average annual employee salary in the intimate
care and face architecture industries (Singapore), care and face architecture industries (Malaysia),
                   2014–2024E                                        2014–2024E
        S$                   2014–2019 CAGR: 5.4%                                                                                           MYR                      2014–2019 CAGR: 6.7%
                             2020E–2024E CAGR: 5.1%                                                          37,400 39,200                                           2020E–2024E CAGR: 6.0%
    40,000                                                                                        35,600                                  100,000                                                                                                              90,900
                                                                                        33,800                                                                                                                                                      86,000
    35,000                                                                   32,100                                                                                                                                                       81,200
                                                         29,900    30,800                                                                                                                                                       76,600
                                               28,100                                                                                      80,000                                                                    72,100
    30,000                           26,500                                                                                                                                                                68,300
                          25,000                                                                                                                                                                 64,700
                23,700                                                                                                                                                                 60,600
    25,000                                                                                                                                                         52,700    56,600
                                                                                                                                           60,000       49,300
    20,000
    15,000                                                                                                                                 40,000

    10,000
                                                                                                                                           20,000
     5,000
         0                                                                                                                                     0
                 2014      2015       2016      2017      2018      2019      2020E     2021E      2022E     2023E     2024E                             2014      2015      2016      2017      2018       2019     2020E      2021E     2022E     2023E      2024E

Source: Frost & Sullivan Report                                                                                                     Source: Frost & Sullivan Report

 Average annual employee salary in the intimate                                                                                      Average annual employee salary in the intimate
  care and face architecture industries (PRC),                                                                                            care and face architecture industries
                  2014–2024E                                                                                                                   (Hong Kong), 2014–2024E
      RMB                    2014–2019 CAGR: 7.0%                                                                                            HK$                     2014–2019 CAGR: 6.1%
                             2020E–2024E CAGR: 6.0%                                                                    126,900            250,000                    2020E–2024E CAGR: 5.3%
   140,000                                                                                                   119,700
                                                                                                   112,900                                                                                                                                                    206,400
                                                                                                                                                                                                                                                    196,300
   120,000                                                                              106,500                                                                                                                                          186,500
                                                                    94,600 100,400                                                        200,000                                                                         176,900
   100,000                                                89,200                                                                                                                                          158,900 167,700
                                                83,700                                                                                                                                          150,300
                           73,000     78,300
                                                                                                                                          150,000                       133,100 141,400
    80,000       67,500                                                                                                                                 118,400 125,500
    60,000                                                                                                                                100,000
    40,000
                                                                                                                                           50,000
    20,000

          0                                                                                                                                    0
                 2014      2015        2016     2017      2018      2019       2020E     2021E     2022E      2023E     2024E                            2014      2015      2016      2017      2018      2019      2020E      2021E     2022E     2023E      2024E

Source: Frost & Sullivan Report                                                                                                     Source: Frost & Sullivan Report

      In addition to labour costs, machines for semi-permanent hair removal is a major cost component in
the intimate care service industry, whilst treatment beds are major cost components for both intimate care
and face architecture service industries in Singapore, Malaysia, the PRC and Hong Kong. The average
costs are set forth in the chart as below:
     Average price of major equipment in the                                                                                              Average price of major equipment in the
  intimate care and face architecture industries                                                                                       intimate care and face architecture industries
            (Singapore), 2014–2024E                                                                                                               (Malaysia), 2014–2024E
                                                            Machine         Treatment Bed                                                                                                           Machine         Treatment Bed
                              2014–2019 CAGR:                -0.6%              -1.8%                                                                                   2014–2019 CAGR:              -0.9%              -2.4%
                              2020E–2024E CAGR:              -0.6%              -1.0%                                                                                   2020E–2024E CAGR:            -0.7%              -0.8%
  S$ per unit                       Machines for semi-permanent hair removal                     Treatment Bed                                                          Machines for semi-permanent hair removal                         Treatment Bed
                                                                                                                                      MYR per unit
     50,000      46,500    46,000 46,000 45,400           45,200    45,100                                                                                136,800 135,100 134,900 133,400 131,700 131,000 129,900
                                                                               44,800    44,500     44,200    43,900 43,700                 140,000                                                                              128,800 127,900 127,000 126,100
     45,000
     40,000                                                                                                                                 120,000
     35,000                                                                                                                                 100,000
     30,000
                                                                                                                                             80,000
     25,000
     20,000                                                                                                                                  60,000
     15,000
                                                                                                                                             40,000
     10,000
      5,000       1,940     1,920      1,830     1,790     1,780     1,770      1,750     1,730     1,710      1,690    1,680                20,000
                                                                                                                                                           4,880     4,800     4,570     4,470     4,350     4,320      4,280     4,240     4,200      4,170     4,140
          0                                                                                                                                         0
                  2014      2015       2016      2017      2018      2019      2020E     2021E      2022E     2023E     2024E
                                                                                                                                                           2014       2015     2016      2017      2018       2019     2020E      2021E     2022E     2023E      2024E

Source: Frost & Sullivan Report                                                                                                     Source: Frost & Sullivan Report

                                                                                                                                 – 71 –
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN
CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

                                                                                 INDUSTRY OVERVIEW

     Average price of major equipment in the                                                                           Average price of major equipment in the
  intimate care and face architecture industries                                                                    intimate care and face architecture industries
            (Hong Kong), 2014–2024E                                                                                              (PRC), 2014–2024E
                                                     Machine     Treatment Bed                                                                                         Machine      Treatment Bed
                           2014–2019 CAGR:            -0.8%          -2.1%                                                                   2014–2019 CAGR:            -1.0%           -2.5%
                           2020E–2024E CAGR:          -0.9%          -0.7%                                                                   2020E–2024E CAGR:          -0.8%           -0.9%
 HK$ per unit                   Machines for semi-permanent hair removal          Treatment Bed                    RMB per unit                   Machines for semi-permanent hair removal          Treatment Bed
     300,000                                                                                                           250,000
                257,000 254,200 254,100 251,200                                                                                   212,700 210,200 209,700 206,700
                                                248,000 247,000 244,400 241,800 239,600                                                                           204,000 202,200 199,800 198,100
                                                                                        237,600 235,900                                                                                           196,400 194,800 193,500
     250,000                                                                                                           200,000
     200,000
                                                                                                                       150,000
     150,000
                                                                                                                       100,000
     100,000

      50,000                                                                                                            50,000
                10,040   9,940     9,570    9,380   9,130    9,020    8,930   8,850   8,790   8,730   8,680                        7,120   6,980     6,650    6,490    6,340   6,280    6,220   6,160   6,100   6,050   6,010
           0                                                                                                                 0
                 2014    2015      2016     2017     2018    2019    2020E    2021E   2022E   2023E   2024E                        2014    2015      2016     2017     2018      2019   2020E   2021E   2022E   2023E   2024E

Source: Frost & Sullivan Report                                                                                  Source: Frost & Sullivan Report

FROST & SULLIVAN’S COMMENT ON OUR GROUP
         Frost & Sullivan is of the view that:
         .              we have established a strong track record and extensive global network in the market. In
                        particular, our Group owns two distinguished brands ‘‘Strip’’ and ‘‘Browhaus’’ which are
                        known to be the industry trendsetter. As trendsetters and pioneers with well-established
                        franchise model and strong customer loyalty, both ‘‘Strip’’ and ‘‘Browhaus’’ are ranked as
                        market leaders in Singapore’s intimate care and face architecture industries, respectively;
         .              our strong brand recognition and solid customer loyalty put it in good stead to capture market
                        opportunity arising from the growing awareness of personal grooming;
         .              our on-going introduction of new and revolutionary intimate care products and services such as
                        intimate care products ‘‘TWO L(I)PS’’; Rosebud Vajuvenation and Thermal Shape for ‘‘Strip’’
                        and Plasma Lift for ‘‘Browhaus’’, which created a revolutionary trend and demonstrated its
                        capability to continuously develop innovative solutions to meet customers’ evolving demand in
                        order to stay at the forefront of the market; and
         .              we have been successful in our global network expansion utilising the franchise model to
                        enhance our overall brand equity and further strengthen our market positioning whilst avoiding
                        to bear the risk of debt or incur any cost of equity.

                                                                                                              – 72 –
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