About HYFUSIN GROUP Company

We are headquartered in Hong Kong and operate in Vietnam. We are mainly engaged in the manufacture and sale of candle products such as daily-use candles, scented candles and decorative candles, accounting for about 95.7%, 96.4% and 96.5% of total revenue for the two years ended 31 December 2016 and the six months ended June 30, 2017. We also manufacture and sell other products, mainly aromatherapy diffusers. The candles manufactured by the Group are mainly used as gifts or for personal use. During the track record period, our main markets were department store operators and purchasing agents headquartered in the US and the UK, including Hobby Lobby, MellerDesign, Sainsbury's, Target, Waitrose, and Williams Sonoma (which sold brands such as Williams Sonoma Home, Pottery Barn, and West Elm). According to the Frost & Sullivan report, we ranked fifth among Vietnamese candle manufacturers, with a market share of about 5.4% in terms of export value in 2016. We mainly manufacture candle products according to customer requirements and specifications. Once we have received the customer's inquiry, we will evaluate the specifications of such products and communicate with the customer. Due to the special needs of these customers, we will propose our modifications to the design and specifications, and once the customer determines the final design and specifications, we will prepare samples and provide them to the customer for approval. We provide customers with a variety of services, including product design, selection and procurement of raw materials, provision of sample candle products before mass production, laboratory testing, and advice on product quality improvement. Our production facilities are located in An Med Industrial Park in Dong Nai Province, Vietnam. As of the last practical date, we have employed over 800 production workers to operate and manage the production line. We mainly use our own production equipment to manufacture products. During the track record period, (i) when the number of orders for each item was relatively small; or (ii) in order to improve production efficiency during the peak production season, we also outsourced a number of orders to our Chinese subcontractors. Major US and UK customers may review our production equipment from time to time and find no unregulated incidents during the track record period. We also conduct final tests on our products for some customers before delivery. For details of measurement control measures, please refer to the “Quality Control” section below this section. For the two years ended December 31, 2016 and the six months ended June 30, 2017, total subcontract costs accounted for approximately 9.4%, 20.8%, and 17.5% of sales costs, respectively.