Sale of TheLian from Shanghai Lian’en Trade Development Co., Ltd Announced

Shanghai, China – The shareholders of Shanghai Lian’en Trade Development Co., Ltd. (“Lian” or the “Company”), together with their investment in Shanghai Xingyun Information Technology Co., Ltd. (“D1M”), have announced the sale of THELIAN to eBeauty Holdings (Cayman) Limited (“UCosmetics” or “UCO”; website: UCO Homepage). THELIAN, the official Tmall flagship stores of many brands, including Curel, ELIXIR, Cetaphil, Biore and Charlotte Tilbury, is operated by the Company. UCO is one the largest Tmall Partners (“TP”) providing outsourced ecommerce services to leading brands selling online in China. UCO has investment from CITIC Capital, among others, and has mandated Credit Suisse and CITIC Securities for a planned 2022 IPO in Hong Kong. Consideration for the acquisition of THELIAN will come in the form of cash and shares in UCO.

The combined UCO/THELIAN will be the most profitable TP and one of the Top 3 TPs in terms of gross merchandise value (“GMV”) and revenue. UCO’s publicly-disclosed performance data states the company will generate approximately US$750 million of revenue with growth of approximately 25% YoY, and more than US$100 million of net income.

Scale is increasingly important in the TP space as larger TPs are able to reduce concentration within their portfolio of brand partners, secure more favorable commercial terms from key vendors such as the major ecommerce/short video/livestreaming platforms, and to invest more aggressively in human resources and technology which, in turn, make them more attractive for current and prospective brand partners.

With THELIAN sold, the Company will continue to own the stake in D1M, which provides IT, marketing and online store operation services to leading brands in the beauty, watch & jewelry, fashion and FMCG/home categories.

About THELIAN

THELIAN was founded in 2005 and transformed into an e-commerce company focusing on brand network operation in 2009. Through various service models such as B2C direct marketing, B2B2C cross-channel business and agency distribution, it provides one-stop e-commerce services such as e-commerce strategy, creative design and live operation for brands, diversifies retail solutions for well-known cosmetic brands on various e-commerce platforms mainly Tmall and assists enterprises in brand communication.

About UCO

UCO, founded in July 2012, is a Chinese beauty brand service provider that provides services to beauty brand partners through its agency operations, including providing online store operations, customer service, fulfill after-sales services. Its partners include over 40 beauty brands, including Estee Lauder, Clinique, L’Occitane, VICHY, La Roche Posay and so on. Its operating platforms cover Tmall, Taobao, Vipshop, Jingdong and other e-commerce platforms. It is reported that UCO has passed the hearing of the Hong Kong Stock Exchange in June this year and will be listed on the Main Board of the Hong Kong Stock Exchange.