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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended: June 30, 2010

OR

[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 
For the transition period from ________________ to ________________

Commission File Number: 333-144888

CHINA SHESAYS MEDICAL COSMETOLOGY
INC.(Exact Name of Registrant as Specified in Its Charter)

|Nevada                                                                                    | 01-0660195                          
|----------------------------------------------------------------------------------------- | ------------------------------------
|(State or Other jurisdiction of Incorporation or
      Organization)                      | (I.R.S. Employer Identification No.)
|                                                                                          |                                     
|Sichuan SHESAYS Cosmetology Hospital Co., Ltd                                             |                                     
|New No. 83, Xinnan Road, Wuhou District, Chengdu
      City, Sichuan Province, P.R. China | 610041                              
|(Address of Principal Executive Offices)                                                  | (Zip Code)                          

(86) 028-85482277(Registrants
Telephone Number, Including Area Code)

N/A(Former Name, Former Address and Former
Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X]    No
[   ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
Yes [   ]    No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of large accelerated filer, accelerated
filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check
one)

Large accelerated filer [ 
 ]      Accelerated filer [ 
 ]      Non-accelerated filer [ 
 ]      Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).Yes [  
]    No [X]

As of August 13, 2010, there were 18,000,012 shares of Common
Stock of the Company, $0.001 par value,outstanding.

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Table of Contents

|                                                                                                                                                                                 | Page
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|PART
      I - FINANCIAL INFORMATION                                                                                                                                             |     
|Item
      1. Financial Statements.                                                                                                                                              |     
|Condensed Balance Sheets as of June 30, 2010 (Consolidated
      and Unaudited) and December 31, 2009 (Combined and Unaudited)                                                   | F-1 
|Unaudited Condensed Statements of Income and Other Comprehensive
      Income for the three and six months ended June 30, 2010 (Consolidated)
      and June 30, 2009 (Combined) | F-2 
|Unaudited Condensed Statements of Cash Flows for the six
      months ended June 30, 2010 (Consolidated) and 2009) (Combined)                                                    | F-3 
|Notes to Condensed Consolidated Financial Statements
    (Unaudited)                                                                                                             | F-5 
|                                                                                                                                                                                 |     
|Item
      2. Management's Discussion and Analysis of Financial Condition and Results
      of Operations.                                                                       | 1   
|Item
      3. Quantitative and Qualitative Disclosure About Market Risk.                                                                                                         | 9   
|Item
      4. Controls and Procedures.                                                                                                                                           | 9   
|                                                                                                                                                                                 |     
|PART
      II - OTHER INFORMATION                                                                                                                                                |     
|Item
      1. Legal Proceedings.                                                                                                                                                 | 10  
|Item
      1A. Risks Factors.                                                                                                                                                    | 10  
|Item
      2. Unregistered Sales of Equity Securities and Use of Proceeds.                                                                                                       | 10  
|Item
      3. Defaults Upon Senior Securities.                                                                                                                                   | 10  
|Item
      5. Other Information.                                                                                                                                                 | 10  
|Item
      6. Exhibits.                                                                                                                                                          | 10  
|                                                                                                                                                                                 |     
|SIGNATURES                                                                                                                                                                       |     

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PART I ITEM 1. FINANCIAL STATEMENTS

CHINA SHESAYS MEDICAL COSMETOLOGY INC. AND SUBSIDIARIES

CONDENSED BALANCE SHEETS

|                                                                                                                                                                                                                            |   | June 30,     |  |   | December 31, | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------ |  | - | ------------ | 
|                                                                                                                                                                                                                            |   | 2010         |  |   | 2009         | 
|                                                                                                                                                                                                                            |   | Consolidated |  |   | Combined     | 
|                                                                                                                                                                                                                            |   | (Unaudited)  |  |   | (Audited)    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|**ASSETS**                                                                                                                                                                                                                  |  
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|CURRENT ASSETS                                                                                                                                                                                                              |   |              |  |   |              | 
|Cash and cash equivalents                                                                                                                                                                                                   | $ | 774,259      |  | $ | 1,371,732    | 
|Inventories, net                                                                                                                                                                                                            |   | 307,258      |  |   | 335,932      | 
|Due from stockholders                                                                                                                                                                                                       |   | 52,821       |  |   | -            | 
|Other current assets and prepaid expenses                                                                                                                                                                                   |   | 1,303,410    |  |   | 526,507      | 
|Total
      Current Assets                                                                                                                                                                                                  |   | 2,437,748    |  |   | 2,234,171    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|DEPOSITS PAID FOR ACQUIRING PROPERTY AND
      EQUIPMENT                                                                                                                                                                    |   | 1,732,584    |  |   | 282,279      | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|OTHER ASSETS                                                                                                                                                                                                                |   | 1,072,981    |  |   | -            | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|PROPERTY AND EQUIPMENT, NET                                                                                                                                                                                                 |   | 1,533,934    |  |   | 1,347,382    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|TOTAL ASSETS                                                                                                                                                                                                                | $ | 6,777,247    |  | $ | 3,863,832    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                       
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|CURRENT LIABILITIES                                                                                                                                                                                                         |   |              |  |   |              | 
|Accounts payable                                                                                                                                                                                                            | $ | 461,163      |  | $ | 508,643      | 
|Notes payable                                                                                                                                                                                                               |   | 887,358      |  |   | 42,659       | 
|Deferred revenue                                                                                                                                                                                                            |   | 22,032       |  |   | 24,254       | 
|Other payables and accrued
      liabilities                                                                                                                                                                                |   | 802,504      |  |   | 655,913      | 
|Income tax payable                                                                                                                                                                                                          |   | 513,140      |  |   | 54,428       | 
|Sales tax payable and other
      taxes payable                                                                                                                                                                             |   | 10,933       |  |   | 7,260        | 
|Due to a related company                                                                                                                                                                                                    |   | -            |  |   | 20,555       | 
|Total
      Current Liabilities                                                                                                                                                                                             |   | 2,697,130    |  |   | 1,313,712    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                               |   | -            |  |   | -            | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|STOCKHOLDERS' EQUITY                                                                                                                                                                                                        |   |              |  |   |              | 
|Preferred stock, $0.001 par value,
      5,000,000 shares            
      authorized, none issued or outstanding as of            
      June 30, 2010 and December 31, 2009                                              |   | -            |  |   | -            | 
|Common stock,
      $0.001 par value, 65,849,200            
      shares authorized, 18,000,012 shares issued            
      as of June 30, 2010 and 13,500,012 shares            
      issued as of December 31, 2009 |   | 18,000       |  |   | 13,500       | 
|Additional paid in capital                                                                                                                                                                                                  |   | 1,056,900    |  |   | 1,011,153    | 
|Retained earnings                                                                                                                                                                                                           |   |              |  |   |              | 
|Unappropriated                                                                                                                                                                                                              |   | 2,837,539    |  |   | 1,373,765    | 
|Appropriated                                                                                                                                                                                                                |   | 151,284      |  |   | 151,284      | 
|Accumulated other comprehensive income                                                                                                                                                                                      |   | 16,394       |  |   | 418          | 
|Total
      Stockholders' Equity                                                                                                                                                                                            |   | 4,080,117    |  |   | 2,550,120    | 
|                                                                                                                                                                                                                            |   |              |  |   |              | 
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                  | $ | 6,777,247    |  | $ | 3,863,832    | 

The accompanying notes are an integral part of these condensed
consolidated financial statements

F-1

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CHINA SHESAYS MEDICAL COSMETOLOGY INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)

|                                                                |   | Three months ended |   |   | Six months ended |  
|--------------------------------------------------------------- | - | ------------------ | - | - | ---------------- | -
|                                                                |   | June, 30           |   |   | June, 30         |  
|                                                                |   | 2010               |   |   | 2009             |  
|                                                                |   | Consolidated       |   |   | Combined         |  
|                                                                |   |                    |   |   |                  |  
|CUSTOMER SERVICE REVENUE                                        | $ | 2,764,750          |   | $ | 2,254,482        |  
|                                                                |   |                    |   |   |                  |  
|COST OF REVENUE                                                 |   |                    |   |   |                  |  
|Cost of service revenue                                         |   | (732,328           | ) |   | (692,507         | )
|Depreciation                                                    |   | (74,820            | ) |   | (49,597          | )
|Total
      Cost of Revenue                                     |   | (807,148           | ) |   | (742,104         | )
|                                                                |   |                    |   |   |                  |  
|GROSS PROFIT                                                    |   | 1,957,602          |   |   | 1,512,378        |  
|                                                                |   |                    |   |   |                  |  
|OPERATING EXPENSES                                              |   |                    |   |   |                  |  
|Selling,
      general and administrative                       |   |                    |   |   |                  |  
|expenses                                                        |   | 698,328            |   |   | 588,276          |  
|Advertising
      costs                                         |   | 384,340            |   |   | 286,869          |  
|Professional and consultant
      fees                          |   | 360,850            |   |   | 16,059           |  
|Depreciation                                                    |   | 40,981             |   |   | 29,827           |  
|Total
      Operating Expenses                                  |   | 1,484,499          |   |   | 921,031          |  
|                                                                |   |                    |   |   |                  |  
|INCOME FROM OPERATIONS                                          |   | 473,103            |   |   | 591,347          |  
|                                                                |   |                    |   |   |                  |  
|OTHER INCOME (EXPENSES)                                         |   |                    |   |   |                  |  
|Other
      income                                              |   | 316                |   |   | 40,917           |  
|Interest income                                                 |   | 1,027              |   |   | 700              |  
|Interest
      expenses                                         |   | (15,042            | ) |   | -                |  
|Imputed interest                                                |   | -                  |   |   | (257             | )
|Other
      expenses                                            |   | (22,341            | ) |   | (15,636          | )
|Total Other Income (Expenses), net                              |   | (36,040            | ) |   | 25,724           |  
|                                                                |   |                    |   |   |                  |  
|INCOME FROM OPERATIONS BEFORE TAXES                             |   | 437,063            |   |   | 617,071          |  
|                                                                |   |                    |   |   |                  |  
|INCOME TAX EXPENSE                                              |   | (106,953           | ) |   | (57,841          | )
|                                                                |   |                    |   |   |                  |  
|NET INCOME                                                      |   | 330,110            |   |   | 559,230          |  
|                                                                |   |                    |   |   |                  |  
|OTHER COMPREHENSIVE INCOME (LOSS)                               |   |                    |   |   |                  |  
|Foreign currency translation gains (losses)                     |   | 15,577             |   |   | (469             | )
|                                                                |   |                    |   |   |                  |  
|COMPREHENSIVE INCOME                                            | $ | 345,687            |   | $ | 558,761          |  
|                                                                |   |                    |   |   |                  |  
|Net income per share-basic and diluted                          | $ | 0.02               |   | $ | 0.04             |  
|                                                                |   |                    |   |   |                  |  
|Weighted average number of shares outstanding during the period |   |                    |   |   |                  |  
|-
      basic and diluted                                       |   | 14,736,279         |   |   | 13,500,012       |  

The accompanying notes are an integral part of these condensed
consolidated financial statements

F-2

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CHINA SHESAYS MEDICAL COSMETOLOGY INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

|                                                                               |   | Six months ended |  
|------------------------------------------------------------------------------ | - | ---------------- | -
|                                                                               |   | June 30,         |  
|                                                                               |   | 2010             |  
|                                                                               |   | Consolidated     |  
|                                                                               |   |                  |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                           |   |                  |  
|Net income                                                                     | $ | 1,463,774        |  
|Adjusted to reconcile net income to cash provided by
    operating activities: |   |                  |  
|Depreciation - cost of revenue                                                 |   | 146,267          |  
|Depreciation - operating
      expenses                                        |   | 78,073           |  
|Loss on disposal of property and equipment                                     |   | 8,235            |  
|Imputed interest                                                               |   | 247              |  
|Changes in operating assets and liabilities                                    |   |                  |  
|(Increase) decrease in:                                                        |   |                  |  
|Inventories                                                                    |   | 29,969           |  
|Other current assets and
      prepaid expenses                                |   | (771,729         | )
|Increase (decrease) in:                                                        |   |                  |  
|Accounts payable                                                               |   | (49,427          | )
|Deferred revenue                                                               |   | (2,315           | )
|Other payables and accrued
      liabilities                                   |   | 143,291          |  
|Income tax payable                                                             |   | 456,730          |  
|Sales tax payable and other
      taxes payable                                |   | 3,629            |  
|Net cash provided by operating activities                                      |   | 1,506,744        |  
|                                                                               |   |                  |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                           |   |                  |  
|Purchase of property and equipment                                             |   | (412,775         | )
|Deposits (paid for acquiring) property and equipment                           |   | (1,443,577       | )
|Other receivables - long term portion                                          |   | (1,068,878       | )
|Due from stockholders                                                          |   | (52,821          | )
|Net cash used in investing
      activities                                    |   | (2,978,051       | )
|                                                                               |   |                  |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                           |   |                  |  
|Bank loan borrowed                                                             |   | 877,868          |  
|Bank loan repaid                                                               |   | (36,578          | )
|Due to related companies                                                       |   | (20,563          | )
|Due to stockholders                                                            |   | -                |  
|Contribution by stockholders                                                   |   | 50,000           |  
|Net cash provided by (used
      in) financing activities                      |   | 870,727          |  
|                                                                               |   |                  |  
|EFFECT OF EXCHANGE RATES ON CASH                                               |   | 3,107            |  
|                                                                               |   |                  |  
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                           |   | (597,473         | )
|                                                                               |   |                  |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                               |   | 1,371,732        |  
|                                                                               |   |                  |  
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                     | $ | 774,259          |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                               |   |                  |  
|Cash paid for interest expenses                                                | $ | 21,606           |  
|Cash paid for income tax                                                       | $ | 55,343           |  

The accompanying notes are an integral part of these condensed
consolidated financial statements

F-3

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CHINA SHESAYS MEDICAL COSMETOLOGY INC.AND
SUBSIDIARIES (fka SN Strategies Corp.)

Notes to the Condensed ConsolidatedFINANCIAL
STATEMENTS 
(UNAUDITED)

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited condensed
consolidated financial statements have been prepared in accordance with
generally accepted accounting principles (GAAP) in the United States of
America for interim financial information and rules and regulations of the U.S.
Securities and Exchange Commission (SEC). Accordingly, they do not include all
of the information and footnotes required by GAAP for complete financial
statements.

In the opinion of management, the
unaudited condensed consolidated financial statements contain all adjustments
consisting only of normal recurring accruals considered necessary to present
fairly the Company's financial position at June 30, 2010, the results of
operations for the three and six months ended June 30, 2010 (consolidated) and
2009 (combined) and statements of cash flows for the six months ended June 30,
2010 (consolidated) and 2009 (combined). The consolidated results for the three
and six months ended June 30, 2010 are not necessarily indicative of the results
to be expected for a full year.

These condensed financial statement
should be read in conjunction with the financial statements and notes for the
years ended December 31, 2009 and 2008 of Sichuan Shesays Cosmetology Hospital
Company Limited (Sichuan Shesays) appearing in the Company's on Form 8-K as
filed with the SEC on June 7, 2010.

NOTE 2 ORGANIZATION

SN Strategies Corp. was incorporated
under the laws of the State of Nevada on January 18, 2002.

Perfect Support Limited (Perfect
Support) was incorporated in the British Virgin Islands (BVI) on January 15,
2010 as an investment holding company. Through its wholly owned subsidiary,
Chengdu Boan Investment Management Co., Limited (Chengdu Boan), the Company is
principally engaged in providing consultancy services on medical beauty
services, cosmetic surgery services and cosmetic dentistry services in the
Peoples Republic of China (PRC). Chengdu Boan was incorporated in the PRC as
a wholly-owned foreign enterprise on April 27, 2010. In accordance with the
business permit, Chengdu Boans right of operation expires on April 27, 2040 and
is renewable on expiry.

Sichuan Shesays was incorporated in the
PRC on May 30, 2005 as a limited liability company. Sichuan Shesays is a clinic
for providing professional medical beauty services, cosmetic surgery services
and cosmetic dentistry services to customers in PRC. In accordance with its
business permit, the Companys right of operation expires on May 30, 2025.

On April 27, 2010, Chengdu Boan entered
into a series of agreements (collectively known as the Restructuring Agreements)
with Sichuan Shesays and the stockholders of Sichuan Shesays in which Chengdu
Boan assumed the management of the business activities of Sichuan Shesays,
making Sichuan Shesays a contractually controlled affiliate under ASC Topic 810
"Consolidation (formerly EITF 97-2). As both companies were under common
control before and after the consummation of the Restructuring Agreements on
April 27, 2010, the restructure was accounted for as a reorganization of
entities under common control and the consolidated financial statements were
prepared as if the reorganization occurred at the beginning of the first period
presented.

On June 6, 2010, SN Strategies Corp.,
the Parent, China Shesays Medical Cosmetology Inc., the Merger Sub, a Nevada
corporation, wholly owned by the Parent and incorporated on May 20, 2010,
Perfect Support, known as the Acquired Sub, and the stockholders of the Acquired
Sub, entered into an Agreement and Plan of Merger pursuant to which the Merger
Sub agreed to acquire 100% of the common stocks of Acquired Sub. In connection
with the merger, the Merger Sub issued to the stockholders of Acquired Sub 10
shares for all outstanding shares of the Acquired Subs common stock. The 10
shares of common stock of the Merger Sub were subsequently converted
to 13,500,012 shares of common stock of the Parent Company.

Concurrent with the merger, the Merger
Sub shall be merged with and into the Parent at the effective time of the
merger. The Company will become a wholly owned subsidiary of the Parent upon
which the Merger Sub shall no longer exist, and Parents name will change to the
Merger Subs name.

China Shesays, Perfect Support, Chengdu
Boan and Sichuan Shesays are hereinafter referred to as (the Company).

F-4

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CHINA SHESAYS MEDICAL COSMETOLOGY INC.AND
SUBSIDIARIES (fka SN Strategies Corp.)

Notes to the Condensed ConsolidatedFINANCIAL
STATEMENTS 
(UNAUDITED)

For financial reporting purposes, the
merger has been accounted for as a recapitalization of the Company whereby the
historical financial statements and operations of the Acquired Sub become the
historical financial statements of the Company, with no adjustments to the
carrying value of assets and liabilities. Share and per share amounts reflect
the effects of the recapitalization for all periods presented. In addition, the
presentation for all periods includes equity transactions of the Acquired Sub as
adjusted for the effects of the recapitalization.

NOTE 3 PRINCIPLES OF CONSOLIDATION / COMBINATION

The accompanying unaudited condensed
consolidated financial statements for the six months ended June 30, 2010 include
the financial statements of China Shesays, its wholly owned subsidiary, Perfect
Support, Chengdu Boan and Sichuan Shesays, a contractually controlled affiliate
for the six months ended June 30, 2010 (collectively known as the Company).

The accompanying unaudited combined
financial statements for the six months ended June 30, 2009 include the
financial statements of the contractually controlled affiliate, China Shesays
for the six months ended June 30, 2009.

All significant inter-company balances
and transactions have been eliminated in consolidation.

NOTE 4 USE OF ESTIMATES

The preparation of the unaudited
condensed consolidated financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the consolidated financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

NOTE 5 RECENT ACCOUNTING STANDARDS AND PRONOUNCEMENTS

In February 2010, FASB issued ASU
2010-10 Consolidation (Topic 810), Amendments for Certain Investment Funds.
ASU 2010-10 amends the consolidation requirements of Topic 810 resulting from
the issuance of Statement 167 are deferred for a reporting entitys interest in
an entity (1) that has all the attributes of an investment company or (2) for
which it is industry practice to apply measurement principles for financial
reporting purposes that are consistent with those followed by investment
companies. The deferral does not apply in situations in which a reporting entity
has the explicit or implicit obligation to fund losses of an entity that could
potentially be significant to the entity. The deferral also does not apply to
interests in securitization entities, asset-backed financing entities, or
entities formerly considered qualifying special purpose entities. In addition,
the deferral applies to a reporting entitys interest in an entity that is
required to comply or operate in accordance with requirements similar to those
in Rule 2a-7 of the Investment Company Act of 1940 for registered money market
funds. An entity that qualifies for the deferral will continue to be assessed
under the overall guidance on the consolidation of variable interest entities in
Subtopic 810-10 (before the Statement 167 amendments) or other applicable
consolidation guidance, such as the guidance for the consolidation of
partnerships in Subtopic 810-20. The amendments in this Update also clarify that
for entities that do not qualify for the deferral, related parties should be
considered when evaluating each of the criteria in paragraph 810-10-55-37, as
amended by Statement 167, for determining whether a decision maker or service
provider fee represents a variable interest. In addition, the requirements for
evaluating whether a decision makers or service providers fee is a variable
interest are modified to clarify the Boards intention that a quantitative
calculation should not be the sole basis for this evaluation. ASU 2010-10 is
effective as of the beginning of a reporting entitys first annual period that
begins after November 15, 2009, and for interim periods within that first annual
reporting period. The Company does not expect the standard to have any impact on
the Companys consolidated financial position.

In February 2010, FASB issued ASU
2010-9 Subsequent Events (Topic 855) Amendments to Certain Recognition and
Disclosure Requirements ("ASU 2010-9"). ASU 2010-9 amends disclosure
requirements within Subtopic 855-10. An entity that is an SEC filer is not
required to disclose the date through which subsequent events have been
evaluated. This change alleviates potential conflicts between Subtopic 855-10
and the SEC's requirements. ASU 2010-9 is effective for interim and annual
periods ending after June 15, 2010. The Company does not expect the standard to
have any impact on the Companys consolidated financial position.

F-5

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CHINA SHESAYS MEDICAL COSMETOLOGY INC.AND
SUBSIDIARIES (fka SN Strategies Corp.)

Notes to the Condensed ConsolidatedFINANCIAL
STATEMENTS 
(UNAUDITED)

In December 2009, FASB issued ASU
2009-17 Consolidations (Topic 810) Improvements to Financial Reporting by
Enterprises Involved with Variable Interest Entities ("ASU 2009-17"). ASU
2009-17 amends the FASB ASC for the issuance of FASB Statement No. 167,
Amendments to FASB Interpretation No. 46(R) . The amendments in ASU 2009-17
replace the quantitative-based risks and rewards calculation for determining
which enterprise, if any, has a controlling financial interest in a variable
interest entity with an approach focused on identifying which enterprise has the
power to direct the activities of a variable interest entity that most
significantly impact the entity's economic performance and (1) the obligation to
absorb losses of the entity or (2) the right to receive benefits from the
entity. ASU 2009-17 also requires additional disclosures about an enterprise's
involvement in variable interest entities. ASU 2009-17 is effective as of the
beginning of each reporting entity's first annual reporting period that begins
after November 15, 2009. The Company does not expect the standard to have any
impact on the Companys consolidated financial position and results of
operations except that additional disclosures will be made in the consolidated
financial statements.

In October 2009, the FASB issued ASU
2009-13, Multiple-Deliverable Revenue Arrangements, now codified under FASB
ASC Topic 605, Revenue Recognition, (ASU 2009-13). ASU 2009-13 requires
entities to allocate revenue in an arrangement using estimated selling prices of
the delivered goods and services based on a selling price hierarchy. The
amendments eliminate the residual method of revenue allocation and require
revenue to be allocated using the relative selling price method. ASU 2009-13
should be applied on a prospective basis for revenue arrangements entered into
or materially modified in fiscal years beginning on or after June 15, 2010, with
early adoption permitted. The Company does not expect the standard to have any
impact on the Companys consolidated financial position.

NOTE 6 DEPOSITS PAID FOR ACQUIRING PROPERTY AND EQUIPMENT

Purchases of these equipments are due
to the set up of three subsidiaries for expansion of business in other parts of
Sichuan Province and these equipments will be contributed to the registered
capital of the subsidiaries in lieu of cash. Also included in these deposits is
an amount of $1,471,444 representing deposits paid for the subsidiaries which
are still in the process of incorporation.

NOTE 7 OTHER ASSETS

This represents contributions to the
registered capital of the subsidiaries which are still in the process of
incorporation (See Note 6).

NOTE 8 NOTES PAYABLE

Notes payable consisted of the
following:

June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)Note payable to a bank, unsecured, interest
      rate of        10.59% per annum, due
      July 2010
    $
    6,120
    
    $
    42,659Note payable to a bank, interest rate of
      4.87% per        annum, guaranteed
      by a third party, due February 2011
    
    881,238
    
    
    -$
    887,358
    
    $
    42,659


Interest expense paid for the three and
six months ended June 30, 2010 and 2009 were $15,042, $0, $21,606 and $0
respectively.

The guarantee provided by the third
party is secured by the buildings of the Company with net book value totaling
$98,803 as of June 30, 2010. Fees paid to a third party guarantor for the three
and six months ended June 30, 2010 and 2009 was $0, $0, $17,554 and $0
respectively.

F-6

---

CHINA SHESAYS MEDICAL COSMETOLOGY INC.AND
SUBSIDIARIES (fka SN Strategies Corp.)

Notes to the Condensed ConsolidatedFINANCIAL
STATEMENTS 
(UNAUDITED)

NOTE 9 INCOME TAX

The Company is subject to income taxes
on an entity basis on income arising in or derived from the tax jurisdiction in
which each entity is domiciled.

China Shesays was incorporated in the
United States and has incurred operating loss as for income tax purposes for the
six months ended June 30, 2010 and 2009. As of June 30, 2010, China Shesays had
federal and state net operating loss carryforwards of approximately $177,000
which can be used to offset future federal income tax. The federal and state net
operating loss carryforwards expire at various dates through 2030. Deferred tax
assets resulting from the net operating losses are reduced by a valuation
allowance, when, in the opinion of management, utilization is not reasonably
assured.

Perfect Support was incorporated in the
BVI and under current laws of the BVI, income earned is not subject to income
tax.

Chengdu Boan and Sichuan Shesays were
incorporated in the PRC and is subject to PRC income tax which is computed
according to the relevant laws and regulations in the PRC. The applicable tax
rate is 25%.

In 2009, Sichuan Shesays elected to
have its net income for income tax purposes assessed at 10% of its service
revenue and the election was approved by the local tax bureau, income tax was
therefore calculated by 10% of services revenue with the applicable tax
rate.

From 2010 onwards, Sichuan Shesayss
income tax will be assessed at the applicable tax rate of 25% on its net
income.

The income tax expenses for the six
months ended 2010 and 2009 are summarized as follows:

(Unaudited)For the six month ended2010
      
      
      2009Current
      $
      512,073
      
      $
      111,659


A reconciliation of the provision for
income taxes compared with the amount at the federal statutory income rates was
as follows:

(Unaudited)For the six months ended2010
      
      
      2009Federal and state tax rate at 34% on net
        income
      $
      671,788
      
      $
      547,148Foreign tax differential
      
      (178,534
      )
      
      (144,833
      )Tax reduction
      
      -
      
      
      (291,884
      )Tax effect on expenses non deductible for tax purpose
      
      2,675
      
      
      -Other adjustments
      
      16,144
      
      
      1,228Total income tax expenses
      $
      512,073
      
      $
      111,659


NOTE 10 STOCKHOLDERS EQUITY

Common stock

On June 6, 2010, the Company issued
13,500,012 shares of common stock in reverse merger for the recapitalization of
Perfect Support and re-organization of China Shesays.

F-7

---

CHINA SHESAYS MEDICAL COSMETOLOGY INC.AND
SUBSIDIARIES (fka SN Strategies Corp.)

Notes to the Condensed ConsolidatedFINANCIAL
STATEMENTS 
(UNAUDITED)

NOTE 11 COMMITMENTS AND CONTINGENCIES

| | (a) | Capital commitments                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                      
| |     | As of June 30, 2010 and December 31, 2009, the Company
      had commitments for capital expenditures on acquisition of property and
      equipment amounting to approximately $1,009,900 and $899,000 respectively.
| |     |                                                                                                                                                                                                                      
| | (b) | Rental leases commitment                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                      
| |     | The Company leases clinic spaces and staff quarters from
      third parties under fifty-one operating leases which expire between August
      29, 2010 and January 1, 2020.                                        
| |     |                                                                                                                                                                                                                      
| |     | As of June 30, 2010, the Company has outstanding
      commitments with respect to the above operating leases, which are due as
      follows:                                                                       

| | For the fiscal years ending June 30 |   |           | 
| | ----------------------------------- | - | --------- | 
| | 2011                                | $ | 453,127   | 
| | 2012                                |   | 1,628,731 | 
| | 2013                                |   | 1,618,097 | 
| | 2014                                |   | 1,600,835 | 
| | 2015                                |   | 1,561,051 | 
| | Thereafter                          |   | 1,027,722 | 
| | Total                               | $ | 7,889,563 | 

NOTE 12 RELATED PARTY TRANSACTIONS

As of June 30, 2010 and December 31,
2009, the Company owed $0 and $20,555 respectively to a related company on an
unsecured basis, repayable on demand and interest free. Imputed interest was
charged at 5% per annum on the amounts owed to the related company.

During the three and six months ended
June 30, 2010 and 2009, total imputed interest expenses recorded as additional
paid-in capital amounted to $0, $257, $247 and $514 respectively.

As of June 30, 2010 and December 31,
2009, the stockholders owed the Company $52,821 and $0 respectively which are
unsecured, interest free and repayable on demand. These amounts were advanced
prior to the reverse merger.

NOTE 13 CONCENTRATIONS AND RISKS

As of June 30, 2010 and 31 December
2009, 100% of the Companys assets were located in the PRC and Hong Kong and
100% of the Companys revenues were derived from customers located in the
PRC.

The Company relied on three suppliers
and purchases from these suppliers for the six months ended June 30, 2010 and
2009 were as follows:

Supplier A
    Supplier B
    Supplier CFor the six months endedJune 30, 2010
    12%
    13%
    19%June 30, 2009
    16%
    12%
    -


As of June 30, 2010, the total amount
owed to those suppliers was $203,546.

No single customer accounted for more
than 10% of the service revenue for the three and six months ended June 30, 2010
and 2009

F-8

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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements:

The following discussion of the financial condition and
results of operations should be read in conjunction with the consolidated
financial statements and related notes thereto. The following discussion
contains forward-looking statements. China SHESAYS Medical Cosmetology Inc. is
referred to herein as we or our. The words or phrases would be, will
allow, expect to, intends to, will likely result, are expected to,
will continue, is anticipated, estimate, or similar expressions, are
intended to identify forward-looking statements. Such statements include those
concerning our expected financial performance, our corporate strategy and
operational plans. Actual results could differ materially from those projected
in the forward-looking statements as a result of a number of risks and
uncertainties, including: (a) those risks and uncertainties related to general
economic conditions in China, including regulatory factors that may affect such
economic conditions; (b) whether we are able to manage our planned growth
efficiently and operate profitable operations, including whether our management
will be able to identify, hire, train, retain, motivate and manage required
personnel or that management will be able to successfully manage and exploit
existing and potential market opportunities; (c) whether we are able to generate
sufficient revenues or obtain financing to sustain and grow our operations; and
(d) whether we are able to successfully fulfill our primary requirements for
cash, which are explained below under Liquidity and Capital Resources. Unless
otherwise required by applicable law, we do not undertake, and we specifically
disclaim any obligation, to update any forward-looking statements to reflect
occurrences, developments, unanticipated events or circumstances after the date
of such statements.

Conventions

In this Form 10-Q, unless indicated otherwise, references to:

- Securities Act refers to
  the Securities Act of 1933, as amended, and Exchange Act refer to
  Securities Exchange Act of 1934, as amended;
- China and PRC
  refer to the People's Republic of China,
- RMB refers to Renminbi,
  the legal currency of China; and
- U.S. dollar, $
  and US$ refers to the legal currency of the United States. For all
  U.S. dollar amounts reported, the dollar amount has been calculated on the basis
  that $1 = RMB6.8372 for its December 31, 2009 audited balance sheet, and $1
  = RMB6.8086 for its June 30, 2010 unaudited balance sheet, which were determined
  based on the currency conversion rate at the end of each respective period.
  The conversion rates of $1 = RMB6.83474 is used for the condensed consolidated
  statement of operations and comprehensive income and consolidated statement of cash
  flows for the second quarter of fiscal 2010, and $1= RMB6.84323 is used for
  the condensed combined statement of operations and comprehensive income and combined
  statement of cash flows for the second quarter of fiscal 2009; both of which
  were based on the average currency conversion rate for each respective quarterly
  period.

Overview of Company

Sichuan
SHESAYS Cosmetology Hospital Co., Ltd. (SHESAYS) was established in May 2005
with the registered capital of approximately US $1 million. Over the past five
years, we have become one of the fastest growing cosmetology businesses in China
and one of the most well-known cosmetology hospital chains in Sichuan province. Currently, the headquarters of SHESAYS has
188 employees, occupying the business area of approximately 43.056 square feet
and receiving more than 20,000 patients each year.

Under
the direct regulation of Health Department of Sichuan Province, SHESAYS is a
specialized cosmetology hospital integrating medical treatment and teaching,
which is jointly founded by prestigious Chinese plastic surgery experts,
cosmetic dermatologists, cosmetic dental specialists and beauty experts in
Chinese medicine under the support of Medical Aesthetics and Cosmetology Society
of Chinese Medical Association, Society of Aesthetic and Plastic Surgeons of
Chinese Medical Doctor Association, Medical Cosmetology Commission of Chinese
Association of the Integration of Traditional and Western Medicine, as well as
Chinese Medical Association, Sichuan Branch. At present, we have core clinical
departments and rooms such as cosmetic surgery, cosmetic dermatology, cosmetic
dentistry, cosmetic Traditional Chinese Medicine (TCM). Services include
cosmetic plastic surgery, skin care, oral beauty and cosmetic TCM.

Headquartered
in Chengdu, Sichuan province, P.R. China, SHESAYS aims to expand its business
outside of Sichuan province. SHESAYS founded three new outpatient department
branches in Yibin, Leshan and Zigong City, Sichuan province respectively, and is
planning to set up in Chengdu the second flagship store consisting of a
comprehensive cosmetology hospital.

During
the fiscal year ended December 31, 2009, we generated revenues of $8,834,673 and
achieved a net income attributable to SHESAYS of US $1,766,442, which represents
a growth of 98% and 27,517% respectively compared to the previous fiscal year.
This increase is attributed to our increased and expanded sale to the existing
and new customers in 2009. Our sales network has been expanded quickly and our
client base has been enlarged tremendously. During the six months ended June 30,
2010 we had revenues of $6,012,675 as compared to revenues of $4,417,250 during the six
months ended June 30, 2009, an increase of $1,595,425, or 36%, and we had net
income attributable to SHESAYS in the amount of $1,463,774 for the six months
ended June 30, 2010, as compared with $1,485,095 during the six months ended
June 30, 2009.

1

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Corporate History & Background

China
SHESAYS Medical Cosmetology Inc. (the Company), formerly known as SN
Strategies Corp., was incorporated under the laws of the State of Nevada on
January 18, 2002 under the original name Klean Kast Solutions, Inc. On April
22, 2007, the Company filed amended and restated articles and changed its name
to SN Strategies Corp.

We
were previously a development stage company under the provisions of Accounting
Standards Codification (ASC) 915 Development Stage Entities. For the
three months ended March 31, 2010, the Company produced only minimal revenues
and will continue to report as a development stage company until significant
revenues are produced.

Perfect Support
Limited ("Perfect Support") was incorporated in the British Virgin Islands ("BVI")
on January 15, 2010 as an investment holding company. Through its wholly owned
subsidiary, Chengdu Boan Investment Management Co., Limited ("Chengdu Boan"),
the Company is principally engaged in providing consultancy services on medical
beauty services, cosmetic surgery services and cosmetic dentistry services in
the Peoples Republic of China ("PRC"). Chengdu Boan was incorporated in the PRC
as a wholly-owned foreign enterprise on April 27, 2010. In accordance with the
business permit, Chengdu Boans right of operation expires on April 27, 2040 and
is renewable on expiry.

Sichuan Shesays was
incorporated in the PRC on May 30, 2005 as a limited liability company. Sichuan
Shesays is a clinic for providing professional medical beauty services, cosmetic
surgery services and cosmetic dentistry services to customers in PRC. In
accordance with its business permit, the Companys right of operation expires on
May 30, 2025.

On April 27, 2010,
Chengdu Boan entered into a series of agreements (collectively known as the
Restructuring Agreements) with Sichuan Shesays and the stockholders of Sichuan
Shesays in which Chengdu Boan assumed the management of the business activities
of Sichuan Shesays, making Sichuan Shesays a contractually controlled affiliate
under ASC Topic 810 "Consolidation" (formerly EITF 97-2). As both companies were
under common control before and after the consummation of the Restructuring
Agreements on April 27, 2010, the restructure was accounted for as a
reorganization of entities under common control and the consolidated financial
statements were prepared as if the reorganization occurred at the beginning of
the first period presented.

On June 6, 2010, SN
Strategies Corp., the Parent, China Shesays Medical Cosmetology Inc., the Merger
Sub, a Nevada corporation, wholly owned by the Parent and incorporated on May
20, 2010, Perfect Support, known as the Acquired Sub, and the stockholders of
the Acquired Sub, entered into an Agreement and Plan of Merger pursuant to which
the Merger Sub agreed to acquire 100% of the common stocks of Acquired Sub. In
connection with the merger, the Merger Sub issued to the stockholders of
Acquired Sub 10 shares for all outstanding shares of the Acquired Subs common
stock. The 10 shares of common stock of the Merger Sub were subsequently
converted to 13,500,012 shares of common stock of the Parent Company.

Subject to and in
conjunction with the closing of the Merger and immediately after the closing of
the Merger, Techno Meg Limited, a British Virgin Islands company (the "Techno"),
which Techno is a majority shareholder of Perfect Support, signed a stock
purchase agreement (the "Techno Stock Purchase Agreement") with certain
shareholders of the Company indicated in the Techno Stock Purchase Agreement
pursuant to which the forgoing mentioned shareholders of the Company sold
3,384,000 shares of Companys common stock to Techno for US$140,000 (the "Techno
Consideration") and Techno purchased the 3,384,000 shares of Companys common
stock from such shareholders; and Leading Pioneer Limited, a British Virgin
Islands company (the "Pioneer"), which Pioneer is a minority shareholder of
Perfect Support, signed a stock purchase agreement (the "Pioneer Stock Purchase
Agreement", together with the Techno Stock Purchase Agreement, the "Purchase
Agreements") with certain shareholders of the Company indicated in the Pioneer
Stock Purchase Agreement pursuant to which the forgoing mentioned shareholders
of the Company sold 846,000 shares of Companys common stock to the Pioneer for
US$35,000 (the "Pioneer Consideration," together with the Techno Consideration,
the "Cash Consideration") and Pioneer purchased 846,000 shares of Companys
common stock from such shareholders. The transactions contemplated by the
Purchase Agreements are hereinafter referred to the "Purchase", which closing of
the Purchase was subject to and in conjunction with and occurred immediately
after the closing of the Merger.

Upon
the completion of the Merger and the Purchase, which closing of the Purchase was
subject to and in conjunction with and occurred immediately after the closing of
the Merger, the stockholders of Perfect Support and their designees shall own
approximately 98.5% common stocks of the Company.

Immediately
after the closing of the Merger, the Company transferred of all its business and
assets that it holds prior to the closing of the Merger into Cake Ventures LLC,
a California limited liability company (the Cake), and Cake assumed all
existing liabilities of the Company prior to the effective time of the Merger
and agreed to perform all duties and obligations of the Company arising under
all of Companys liabilities, including, but not limited to, all outstanding
promissory notes payable to the order of Cake.

All
officers of the Company before the Merger, including Michael Hawks, the
Companys President, Secretary, Treasurer and CFO, resigned upon the
effectiveness of the Merger. Mr. Yixiang Zhang was elected as the Chairman and
Chief Executive Officer of the Company, Mr. Wenhui Shao, as the President, Ms.
Wenbin Zhu, as the Chief Financial Officer, and Mr. Xingwang Pu, as the Chief
Technology Officer.

Mr.
Yixiang Zhang, Chairman and Chief Executive Officer of SHESAYS, was elected to
serve on our Board of Directors as Chairman of the Board of the Company. Mr.
Michael Hawks, was the sole director prior to the Merger, remained to be a
director of the Company. Effective July 19, 2010, Michael Hawks resigned from
the board of directors. The resignation was not the result of any disagreement
with us on any matter relating to our policies, practices or procedures.

Wenbin
Zhu was appointed as Chief Financial Officer of the Company.

2

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As
part of the Merger, the Companys name was changed from SN Strategies Corp. to
the Merger Subs name China SHESAYS Medical Cosmetology Inc. The Company is
communicating with FINRA for the name change and trading symbol change on the
OTC Bulletin Board.

As
a result of these transactions, persons affiliated with SHESAYS now own
securities that in the aggregate represent approximately 98.5% of the equity in
the Company.

Corporate Structure and Contractual Arrangements

Substantially all of our
operations are conducted in China through Chengdu BOAN, our wholly-owned
subsidiary in China, and through our contractual arrangements with several of
our consolidated affiliated entities in China, including SHESAYS and its
branches.

PRC
regulations require any foreign entities that invest directly in the medical
services industry to have direct operations in the medical industry outside of
China. No foreign entity is allowed in China to set up a wholly-owned medical
institute, however a foreign entity is permitted to set up a joint venture
medical institute with Chinese entities. Foreign investors are permitted to hold
shares of the joint venture medical institute at maximum of 70%.

We
do not currently directly operate medical services outside of China and cannot
qualify under PRC regulations. Since we have not been involved in the direct
operation of medical services business outside of China, our domestic PRC
subsidiary, BOAN, which is considered foreign-invested, is currently ineligible
to apply for the required medical services licenses in China. Our medical
services business is currently provided through contractual arrangements with
our consolidated affiliated entities in China, including SHESAYS and its
branches. SHESAYS is owned by 5 PRC citizens. SHESAYS and several of its
branches hold the requisite licenses to provide medical services in China.

SHESAYS
and its branches directly operate our cosmetology hospitals. We expect to
continue to depend on SHESAYS and its branches to operate our medical services
until we qualify for direct ownership of a medical business in China under PRC
laws and regulations and acquire SHESAYS and its branches as our direct,
wholly-owned subsidiaries, as described below. BOAN has entered into contractual
arrangements with SHESAYS and shareholders, pursuant to which, we are able to
exert effective control over SHESAYS and its subsidiaries; a substantial portion
of the economic benefits of SHESAYS and its subsidiaries will be transferred to
us; and BOAN or its designee has an exclusive option to purchase all or part of
the equity interests in SHESAYS, all or part of the equity interests in
SHESAYSs subsidiaries that are owned by SHESAYS or its nominee holders, or all
or part of the assets of SHESAYS, in each case when and to the extent permitted
by PRC law.

In
connection with its entry into the World Trade Organization, China is required
to relax restrictions on foreign investment in the medical industry in China. We
do not currently know how or when we will be able to qualify under these
regulations. Even if we do qualify in the future, it may be burdensome or not
cost effective for us to meet the required criteria for direct ownership. If and
when we qualify for direct ownership, we intend to explore the commercial
feasibility of changing our current structure, including possibly direct
ownership of SHESAYS and its subsidiaries, taking into consideration of relevant
cost, market, competitive and other factors. In the event we take such steps, we
cannot assure you that we will be able to identify or acquire a qualified
foreign company for a possible future restructuring or any restructuring we may
undertake to facilitate direct ownership will be successful.

**Agreements
that Transfer Economic Benefits to Us**

Pursuant
to our contractual arrangements with SHESAYS and its subsidiaries, BOAN provides
management and consulting services to SHESAYS and its subsidiaries in exchange
for service fees. The service fees shall equal to 100% of the residual return of
SHESAYS and its subsidiaries which can be waived by BOAN from time to time in
its sole discretion.

**Agreements
that Provide Effective Control over Sichuan SHESAYS and its future
Subsidiaries**

We
have entered into the following agreements with SHESAYS and its subsidiaries
that provide us with effective control over SHESAYS and its subsidiaries:

(i)     
an exclusive service agreement, pursuant to which SHESAYS and its subsidiaries
irrevocably entrust to BOAN the right of management and operation of SHESAYS and
its subsidiaries and the responsibilities and authorities of their shareholders
and directors of SHESAYS and its subsidiaries;

(ii)     
a voting rights proxy agreement, pursuant to which the shareholder of SHESAYS
and its subsidiaries have granted the personnel designated by BOAN the right to
appoint directors and senior management of SHESAYS and its subsidiaries and to
exercise all of their other voting rights as shareholders of SHESAYS and its
subsidiaries, as the case may be, as provided under the articles of association
of each such entity;

(iii)     
a call option agreement, pursuant to which:

(a)      neither
SHESAYS nor any of its subsidiaries may enter into any transaction that could
materially affect its assets, liabilities, equity or operations without the
prior written consent of BOAN;

3

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(b)     
neither SHESAYS nor any of its subsidiaries will distribute any dividends
without the prior written consent of BOAN and

(c)      BOAN
or its designee has an exclusive option to purchase all or part of the equity
interests in SHESAYS, all or part of the equity interests in SHESAYS
subsidiaries owned by SHESAYS or its nominee holders, or all or part of the
assets of SHESAYS, in each case when and to the extent permitted by PRC law. In
case of BOAN exercising the call option in its sole discretion upon the
occurrence of the situation in which such call option exercise become feasible
under the relevant laws in PRC, any additional consideration paid other than the
$1.00 which may be required under the laws of China to effect such purchase to
comply with such legal formalities shall be either cancelled or returned to
SHESAYS immediately with no additional compensation to the owners; and

(d)     
an equity pledge agreement pursuant to which each of shareholders of SHESAYS has
pledged his or her equity interest in SHESAYS and its subsidiaries, as the case
may be, to BOAN to secure their obligations under the relevant contractual
control agreements, including but not limited to, the obligations of SHESAYS and
its subsidiaries under the exclusive services agreement, the call option
agreement, the voting rights proxy agreement described above, and each of them
has agreed not to transfer, sell, pledge, dispose of or create any encumbrance
on their equity interest in SHESAYS or its subsidiaries without the prior
written consent of BOAN.

Intellectual Property

We registered two trademarks at the State
Administration for Industry and Commerce of China, namely, SHESAYS and Junge.
SHESAYS will appear as the
core brand, while the SHESAYS Junge will appear in the level-I cosmetic medical
outpatient departments or clinics in the third-level service model of SHESAYS.

The
domain name of our official website, xichan.cn, is authorized by China
Internet Network Information Center (CNNIC).

Marketing

We
market our cosmetology services directly to the customers. Our marketing
strategy consists of the following five sub-strategies: promotion system,
advertisement, network marketing, three-level cosmetic service model and member
management system.

Promotion System

We
have been always seeking for complete promotion system and continuous promotion
innovation, mainly including:

- Rich promotion: team procurement, order, discount and coupons;
- Topic promotion: team procurement of depilation, spot-removing and
  teeth-whitening products which lead to new direction of the cosmetic
  hospitals;
- Diverse promotion time on special days and for special groups: A.
  Large-scale promotion on festivals: on New Years Day, Labors Day, National
  Day and winter and summer holidays. B. Large-scale marketing activities
  for promotion.

Advertisement

According
to analysis, we find out the life track and habit of the females from 20 to 35
years old with the media so as to provide accurate service for the above
mentioned female customers. We publish advertisements on different media to
witness the effect. In terms of advertisements, we follow the following
principles:

- Combination of traditional media and interaction media;
- Establishing brand image by integrating main media, spreads brand
  connotation by soft information and imbedded advertisements, and realizing
  accurate contact by media.
- Increasing input in high-end media to obtain new customers from advanced
  segment markets.

Network Marketing

Our
network marketing is also one of the important components in terms of our brand
strategy and plays a vital role in our brand construction. With our official
network (www.xichan.cn) as the carrier, we
realize internet experience marketing and consultation marketing.

- Internet experience marketing: It mainly promotes its characteristic
  projects, experts, special equipment and hospital information by words,
  figures, media, service show, brand construction and space etc so that the
  mass network friends can know of the departments and projects of the hospital.
  In addition, we enable the net friends to experience marketing process through
  sense-feeling-action-thought-connection.
- Network interaction marketing: we apply advanced network marketing
  strategy and professional network marketing technology. The network friends
  and consultants can communicate with each other through multiple real-time
  communication tools. On each page, you may see the
friendly hint from the consultants. They can communicate through words, video
and audio and all doubts will be given a satisfactory reply. Timely
communication establishes a good brand for the hospital.

4

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**Three-level
Cosmetic Service Model of SHESAYS**

Three-level
service model is a component of our marketing strategy. Through this model, we
provide advanced medical cosmetic service by our flagship shops and chain shops.
The flagship shops provide comprehensive plastic surgery service, especially
large operation projects, while the chain shops, in the forms of secondary
clinics and tertiary skin care center, focus on simple cosmetic operations,
laser skin beauty projects, and large plastic surgery related consultation, as
well as post-service centers.

Such a
chain model results in more sales centers and supports more sales networks by
multiple channels to establish and improve marketing network in secondary
market.

**Member
Management System**

According
to the three-level cosmetic service model, we establish cosmetic clinics and
skin care centers in cities of all levels. The skincare centers will witness
effect of kinds of brand promotion activities of SHESAYS to provide member
database for primary comprehensive cosmetic hospitals and secondary cosmetic
clinics as well as function as database maintenance and customer service.

Competition

We
compete with some of the largest cosmetology hospitals such as Huamei Zixin
Medical Cosmetology Hospital, Chengdu Dahua Medical Plastic Hospital in
southwest China. We compete for plastic surgery clients primarily on the basis
of network size and coverage, location, price, technique level, the range and
the quality of services that we offer and our brand name.

We
also compete for such business as esthetic dentistry, gynecology/male plastic
surgery with private dental clinics and cosmetology departments in regular
public hospitals.

Employees

We
have 188 full-time employees as of June 30, 2010, including 76 in
administration, finance and other supporting departments, and 112 in medical
service business departments.

Types of employees
      Junior college or lower education
        received
      Junior college education
      Regular college education
      Master
      Doctor
      TotalNumber 
        of 
        persons
      Proportion
      Number 
        of 
        persons
      Proportion
      Number 
        of 
        persons
      Proportion
      Number 
        of 
        persons
      Proportion
      Number 
        of 
        persons
      ProportionAdministration and back office
        personnel
      23
      30%
      30
      39%
      20
      26%
      1
      1%
      2
      3%
      76Medical services
      29
      26%
      31
      28%
      32
      29%
      11
      10%
      9
      8%
      112Total
      52
      28%
      61
      32%
      52
      28%
      12
      6%
      11
      6%
      188


Properties

Properties in the
headquarter

Our headquarter hospital and principal executive offices are
located at No. 83 (new), Xinnan Road, Wuhou District, Chengdu City, Sichuan
Province, P.R. China, 610041. The first and second floor of this building consist
of approximately 1,024.21 sq. meters which we leased from Sichuan Yanhua-Zhixin Industrial Group Co.
Ltd.,
for approximately US $139,524 a year on average. The lease term will end in year
2018. The remaining floors of the building consist of approximately 2,290 sq. meters
which we leased from 30 home owners and 60.43 sq. meters self owned property.

5

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Properties in new flagship
shop

Our new flagship shop (hospital) is located at No. 28, Chuangye
Road, Hi-tech Zone, Chengdu City, Sichuan Province, P.R. China. The building
consists of approximately 18,141 sq. meters which we leased from Sichuan Enwei
Investment Group Co. ltd., for approximately US $1,301,494 per year. The lease
term will end in year 2016.

Properties in other
cities

Address
    Area sq. meter
    Lease TermLeshan City
    860.60
    March 2010February 2015Zigong City
    1292.41
    April 2010March 2015Six properties in Cuiping District, Yibin City
    822.31
    March 2010April 2015


Results of Operations

Three Months Ended June 30, 2010, Compared to the Three
Months Ended June 30, 2009:

Three months ended June 30,
      
      
      $
      
      
      %2010
      
      
      2009
      
      
      Change
      
      
      ChangeRevenue
      $
      2,764,750
      
      $
      2,254,482
      
      $
      510,268
      
      
      23%Cost of revenue
      
      807,148
      
      
      742,104
      
      
      65,044
      
      
      9%Gross profit
      
      1,957,602
      
      
      1,512,378
      
      
      445,224
      
      
      29%Operation expenses
      
      1,484,499
      
      
      921,031
      
      
      563,468
      
      
      61%Interest and financing costs, net
      
      14,015
      
      
      (700
      )
      
      14,715
      
      
      2102%Other income (expense)
      
      22,025
      
      
      (25,024
      )
      
      47,049
      
      
      188%Foreign exchange gain (loss)
      
      15,577
      
      
      (469
      )
      
      16,046
      
      
      3421%Income tax expense
      
      106,953
      
      
      57,841
      
      
      49,112
      
      
      85%Net income
      
      345,687
      
      
      558,761
      
      
      (213,074
      )
      
      -38%


Revenues

Our revenue for the three months ended June 30, 2010 was
$2,764,750, an increase of $510,268 or 22.63% from $2,254,482 for the three
months ended June 30, 2009. The increase was a result of our increased and
expanded sale to the existing and new customers in the first half of 2010.

Cost of Revenue

Our cost of revenue for the three months ended June 30, 2010
was $807,148, increased by $65,044 or 8.76% from $742,104 for the three months
ended June 30, 2009. The increased cost of revenue in 2010 was due to the
increase in sales. Due to scale economy effect and our effort to increasing the
operation efficiency, our revenue for the three months ended June 30, 2010
increased 22.63% while the cost of revenue only increased 8.76% .

6

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Gross Profit

Our gross margin for the three months ended June 30, 2010, was
71% compared to 67% for the same period in 2009. The increase in gross margin
for the three months ended June 30, 2010, compared to the same period in 2009,
was due to scale economy effect and our effort to increase the operation
efficiency. Our gross margin is much higher than that of other industries in
China because the medical cosmetology industry is still a young one in China as
more and more Chinese people can afford medical beauty consumption. Our gross
margin is also substantially higher than our competitors because of our
experienced management.

Operating Expenses

Selling, general and administrative expenses for the three
months ended June 30, 2010, increased by $110,052, from $588,276 for the three
months ended June 30, 2009, to $698,328 for the three months ended June 30,
2010. Professional and consultant fees for the three months ended June 30, 2010,
increased by $344,791 in comparison to the same period in 2009 due to expense
incurred by the reverse merger transaction closed on June 7, 2010. Advertising
costs for the three months ended June 30, 2010 was $384,344, as compared with
$286,869, during the three months ended June 30, 2009. The above together
explain why total operating expenses for the three months ended June 30, 2010
increased by 61.18% or $563,468 from $921,031 for the three months ended June
30, 2009, to $1,484,499 for the three months ended June 30, 2010.

Interest expense

There was no interest expenses for the three months ended June
30, 2009 and $15,042 was incurred for the three month ended June 30, 2010. The increased
interest expense resulted from the sizable increase in our loans during the
first quarter 2010.

Net Income attributable to the Company

As a result of the factors described above, we had net income
attributable to the Companyin the amount of $330,110 for the
three months ended June 30, 2010, as compared with $559,230 for the three
months ended June 30, 2009. The decrease in net income was mainly attributed to
increase of expense incurred by the reverse merger transaction closed on June 7,
2010.

Comprehensive Income

Our business operates primarily in Chinese Renminbi (RMB),
but we report our results in U.S. Dollars. The conversion of our accounts from
RMB to U.S. Dollars results in translation adjustments. As a result of a
currency translation adjustment gain, our other comprehensive income was $15,577
for the three months ended June 30, 2010, as compared with $469 loss for the
three months ended June 30, 2009. The increase is due to currency exchange
fluctuation of Chinese RMB to US Dollar for the periods.

Six Months Ended June 30, 2010, Compared to the Six Months
Ended June 30, 2009:

Six months ended June 30,
      
      
      $
      
      
      %2010
      
      
      2009
      
      
      Change
      
      
      ChangeRevenue
      $
      6,012,675
      
      $
      4,417,250
      
      $
      1,595,425
      
      
      36%Cost of revenue
      
      1,539,606
      
      
      1,271,807
      
      
      267,799
      
      
      21%Gross profit
      
      4,473,069
      
      
      3,145,443
      
      
      1,327,626
      
      
      42%Operation expenses
      
      2,403,607
      
      
      1,568,229
      
      
      835,378
      
      
      53%Interest and financing costs, net
      
      19,016
      
      
      (907
      )
      
      19,923
      
      
      2197%Other income (expense)
      
      74,599
      
      
      (18,633
      )
      
      93,232
      
      
      500%foreign exchange gain (loss)
      
      15,976
      
      
      (271
      )
      
      16,247
      
      
      5995%Income tax expense
      
      512,073
      
      
      111,659
      
      
      400,414
      
      
      359%Net income
      
      1,479,750
      
      
      1,484,824
      
      
      (5,074
      )
      
      0%


Revenues

Our revenue for the six months ended June 30, 2010, increased
by $1,595,425 or 36.12% from $4,417,250 for the six months ended June 30, 2009,
to $6,012,675 for the six months ended June 30, 2010. The increase was a result
of our increased and expanded sale to the existing and new customers in the
first half of 2010.

Cost of Revenue

Our cost of revenue for the six months ended June 30, 2010,
increased by $267,799 or 21.06% from $1,271,807 for the six months ended June
30, 2009, to $1,539,606 for the six months ended June 30, 2010. The increased
cost of revenue in 2010 was due to the increase in sales.

7

---

Gross Profit

Our gross margin for the six months ended June 30, 2010, was
74.39% compared to 71.21% for the same period in 2009. The increase in gross
margin for the six months ended June 30, 2010, compared to the same period in
2009, was due to scale economy effect and our effort to increase the operation
efficiency. Our gross margin is much higher than that of other industries in
China because the medical cosmetology industry is still a young one in China as
more and more Chinese people can afford medical beauty consumption. Our gross
margin is also substantially higher than our competitors because of our
experienced management.

Operating Expenses

Selling, general and administrative expenses for the six months
ended June 30, 2010, increased by $193,068, from $1,068,841 for the six months
ended June 30, 2009, to $1,261,909 for the six months ended June 30, 2010.
Professional and consultant fees for the six months ended June 30, 2010,
increased by $333,635 in comparison to the same period in 2009 due to expense
incurred by the reverse merger transaction closed on June 7, 2010. Advertising
costs for the six months ended June 30, 2010 was $684,719, as compared with
$395,844 during the six months ended June 30, 2009. The above together explain
why total operating expenses for the six months ended June 30, 2010 increased by
53.27% or $835,378 from $1,568,229 for the six months ended June 30, 2009, to
$2,403,607 for the six months ended June 30, 2010.

Interest expense

There was no interest expenses for the six months ended June
30, 2009 and $21,606 was incurred for the six months ended June 30, 2010. The increased
interest expense resulted from the sizable increase in our loans during the
first quarter 2010.

Net Income

As a result of the factors described above, we had net income
in the amount of $1,463,774 for the six months ended June 30, 2010, as compared
with $1,485,095 for the six months ended June 30, 2009. The slight decrease
in net income was mainly attributed to increase of expense incurred by the
reverse merger transaction closed on June 7, 2010.

Comprehensive Income

Our business operates primarily in Chinese Renminbi (RMB),
but we report our results in U.S. Dollars. The conversion of our accounts from
RMB to U.S. Dollars results in translation adjustments. As a result of a
currency translation adjustment gain, our other comprehensive income was $15,976
for the six months ended June 30, 2010, as compared with $271 loss for the six
months ended June 30, 2009. The increase is due to currency exchange fluctuation
of Chinese RMB to US Dollar for the periods.

Off-Balance Sheet Arrangements

There were no off-balance sheet arrangements during the six
months ended June 30, 2010, that have, or are reasonably likely to have, a
current or future affect on our financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that
is material to our interests.

Liquidity and Capital Resources

As of June 30, 2010, we had cash and cash equivalents of
approximately $774,259. The following table sets forth a summary of our cash
flows for the periods indicated:

Six months endedJune 30,2010
      
      
      2009Consolidated
      
      
      CombinedCASH FLOWS FROM OPERATING ACTIVITIES
      $
      1,506,744
      
      $
      1,608,486CASH FLOWS USED IN INVESTING ACTIVITIES
      
      (2,978,051
      )
      
      (161,051
      )CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
      
      870,727
      
      
      (495,964
      )


8

---

Operating Activities

Cash provided by operating activities totaled $1,506,744 for
the six months ended June 30, 2010 as compared with $1,608,486 provided by
operating activities for the six months ended June 30, 2009.

Net cash provided by operating activities in the six months
ended June 30, 2010 was primarily attributable to the following factors: (i) net
income of approximately $1,463,774, (ii) an add-back of non-cash items, such as
approximately $232,822 in depreciation, (iii) an increase of $456,730 in income
tax payable, (iv) other current assets and prepaid expenses decreased our cash
by $771,729.

Net cash provided by operating activities in the six months
ended June 30, 2009 was primarily attributable to the following factors: (i) net
income of $1,485,095, (ii) an add-back of non-cash items, such as totally
$154,535 in depreciation and amortization, (iii) sales tax payable and other
taxes payable decreased our cash by $274,209.

Compared with the same period in 2009, the slight decrease in
net cash provided by operating activities was primarily due to the slight
decrease in net income.

Investing Activities

Cash used in investing activities was $2,978,051 for the six
months ended June 30, 2010 as compared to $161,051 used for the six months ended
June 30, 2009. Increase of cash used in investing activities is mainly because
we have invested heavily in purchasing properties and equipment related to our
newly established chain stores in Chengdu, Leshan, Yibin and Zigong city.

Financing Activities

Cash provided in financing activities was largely from a
bank loan of $877,868 made during the six months ended June 30, 2010. Cash used
in financing activities for the six months ended June 30, 2009 relate to
repayments of loans of $495,964 to stockholders and related companies.

Based on our current operating plan, we believe that our
existing resources, including cash generated from operations as well as the bank
loans, will be sufficient to meet our working capital requirement for our
current operations. In order to fully implement our business plan and continue
our growth, however, we will require additional capital either from our
stockholders or from outside sources.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET
RISK.

As a smaller reporting company, as defined by Item 10 of
Regulation S-K, the Company is not required to provide this information.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As of June 30, 2010, management of the Company, with the
participation of the Companys Chief Executive Officer, Chairman and Chief
Financial Officer evaluated the effectiveness of our disclosure controls and
procedures, as defined in Rule 13a-15(e) under the Exchange Act. Disclosure
controls and procedures are defined as the controls and other procedures of the
Company that are designed to ensure that information required to be disclosed by
the issuer in the reports that it files or submits under the Exchange Act are
recorded, processed, summarized and reported, within the time periods specified
in the SECs rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act are accumulated and communicated to the issuers
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure. Based on that evaluation, these
officers concluded that, as of June 30, 2010, our disclosure controls and
procedures were effective.

Changes in Internal Control Over Financial Reporting

During the three months ended June 30, 2010, there were no
changes in our internal control over financial reporting that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

Auditor Attestation

This quarterly report on Form 10-Q does not include an
attestation report of our registered independent public accounting firm
regarding management's assessment of our internal control over financial
reporting. Management's report was not subject to audit by our registered
independent public accounting firm pursuant to rules of the Securities and
Exchange Commission that permit us to provide only management's report in this
quarterly report.

9

---

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our Chief
Executive Officer and interim Chief Financial Officer with reasonable assurances
that our disclosure controls and procedures will achieve their objectives.
However, our management does not expect that our disclosure controls and
procedures or our internal control over financial reporting can or will prevent
all human error. A control system, no matter how well designed and implemented,
can provide only reasonable, not absolute, assurance that the objectives of the
control system are met. Furthermore, the design of a control system must reflect
the fact that there are internal resource constraints, and the benefit of
controls must be weighed relative to their corresponding costs. Because of the
limitations in all control systems, no evaluation of controls can provide
complete assurance that all control issues and instances of error, if any,
within our company are detected. These inherent limitations include the
realities that judgments in decision-making can be faulty, and that breakdowns
can occur due to human error or mistake. Additionally, controls, no matter how
well designed, could be circumvented by the individual acts of specific persons
within the organization. The design of any system of controls is also based in
part upon certain assumptions about the likelihood of future events, and there
can be no assurance that any design will succeed in achieving its stated
objectives under all potential future conditions.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits
and legal proceedings which arise in the ordinary course of business. We are
currently not a party to any legal proceeding and are not aware of any legal
claims that we believe will have a material adverse affect on our business,
financial condition or operating results.

ITEM 1A. RISK FACTORS.

Not applicable

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.

There have been no sales of unregistered securities within the
last three (3) years which would be required to be disclosed pursuant to Item
701 of Regulation S-K, except for the following:

From May to June 2007, we issued 925,000 shares of our common
stock to thirteen investors for $0.08 per share for gross proceeds of $74,000.
The shares were issued in a transaction which we believe satisfies the
requirements of that exemption from the registration and prospectus delivery
requirements of the Securities Act of 1933, which exemption is specified by the
provisions of Section 4(2) of that act and Rule 506 of Regulation D promulgated
pursuant to that act by the Securities and Exchange Commission.

On June 19, 2009, the holders of certain promissory notes
surrendered the notes and converted all unpaid principal and unpaid accrued
interest due under the notes into shares of our $.001 par value common stock as
provided in the notes. As of June 19, 2009, the total unpaid principal and
unpaid accrued interest due under the notes was approximately $43,272, which the
holders of the notes converted into 540,898 shares of common stock at a
conversion price of $0.08 per share. We issued the shares to the holders of the
notes in a transaction which we believe satisfies the conditions for the
exemption from registration and prospectus delivery requirements of the
Securities Act of 1933 (Act), which exemption is specified by the provisions
of Section 4(2) of that Act.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

There were no defaults upon senior securities during the
three-month period ended on June 30, 2010.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

(a) Exhibits

|31.1 | Certification
        of the CEO
|---- | --------------------------------
|     |                                 
|31.2 | Certification
        of the CFO

|     |                                                                                                                                                                  
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|32.1 | Certification
        of the CEO pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002, as filed herewith.
|     |                                                                                                                                                                  
|32.2 | Certification
        of the CFO pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002, as filed herewith.

10

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.

|                      | CHINA SHESAYS MEDICAL COSMETOLOGY INC.
|--------------------- | --------------------------------------
|                      |                                       
|Date: August 14, 2010 | By:
      /s/ Yixiang Zhang           
|                      | Yixiang Zhang                         
|                      | Chief Executive Officer and Chairman  
|                      |                                       
|Date: August 14, 2010 | By:
      /s/ Wenbin Zhu              
|                      | Wenbin Zhu                            
|                      | Chief Financial Officer               

---