# EDGAR Filing Document

**Accession Number:** 0001944946
**File Stem:** 0001104659-23-031205
**Filing Date:** 2023-3
**Character Count:** 806752
**Document Hash:** 8c371b29f416bf953b1df823e4882e24
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-031205.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001104659-23-031205

**CONFORMED SUBMISSION TYPE**: F-1/A

**PUBLIC DOCUMENT COUNT**: 38

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Blue-Touch Holdings Group Co., Ltd
- **CENTRAL INDEX KEY:** 0001944946
- **STANDARD INDUSTRIAL CLASSIFICATION:** SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-267699
- **FILM NUMBER:** 23724189

**BUSINESS ADDRESS:**
- **STREET 1:** NO.1 PENGDA ROAD
- **STREET 2:** HUNAN TOWN, CHANGLE DISTRICT
- **CITY:** FUZHOU CITY, FUJIAN PROVINCE
- **STATE:** F4
- **ZIP:** 350212
- **BUSINESS PHONE:** 86-183-5916-6777

**MAIL ADDRESS:**
- **STREET 1:** NO.1 PENGDA ROAD
- **STREET 2:** HUNAN TOWN, CHANGLE DISTRICT
- **CITY:** FUZHOU CITY, FUJIAN PROVINCE
- **STATE:** F4
- **ZIP:** 350212

**As filed with the U.S. Securities and Exchange Commission on March 10, 2023.**

 **Registration No. 333-267699**

**UNITED STATES**<br> **SECURITIES AND EXCHANGE COMMISSION**<br> **Washington, D.C. 20549**

 **AMENDMENT NO.1 <br> TO**

**FORM F-1<br> REGISTRATION STATEMENT<br> UNDER<br> THE SECURITIES ACT OF 1933**

**Blue-Touch Holdings Group Co., Ltd**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Cayman Islands** | **2840** | **Not Applicable** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**No.1 Pengda Road, Hunan Town, Changle District**

**Fuzhou City, Fujian Province**

**The People's Republic of China 350212<br> +86-183-5916-6777**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Cogency Global Inc. <br> 122 East 42nd Street, 18th Floor <br> New York, NY 10168<br> (212) 947-7200**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

***With a Copy to:***

---

| | |
|:---|:---|
| **Ying Li, Esq.**<br> **Lisa Forcht, Esq.**<br> **Hunter Taubman Fischer & Li LLC<br> 950 Third Avenue, 19th Floor** <br> **New York, NY 10022** <br> **212-530-2206** | **Laura Hua Luo Hemmann, Esq.**<br> **King & Wood Mallesons LLP** <br> **500 Fifth Avenue, 50th Floor**<br> **New York, NY 10110**<br> **212-319-4755** |

---

**Approximate date of commencement of proposed sale to the public:** Promptly after the effective date of this registration statement.

---

| | |
|:---|:---|
| If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. | ◻ |
| If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. | ◻ |
| If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering | ◻ |
| If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering | ◻ |
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 |  |
| Emerging growth company | ⌧ |
| If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act | ◻ |

---

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.**

The information in this prospectus is not complete and may be changed. We may not sell the securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting any offer to buy these securities in any jurisdiction where such offer or sale is not permitted.

**SUBJECT TO COMPLETION**

 **PRELIMINARY PROSPECTUS DATED [●], 2023**

***[●] Ordinary Shares***

![](tm2226747d2_f1asp1img001.jpg)

**Blue-Touch Holdings Group Co., Ltd**

This is an initial public offering of the ordinary shares of Blue-Touch Holdings Group Co., Ltd (the "Company"), a holding company incorporated in the Cayman Islands. The Company is offering on a firm commitment basis its ordinary shares, par value US$0.0005 per share ("Ordinary Shares"). Prior to the completion of this offering, there has been no public market for the Ordinary Shares. The offering is being made on a "firm commitment" basis by Univest Securities, LLC (the "Underwriter"). See "*Underwriting*." The Company expects the initial public offering price to be in the range of $[●] to $[●] per Ordinary Share. The Company has reserved the symbol "BBCH" for purposes of listing the Ordinary Shares on the Nasdaq Capital Market ("Nasdaq"). At this time, Nasdaq has not yet approved the Company's application to list the Ordinary Shares. It is a condition to the closing of this offering that the Ordinary Shares qualify for listing on Nasdaq. There is no assurance that the Ordinary Shares will be approved for listing on Nasdaq.

Unless otherwise stated, as used in this prospectus, the terms "Blue-Touch" and the "Company" refer to Blue-Touch Holdings Group Co., Ltd, an exempted company with limited liability incorporated under the laws of the Cayman Islands, and when describing Blue-Touch Holdings Group Co., Ltd's consolidated financial information, also include the Company's subsidiaries organized under the laws of the People's Republic of China (the "PRC"); the term "the WFOE" refers to Fujian Blue-Touch Holdings Group Co., Ltd., the Company's wholly owned direct subsidiary organized under the laws of the PRC; and the term "the operating entity" refers to Fujian Blue-Touch Technology Co., Ltd., the Company's wholly owned indirect subsidiary organized under the laws of the PRC.

**Investors are cautioned that the Ordinary Shares offered in this prospectus are shares of the Cayman Islands holding company, which has no material operations of its own and conducts substantially all of its operations through the operating entity in the PRC. Therefore, investors will not directly hold equity interests in any of the PRC subsidiaries. Our Company does not use a variable interest entity structure. Investors are** **also cautioned that our organizational structure involves risks and Chinese regulatory authorities could disallow our organizational structure, which would likely result in a material change in our operations and/or a material change in the value of the ordinary shares, and could cause the value of the ordinary shares to significantly decline or become worthless**. See "*Prospectus Summary—PRC-related Risk Disclosure*" beginning on page 4, and "*Risk Factors—Risks Related to Doing Business in the PRC*" beginning on page 17 for a discussion of risks facing our Company and the offering as a result of conducting substantially all of our operations through the operating entity in the PRC.

**Investing in the Ordinary Shares involves a high degree of risk, including the risk of losing your entire investment. The risks could result in a material change in the value of the securities the Company is registering for sale or could significantly limit or completely hinder the Company's ability to offer or continue to offer securities to investors.** See "*Risk Factors*" beginning on page 11 to read about factors you should consider before buying our Ordinary Shares.

 **As substantially all of the Company's operations are conducted by the operating entity in China, the Company is subject to legal and operational risks associated with having substantially all of its operations in China, including risks related to the legal, political and economic policies of the Chinese government, the relations between China and the United States, or Chinese or United States regulations, which risks could result in a material change in the operations and/or cause the value of the Company's Ordinary Shares to significantly decline or become worthless, and affect the Company's ability to offer or continue to offer securities to investors. Recently, the PRC government initiated a series of regulatory actions and made a number of public statements on the regulation of business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti-monopoly enforcement. As advised by our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the Company is not directly subject to these regulatory actions or statements, as the Company has not implemented any monopolistic behavior and its business does not involve the collection of user data, implicate cybersecurity, or involve any other type of restricted industry. However, we will be required to file with the China Securities Regulatory Commission (the "CSRC") if we cannot obtain the approvals from the SEC and Nasdaq for this offering and listing before March 31, 2023, or if we obtain the approvals on or before March 31, 2023 but fail to complete this offering and listing on or before September 30, 2023. If we are required to file with the CSRC for this offering and listing, there is no assurance that we can complete such filing in a timely manner or even at all. Any failure by us to comply with such filing requirements may result in an order to rectify, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.** See "*Risk Factors—Risks Related to Doing Business in the PRC*" beginning on page 17 for a discussion of these legal and operational risks and other information that should be considered before purchasing our Ordinary Shares.

 **In addition, the Ordinary Shares may be prohibited to trade on a national exchange or over-the-counter under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect or investigate completely the Company's auditor for two consecutive years. On December 16, 2021, the PCAOB issued its determinations that the PCAOB was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions, which determinations were vacated on December 15, 2022. The Company's auditor, TPS Thayer, LLC, is an independent registered public accounting firm with the PCAOB, and as an auditor of publicly traded companies in the U.S., is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. The PCAOB currently has access to inspect the working papers of the Company's auditor and such auditor is not subject to the determinations announced by the PCAOB on December 16, 2021. On August 26, 2022, the PCAOB signed a Statement of Protocol (the "SOP") Agreement with the CSRC and China's Ministry of Finance. The SOP, together with two protocol agreements governing inspections and investigations (together, the "SOP Agreements"), establish a specific, accountable framework to make possible complete inspections and investigations by the PCAOB of audit firms based in mainland China and Hong Kong, as required under U.S. law. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, and on December 29, 2022, legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act and amended the HFCA Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time period for triggering the delisting of our Company and the prohibition of trading in our securities if the PCAOB is unable to inspect our accounting firm at such future time. If trading in the Ordinary Shares is prohibited under the HFCA Act in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist the Ordinary Shares and trading in the Ordinary Shares could be prohibited.** See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—Recent joint statement by the SEC and the PCAOB proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act passed by the US Senate all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our offering*" on page 27.

**As a Cayman Islands holding company, the Company may rely on dividends and other distributions on equity paid by its PRC subsidiaries for cash and financing requirements. If any of the PRC subsidiaries incurs debt on their own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to the Company. However, none of the PRC subsidiaries have made any dividends or other distributions to the Company as of the date of this prospectus. In the future, cash proceeds raised from overseas financing activities, including this offering, may be transferred by the Company to the PRC subsidiaries via capital contribution or shareholder loans, as the case may be. As of the date of this prospectus, the Company has not made any dividend or distributions to U.S. investors, and there were no cash flows between the Company and the PRC subsidiaries. There are no specific cash management policies and procedures in place that dictate how funds are transferred through our organization. To the extent cash or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of the Company or the PRC subsidiaries by the PRC government to transfer cash or assets.** See "*Risk Factors" and* "*Prospectus Summary—Asset Transfers Between the Holding Company and Our Subsidiaries*."

The Company is both an "emerging growth company" and a "foreign private issuer" as defined under the U.S. federal securities laws and, as such, may elect to comply with certain reduced public company reporting requirements for this and future filings. See "*Prospectus Summary—Implications of Being an Emerging Growth Company*" and "*Prospectus Summary—Implications of Being a Foreign Private Issuer*."

As of the date of this prospectus, the Company and the PRC subsidiaries have not distributed any earnings, nor do they have any plan to distribute earnings in the foreseeable future. As of the date of this prospectus, none of the PRC subsidiaries have made any dividends or distributions to the Company and the Company has not made any dividends or distributions to the Company's shareholders or U.S. investors. The Company intends to keep any future earnings to finance business operations, and does not anticipate that any cash dividends will be paid in the foreseeable future. If the Company determines to pay dividends on any of the Ordinary Shares in the future, as a holding company, the Company will be dependent on receipt of funds from the WFOE, which in turn will rely on payments made from the operating entity. There were no cash transfers and transfers of other assets between the Company and the PRC subsidiaries during the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020. See "*Prospectus Summary—Asset Transfers Between the Holding Company and Our Subsidiaries*" and the Company's audited consolidated financial statements included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| **Initial public offering price** | $| $|
| **Underwriter's discounts<sup>(1)</sup>** | $| $|
| **Proceeds to our Company before expenses<sup>(2)</sup>** | $| $|

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "Underwriting" in this prospectus for
 more information regarding our arrangements with the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;(2) We expect our total cash
 expenses for this offering (including cash expenses payable to the Underwriter for its
 accountable out-of-pocket expenses) to be approximately $[●], exclusive of the above
 discounts. We have agreed to issue the representative's warrants to the Underwriter to purchase
 up to an aggregate number of Ordinary Shares equal to 3% of the total number of Ordinary Shares sold
 in this offering. Such warrants shall have an exercise price equal to 110% of the initial public
 offering price of the Ordinary Shares sold in this offering and shall be exercisable cashless for
 a period of five years from the effective date of the registration statement of which this prospectus
 forms a part. In addition, we will pay additional items of value in connection with this offering that
 are viewed by the Financial Industry Regulatory Authority, or FINRA, as underwriting compensation.
 These payments will further reduce proceeds available to us before expenses. See "Underwriting."

This offering is being conducted on a firm commitment basis. The Underwriter is obligated to take and pay for all of the Ordinary Shares if any such Ordinary Shares are taken.

The Underwriter expects to deliver the Ordinary Shares against payment as set forth under "Underwriting," on or about [●], 2023.

**Neither the Securities and Exchange Commission nor any state securities commission nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

![](tm2226747d2_f1asp1img002.jpg)

Prospectus dated [●], 2023.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [**PROSPECTUS SUMMARY**](#a_001) | [2](#a_001) |
| [**RISK FACTORS**](#sp2_001) | [11](#sp2_001) |
| [**DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS**](#sp3_001) | [36](#sp3_001) |
| [**ENFORCEABILITY OF CIVIL LIABILITIES**](#sp3_002) | [37](#sp3_002) |
| [**USE OF PROCEEDS**](#sp3_003) | [38](#sp3_003) |
| [**DIVIDEND POLICY**](#sp3_004) | [39](#sp3_004) |
| [**CAPITALIZATION**](#sp3_005) | [40](#sp3_005) |
| [**DILUTION**](#sp3_006) | [42](#sp3_006) |
| [**CORPORATE HISTORY AND STRUCTURE**](#sp3_007) | [44](#sp3_007) |
| [**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**](#sp3_008) | [45](#sp3_008) |
| [**BUSINESS**](#Buisness_001) | [59](#Buisness_001) |
| [**REGULATIONS**](#sp5_001) | [71](#sp5_001) |
| [**MANAGEMENT**](#s6a_001) | [83](#s6a_001) |
| [**PRINCIPAL SHAREHOLDERS**](#s6a_002) | [88](#s6a_002) |
| [**RELATED PARTY TRANSACTIONS**](#s6a_003) | [90](#s6a_003) |
| [**DESCRIPTION OF SHARE CAPITAL**](#s6a_004) | [91](#s6a_004) |
| [**SHARES ELIGIBLE FOR FUTURE SALE**](#sp7_001) | [111](#sp7_001) |
| [**MATERIAL INCOME TAX CONSIDERATION**](#sp8_001) | [113](#sp8_001) |
| [**UNDERWRITING**](#sp8_002) | [120](#sp8_002) |
| [**EXPENSES RELATING TO THIS OFFERING**](#sp8_003) | [125](#sp8_003) |
| [**LEGAL MATTERS**](#sp8_004) | [125](#sp8_004) |
| [**EXPERTS**](#sp8_005) | [125](#sp8_005) |
| [**WHERE YOU CAN FIND ADDITIONAL INFORMATION**](#sp8_006) | [125](#sp8_006) |
| [**INDEX TO FINANCIAL STATEMENTS**](#sp8_007) | [F-1](#sp8_007) |

---

**About this Prospectus**

We and the Underwriter have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by us or on our behalf or to which we have referred you. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the Ordinary Shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted or where the person making the offer or sale is not qualified to do so or to any person to whom it is not permitted to make such offer or sale. For the avoidance of doubt, no offer or invitation to subscribe for Ordinary Shares is made to the public in the Cayman Islands. The information contained in this prospectus is current only as of the date on the front cover of the prospectus. Our business, financial condition, results of operations, and prospects may have changed since that date.

**Conventions that Apply to this Prospectus**

Unless otherwise indicated or the context requires otherwise, references in this prospectus to:

● "BVI" are to the British Virgin Islands;

● " China " or the " PRC " are to the People ' s Republic of China, excluding Taiwan for the purposes of this prospectus only;

● " shares, " " Shares, " "ordinary shares," or " Ordinary Shares " are to the ordinary shares of Blue-Touch (as defined below), par value US$0.0005 per share;

● " the operating entity " are to Fujian Blue-Touch Technology Co., Ltd., a company with limited liability organized under the laws of the PRC, which is wholly owned by the WFOE (as defined below);

● "the PRC subsidiaries" or "our PRC subsidiaries" are to the operating entity and the WFOE (as defined below);

● " the WFOE " are to Fujian Blue-Touch Holdings Group Co., Ltd., a company with limited liability organized under the laws of the PRC, which is wholly owned by Blue-Touch (as defined below);

● " U.S. dollars, " " $, " "US$," and " dollars " are to the legal currency of the United States; and

● " we, " " us, " " our, " " Blue-Touch, " or the " Company " are to Blue-Touch Holdings Group Co., Ltd, an exempted company with limited liability incorporated under the laws of the Cayman Islands.

Our reporting and functional currency is the Renminbi. Solely for the convenience of the reader, this prospectus contains translations of some RMB amounts into U.S. dollars, at specified rates. The results of operations denominated in foreign currency are translated at the average rate of exchange during the reporting period, which is RMB6.5132 to US$1.00, RMB6.4474 to US$1.00 and RMB6.8941 to US$1.00 for the six months ended June 30, 2022, the years ended December 31, 2021 and 2020, respectively. Assets and liabilities denominated in foreign currency at the balance sheet date are translated at the applicable rate of exchange in effect at that date, which is RMB6.7114 to US$1.00, RMB6.3757 to US$1.00 and RMB6.5249 to US$1.00 for the six months ended June 30, 2022, the years ended December 31, 2021 and 2020, respectively, as published by the Federal Reserve Board on June 30, 2022, December 31, 2021 and December 31, 2020, respectively. The Company has made rounding adjustments to reach some of the figures included in this prospectus. Consequently, numerical figures shown as totals in some tables may not be arithmetic aggregations of the figures that precede them.

Our fiscal year end is December 31. References to a particular "fiscal year" are to our fiscal year ended December 31 of that calendar year. Our audited consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States (the "U.S. GAAP").

We have proprietary rights to trademarks used in this prospectus that are important to our business, many of which are registered under applicable intellectual property laws. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus are without the®,™ and other similar symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. This prospectus contains additional trademarks, service marks and trade names of others. All trademarks, service marks and trade names appearing in this prospectus are, to our knowledge, the property of their respective owners. We do not intend our use or display of other companies' trademarks, service marks or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other person.

**PROSPECTUS SUMMARY**

*The following summary is qualified in its entirety by, and should be read in conjunction with, the more detailed information and financial statements included elsewhere in this prospectus. In addition to this summary, we urge you to read the entire prospectus carefully, especially the risks of investing in our Ordinary Shares, discussed under "Risk Factors," before deciding whether to buy our Ordinary Shares.*

**Corporate Structure**

The Company is a holding company incorporated in the Cayman Islands with no material operations of its own. The Company conducts its operations through Fujian Blue-Touch Technology Co., Ltd., the Company's wholly owned indirect subsidiary in the PRC. The Ordinary Shares offered in this offering are shares of the Cayman Islands holding company and not shares of the PRC subsidiaries. Therefore, you will not directly hold any equity interests in the PRC subsidiaries. The Company was incorporated on September 27, 2021 as a Cayman Islands exempted company. Exempted companies are Cayman Islands companies conducting business mainly outside the Cayman Islands and, as such, are exempted from complying with certain provisions of the Companies Act (As Revised).

The following diagram illustrates our corporate structure upon completion of our initial public offering ("IPO") based on [●] Ordinary Shares being offered. For more details on our corporate history, please refer to "Corporate History and Structure."

![](tm2226747d2_f1asp1img003.jpg)

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents 6,240,000 Ordinary Shares
 held by Guanzhao Lin, the 100% owner of ST Investment Group Limited, as of the date of this
 prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents
 2,160,000 Ordinary Shares held by Jifeng Huang, the 100% owner of LinFeng Investment Limited,
 as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents
 780,000 Ordinary Shares held by Jing Liu, the 100% owner of LIUJING Investment Limited, as
 of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represents
 720,000 Ordinary Shares held by Xuedong Sun, the 100% owner of SXD Investment Consulting
 Limited, as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Represents
 660,000 Ordinary Shares held by Zhangtao Cheng, a Hong Kong resident, the 100% owner of ZTCHEN
 Investment Limited, as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Represents
 600,000 Ordinary Shares held by Mingxin Chen, the 100% owner of CMX Investment Group Limited,
 as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Represents an aggregate of 840,000 Ordinary
 Shares held by two shareholders, each one of which holds less than 5% of our Ordinary Shares,
 as of the date of this prospectus.

For details of each shareholder's ownership, please refer to the beneficial ownership table in the section captioned "Principal Shareholders."

**Business Overview**

The Company is an offshore holding company incorporated in the Cayman Islands. The Company does not conduct any substantive operations on its own but instead conducts its business operations in China through the operating entity Fujian Blue-Touch Technology Co., Ltd. The operating entity commenced its operation in 2014 and is principally engaged in designing, developing, and selling baby skincare products and toiletries as well as household cleaning products under the Blue-Touch brand. The operating entity prides itself on the quality and safety of its products, and endeavors to protect human health and the ecological environment by adopting product formulations based on safe, sustainable and tested ingredients. The Company, through the operating entity, aims to become a leading provider of baby skincare products and toiletries in China. During the six months ended June 30, 2022, the Company's revenue was $3,891,408 and the Company's net income was $567,472. In the fiscal years ended December 31, 2021, and 2020, the Company's revenue was $6,655,515 and $3,096,924, respectively, representing a growth rate of 114.91%. For the same fiscal years, the Company's net income was $775,522 and $49,436, respectively, representing a growth rate of 1468.74%.

**Competitive Strengths**

We believe that the following competitive strengths have contributed to the operating entity's success and differentiated it from its competitors:

● Product innovation capacity;

● Product quality control;

● Established relationships with manufacturers and distributors; and

● Experienced and professional management team.

**Growth Strategies**

The operating entity intends to implement the following strategies to grow its business:

● Launching new products and brands;

● Expanding offline distribution networks;

● Establishing online sales channels; and

● Opening physical stores and cooperating with retail establishments.

**The Impact of the COVID-19 Pandemic**

In early 2020, the operating entity experienced logistical stagnation and business disruptions due to the impact of the COVID-19 pandemic. In May 2020, the logistical conditions were restored, because the pandemic was contained to some extent and the business restrictions were eased in the areas where the operating entity, its manufacturers and distributors are located. At about the same time, the operating entity launched its camellia oil baby skincare products and toiletries on the market. As a result, the operating entity gradually recovered from the negative impact of the COVID-19 pandemic on its results of operations. In response to the COVID-19 pandemic, and for the safety of the employees, the operating entity has implemented various safety precautions in strict compliance with government regulations, policies and mandates. The operating entity also encouraged employees of non-essential job roles to work from home during the height of the COVID-19 pandemic. Since May 2020, although production and logistical activities in certain parts of China were disrupted by the regional COVID-19 lockdowns, the Chinese government has eased the nationwide COVID-19 restrictions and has not mandated any nationwide lockdowns, and as a result, the nationwide production and logistical activities in China have gradually resumed. Since May 2020, the operating entity's operations, including the activities of its manufacturers or distributors, have not endured any material adverse impact from the COVID-19 restrictions. As of the date of this prospectus, the Chinese government has eased the COVID-19 restrictions. We expect that there will not be any nationwide government-mandated lockdowns in China in the forseeable future. Even if some of the operating entity's manufacturers and distributors are subject to regional lockdowns, the operating entity expects to take prompt measures to lessen any disruptions in the production and logistical activities, including cooperating with alternative manufacturers and additional distributors.

**PRC-related Risk Disclosure**

The Company is subject to certain legal and operational risks associated with having the majority of its operations in China. PRC laws and regulations governing the current business operations are sometimes vague and uncertain. As a result, these risks may result in material changes in the operations of the Company's PRC subsidiaries, significant depreciation of the value of the Ordinary Shares, or a complete hindrance of the Company's ability to offer, or continue to offer, securities to investors. Recently, the PRC government adopted a series of regulatory actions and issued statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. As of the date of this prospectus, the Company and the PRC subsidiaries have not been involved in any investigations on cybersecurity review initiated by any PRC regulatory authority, nor has any of them received any inquiry, notice, or sanction. As confirmed by our PRC legal counsel, AllBright Law Offices (Fuzhou), we are not subject to cybersecurity review with the Cyberspace Administration of China (the "CAC"), since we currently do not have over one million users' personal information and do not anticipate that we will be collecting over one million users' personal information in the foreseeable future, which we understand might otherwise subject us to the cybersecurity review with the CAC. See "Risk Factors—Risks Related to Doing Business in the PRC—Recent greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our offering."

The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severely Cracking Down on Illegal Securities Activities According to Law, or the Opinions, which were made available to the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas listings by Chinese companies. On December 24, 2021, the China Securities Regulatory Commission (the "CSRC") released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures", and collectively with the Draft Administrative Provisions, the "Draft Rules Regarding Overseas Listing"), which stipulate that Chinese-based companies, or the issuer, shall fulfill the filing procedures after the issuer makes an application for initial public offering and listing in an overseas market, and certain overseas offering and listing such as those that constitute a threat to or endanger national security, as reviewed and determined by competent authorities under the State Council in accordance with law, may be prohibited under the Draft Rules Regarding Overseas Listing. On February 17, 2023, with the approval of the State Council, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "Trial Measures") and five supporting guidelines, which will come into effect on March 31, 2023. According to the Trial Measures, among other requirements, (1) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures with the CSRC; if a domestic company fails to complete the filing procedures, such domestic company may be subject to administrative penalties; and (2) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and such filings shall be submitted to the CSRC within three business days after the submission of the overseas offering and listing application. On the same day, the CSRC also held a press conference for the release of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which clarifies that (1) on or prior to the effective date of the Trial Measures, domestic companies that have already submitted valid applications for overseas offering and listing but have not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and must complete the filing before the completion of their overseas offering and listing; (2) a six-month transition period will be granted to domestic companies which, prior to the effective date of the Trial Measures, have already obtained the approval from overseas regulatory authorities or stock exchanges, but have not completed the indirect overseas listing; if domestic companies fail to complete the overseas listing within such six-month transition period, they shall file with the CSRC according to the requirements; and (3) the CSRC will solicit opinions from relevant regulatory authorities and complete the filing of the overseas listing of companies with contractual arrangements which duly meet the compliance requirements, and support the development and growth of these companies.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither we nor the PRC subsidiaries have been subject to any investigation, or received any notice, warning, or sanction from the CSRC or other applicable government authorities related to this offering. However, we will be required to file with the CSRC if we cannot obtain the approvals from the SEC and Nasdaq for this offering and listing before March 31, 2023, or if we obtain the approvals on or before March 31, 2023 but fail to complete this offering and listing on or before September 30, 2023. If we are required to file with the CSRC for this offering and listing, there is no assurance that we can complete such filing in a timely manner or even at all. Any failure by us to comply with such filing requirements may result in an order to rectify, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.

In addition, the Ordinary Shares may be prohibited from being traded on a national exchange or over-the-counter under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect or investigate completely the Company's auditor for two consecutive years. On December 16, 2021, the PCAOB issued its determinations that the PCAOB was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions, which determinations were vacated on December 15, 2022. The Company's auditor, TPS Thayer, LLC, is an independent registered public accounting firm with the PCAOB, and as an auditor of publicly traded companies in the U.S., is subject to laws in the U.S., pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. The PCAOB currently has access to inspect the working papers of the Company's auditor and such auditor is not subject to the determinations announced by the PCAOB on December 16, 2021. On August 26, 2022, the PCAOB signed a Statement of Protocol (the "SOP") Agreement with the CSRC and China's Ministry of Finance. The SOP, together with two protocol agreements governing inspections and investigations (together, the "SOP Agreements"), establish a specific, accountable framework to make possible complete inspections and investigations by the PCAOB of audit firms based in mainland China and Hong Kong, as required under U.S. law. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, and on December 29, 2022, legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act and amended the HFCA Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time period for triggering the delisting of our Company and the prohibition of trading in our securities if the PCAOB is unable to inspect our accounting firm at such future time. If trading in the Ordinary Shares is prohibited under the HFCA Act in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist the Ordinary Shares and trading in the Ordinary Shares could be prohibited. See "Risk Factors—Risks Related to our Ordinary Shares and This Offering—Recent joint statement by the SEC and the PCAOB proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act passed by the US Senate all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our offering" on page 27.

The PRC subsidiaries currently have obtained all permissions and approvals to operate in China in compliance with relevant PRC laws and regulations, including the business license. The business license is a permit that allows companies to conduct specific business within the government's geographical jurisdiction. The operating entity has properly filed for all of the cosmetic products that the operating entity sells in accordance with the relevant PRC laws and regulations. All ingredients used in the products that the operating entity sells are permitted to be used in the production of cosmetics, as required by the applicable governmental authorities.

**Asset Transfers Between the Holding Company and Our Subsidiaries**

As of the date of this prospectus, there have been no cash transfers or transfers of other assets between the Company and the PRC subsidiaries. To the extent cash or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC, due to interventions in or the imposition of restrictions and limitations on the ability of the Company or the PRC subsidiaries by the PRC government to transfer cash or assets. There are no specific cash management policies and procedures in place that dictate how funds are transferred through our organization.

**Dividends or Distributions Made to our Company and U.S. Investors**

As of the date of this prospectus, none of the PRC subsidiaries have made any dividends or distributions to the Company, and the Company has not made any dividends or distributions to its shareholders or U.S. investors. The Company intends to keep any future earnings to finance business operations, and does not anticipate that any cash dividends will be paid in the foreseeable future.

Under the Cayman Islands law, a Cayman Islands exempted company may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts due in the ordinary course of business.

If the Company determines to pay dividends on any of the Ordinary Shares in the future, as a holding company incorporated in the Cayman Islands, the Company will be dependent on receipt of funds from the WFOE. The WFOE, in turn, will be dependent on the receipt of funds from the operating entity.

The WFOE is a wholly foreign-owned enterprise under the PRC law. The regulations governing the distribution of dividends paid by the WFOE include Corporate Law (1993) as lastly amended in 2009, the Foreign Investment Law and its implementing Regulations, and the Enterprise Income Tax Law (2007) as lastly amended in 2018 and its implementation Regulations (2007) as lastly amended in 2019.

Current PRC regulations permit the operating entity to pay dividends to the WFOE only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of the PRC subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other purposes, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, the Company may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from the profits, if any. Furthermore, if the PRC subsidiaries incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If the Company or the PRC subsidiaries are unable to receive all of the revenue from operations, the Company may be unable to pay dividends on the Ordinary Shares.

Cash dividends, if any, on the Ordinary Shares will be paid in U.S. dollars. The WFOE is considered a resident enterprise for PRC tax purposes, and any dividends that the operating entity pays to the WFOE may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.

In order for the Company to pay dividends to its shareholders, the Company will rely on payments made from the operating entity to the WFOE, and the distribution of such payments to the Company. According to the PRC Enterprise Income Tax Law, such payments from the operating entity to the WFOE are subject to the PRC enterprise income tax at a rate of 25%.

**Summary of Risk Factors**

Investing in our Ordinary Shares involves significant risks. You should carefully consider all of the information in this prospectus before making an investment in our Ordinary Shares. Below please find a summary of the principal risks the Company faces, organized under relevant headings. These risks are discussed more fully in the section titled "Risk Factors."

Below is a summary of certain risks related to doing business in the PRC:

● Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on the operating entity's business (See "*Risk Factors—Risks Related to Doing Business in the PRC—Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on the operating entity's business*" on page 17);

● The legal system of the PRC is not fully developed and there are inherent uncertainties that may affect the protection afforded to the operating entity's business and our shareholders (See "*Risk Factors—Risks Related to Doing Business in the PRC—The legal system of the PRC is not fully developed and there are inherent uncertainties that may affect the protection afforded to the operating entity's business and our shareholders*" on page 18);

● The Chinese government exerts substantial influence over the manner in which the PRC subsidiaries conduct their business activities, may intervene or influence such operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in such operations and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our securities to significantly decline or be worthless (See "*Risk Factors—Risks Related to Doing Business in the PRC—The Chinese government exerts substantial influence over the manner in which the PRC subsidiaries conduct their business activities, may intervene or influence such operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in such operations and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our securities to significantly decline or be worthless*" on page 18);

● The approval and/or other requirements of the CSRC or other PRC government authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, our Company cannot predict whether or how soon our Company will be able to obtain such approval (See "*Risk Factors—Risks Related to Doing Business in the PRC—The approval and/or other requirements of the CSRC or other PRC government authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, our Company cannot predict whether or how soon our Company will be able to obtain such approval*" on page 19);

● Recent greater oversight by the Cyberspace Administration of China (the "CAC") over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our offering (See "*Risk Factors—Risks Related to Doing Business in the PRC—Recent greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our offering*" on page 20);

● PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject the operating entity to liability or penalties, limit our ability to inject capital into the operating entity, limit the operating entity's ability to increase its registered capital or distribute profits to our Company, or may otherwise adversely affect our Company (See "*Risk Factors—Risks Related to Doing Business in the PRC—PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject the operating entity to liability or penalties, limit our ability to inject capital into the operating entity, limit the operating entity's ability to increase its registered capital or distribute profits to our Company, or may otherwise adversely affect our Company*" on page 21);

● The Company may rely on dividends and other distributions on equity paid by the PRC subsidiaries to fund any cash and financing requirements it may have, and any limitation on the ability of the PRC subsidiaries to make payments to the Company could have a material and adverse effect on the business (See "*Risk Factors—Risks Related to Doing Business in the PRC—The Company may rely on dividends and other distributions on equity paid by the PRC subsidiaries to fund any cash and financing requirements it may have, and any limitation on the ability of the PRC subsidiaries to make payments to the Company could have a material and adverse effect on the business*" on page 22); and

● Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations, and affect the value of your investment (See "*Risk Factors—Risks Related to Doing Business in the PRC—Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations, and affect the value of your investment*" on page 23).

Below is a summary of certain risks related to our business and industry:

● The loss of multiple suppliers or a significant disruption or interruption in the supply chain may adversely affect the operating entity's business (See "*Risk Factors—Risks Related to Our Business and Industry—The loss of multiple suppliers or a significant disruption or interruption in the supply chain may adversely affect the operating entity's business*" on page 11);

● The operating entity relies on third parties to manufacture products. Any failure by or loss of a third-party manufacturer could result in delays and increased costs (See "*Risk Factors—Risks Related to Our Business and Industry—The operating entity relies on third parties to manufacture products. Any failure by or loss of a third-party manufacturer could result in delays and increased costs*" on page 11);

● The operating entity's business may face risks associated with logistics and distribution (See "*Risk Factors—Risks Related to Our Business and Industry—The operating entity's business may face risks associated with logistics and distribution*" on page 11);

● The operating entity relies on distributors to distribute and sell its products (See "*Risk Factors—Risks Related to Our Business and Industry—The operating entity relies on distributors to distribute and sell its products*" on page 12);

● Changes in consumer preferences may adversely affect the operating entity's business, financial condition and operating results (See "*Risk Factors—Risks Related to Our Business and Industry—Changes in consumer preferences may adversely affect the operating entity's business, financial condition and operating results*" on page 12);

● The operating entity's business operates in highly competitive product markets (See "*Risk Factors—Risks Related to Our Business and Industry—The operating entity's business operates in highly competitive product markets*" on page 12);

● Significant challenges or delays in the innovation and development of new products, technologies and indications could have an adverse impact on the operating entity's long-term success (See "*Risk Factors—Risks Related to Our Business and Industry—Significant challenges or delays in the innovation and development of new products, technologies and indications could have an adverse impact on the operating entity's long-term success*" on page 13); and

● The operating entity's success depends in part on the quality, safety and efficacy of its products (See "*Risk Factors—Risks Related to Our Business and Industry—The operating entity's success depends in part on the quality, safety and efficacy of its products*" on page 13).

Below is a summary of certain risks related to our Ordinary Shares and this offering:

● Recent joint statement by the SEC and the Public Company Accounting Oversight Board (the "PCAOB") proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act passed by the US Senate all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our offering (See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—Recent joint statement by the SEC and the PCAOB proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act passed by the US Senate all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our offering*" on page 27);

● There has been no public market for our Ordinary Shares prior to this offering, and you may not be able to resell our Ordinary Shares at or above the price you paid, or at all (See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—There has been no public market for our Ordinary Shares prior to this offering, and you may not be able to resell our Ordinary Shares at or above the price you paid, or at all*" on page 30);

● Because our initial public offering price is substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution (See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—Because our initial public offering price is substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution*" on page 30);

● The trading price of our Ordinary Shares is likely to be volatile, which could result in substantial losses to investors (See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—The trading price of our Ordinary Shares is likely to be volatile, which could result in substantial losses to investors*" on page 30); and

● If securities or industry analysts cease to publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and trading volume could decline (See "*Risk Factors—Risks Related to our Ordinary Shares and This Offering—If securities or industry analysts cease to publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and trading volume could decline*" on page 31).

**Corporate Information**

Our principal executive offices are located at No.1 Pengda Road, Hunan Town, Changle District, Fuzhou City, Fujian Province, China 350212, and our phone number is +86-183-5916-6777. Our registered office in the Cayman Islands is located at Second Floor, Century Yard, Cricket Square, P.O. Box 902, Grand Cayman KY1-1103, Cayman Islands, and the email of our registered office is info@tricorglobal.com. We maintain a corporate website at http://blue-touch.com.cn/. The information contained in, or accessible from, our website or any other website does not constitute a part of this prospectus. Our agent for service of process in the United States is Cogency Global Inc., 122 East 42nd Street, 18th Floor, New York, NY 10168.

**Implications of Our Being an "Emerging Growth Company"**

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the "JOBS Act." An "emerging growth company" may take advantage of reduced reporting requirements that are otherwise applicable to larger public companies. In particular, as an emerging growth company, we:

● may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations, or "MD&A;"

● are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives, and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as "compensation discussion and analysis";

● are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● are not required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on frequency" and "say-on-golden-parachute" votes);

● are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

● are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act; and

● will not be required to conduct an evaluation of our internal control over financial reporting until our second annual report on Form 20-F following the effectiveness of our initial public offering.

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions until we no longer meet the definition of an emerging growth company. The JOBS Act provides that we would cease to be an "emerging growth company" at the end of the fiscal year in which the fifth anniversary of our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act occurred, if we have more than $1.235 billion in annual revenues, have more than $700 million in the market value of our Ordinary Share held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

**Foreign Private Issuer Status**

We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As such, we are exempt from certain provisions applicable to United States domestic public companies. For example:

● we are not required to provide as many Exchange Act reports, or as frequently, as a domestic public company;

● for interim reporting, we are permitted to comply solely with our home country requirements, which are less rigorous than the rules that apply to domestic public companies;

● we are not required to provide the same level of disclosure on certain issues, such as executive compensation;

● we are exempt from provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material information;

● we are not required to comply with the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; and

● we are not required to comply with Section 16 of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and establishing insider liability for profits realized from any "short-swing" trading transaction.

**THE OFFERING**

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| **Ordinary Shares offered by us** | [●] million Ordinary Shares |
| **Price per Ordinary Share** | We currently estimate that the initial public offering price will be in the range of $[●] to $[●] per Ordinary Share. |
| **Ordinary Shares outstanding prior to completion of this offering** | 12,000,000 Ordinary Shares |
| **Ordinary Shares outstanding immediately after this offering** | [●] Ordinary Shares excluding [●] Ordinary Shares underlying the Underwriters' Warrants  |

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|:---|:---|
| **Underwriters' Warrants** | We have agreed to sell to Univest Securities, LLC, the representative of the underwriters, warrants (the "Underwriters' Warrants") at a nominal consideration of $0.01 per warrant to purchase up to a total of [●] Ordinary Shares (equal to 3% of the aggregate number of Ordinary Shares sold in the offering) at a price equal to 110% of the price of our Ordinary Shares offered hereby. |

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|:---|:---|
| **Nasdaq Capital Market symbol** | We have applied to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "BBCH." At this time, Nasdaq has not yet approved our application to list our Ordinary Shares. The closing of this offering is conditioned upon Nasdaq's final approval of our listing application, and there is no guarantee or assurance that our Ordinary Shares will be approved for listing on Nasdaq. |
| **Transfer Agent** | [●] |
| **Use of proceeds** | We intend to use the proceeds from this offering as follows: (i) approximately 20% of the net proceeds for product innovation and development, (ii) approximately 40% of the net proceeds for business expansion and for the acquisition of, or investments in, businesses engaged in the maternal and newborn skincare industry, although as of the date of this prospectus, we have not identified, nor have we engaged in any material discussions regarding, any potential target, and (iii) approximately 40% of the net proceeds for working capital, operating expenses and other general corporate purposes. See "Use of Proceeds" for more information.  |
| **Lock-up** | All of our directors and officers have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer, or dispose of, directly or indirectly, any of our Ordinary Shares or securities convertible into or exercisable or exchangeable for our Ordinary Shares for a period of six months after the effective date of this registration statement. See "Shares Eligible for Future Sale" and "Underwriting" for more information. |
| **Risk factors** | The Ordinary Shares offered hereby involve a high degree of risk. You should read "Risk Factors" for a discussion of factors to consider before deciding to invest in our Ordinary Shares. |

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**RISK FACTORS**

*An investment in our Ordinary Shares involves a high degree of risk. Before deciding whether to invest in our Ordinary Shares, you should consider carefully the risks described below, together with all of the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. If any of these risks actually occurs, our business, financial condition, results of operations, or cash flow could be materially and adversely affected, which could cause the trading price of our Ordinary Shares to decline, resulting in a loss of all or part of your investment. The risks described below and discussed in other parts of this prospectus are not the only ones that we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business. You should only consider investing in our Ordinary Shares if you can bear the risk of loss of your entire investment.*

**Risks Related to Our Business and Industry**

***The loss of multiple suppliers or a significant disruption or interruption in the supply chain may adversely affect the operating entity's business.***

The operating entity relies on the third-party manufacturers to source and obtain raw materials. During the six months ended June 30, 2022 and the fiscal years ended December 31, 2020 and 2021, the supply and price of raw materials remained stable. Raw materials, consisting chiefly of essential oils, chemicals, containers and packaging components, are purchased by third-party manufacturers from various third-party suppliers. The loss of multiple suppliers or a significant disruption or interruption in the supply chain could have a material adverse effect on the manufacturing and packaging of the operating entity's products. Regulatory action, such as restrictions on importation, or limits on the use of certain products, may also disrupt or interrupt the supply chain. In addition, the operating entity is subject to increases in the costs of raw materials or other commodities or, the impossibility of obtaining raw materials and packaging due to several factors beyond control, such as climate, agricultural production, legitimate access to genetic heritage and traditional associated knowledge, economic conditions, and transportation and processing costs. Each of these may adversely affect the operating entity's profit margins if it is unable to pass along any higher costs in the form of price increases or otherwise achieve cost efficiencies. If there are any material shortages or delays in delivery of packaging materials, the operating entity's ability to deliver the finished goods to points of sale may be materially adversely affected, and its reputation and sales may suffer material damage.

***The operating entity relies on third parties to manufacture products. Any failure by or loss of a third-party manufacturer could result in delays and increased costs.***

The operating entity does not have manufacturing facilities and relies on third-party manufacturers to produce products. However, there is no assurance that the third-party manufacturers will be able to meet the operating entity's manufacturing requirements. There is no assurance that the operating entity would be able to renew the agreements or to negotiate new agreements with the third-party manufacturers at reasonable rates or on a timely basis. Other risks include reliance on third-party manufacturers for regulatory compliance, quality assurance, misappropriation of the operating entity's intellectual property, limited ability to manage inventory, and possible breach of the manufacturing agreements by third-party manufacturers. Further, if any major third-party manufacturer suffers damage to facilities, loses benefits under material agreements, experiences power outages, encounters financial difficulties, is unable to secure necessary raw materials or suffers any other reduction in efficiency, the operating entity may experience significant business disruption. In the event of any such disruption, the operating entity would need to seek and source other qualified third-party manufacturers, which is likely to result in further delays and increased costs.

***The operating entity's business may face risks associated with logistics and distribution.***

After accepting the finished products from the third-party manufacturers, the operating entity is responsible for delivering the products from its warehouse to its distributors' storage facilities. If operations at the operating entity's warehouse or the distributors' storage facilities are adversely affected by factors beyond control, such as fire, natural disasters, disease outbreaks, pandemics, armed conflict, strikes and stoppages, power shortages, failures in the systems, forest fires and deforestation, and in the event that no other warehouse or storage facility is able to meet the demand of the region affected, the distribution of products to the regions supplied by the warehouse or storage facility will be impaired. Any significant interruptions, failures or changes in the logistics infrastructure that the operating entity uses to deliver products could prevent the timely or successful delivery of the products to the clients. If the operating entity is not able to expand or adjust the existing distribution networks in order to meet the supply needs, the operating entity's business will be adversely affected.

***The operating entity relies on distributors to distribute and sell its products.***

The operating entity relies on third-party distributors to distribute and sell the products in China. If the operating entity is unable to effectively manage such relationships with the third-party distributors and the agreements under which the third-party distributors operate, the operating entity's results of operations and cash flows could be adversely impacted. If the third-party distributors fail to meet their obligations to the operating entity, it could adversely impact the operating entity's operations. Further, if a key third-party distributor were to significantly reduce the inventory level of the operating entity's products due to factors beyond control, such as increased offerings of other branded manufacturers, were to significantly tighten product delivery windows, or were to experience a significant business disruption, it may adversely affect the operating entity's business.

***Changes in consumer preferences may adversely affect the operating entity's business, financial condition and operating results.***

The operating entity operates in an industry that is subject to rapid and unpredictable changes in consumer demand and trends. The success of the operating entity's strategy depends on its ability to foresee, evaluate and react effectively to changes in the spending levels of consumers and their preferences regarding skincare and other related products. The operating entity's competitiveness depends in part on the successful creation of new products, as well as on consumer satisfaction and preferences in line with market trends. Consumer preferences and trends may change due to a variety of factors, such as changes in demographic trends, changes in the characteristics and ingredients of products, new market trends, climate, publicity, or a weak economy in which the operating entity operates. If the operating entity is unable to anticipate changes in consumer preferences or respond to changes in a timely and cost-effective manner, its business and results of operations could be materially adversely affected.

***If the operating entity is unable to conduct marketing activities in a cost-effective manner, its results of operations and financial condition may be materially and adversely affected.***

The operating entity utilizes a broad mix of marketing programs, including online advertising, social media marketing, and outdoor advertising activities within communities, to increase the publicity and word-of-mouth referrals of the products. The marketing programs are designed by a third-party advertising agency and supervised by the operating entity. There is no assurance that these marketing programs will always be well received or result in the anticipated levels of sales, that these programs will always be implemented in a cost-effective manner, that these programs will always keep pace with industry development and consumer preferences, or that the operating entity will be able to recruit or retain experienced marketing employees. Failures to implement the existing marketing programs in a cost-effective manner or to introduce new branding approaches to adapt to the evolving trends could reduce the operating entity's market share and cause its revenue to decline. If the operating entity is unable to effectively manage its relationship with the third-party advertising agency, or if the operating entity fails to find a suitable replacement at reasonable costs should the operating entity not be able to maintain such relationship, it could adversely affect the operating entity's marketing programs and efforts.

***The operating entity's business operates in highly competitive product markets.***

The operating entity's business competes with companies of various sizes on the basis of cost-effectiveness, product innovations, product quality, product safety, real or perceived product advantages, and product pricing. The operating entity competes against cosmetics and skincare companies that manufacture and sell broad product lines through various types of retail establishments and other channels, including through the internet. Some competitors have a greater market presence in certain geographical areas, store formats and for certain categories of products. Some competitors may be able to devote greater resources than the operating entity to invest in business development. Some competitors may be acquired by, receive investments from, or enter into other commercial relationships with large, well-established and well-financed companies in certain lines of business. Some competitors may have marketing investments substantially larger than the operating entity. The operating entity may be materially adversely affected to the extent it is unable to compete successfully with its competitors.

***Significant challenges or delays in the innovation and development of new products, technologies and indications could have an adverse impact on the operating entity's long-term success.***

The operating entity's continued success depends in part on its ability to innovate and develop new products and services that address the evolving needs of consumers. Development of successful products and technologies is also necessary to offset revenue losses when the operating entity's existing products lose market share due to factors such as competition. As of the date of this prospectus, the operating entity pursues product development through internal research and development as well as through collaboration with Guangzhou Bangduo Biological and Technology Co., Limited ("Guangzhou Bangduo"), a chemical technology research company in China. The operating entity will be entitled to own the intellectual property resulting from such collaboration with Guangzhou Bangduo. Developing new products requires significant investment of resources over a protracted period of time. The process depends on many factors including the ability to: discern future needs; develop promising new compounds, strategies and technologies; achieve successful clinical trial results; secure effective intellectual property protection; obtain regulatory approvals on a timely basis; and, if and when they reach the market, successfully differentiate the operating entity's products from competing products. New products or enhancements to existing products may not be accepted quickly or significantly in the marketplace due to product and price competition, and changes in customer preferences or purchasing patterns. The operating entity cannot be certain when or whether it will be able to develop products and technologies, or whether particular products will be commercially successful. Although the operating entity has maintained a good relationship with Guangzhou Bangduo in the last two years, the operating entity's ongoing collaboration with Guangzhou Bangduo may present a risk to the innovation and development of new products. If Guangzhou Bangduo encounters any situation affecting its research capacity, if Guangzhou Bangduo fails to meet its contracted obligations, if the collaboration with Guangzhou Bangduo discontinues for any reason, or if the operating entity fails to find a replacement, it could have a material adverse impact on product innovation and development prospects, including delays in product launches, and reductions in future sales and market share.

***The operating entity's success depends in part on the quality, safety and efficacy of its products.***

The operating entity's success depends in part on the quality, safety and efficacy of its products. As of the date of this prospectus, the operating entity has not been subject to any significant product quality and safety incidents, nor has it been punished by any relevant government authorities for product quality and safety issues, nor has it received any complaints from any consumers about product quality and safety issues. As is the case with its competitors, the operating entity may be subject to product liability claims if its products are found to be unfit for human use or cause illness. Products may be rendered unfit for human use due to contamination of ingredients, whether accidental or not, and illegal tampering. Despite the measures the operating entity has in place to control the quality of products, contamination of ingredients of the products may occur during the transportation, production, distribution and sales processes due to reasons beyond control, such as acts carried out in bad faith, sabotage, or systemic failure the causes of which are unknown. A significant product recall, product-related litigation, product misuse, negative perceptions of packaging (such as plastic and other petroleum-based materials), lack of recyclability or other environmental impacts, privacy lapses or data breaches, allegations of product tampering or the distribution and sale of counterfeit products and other similar events may cause the loss of revenue. Further, adverse publicity about these types of concerns relating to the operating entity's brand or to the industry as a whole, whether or not legitimate, may discourage consumers from purchasing the operating entity's products. If consumers lose confidence in the operating entity's brand, the operating entity could experience long-term declines in sales.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity is in compliance with the PRC laws related to the quality, safety and efficacy of its products, and has not received any notice, warning, or sanction from relevant government authorities. Although the operating entity does not manufacture any products, it operates a cosmetics business and must ensure the quality and safety of its products. According to the PRC laws and regulations related to the sale of cosmetics, the cosmetics business operators shall establish and implement the inspection and recording system for the purchased goods to verify the market entity registration certificates, cosmetics registration or record-filing situations and the ex-factory inspection conformity certificates of the suppliers and shall truthfully record and keep the relevant vouchers. The cosmetics business operators shall store and transport the cosmetics in accordance with the provisions of the relevant laws and regulations and the requirements indicated on the labels of the cosmetics, regularly inspect and promptly dispose of the deteriorated cosmetics or the cosmetics that have exceeded the service life. The drug regulatory authority shall confiscate the illegal gains if the cosmetics business operators manufacture the cosmetics without any permission, or sell the deteriorated cosmetics or the cosmetics whose service life has expired; if the value of cosmetics illegally operated is less than RMB10,000, a fine of not less than RMB10,000 but not more than RMB50,000 shall be imposed; if the value of cosmetics illegally operated is not less than RMB10,000, a fine of not less than five times but not more than 20 times the value of the goods shall be imposed. Where a cosmetics product is defective due to a mistake by the operator and such defect causes physical injury or damage to third party property, the operator shall bear liability for compensation.

 ***If the operating entity is unable to comply with the PRC laws related to consumer protection and unfair competition, it may face punishments by the PRC government authorities.***

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity is in compliance with the PRC laws related to consumer protection and unfair competition. If the operating entity violates the PRC laws and regulations related to consumer protection, it may face punishments by the PRC government authorities, including the imposition of fines, suspension of business operations and revocation of business license. If the operating entity violates the PRC laws against unfair competition and cause damages to others, it may bear certain civil liability.

***The operating entity may not be able to protect its intellectual property rights.***

The operating entity's success depends in part on its ability to defend its intellectual property rights, including trademarks, patents, domain names, trade secrets and know-how. The improper or unauthorized use of the operating entity's intellectual property rights may decrease the brand value and cause a decline in sales. The operating entity could, even if by omission, fail to renew an intellectual property right in a timely manner, or third parties may challenge, and succeed in obtaining the invalidation of, any existing or future intellectual property issued to, or licensed to the operating entity. Monitoring the unauthorized use of intellectual property requires significant effort. There is no assurance that the steps that have been, or will be, taken to protect intellectual property rights will be sufficient or that third parties will not infringe upon or misappropriate proprietary rights. If the operating entity is unable to protect its proprietary rights against infringement or misappropriation, it could adversely affect the operating entity's business.

Litigation may also be necessary to defend against claims of infringement or invalidity by others as the operating entity actively pursues product innovation and enhances the value of its intellectual property portfolio. An adverse outcome in litigation or any similar proceedings could adversely affect the operating entity's business, financial condition and results of operation. In addition, the diversion of management's attention and resources while addressing any intellectual property litigation claim, regardless of whether the claim is valid, could be significant and could significantly affect the operating entity's business, financial condition and results of operation.

***Interruptions or failures that impair access to information technology systems could adversely affect the business of the operating entity.***

The operating entity relies on information technology systems to process, transmit, and store information in relation to its operations. For example, the operating entity relies on Kingdee software to record its financial data. These information technology systems may be vulnerable to interruption due to a variety of events beyond control, including but not limited to, natural disasters, telecommunications failures, computer viruses, hacking and other security issues. Any material interruptions or failures in these information technology systems could cause disruptions in business operations and may require a significant investment to update, remediate or replace with alternate systems. The costs and potential problems associated with supporting, maintaining, remediating and upgrading the existing information technology systems, or with implementing new systems, may severely disrupt the operating entity's business operations.

***Increased labor costs, inability to retain suitable employees, or unfavorable labor relations may adversely affect the business, financial condition or results of operations.***

The operating entity devotes significant resources to recruiting and training employees. Its ability to manage and control labor costs is subject to numerous external factors, including market pressures with respect to prevailing wage rates, unemployment levels, health and other insurance costs, as well as the impact of legislation or regulations governing wage and employee benefits. Any changes in these external factors could significantly increase labor costs, which would reduce the operating entity's net income and cash flows.

The operating entity aims to motivate and retain qualified employees. If the employees are unsatisfied with what the operating entity offers, such as remuneration packages or working environment, the operating entity may not be able to retain qualified employees or replace them with personnel of appropriate skill sets and personal attributes at comparable costs. In such event, the operating entity may need to expend additional resources to retain or replace suitable employees.

From time to time, the operating entity may be subject to various employment-related claims, such as individual actions or government enforcement actions relating to wage-hour, labor standards, or healthcare and benefit issues. Such actions, if brought against the operating entity and successful in whole or in part, may materially and adversely affect the operating entity's business.

***If the operating entity loses key personnel, its business may be adversely affected.***

The operating entity depends on the continued contributions of key employees, including members of senior management teams. Failure to attract, motivate and retain key employees, changes in the senior management teams, or failure to develop and implement a viable succession plan, could adversely affect the operating entity's business and future success. In addition, if any member of senior management teams or any other key employee joins a competitor or forms a competing company, the operating entity may experience difficulty in managing its business effectively. Any such disruption or difficulty in filling key management roles could adversely affect the operating entity's business.

***The operating entity leases office and warehouse space from a third party, and there is no assurance that the operating entity will be able to renew the leases or find suitable alternative premises upon the expiration of the relevant lease terms.***

The operating entity leases its office and warehouse space from a third party. Although the operating entity is entitled to the right of first refusal to renew all the current leases and has maintained good relationships with the lessor, there is no assurance that the operating entity will be able to renew such leases on commercially reasonable terms, or at all. In the event that the operating entity is unable to renew the current leases, it will be forced to relocate and may not be able to find suitable alternative premises. Even if the operating entity is able to find desirable alternative locations, it may incur extraordinary relocation costs, hefty rental payments and significant managerial expenses. If any of these events occurs, the operating entity's business may be materially and adversely affected.

***Uncertain economic or social conditions may adversely impact the operating entity's business.***

The operating entity's business could be negatively impacted by reduced demand for its products related to one or more significant local, regional or global economic or social disruptions. These disruptions may include: a slow-down, recession or inflationary pressures in the general economy; reduced market growth rates; tighter credit markets for the operating entity's suppliers, vendors or customers; a significant shift in government policies; significant social unrest; or the deterioration of economic relations between countries or regions. Additionally, these and other economic conditions may cause the operating entity's suppliers, distributors, contractors or other third-party partners to suffer financial or operational difficulties that they cannot overcome, resulting in their inability to provide the operating entity with the needed materials and services, in which case the operating entity's business and results of operations could be adversely affected.

***The operating entity must successfully manage the demand, supply and operational challenges associated with the effects of a disease outbreak, including epidemics, pandemics or similar widespread public health concerns.***

The operating entity's business may be negatively impacted by the fear of, exposure to, or actual effects of, a disease outbreak, epidemic, pandemic or similar widespread public health concern, including travel restrictions or recommendations or mandates from governmental authorities as a result of the COVID-19 pandemic, the threat of the virus, or the emergence of any variants. These impacts include, but are not limited to:

● Significant reductions in demand or significant volatility in demand for one or more of the operating entity's products, which may be caused by, among other things: the temporary inability of consumers to purchase products due to illness, quarantine or other travel restrictions or financial hardship, shifts in demand away from the operating entity's products, or stockpiling or similar pantry-loading activity. If prolonged, such impacts can further increase the difficulty of business or operations planning and may adversely impact the operating entity's results of operations and cash flows;

● Inability to meet customers' needs and achieve cost targets due to disruptions in manufacturing and supply arrangements caused by constrained workforce capacity or the loss or disruption of other essential manufacturing and supply elements such as raw materials or other finished product components, transportation, or other manufacturing and distribution capability;

● Failure of third parties on which the operating entity relies, which may include suppliers, manufacturers, distributors, and external business partners, to meet their obligations to the operating entity, or significant disruptions in their ability to do so, which may be caused by their own financial or operational difficulties and may adversely impact the operating entity's operations;

● Periods of disruption that limit the ability to access the financial markets or which increase the cost of liquidity; or

● Significant changes in the political conditions in regions in which the operating entity manufactures, sells or distributes products, including quarantines, price controls, or governmental or regulatory actions, closures or other restrictions that limit or close operating and manufacturing facilities, restrict the operating entity's employees' ability to travel or perform necessary business functions, or otherwise prevent third-party partners, suppliers or customers from sufficiently staffing operations, which could adversely impact the operating entity's results of operations and cash flows.

In early 2020, the operating entity experienced logistical stagnation and business disruptions due to the impact of the COVID-19 pandemic. In May 2020, the logistical conditions were restored to some extent and the restrictions were eased in the areas where the operating entity, its manufacturers and distributors are located. About the same time, the operating entity launched its camellia oil baby skincare products and toiletries on the market. As a result, the operating entity gradually recovered from the negative impact of the COVID-19 pandemic on its results of operations. Since May 2020, although production and logistical activities in certain parts of China were disrupted by the regional COVID-19 lockdowns, the Chinese government has eased the nationwide COVID-19 restrictions and has not mandated any nationwide lockdowns, and as a result, the nationwide production and logistical activities in China have gradually resumed. Since May 2020, the operating entity's operations, including the activities of its manufacturers or distributors, have not endured any material adverse impact from the COVID-19 restrictions. As of the date of this prospectus, the Chinese government has eased the COVID-19 restrictions. We expect that there will not be any nationwide government-mandated lockdowns in China in the forseeable future. Even if some of the operating entity's manufacturers and distributors are subject to regional lockdowns, the operating entity expects to take prompt measures to lessen any disruptions in the production and logistical activities, including cooperating with alternative manufacturers and additional distributors. Despite the operating entity's efforts to manage and remedy the impact of COVID-19, the ultimate impact also depends on factors beyond its control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects. These factors could adversely affect the operating entity's business, and, in turn, our financial condition and results of operations.

***The operating entity may not succeed in its cost saving strategies.***

The operating entity continues to identify and execute on cost-saving opportunities designed to improve operational efficiencies and optimize project management. The specific cost-saving strategies designed by the operating entity include selecting cost-efficient suppliers while ensuring product quality and safety at the same time, optimizing the cost-effectiveness of the commission reward structure to encourage the operating entity's professional sales team to expand the market share, and cooperating with distributors and logistics service providers that offer quality services and execute on cost-saving strategies. We have not implemented all of these cost-saving strategies and we do not yet have quantifiable data to demonstrate any material impact on our business. There is no assurance that the operating entity will be able to achieve or sustain cost savings, realize or sustain operational efficiencies, or achieve other benefits that it may initially expect. Such failures may result in various unnecessary costs, temporary operational inefficiencies, and could negatively impact our financial condition.

***Our historical financial and operating results are not indicative of future performance and our financial and operating results may fluctuate.***

During the six months ended June 30, 2022, our revenue was $3,891,408 and our net income was $567,472. In the fiscal years ended December 31, 2021, and 2020, our revenue was $6,655,515 and $3,096,924, respectively, representing a growth rate of 114.91%. For the same fiscal years, our net income was $775,522 and $49,436, respectively, representing a growth rate of 1468.74%. The results of operations may vary from period to period in response to a variety of factors beyond control, including general economic conditions, regulatory actions, changes in consumer spending and preferences, as well as non-recurring charges incurred in connection with extraordinary transactions. Due to these and other factors, our historical financial performance, growth rates, profitability and operating results may not indicate future performance and you should not rely on them to predict our future performance.

***The entry into strategic alliances, or mergers and acquisitions may expose the operating entity to additional risks.***

The operating entity may consider potential strategic alliances that would complement the current product offerings, increase the size and geographic scope of its operations or otherwise present growth and/or other opportunities. Any such developments may entail numerous risks, including:

● competition with established competitors in new markets, who may have greater knowledge of those markets and resources to expend in those markets than the operating entity;

● difficulties in assimilating acquired operations or products;

● difficulties in understanding and adapting to local cultural norms, including, but not limited to, consumption patterns, seasonal effects, consumer trends and preferences, as well seasonal effects;

● diversion of management's attention from the core business;

● substantial costs, delays or other operational or financial difficulties, including difficulties in leveraging the expected synergies among the businesses to increase sales and obtain cost savings or achieve expected results;

● adverse effects on existing business relationships with suppliers and customers;

● certain other risks involved in entering markets in which the operating entity has limited or no prior experience; and

● reputational and other risks regarding the operating entity's ability to enter new markets successfully or to implement such strategic alliances, including obtaining financing which could dilute the interests of its shareholders, result in an increase in its indebtedness, or both.

The operating entity's failure to enter new markets, enter into strategic alliances or complete the integration of any new or acquired businesses successfully could have a material adverse effect on its business, prospects, financial condition, liquidity, results of operations and cash flows. In addition, there can be no assurance that the operating entity will be able to identify suitable candidates or consummate such transactions on favorable terms or at all.

***Adverse litigation judgments or settlements resulting from legal proceedings could reduce the profits or negatively affect the operating entity's business operations.***

As of the date of this prospectus, the operating entity is not a party to any material lawsuits and we are not aware of any threats of lawsuits against the operating entity that are anticipated to have a major impact on the operating entity's business. The operating entity may, in the future, be subject to allegations, claims and legal actions arising in the ordinary course of its business, which may include claims by shareholders and claims by third parties, including manufacturers, distributors, business partners, or regulators. If any of these proceedings is determined adversely against the operating entity, or results in judgments, fines or settlements involving a payment of a material sum of money, it could materially and adversely affect the operating entity's business, financial condition, and results of operations. In addition, the associated negative publicity could adversely affect the operating entity's reputation and brand. Even the successful defense of these proceedings may cause the operating entity to incur substantial legal costs and may divert management's attention and resources.

***The operating entity's insurance coverage may not be sufficient to cover all losses and/or liabilities that may be incurred by its operations.***

The operating entity maintains certain insurance policies to safeguard against risks and unexpected events. For example, the operating entity provides social security insurance, including endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance for its employees in compliance with the applicable PRC laws. The operating entity maintains auto insurance as required by the PRC laws. However, there is no assurance that the operating entity's insurance coverage will always be available or will always be sufficient to cover any damages resulting from any kind of claims. In addition, there are certain types of risks that may not be covered by the operating entity's policies, such as war, force majeure or certain business interruptions. In addition, there is no assurance that when the current insurance policies expire, the operating entity will be able to renew them at sufficient and favorable terms. Claims that are not covered by the policies or the failure to renew the insurance policies may materially adversely affect the operating entity's business.

**Risks Related to Doing Business in the PRC**

***Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on the operating entity's business.***

The Company conducts substantially all of the operations through the operating entity in China. Accordingly, the operating entity's business, financial condition, results of operations and growth prospects may be influenced to a significant degree by political, economic and social conditions in China generally. The Chinese economy differs from the economies of most of the developed countries in many respects, including the level of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese government also exercises significant control over China's economic growth through allocating resources, setting monetary policy, and providing preferential treatment to particular industries or companies.

While the Chinese economy has experienced significant growth over the past four decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing since 2012. Any adverse changes in economic conditions in China, in the policies of the Chinese government, or in social conditions in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect the operating entity's business and operating results, lead to reduction in demand for its services and adversely affect its competitive position. The Chinese government has implemented various measures to encourage economic growth and guide allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on the operating entity. For example, the operating entity's financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations. In addition, in the past the Chinese government has implemented certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may, in turn, adversely affect our operating results.

***The legal system of the PRC is not fully developed and there are inherent uncertainties that may affect the protection afforded to the operating entity's business and our shareholders.***

The PRC legal system is a civil law system based on written statutes. Prior court decisions under the civil law system may be cited for reference but have limited precedential value. Since these laws and regulations are relatively new and the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and the enforcement of these laws, regulations and rules involves uncertainties.

In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall effect of legislation over the past decades has significantly enhanced the protections afforded to various forms of foreign investments in China. However, recently enacted laws and regulations may not sufficiently cover all aspects of economic activities in China. In particular, the interpretation and enforcement of these laws and regulations involve uncertainties. Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory provisions and contractual terms, it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection that we enjoy. These uncertainties may affect our judgment on the relevance of legal requirements and our ability to enforce our contractual rights or tort claims. Furthermore, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all and may have retroactive effect. As a result, we may not be aware of a violation of any of these policies and rules until sometime after the violation. In addition, any administrative and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.

***The Chinese government exerts substantial influence over the manner in which the PRC subsidiaries conduct their business activities, may intervene or influence such operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in such operations and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our securities to significantly decline or be worthless.***

The Chinese government has exercised, and continues to exercise, substantial control over virtually every sector of the Chinese economy through regulation and state ownership. The PRC subsidiaries' ability to operate in China may be harmed by changes in Chinese laws and regulations, including those relating to securities regulation, data protection, cybersecurity and mergers and acquisitions and other matters. The PRC central or local governments may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on the PRC subsidiaries' part for compliance with such regulations or interpretations. Government actions in the future could significantly affect economic conditions in China or particular regions thereof, and could require the PRC subsidiaries to materially change operating activities or divest themselves of any interests they hold in Chinese assets. The PRC subsidiaries' business may be subject to various types of government and regulatory interference, such as the requirement to gain the approval from CSRC before this listing and to conduct a cyber security review. The PRC subsidiaries may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply. The PRC subsidiaries' operations could be adversely affected by existing or future laws and regulations relating to the maternal and newborn skincare business or industry.

Any of these events could result in a material change in the PRC subsidiaries' operations and the value of our Ordinary Shares. The Chinese government has indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. Any such actions by the Chinese government could significantly limit or completely hinder our Company's ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless.

***The approval and/or other requirements of the CSRC or other PRC government authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, our Company cannot predict whether or how soon our Company will be able to obtain such approval.***

The Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, purport to require offshore special purpose vehicles that are controlled by PRC companies or individuals and that have been formed for the purpose of seeking a public listing on an overseas stock exchange through acquisitions of PRC domestic companies or assets to obtain CSRC approval prior to publicly listing their securities on an overseas stock exchange. There remains uncertainty as to how the M&A Rules will be interpreted or implemented in the context of an overseas offering.

On July 6, 2021, the relevant PRC government authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities, which provided that the administration and supervision of overseas-listed China-based companies will be strengthened, and the special provisions of the State Council on overseas issuance and listing of shares by such companies will be revised, clarifying the responsibilities of domestic industry competent authorities and regulatory authorities.

On December 24, 2021, the CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures", and collectively with the Draft Administrative Provisions, the "Draft Rules Regarding Overseas Listing"), which stipulate that Chinese-based companies, or the issuer, shall fulfill the filing procedures after the issuer makes an application for initial public offering and listing in an overseas market, and certain overseas offering and listing such as those that constitute a threat to or endanger national security, as reviewed and determined by competent authorities under the State Council in accordance with law, may be prohibited under the Draft Rules Regarding Overseas Listing. On February 17, 2023, with the approval of the State Council, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "Trial Measures") and five supporting guidelines, which will come into effect on March 31, 2023. According to the Trial Measures, among other requirements, (1) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures with the CSRC; if a domestic company fails to complete the filing procedures, such domestic company may be subject to administrative penalties; and (2) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and such filings shall be submitted to the CSRC within three business days after the submission of the overseas offering and listing application. On the same day, the CSRC also held a press conference for the release of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which clarifies that (1) on or prior to the effective date of the Trial Measures, domestic companies that have already submitted valid applications for overseas offering and listing but have not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and must complete the filing before the completion of their overseas offering and listing; (2) a six-month transition period will be granted to domestic companies which, prior to the effective date of the Trial Measures, have already obtained the approval from overseas regulatory authorities or stock exchanges, but have not completed the indirect overseas listing; if domestic companies fail to complete the overseas listing within such six-month transition period, they shall file with the CSRC according to the requirements; and (3) the CSRC will solicit opinions from relevant regulatory authorities and complete the filing of the overseas listing of companies with contractual arrangements which duly meet the compliance requirements, and support the development and growth of these companies.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither we nor the PRC subsidiaries have been subject to any investigation, or received any notice, warning, or sanction from the CSRC or other applicable government authorities related to this offering. However, we will be required to file with the CSRC in relation to this offering and listing if we cannot obtain the approvals from the SEC and Nasdaq before March 31, 2023, or if we obtain the approvals on or before March 31, 2023 but fail to complete this offering and listing on or before September 30, 2023. If we are required to file with the CSRC for this offering and listing, there is no assurance that we can complete such filing in a timely manner or even at all. Any failure by us to comply with such filing requirements may result in an order to rectify, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.

In addition, if the PRC government authorities later promulgate new rules or explanations requiring that our Company and the PRC subsidiaries obtain their approvals for filings, registrations or other kinds of authorizations for an offering, there is no assurance that our Company and the PRC subsidiaries can obtain the approval, authorizations, or complete required procedures or other requirements in a timely manner, or at all, or obtain a waiver of the requisite requirements if and when procedures are established to obtain such a waiver.

***Recent greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our offering.***

On December 28, 2021, 13 governmental departments of the PRC, including the CAC, jointly promulgated the Cybersecurity Review Measures, which became effective on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to critical information infrastructure operators ("CIIOs") that intend to purchase Internet products and services, net platform operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing. The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.

On November 14, 2021, the CAC published the Draft Regulations on the Network Data Security Administration (Draft for Comments) (the "Security Administration Draft"), which provides that data processing operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the CAC. According to the Security Administration Draft, data processing operators shall apply for a cybersecurity review by the relevant Cyberspace Administration of the PRC under certain circumstances, such as (i) mergers, restructurings, and divisions of Internet platform operators that hold large amount of data relating to national security, economic development, or public interest which affects or may affect the national security, (ii) overseas listings of data processors that process personal data for more than one million individuals, (iii) Hong Kong listings of data processors that affect or may affect national security, and (iv) other data processing activities that affect or may affect the national security. The deadline for public comments on the Security Administration Draft was December 13, 2021.

The PRC Data Security Law, which was promulgated by the SCNPC on June 10, 2021 and took effect on September 1, 2021, requires data collection to be conducted in a legitimate and proper manner, and stipulates that, for the purpose of data protection, data processing activities must be conducted based on data classification and hierarchical protection system for data security.

On August 20, 2021, the SCNPC promulgated the Personal Information Protection Law of the People's Republic of China, or the Personal Information Protection Law, which integrates the scattered rules with respect to personal information rights and privacy protection and took effect on November 1, 2021.

In addition, the PRC regulatory authorities have recently taken steps to strengthen the regulations on data protection and conducted several rounds of relevant inspections. The Rules on the Scope of Necessary Personal Information for Common Types of Mobile Internet Applications, which came into effect on May 1, 2021 (the "Necessary Personal Information Rules"), require that the operators of mobile apps shall not deny the users who do not consent to the collection of unnecessary personal information from using the basic functions and services of such apps. In addition, under the Necessary Personal Information Rules, "necessary personal information" refers to personal information necessary for ensuring the normal operation of an app's basic functional services. The basic functional services of the apps are providing instant messaging services through texts, pictures, voice, and video, where the necessary personal information includes mobile phone numbers and account numbers of registered users and lists of accounts of instant messaging contact persons.

As of the date of this prospectus, the operating entity has not received any notice from any authorities identifying the operating entity as a CIIO or requiring it to undertake a cybersecurity review or network data security review by the CAC.

There remains uncertainty as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect, the operating entity will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on it. Furthermore, many specific requirements of the Personal Information Protection Law and other laws related to data securities remain to be clarified by the CAC, other regulatory authorities, and the courts, for practical application. The operating entity may be required to adjust its business practices to comply with the personal information protection laws and regulations. There is no assurance that PRC regulatory agencies, including the CAC, would take the same view as we do, and there is no assurance that the operating entity can fully or timely comply with such laws should they be deemed to be applicable. There is no certainty as to how such review or prescribed actions would impact the operating entity's operations and there is no assurance that any clearance can be obtained, or maintained, if approved, or any actions that may be required can be taken in a timely manner, or at all.

***PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject the operating entity to liability or penalties, limit our ability to inject capital into the operating entity, limit the operating entity's ability to increase its registered capital or distribute profits to our Company, or may otherwise adversely affect our Company.***

The Circular on Relevant Issues Relating to Domestic Resident's Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, was promulgated by the SAFE in July 2014 that requires PRC residents or entities to register with SAFE or its local branch, currently with local bank according to Notice of the State Administration of Foreign Exchange on Further Simplifying and Improving Policies for the Foreign Exchange Administration of Direct Investment issued by SAFE on February 13, 2015, in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. In addition, any PRC resident who is a direct or indirect shareholder of an offshore company is required to update the previously filed registration with the local branch of the SAFE, with respect to that offshore company, to reflect any material change involving its round-trip investment, capital variation, such as an increase or decrease in capital, transfer or swap of shares, merger or division. These regulations apply to our shareholders who are PRC residents and may apply to any offshore acquisitions that the Company makes in the future.

Our Company has requested PRC residents holding direct or indirect interest in our Company to our knowledge to make the necessary applications, filings and amendments as required by applicable foreign exchange regulations. Our Company is committed to complying with and to ensuring that our shareholders who are subject to the regulations will comply with the relevant SAFE rules and regulations. However, due to the inherent uncertainty in the implementation of the regulatory requirements by PRC authorities, such registration might not be always practically available in all circumstances as prescribed in those regulations. In addition, our Company may not always be able to compel them to comply with SAFE Circular 37 or other related regulations. There is no assurance that the SAFE or its local branches will release explicit requirements or interpret the relevant PRC Laws otherwise. Failure by any such shareholders to comply with SAFE Circular 37 may result in restrictions on the foreign exchange activities of the relevant PRC enterprise and may also subject the relevant PRC resident to penalties under the PRC foreign exchange administration regulations. As of the date of this prospectus, the PRC resident shareholders have completed foreign exchange registration under the SAFE Circular 37 and other related regulations.

***PRC laws and regulations establish more complex procedures for some acquisitions of PRC companies by foreign investors, which could make it more difficult for our Company to pursue growth through acquisitions in China.***

A number of PRC laws and regulations, including the M&A Rules, the Anti-monopoly Law promulgated by the Standing Committee of the National People's Congress in August 2007, the Rules of Ministry of Commerce on Implementation of Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors promulgated by the Ministry of Commerce in August 2011, and the Measures for the Security Review of Foreign Investment promulgated by the National Development and Reform Commission of the PRC, or NDRC, and the Ministry of Commerce in December 2020 have established procedures and requirements that are expected to make merger and acquisition activities in China by foreign investors more time-consuming and complex. These include requirements in some instances that the approval from the Ministry of Commerce be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies. PRC laws and regulations also require certain merger and acquisition transactions involving an industry that implicates national security to be subject to merger control review or security review.

In the future, our Company may further grow our business by acquiring businesses. Complying with the requirements of the above-mentioned regulations and other relevant rules to complete such transactions could be time-consuming, and any required approval processes, including obtaining approval from the Ministry of Commerce or its local counterparts may delay or inhibit our ability to complete such transactions. Our ability to expand our business or maintain or expand our market share through future acquisitions would be materially and adversely affected.

***The Company may rely on dividends and other distributions on equity paid by the PRC subsidiaries to fund any cash and financing requirements it may have, and any limitation on the ability of the PRC subsidiaries to make payments to the Company could have a material and adverse effect on the business.***

The Company is a holding company incorporated in the Cayman Islands and operates its business principally through the operating entity in the PRC. Therefore, the availability of funds to the Company to pay dividends to the Company's shareholders and to service its indebtedness depends upon dividends received from the PRC subsidiaries. The PRC subsidiaries' ability to distribute dividends is based upon its distributable earnings. Current PRC regulations permit the PRC subsidiaries to pay dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, the PRC subsidiaries are required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entities in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. These reserves are not distributable as cash dividends. If the PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to the Company. Any limitation on the ability of the PRC subsidiaries to distribute dividends or other payments to the Company could materially and adversely limit the ability to grow, make investments or acquisitions that could be beneficial to the businesses, pay dividends or otherwise fund and conduct the business.

Under the Law of the PRC on Enterprise Income Tax and Regulations for the Implementation of the Law on Enterprise Income Tax, dividends, interests, rent or royalties payable by a foreign-invested enterprise to any of its foreign non-resident enterprise investors, and proceeds from any such foreign enterprise investor's disposition of assets (after deducting the net value of such assets) are subject to a 10% withholding tax, unless the foreign enterprise investor's jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. The Cayman Islands, where the Company is incorporated, does not have such a tax treaty with China. If the PRC subsidiaries declare and distribute profits to us, such payments will be subject to withholding tax, which will increase the tax liability and reduce the amount of cash available to the Company.

***PRC regulations of loans and direct investment by offshore holding companies to PRC entities may delay or prevent our Company from using the proceeds of our offshore financing to make loans or additional capital contributions to the operating entity, which could materially and adversely affect our liquidity and business.***

The Company may transfer funds to the operating entity or finance the operating entity by means of shareholders' loans or capital contributions after completion of this offering. Any loans to the operating entity, which are foreign-invested enterprises, cannot exceed a statutory limit, and shall be filed with the State Administration of Foreign Exchange, or SAFE, or its local counterparts. Furthermore, any capital contributions the Company makes to the operating entity shall be registered with the PRC State Administration for Market Regulation or its local counterparts, and filed with the Ministry of Commerce ("MOFCOM") or its local counterparts.

On March 30, 2015, SAFE promulgated the Circular on Reforming the Administration Measures on Conversion of Foreign Exchange Registered Capital of Foreign-invested Enterprises, or SAFE Circular 19. SAFE Circular 19, however, allows foreign invested enterprises in China to use their registered capital settled in RMB converted from foreign currencies to make equity investments, but the registered capital of a foreign invested company settled in RMB converted from foreign currencies remains not allowed to be used, among other things, for investment in the security markets, or offering entrustment loans, unless otherwise regulated by other laws and regulations. On June 9, 2016, SAFE further issued the Circular of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts, or SAFE Circular 16, which, among other things, amended certain provisions of Circular 19. According to SAFE Circular 19 and SAFE Circular 16, the flow and use of the RMB capital converted from foreign currency-denominated registered capital of a foreign invested company is regulated such that Renminbi capital may not be used for purposes beyond its business scope or to provide loans to non-affiliates unless otherwise permitted under its business scope. On October 23, 2019, SAFE promulgated the Circular of the State Administration of Foreign Exchange on Further Promoting the Facilitation of Cross-Border Trade and Investment, or SAFE Circular 28, which removes the restrictions on domestic equity investments by non-investment foreign-invested enterprises with their capital funds, provided that certain conditions are met. The applicable foreign exchange circulars and rules may limit our ability to transfer the net proceeds from this offering and convert the net proceeds into RMB, which may adversely affect our financial condition and results of operations.

***The Company may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption laws.***

The Company is subject to the U.S. Foreign Corrupt Practices Act (the "FCPA"), and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by U.S. persons and issuers as defined by the statute for the purpose of obtaining or retaining business. The PRC subsidiaries are subject to Chinese anti-corruption laws, which strictly prohibit the payment of bribes to government officials. The PRC subsidiaries have operations, agreements with third parties, and make sales in China, which may experience corruption. The activities in China create the risk of unauthorized payments or offers of payments by the employees, consultants or distributors, because these parties are not always subject to our control.

Although we believe the Company and the PRC subsidiaries have complied in all material respects with the provisions of the FCPA and Chinese anti-corruption laws as of the date of this prospectus, the existing safeguards and any future improvements may prove to be less than effective, and the employees, consultants or distributors may engage in conduct for which the Company or the PRC subsidiaries might be held responsible. Violations of the FCPA or Chinese anti-corruption laws may result in severe criminal or civil sanctions, and the Company or the PRC subsidiaries may be subject to other liabilities, which could negatively affect the operating results and financial condition. In addition, the government may seek to hold the Company liable for successor liability FCPA violations committed by companies in which the Company invests or that the Company acquires.

***Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations, and affect the value of your investment.***

The PRC government imposes controls and restrictions on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The majority of our income is received in Renminbi and shortages in the availability of foreign currencies may restrict our ability to pay dividends or other payments, or otherwise satisfy foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior approval from SAFE, by complying with certain procedural requirements. Approval from appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of the PRC to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, our Company may not be able to pay dividends in foreign currencies to our shareholders.

***Fluctuations in exchange rates could result in foreign currency exchange losses.***

The value of Renminbi against the U.S. dollar and other currencies fluctuates, is subject to changes resulting from the PRC government's policies and depends to a large extent on domestic and international economic and political developments as well as supply and demand in the local market. In July 2005, the PRC government changed its decades-old policy of pegging the value of Renminbi to the U.S. dollar, and Renminbi appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between Renminbi and the U.S. dollar remained within a narrow band. Since June 2010, Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. With the development of the foreign exchange market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce further changes to the exchange rate system and there is no assurance that Renminbi will not appreciate or depreciate significantly in value against the U.S. dollar in the future. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between Renminbi and the U.S. dollar in the future.

The proceeds from this offering will be received in U.S. dollars. As a result, any appreciation of the Renminbi against the U.S. dollar may result in the decrease in the value of our proceeds from this offering. Conversely, any depreciation of the Renminbi may adversely affect the value of, and any dividends payable on, our Ordinary Shares in foreign currency. In addition, there are limited instruments available for our Company to reduce our foreign currency risk exposure at reasonable costs. All of these factors could materially and adversely affect our financial condition, results of operations, and prospects, and could reduce the value of, and dividends payable on, our Ordinary Shares in foreign currency terms.

***The enforcement of the PRC Labor Contract Law and other labor-related regulations in the PRC may adversely affect the operating entity's business and results of operations.***

The PRC Labor Contract Law became effective on January 1, 2008 and was amended on December 28, 2012. The Labor Contract Law introduced specific provisions related to fixed-term employment contracts, part-time employment, probationary periods, consultation with labor unions and employee assemblies, employment without a written contract, dismissal of employees, severance, and collective bargaining to enhance previous PRC labor laws. Under the Labor Contract Law, an employer is obligated to sign an unlimited-term labor contract with any employee who has worked for the employer for ten consecutive years. Further, if an employee requests or agrees to renew a fixed exchange rates that has already been entered into twice consecutively, the resulting contract must have an unlimited term, subject to certain exceptions. With certain exceptions, an employer must pay severance to an employee where a labor contract is terminated or expires. In addition, the PRC government authorities have continued to introduce various new labor-related regulations since the effectiveness of the Labor Contract Law.

Under the PRC Social Insurance Law and the Administrative Measures on Housing Fund, employees are required to participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance, maternity insurance, and housing provident funds and employers are required, together with their employees or separately, to pay the social insurance premiums and housing provident funds for their employees. If the operating entity fails to make adequate social insurance and housing fund contributions, it may be subject to fines and legal sanctions, and its business, financial conditions and results of operations may be adversely affected. As of June 30, 2022, the aggregate amount of underpayment of employee social insurance and housing provident funds was RMB449,290.28 (approximately $66,944), with an estimated maximum penalty of approximately RMB783,704.52 (approximately $116,772). Therefore, the aggregated amount of potential liability related to this noncompliance is estimated to be RMB1,232,994.80 (approximately $183,716) (including the underpayment and potential penalty of approximately RMB783,704.52 (approximately $116,772) for the six months ended June 30, 2022).

These laws designed to enhance labor protection tend to increase the PRC subsidiaries' labor costs. In addition, as the interpretation and implementation of these regulations are still evolving, the PRC subsidiaries' employment practices may not be at all times be deemed in compliance with the regulations. As a result, they could be subject to penalties or incur significant liabilities in connection with labor disputes or investigations.

***The custodians or authorized users of our controlling non-tangible assets, including chops and seals, may fail to fulfill their responsibilities, or misappropriate or misuse these assets.***

Under the PRC law, legal documents for corporate transactions, including agreements and contracts are executed using the chop or seal of the signing entity or with the signature of a legal representative whose designation is registered and filed with relevant PRC market regulation administrative authorities.

In order to secure the use of chops and seals, the PRC subsidiaries have established internal control procedures and rules for using these chops and seals. In any event that the chops and seals are intended to be used, the responsible personnel will apply and the application will be verified and approved by authorized employees in accordance with internal control procedures and rules. In addition, in order to maintain the physical security of the chops, the PRC subsidiaries generally have them stored in secured locations accessible only to authorized employees. Although the PRC subsidiaries monitor such authorized employees, the procedures may not be sufficient to prevent all instances of abuse or negligence. There is a risk that the employees could abuse their authority, for example, by entering into a contract not approved by the PRC subsidiaries or seeking to gain control of one of the subsidiaries. If any employee obtains, misuses or misappropriates the chops and seals or other controlling non-tangible assets for whatever reason, there could be disruptions to the normal operations. The PRC subsidiaries may have to take corporate or legal action in such an event, which could involve significant time and resources to resolve and divert management from the operations.

***If our Company is classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to our Company and our non-PRC shareholders.***

Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with its "de facto management body" within the PRC is considered a "resident enterprise" and will be subject to PRC enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts and properties of an enterprise. In 2009, the SAT issued a circular ("SAT Circular 82"), which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. One of the criteria is that a company's major assets, accounting books and minutes and files of its board and shareholders' meetings are located or kept in the PRC. In addition, the SAT issued Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation) on July 27, 2011, effective from September 1, 2011, providing more guidance on the implementation of the SAT Circular 82. This bulletin clarifies matters including residence status determination, post-determination administration and competent tax authorities. Although both the SAT Circular 82 and the bulletin only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the SAT's general position on how the "de facto management body" text should be applied in determining the tax resident status of all offshore enterprises.

Our Company believes none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." As substantially all of our management members are based in China, it remains unclear how the tax residency rule will apply to us. If the PRC tax authorities determine that our Company is a PRC resident enterprise for PRC enterprise income tax purposes, then our Company could be subject to PRC tax at a rate of 25% on its world-wide income, which could materially reduce our net income. In addition, our Company will also be subject to PRC enterprise income tax reporting obligations. Furthermore, if the PRC tax authorities determine that our Company is a PRC resident enterprise for enterprise income tax purposes, gains realized on the sale or other disposition of our Ordinary Shares may be subject to PRC tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC individuals (in each case, subject to the provisions of any applicable tax treaty), if such gains are deemed to be from PRC sources. It is unclear whether non-PRC shareholders of our Company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that our Company is treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our Ordinary Shares.

***Our business may be materially and adversely affected if the operating entity declares bankruptcy or becomes subject to a dissolution or liquidation proceeding.***

The Enterprise Bankruptcy Law of the PRC, or the Bankruptcy Law, came into effect on June 1, 2007. The Bankruptcy Law provides that an enterprise will be liquidated if the enterprise fails to settle its debts as and when they fall due and if the enterprise's assets are, or are demonstrably, insufficient to clear such debts. The operating entity holds substantially all of the assets that are important to our operations. If it undergoes a voluntary or involuntary liquidation proceeding, unrelated third-party creditors may claim rights to some or all of these assets, thereby materially and adversely affecting our financial condition and results of operations.

According to SAFE's Notice of the State Administration of Foreign Exchange on Further Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment, promulgated on November 19, 2012 and amended on May 4, 2015, and the Provisions on the Foreign Exchange Administration of Domestic Direct Investment of Foreign Investors, effective on May 13, 2013, if the operating entity undergoes a voluntary or involuntary liquidation proceeding, prior approval from SAFE for remittance of foreign exchange to the shareholders abroad is no longer required, but the operating entity still needs to conduct a registration process with the SAFE local branch. It is not clear whether "registration" is a mere formality or involves the kind of substantive review process undertaken by SAFE and its relevant branches in the past.

***If the Company becomes directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, the Company may have to expend significant resources to investigate and resolve the matter which could harm the Company's operations and reputation and could result in a loss of your investment in the Company's Ordinary Shares, especially if such matter cannot be addressed and resolved favorably.***

Recently, U.S. public companies that have substantially all of their operations in China, have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered around financial and accounting irregularities, a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of many U.S. listed Chinese companies has sharply decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on the Company. If the Company becomes the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, the Company will have to expend significant resources to investigate such allegations and/or defend the Company. This situation may be a major distraction to the Company's management. If such allegations are not proven to be groundless, the Company and business operations will be severely hampered and your investment in the Ordinary Shares could be rendered worthless.

***It may be difficult for overseas regulators to conduct investigation or collect evidence within China.***

Shareholder claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigation initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the Unities States may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase difficulties faced by you in protecting your interests.

***You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against our Company or our management named in the prospectus based on foreign laws.***

Our Company is an exempted company incorporated under the laws of the Cayman Islands. In addition, substantial amount of our assets is located in China and most of our senior executive officers and directors reside within China for a significant portion of the time. As a result, it may be difficult for you to effect service of process upon our Company or those persons inside mainland China. It may also be difficult for you to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against our Company and our officers and directors as none of them currently resides in the United States or has substantial assets located in the United States. In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of U.S. courts against our Company or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state.

The recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other forms of written arrangement with the United States that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against our Company or our directors and officers if they decide that the judgment violates the basic principles of PRC laws or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States.

***Failure to make adequate contributions to various employee benefit plans required by PRC regulations may subject the operating entity to penalties.***

The operating entity is required under PRC laws and regulations to participate in various government-sponsored employee benefit plans, including certain social insurance, housing funds, and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of the employees up to a maximum amount specified by the local government from time to time at locations where the operating entity operates its business. The requirement of employee benefit plans has not been implemented consistently by the local governments in China, given the different levels of economic development in different locations. In the event that the local governments deem the operating entity's contribution to be not sufficient, the operating entity may be subject to late contribution fees or fines in relation to any underpaid employee benefits, and its financial condition and results of operations may be adversely affected.

Currently, the operating entity is making contributions to the plans based on the minimum standards. However, PRC laws required such contributions to be based on the actual employee salaries up to a maximum amount specified by the local government. If the operating entity is subject to late contribution fees or fines in relation to the underpaid employee benefits, its financial condition and results of operations may be adversely affected. Although the operating entity has not received any order or notice from the local authorities, nor any claims or complaints from its current and former employees regarding such non-compliance, there is no assurance that the operating entity will not be subject to any order to rectify non-compliance in the future, nor that there will not be any employee complaints regarding social insurance payments or housing provident fund contributions against the operating entity, or that the operating entity will not receive any claims in respect of social insurance payments or housing provident contributions. See *"*Risk Factors*—Risks Related to Doing Business in China—The enforcement of the PRC Labor Contract Law and other labor-related regulations in the PRC may adversely affect the operating entity's business and results of operations."*

***The non-registration of lease agreements*** ***as required by PRC regulations may subject the operating entity to penalties.***

According to the Law on Administration of Urban Real Estate which took effect in January 1995 with the latest amendment in August 2019 and the Administrative Measures on Leasing of Commodity Housing which was promulgated by Ministry of Housing and Urban-Rural Development on December 1, 2010 and took effect on February 1, 2011, the parties to a housing tenancy shall go through the housing tenancy registration formalities with the competent construction (real estate) departments of the municipalities directly under the central government, cities and counties where the housing is located within 30 days after the housing tenancy contract is signed.

As of the date of this prospectus, the operating entity has not registered three leases with the local housing administration authorities as required under the PRC laws. The non-registration of these lease agreements would not affect the validity of such leases, but the operating entity might be ordered to rectify this non-compliance by the competent authorities and if the operating entity does not rectify within a prescribed period, a penalty of RMB1,000 (approximately $157) to RMB10,000 (approximately $1,568) per agreement may be imposed on it as a result of such non-compliance.

**Risks Related to our Ordinary Shares and This Offering**

***Recent joint statement by the SEC and the PCAOB proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act passed by the US Senate all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our offering.***

On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in emerging markets.

On May 18, 2020, Nasdaq filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in "Restrictive Market", (ii) adopt a new requirement relating to the qualification of management or board of director for Restrictive Market companies, and (iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company's auditors.

On May 20, 2020, the Senate passed the Holding Foreign Companies Accountable Act requiring a foreign company to certify it is not owned or manipulated by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company's auditors for three consecutive years, the issuer's securities are prohibited to trade on a national exchange.

On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the Holding Foreign Companies Accountable Act. The Company will be required to comply with these rules if the SEC identifies the Company as having a "non-inspection" year under a process to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the Holding Foreign Companies Accountable Act, including the listing and trading prohibition requirements described above. In May 2021, the PCAOB issued for public comment a proposed rule related to the PCAOB's responsibilities under the Holding Foreign Companies Accountable Act, which, according to the PCAOB, would establish a framework for the PCAOB to use when determining, as contemplated under the Holding Foreign Companies Accountable Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. The proposed rule was adopted by the PCAOB in September 2021, pending the final approval of the SEC to become effective.

On December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions.

On December 16, 2021, the PCAOB issued a report on its determinations that it is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in China and in Hong Kong because of positions taken by PRC and Hong Kong authorities in those jurisdictions. The PCAOB has made such determination, as mandated under the Holding Foreign Companies Accountable Act. Pursuant to each annual determination by the PCAOB, the SEC will, on an annual basis, identify issuers that have used non-inspected audit firms and thus are at risk of such suspensions in the future.

On August 26, 2022, the CSRC, the Ministry of Finance of the PRC, and the PCAOB signed a Statement of Protocol (the "Protocol"), governing inspections and investigations of audit firms based in China and Hong Kong. Pursuant to the Protocol, the PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination.

On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, and on December 29, 2022, legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act and amended the HFCA Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time period for triggering the delisting of our Company and the prohibition of trading in our securities if the PCAOB is unable to inspect our accounting firm at such future time.

If for whatever reason the PCAOB is unable to conduct full inspections of the Company's auditor, such uncertainty could cause the market price of the Ordinary Shares to be materially and adversely affected, and the Company's securities could be delisted or prohibited from being traded "over-the-counter". If the Company's securities were unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase the Ordinary Shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative impact on the price of the Ordinary Shares.

The Company's auditor, TPS Thayer, LLC, the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Such auditor is headquartered in Sugar Land, TX, and has been inspected by the PCAOB on a regular basis. It is not subject to the determinations issued by the PCAOB on December 16, 2021.

The recent developments would add uncertainties to our offering and may result in prohibitions on the trading of our Ordinary Shares on the Nasdaq Stock Market, if our auditors fail to meet the PCAOB inspection requirement in time.

***There has been no public market for our Ordinary Shares prior to this offering, and you may not be able to resell our Ordinary Shares at or above the price you paid, or at all.***

Prior to this offering, there has been no public market for our Ordinary Shares. The initial offering price of our Ordinary Shares is the result of negotiations between our Company and the underwriter, and the initial offering price may differ significantly from the market price for our Ordinary Shares following the offering. There is no assurance that an active trading market for our Ordinary Shares will develop or that the market price for our Ordinary Shares will not decline below the initial public offering price.

***Because our initial public offering price is substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution.***

If you purchase the Ordinary Shares in this offering, you will pay more for your Ordinary Shares than the amount paid by our existing shareholders for their Ordinary Shares on a per share basis. As a result, you will experience immediate and substantial dilution of $[●] per share, representing the difference between our net tangible book value per share of $[●] as of [●], after giving effect to this offering and an assumed initial public offering price of $[●] per share. In addition, you may experience further dilution to the extent that our Ordinary Shares are issued upon the exercise of share options.

***The trading price of our Ordinary Shares is likely to be volatile, which could result in substantial losses to investors.***

The trading price of our Ordinary Shares is likely to be volatile and could fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors, including the performance and fluctuation of the market prices of other companies with business operations located mainly in China that have listed their securities in the United States. In addition to market and industry factors, the price and trading volume for our Ordinary Shares may be highly volatile for factors specific to our own operations, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Actual
 or anticipated variations in our revenues, earnings, cash flow, and changes or revisions
 of our expected results;

&nbsp;&nbsp;&nbsp;&nbsp;· fluctuations
 in operating metrics;

&nbsp;&nbsp;&nbsp;&nbsp;· announcements
 of new investments, acquisitions, strategic partnerships, or joint ventures by our Company
 or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;· announcements
 of new products and services and expansions by our Company or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in financial estimates by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;· announcements
 of studies and reports relating to the quality of our product and service offerings or those
 of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in the economic performance or market valuations of other companies in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· detrimental
 negative publicity about our Company, our competitors, or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· additions
 or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;· regulatory
 developments that affect our Company or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· general
 economic or political conditions in China or elsewhere in the world;

&nbsp;&nbsp;&nbsp;&nbsp;· fluctuations
 of exchange rates between the RMB and the U.S. dollar; and

&nbsp;&nbsp;&nbsp;&nbsp;· potential
 litigation or regulatory investigations.

Any of these factors may result in large and sudden changes in the volume and price at which Ordinary Shares will trade. Furthermore, the stock market in general experiences price and volume fluctuations that are often unrelated or disproportionate to the operating performance of companies like us. These broad market and industry fluctuations may adversely affect the market price of our Ordinary Shares. Volatility or a lack of positive performance in the price of our Ordinary Shares may also adversely affect our ability to retain key employees, most of whom have been granted equity incentives.

In the past, shareholders of public companies have often brought securities class action suits against companies following periods of instability in the market price of their securities. If our Company were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our operations and require our Company and/or the operating entity to incur significant expenses to defend the suit, which could harm our results of operations. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, our Company may be required to pay significant damages, which could have a material adverse effect on our financial condition and results of operations.

 ***The price of our Ordinary Shares could be subject to rapid and substantial volatility.***

  ****

There have been instances of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with recent initial public offerings, especially among those with relatively smaller public floats. As a relatively small-capitalization company with relatively small public float, we may experience greater stock price volatility, extreme price run-ups, lower trading volume and less liquidity than large-capitalization companies. In particular, our Ordinary Shares may be subject to rapid and substantial price volatility, low volumes of trades and large spreads in bid and ask prices. Such volatility, including any stock-run up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.

In addition, if the trading volumes of our Ordinary Shares are low, persons buying or selling in relatively small quantities may easily influence prices of our Ordinary Shares. This low volume of trades could also cause the price of our Ordinary Shares to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of our Ordinary Shares may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our Ordinary Shares. As a result of this volatility, investors may experience losses on their investment in our Ordinary Shares. A decline in the market price of our Ordinary Shares also could adversely affect our ability to issue additional Ordinary Shares or other of our securities and our ability to obtain additional financing in the future. There is no assurance that an active market in our Ordinary Shares will develop or be sustained. If an active market does not develop, holders of our Ordinary Shares may be unable to readily sell the shares they hold or may not be able to sell their shares at all.

***If securities or industry analysts cease to publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and trading volume could decline.***

The trading market for the Ordinary Shares will be influenced by research or reports that industry or securities analysts publish about our business. If one or more analysts who cover our Company downgrade the Ordinary Shares, the market price for the Ordinary Shares would likely decline. If one or more of these analysts cease to cover our Company or fail to regularly publish reports on our Company, our Company could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume for the Ordinary Shares to decline.

***Substantial future sales or perceived potential sales of our Ordinary Shares in the public market could cause the price of our Ordinary Shares to decline.***

Sales of our Ordinary Shares in the public market after this offering, or the perception that these sales could occur, could cause the market price of our Ordinary Shares to decline. All Ordinary Shares sold in this offering will be freely transferable without restriction or additional registration under the Securities Act. The remaining Ordinary Shares issued and outstanding after this offering and the concurrent private placements will be available for sale, upon the expiration of the [●]-day lock-up period beginning from the date of this prospectus, subject to volume and other restrictions as applicable provided in Rules 144 and 701, as applicable, under the Securities Act. Our pre-IPO shareholders may be able to sell their Ordinary Shares under Rule 144 after the completion of this offering. Because these shareholders have paid a lower price per Ordinary Share than participants in this offering, when they are able to sell their pre-IPO shares under Rule 144, they may be more willing to accept a lower sales price than the IPO price. This fact could impact the trading price of the Ordinary Shares following the completion of the offering, to the detriment of participants in this offering. Under Rule 144, before our pre-IPO shareholders can sell their shares, in addition to meeting other requirements, they must meet the required holding period. To the extent shares are released before the expiration of the lock-up period and sold into the market, the market price of our Ordinary Shares could decline.

***Our Company currently does not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of our Ordinary Shares for return on your investment.***

Our Company currently intends to retain most, if not all, of the available funds and any future earnings after this offering to fund development and growth. As a result, our Company does not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our Ordinary Shares as a source for any future dividend income.

Our Company's board of directors has complete discretion as to whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, our Company's shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our Company's directors. Under Cayman Islands law, a Cayman Islands company may pay a dividend out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if our Company's board of directors decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on the future results of operations and cash flow, our Company's capital requirements and surplus, the amount of distributions, if any, received by our Company from the PRC subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our Company's board of directors. Accordingly, the return on your investment in our Ordinary Shares will likely depend entirely upon any future price appreciation of our Ordinary Shares. There is no guarantee that our Ordinary Shares will appreciate in value after this offering or even maintain the price at which you purchased the Ordinary Shares. You may not realize a return on your investment in our Ordinary Shares and you may even lose your entire investment in our Ordinary Shares.

***Our Company has broad discretion in the use of the net proceeds from our initial public offering and may not use them effectively.***

To the extent (i) our Company raises more money than required for the purposes explained in the section titled "Use of Proceeds" or (ii) our Company determines that the proposed uses set forth in that section are no longer in the best interests of our Company, our Company cannot specify with any certainty the particular uses of such net proceeds that our Company will receive from our initial public offering. Our management will have broad discretion in the application of such net proceeds, including working capital and other general corporate purposes, and our Company may spend or invest these proceeds in a way with which the shareholders disagree. The failure by our management to apply these funds effectively could harm the business and financial condition. Pending their use, our Company may invest the net proceeds from the initial public offering in a manner that does not produce income or that loses value.

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because our Company is incorporated under Cayman Islands law.***

Our Company is an exempted company incorporated under the laws of the Cayman Islands. Our corporate affairs are governed by our memorandum and articles of association, the Companies Act of the Cayman Islands, and the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by our minority shareholders and the fiduciary duties of our directors to our Company under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands and from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United States. Some U.S. states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have the standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like our Company have no general rights under Cayman Islands law to inspect corporate records (other than the memorandum and articles of association and any special resolutions passed by such companies, and the register of mortgages and charges of such companies) or to obtain copies of lists of shareholders of these companies. Our directors have discretion under our post-offering memorandum and articles of association that will become effective immediately prior to completion of this offering to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of our board of directors or controlling shareholders than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Companies Act of the Cayman Islands and the laws applicable to companies incorporated in the United States and their shareholders, see "Description of Share Capital — Differences in Corporate Law."

***Certain judgments obtained against our Company by our shareholders may not be enforceable.***

Our Company is a Cayman Islands company and substantially all of our assets are located outside of the United States. In addition, most of our current directors and officers are nationals and residents of countries other than the United States. As a result, it may be difficult or impossible for you to bring an action against our Company or against these individuals in the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

***There can be no assurance that our Company will not be a passive foreign investment company ("PFIC") for United States federal income tax purposes for any taxable year, which could subject United States holders of our Ordinary Shares to significant adverse United States federal income tax consequences.***

A non-United States corporation will be a passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year if either (i) at least 75% of its gross income for such taxable year is passive income or (ii) at least 50% of the value of its assets (based on average of the quarterly values of the assets) during such year is attributable to assets that that produce or are held for the production of passive income. Based on the current and anticipated value of our assets and the composition of our income assets, our Company does not expect to be a PFIC for United States federal income tax purposes for our current taxable year ended December 31, 2022 or in the foreseeable future. However, the determination of whether or not our Company is a PFIC according to the PFIC rules is made on an annual basis and depend on the composition of our income and assets and the value of our assets from time to time. Therefore, changes in the composition of our income or assets or value of our assets may cause our Company to become a PFIC. The determination of the value of our assets (including goodwill not reflected on our balance sheet) may be based, in part, on the quarterly market value of Ordinary Shares, which is subject to change and may be volatile.

The classification of certain of our income as active or passive, and certain of our assets as producing active or passive income, and hence whether our Company is or will become a PFIC, depends on the interpretation of certain United States Treasury Regulations as well as certain guidance from the Internal Revenue Service, or IRS, relating to the classification of assets as producing active or passive income. Such regulations guidance is potentially subject to different interpretations. If due to different interpretations of such regulations and guidance the percentage of our passive income or the percentage of our assets treated as producing passive income increases, our Company may be a PFIC in one of more taxable years. If our Company is a PFIC for any taxable year during which a United States person holds Ordinary Shares, certain adverse United States federal income tax consequences could apply to such United States person.

***For as long as our Company is an emerging growth company, our Company will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

Our Company is classified as an "emerging growth company" under the JOBS Act because our Company generated less than US$1.235 billion in revenues for our last fiscal year. For as long as our Company is an emerging growth company, which may be up to five full fiscal years, unlike other public companies, our Company will not be required to, among other things, (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, (ii) comply with any new requirements adopted by the PCAOB requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer, (iii) provide certain disclosure regarding executive compensation required of larger public companies, or (iv) hold nonbinding advisory votes on executive compensation. Our Company will remain an emerging growth company for up to five years, although our Company will lose that status sooner if our Company has more than $1.235 billion of revenues in a fiscal year, has more than $700 million in market value of our Ordinary Shares held by non-affiliates, or issues more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that our Company relies on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. If some investors find our Ordinary Shares to be less attractive as a result, there may be a less active trading market for our Ordinary Shares and our share price may be more volatile. Our election to take advantage of any of the benefits of the extended transition period for complying with new or revised accounting standards allows for the delay of the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies, and that as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates with similar disclosure.

***Our Company is a foreign private issuer within the meaning of the rules under the Exchange Act, and as such our Company is exempt from certain provisions applicable to U.S. domestic public companies.***

Because our Company qualifies as a foreign private issuer under the Exchange Act, our Company is exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 rules under the Exchange Act requiring the filing with the SEC of quarterly reports
 on Form 10-Q or current reports on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations
 in respect of a security registered under the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 sections of the Exchange Act requiring insiders to file public reports of their stock ownership
 and trading activities and liability for insiders who profit from trades made in a short
 period of time; and

&nbsp;&nbsp;&nbsp;&nbsp;· the
 selective disclosure rules by issuers of material nonpublic information under Regulation
 FD.

Our Company will be required to file an annual report on Form 20-F within four months of the end of each fiscal year. Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information our Company is required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer.

***If our Company fails to establish and maintain proper internal financial reporting controls, our ability to produce accurate financial statements or comply with applicable regulations could be impaired.***

Pursuant to Section 404 of the Sarbanes-Oxley Act, our Company will be required to file a report by our management on our internal control over financial reporting, including an attention report on internal control over financial reporting issued by our independent registered public accounting firm. However, while our Company remains an emerging growth company, our Company will not be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. The presence of material weakness in internal control over financial reporting could result in financial statement errors, which, in turn, could lead to error of our financial reports and/or delays in our financial reporting, which could require our Company to restate our operating results. Our Company might not identify one or more material weaknesses in our internal controls in connection with evaluating our compliance with Section 404 of the Sarbanes-Oxley Act. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls over financial reporting. Our Company will need to expend significant resources and provide significant management oversight. Implementing any appropriate changes to our internal controls may require specific compliance training of our directors and employees, entail substantial costs in order to modify our existing accounting systems, take a significant period of time to complete and divert management's attention from other business concerns. These changes may not, however, be effective in maintaining the adequacy of our internal control.

If our Company is unable to conclude that our Company has effective internal controls over financial reporting, investors may lose confidence in our operating results, the price of the Ordinary Shares could decline and our Company may be subject to litigation or regulatory enforcement actions. In addition, if our Company is unable to meet the requirements of Section 404 of the Sarbanes-Oxley Act, the Ordinary Shares may not be able to remain listed on the exchange.

***As a company incorporated in the Cayman Islands, our Company is permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if our Company complied fully with corporate governance listing standards.***

As a foreign private issuer, our Company is permitted to take advantage of certain provisions in the Nasdaq listing standards that allow our Company to follow Cayman Islands law for certain governance matters. Certain corporate governance practices in the Cayman Islands may differ significantly from corporate governance listing standards as, except for general fiduciary duties and duties of care, Cayman Islands law has no corporate governance regime which prescribes specific corporate governance standards. Currently, our Company does not intend to rely on home country practice with respect to our corporate governance after our Company completes with this offering. However, if our Company chooses to follow home country practice in the future, our shareholders may be afforded less protection than they otherwise would have under corporate governance listing standards applicable to U.S. domestic issuers.

***Our Company will incur increased costs as a result of being a public company, particularly after our Company ceases to qualify as an "emerging growth company."***

Upon completion of this offering, our Company will become a public company and expect to incur significant legal, accounting and other expenses that our Company did not incur as a private company. The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the SEC and Nasdaq Stock Market, impose various requirements on the corporate governance practices of public companies. Our Company expects these rules and regulations to increase our legal and financial compliance costs and to make some corporate activities more time-consuming and costlier.

As a result of becoming a public company, our Company will need to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures. Our Company also expects that operating as a public company will make it more difficult and more expensive for our Company to obtain director and officer liability insurance, and our Company may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. In addition, our Company will incur additional costs associated with our public company reporting requirements. It may also be more difficult for our Company to find qualified persons to serve on our board of directors or as executive officers. Our Company cannot predict or estimate with any degree of certainty the amount of additional costs our Company may incur or the timing of such costs.

In addition, after our Company is no longer an "emerging growth company," our Company expects to incur significant expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the other rules and regulations of the SEC.

***Our Company may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

As discussed above, our Company is a foreign private issuer, and therefore, our Company is not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter. Our Company would lose our foreign private issuer status if, for example, more than 50% of our Ordinary Shares are directly or indirectly held by residents of the U.S. and our Company fails to meet additional requirements necessary to maintain our foreign private issuer status. If our Company loses our foreign private issuer status on this date, our Company will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms available to a foreign private issuer. Our Company will also have to mandatorily comply with U.S. federal proxy requirements, and our officers, directors and principal shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, our Company will lose our ability to rely upon exemptions from certain corporate governance requirements under the Nasdaq listing rules. As a U.S. listed public company that is not a foreign private issuer, our Company will incur significant additional legal, accounting and other expenses that our Company will not incur as a foreign private issuer, and accounting, reporting and other expenses in order to maintain a listing on a U.S. securities exchange.

***The obligation to disclose information publicly may put our Company at a disadvantage to competitors that are private companies.***

Upon completion of this offering, our Company will be a public company in the United States. As a public company, our Company will be required to file periodic reports with the Securities and Exchange Commission upon the occurrence of matters that are material to our Company and shareholders. Although our Company may be able to attain confidential treatment of some of our developments, in some cases, our Company will need to disclose material agreements or results of financial operations that our Company would not be required to disclose if our Company were a private company. Our competitors may have access to this information, which would otherwise be confidential. This may give them advantages in competing with our Company. Similarly, as a U.S. public company, our Company will be governed by U.S. laws that our competitors, which are mostly private Chinese companies, are not required to follow. To the extent compliance with U.S. laws increases our expenses or decreases our competitiveness against such companies, our public company status could affect our results of operations.

 ***If we cannot satisfy, or continue to satisfy, the initial listing requirements and other rules of Nasdaq Capital Market, although we exempt from certain corporate governance standards applicable to US issuers as a foreign private issuer, our securities may not be listed or may be delisted, which could negatively impact the price of our securities and your ability to sell them.***

We will consummate this offering only if our securities are approved for listing on the Nasdaq Capital Market. However, we cannot assure you that we will be able to meet those initial listing requirements at that time. Even if our securities are listed on the Nasdaq Capital Market, we cannot assure you that our securities will continue to be listed on the Nasdaq Capital Market after this offering.

If the Nasdaq Capital Market does not list our securities, or subsequently delists our securities from trading, we could face significant consequences, including:

• a limited availability
 for market quotations for our securities;

• reduced liquidity
 with respect to our securities;

• a determination
 that our Ordinary Shares are a "penny stock," which will require brokers trading
 in our Ordinary Shares to adhere to more stringent rules and possibly result in a reduced
 level of trading activity in the secondary trading market for our Ordinary Shares;

• limited amount
 of news and analyst coverage; and

• a decreased ability
 to issue additional securities or obtain additional financing in the future.

**DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this prospectus. These statements are likely to address our growth strategy, financial results and product and development programs. You must carefully consider any such statements and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

● assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items;

● our ability to execute our growth, and expansion, including our ability to meet our goals;

● current and future economic and political conditions;

● our capital requirements and our ability to raise any additional financing which our Company may require;

● our ability to attract clients and further enhance our brand recognition;

● our ability to hire and retain qualified management personnel and key employees in order to enable us to develop our business;

● trends and competition in the maternal and newborn skincare product industry;

● the COVID-19 pandemic; and

● other assumptions described in this prospectus underlying or relating to any forward-looking statements.

We describe certain material risks, uncertainties and assumptions that could affect our business, including our financial condition and results of operations, under "Risk Factors." We base our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may, and are likely to, differ materially from what is expressed, implied or forecast by our forward-looking statements. Accordingly, you should be careful about relying on any forward-looking statements. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this prospectus, whether as a result of new information, future events, changes in assumptions, or otherwise.

**Industry Data and Forecasts**

This prospectus contains data related to the maternal and newborn skincare product industry in China. The industry data include projections that are based on a number of assumptions which have been derived from industry and government sources which we believe to be reasonable. The industry may not grow at the rate projected by industry data, or at all. The failure of the industry to grow as anticipated is likely to have a material adverse effect on our business and the market price of our Ordinary Shares. In addition, the rapidly changing nature of the industry subjects any projections or estimates relating to the growth prospects or future condition of the industry to significant uncertainties. Furthermore, if any one or more of the assumptions underlying the industry data turns out to be incorrect, actual results may, and are likely to, differ from the projections based on these assumptions.

**ENFORCEABILITY OF CIVIL LIABILITIES**

Our Company is incorporated under the laws of the Cayman Islands as an exempted company with limited liability. Our Company incorporated under the laws of the Cayman Islands because of certain benefits associated with being a Cayman Islands company, such as political and economic stability, an effective judicial system, a favorable tax system, the absence of foreign exchange control or currency restrictions and the availability of professional and support services. The Cayman Islands, however, has a less developed body of securities laws as compared to the United States and provides significantly less protection for investors than the United States. Additionally, Cayman Islands companies may not have standing to sue in the Federal courts of the United States.

Substantially all of our assets are located in the PRC. In addition, half of our directors and officers are nationals or residents of the PRC and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon our Company or these persons, or to enforce against our Company or them judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

Our Company has appointed Cogency Global Inc. as our agent to receive service of process with respect to any action brought against our Company in the United States District Court for the Southern District of New York under the federal securities laws of the United States or of any state in the United States or any action brought against our Company in the Supreme Court of the State of New York in the County of New York under the securities laws of the State of New York.

Ogier, our counsel with respect to the laws of the Cayman Islands, and AllBright Law Offices (Fuzhou), our counsel with respect to PRC law, have advised us that there is uncertainty as to whether the courts of the Cayman Islands or the PRC would (i) recognize or enforce judgments of United States courts obtained against our Company or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States or (ii) entertain original actions brought in the Cayman Islands or the PRC against our Company or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

Ogier has further advised us that it is uncertain whether the courts of the Cayman Islands will allow shareholders of our company to originate actions in the Cayman Islands based upon securities laws of the United States. In addition, there is uncertainty with regard to Cayman Islands law related to whether a judgment obtained from the U.S. courts under civil liability provisions of U.S. securities laws will be determined by the courts of the Cayman Islands as penal or punitive in nature. If such a determination is made, the courts of the Cayman Islands will not recognize or enforce the judgment against a Cayman Islands company, such as our company. As the courts of the Cayman Islands have yet to rule on making such a determination in relation to judgments obtained from U.S. courts under civil liability provisions of U.S. securities laws, it is uncertain whether such judgments would be enforceable in the Cayman Islands. Ogier has further advised us that although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign judgement, without any re-examination or re-litigation of matters adjudicated upon, provided such judgment: (i) is given by a foreign court of competent jurisdiction; (ii) imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given; (iii) is final; (iv) is not in respect of taxes, a fine or a penalty; (v) was not obtained by fraud; and (vi) is not of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands.

AllBright Law Offices (Fuzhou) has further advised us that the recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedure Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedure Law based either on treaties between China and the country where the judgment is made or on reciprocity between jurisdictions. There are no treaties or other forms of reciprocity between China and the United States for the mutual recognition and enforcement of court judgments. AllBright Law Offices (Fuzhou) has further advised us that under PRC law, PRC courts will not enforce a foreign judgment against our Company or our officers and directors if the court decides that such judgment violates the basic principles of PRC law or national sovereignty, security or public interest, thus making the recognition and enforcement of a U.S. court judgment in China difficult.

**USE OF PROCEEDS**

Based upon an assumed initial public offering price of $[●] per Ordinary Share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, we estimate that we will receive net proceeds from this offering, after deducting the estimated underwriting discounts and the estimated offering expenses payable by us, of approximately $[●].

Our Company plans to use the net proceeds received from this offering for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· approximately
 20% of the net proceeds from this offering for product innovation and development; in the next three years, the operating
 entity plans to invest in the innovation and development of at least 50 new products, mainly consisting of maternal and baby skincare
 products and toiletries that feature camellia oil or compound fruit enzymes; specific product types include hand cream, body oil,
 hand sanitizer, and facial cleanser; such 50 new products will be introduced to the market under the brand *Blue-Touch* in three
 phases, among them, approximately 25 products will be launched onto the market in 2023, approximately 15 products will be launched
 in 2024, and approximately 10 products will be launched in 2025 ;

&nbsp;&nbsp;&nbsp;&nbsp;· approximately
 40% of the net proceeds from this offering for business expansions and for the acquisitions
 of, or investments in, businesses engaged in maternal and newborn skincare industry, although
 as of the date of this prospectus, our Company has not identified, nor has our Company engaged
 in any material discussions regarding, any potential target; and

&nbsp;&nbsp;&nbsp;&nbsp;· approximately
 40% of the net proceeds from this offering for working capital, operating expenses and other
 general corporate purposes.

The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management, however, will have significant flexibility and discretion to apply the net proceeds of this offering. If an unforeseen event occurs or business conditions change, our Company may use the proceeds of this offering differently than as described in this prospectus. To the extent that the net proceeds our Company receives from this offering are not immediately used for the above purposes, our Company may invest our net proceeds in short-term, interest-bearing bank deposits or debt instruments.

**DIVIDEND POLICY**

As of the date of this prospectus, none of our PRC subsidiaries have made any dividends or distributions to our Company and our Company has not made any dividends or distributions to our shareholders or U.S. investors. Our Company intends to keep any future earnings to finance the expansion of our business, and our Company does not anticipate that any cash dividends will be paid in the foreseeable future. Subject to the PFIC rules, the gross amount of distributions our Company makes to investors with respect to our Ordinary Shares (including the amount of any taxes withheld therefrom) will be taxable as a dividend, to the extent that the distribution is paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.

Under the Cayman Islands law, a Cayman Islands exempted company may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts due in the ordinary course of business.

If our Company determines to pay dividends on any of our Ordinary Shares in the future, as a holding company incorporated in the Cayman Islands, our Company will be dependent on receipt of funds from the WFOE. The WFOE, in turn, will be dependent on the receipt of funds from the operating entity.

The WFOE is a wholly foreign-owned enterprise under the PRC law. The regulations governing the distribution of dividends paid by the WFOE include Corporate Law (1993) as lastly amended in 2009, the Foreign Investment Law and its implementing Regulations, and the Enterprise Income Tax Law (2007) as lastly amended in 2018 and its implementation Regulations (2007) as lastly amended in 2019.

Current PRC regulations permit the operating entity to pay dividends to the WFOE only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other purposes, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, our Company may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from the profits, if any. Furthermore, if our PRC subsidiaries incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If our Company or our subsidiaries are unable to receive all of the revenue from our operations, our Company may be unable to pay dividends on our Ordinary Shares.

Cash dividends, if any, on our Ordinary Shares will be paid in U.S. dollars. The WFOE is considered a resident enterprise for PRC tax purposes, any dividends that the operating entity pays to the WFOE may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.

In order for our Company to pay dividends to our shareholders, our Company will rely on payments made from the operating entity to the WFOE, and the distribution of such payments to our Company. According to the PRC Enterprise Income Tax Law, such payments from the operating entity to the WFOE are subject to the PRC enterprise income tax at a rate of 25%.

**CAPITALIZATION**

The following table sets forth our capitalization as of June 30, 2022:

● on an actual basis; and

● on an as adjusted basis to reflect the issuance and sale of the Ordinary Shares by our Company in this offering at the assumed initial public offering price of $5.00 per Ordinary Share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts to the Underwriter and the estimated offering expenses payable by us.

You should read this capitalization table in conjunction with "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the related notes appearing elsewhere in this prospectus.

---

| |
|:---|
| Cash and cash equivalents |
| Current maturities of Long-term loans |
| Long-term portion of lease liabilities |
| Stockholders' Equity: |
| Ordinary shares, $0.0005 par value, 100,000,000 Ordinary Shares authorized, 12,000,000 Ordinary Shares issued and outstanding; 16,000,000 Ordinary Shares issued and outstanding, as adjusted |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp; Retained earnings) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income) |
| &nbsp;&nbsp;&nbsp; Total shareholders' Equity |
| Total Capitalization |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Reflects the sale of Ordinary Shares in this offering at
 an assumed initial public offering price of $5.00 per share, and after deducting the estimated underwriting discounts,
 non-accountable expense allowance and estimated offering expenses payable by us. The pro forma as adjusted information
 is illustrative only, and we will adjust this information based on the actual initial public offering price and
 other terms of this offering determined at pricing. Additional paid-in capital reflects the net proceeds we expect to receive,
 after deducting the underwriting discounts, non-accountable expense allowance and estimated offering expenses payable by us. We
 estimate that such net proceeds will be approximately $16,954,837.

A $1.00 increase (decrease) in the assumed initial public offering price of $5.00 per Ordinary Share would increase (decrease) each of additional paid-in capital, total shareholders' equity and total capitalization by $2,394,837, assuming the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and estimated expenses payable by us.

**DILUTION**

If you invest in our Ordinary Shares, your interest will be diluted for each Ordinary Share you purchase to the extent of the difference between the initial public offering price per Ordinary Share and our net tangible book value per Ordinary Share after this offering. Dilution results from the fact that the initial public offering price per Ordinary Share substantially exceeds the net tangible book value per Ordinary Share attributable to the existing shareholders for our presently outstanding Ordinary Shares.

Our net tangible book value as of June 30, 2022, was $5,740,173, or $0.48 per Ordinary Share. Net tangible book value represents the amount of our total consolidated tangible assets, less the amount of our total consolidated liabilities. Dilution is determined by subtracting the net tangible book value per Ordinary Share (as adjusted for the offering) from the initial public offering price per Ordinary Share and after deducting the estimated underwriting discounts to the Underwriter and the estimated offering expenses payable by us.

After giving effect to our sale of 4,000,000 Ordinary Shares offered in this offering based on the initial public offering price of $5.00 per Ordinary Share after deduction of the estimated underwriting discounts and non-accountable expense allowance to the Underwriter and the estimated offering expenses payable by us, our as adjusted net tangible book value as of June 30, 2022, would have been $22,940,153, or $1.43 per outstanding Ordinary Share. This represents an immediate increase in net tangible book value of $0.95 per Ordinary Share to the existing shareholders, and an immediate dilution in net tangible book value of $3.57 per Ordinary Share to investors purchasing Ordinary Shares in this offering. The as adjusted information discussed above is illustrative only.

The following table illustrates such dilution:

---

| | |
|:---|:---|
|  | **Post-<br> Offering** |
| Assumed Initial public offering price per Ordinary Share | $5.00 |
| Net tangible book value per Ordinary Share as of June 30, 2022 | $0.48 |
| As adjusted net tangible book value per Ordinary Share attributable to payments by new investors | $4.30 |
| Pro forma net tangible book value per Ordinary Share immediately after this offering | $1.43 |
| Amount of dilution in net tangible book value per Ordinary Share to new investors in the offering | $3.57 |

---

The following tables summarize, on a pro forma as adjusted basis as of June 30, 2022, the differences between existing shareholders and the new investors with respect to the number of Ordinary Shares purchased from us, the total consideration paid and the average price per Ordinary Share before deducting the estimated underwriting discounts and non-accountable expense allowance to the Underwriter and the estimated offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares<br> purchased** | **Ordinary Shares<br> purchased** | **Total consideration** | **Total consideration** | |
| | **Number** | **Percent** | **Amount** | **Percent** | **Average<br> price per<br> Ordinary**<br>**Share** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Existing shareholders | 12000000 | 75.00% | $50 | 0.25% | $0.0042 |
| New investors | 4000000 | 25.00% | $20000 | 99.75% | $5.0000 |
| Total | 16000000 | 100.00% | $20050 | 100.00% | $— |

---

The pro forma as adjusted information as discussed above is illustrative only. Our net tangible book value following the completion of this offering is subject to adjustment based on the actual initial public offering price of our Ordinary Shares and other terms of this offering determined at the pricing.

**CORPORATE HISTORY AND STRUCTURE**

**Our Corporate History**

Our Company is a Cayman Islands holding company with no material operations. Our Company conducts operations in China through our wholly owned indirect subsidiary Fujian Blue-Touch Technology Co., Ltd. (the operating entity).

In connection with this offering, we have undertaken a reorganization of our corporate structure. On September 27, 2021, we incorporated Blue-Touch Holdings Group Co., Ltd under the laws of the Cayman Islands. On December 20, 2021, we incorporated Fujian Blue-Touch Holdings Group Co., Ltd. (the "WFOE") under the laws of the PRC, which became a wholly owned subsidiary of Blue-Touch Holdings Group Co., Ltd. On September 24, 2014, we incorporated the operating entity under the laws of the PRC, which became a wholly owned subsidiary of the WFOE on January 10, 2022. The WFOE entered into securities purchase agreements with the operating entity's then shareholders on January 10, 2022. Accordingly, the WFOE acquired all of the shares of the operating entity, and the operating entity became a wholly-owned subsidiary of the WFOE .

**Our Corporate Structure**

Currently, our Company holds 100% equity interests in our PRC subsidiaries, and our Company does not use a variable interest entity structure. The following diagram illustrates our corporate structure as of the date of this prospectus and upon completion of our IPO based on [●] Ordinary Shares being offered.

![](tm2226747d2_f1asp3img001.jpg)

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents 6,240,000 Ordinary Shares
 held by Guanzhao Lin, the 100% owner of ST Investment Group Limited, as of the date of this
 prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents
 2,160,000 Ordinary Shares held by Jifeng Huang, the 100% owner of LinFeng Investment Limited,
 as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents
 780,000 Ordinary Shares held by Jing Liu, the 100% owner of LIUJING Investment Limited, as
 of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represents
 720,000 Ordinary Shares held by Xuedong Sun, the 100% owner of SXD Investment Consulting
 Limited, as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Represents
 660,000 Ordinary Shares held by Zhangtao Cheng, a Hong Kong resident, the 100% owner of ZTCHEN
 Investment Limited, as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Represents
 600,000 Ordinary Shares held by Mingxin Chen, the 100% owner of CMX Investment Group Limited,
 as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Represents an aggregate of 840,000 Ordinary
 Shares held by two shareholders, each one of which holds less than 5% of our Ordinary Shares,
 as of the date of this prospectus.

For details of each shareholder's ownership, please refer to the beneficial ownership table in the section captioned "Principal Shareholders."

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis should be read in conjunction with our consolidated financial statements, the notes to those financial statements and other financial data that appear elsewhere in our prospectus. This discussion contains forward-looking statements that are based on our current expectations, estimates and projections about our business and operations. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in "Risk Factors" and elsewhere in this prospectus. See "Special Note Regarding Forward-Looking Statements."*

**Overview**

Our Company is an offshore holding company incorporated in the Cayman Islands. Our Company does not conduct any substantive operations on its own. Instead, it conducts its business operations through the operating entity in Fuzhou, China, which is principally engaged in designing, developing, and selling baby skincare products and toiletries as well as household cleaning products under the brand *Blue-Touch*. Our Company derives revenue from the sale of household cleaning products including fabric softener, laundry detergent, multi-functional cleaner, disinfectant, and baby skincare products and toiletries such as camellia oil moisturizer, camellia oil lotion, camellia oil 2-in-1 shampoo and body wash.

Our business has grown rapidly in recent years, as demonstrated by our growth in revenue from approximately $3.10 million for the year ended December 31, 2020, to approximately $6.66 million for the year ended December 31, 2021, representing an increase of 114.91%. Our net income increased to approximately $0.78 million as of December 31, 2021, representing an increase of approximately $0.73 million compared to approximately $0.05 million as of December 31, 2020. During the six months ended June 30, 2022, our revenue and net income was $3,891,408 and $567,472, respectively.

During the year ended December 31, 2020, the operating entity purchased a Chinese patent on camellia oil extraction and processing technology and launched a series of camellia oil baby skincare products and toiletries based on such patent. Since 2020, our Company has generated revenue from the sales of camellia oil baby skincare products and toiletries. Before 2020, our Company derived almost all of our revenue from the sales of household cleaning products. During the six months ended June 30, 2022, revenue from skincare products and toiletries accounted for approximately 48.72% of the total revenue. As of December 31, 2021, and 2020, revenue from skincare products and toiletries accounted for nearly 49.5% and 30.7% of the total revenue, respectively.

**Principal Factors Affecting Our Financial Performance**

Our operating results are primarily affected by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;· Chinese
 economy and industry growth. Substantially all of our revenues and workforce are concentrated
 in China. Our business and operating results are affected by general factors, including China's
 overall economic growth, the accessibility of credit markets for the business, China's
 recent birthrate-boosting family planning policy shift, Chinese consumers' rising disposable
 income, Chinese consumers' increasing emphasis on quality of life and potential surges
 in demand for personal hygiene products. Unfavorable changes in any of these general factors
 could affect consumers' demand for the products the operating entity provides and could
 materially and adversely affect our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;· Industry
 regulations and policies. Our results of operations are also affected by the regulations
 and industry policies related to the hygiene and toiletries industry. Our Company is also
 affected by the complexity, uncertainties and changes in China's regulations of maternal
 and newborn skincare industry. Unfavorable changes in any of these regulations and policies
 could result in significant additional costs and expenses, which could adversely affect our
 results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;· Competition
 in the household cleaning product and baby skincare product industries. The market in which
 the operating entity's products are sold is highly competitive. The operating entity's
 products compete against similar products of many large and small companies, including well-known
 global competitors. According to Respect Marketing Research Inc., whom the operating entity
 commissioned in September 2022 to produce the "China Maternal and Infant Washing &
 Care Product Industry Research Report," global competitors include Johnson &
 Johnson, Aveeno, Pigeon and Sebamed, and local brands include Baby Elephant, Frog Prince,
 and Yumeijing. Competition in this market is primarily based on the development and improvement
 of new and existing products and processes, product quality and safety, brand recognition,
 and product pricing. If new competitors continue entering the market, leading to increasingly
 intensive competition in this market, and our Company fails to maintain strengths, our results
 of operations will be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;· Our
 ability to innovate and develop competitive products that address the evolving needs of consumers.
 The operating entity's business is in an industry that is subject to rapid and unpredictable
 changes in consumer demand and trends. The operating entity's success depends on its
 ability to foresee, evaluate and react effectively to changes in the spending levels of consumers
 and their preferences regarding skincare and other related products, as well as, in part,
 on the successful innovation and development of new products and services that address the
 evolving needs of consumers. In the past three years, the operating entity has been pursuing
 product research and development through collaborations with third parties, as well as through
 its internal research and development team. According to the operating entity's product
 research and development policies and practices, the operating entity has collaborated with
 Guangzhou Bangduo, a chemical technology research company in China, to study market demands
 and trends, participate in industry events, innovate product formulations, perform sample
 product testing, collect feedback from users on sample products, optimize product formulations,
 put sample products through safety tests, and coordinate with manufacturers to achieve mass
 production. The operating entity will be entitled to own the intellectual property resulting
 from such collaboration with Guangzhou Bangduo. The product development process requires
 significant investment of resources over a protracted period of time and depends on many
 factors such as the ability to develop promising new compounds, strategies and technologies;
 achieve successful clinical trial results; secure effective intellectual property protection;
 and obtain regulatory approvals on a timely basis. The operating entity cannot be certain
 when or whether it will be able to develop products and technologies, or whether particular
 products will be commercially successful. If the operating entity is unable to respond to
 changes in consumer preferences in a timely manner or experiences delays in the innovation
 and development of new products, our business and results of operations could be materially
 adversely affected.

**Impact of COVID-19**

Recently, there has been a global pandemic of a novel strain of coronavirus (COVID-19) that first emerged in China in December 2019 and has spread globally. The pandemic resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities in China for the first half year of 2020. In March 2020, the World Health Organization declared COVID-19 as a global pandemic. Given the rapidly expanding nature of COVID-19 pandemic, and substantially all of our business operations and our workforces are concentrated in China, our Company believes that it has impacted and will likely continue to impact our business, results of operations, and financial condition. Potential impact on our results of operations will also depend on future developments and information that may emerge regarding the duration and severity of COVID-19 and the actions taken by governmental authorities and other entities to contain the spread of COVID-19 and any of its variants or to mitigate its impact, almost all of which are beyond our control.

The impacts of the COVID-19 pandemic on our business, financial condition, and results of operations include, but are not limited to, the following:

The operating entity temporarily closed its office and its manufacturers closed their production facilities in early February 2020, as required by the relevant PRC government authorities. The operating entity reopened its office in early March 2020, and its manufacturers gradually resumed business operations and became fully operational on March 20, 2020. Since May 2020, although production and logistical activities in certain parts of China were disrupted by the regional COVID-19 lockdowns, the Chinese government has eased the nationwide COVID-19 restrictions and has not mandated any nationwide lockdowns, and as a result, the nationwide production and logistical activities in China have gradually resumed. Since May 2020, the operating entity's operations, including the activities of its manufacturers or distributors, have not endured any material adverse impact from the COVID-19 restrictions.

There were some disruptions to the supply chain during the Chinese government-mandated lockdowns, with suppliers increasing lead times during the first half of 2020. While, as of the date of this prospectus, all of the major suppliers of the operating entity are currently fully operational, any future disruptions in their operations would impact the operating entity's ability to manufacture and deliver products to customers. In such an event, the operating entity's ability to fulfill orders with short lead times could be limited and it may be unable to satisfy all the demand for its products in a timely manner, which may adversely affect customer relationships.

For the period ended June 30, 2022 and the years ended December 31, 2021, and 2020, our Company was able to repay all the debt and other obligations without taking advantage of any available payment deferral or forbearance terms.

The operating entity's workforce remained stable for the fiscal period ended June 30, 2022. The operating entity adopted various safety measures as required by the PRC government authorities, provided its employees with protective gear and regularly monitored and traced the health condition of its employees. However, we do not believe those safety measures have materially impacted the results of operations.

As of the date of this prospectus, the Chinese government has eased the COVID-19 restrictions. We expect that there will not be any nationwide government-mandated lockdowns in China in the foreseeable future. Even if some of the operating entity's manufacturers and distributors are subject to regional lockdowns, the operating entity expects to take prompt measures to lessen any disruptions in the production and logistical activities, including cooperating with alternative manufacturers and additional distributors. In the long term, the COVID-19 pandemic is likely to adversely affect the Chinese economy and financial market. The degree to which the pandemic ultimately impacts our business and results of operations will depend on future developments beyond our control, including the severity of the pandemic, the actions to contain or treat the virus, and how quickly and to what extent the economic and operating conditions can resume.

**Results of Operations**

 *For the Six Months Ended June 30, 2022 and 2021*

The following table summarizes the results of our operations for the six months ended June 30, 2022 and 2021, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2022** | **June 30, 2021** | **Change** | **Percentage <br> Change%** |
|  Revenue | $3891408 | $2944245 | $947163 | 32.17% |
|  Cost of revenue | 2381566 | 1818628 | 562938 | 30.95% |
|  Gross profit | 1509842 | 1125617 | 384225 | 34.13% |
|  Operating expenses |  |  |  |  |
|  Sales and marketing expenses | 420451 | 322469 | 97982 | 30.38% |
|  General and administrative expenses | 286203 | 245717 | 40486 | 16.48% |
|  Research and development expenses | 121650 | 166861 | (45211) | (27.10)% |
|  Total operating expenses | 828304 | 735047 | 93257 | 12.69% |
|  Income from operations | 681538 | 390570 | 290968 | 74.50% |
|  Other income/ (expense) |  |  |  |  |
|  Interest income | 3566 | 673 | 2893) | 429.87% |
|  Interest expense | (1775) | (468) | (1307) | 279.27% |
|  Foreign currency exchange gain | 6887 | - | 6887 | >100 |
|  Total other income, net | 8678 | 205 | 8473 | 4133.17% |
|  Income before income taxes | 690216 | 390775 | 299441 | 76.63% |
|  Income tax expense | (122744) | (86054) | (36690) | 42.64% |
|  Net income /(loss) | $567472 | $304721 | $262751 | 86.23% |

---

 *Revenue*

The following table presents revenue by product categories for the six months ended June 30, 2022 and 2021, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2022** | **June 30, 2022** | **June 30, 2021** | **June 30, 2021** |
| <br>Product Category | **Amount** | **As % of total<br> revenue** | **Amount** | **As % of total<br> revenue** |
| Baby skincare products and toiletries | $1895967 | 48.72% | $1376592 | 46.76% |
| Household cleaning products | 1995441 | 51.28% | 1567653 | 53.24% |
| Total revenue | $3891408 | 100% | $2944245 | 46.76% |

---

Our total revenue was approximately $3.89 million for the six months ended June 30, 2022, representing an increase of approximately $0.95 million, or 32.17%, compared to approximately $2.94 million for the six months ended June 30, 2021. The sales volume of the products continued to increase during the six months ended June 30, 2022 as a result of the significant demand for personal hygiene products, and the continued investmemt in research and development and advertising, which has positive effects on product sales.

 *Costs of Revenue*

The following table presents cost of sales by product categories for the six months ended June 30, 2022 and 2021, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2022** | **June 30, 2022** | **June 30, 2021** | **June 30, 2021** |
| <br>Product Category | **Amount** | **As % of total<br> revenue** | **Amount** | **As % of total<br> revenue** |
| Baby skincare products and toiletries | $994820 | 41.77% | $723904 | 39.80% |
| Household cleaning products | 1386746 | 58.23% | 1094724 | 60.20% |
| Total costs of Revenue | $2381566 | 100% | $1818628 | 100% |

---

Costs of revenue was approximately $2.38 million for the six months ended June 30, 2022, representing an increase of approximately $0.56 million, or 30.95%, compared to approximately $1.82 million for the six months ended June 30, 2021. Such increase was mainly due to the increase in the volume of products sold**.**

The following table presents gross profit margin by product categories for the six months ended June 30, 2022 and 2021, respectively.

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| | | |
|:---|:---|:---|
| Product Category | **June 30, 2022** | **June 30, 2021** |
| Baby skincare products and toiletries | 47.53% | 47.41% |
| Household cleaning products | 30.50% | 30.17% |
| Total gross profit margin | 38.80% | 38.23% |

---

Gross profit margin was 38.80% for the six months ended June 30, 2022, increasing by 0.57% compared to the gross profit margin of 38.23% for the six months ended June 30, 2021.

 *Sales and marketing expenses*

Sales and marketing expenses primarily comprise salaries and sales commissions of employees in the marketing department, transportation fees, fees associated with attending trade shows and similar exhibitions, advertisement expense and other miscellaneous items. The operating entity conducts sales activities through its sales team, which is comprised of nine members as of the six months ended June 30, 2022, being the same number of members as the six months ended June 30, 2021. The operating entity encourages its professional sales team to explore new markets and establish new customer relationships through a commission reward structure. Sales and marketing expenses were approximately $0.42 million for the six months ended June 30, 2022, representing an increase of approximately $0.10 million, or 30.38%, as compared to approximately $0.32 million for the six months ended June 30, 2021. The increase was primarily due to the increased average sales commissions made to the sales team during the six months ended June 30, 2022.

 *General and Administrative expenses*

General and administrative expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department such as manufacturing, production, or sales. General and administrative expenses primarily comprise lease expenses, utilities, insurance, legal fees, certain salaries and operational overhead expenses that impact the entire business. We record property and equipment at cost and calculate depreciation using the straight-line method over the estimated useful lives of our assets, which generally range from five to ten years. General and administrative expenses were approximately $0.29 million for the six months ended June 30, 2022, representing an increase of approximately $0.04 million, or 16.48%, as compared to approximately $0.25 million for the six months ended June 30, 2021, primarily due to an increase of approximately $0.04 million in depreciation expense for the new vehicles, equipment and engineering.

 *Research and development expenses*

Research and development expenses are incurred for the development of new products and services (not meeting the capitalization criteria) each year. During the six months ended June 30, 2022, the Company recognized research and development expenses of approximately $0.12 million, representing a decrease of approximately $0.05 million, or 27.10%, compared to approximately $0.17 million for the six months ended June 30, 2021, which was primarily due to the decrease of the expenditures for outsourced research and development. For the six months ended June 30, 2022, the Company's outsourced research and development expenses decreased by approximately $0.04 million compared to the six months ended June 30, 2021.

 *Income from operations*

The income from operations was approximately $0.68 million for the six months ended June 30, 2022, an increase of approximately $0.29 million, or 74.5%, compared to approximately $0.39 million for the six months ended June 30, 2021.

 *Total other incomes, net*

For the six months ended June 30, 2022, other income, net of other expense, was approximately $8,678, compared to $205 for the six months ended June 30, 2021, representing an increase of $8,473. The increase in other incomes was primarily attributable to the foreign currency exchange gain incurred from the deferred offering expense paid on behalf of the Company by the shareholders.

 *Net income attributable to Company shareholders*

As a result of the factors described above, our net income for the six months ended June 30, 2022 was approximately $0.57 million, compared to $0.30 million for the six months ended June 30, 2021, representing an increase of approximately $0.26 million, or 86.23%.

*For the Years Ended December 31, 2021 and 2020*

The following table summarizes the results of our operations for the years ended December 31, 2021 and 2020, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** | **Change** | **Percentage** <br> **Change%** |
|  Revenue | $6655515 | $3096924 | $3558591 | 114.91% |
|  Cost of revenue | 4069866 | 1993583 | 2076283 | 104.15% |
|  Gross profit | 2585649 | 1103341 | 1482308 | 134.35% |
|  Operating expenses |  |  |  |  |
|  Sales and marketing expenses | 697009 | 387472 | 309537 | 79.89% |
|  General and administrative expenses | 561557 | 412123 | 149434 | 36.26% |
|  Research and development expenses | 294172 | 225930 | 68242 | 30.20% |
|  Total operating expenses | 1552738 | 1025525 | 527213 | 51.41% |
|  Income from operations | 1032911 | 77816 | 955095 | 1227.38% |
|  Other income/ (expense) |  |  |  |  |
|  Interest income | 2740 | 2748 | (8) | -0.29% |
|  Interest expense | (1622) | (639) | (983) | 153.83% |
|  Total other income, net | 1118 | 2109 | (-991) | -46.99% |
|  Income before income taxes | 1034029 | 79925 | 954104 | 1193.75% |
|  Income tax expense | (258507) | (30489) | (228018) | 747.87% |
|  Net income /(loss) | $775522 | $49436 | $726086 | 1468.74% |

---

*Revenue*

The following table presents revenue by product categories for the fiscal years ended December 31, 2021 and 2020, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,<br> 2021** | **December 31,<br> 2021** | **December 31,<br> 2020** | **December 31,<br> 2020** |
| <br>Product Category | **Amount** | **As % of total<br> revenue** | **Amount** | **As % of total<br> revenue** |
| Baby skincare products and toiletries | $3292695 | 49.47% | $950232 | 30.68% |
| Household cleaning products | 3362820 | 50.53% | 2146692 | 69.32% |
| Total revenue | $6655515 | **100%** | $3096924 | **100%** |

---

Our total revenue grew from approximately $3.10 million for the year ended December 31, 2020 to approximately $6.66 million for the year ended December 31, 2021, representing an increase of approximately 114.91%. The increase was primarily due to the increase of approximately $2.3 million in sales from baby skincare products and toiletries compared to the year ended December 31, 2020.

*Costs of Revenue*

The following table presents cost of sales by product categories for the fiscal years ended December 31, 2021 and 2020, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,<br> 2021** | **December 31,<br> 2021** | **December 31,<br> 2020** | **December 31,<br> 2020** |
| <br>Product Category | **Amount** | **As % of total<br> revenue** | **Amount** | **As % of total<br> revenue** |
| Baby skincare products and toiletries | $1719424 | 42.25% | $494069 | 24.78% |
| Household cleaning products | 2350442 | 57.75% | 1499514 | 75.22% |
| Total costs of Revenue | $4069866 | **100%** | $1993583 | **100%** |

---

Costs of revenue increased by approximately $2.08 million from approximately $1.99 million for the year ended December 31, 2020, to approximately $4.07 million for the year ended December 31, 2021, representing an increase of 104.15%. Such an increase was mainly due to the increased volume of products sold**.**

The following table presents gross profit margin by product categories for the fiscal years ended December 31, 2021 and 2020, respectively.

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| | | |
|:---|:---|:---|
| Product Category | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Baby skincare products and toiletries | 47.78% | 48.01% |
| Household cleaning products | 30.11% | 30.15% |
| Total gross profit margin | 38.85% | 35.63% |

---

Gross profit margin increased to 38.85% for the year ended December 31, 2021 from 35.63% for the year ended December 31, 2020. Such an increase was mainly because baby skincare products have relatively higher gross margin in comparison to household cleaning products, and baby skincare products accounted for an increasing proportion of the revenue.

*Sales and marketing expense s*

Sales and marketing expenses primarily comprise salaries and sales commissions of employees in the marketing department, transportation fees, fees associated with attending trade shows and similar exhibitions, advertisement expense and other miscellaneous items. The operating entity conducts sales activities through its sales team, which is comprised of nine members as of the fiscal year ended December 31, 2021, an increase of one member compared to the fiscal year ended December 31, 2020. The operating entity encourages its professional sales team to explore new markets and establish new customer relationships through a commission reward structure. Sales and marketing expenses were approximately $0.70 million for the year ended December 31, 2021, representing an increase of approximately $0.31 million, or 79.89%, as compared to approximately $0.39 million for the year ended December 31, 2020. The increase was primarily due to the addition of one member and the increased average sales commissions made to the sales team during the fiscal year ended December 31, 2021.

*General and Administrative expenses*

General and administrative expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department such as manufacturing, production, or sales. General and administrative expenses primarily comprise lease expenses, utilities, insurance, legal fees, certain salaries and operational overhead expenses that impact the entire business. We record property and equipment at cost and calculate depreciation using the straight-line method over the estimated useful lives of our assets, which generally range from five to ten years. General and administrative expenses were approximately $0.56 million for the year ended December 31, 2021, representing an increase of approximately $0.15 million, or 36.26%, as compared to approximately $0.41 million for the year ended December 31, 2020. The increase was primarily due to an increase in social insurance contributions for the employees.

*Research and development expenses*

Research and development expenses are incurred for the development of new products and services (not meeting the capitalization criteria) each year. During the years ended December 31, 2021 and 2020, the Company recognized research and development expenses of approximately $0.29 million and approximately $0.23 million, respectively, representing an increase of $0.07 million, or 30.20%. The increase was primarily due to an outsourced research and development expense of approximately $0.04 million during the year ended December 31, 2021.

*Income from operations*

The income from operations increased from $77,816 for the year ended December 31, 2020 to approximately $1.03 million for the year ended December 31, 2021, representing an increase of approximately $0.96 million.

*Total other incomes, net*

For the year ended December 31, 2021, other income, net of other expense, was $1,118, compared to $2,109 for the year ended December 31, 2020, representing a decrease of $991. The decrease in other incomes was primarily attributable to the increase in interest expense incurred from long-term bank loans.

*Net income attributable to Company shareholders*

As a result of the factors described above, our net income for the year ended December 31, 2021 was approximately $0.78 million, compared to $0.05 million for the year ended December 31, 2020, representing an increase of approximately $0.73 million, or 1468.74%.

**Liquidity and Capital Resources**

***Liquidity***

As of June 30, 2022 and December 31, 2021, we had cash and cash equivalents of approximately $2.88 million and $1.86 million, respectively. To date, we have financed our operations primarily through net cash flow from operations. As of June 30, 2022 and December 31, 2021 and 2020, the balances of our accounts receivable were all due within 90 days. We expect to finance our operations and working capital needs in the near future from part of our net proceeds of this offering and cash generated through operations.

We believe that our current levels of cash and cash flows from operations of the six months ended June 30, 2022 and the year ended December 31, 2021, combined with the net proceeds from this offering, will be sufficient to meet our anticipated cash needs for our operations and expansion plans for at least the next 12 months.

We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** | **Change** | **Percentage<br> Change** |
| **Working capital:** |  |  |  |  |
| Total current assets | 5368306 | 4838846 | 529460 | 10.94% |
| Total current liabilities | 434231 | 441544 | (7313) | (1.66) % |
| Working capital | $4934075 | $4397302 | $536773 | 12.21% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** | **Change** | **Percentage<br> Change** |
| **Working capital:** |  |  |  |  |
| Total current assets | 4838846 | 2515800 | 2323046 | 92.34% |
| Total current liabilities | 441544 | 6082245 | (5640701) | -92.74% |
| Working capital | $4397302 | $(3566445) | $7963747 | >100% |

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Because the exchange rate conversion is different for the consolidated balance sheets and the consolidated statements of cash flows, the changes in assets and liabilities reflected on the consolidated statements of cash flows are not necessarily identical with the comparable changes reflected on the consolidated balance sheets.

***Cash Flow Summary***

The following table sets forth a summary of our cash flows for the six months ended June 30, 2022 and 2021:

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| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2022** | **2021** |
|  Net cash provided by operating activities | $1175615 | $118150 |
|  Net cash provided by (used in) investing activities |  |  |
|  Net cash provided by financing activities | 93322 | - |
|  Effects of currency translation | (242656) | 21384 |
|  Net change in cash and cash equivalents | 1026281 | 139534 |
|  Cash and cash equivalents, beginning of the year | 1857732 | 463513 |
|  Cash and cash equivalents, end of the year | $2884013 | $603047 |

---

 *<u>Operating Activities:</u>*

Net cash provided by operating activities of continuing operations was approximately $1.18 million for the six months ended June 30, 2022, primarily due to a net income of approximately $0.57 million adjusted by non-cash working capital. The adjustments for changes in assets and liabilities primarily included (i) a decrease of approximately $0.42 million in accounts receivable, and (ii) a decrease of approximately $0.18 million in inventories.

Net cash provided by operating activities of continuing operations was approximately $0.12 million for the year ended December 31, 2020, primarily due to a net income of approximately $0.30 million adjusted by non-cash working capital. The adjustments for changes in assets and liabilities primarily included (i) a decrease of approximately $0.19 million in accounts receivable, (ii) an increase of approximately $0.06 million in inventories, and (iii) a decrease of accounts payable in the amount of approximately $0.09 million.

 *<u>Financing Activities:</u>*

Net cash provided by financing activities of continuing operations was approximately $0.09 million for the six months ended June 30, 2022. It was mainly attributable to a long-term loan of approximately $0.10 million borrowed from the shareholder, Mr. Guanzhao Lin. No cash was provided by or used in financing activities of continuing operations for the six months ended June 30, 2021.

The following table sets forth a summary of our cash flows for year ended December 31, 2021 and 2020:

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| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2020** |
|  Net cash provided by (used in) operating activities | $256070 | $(664109) |
|  Net cash (used in) investing activities | (681180) | (172263) |
|  Net cash provided by financing activities | 1728439 | 493716 |
|  Effects of currency translation | 90890 | 113899 |
|  Net change in cash and cash equivalents | 1394219 | (228757) |
|  Cash and cash equivalents, beginning of the year | 463513 | 692270 |
|  Cash and cash equivalents, end of the year | $1857732 | $463513 |

---

*<u>Operating Activities:</u>*

Net cash provided by operating activities of continuing operations was approximately $0.26 million for the year ended December 31, 2021, primarily due to a net income of approximately $0.78 million adjusted by non-cash working capital. The adjustments for changes in assets and liabilities primarily included (i) an increase of approximately $0.68 million in accounts receivable, (ii) an increase of approximately $0.20 million in inventories, and (iii) a decrease of accounts payable in the amount of approximately $0.09 million.

Net cash used in operating activities of continuing operations was approximately $0.66 million for the year ended December 31, 2020, primarily due to a net income of approximately $0.05 million adjusted by non-cash working capital. The adjustments for changes in assets and liabilities primarily included (i) an increase of approximately $0.92 million in accounts receivable, (ii) an increase of approximately $0.12 million in inventories, and (iii) an increase of accounts payable in the amount of approximately $0.13 million.

*<u>Investing Activities:</u>*

Net cash used in investing activities of continuing operations was $0.68 million for the year ended December 31, 2021, with approximately $0.68 million spent on the purchase of property and equipment. Net cash used in investing activities of continuing operations was approximately $0.17 million for the year ended December 31, 2020, with approximately $0.12 million spent on the purchase of a patent and approximately $0.05 million spent on property and equipment.

*<u>Financing Activities:</u>*

Net cash provided by financing activities of continuing operations was approximately $1.73 million for the year ended December 31, 2021. It was mainly attributable to capital contributions received from the shareholders of approximately $1.7 million and a long-term loan of $32,257 borrowed from a financial service institution. Net cash provided by financing activities of continuing operations was approximately $0.49 million for the year ended December 31, 2020. It was attributable to proceeds from issuance of the Company's ordinary shares of approximately $0.03 million and borrowings from related parties of approximately $0.46 million.

Our Company expects to incur additional costs associated with becoming a public company in the United States, primarily due to increased expenses related to accounting and tax services, legal expenses and investor and stockholder-related expenses. These additional long-term expenses may require our Company to seek other sources of financing, such as additional borrowings or public or private equity or debt capital. The availability of these other sources of financing will depend upon our financial condition and results of operations as well as prevailing market conditions and may not be available on terms reasonably acceptable to our Company or at all.

***Capital Resources***

The following table sets forth a summary of our assets and liability as of June 30, 2022 and December 31, 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** | **Change** | **Percentage<br> Change** |
| Cash and cash equivalents | $2884013 | $1857732 | $1026281 | 55.24% |
| Accounts receivables, net | 1998635 | 2418309 | (419674) | (17.35% |
| Amounts due from related parties | 5841 | 6148 | (307) | (4.99)% |
| Inventory | 276903 | 455249 | (178346) | (39.18)% |
| Deferred IPO expenses and other current assets | 202914 | 101408 | 101506 | 100.10% |
| **Total current assets** | 5368306 | 4838846 | 529460 | 10.94% |
| Property and equipment, net | 682521 | 806228 | (123707) | (15.34)% |
| Intangible assets, net | 101330 | 113002 | (11672) | 100.00% |
| Operating Lease Right-of-use assets, net | 129737 | 153059 | (23322) | (15.24)% |
| Deferred tax assets | 113566 | 244936 | (131370) | (53.63) % |
| **Total non-current assets** | 1027154 | 1317225 | (290071) | (22.02) % |
| Accounts payable | 103913 | 146208 | (42295) | (28.93)% |
| Taxes payable | 88879 | 116408 | (27529) | (23.65)% |
| Amounts due to related parties | 144667 | 49976 | 94691 | 189.47% |
| Accrued expenses and other current liabilities | 56690 | 88407 | (31717) | (35.88)% |
| Current maturities of Long-term loans | 5550 | 5614 |  | 0.00 |
| Current maturities of lease liabilities | 34532 | 34931 | (399) | (1.14) % |
| **Total current liabilities** | 434231 | 441544 | (7313) | (1.66) % |
| Long-term portion of long-term loans | 20349 | 24857 | (4508) | 100.00% |
| Long-term portion of lease liabilities | 99377 | 123147 | (23770) | (19.30) % |
| **Total non-current liabilities** | 119726 | 148004 | (28278) | (19.11) % |

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The following table sets forth a summary of our assets and liability as of December 31, 2021 and 2020:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** | **Change** | **Percentage<br> Change** |
| Cash and cash equivalents | $1857732 | $463513 | $1394219 | 300.79% |
| Accounts receivables, net | 2418309 | 1742043 | 676266 | 38.82% |
| Amounts due from related parties | 6148 | 6008 | 140 | 2.33% |
| Inventory | 455249 | 253835 | 201414 | 79.35% |
| Deferred IPO expenses and other current assets | 101408 | 50401 | 51007 | 101.20% |
| **Total current assets** | 4838846 | 2515800 | 2323046 | 92.34% |
| Property and equipment, net | 806228 | 239108 | 567120 | 237.18% |
| Intangible assets, net | 113002 | 122801 | (9799) | -7.98% |
| Operating Lease Right-of-use assets, net | 153059 | 180032 | (26973) | -14.98% |
| Deferred tax assets | 244936 | 494770 | (249834) | -50.49% |
| **Total non-current assets** | 1317225 | 1036711 | 280514 | 27.06% |
| Accounts payable | 146208 | 239037 | (92829) | -38.83% |
| Taxes payable | 116408 | 88648 | 27760 | 31.31% |
| Amounts due to related parties | 49976 | 5670585 | (5620609) | -99.12% |
| Accrued expenses and other current liabilities | 88407 | 58406 | 30001 | 51.37% |
| Current maturities of Long-term loans | 5614 |  | 5614 | >100% |
| Current maturities of lease liabilities | 34931 | 25569 | 9362 | 36.61% |
| **Total current liabilities** | 441544 | 6082245 | (5640701) | -92.74% |
| Long-term portion of long-term loans | 24857 |  | 24857 | >100.00% |
| Long-term portion of lease liabilities | 123147 | 154463 | (31316) | -20.27% |
| **Total non-current liabilities** | 148004 | 154463 | (6459) | -4.18% |

---

***Cash***

---

| | | | |
|:---|:---|:---|:---|
|  | **As of June 30** | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2021** | **2020** |
| Deposit on bank | $2884013 | $1857732 | $463513 |
| Total cash and cash equivalent | $2884013 | $1857732 | $463513 |

---

As of June 30, 2022, December 31, 2021 and 2020, we had a total of approximately $2.88 million, approximately $1.86 million and approximately $0.5 million in cash and cash equivalents, which are wholly currently on deposit and held inside the PRC. Cash balances in bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation or other comparable programs. We have not transferred and do not plan to transfer our cash in RMB outside of the PRC, in order to avoid unnecessary currency exchange costs.

***Deferred IPO expenses and other current assets***

As of June 30, 2022, balances of deferred IPO expenses and other current assets were $202,914, representing an increase of $101,506, compared to $101,408 as of December 31, 2021. As of December 31, 2021, balances of deferred IPO expenses and other current assets were $101,408, representing an increase of $51,007, compared to $50,401 as of December 31, 2020.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of June 30** | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2021** | **2020** |
| Other receivables | $51360 | $51432 | $50401 |
| Deferred IPO expenses | 151554 | 49976 |  |
| Total deferred IPO expenses and other current assets | $202914 | $101408 | $50401 |

---

***Current assets***

Current assets as of June 30, 2022 totaled approximately $5.37 million, representing an increase of approximately $0.53 million, or 10.94%, from approximately $4.84 million as of December 31, 2021. This increase primarily resulted from an increase in cash and cash equivalents of approximately $1.03 million and a decrease in accounts receivables of approximately $0.42 million.

Current assets as of December 31, 2021 totaled approximately $4.84 million, representing an increase of approximately $2.32 million, or 92.34%, from approximately $2.52 million as of December 31, 2020. The increase primarily resulted from an increase of approximately $1.4 million in cash and cash equivalents.

***Current liabilities***

Current liabilities as of June 30, 2022 were approximately $0.43 million, representing a decrease of approximately $0.01 million, or 1.66%, compared to approximately $0.44 million as of December 31, 2021. Current liabilities remained relatively stable without significant changes.

Current liabilities as of December 31, 2021 were approximately $0.44 million, representing a decrease of approximately $5.64 million, or 92.83%, compared to approximately $6.08 million as of December 31, 2020. The decrease was primarily due to a decrease of approximately of $5.67 million of amounts due to related parties.

*<u>Credit Facility</u>*

We partially finance our operations through proceeds borrowed from our shareholder, Guanzhao Lin. Amounts due to related parties as of June 30, 2022, December 31, 2021 and December 31, 2020 include:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of June 30** | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2021** | **2020** |
| Amounts due to related parties - Guanzhao Lin | $144667 | $49976 | $5670585 |
| Amounts due to related parties | $144667 | $49976 | $5670585 |

---

Our Company obtained several interest-free loans from Guanzhao Lin for daily operation and these loans are interest free, unsecured and repayable on demand. During the six months ended June 30, 2022, our Company borrowed approximately $0.14 million from Guanzhao Lin. During the year ended December 31, 2021, our Company borrowed approximately $1.75 million from Guanzhao Lin and converted approximately $7.40 million amounts due to Guanzhao Lin into contributed ownership. Our Company borrowed approximately $0.46 million from Guanzhao Lin during the year ended December 31, 2020.

*Contractual Obligations*

There were no significant contractual obligations and commercial commitments, other than our bank borrowings as disclosed herein, as of June 30, 2022, December 31, 2021 and 2020.

**Trend Information**

Other than as disclosed elsewhere in this prospectus, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenues, net income, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial conditions.

**Off-balance Sheet Commitments and Arrangements**

No off-balance sheet arrangements for the six months ended June 30, 2022 and the year ended December 31, 2021 and 2020 have, or in the opinion of management are likely to have, a current or future material effect on our consolidated financial condition or results of operations.

**Critical Accounting Policies**

The discussion and analysis of our financial condition and results of operations are based upon our audited consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these audited consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. We evaluate our estimates on an ongoing basis, including those related to revenue recognition and income taxes. We base our estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making the judgments we make about the carrying values of our assets and liabilities that are not readily apparent from other sources. Because these estimates can vary depending on the situation, actual results may differ from the estimates.

The critical accounting policies summarized in this section are discussed in further detail in the notes to the audited consolidated financial statements appearing elsewhere in this annual report. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable financial information about our operating results and financial condition.

*<u>Revenue Recognition</u>*

We adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") for all years presented. The core principle of this new revenue standard is that a company should recognize revenue when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration to which We expect to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle by us in determination of revenue recognition:

● Step 1: Identify the contract(s) with the customer;

● Step 2: Identify the performance obligations in the contract;

● Step 3: Determine the transaction price;

● Step 4: Allocate the transaction price to the performance obligations in the contract; and

● Step 5: Recognize revenue when or as the Company satisfies a performance obligation.

The Company derives revenue from the sales of household cleaning products, including fabric softener, laundry detergent, multi-functional cleaner and disinfectant, and baby skincare products and toiletries including camellia oil moisturizer, camellia oil lotion and shampoo. The Company relies on third-party distributors to distribute and sell the products in the PRC. The third-party distributors directly sell the products to the offline distributors who generally sell the products to the end customer through their own distribution networks. The Company considers distributors' purchase orders to be the contracts with customers. As part of its consideration of the contract, the Company evaluates certain factors including the customer's ability to pay. For each contract, the Company has the obligation to transfer products and deliver the products to the place designated by the customer within the agreed time, each of which is distinct, and has right to collect the payment within the agreed period after the distributors has control of the goods. The payment terms for the goods to be transferred can be identified in the order. The Company is a principal for this performance obligation. The transaction prices in the orders are agreed upon and fixed, once the quantity of goods is confirmed at the inception of the order, and there are no variable consideration clauses, such as discounts, incentives and penalties in the sales contract. The Company evaluated the historical sales return and the impact of sales return is immaterial. Accordingly, the Company did not accrue any sales return allowance. Due to the nature of the products sold by the Company, there are no warranties provided by the Company. There is only one performance obligation in the contract and there is no need for the allocation of transaction price. The Company is responsible for delivering the products from its warehouse to its distributors' storage facilities after accepting the finished products from the third-party manufacturers. The sales predominantly contain a single performance obligation and the revenue was recognized upon fulfillment of the performance obligation, after the distributors have control of the goods, typically at delivery, which is at a point of time.

*<u>Estimates</u>*

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, the valuation of accounts receivable, deferred IPO expenses, and other receivables, useful lives and impairment of long-lived assets, allowance for doubtful accounts, income taxes including the valuation allowance for deferred tax assets. While we believe that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.

*<u>Fair Value of Financial Instruments</u>*

We follow the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures ("ASC 820"). It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, short-term borrowings, accounts payable, accrued expenses and other payables, due to related parties and income tax payable approximate their fair value based on the short-term maturity of these instruments.

*<u>Recent Accounting Pronouncements</u>*

In June 2016, the Financial Accounting Standards Board("FASB") issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. Early adoption is permitted. Although the Company adopted the guidance, there was no impact on the consolidated financial statements for the Company's two fiscal years ended on December 31, 2021 and 2020 and the periods ended June 30, 2022 and 2021, since the Company did not have any assets held at amortized cost basis or available-for-sale debt securities as of June 30, 2022 and December 31, 2021 and 2020.

In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118," which amends the FASB ASC and XBRL Taxonomy based on the Tax Cuts and Jobs Act, or the Act, that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 that was released by the SEC. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. We adopted the amendment on June 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company's financial position, as of June 30, 2022 and December 31, 2021 and 2020, or the results of operations and statement of cash flows for the years ended December 31, 2021 and 2020 and for the six months ended June 30, 2022 and 2021.

Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on our consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our consolidated financial condition, results of operations, cash flows, or disclosures.

**BUSINESS**

**Overview**

Our Company is an offshore holding company incorporated in the Cayman Islands. Our Company does not conduct any substantive operations on its own. Instead, it conducts its business operations in China through the operating entity, Fujian Blue-Touch Technology Co., Ltd. The operating entity commenced its operation in 2014 and is principally engaged in designing, developing, and selling baby skincare products and toiletries as well as household cleaning products under the brand *Blue-Touch*. The operating entity prides itself on the quality and safety of its products, and endeavors to protect human health and the ecological environment by adopting product formulations based on safe, sustainable and tested ingredients. Our Company, through the operating entity, aims to become a leading provider of baby skincare products and toiletries in China.

The operating entity's current product portfolio comprises two main categories of products, including baby skincare products and toiletries as well as household cleaning products. For the baby skincare products and toiletries, the representative products include camellia body oil, camellia oil moisturizer, camellia oil lotion, camellia oil 2-in-1 shampoo and body wash. The operating entity obtained a Chinese patent on camellia oil extraction and processing technology in 2020. Camellia oil, as an ingredient in the skincare products, is found to have moisturizing and nourishing effects on human bodies by third-party evaluation agencies with the expertise in cosmetic ingredient review. Such health effects constitute a strength of the operating entity's baby skincare products. For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, our revenue derived from sales of baby skincare products and toiletries was approximately $1.90 million, approximately $3.30 million and approximately $0.95 million, respectively, accounting for 48.72%, 49.47% and 30.68% of our total revenue for the periods, respectively. For the household cleaning products, the signature products comprise fabric softener, laundry detergent, multi-functional cleaner and disinfectant. The operating entity developed a formula featuring compound fruit enzymes in 2017 and has applied it to certain household cleaning products, which we believe improved product effectiveness based on third-party research results. For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, our revenue derived from sales of household cleaning products was approximately $2 million, approximately $3.36 million and approximately $2.15 million, respectively, accounting for 51.28%, 50.53% and 69.32% of our total revenue for the periods, respectively.

The operating entity relies on third-party manufacturers to manufacture its products and depends on offline distributors to sell its products in China. For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the operating entity worked with eight, five and five third-party manufacturers located in the south of China, respectively. For the same fiscal years, the operating entity collaborated with eighteen, seventeen and sixteen offline distributors located throughout China, respectively. The operating entity's products are principally distributed in five Chinese provinces, consisting of Fujian, Shandong, Jiangsu, Hunan, and Zhejiang.

The operating entity dedicates innovation and development efforts and capacity to improving the existing product formulations and launching new products primarily based on vegetable raw materials. To promote innovation and development, the operating entity collaborates with external consultants and cultivates its own research experts. The operating entity has collaborated with Guangzhou Bangduo for more than two years, to improve the existing product formulations, develop new camellia oil products, and innovate products based on other camellia tree parts, such as camellia leaves and flowers. The operating entity also employs its own product innovation and research experts, each of whom has approximately 10 years of industry experience on average. The operating entity is led by a management team who collectively have keen understanding of product innovation and development as well as decades of strategic and operating experience in the maternal and newborn skincare industry.

Our Company's revenue and net income have demonstrated a growth momentum in the previous two fiscal years. During the six month ended June 30, 2022, our revenue and net income was $3,891,408 and $567,472, respectively. In the fiscal years ended December 31, 2021, and 2020, our revenue was $6,655,515 and $3,096,924, respectively, representing a growth rate of 114.91%. For the same fiscal years, our net income was $775,522 and $49,436, respectively, representing a growth rate of 1468.74%.

**Our Strengths**

The operating entity focuses on creating value through the following drivers:

***Product Innovation Capacity***

The operating entity seeks to innovate and develop a unique product portfolio focusing on protecting human health and the ecological environment. The operating entity has collaborated with Guangzhou Bangduo for more than two years, to improve the existing product formulations, develop new camellia oil products, and innovate products based on other camellia tree parts, such as camellia leaves and flowers. The operating entity will be entitled to own the intellectual property resulting from such collaboration with Guangzhou Bangduo. In addition to establishing an alliance with external consultants at Guangzhou Bangduo, the operating entity also cultivates its internal innovation and development team which comprises three full-time employees and two professional consultants, each of whom has approximately 10 years of industry experience on average. Each of the two professional consultants has more than 20 years of industry experience; one having served as an expert at a research center associated with a world-renowned consumer-goods company, and the other one working closely with hospitals and health technology companies.

***Product Quality Control***

The operating entity maintains product quality and safety in accordance with the customary industry standards and the applicable legal standards in China. It endeavors to select safe botanical ingredients for the production of its products. It puts its skincare product formulations through science laboratory safety tests, including various safety assessments and toxicology experiments, as required by the applicable PRC laws and regulations.

***Established Relationships with Manufacturers and Distributors***

We believe that the operating entity's strong relationships with major manufacturers and top distributors are one of its strongest advantages. For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the operating entity maintained stable relationships with substantially all of its manufacturers and distributors. As of the date of this prospectus, there have not been any business interruptions with these manufacturers and distributors, except for the disruptions caused by the COVID-19 pandemic. Such sustainable relationships promote stable product supply and well-established distribution networks, thereby ensuring the operating entity's ability to offer the products to the target consumers in a timely and cost-effective manner. For the operating entity's major manufacturers and distributors, see "—Business Operations."

***Experienced and professional management team***

The operating entity's management team has extensive industry or management experience, which reaches approximately 10 years on average for each member. The management team has accumulated comprehensive knowledge in finance, sales, product management, product innovation and development, and administration matters.

**Growth Strategies**

In order to maintain the operating entity's competitiveness in the marketplace, the operating entity plans to adopt the following growth strategies:

&nbsp;&nbsp;&nbsp;&nbsp;· Launching
 new products and brands;

&nbsp;&nbsp;&nbsp;&nbsp;· Expanding
 offline distribution networks;

&nbsp;&nbsp;&nbsp;&nbsp;· Establishing
 online sales channels; and

&nbsp;&nbsp;&nbsp;&nbsp;· Opening
 physical stores and cooperating with retail establishments.

In the short term, or in the next three years, the operating entity plans to increase its brand recognition and corporate profitability by launching no fewer than fifty new products and expanding its offline distribution networks. In the medium term, or in the next three to five years, the operating entity plans to establish online sales channels without compromising the existing offline sales networks. To increase online sales, the operating entity considers building new brands or developing new products for online sales only. In the long term, or in more than five years, the operating entity plans to expand the existing sales channels and build its own sales channels by establishing signature stores, opening franchise stores, selling the products through third-party retail establishments, as well as through mergers and acquisitions of appropriate distributors.

As of the date of this prospectus, the operating entity's product development strategy is proceeding as planned. We expect the operating entity will launch no fewer than ten new products onto the market in the next 12 months from the date of this prospectus. By implementing the growth strategies, we hope the operating entity will improve its results of operations, offer safe, reliable and reasonably priced skincare products to the consumers, and grow into a leader of the Chinese maternal and newborn skincare industry.

**Business Operations**

Our Company's headquarters is in Fuzhou City, Fujian Province, China. The operating entity works with third-party manufacturers and offline distributors to conduct its business operations.

***Sourcing and Production***

The operating entity has no manufacturing facilities and relies on third-party manufacturers to produce its products. The operating entity stipulates the product formulation criteria, brands products, and outsources production to third-party manufacturers. The operating entity depends on certain third-party manufacturers for different product types. The third-party manufacturers produce products in accordance with the operating entity's specific orders. To determine the type and quantity of products that are to be manufactured, the operating entity gathers, considers, and analyzes customer demand, market predictions, and product inventory status.

The operating entity signs annual processing and manufacturing agreements with third-party manufacturers. The decision of whether to outsource production to a particular third-party manufacturer is based on the analysis of various factors, including production qualifications for skincare products, manufacturing capacity, industry experience, operating scale, corporate reputation, corporate credit history, corporate management, location, previous governmental punishments, and pending commercial litigation. For the six months ended June 30, 2022, the operating entity worked with eight third-party manufacturers located in the south of China, three of which independently accounted for at least 10% of the finished products by value. For the fiscal years ended December 31, 2021, and 2020, the operating entity worked with five third-party manufacturers located in the south of China, four of which independently accounted for at least 10% of the finished products by value. For the same fiscal periods, the operating entity maintained stable relationships with substantially all the third-party manufacturers and there have not been any manufacturing interruptions or business disputes with such manufacturers. If the operating entity loses any one third-party manufacturer, we believe that the operating entity would be able to find a replacement of appropriate manufacturing capacity at reasonable cost due to the low concentration and high competitiveness of manufacturers. As such, we do not believe that the loss of any one third-party manufacturer would have a material adverse impact on the operating entity's ability to offer its products.

The table below summarizes the major contract terms with the top third-party manufacturers and their respective revenue percentages for six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Percentage of the total revenue for the six months ended June 30, 2022** | **Percentage of the total revenue for fiscal year 2021** | **Percentage of the total revenue for fiscal year 2020** | **Major contract terms** |
| **Manufacturer A** | 25.50% | 22.60% | 27.80% | (1) Products to be manufactured are household cleaning products; <br> (2) product shipping shall be made within 15 days of order placement; <br> (3) product sourcing, manufacturing, packaging, and labeling shall be consistent with the operating entity's requirements; <br> (4) the manufacturer provides guarantee for the safety of raw materials; and <br> (5) the operating entity shall pay within 30 days of accepting the products without any objection. |
| **Manufacturer B** | 25.00% | 28.70% | 17.70% | (1) Products to be manufactured are baby skincare products; <br> (2) product sourcing, manufacturing, packaging and labeling shall be consistent with the applicable laws and the operating entity's requirements; <br> (3) product quantity and shipping shall be provided in each specific order; <br> (4) the manufacturer shall be responsible for product safety or quality; and <br> (5) the operating entity shall pay within 30 days of accepting the products without any objection. |
| **Manufacturer C** | 9.30% | 14.30% | 10.50% | (1) Products to be manufactured are baby skincare products; <br> (2) product sourcing, manufacturing, packaging and labeling shall be consistent with the applicable laws and the operating entity's requirements; <br> (3) the manufacturer shall maintain product quality; and <br> (4) if products are damaged during the transportation process from the manufacturer to the operating entity, the manufacturer shall assist with claiming compensation from the transportation agency or the insurance company. |
| **Manufacturer D** | 27.40% | 26.60% | 35.50% | (1) Products to be manufactured are household cleaning products; <br> (2) product manufacturing, packaging and labeling shall be consistent with the operating entity's requirements; <br> (3) product quantity and shipping shall be provided in each specific order; <br> (4) the manufacturer shall maintain product quality; <br> (5) the manufacturer shall purchase transportation insurance or otherwise bear the risk of loss associated with transporting products from the manufacturer to the operating entity; and <br> (6) the operating entity shall pay within 30 days of accepting the products without any objection. |

---

In addition, the production of the operating entity's products could be affected by the cost and availability of raw materials, such as camellia seed oils, grape seed soils, sodium hyaluronate, fruit enzymes, and packaging components. See "Risk Factors—The loss of multiple suppliers or a significant disruption or interruption in the supply chain may adversely affect the operating entity's business." The third-party manufacturers source and obtain all the raw materials to produce the operating entity's products. According to the third-party manufacturers' price quotations and the operating entity's assessment of market conditions, the price and supply of raw materials remained stable in the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020.

***Distribution and Sale***

After manufacturing, packaging, and labeling, the operating entity sells its products to offline distributors who generally sell the products through their distribution networks spanning mainly five provinces in China, consisting of Fujian, Shandong, Jiangsu, Hunan, and Zhejiang. The offline distributors generally do not sell the products directly to end consumers, but instead sell to supermarkets, convenience stores, and specialty stores for maternity and newborn care products, which then sell the products to end consumers. The type and quantity of products to be distributed depend on product popularity, product inventory status, and market predictions.

The decision of whether to entrust a particular offline distributor is based on the analysis of various factors, including years of relevant experience, distribution capacity in the target market, corporate reputation, previous governmental punishments, and pending commercial litigation. For the six months ended June 30, 2022, the operating entity worked with eighteen offline distributors that are located throughout China, the top three of which accounted for 14.80%, 10.70%, and 9.70% of the total revenue, respectively. For the fiscal year ended December 31, 2021, the operating entity worked with seventeen offline distributors, the top three of which accounted for 14.60%, 9.80%, and 9.70% of the total revenue, respectively. For the fiscal year ended December 31, 2020, the operating entity worked with sixteen offline distributors that are located throughout China, the top three of which accounted for 16.20%, 11.50%, and 10.30% of the total revenue, respectively. For the same fiscal periods, the operating entity maintained stable relationships with all the offline distributors and there have not been any interruptions or business disputes with such distributors. If the operating entity loses any one significant offline distributor, it might adversely affect the business operations in the short term, but we believe that the operating entity would be able to find a suitable replacement due to the increasing popularity of its branded products and the low concentration of distributors. As such, we do not believe that the loss of any one offline distributor would have an enduring material adverse impact on the operating entity's ability to distribute its products.

The table below summarizes the major contract terms with the top offline distributors and their respective revenue percentages for the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Percentage<br> of the<br> total<br> revenue for<br> the six<br> months<br> ended<br> June 30,<br> 2022**  | **Percentage of the <br> total revenue for<br> fiscal year 2021** | **Percentage of the <br> total revenue for<br> fiscal year 2020** | **Geographic locations <br> of distribution<br> networks (province)** | **Major contract terms** |
| **Distributor A** | 14.80% | 14.60% | 16.20% | Fujian | (1) The operating entity shall ship the products within 15 days of order placement; and |
| **Distributor B** | 9.60% | 9.80% | 11.50% | Hunan | (2) the distributor shall pay within 90 days of receiving the products. |
| **Distributor C** | 10.70% | 9.70% | 10.30% | Shandong |  |
| **Distributor D** | 8.50% | 9.20% | 9.80% | Zhejiang |  |
| **Distributor E** | 9.70% | 7.60% | 3.70% | Jiangsu |  |

---

The table below summarizes the number of offline distributors in each province where the operating entity's products are distributed for the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020:

---

| | | | |
|:---|:---|:---|:---|
| **Province** | **Number of <br> distributors<br> for the six<br> months <br> ended June<br> 30, 2022** | **Number of distributors in fiscal year 2021** | **Number of distributors for fiscal year 2020** |
| &nbsp;&nbsp; **Fujian** | 3 | 2 | 2 |
| &nbsp;&nbsp; **Shandong** | 2 | 2 | 2 |
| &nbsp;&nbsp; **Jiangsu** | 2 | 2 | 2 |
| &nbsp;&nbsp; **Hunan** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Zhejiang** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Beijing** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Shanghai** | 2 | 2 | 2 |
| &nbsp;&nbsp; **Henan** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Liaoning** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Qinghai** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Chongqing** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Anhui** | 1 | 1 | 1 |
| &nbsp;&nbsp; **Sichuan** | 1 | 1 | 0 |

---

***Logistics and Warehousing***

The third-party manufacturers deliver the finished products to the operating entity and bear the costs incurred by such delivery. Certain third-party manufacturers also bear the risk of loss associated with such delivery in accordance with their respective processing and manufacturing agreements. Thereafter, the operating entity stores the products in its warehouse with an area of approximately 600 square meters, delivers the products as needed by offline distributors, and is responsible for the delivery costs incurred by transporting the products from the operating entity to each offline distributor. The risk of loss is transferred from the operating entity to the transportation agency once the products leave the operating entity's warehouse and are received by the transportation agency. After the offline distributors accept the products at their storage facilities, they are responsible for the subsequent warehousing, logistics, and the risk of loss. For the operating entity's warehousing capacity, see "—Operating Lease Right-of-Use Assets."

**Our Products**

***Product Portfolio***

Motivated to provide quality and safe products to Chinese consumers, the operating entity has developed a product portfolio including two main categories, consisting of baby skincare products and toiletries and household cleaning products. As of the date of this prospectus, baby skincare products and toiletries have accounted for an increasing proportion of the total revenue and they are the operating entity's future focus for its business strategy.

<u>Baby skincare products and toiletries</u>

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| | | |
|:---|:---|:---|
| ![](tm2226747d2_f1asp5img01.jpg) | ![](tm2226747d2_f1asp5img02.jpg) | ![](tm2226747d2_f1asp5img03.jpg) |
| *Camellia Oil* | *Camellia Body Oil* | *Camellia Oil Lotion* |

---

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| | | |
|:---|:---|:---|
| ![](tm2226747d2_f1asp5img04.jpg) |  | ![](tm2226747d2_f1asp5img05.jpg) |
| *Camellia Oil Moisturizer* | | *Camellia Oil 2-in-1 Shampoo and body Wash* |

---

Baby skincare products and toiletries are marketed and sold under the brand *Blue-Touch* and include camellia oil, camellia body oil, camellia oil moisturizer, camellia oil lotion, and camellia oil 2-in-1 shampoo and body wash. The main ingredients generally contain vitamin E, camelia oil, and other safe components that feature organic origins and improved moisturizing attributes. The operating entity's proprietary camellia-oil-based product formulations serve as a common thread among these products and are a key differentiator in the operating entity's products from its competition. The operating entity devoted significant efforts to developing such camellia-oil-based product formulations. It used its patented technology to extract and process camellia oil, collaborated with external consultants at Guangzhou Bangduo to design at least three different experimental product formulations based on camellia oil for each new product to be developed. Thereafter, it selected one experimental product formulation after internal testing and fine-tuning, performed sample product testing on the selected product formulation, collected feedback from users on sample products, and put the products through stringent testing, as required by the applicable PRC laws and regulations.

For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, baby skincare products and toiletries accounted for 48.72%, 49.47% and 30.68% of the total revenue, respectively. For the same fiscal periods, sales of the operating entity's largest product, camellia oil, accounted for approximately 25.55%, 20.90% and 11.90% of the total revenue, respectively. Sales of the operating entity's second largest product, camellia body oil, accounted for approximately 9.43%, 12.34% and 8.01% of the total revenue, respectively.

<u>Household cleaning products</u>

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| | | |
|:---|:---|:---|
| ![](tm2226747d2_f1asp5img06.jpg) | ![](tm2226747d2_f1asp5img07.jpg) | ![](tm2226747d2_f1asp5img08.jpg) |
| *Laundry Detergent for Babies* | *Cleaning Wipes* | *Laundry Detergent for Lingerie* |

---

Household cleaning products are marketed under the brand *Blue-Touch* and include fruit enzyme bottle cleaner, fruit enzyme laundry detergent for babies, fruit enzyme laundry detergent for lingerie, fabric softener, multi-functional cleaner, disinfectant, and cleaning wipes, among other products. The operating entity developed a formula featuring compound fruit enzymes by testing dozens of fruit enzymes, selecting fruit enzymes that deliver better cleaning effects, and combining these fruit enzymes with other raw materials to achieve expected product naturality and effectiveness. Such formula featuring compound fruit enzymes has been applied to certain household cleaning products, which we believe improved product effectiveness. For the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the household cleaning products accounted for 51.28%, 50.53% and 69.32% of the total revenue, respectively.

***Target Consumers***

The baby skincare products and toiletries are tailor-made for babies from infancy through three years and attract female consumers between ages 25 and 35. The household cleaning products are fit for various applications and attract consumers of all age groups. We believe that a vast number of our female consumers between ages 25 and 35 are highly-educated young mothers, who research product ingredients and formulations and impose high requirements for the quality and safety of baby skincare products and toiletries. To understand changes in consumer preferences and industry trends, the operating entity collects market feedback from offline distributors, conducts market analyses, and attends online and offline industry events from time to time.

***Product Pricing***

The pricing of products sold to offline distributors is universal and does not vary with the identity of the distributor. Such pricing is based on the consideration of production costs, profit margins, and market prices of similar products. The pricing of products sold to target consumers is based on the universal market price determined by the operating entity and does not vary with the market area. To determine such universal market price, the operating entity considers product positioning, market prices of similar products, and the target consumers' purchasing power.

The universal market price for camellia oil baby skincare products and toiletries generally ranges from RMB100 (approximately $15.51) to RMB200 (approximately $30.02) per product. The universal market price for household cleaning products generally ranges from RMB30 (approximately $4.65) to RMB100 (approximately $15.51) per product. We believe that the operating entity's pricing is competitive and is not a barrier to growing the business.

**Product Quality and Safety**

The operating entity implements comprehensive measures to maintain product quality and safety. To ensure product quality and safety in the production processes, the operating entity carefully selects and evaluates the third-party manufacturers by conducting onsite inspections. All of the selected third-party manufacturers have the production qualifications. None of the third-party manufacturers have been investigated for product safety incidents or punished by the relevant government authorities for product safety issues. After selecting third-party manufacturers, the operating entity performs onsite supervision at such manufacturers' facilities from time to time to ensure the production processes are consistent with the operating entity's requirements.

To ensure product quality and safety in the distribution processes, the operating entity relies on the exercise of reasonable care by the offline distributors. Neither baby skincare products and toiletries nor household cleaning products necessitate any special transportation or inventory conditions.

To ensure product quality and safety in general, the operating entity selects and stipulates safe, sustainable and tested ingredients for the production of its products. The product formulations prioritize the use of vegetable-based raw materials. In addition, the operating entity ensures the products undergo stringent quality and safety tests. For instance, before dispatching the products from the manufacturing facilities, each third-party manufacturer is required to conduct quality and safety tests on each batch of the products. After receiving the products from the third-party manufacturers, our external consultant, Guangzhou Bangduo, performs random sampling for quality and safety testing. The testing focuses on both physical properties and chemical components of the products. If the testing uncovers any product quality or safety issue, the operating entity will immediately contact the third-party manufacturers, return the products to them for reprocessing, investigate the causes behind the issue, and require the third-party manufacturers to make rectification.

As of the date of this prospectus, the operating entity has not been subject to any significant product quality and safety incidents, nor has it been punished by any relevant government authorities for product quality and safety issues, nor has it received any complaints from any end consumers about product quality and safety issues.

**Product Innovation and Development**

We believe that innovation is an important driver of growth, attracting new customers, and retaining the existing customers. For more than two years, the operating entity has collaborated with Guangzhou Bangduo to improve the existing product formulations, develop new camellia oil products, and innovate products based on other camellia tree parts, such as camellia leaves and flowers. The operating entity will be entitled to own the intellectual property resulting from such collaboration with Guangzhou Bangduo. The operating entity also employs an internal innovation and development team to work with Guangzhou Bangduo, perform sample product testing and collect feedback from users on sample products. The operating entity's internal innovation and development team comprises five members, each of whom has approximately 10 years of industry experience on average. During the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the operating entity's total innovation and development expenditure reached approximately RMB792,325 ($121,650) , RMB1,896,635 ($294,172) and RMB1,557,582 ($225,930), respectively.

The operating entity's innovation and development efforts deliver noticeable benefits to its business and to the consumers. For example, the operating entity spent approximately ten months in developing its camellia oil baby skincare products formulations and launched these products in the fiscal year of 2020. Such products helped the operating entity recover from the negative impact of the COVID-19 pandemic. Such products have accounted for a growing percentage of the total revenue since they were launched and we believe such products have offered value to and gained increasing popularity among the consumers.

The operating entity plans to make continuing investments in product innovation and development, develop plant-based skincare products, attend industry exhibitions, and collect market feedback through its sales force, to offer visible consumer benefits and support the sustainable growth of its business.

**Sales and Marketing**

The operating entity conducts sales activities through its professional sales team. This team is comprised of nine members, each of whom has at least eight years of sales experience on average, as of the six months ended June 30, 2022. The operating entity encourages its professional sales team to explore new markets and establish new customer relationships through a commission reward structure.

The operating entity consolidates multi-channel marketing programs to increase the attractiveness of its products. The marketing programs are implemented through online advertising, social media marketing, and outdoor advertising activities within communities, to increase the publicity and word-of-mouth referrals of the products. The marketing programs are designed by a third-party advertising agency and supervised by the operating entity. The operating entity has been working with the same third-party advertising agency for more than two years, and such advertising agency was able to propose marketing programs and strategies in line with the operating entity's expectations. Pursuant to the agreement between the operating entity and such advertising agency in 2021, the agency shall plan and design the operating entity's marketing programs, and shall submit such programs to the operating entity for approval prior to implementation. If the operating entity raises any objection, the agency shall amend the marketing programs until the operating entity is satisfied. The operating entity reviews and considers the marketing programs each year to evaluate whether the operative programs focus on product quality and safety and whether they have been translated into trusted relationships with the target consumers.

**Market Competition**

The market in which the operating entity's products are sold is highly competitive. According to Respect Marketing Research Inc., whom the operating entity commissioned in September 2022 to produce the "China Maternal and Infant Washing & Care Product Industry Research Report" (the "RMR Report"), the size of the Chinese maternal and newborn bathing and skincare market was estimated to be $7.59 billion in 2021 and is expected to grow up to $12.92 billion in 2026. Growth drivers of this market include China's population base, China's recent birthrate-boosting family planning policy shift, Chinese consumers' rising disposable income, and Chinese consumers' increasing emphasis on quality of life, among others.

The operating entity's products compete against similar products of many large and small companies, including well-known global competitors. According to the RMR Report, global competitors include Johnson & Johnson, Aveeno, Pigeon and Sebamed, and local brands include Baby Elephant, Frog Prince, and Yumeijing. As new competitors enter the market, we expect competition in this market will continue to be intense. Competition in this market is primarily based on the development and the improvement of new and existing products and processes, product quality and safety, brand recognition, and product pricing.

**Human Capital**

The operating entity strives to attract, recruit, and retain talents through its compensation and benefit programs, as well as learning and development opportunities that support career advancement. In addition to salaries, the operating entity offers complementary benefits including, among other things, endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance, as required by the applicable laws and regulations in China.

The operating entity enters into employment agreements with each of its employees. The employment agreements typically contain confidentiality restrictions through the time period the information remains confidential, among other restrictions. We believe that the operating entity maintains good working relationships with its employees, and it has not experienced any labor disputes. None of the employees are represented by labor unions.

The operating entity has a total of 31 full-time employees and 2 part-time employees as of the date of this prospectus. The operating entity had 30, 30, and 31 full-time employees and 2, 2, and 2 part-time employees as of December 31, 2019, 2020, and 2021, respectively. The operating entity had 31 full-time employees and 2 part-time employees as of the six months ended June 30, 2022. The following table sets forth the numbers of employees categorized by function as of the date of this prospectus.

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| | |
|:---|:---|
| **Function** | **Number** |
| &nbsp;&nbsp;&nbsp;Management | 3 |
| &nbsp;&nbsp;&nbsp;Finance | 4 |
| &nbsp;&nbsp;&nbsp;General Administration | 5 |
| &nbsp;&nbsp;&nbsp;Sales | 9 |
| &nbsp;&nbsp;&nbsp;Product | 7 |
| &nbsp;&nbsp;&nbsp;Research and Development | 5 |
| &nbsp;&nbsp;&nbsp;**Total** | 33 |

---

**Operating Lease Right-of-Use Assets**

The operating entity's principal executive office is located in Fuzhou City, Fujian Province, China, with an area of approximately 1,000 square meters. The operating entity's warehouse is located in Fuzhou City, Fujian Province, China, with an area of approximately 600 square meters. The operating entity's principal executive office and warehouse are leased from the same party, Fujian Blue-Touch Products Inc., under one lease agreement. Under such lease agreement, the combined monthly rent for the principal executive office and warehouse is RMB19,600 (approximately $3,040) and the lease term is from January 1, 2019 to December 31, 2025. The lessor, Fujian Blue-Touch Products Inc., is an enterprise in which interests in the voting power are owned by close members of our controlling shareholder's family. The operating entity is entitled to the right of first refusal to renew the lease agreement upon one month's written notice of such renewal.

The operating entity's cosmetics production process testing and inspection facility is located in Fuzhou City, Fujian Province, China, with an area of approximately 450 square meters. Such facility is also leased from Fujian Blue-Touch Products Inc. Under the lease agreement, the lease term is from January 1, 2021 to December 31, 2025 and the monthly rent is RMB5,000 ($775.5). The lessor granted a waiver of eight months' rent and started collecting monthly rent from the operating entity on September 1, 2021. The rent was waived for a period when the facility was refurbished and the equipment was installed and we believe that such rent waiver is consistent with the real estate customary practice in China. The operating entity may exercise its right of first refusal to renew the lease agreement upon one year's written notice. The lease agreement may be terminated by the operating entity upon three months' notice.

The operating entity does not hold title or interest in any other property or plants. We believe that the current facilities are adequate for the time being. The operating entity intends to renew all the leases in accordance with the current leases. There may be a need to secure additional office space as the operating entity's business grows.

**Intellectual Property**

As of the date of this prospectus, the operating entity has registered eleven trademarks, five copyrights, one domain name, and two patents in China. These two patents are both owned by the operating entity and consist of (i) one invention patent which is protected for 20 years from the application date, and (ii) one design patent which is protected for ten years from the application date. The operating entity relies on a combination of intellectual property laws and restrictions on disclosure to protect its intellectual property rights. However, there is no assurance that this form of protection will be successful in any given case, particularly since the laws of the PRC do not protect proprietary rights as fully as in the United States. As of the date of this prospectus, the operating entity's intellectual property rights have not been subject to any adverse claims for infringement upon third parties' trademarks, licenses, and other intellectual property rights in China. The operating entity has not been involved in any litigation or other claims related to any third party's intellectual property rights. The chart below presents information about some intellectual property that the operating entity has registered or applied for.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Type | Name | Issuing Authority / <br> Registration Institution | Application <br> Date / <br> Registration <br> Date | Status | Expiration Date |
| Patent | Camellia oil extraction and application (Type: invention) | Patent Office of China National Intellectual Property Administration | November 25, 2015 | Registered | November 25, 2035 |
| Patent | Packaging bottle 1 (BT-001) (Type: design)  | Patent Office of China National Intellectual Property Administration | August 27, 2018 | Registered | August 26, 2028 |
| Trademark <br>| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 29) | Trademark Office of China National Intellectual Property Administration  | January 14, 2021 | Registered | January 13, 2031 |
|  | ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 10) |  | January 14, 2021 | Registered | January 13, 2031 |

---

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| | | | |
|:---|:---|:---|:---|
| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 21) | January 14, 2021 | Registered | January 13, 2031 |
| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 30) | January 14, 2021 | Registered | January 13, 2031 |
| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 5) | January 14, 2021 | Registered | January 13, 2031 |
| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 8) | February 14, 2021 | Registered | February 13, 2031 |
| ![](tm2226747d2_f1asp5img09.jpg)<br> (Trademark Class: 3) | December 28, 2019 | Registered | December 27, 2029 |
| ![](tm2226747d2_f1asp5img10.jpg)<br> (Trademark Class: 5) | May 7, 2020 | Registered | May 6, 2030 |
| ![IMG_256](tm2226747d2_f1asp5img11.jpg)<br> (Trademark Class: 5) | July 7, 2020 | Registered | July 6, 2030 |
| ![IMG_256](tm2226747d2_f1asp5img12.jpg)<br> (Trademark Class: 5) | April 21, 2020 | Registered | April 20, 2030 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;![](tm2226747d2_f1asp5img13.jpg)<br>(Trademark Class: 3) |  | &nbsp;&nbsp;October 14, 2019 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;October 13, 2029 |
| &nbsp;&nbsp;Copyright | &nbsp;&nbsp;Blue-Touch Product Packaging 1 | &nbsp;&nbsp;Fujian Provincial Copyright Administration | &nbsp;&nbsp;July 3, 2020 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Copyright | &nbsp;&nbsp;Blue-Touch Product Packaging 2 | &nbsp;&nbsp;Fujian Provincial Copyright Administration | &nbsp;&nbsp;July 3, 2020 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Copyright | &nbsp;&nbsp;Blue-Touch Product Packaging 3 | &nbsp;&nbsp;Fujian Provincial Copyright Administration | &nbsp;&nbsp;July 3, 2020 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Copyright | &nbsp;&nbsp;Blue-Touch Product Packaging 4 | &nbsp;&nbsp;Fujian Provincial Copyright Administration | &nbsp;&nbsp;July 3, 2020 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Copyright | &nbsp;&nbsp;Blue-Touch Product Packaging 5 | &nbsp;&nbsp;Fujian Provincial Copyright Administration | &nbsp;&nbsp;July 3, 2020 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Domain Name | &nbsp;&nbsp;blue-touch.com.cn | &nbsp;&nbsp;China Internet Network Information Center | &nbsp;&nbsp;February 25, 2021 | &nbsp;&nbsp;Registered | &nbsp;&nbsp;February 25, 2026 |

---

**Seasonality**

The operating entity's business is generally subject to seasonal fluctuations. The operating entity experiences peaks in demand for its baby skincare products in winter from October to December. We believe the consumers' heavier spending on the baby skincare products is partly due to the cold and dry winter weather in China. The revenue from baby skincare products from October to December can account for approximately 33% of the total annual revenue from baby skincare products. The household cleaning products are not subject to seasonal fluctuations.

**Material contracts**

In the preceding two years from the date of this prospectus, the operating entity has entered into no material contracts, excluding the contracts entered into in the ordinary course of its business, other than as described in this prospectus.

**Insurance**

The operating entity maintains certain insurance policies to safeguard against risks and unexpected events. For example, the operating entity provides social security insurance, including endowment insurance, medical insurance, unemployment insurance, employment injury insurance, and maternity insurance for its employees in compliance with the applicable PRC laws. The operating entity maintains auto insurance as required by the PRC laws. The operating entity does not maintain business interruption insurance or product liability insurance, which are not mandatory under the PRC laws. The operating entity does not maintain key person insurance. During the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the operating entity did not make any material insurance claims in relation to its business.

**Legal Proceeding**

From time to time, the operating entity may become a party to various legal or administrative proceedings arising in the ordinary course of its business, including actions with respect to intellectual property infringement, breach of contract, and labor and employment claims. As of the date of this prospectus, the operating entity is not a party to any material lawsuits, and we are not aware of any threats of lawsuits against the operating entity that are anticipated to have a major impact on the operating entity's business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of resources, including the management's time and attention.

 **REGULATIONS**

*This section sets forth a summary of applicable laws, rules, regulations, government and industry policies and requirements that have a significant impact on our operating entity's business in the PRC. This summary does not purport to be a complete description of all the laws and regulations that apply to our operating entity's business. Investors should note that the following summary is based on relevant laws and regulations in force as of the date of this prospectus, which may be subject to change.*

**Foreign Investment**

*PRC Company Law and Foreign Investment Laws*

The PRC Company Law was adopted by the Standing Committee of the National People's Congress of the PRC (the "SCNPC") on December 29, 1993, and was last amended on October 26, 2018 (the "Company Law"). The Company Law governs the establishment, operations and management of corporate entities in the PRC. On December 24, 2021, the SCNPC issued a draft revision to the Company Law (the "Draft Revision") and made it available for public comments. The Draft Revision provides additional stipulations regarding a corporate entity's establishment, liquidation, organizational structure and capital system, strengthens the responsibilities of shareholders and management personnel, and highlights corporate social responsibility. Foreign invested enterprises ("FIEs") must comply with the Company Law, unless the PRC foreign investment laws provide otherwise.

The Foreign Investment Law of the PRC (the "Foreign Investment Law") was adopted by the National People's Congress of the PRC (the "NPC") on March 15, 2019 and came into force on January 1, 2020. The Foreign Investment Law grants national treatment to an FIE except when such enterprise operates in industries deemed to be "encouraged," "restricted," or "prohibited." The Catalog of Encouraged Industries for Foreign Investment (2020 Edition) (the "Catalog") lists the "encouraged" industries for foreign investment. The Catalog was promulgated jointly by the National Development and Reform Commission (the "NDRC") and the Ministry of Commerce (the "MOFCOM") on December 27, 2020 and became effective on January 27, 2021. The Special Administrative Measures (Negative List) for the Entrance of Foreign Investment (2021 Version) (the "Negative List") identifies the "prohibited" and "restricted" industries for foreign investment. The Negative List was promulgated jointly by the NDRC and the MOFCOM on December 27, 2020 and became effective on January 1, 2022. The Catalog and the Negative List contain specific market entrance rules for foreign investment in different industries. If the investment falls within the "encouraged" category, such foreign investment will be entitled to certain preferential treatment and benefits extended by the government. If the investment falls within the "restricted" category, such foreign investment will be permitted to the extent that it satisfies certain restrictions under the PRC laws. If the investment falls within the "prohibited" category, such foreign investment will be prohibited. If the investment falls within an industry not included in the Negative List, such foreign investment will be allowed, unless it is specifically prohibited or restricted by other PRC laws and regulations.

The Implementing Regulations of the Foreign Investment Law (the "Implementing Regulations") were promulgated by the State Council of the PRC (the "State Council") on December 26, 2019 and came into effect on January 1, 2020. According to the Implementing Regulations, an FIE must be registered with the State Administration for Market Regulation (the "SAMR") or its authorized local counterparts. A foreign investor or an FIE must submit investment information to the MOFCOM or its local counterparts via the enterprise registration system and the enterprise credit information publicity system. The Foreign Investment Law and the Implementing Regulations apply to the investment made by an FIE in the PRC.

The Measures on Reporting of Foreign Investment Information (the "Reporting Measures"), promulgated jointly by the MOFCOM and the SAMR on December 30, 2019, came into effect on January 1, 2020. The Reporting Measures replaced the Provisional Measures on Record-filing Administration over the Establishment and Change of Foreign-invested Enterprises. Pursuant to the Reporting Measures, an FIE must report investment information for establishment, modification, dissolution and annual reports of the FIE.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither the Company nor the PRC subsidiaries have been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC Company Law or foreign investment laws.

*M&A Rules*

On August 8, 2006, the MOFCOM, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation (the "SAT"), the China Securities Regulatory Commission (the "CSRC"), the State Administration for Industry and Commerce, and the State Administration of Foreign Exchange (the "SAFE") jointly promulgated the Regulations on the Merger and Acquisition of Domestic Enterprises by Foreign Investors (the "M&A Rules"). The M&A Rules came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules require a foreign investor to obtain necessary approvals when the investor (i) acquires the equity of a Chinese enterprise so as to convert the Chinese enterprise into an FIE; (ii) subscribes for new equity of a Chinese enterprise so as to convert the Chinese enterprise into an FIE; (iii) establishes an FIE, which purchases and operates the assets of a Chinese enterprise; or (iv) purchases the assets of a Chinese enterprise, and then invests such assets to establish an FIE. The M&A Rules, among other things, further require that an offshore special purpose vehicle (the "SPV"), formed for overseas listing purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain the CSRC's approval prior to listing such SPV's securities on an overseas stock exchange, especially in the event that the SPV acquires shares or an equity interest in the PRC companies by offering the shares of any offshore companies. Pursuant to Article 11 of the M&A Rules, where a Chinese company, enterprise or natural person intends to acquire their related Chinese company in the name of an offshore company which they lawfully established or control, such acquisition shall be subject to the examination and approval of the MOFCOM.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the Company and the PRC subsidiaries are in full compliance with the M&A Rules in China, and there have not been notifications of any non-compliance.

*Overseas Listing*

 

On July 6, 2021, the relevant PRC government authorities released the Opinions on Strictly Cracking Down Illegal Securities Activities, which provided that the administration and supervision of overseas-listed China-based companies will be strengthened, and the special provisions of the State Council on overseas issuance and listing of shares by such companies will be revised, clarifying the responsibilities of domestic industry competent authorities and regulatory authorities.

 

On December 24, 2021, the CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures", and collectively with the Draft Administrative Provisions, the "Draft Rules Regarding Overseas Listing"), which stipulate that Chinese-based companies, or the issuer, shall fulfill the filing procedures after the issuer makes an application for initial public offering and listing in an overseas market, and certain overseas offering and listing such as those that constitute a threat to or endanger national security, as reviewed and determined by competent authorities under the State Council in accordance with law, may be prohibited under the Draft Rules Regarding Overseas Listing. On February 17, 2023, with the approval of the State Council, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "Trial Measures") and five supporting guidelines, which will come into effect on March 31, 2023. According to the Trial Measures, among other requirements, (1) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures with the CSRC; if a domestic company fails to complete the filing procedures, such domestic company may be subject to administrative penalties; and (2) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and such filings shall be submitted to the CSRC within three business days after the submission of the overseas offering and listing application. On the same day, the CSRC also held a press conference for the release of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which clarifies that (1) on or prior to the effective date of the Trial Measures, domestic companies that have already submitted valid applications for overseas offering and listing but have not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and must complete the filing before the completion of their overseas offering and listing; (2) a six-month transition period will be granted to domestic companies which, prior to the effective date of the Trial Measures, have already obtained the approval from overseas regulatory authorities or stock exchanges, but have not completed the indirect overseas listing; if domestic companies fail to complete the overseas listing within such six-month transition period, they shall file with the CSRC according to the requirements; and (3) the CSRC will solicit opinions from relevant regulatory authorities and complete the filing of the overseas listing of companies with contractual arrangements which duly meet the compliance requirements, and support the development and growth of these companies.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither we nor the PRC subsidiaries have been subject to any investigation, or received any notice, warning, or sanction from the CSRC or other applicable government authorities related to this offering. However, we will be required to file with the CSRC in relation to this offering and listing if we cannot obtain the approvals from the SEC and Nasdaq before March 31, 2023, or if we obtain the approvals on or before March 31, 2023 but fail to complete this offering and listing on or before September 30, 2023. If we are required to file with the CSRC for this offering and listing, there is no assurance that we can complete such filing in a timely manner or even at all. Any failure by us to comply with such filing requirements may result in an order to rectify, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.

In addition, on December 28, 2021, the Cyberspace Administration of China published the Cybersecurity Review Measures (2021), which came into effect on February 15, 2022 and has replaced the current Cybersecurity Review Measures (2020). The Cybersecurity Review Measures provides that the operators of critical information infrastructure must pass a cybersecurity review when purchasing network products and services which do or may affect national security. In addition, if an "online platform operator" that is in possession of personal data of more than one million users intends to list in a foreign country, it must apply for a cybersecurity review. Based on a set of Q&A published on the official website of the State Cipher Code Administration in connection with the issuance of the Cybersecurity Review Measures (2021), an official of the said administration indicated that an online platform operator should apply for a cybersecurity review prior to the submission of its listing application with non-PRC securities regulators.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), the PRC subsidiaries are unaffected by the Cybersecurity Review Measures because it is neither an operator of critical information infrastructure nor an "online platform operator" possessing personal data of more than one million users.

**Manufacture and Sale of Cosmetics**

*Manufacturing Licensing of Cosmetics and Cosmetics Classification*

Pursuant to the Cosmetics Supervision and Administration Regulation, which was promulgated on June 16, 2020 by the State Council and took effect on January 1, 2021, the term "cosmetics" refers to chemical and industrial products for daily use which are applied to the skin, hair, nails, lips and other surfaces of the human body by way of smearing, spraying or other similar methods for the purposes of cleansing, protection, beautification and dressing up. The products the operating entity sells are "cosmetics" defined by the Cosmetics Supervision and Administration Regulation. Before engaging in the production of cosmetics, an enterprise shall file an application for the cosmetics manufacturing permit with the provincial drug regulatory department. The cosmetics manufacturing permit is valid for five years.

According to the Cosmetics Supervision and Administration Regulation and the Cosmetics Classification Rules and Catalog, which was promulgated on April 8, 2021 by the National Medical Products Administration (the "NMPA") and took effect on May 1, 2021, and the Administrative Measures for the Registration and Record Filing of Cosmetics, which was promulgated on January 7, 2021 by the SAMR and took effect on May 1, 2021, the State implements category-based administration on cosmetics and cosmetic ingredients according to the degree of risks. Cosmetics are classified into two categories: special cosmetics and ordinary cosmetics. The cosmetics that are used for hair coloring, hair perm, freckle removal and whitening, sun protection and hair loss prevention and those that claim new efficacy are special cosmetics. The cosmetics other than the special cosmetics are ordinary cosmetics. The State exercises the registration administration on special cosmetics and record-filing administration on ordinary cosmetics. Cosmetic ingredients can be classified into two categories: new ingredients and ingredients that have been used. New cosmetic ingredients are natural or artificial ingredients that are used in cosmetics for the first time within the territory of China. The State implements registration administration on the new cosmetic ingredients that have the functions of preventing corrosion, sunscreen, coloring, hair dyeing, freckle removal and whitening and record-filing administration on other new cosmetic ingredients.

According to the List of Banned Ingredients for Cosmetics and List of Banned Plant (Animal) Ingredients for Cosmetics, which was updated by the NMPA on May 26, 2021, and the Catalog of Used Cosmetic Ingredients (2021 Edition), which was promulgated by the NMPA on April 27, 2021 and took effect on May 1, 2021, cosmetics registrants or record-filing parties shall not produce or import cosmetics that use prohibited ingredients in their formulas and such prohibited ingredients are specified in the List of Banned Ingredients for Cosmetics and List of Banned Plant (Animal) Ingredients for Cosmetics. The Catalog of Used Cosmetic Ingredients (2021 Edition) lists certain ingredients as banned, restricted or permitted ingredients for cosmetics. The cosmetics registrants or record-filing parties shall use the ingredients that meet the laws and regulations, mandatory national standards, and the Technical Specifications for Safety of Cosmetics.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither the Company nor the operating entity is engaged in any production activities. Third-party manufacturers are engaged for the production of the operating entity's products and all of such third-party manufacturers have the cosmetics manufacturing permits. All of the cosmetic products that the operating entity sells have been properly filed. All ingredients used in the products that the operating entity sells are permitted to use in the production of cosmetics, as required by the applicable governmental authorities.

*Cosmetics Label*

According to the Cosmetics Supervision and Administration Regulation, the smallest sales unit of cosmetics shall be labeled. The labels shall comply with the relevant laws, administrative regulations and mandatory national standards, and be true, complete and accurate. Pursuant to the Measures for Administration of Cosmetic Labels, which was promulgated on May 31, 2021 by the NMPA and became effective on May 1, 2022, cosmetics shall be attached with the Chinese labels.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), all of the cosmetics products that the operating entity sells have Chinese labels attached in accordance with the Measures for Administration of Cosmetic Labels. As of the date of this prospectus, neither the Company nor the operating entity has been subject to any investigation, or receives any notice, warning, or sanction from relevant government authorities related to non-compliance with the relevant laws.

*Toiletries and Skin Care Products for Children*

According to the Supervision and Administration of Cosmetics for Children, which was promulgated on September 30, 2021 by the NMPA and came into force as of January 1, 2022, the term "cosmetics for children" refers to toiletries and other skin care products that are applicable to the children of or below 12 years old and have cleaning, moisturizing, refreshing and sun-proofing effects. Cosmetics manufacturers and business operators shall establish and implement a record system to ensure the traceability of cosmetics for children. Cosmetics for children shall be produced in accordance with the manufacturing practice for cosmetics. The environmental requirements of the workshops for skin care cosmetics for children shall meet the relevant regulations.

The formula design of cosmetics for children shall follow the principles of "priority of safety," "necessity of efficacy" and "minimum formula." The cosmetic ingredients that have a long history of safe use shall be used, and no new ingredients that are still in the monitoring period may be used.

Cosmetics for children shall carry the signs for cosmetics for children as prescribed by the NMPA on the display side of the product packages.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), all of the cosmetics products for children that the operating entity sells meet the requirements of the Supervision and Administration of Cosmetics for Children.

**Product Quality and Production Safety**

Pursuant to the Production Safety Law of the PRC (the "Production Safety Law"), which was promulgated by the SCNPC on June 29, 2002, took effect on November 1, 2002 and was amended on June 1, 2004, August 27, 2009, and August 31, 2014, producers and business operators shall have the work safety conditions as specified in the Production Safety Law and relevant laws, administrative regulations and national standards or industrial specifications. Producers and business operators that do not have such conditions are not allowed to engage in production or operation activities.

The containers or transportation vehicles for dangerous articles used by producers and business operators shall be made by professional manufacturers in accordance with relevant regulations, and they shall not be put into use until they pass the tests and checks conducted by professionally qualified testing and checking institutions and safe use certificates or safety tags are issued. In addition, where dangerous articles are to be manufactured, run, transported, stored, used or to be disposed of or scrapped, the matter shall be submitted to the competent departments for approval in accordance with the relevant laws and regulations as well as the national standards or industrial specifications and shall be supervised and controlled by such departments.

According to the Product Quality Law of the PRC (the "Product Quality Law"), which was promulgated by the SCNPC on February 22, 1993, was last amended on December 29, 2018 and took effect on the same day, the Product Quality Law applies to all activities of production and sale of any product within the territory of the PRC, and the producers and sellers shall be liable for product quality in accordance with the Product Quality Law. According to the Product Quality Law, consumers or other victims who suffer personal injury or property losses due to product defects may demand compensation from the producer as well as the seller. Where the responsibility for product defects lies with the producer, the seller has the right to recover such compensation from the producer if it takes the responsibility and makes a compensation, and vice-verse. Violations of the Product Quality Law may result in the imposition of fines. In addition, the seller or producer may be ordered to suspend operation and its business license may be revoked. Criminal liability may be incurred in serious cases.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, neither the Company nor the operating entity has been subject to any investigation, nor received any notice, warning, or sanction from relevant government authorities related to non-compliance with the Production Safety Law or Product Quality Law.

 **Consumer Protection and Unfair Competition**

*Protection of Rights and Interests of Consumers*

According to the Law of the PRC on the Protection of Rights and Interests of Consumers (the "Consumer Protection Law") which was promulgated by the SCNPC on October 31, 1993, took effect on January 1, 1994 and was amended on August 27, 2009 and October 25, 2013, the rights and interests of consumers who purchase and use goods or receive services for consumption needs shall be protected. Business operators providing goods manufactured or sold by them to consumers or providing services shall comply with the Consumer Protection Law. Violations of the Consumer Protection Law may result in the imposition of fines. In addition, the operator will be ordered to suspend operations and its business license will be revoked. Criminal liability may be incurred in serious cases.

According to the Part VII tort liability of the Civil Code of the PRC promulgated by the NPC on May 28, 2020 and became effective on January 1, 2021, in the event of an injury caused by a defective product, either the manufacturer or seller of such product, as a tortfeasor, may be subject to tortious liability and relevant remedies seeking by the consumers. If the product defect is caused by the manufacturer, the manufacturer shall be held responsible and the seller, if having made the compensation, shall be entitled to seek reimbursement from the manufacturer. If, on the other hand, the defects of the products are caused by the fault of the seller, the seller shall be held responsible and the manufacturer, if having made the compensation, shall be entitled to seek reimbursement from the seller.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as the date of this prospectus, neither the Company nor the operating entity has been subject to any investigation, nor received any notice, warning, or sanction from relevant government authorities related to non-compliance with the relevant laws.

 *Unfair Competition*

According to the Law of the PRC Against Unfair Competition (the "Against Unfair Competition Law") which was promulgated by the SCNPC on September 2, 1993, took effect on December 1, 1993 and was amended on November 4, 2017 and April 23, 2019, business operators shall adhere to the principles of voluntary participation, equality, fairness and integrity in their production and business operation, and comply with laws and business ethics. Unfair competition referred to in the Against Unfair Competition Law shall mean the behavior of an operator who violates the provisions of this law in its production and business operation, disrupts market competition order, or harms the legitimate rights and interests of other business operators or consumers. Business operators who violate the provisions of the Against Unfair Competition Law and cause others to suffer damages shall bear civil liability pursuant to the law. Where the legitimate rights and interests of a business operator are harmed by unfair competitions, the business operator may file a lawsuit with a court. The compensation for a business operator who suffer damages due to unfair competition shall be determined in accordance with the actual losses suffered as a result of the infringement; where it is hard to ascertain the actual losses, the compensation shall be determined in accordance with the gains made by the infringer from the infringement. For business operators who infringe upon commercial secrets maliciously and if the case is serious, the compensation amount may be determined in accordance with one to five times the amount determined using the aforesaid method. The compensation amount shall also include reasonable expenses paid by the business operator to stop the infringement.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as the date of this prospectus, neither the Company nor the operating entity has been subject to any investigation, nor received any notice, warning, or sanction from relevant government authorities related to non-compliance with the Against Unfair Competition Law.

*Price Law*

According to the Price Law of the PRC (the "Price Law") promulgated by the SCNPC on December 29, 1998 and took effect on May 1, 1998, an operator must adhere to the principles of fairness, lawfulness, honesty and trustworthiness when setting a price. Production and operating costs and the market supply and demand situation will be the basis on which an operator determines the price. Operators which sell and purchase commodities or provide services must show marked prices in accordance with the provisions of the government department in charge of pricing. The name of the product, place of production, specifications, grade, price unit, price or service item and fee standard and other relevant details must be clearly indicated. An operator must not sell goods at a price higher than the marked price, nor collect any fees which are not clearly indicated. An operator must not carry out any improper pricing acts, such as colluding with others to manipulate market prices, thereby infringing on the legal rights and interests of other operators or consumers. If an operator is involved in any of the pricing infringement listed in the Price Law, authorities will order it to rectify the matter, will confiscate any illicit gains and may also impose a fine of up to five (5) times the amount of the illicit gains. A warning will be given and a fine may be imposed if there are no illicit gains. In serious circumstances, the operator will be ordered to suspend operations while rectification is being carried out or the administration for industry and commerce will revoke the business license. An operator which causes a consumer or another operator to pay too much due to a pricing infringement must refund the excess amount. If the consumer or other operator has incurred a loss as a result of the infringement, the operator will bear liability for compensation in accordance with the law. If an operator violates the provisions on clearly marked prices, authorities will order it to rectify the matter, will confiscate any illicit gains and may also impose a fine of up to 5,000 yuan.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, we believe the Company and the operating entity have been in full compliance with the Price Law and neither has received any notifications of any non-compliance of the related laws.

**Intellectual Property Rights**

*Trademarks*

The Trademark Law of the PRC (the "Trademark Law") was promulgated by the SCNPC on August 23, 1982, was last revised on April 23, 2019 and became effective on November 1, 2019. According to the Trademark Law, any natural person, legal person or other organization that needs to obtain the exclusive right to use a trademark for its goods or services in the course of manufacturing and business activities shall apply to the trademark office of the administrative department for industry and commerce under the State Council for trademark registration. A registered trademark refers to a trademark that is registered with the approval of the trademark office.

The owner of a registered trademark enjoys the exclusive right to use the trademark. A registered trademark shall be valid for 10 years, commencing from the date when its registration is approved. The exclusive right to use a registered trademark shall be limited to trademarks which are registered upon approval and to the commodities on which the use of a trademark is approved.

According to the Trademark Law, if anyone uses a trademark that is similar to a registered trademark on the same kind of goods, or uses a trademark that is identical with or similar to the registered trademark on similar goods, without the authorization of the registered trademark owner, and the use is likely to cause confusion, such use shall constitute infringement on the trademark owner's exclusive right to use the registered trademark. Any dispute over infringement upon the exclusive right to use a registered trademark shall be resolved through negotiation. Where the parties concerned refuse to negotiate or a negotiation fails, the trademark registrant or any interested party may file a lawsuit in the court, or request the administrative department for industry and commerce to deal with the dispute.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity has eleven registered trademarks in the PRC. See "Business—Intellectual Property."

*Copyrights*

The Copyright Law of the PRC (the "Copyright Law") was promulgated by the SCNPC on September 7, 1990, and was last amended on November 11, 2020 and became effective on June 1, 2021. According to the Copyright Law, works of Chinese citizens, legal persons or unincorporated organizations, whether published or not, shall have copyright in accordance with the Copyright Law. The National Copyright Administration shall be responsible for the administration of copyrights nationwide. The local departments of copyright at or above the county level shall be responsible for the administration of copyright in their respective administrative regions.

The duration of copyright protection is generally fifty years. Copyright includes the right of publication, authorship, alteration, integrity, reproduction, distribution, rental, exhibition, performance, projection, broadcasting, communication through information network, cinematography, adaptation, translation, compilation and other rights.

A copyright dispute may be settled through mediation, or be submitted to an arbitration institution for arbitration under a written arbitration agreement between the parties or under the arbitration clause in the copyright contract. In the event there is neither a written arbitration agreement between the parties nor an arbitration clause in the copyright contract, parties may directly bring a lawsuit in a court.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity has five registered copyrights in the PRC. See "Business—Intellectual Property."

*Domain names*

The Administrative Measures for Internet Domain Names was promulgated by the MIIT on August 24, 2017 and became effective on November 1, 2017. It applies the "first-to-file" principle to domain name registration service, unless otherwise provided in relevant rules.

According to the Interpretation of the Supreme People's Court on several issues concerning the Applicable Law in the trial of civil cases involving network domain names promulgated on July 17, 2001 and amended on December 29, 2020, where the court determines that the registration and use of a domain name constitutes infringement or unfair competition, it may order the defendant to stop the infringement or cancel the domain name, or, at the request of the plaintiff, order the plaintiff to register and use the domain name. If actual damage is caused to the right holder, the defendant may be ordered to compensate for the loss.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity has one registered domain name in the PRC. See "Business—Intellectual Property."

*Patents*

According to the PRC Patent Law promulgated by the SCNPC on March 12, 1984 and last amended on October 17, 2020 with effect from June 1, 2021, and its latest Implementation Rules promulgated by the State Council on January 9, 2010 and took into effect on February 1, 2010, the National Intellectual Property Administration is responsible for administering patents in the PRC. Inventions, utility models, and designs with the features of novelty, inventiveness and practical applicability, are three kinds of patent defined and protected under the PRC Patent Law. The State Intellectual Property Office is responsible for examining and approving patent applications. Once the application is approved, the applicants can have their patent under Chinese legal protection for a long term since its application date, which is 20 years for invention and ten years for utility models and designs.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the operating entity has two registered patents in the PRC. See "Business—Intellectual Property."

As of the date of this prospectus, to the best of our knowledge, the operating entity has legally obtained adequate copyrights, trademarks and domains names to support its operations and as its business develops, it may need to apply for or obtain more intellectual rights. To the best of our knowledge, neither the Company, nor the operating entity has infringed, nor have they received any notice of infringement or been subject to any disputes regarding the intellectual property of others since inception.

**Taxation**

*Enterprise Income Tax ("EIT")*

According to the Enterprise Income Tax Law of the PRC (the "EIT Law") and the Implementation Rules of the EIT Law, an enterprise established outside the PRC with a de facto management body within the PRC is considered as a resident enterprise for PRC enterprise income tax purposes. An enterprise which is established under the laws of foreign countries and has no de facto management body within the PRC, but has established institutions or premises in the PRC, or has no such institutions or premises but has income generated from the PRC, is considered as a non-resident enterprise. EIT shall be applicable at a uniform rate of 25% to both resident or non-resident enterprises. EIT shall be payable by a resident enterprise for income sourced within or outside the PRC. EIT shall be payable by a non-resident enterprise, for income sourced within the PRC by its institutions or premises established in the PRC, and for income sourced outside the PRC for which the institutions or premises established in the PRC have a de facto relationship. Where the non-resident enterprise has no institutions or premises established in the PRC or has income bearing no de facto relationship with the institution or premises established in the PRC, EIT shall be payable by the non-resident enterprise only for income sourced within the PRC at the rate of 20%. A PRC withholding tax at the rate of 10% is applicable to dividends payable to foreign investors that are non-resident enterprises to the extent that such dividends have their sources within the PRC, unless otherwise provided in any applicable tax treaty. Similarly, any gain realized on the transfer of equity interests by such investors is subject to the EIT at the rate of 10% if such gain is regarded as income derived from the PRC.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), the applicable EIT rate of the PRC subsidiaries is 25%. As of the date of this prospectus, we believe that the Company and the PRC subsidiaries are in full compliance with the EIT Law and rules in China, and there have not been any notifications of any instance of non-compliance provided to the Company or the PRC subsidiaries by the relevant authorities.

In addition, the SAT promulgated the Announcement of the SAT on Several Issues Relating to Enterprise Income Tax on Transfer of Assets between Non-resident Enterprises (the "SAT Bulletin 7") on February 3, 2015, which took effect on the same date. According to the SAT Bulletin 7, where a non-resident enterprise makes indirect transfer of assets such as the equity of a Chinese resident enterprise through arrangements which do not have a reasonable commercial objective, to circumvent enterprise income tax payment obligation, the indirect transfer shall be redefined pursuant to the provisions of Article 47 of the EIT Law as direct transfer of assets. For the purpose of SAT Bulletin 7, direct transfer of taxable assets shall mean assets of organizations and premises in China, immovables in China, equity investments in Chinese resident enterprises etc., which are directly held by a non-resident enterprise and for which the proceeds from transfer shall be subject to enterprise income tax in China, and indirect transfer of taxable assets in China shall mean transfer by a non-resident enterprise of equity and other similar interests of an overseas enterprise which holds taxable assets in China directly or indirectly (excluding Chinese resident enterprises registered overseas), which gives rise to a transaction that has identical or similar substantial results as direct transfer of taxable assets in China, including restructuring of a non-resident enterprise which causes changes in shareholders of an overseas enterprise.

The parties to the transaction of indirect transfer of taxable assets in China and the Chinese resident enterprise whose equity is the subject matter of the indirect transfer may report the transfer to the tax authorities in charge.

*Value-added Tax ("VAT")*

Pursuant to the Pilot Scheme for Replacing Business Tax with Value-Added Tax (the "Pilot Scheme"), which was issued jointly by the Ministry of Finance of the PRC ("MOF") and the SAT on November 16, 2011 and became effective on the same day, the VAT rate of 17% applies to movable property leasing services, the VAT rate of 11% applies to transportation and construction services, and the VAT rate of 6% applies to the other modern services, such as research and technical services, information technology services, cultural and creative services, and logistics support services. As of August 1, 2013, the Pilot Scheme has been implemented nationwide.

Pursuant to the Provisional Regulations on Value-added Tax of the PRC (the "VAT Regulations"), which was promulgated by the State Council on December 13, 1993, and was last amended and became effective on November 19, 2017, and the Implementing Rules of the Provisional Regulations on Value-added Tax of the PRC, which was promulgated by the MOF on December 25, 1993, and was last amended on October 28, 2011, entities or individuals in the PRC engaging in the sale of goods, services, intangible assets or real estate, the provision of processing, repairs and replacement services, and the importation of goods are required to pay VAT. The amount of VAT payable is calculated by subtracting "input VAT" from "output VAT." Where a taxpayer engages in the sale or importation of goods, provision of processing, repairs and replacement services, or moving property leasing, the VAT rate is 17%, except as otherwise provided in the VAT Regulations.

Pursuant to the Notice of the Ministry of Finance and the State Administration of Taxation on the Adjustment of VAT Rates promulgated by the Ministry of Finance and State Administration of Taxation on April 4, 2018 and took effective on May 1, 2018, the deduction rates of 17% applicable to the taxpayers who have VAT taxable sales activities are adjusted to 16%. Pursuant to the Announcement on Policies for Deepening the VAT Reform promulgated by the Ministry of Finance, State Administration of Taxation, General Administration of Customs on March 20, 2019 and took effect on April 1, 2019, for general VAT payers' sales activities or imports that are subject to VAT at an existing applicable rate of 16%, the applicable VAT rate is adjusted to 13%.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), the applicable VAT rate of the operating entity is 13%. As of the date of this prospectus, we believe that the Company and the operating entity are in full compliance with the VAT rules and regulations in China, and there have not been any notifications of any instances of non-compliance provided to the Company nor to the operating entity by the relevant authorities.

**Employment and Social Welfare**

*Labor Contracts*

Pursuant to the Labor Contract Law of the PRC, which was adopted by the SCNPC on June 29, 2007, was amended on December 28, 2012 and became effective on July 1, 2013, and the Regulations on Implementation of the Labor Contract Law of the PRC, which was promulgated by the State Council and became effective on September 18, 2008, a written labor contract should be concluded to establish a labor relationship. If no written labor contract is concluded as of the date of employment, such contract shall be concluded within one month as of the date of employment. If an employer fails to conclude a written labor contract with an employee for more than one month but less than one year as of the date of employment, the employer shall pay the employee two times his monthly salary. In addition, if an employer fails to conclude a written labor contract with an employee within one year as of the date of employment, the employer shall be deemed to have concluded an open-ended labor contract with the employee.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), the operating entity has signed labor contracts with all of the employees, and there have not been notifications of any instance of non-compliance.

*Social Insurance and Housing Provident Fund*

According to the Social Insurance Law of the PRC (the "Social Insurance Law"), which was promulgated by the SCNPC on October 28, 2010, and was amended and became effective on December 29, 2018, employees shall participate in the basic endowment insurance, basic medical insurance, unemployment insurance, employment injury insurance and maternity insurance. The basic endowment, medical insurance and unemployment insurance premiums shall be jointly paid by employers and employees. The employment injury insurance and maternity insurance premiums shall be paid by employers rather than employees. An employer shall apply to the local social insurance agency for social insurance registration in accordance with the Social Insurance Law. In addition, an employer shall declare and pay social insurance premiums in full and on time. No postponement, reduction or exemption of payment shall be allowed without any force majeure or other statutory exceptions. According to the Social Insurance Law, an employer that fails to make social insurance contributions may be ordered to pay the outstanding social insurance contributions within the deadline and may be liable to pay a late payment fee which equals to 0.05% of the outstanding amount for each day of delay. The employer also may be liable to a fine from one to three times the amount of the outstanding contributions if it fails to make such payments.

According to the Regulations on Management of Housing Provident Fund, which was promulgated by the State Council, and was last amended and became effective on March 24, 2019, an employer needs to pay housing provident funds for its employees. A newly established entity shall register with the relevant housing provident fund management center within 30 days from the date of establishment, and open a housing provident fund account at a designated bank on behalf of its employees within 20 days from the date of registration. When hiring a new employee, an employer shall register with the housing provident fund management center within 30 days from the date of employment, and open a housing provident fund account of such new employee at a designated bank. An employer shall pay the full amount of the housing provident fund on time, and shall not be overdue in the payment or underpay the housing provident fund. The housing provident fund payment by both an employer and an employee shall not be less than 5% of the average monthly salary of the employee in the previous year. If an employer fails to make full payment of housing provident funds for its employees in accordance with relevant laws and regulations, the housing provident fund management center shall order such employer to make the payment within a prescribed time limit. If payment is still not made within the prescribed time limit, an application may be made to the court for compulsory enforcement.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, in the years of 2019, 2020 and 2021, the operating entity did not pay social insurance contributions and housing provident fund contributions in full for all of the employees. The operating entity may be subject to late contribution fees or fines in relation to the underpaid employee benefits. Although the operating entity has not received any order or notice from the local authorities, nor any claims or complaints from their current and former employees regarding such non-compliance, we cannot assure you that the operating entity will not be subject to any order to rectify non-compliance in the future, nor can we assure you that there will not be any employee complaints regarding social insurance payments or housing provident fund contributions against the operating entity, or that the operating entity will not receive any claims in respect of social insurance payments or housing provident contributions.

**Foreign Currency Exchange and Dividend Distributions**

*Foreign Currency Exchange*

According to the Regulations on the Foreign Exchange Control of the PRC (the "Foreign Exchange Administration Regulations"), which was promulgated by the State Council on January 29, 1996, and was last amended on August 5, 2008, payments of current account items, such as trade and service-related foreign exchange transactions and dividend payments, can be made in foreign currencies without prior approval from the SAFE. However, prior approval from the SAFE is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital account items, such as capital transfer, direct investment, investment in securities, derivative products or loans. Under the Foreign Exchange Administration Regulations, if an FIE intends to pay dividends and provides certain evidencing documents (board resolution, tax certificates, etc.), such enterprise may purchase foreign currency without approval of the SAFE. If an FIE intends to engage in trade and services-related foreign exchange transactions and provides relevant commercial documents, such enterprise may purchase foreign currency without approval of the SAFE. An FIE may retain a certain amount of foreign currency, subject to a cap approved by the SAFE, to satisfy its foreign currency liabilities. In addition, foreign exchange transactions involving overseas direct investment, investment in securities, or derivative products must be registered with the governmental authorities in charge of foreign exchange administration, and must be approved or put on record by the other relevant governmental authorities where necessary.

The Circular on Reforming the Administrative Approaches to Settlement of Foreign Exchange Capital of Foreign-invested Enterprises (the "SAFE Circular 19") was promulgated by the SAFE on March 30, 2015, and became effective on June 1, 2015. In comparison to the Foreign Exchange Administration Regulations, the SAFE Circular 19 provides greater flexibility to an FIE in converting foreign exchange capital in its capital account into Renminbi funds, and allows an FIE to use its converted Renminbi funds to make equity investments in China after performing required procedures. Under the SAFE Circular 19, an FIE may choose to convert any amount of foreign exchange capital in its capital account into Renminbi funds according to its actual business needs. The converted Renminbi funds will be kept in a designated account. If an FIE intends to initiate a new foreign exchange transaction in its capital account, it must provide supporting documents and go through the review process with the bank. An FIE is allowed to use its converted Renminbi funds only within the approved business scope.

On June 9, 2016, the SAFE issued the Circular on Management of Foreign Exchange Settlement under the Capital Account (the "SAFE Circular 16"), which reiterates some of the rules set forth in the SAFE Circular 19. According to the SAFE Circular 16, an enterprise may convert its foreign exchange capital, foreign debt, and funds recovered from overseas listing into Renminbi on a discretionary basis. The converted Renminbi funds may be used to extend loans to related parties or repay inter-company loans (including advances by third parties).

On October 23, 2019, the SAFE issued the Circular of Further Promoting Cross-border Trade and Investment Facilitation (the "SAFE Circular 28"), which expressly allows an FIE, which does not have equity investments in its approved business scope, to use capital obtained from foreign exchange settlement to make equity investments in China as long as the investments are real and in compliance with the foreign investment-related laws and regulations. In addition, the SAFE Circular 28 stipulates that any eligible enterprise in certain pilot areas may use receipts from registered capital, foreign debt and overseas listing, for the purpose of domestic payments, without providing authenticity supporting materials to relevant banks prior to such domestic payments.

On November 19, 2012, the SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment (the "SAFE Circular 59"), which became effective on December 17, 2012 and was amended on October 10, 2018. The SAFE Circular 59 substantially amends and simplifies the foreign exchange procedure. According to the SAFE Circular 59, approval or verification from the SAFE is not required for a foreign investor or an FIE: (i) to open various special purpose foreign exchange accounts, such as pre-investment expenses accounts, foreign exchange capital accounts, asset realization accounts, and guarantee accounts; (ii) to reinvest his lawful income derived in the PRC, such as profits, proceeds of equity transfer, capital reduction, liquidation and early repatriation of investment; or (iii) to remit foreign exchange capital as a result of capital reduction, liquidation, early repatriation or stock transfer. Multiple capital accounts for the same entity may be opened in different provinces.

On July 4, 2014, the SAFE promulgated the Circular of the SAFE on Foreign Exchange Administration of Overseas Investments and Financing and Round-Trip Investments by Domestic Residents via Special Purpose Vehicles (the "SAFE Circular 37"). According to the SAFE Circular 37, a Chinese resident must apply to a local SAFE branch to register foreign exchange before contributing money to an overseas SPV. An overseas SPV refers to an overseas company that is directly incorporated or indirectly controlled by a Chinese resident using its assets or rights and interests for the purpose of investments and financing. Following the initial registration, in the event of any alternation in the basic information, such as shareholders, name and operating duration of any individual Chinese resident, or key information, such as increases or decreases in capital, or equity transfers, swaps, consolidations, or splits, a Chinese resident must register the change in the foreign exchange with a local SAFE branch. In the event that a Chinese shareholder holding interest in an overseas SPV fails to fulfill the required SAFE registration, the SPV's PRC subsidiaries may be restricted from making profit distributions to the offshore parent and prohibited from carrying out cross-border foreign exchange transactions, and the SPV may be restricted from contributing additional capital to its PRC subsidiaries. Furthermore, failure to comply with the various SAFE registration requirements described above could result in liability under the PRC law for evasion of foreign exchange controls.

On February 13, 2015, the Circular of Further Simplifying and Improving the Foreign Exchange Management Policies for Direct Investment (the "SAFE Circular 13") was promulgated by the SAFE and took effect on June 1, 2015. The SAFE Circular 13 cancels registration and verification of foreign exchange under direct investment. Chinese and overseas investment entities can go directly to banks for registration for foreign exchange under domestic or overseas direct investment. The SAFE Circular 13 simplifies procedures for some direct investment-related foreign exchange transactions, and cancels annual check of foreign exchange for direct investment and replaces it with registration for accumulated equity in domestic and overseas direct investment.

Pursuant to the Circular 37, a PRC resident shall register with a local SAFE branch before he or she contributes assets or equity interests in an overseas SPV, that is directly established or controlled by the PRC resident for the purpose of conducting overseas investment or financing. Failure to comply with the SAFE registration requirements could result in penalties for evasion of foreign exchange controls. The Circular No. 13 provides that banks can directly handle the initial foreign exchange registration and amendment registration under the Circular 37.

According to our PRC legal counsel, AllBright Law Offices (Fuzhou), as of the date of this prospectus, the PRC resident shareholders have completed foreign exchange registration under the SAFE Circular 37 and other related regulations.

*Dividend Distributions*

If our Company determine to pay dividends on any of our Ordinary Shares in the future, as a holding company incorporated in the Cayman Islands, our Company will be dependent on receipt of funds from the WFOE. The WFOE in turn will be dependent on receipt of funds from the operating entity.

The WFOE is a wholly foreign-owned enterprise under the PRC law. The regulations governing the distribution of dividends paid by the WFOE include Corporate Law (1993) as lastly amended in 2009, the Foreign Investment Law and its implementing Regulations, and the Enterprise Income Tax Law (2007) as lastly amended in 2018 and its implementation Regulations (2007) as lastly amended in 2019.

Current PRC regulations permit the operating entity to pay dividends to the WFOE only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other purposes, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, our Company may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries and affiliates in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If our Company or our subsidiaries are unable to receive all of the revenue from our operations, our Company may be unable to pay dividends on our Ordinary Shares.

Cash dividends, if any, on our Ordinary Shares will be paid in U.S. dollars. The WFOE is considered a resident enterprise for PRC tax purposes, any dividends that the operating entity pays to the WFOE may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.

In order for our Company to pay dividends to our shareholders, our Company will rely on payments made from the operating entity to the WFOE, and the distribution of such payments to our Company. According to the PRC Enterprise Income Tax Law, such payments from the operating entity to the WFOE are subject to the PRC enterprise income tax at a rate of 25%.

**MANAGEMENT**

**Directors and Executive Officers**

The following individuals are members of the board of directors and executive management of our Company as of the date of this prospectus.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Guanzhao Lin | 51 | Chief Executive Officer, Chairman of the Board of Directors |
| Jinshui Ying | 59 | Chief Financial Officer |
| Jifeng Huang | 50 | Director |
| \*Jindan Lin | 38 | Independent Director Nominee |
| \*Shuo Chen | 28 | Independent Director Nominee |
| \*Yuan Yuan | 46 | Independent Director Nominee |

---

\* This individual has indicated his or her assent to occupy such position immediately prior to the effectiveness of our registration statement, of which this prospectus is a part.

The following is a brief biography of each of our executive officers and directors or director nominees:

Mr. Guanzhao Lin has served as our Chief Executive Officer and Chairman of the Board of Directors since September 2022. Since September 2014, he has also served as the general manager of our Company's operating entity. From April 2003 to June 2010, he was the chief executive officer of 2W Products, Corp. From April 2001 to January 2005, he was the chief executive officer of 2Win, Inc. He studied business management at LaGuardia Community College from 1997 to 2000.

Mr. Jinshui Ying has served as our Chief Financial Officer since September 2022. Since August 2022, he has also served as the financial director at our Company's operating entity. From September 2019 to July 2022, he was an accountant at Fuzhou Zeshixin Education Technology Co., Ltd. From August 2016 to August 2019, he was an accountant at Fujian Tangli Zongheng Technology Development Co., Ltd. From January 2014 to July 2016, he was an accountant at Xiamen Oumai Home Furnishing Co., Ltd. From January 2009 to December 2013, he was an accountant at Fujian Jinshan Avenue Biotechnology Co., Ltd. From January 2003 to December 2008, he was an accountant at Fujian Nanping Sanhong Cable Co., Ltd. From September 1982 to December 2002, he was an accountant at Taqian Supply and Marketing Cooperative, Nanping City, Fujian Province. He studied Finance and Accounting at Fujian Economic School from September 1980 to August 1982.

Ms. Jifeng Huang has served as our director since September 2022. From January 2021 to August 2022, she served as the deputy general manager of Wenzhou Desheng Medical Beauty Clinic Co., Ltd. From 1995 to 2019, she was the sales manager at Yueqing Zhangkang Sanitary Ware Co., Ltd.

Ms. Jindan Lin will serve as our director upon effectiveness of our registration statement on Form F-1, of which this prospectus is a part. Since March 2018, she has also served as a lead accountant of AmerisourceBergen. From March 2015 to March 2018, she served as an accountant of AmerisourceBergen Specialty Group. From January 2014 to May 2014, she served as an inventory accountant of Advanced Beauty Inc. She received her Bachelor of Science in Accounting from Oklahoma State University in December 2013.

Mr. Shuo Chen will serve as our director upon effectiveness of our registration statement on Form F-1, of which this prospectus is a part. Since May 2021, he has also served as an associate lawyer with Ortoli Rosenstadt LLP. From November 2020 to May 2021, he served as a public services fellow at MTA Construction and Development Company. He studied law at Boston University College of Law from September 2017 to May 2020 where he obtained his Juris Doctor degree. He studied biology at Cornell University from August 2013 to May 2017 and obtained his Bachelor of Science degree from that university.

Ms. Yuan Yuan will serve as our director upon effectiveness of our registration statement on Form F-1, of which this prospectus is a part. From August 2002 to October 2007, Ms. Yuan served as a staff accountant of the Department of Interior Bureau of Land Management of the U.S federal government. From September 2001 to July 2002, Ms. Yuan served as an auditor of PricewaterhouseCoopers. From June 2000 to May 2001, Ms. Yuan served as a staff finance accountant of Quest Company. Ms. Yuan received her bachelor's degree in accounting and finance from the University of Colorado Denver in May 2001.

For additional information, see "Description of Share Capital—Directors."

**Family Relationships**

None of our directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.

**Involvement in Certain Legal Proceedings**

To the best of our knowledge, none of our directors or executive officers has, during the past 10 years, been involved in any legal proceedings described in subparagraph (f) of Item 401 of Regulation S-K.

**Board of Directors**

Our board of directors will consist of five directors upon the declaration of effectiveness of the registration statement of which this prospectus forms a part, three of whom shall be "independent" within the meaning of the corporate governance standards of the Nasdaq listing rules and will meet the criteria for independence set forth in Rule 10A-3 of the Exchange Act.

**Duties of Directors**

Under Cayman Islands law, our directors owe fiduciary duties to our Company, including a duty of loyalty, a duty to act honestly, and a duty to act in good faith in what they consider to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors also have a duty to exercise the skills they actually possess and such care and diligence that a reasonably prudent person would exercise in comparable circumstances.

In fulfilling their duty of care to our Company, our directors must ensure compliance with our memorandum and articles of association as may be amended from time to time. Our Company has a right to seek damages against any director who breaches a duty owed to us.

The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· appointing officers and
 determining the term of office of the officers;

· convening shareholders'
 annual general meetings and reporting its work to shareholders at such meeting; and

· declaring dividends and
 distributions.

**Terms of Directors and Executive Officers**

All of our executive officers are appointed by and serve at the discretion of our board of directors. Our directors are not subject to a term of office and hold office until their resignation, death or incapacity, or until their respective successors have been elected and qualified or until his or her office is otherwise vacated in accordance with our articles of association as may be amended from time to time.

A director will also be removed from office automatically if, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his creditors, (ii) dies or is found to be or becomes of unsound mind, (iii) resigns his office by notice in writing, (iv) without special leave of absence from our board, is absent from meeting of our board for a continuous period of six months, or (v) is removed from office pursuant to any other provisions of our memorandum and articles of association as may be amended from time to time.

**Qualification**

There is currently no shareholding qualification for directors, although a shareholding qualification for directors may be fixed by our shareholders by ordinary resolution.

**Interested Transactions**

A director may, subject to any separate requirement for audit committee approval under applicable law, the amended and restated memorandum and articles of association or the Nasdaq Stock Market Listing Rules, or disqualification by the chairman of the relevant board meeting, vote in respect of any contract or transaction in which he or she is interested, provided that the nature of the interest of any directors in such contract or transaction is disclosed by him or her at or prior to its consideration and any vote in that matter.

**Employment Agreements and Indemnification Agreements**

Our Company will enter into employment agreements with each of our executive officers. Pursuant to employment agreements, the form of which is filed as Exhibit 10.1 to this Registration Statement, our Company agreed to employ each of our executive officers for [●] years, which may be renewed upon both parties' agreement [●] days before the end of the current employment term, and payment of cash compensation and benefits shall become payable when our Company becomes a public reporting company in the US. Our Company may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the executive officer, including but not limited to the commitments of any serious or persistent breach or non-observance of the terms and conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty, receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with [●] prior written notice. Each executive officer has agreed to hold, both during and after the employment agreement expires, in strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information.

Our Company will also enter into indemnification agreements with each of our directors and executive officers. Under these agreements, our Company agrees to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our Company.

**Compensation of Directors and Executive Officers**

For the fiscal year ended December 31, 2021, our Company and our PRC subsidiaries paid an aggregate of RMB144,205.68 ($22,366.6) as compensation to our executive officers. Our Company and our PRC subsidiaries have not set aside or accrued any amount to provide pension, retirement, or other similar benefits to our directors and executive officers. Our PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance, and other statutory benefits.

**Insider Participation Concerning Executive Compensation**

Our board of directors, which comprises of five directors, has been making all determinations regarding executive officer compensation from the inception of the Company. When established, our Compensation Committee will determine regarding executive officer compensation.

**Committees of the Board of Directors**

Our Company will establish three committees under the board of directors prior to the declaration of effectiveness of the registration statement of which this prospectus forms a part: an audit committee, a compensation committee, and a nominating and corporate governance committee. Our Company will adopt a charter for each of the three committees. Each committee's members and functions are described below.

*Audit Committee*. Our audit committee will consist of Yuan Yuan, Shuo Chen, and Jindan Lin. Yuan Yuan will be the chairperson of our audit committee. We have determined that Yuan Yuan, Shuo Chen, and Jindan Lin will satisfy the "independence" requirements of the Nasdaq listing rules under and Rule 10A-3 under the Securities Exchange Act. Our board also has determined that Yuan Yuan qualifies as an audit committee financial expert within the meaning of the SEC rules or possesses financial sophistication within the meaning of the Nasdaq listing rules. The audit committee will oversee our accounting and financial reporting processes and the audits of the financial statements of our Company. The audit committee will be responsible for, among other things:

● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;

● reviewing with the independent auditors any audit problems or difficulties and management's response;

● discussing the annual audited financial statements with management and the independent auditors;

● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;

● reviewing and approving all proposed related party transactions;

● meeting separately and periodically with management and the independent auditors; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

*Compensation Committee.* Our compensation committee will consist of Yuan Yuan, Shuo Chen, and Jindan Lin. Jindan Lin will be the chairperson of our compensation committee. We have determined that Yuan Yuan, Shuo Chen, and Jindan Lin will satisfy the "independence" requirements of the Nasdaq listing rules and Rule 10C-1 under the Securities Exchange Act. The compensation committee will assist the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not be present at any committee meeting during which his compensation is deliberated. The compensation committee will be responsible for, among other things:

● reviewing and approving the total compensation package for our most senior executive officers;

● approving and overseeing the total compensation package for our executives other than the most senior executive officers;

● reviewing and recommending to the board with respect to the compensation of our directors;

● reviewing periodically and approving any long-term incentive compensation or equity plans;

● selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person's independence from management; and

● reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans.

*Nominating and Corporate Governance Committee.* Our nominating and corporate governance committee will consist of Yuan Yuan, Shuo Chen, and Jindan Lin. Shuo Chen will be the chairperson of our nominating and corporate governance committee. Yuan Yuan, Shuo Chen, and Jindan Lin satisfy the "independence" requirements of the Nasdaq listing rules. The nominating and corporate governance committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee will be responsible for, among other things:

● identifying and recommending nominees for election or re-election to our board of directors or for appointment to fill any vacancy;

● reviewing annually with our board of directors its current composition in light of the characteristics of independence, age, skills, experience and availability of service to us;

● identifying and recommending to our board the directors to serve as members of committees;

● advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

**Code of Business Conduct and Ethics**

Our board of directors will adopt a code of business conduct and ethics that will be applicable to all of our directors, officers and employees. We will make our code of business conduct and ethics publicly available on our website prior to the initial closing of this offering.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our Ordinary Shares as of the date of this prospectus, and as adjusted to reflect the sale of the Ordinary Shares offered in this offering for:

● each of our directors and executive officers who beneficially own our Ordinary Shares (individually and as a group); and

● each person known to our Company to own beneficially more than 5% of our Ordinary Shares.

Beneficial ownership includes voting or investment power with respect to the securities. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all Ordinary Shares shown as beneficially owned by them. Percentage of beneficial ownership of each listed person prior to the completion of this offering is based on 12,000,000 Ordinary Shares outstanding as of the date of this prospectus immediately prior to the effectiveness of the registration statement of which this prospectus is a part. Percentage of beneficial ownership of each listed person after this offering includes [\*] Ordinary Shares outstanding immediately after the completion of this offering, excluding [\*] Ordinary Shares underlying the Underwriters' Warrants.

Information with respect to beneficial ownership has been furnished by each director, officer, or beneficial owner of 5% or more of our Ordinary Shares. Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of Ordinary Shares beneficially owned by a person listed below and the percentage ownership of such person, Ordinary Shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person. Except as otherwise indicated in the footnotes to this table, or as required by applicable community property laws, all persons listed have sole voting and investment power for all Ordinary Shares shown as beneficially owned by them. As of the date of the prospectus, our Company has eight shareholders of record, none of whom are located in the United States. Our Company will be required to have at least 300 unrestricted round lot shareholders at closing in order to satisfy the Nasdaq listing rules.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Ordinary Shares <br> Beneficially <br> Owned Prior to the <br> Completion of this<br> Offering** | **Ordinary Shares <br> Beneficially <br> Owned Prior to the <br> Completion of this<br> Offering** | **Ordinary Shares <br> Beneficially Owned <br> After<br> this Offering** | **Ordinary Shares <br> Beneficially Owned <br> After<br> this Offering** |
|  | **Number** | **Percent** | **Number** | **Percent** |
| **Directors and Executive Officers <sup>(1)</sup>:** |  |  |  |  |
| Guanzhao Lin<sup>(2)</sup> | 6240000 | 52% |  |  |
| Jinshui Ying |  |  |  |  |
| Jifeng Huang<sup>(3)</sup> | 2160000 | 18% |  |  |
| Jindan Lin |  |  |  |  |
| Shuo Chen |  |  |  |  |
| Yuan Yuan |  |  |  |  |
| **All directors and executive officers as a group (six individuals):** | 8400000 | 70% |  |  |
| **5% Shareholders<sup>(4)</sup>:** |  |  |  |  |
| ST Investment Group Limited<sup>(2)</sup> | 6240000 | 52% |  |  |
| LinFeng Investment Limited<sup>(3)</sup> | 2160000 | 18% |  |  |
| LIUJING Investment Limited<sup>(5)</sup> | 780000 | 6.5% |  |  |
| SXD Investment Consulting Limited<sup>(6)</sup> | 720000 | 6% |  |  |
| ZTCHEN Investment Limited<sup>(7)</sup> | 660000 | 5.5% |  |  |
| CMX Investment Group Limited<sup>(8)</sup> | 600000 | 5% |  |  |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Unless otherwise indicated, the business
 address of each of the individuals is No.1 Pengda Road, Hunan Town, Changle District, Fuzhou
 City, Fujian Province, China 350212.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents 6,240,000 Ordinary Shares held by ST Investment Group Limited, a BVI company, which
 is 100% owned by Guanzhao Lin.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents 2,160,000 Ordinary Shares held by LinFeng Investment Limited, a BVI company, which
 is 100% owned by Jifeng Huang.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Unless otherwise indicated, the registered
 address of each of the 5% shareholders is 2/F, Palm Grove House, P.O. Box 3340 Road
 Town, Tortola, British Virgin Islands.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Represents 780,000 Ordinary Shares held by LIUJING Investment Limited, a BVI company, which is
 100% owned by Jing Liu.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Represents 720,000 Ordinary Shares held by SXD Investment Consulting Limited, a BVI company,
 which is 100% owned by Xuedong Sun.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Represents 660,000 Ordinary Shares held by ZTCHEN Investment Limited, a BVI company, which is
 100% owned by Zhangtao Cheng, a Hong Kong resident.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Represents 600,000 Ordinary Shares held by CMX Investment Group Limited, a BVI company, which
 is 100% owned by Mingxin Chen.

On July 31, 2022, LinFeng, the owner of 100% equity interests in LinFeng Investment Limited, transferred all of such interests to Huang Jifeng, who became the owner of 100% equity interests in LinFeng Investment Limited, which owned 5% of the Ordinary Shares of the Company. On July 31, 2022, LinFeng Investment Limited purchased 3,250 Ordinary Shares of the Company from Chenji Investment Group Limited and 3,250 Ordinary Shares of the Company from Super Wise International Holdings Limited, thereby increasing LinFeng Investment Limited's ownership percentage of the Company from 5% to 18%. None of the Company's major shareholders will have any different or special voting rights with respect to their Ordinary Shares.

As of the date of this prospectus, none of our outstanding Ordinary Shares is held by record holders in the United States.

We are not aware of any arrangement that may, at a subsequent date, result in a change of control of the Company.

**RELATED PARTY TRANSACTIONS**

**Employment Agreements**

See "Management—Employment Agreements and Indemnification Agreements."

**Material Transactions with Related Parties**

The relationship and the nature of related party transactions are summarized as follow:

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to Us** |
| Guanzhao Lin | Chief Executive Officer, and Chairman of the Board of Directors |
| Fujian Blue-Touch Products Inc. | an enterprise in which interests in the voting power are owned by close members of Guanzhao Lin's family, consisting of (1) Guanlu Lin, who owns approximately 42.86% shares of Fujian Blue-Touch Products Inc., (2) Guanjia Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc., and (3) Guandian Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc. |

---

*Transactions with Guanzhao Lin*

The operating entity obtained several interest-free loans from Guanzhao Lin for daily operations in the amount of RMB34 million ($4,873,713) as of January 1, 2020. During the fiscal year ended December 31, 2020, the operating entity obtained an interest-free loan from Guanzhao Lin for daily operations in the amount of RMB3 million ($459,777). As of the fiscal year ended December 31, 2020, the total principal outstanding loan amount was RMB37 million (approximately $5.67 million). During the fiscal year ended December 31, 2021, the operating entity obtained another interest-free loan from Guanzhao Lin for daily operations in the amount of RMB11.012 million ($1,697,968). As of the fiscal year ended December 31, 2021, the operating entity converted all the amount due to Guanzhao Lin into contributed ownership.

During the six months ended June 30, 2021, the Company obtained interest-free loans from Guanzhao Lin to cover expenses related to this offering. As of the fiscal year ended December 31, 2021, the outstanding principal amount due to Guanzhao Lin was $49,976. During the six months ended June 30, 2022, the Company obtained interest-free loans from Guanzhao Lin to cover expenses related to this offering in the amount of RMB646,779 ($96,370) and as of June 30, 2022, the total outstanding principal loan amount is RMB970,915 ($144,667), after considering an exchange rate fluctuation of $(1,679).

On August 4, 2021, the operating entity entered into a credit agreement with Mercedes-Benz Automobile Finance Co., Ltd., pursuant to which the operating entity borrowed RMB205,660 ($32,257) at an annual interest rate of 7.99%. Mr. Guanzhao Lin is a guarantor for the loan. The maturity date of such loan is on August 10, 2026. As of the six months ended June 30, 2022 and the fiscal year ended December 31, 2021, the outstanding principal loan amount was RMB173,817.20 ($25,899) and RMB194,273.52 ($30,471), respectively. As of the date of this prospectus, the outstanding principal loan amount is RMB152,309.30 ($21,869).

*Transactions with Fujian Blue-Touch Products Inc.*

The operating entity's principal executive office and warehouse are leased from Fujian Blue-Touch Products Inc., under one lease agreement. Under such lease agreement, the combined monthly rent for the principal executive office and warehouse is RMB19,600 (approximately $3,040) and the lease term is from January 1, 2019 to December 31, 2025.

The operating entity's cosmetics production process testing and inspection facility is also leased from Fujian Blue-Touch Products Inc. Under the lease agreement, the lease term is from January 1, 2021 to December 31, 2025 and the monthly rent is RMB5,000 (($775.5). The lessor granted a waiver of eight months' rent and started collecting monthly rent from the operating entity on September 1, 2021. The rent was waived for a period when the facility was refurbished and the equipment was installed and we believe that such rent waiver is consistent with the real estate customary practice in China.

Under the lease agreement of the office and warehouse with Fujian Blue-Touch Products Inc., the operating entity paid a deposit in the amount of RMB39,200 ($5,619) for the leased premises to Fujian Blue-Touch Products Inc., after signing the agreement. As of the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, and 2020, the operating entity has amounts of 5,841, $6,008 and $6,148, respectively, due from Fujian Blue-Touch Products Inc., after considering the exchange rate fluctuation of $(307), $389 and $140, respectively.

**DESCRIPTION OF SHARE CAPITAL**

The following description of our share capital and provisions of our memorandum and articles of association, as amended from time to time, are summaries and do not purport to be complete. Reference is made to our amended and restated memorandum and articles of association, copies of which are filed as an exhibit to the registration statement of which this prospectus is a part (and which is referred to in this section as, respectively, the "memorandum" and the "articles").

Our Company was incorporated as an exempted company with limited liability under the Companies Act (Revised) of the Cayman Islands, or the "Cayman Companies Act," on September 27, 2021. A Cayman Islands exempted company:

● is a company that conducts its business mainly outside the Cayman Islands;

● is prohibited from trading in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the exempted company carried on outside the Cayman Islands (and for this purpose can effect and conclude contracts in the Cayman Islands and exercise in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands);

● does not have to hold an annual general meeting;

● does not have to make its register of members open to inspection by shareholders of that company;

● may obtain an undertaking against the imposition of any future taxation;

● may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● may register as a limited duration company; and

● may register as a segregated portfolio target company.

**Ordinary Shares**

All of our issued and outstanding Ordinary Shares are fully paid and non-assessable. Our Ordinary Shares are issued in registered form, and are issued when registered in our register of members. Unless the board of directors determine otherwise, each holder of our Ordinary Shares will not receive a certificate in respect of such Ordinary Shares. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their Ordinary Shares. Our Company may not issue shares or warrants to bearer.

As of the date of this prospectus, our authorized share capital is US$50,000 divided into 100,000,000 Ordinary Shares, par value US$0.0005 per share. As of the date of this prospectus, there are 12,000,000 Ordinary Shares issued and outstanding. Subject to the provisions of the Cayman Companies Act and our articles regarding redemption and purchase of the shares, the directors have general and unconditional authority to allot (with or without confirming rights of renunciation), grant options over or otherwise deal with any unissued shares to such persons, at such times and on such terms and conditions as they may decide. The directors may deal with unissued shares either at a premium or at par, or with or without preferred, deferred or other special rights or restrictions, whether in regard to dividend, voting, return of capital or otherwise. No share may be issued at a discount except in accordance with the provisions of the Cayman Companies Act. The directors may refuse to accept any application for shares, and may accept any application in whole or in part, for any reason or for no reason.

At the completion of this offering, there will be [●] Ordinary Shares issued and outstanding held by at least 300 unrestricted round lot shareholders and beneficial owners which is the minimum requirement by the Nasdaq Capital Market. Shares sold in this offering will be delivered against payment from the Underwriter upon the closing of the offering in New York, New York, on or about [●], 2022.

**Listing**

Our Company will apply to list the Ordinary Shares on the Nasdaq Capital Market under the symbol "BBCH." At this time, Nasdaq has not yet approved our application to list our Ordinary Shares. The closing of this offering is conditioned upon Nasdaq's final approval of our listing application, and there is no assurance that our Ordinary Shares will be approved for listing on Nasdaq.

**Transfer Agent and Registrar**

The transfer agent and registrar for the Ordinary Shares is [●], [●].

**Dividends**

Subject to the provisions of the Cayman Companies Act and any rights attaching to any class or classes of shares under and in accordance with the articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the directors may declare
 dividends or distributions out of our funds which are lawfully available for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) our shareholders may, by
 ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors.

Subject to the requirements of the Cayman Companies Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

Unless provided by the rights attached to a share, no dividend shall bear interest.

**Voting Rights**

Subject to any rights or restrictions as to voting attached to any shares, unless any share carries special voting rights, on a show of hands every shareholder who is present in person and every person representing a shareholder by proxy shall have one vote per Ordinary Share. On a poll, every shareholder who is present in person and every person representing a shareholder by proxy shall have one vote for each share of which he or the person represented by proxy is the holder. In addition, all shareholders holding shares of a particular class are entitled to vote at a meeting of the holders of that class of shares. Votes may be given either personally or by proxy.

**Variation of Rights of Shares**

Whenever our capital is divided into different classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class.

Unless the terms on which a class of shares was issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by the creation or issue of further shares ranking pari passu with the existing shares of that class.

**Alteration of Share Capital**

Subject to the Cayman Companies Act, our shareholders may, by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase our share capital
 by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in
 that ordinary resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide
 all or any of our share capital into shares of larger amount than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of our
 paid up shares into stock, and reconvert that stock into paid up shares of any denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) sub-divide our shares or
 any of them into shares of an amount smaller than that fixed, so, however, that in the sub-division, the proportion between the amount
 paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the share from which the reduced
 share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel shares which, at
 the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount
 of our share capital by the amount of the shares so cancelled or, in the case of shares without nominal par value, diminish the number
 of shares into which our capital is divided.

Subject to the Cayman Companies Act and to any rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution, reduce its share capital in any way.

**Calls on Shares and Forfeiture**

Subject to the terms of allotment, the directors may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject to receiving at least 14 clear days' notice specifying when and where payment is to be made), pay to our Company the amount called on his shares. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due and payable until it is paid at the rate fixed by the terms of allotment of the share or in the notice of the call or if no rate is fixed, at the rate of ten percent per annum. The directors may waive payment of the interest wholly or in part.

Our Company has a first and paramount lien on all shares (whether fully paid up or not) registered in the name of a shareholder (whether solely or jointly with others). The lien is for all monies payable to our Company by the shareholder or the shareholder's estate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either alone or jointly with any other person, whether
 or not that other person is a shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether or not those monies are presently payable.

At any time, the directors may declare any share to be wholly or partly exempt from the lien on shares provisions of the articles.

Our Company may sell, in such manner as the directors may determine, any share on which the sum in respect of which the lien exists is presently payable, if due notice that such sum is payable has been given (as prescribed by the articles) and, within 14 clear days of the date on which the notice is deemed to be given under the articles, such notice has not been complied with.

**Unclaimed Dividend**

A dividend that remains unclaimed for a period of six years after it became due for payment shall be forfeited to, and shall cease to remain owing by, the company.

**Forfeiture or Surrender of Shares**

If a shareholder fails to pay any capital call, the directors may give to such shareholder not less than 14 clear days' notice requiring payment and specifying the amount unpaid including any interest which may have accrued, any expenses which have been incurred by our Company due to that person's default and the place where payment is to be made. The notice shall also contain a warning that if the notice is not complied with, the shares in respect of which the call is made will be liable to be forfeited.

If such notice is not complied with, the directors may, before the payment required by the notice has been received, resolve that any share the subject of that notice be forfeited (which forfeiture shall include all dividends or other monies payable in respect of the forfeited share and not paid before such forfeiture).

A forfeited share may be sold, re-allotted or otherwise disposed of on such terms and in such manner as the directors determine and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the directors think fit.

A person whose shares have been forfeited shall cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeiture, remain liable to pay to our Company all monies which at the date of forfeiture were payable by him to our Company in respect of the shares, together with all expenses and interest from the date of forfeiture or surrender until payment, but his liability shall cease if and when our Company receives payment in full of the unpaid amount.

A declaration, whether statutory or under oath, made by a director or the secretary shall be conclusive evidence that the person making the declaration is our director or secretary and that the particular shares have been forfeited or surrendered on a particular date.

Subject to the execution of an instrument of transfer, if necessary, the declaration shall constitute good title to the shares.

**Share Premium Account**

The directors shall establish a share premium account and shall carry the credit of such account from time to time to a sum equal to the amount or value of the premium paid on the issue of any share or capital contributed or such other amounts required by the Cayman Companies Act.

**Redemption and Purchase of Own Shares**

Subject to the Cayman Companies Act and any rights for the time being conferred on the shareholders holding a particular class of shares, our Company may by action of our directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue shares that are to
 be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner
 our directors determine before the issue of those shares;

(b) with the consent by special
 resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide
 that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors
 determine at the time of such variation; and

(c) purchase all or any of
 our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time
 of such purchase.

Our Company may make a payment in respect of the redemption or purchase of its own shares in any manner authorized by the Cayman Companies Act, including out of any combination of capital, our profits and the proceeds of a fresh issue of shares.

When making a payment in respect of the redemption or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized by the terms of the allotment of those shares or by the terms applying to those shares, or otherwise by agreement with the shareholder holding those shares.

**Transfer of Shares**

Subject to any applicable requirements set forth in the Articles and provided that a transfer of Ordinary Shares complies with applicable rules of the Nasdaq Capital Market, a shareholder may transfer Ordinary Shares to another person by completing an instrument of transfer in a common form or in a form prescribed by Nasdaq or in any other form approved by the directors, executed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the Ordinary Shares are fully paid, by or on
 behalf of that shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the Ordinary Shares are partly paid, by or on
 behalf of that shareholder and the transferee.

The transferor shall be deemed to remain the holder of an Ordinary Share until the name of the transferee is entered into our register of members.

Where the Ordinary Shares in question are not listed on or subject to the rules of the Nasdaq Capital Market, our board of directors may, in its absolute discretion, decline to register any transfer of any Ordinary Share that has not been fully paid up or is subject to a company lien. Our board of directors may also decline to register any transfer of such Ordinary Share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the instrument of transfer
 is lodged with us, accompanied by the certificate for the Ordinary Shares to which it relates and such other evidence as our board
 of directors may reasonably require to show the right of the transferor to make the transfer;

(b) the instrument of transfer
 is in respect of only one class of Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the instrument of transfer
 is properly stamped, if required;

(d) the Ordinary Share transferred
 is fully paid and free of any lien in favor of us;

(e) any fee related to the
 transfer has been paid to us; and

(f) the transfer is not more
 than four joint holders.

If our directors refuse to register a transfer, they are required, within three months after the date on which the instrument of transfer was lodged, to send to each of the transferor and the transferee notice of such refusal.

The registration of transfers may, on 14 days' notice being given by advertisement in such one or more newspapers or by electronic means, be suspended and our register of members closed at such times and for such periods as our board of directors may, in their absolute discretion, from time to time determine. The registration of transfers, however, may not be suspended, and the register may not be closed, for more than 30 days in any year.

**Inspection of Books and Records**

Holders of our Ordinary Shares will have no general right under the Cayman Companies Act to inspect or obtain copies of our register of members or our corporate records (other than the memorandum and articles of association and any special resolutions passed by such companies, and the registers of mortgages and charges of such companies).

**General Meetings**

As a Cayman Islands exempted company, our Company is not obligated by the Cayman Companies Act to call shareholders' annual general meetings; accordingly, our Company may, but shall not be obliged to, in each year hold a general meeting as an annual general meeting. Any annual general meeting held shall be held at such time and place as may be determined by our board of directors. All general meetings other than annual general meetings shall be called extraordinary general meetings.

The directors may convene general meetings whenever they think fit. General meetings shall also be convened on the written requisition of one or more of the shareholders entitled to attend and vote at our general meetings who (together) hold not less than ten percent of the rights to vote at such general meeting in accordance with the notice provisions in the articles, specifying the purpose of the meeting and signed by each of the shareholders making the requisition. If the directors do not convene such meeting within 21 clear days' from the date of receipt of the written requisition, those shareholders who requested the meeting or any of them may convene the general meeting themselves within three months after the end of such period of 21 clear days in which case reasonable expenses incurred by them as a result of the directors failing to convene a meeting shall be reimbursed by us.

At least 14 clear days' notice of an extraordinary general meeting and 21 clear days' notice of an annual general meeting shall be given to shareholders entitled to attend and vote at such meeting. The notice shall specify the place, the day and the hour of the meeting and the general nature of that business. In addition, if a resolution is proposed as a special resolution, the text of that resolution shall be given to all shareholders. Notice of every general meeting shall also be given to the directors and our auditors.

Subject to the Cayman Companies Act and with the consent of the shareholders who, individually or collectively, hold at least 90 percent of the voting rights of all those who have a right to vote at a general meeting, a general meeting may be convened on shorter notice.

A quorum shall consist of the presence (whether in person or represented by proxy) of one or more shareholders holding shares that represent not less than one-third of the outstanding shares carrying the right to vote at such general meeting.

If, within 15 minutes from the time appointed for the general meeting, or at any time during the meeting, a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be cancelled. In any other case it shall stand adjourned to the same time and place seven days or to such other time or place as is determined by the directors.

The chairman may, with the consent of a meeting at which a quorum is present, adjourn the meeting. When a meeting is adjourned for more than seven clear days, notice of the adjourned meeting shall be given in accordance with the articles.

At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands, unless a poll is (before, or on, the declaration of the result of the show of hands) demanded by the chairman of the meeting or by at least two shareholders having the right to vote on the resolutions or one or more shareholders present who together hold not less than ten percent of the voting rights of all those who are entitled to vote on the resolution. Unless a poll is so demanded, a declaration by the chairman as to the result of a resolution and an entry to that effect in the minutes of the meeting, shall be conclusive evidence of the outcome of a show of hands, without proof of the number or proportion of the votes recorded in favor of, or against, that resolution.

If a poll is duly demanded it shall be taken in such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.

In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall not be entitled to a second or casting vote.

**Directors**

Our Company may by ordinary resolution, from time to time, fix the maximum and minimum number of directors to be appointed. Under the articles, our Company is required to have a minimum of one director and the maximum number of Directors shall be unlimited.

A director may be appointed by ordinary resolution or by the directors. Any appointment may be to fill a vacancy or as an additional director.

Unless the remuneration of the directors is determined by the shareholders by ordinary resolution, the directors shall be entitled to such remuneration as the directors may determine.

The shareholding qualification for directors may be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required.

A director may be removed by ordinary resolution.

A director may at any time resign from office by giving our Company notice in writing. Unless the notice specifies a different date, the director shall be deemed to have resigned on the date that the notice is delivered to us.

Subject to the provisions of the articles, the office of a director may be terminated forthwith if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he is prohibited by the law of the Cayman Islands from
 acting as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he is made bankrupt or makes an arrangement or composition
 with his creditors generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he resigns his office by notice to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he only held office as a director for a fixed term
 and such term expires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the opinion of a registered
 medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) he is given notice by the
 majority of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages
 for breach of any agreement relating to the provision of the services of such director);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) he is made subject to any law relating to mental health
 or incompetence, whether by court order or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) without the consent of the other directors, he is absent
 from meetings of directors for continuous period of six months.

Each of the compensation committee and the nominating and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules. The audit committee shall consist of at least three directors, all of whom shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules and will meet the criteria for independence set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.

**Powers and Duties of Directors**

Subject to the provisions of the Cayman Companies Act and our memorandum and articles of association, our business shall be managed by the directors, who may exercise all our powers. No prior act of the directors shall be invalidated by any subsequent alteration of our memorandum or articles of association. To the extent allowed by the Cayman Companies Act, however, shareholders may by special resolution validate any prior or future act of the directors which would otherwise be in breach of their duties.

The directors may delegate any of their powers to any committee consisting of one or more persons who need not be shareholders and may include non-directors so long as the majority of those persons are directors; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the directors. Upon the initial closing of this offering, our board of directors will have established an audit committee, compensation committee, and nomination and corporate governance committee.

The board of directors may establish any local or divisional board of directors or agency and delegate to it its powers and authorities (with power to sub-delegate) for managing any of our affairs whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional board of directors, or to be managers or agents, and may fix their remuneration.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, either generally or in respect of any specific matter, to be our agent with or without authority for that person to delegate all or any of that person's powers.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, whether nominated directly or indirectly by the directors, to be our attorney or our authorized signatory and for such period and subject to such conditions as they may think fit. The powers, authorities and discretions, however, must not exceed those vested in, or exercisable, by the directors under the articles.

The board of directors may remove any person so appointed and may revoke or vary the delegation.

The directors may exercise all of our powers to borrow money and to mortgage or charge its undertaking, property and assets both present and future and uncalled capital or any part thereof, to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of ours or our parent undertaking (if any) or any subsidiary undertaking of us or of any third party.

A director shall not, as a director, vote in respect of any contract, transaction, arrangement or proposal in which he has an interest which (together with any interest of any person connected with him) is a material interest (otherwise than by virtue of his interests, direct or indirect, in shares or debentures or other securities of, or otherwise in or through, us) and if he shall do so his vote shall not be counted, nor in relation thereto shall he be counted in the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions shall apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the giving of any security,
 guarantee or indemnity in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) money lent or obligations
 incurred by him or by any other person for our benefit or any of our subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a debt or obligation of
 ours or any of our subsidiaries for which the director himself has assumed responsibility in whole or in part and whether alone or
 jointly with others under a guarantee or indemnity or by the giving of security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where our Company or any
 of our subsidiaries is offering securities in which offer the director is or may be entitled to participate as a holder of securities
 or in the underwriting or sub-underwriting of which the director is to or may participate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any contract, transaction,
 arrangement or proposal affecting any other body corporate in which he is interested, directly or indirectly and whether as an officer,
 shareholder, creditor or otherwise howsoever, provided that he (together with persons connected with him) does not to his knowledge
 hold an interest representing one percent or more of any class of the equity share capital of such body corporate (or of any third
 body corporate through which his interest is derived) or of the voting rights available to shareholders of the relevant body corporate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any act or thing done or
 to be done in respect of any arrangement for the benefit of the employees of us or any of our subsidiaries under which he is not
 accorded as a director any privilege or advantage not generally accorded to the employees to whom such arrangement relates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any matter connected with
 the purchase or maintenance for any director of insurance against any liability or (to the extent permitted by the Cayman Companies
 Act) indemnities in favor of directors, the funding of expenditure by one or more directors in defending proceedings against him
 or them or the doing of anything to enable such director or directors to avoid incurring such expenditure.

A director may, as a director, vote (and be counted in the quorum) in respect of any contract, transaction, arrangement or proposal in which he has an interest which is not a material interest or as described above.

**Capitalization of Profits**

The directors may resolve to capitalize:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any part of our profits not required for paying any
 preferential dividend (whether or not those profits are available for distribution); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any sum standing to the credit of our share premium
 account or capital redemption reserve, if any.

The amount resolved to be capitalized must be appropriated to the shareholders who would have been entitled to it had it been distributed by way of dividend and in the same proportions.

**Liquidation Rights**

If our Company is wound up, the shareholders may, subject to the articles and any other sanction required by the Cayman Companies Act, pass a special resolution allowing the liquidator to do either or both of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to divide in specie among
 the shareholders the whole or any part of our assets and, for that purpose, to value any assets and to determine how the division
 shall be carried out as between the shareholders or different classes of shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to vest the whole or any
 part of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.

The directors have the authority to present a petition for our winding up to the Grand Court of the Cayman Islands on our behalf without the sanction of a resolution passed at a general meeting.

**Register of Members**

Under the Cayman Companies Act, our Company must keep a register of members and there should be entered therein:

● the names and addresses of our shareholders, and, a statement of the shares held by each shareholder, which: (i) distinguish each share by its number (so long as the share has a number); (ii) confirms the amount paid, or agreed to be considered as paid, on the shares of each shareholder; (iii) confirms the number and category of shares held by each member, and (iv) confirms whether each relevant category of shares held by a member carries voting rights under the articles of association of the Company, and if so, whether such voting rights are conditional;

● the date on which the name of any person was entered on the register as a shareholder; and

● the date on which any person ceased to be a shareholder.

Under the Cayman Companies Act, the register of members of our Company is prima facie evidence of the matters set out therein (that is, the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a shareholder registered in the register of members is deemed as a matter of the Cayman Companies Act to have legal title to the shares as set against its name in the register of members. Upon the completion of this offering, the register of members will be immediately updated to record and give effect to the issuance of shares by our Company to the custodian or its nominee. Once our register of members has been updated, the shareholders recorded in the register of members will be deemed to have legal title to the shares set against their name.

If the name of any person is incorrectly entered in or omitted from our register of members, or if there is any default or unnecessary delay in entering on the register the fact of any person having ceased to be a shareholder of our Company, the person or shareholder aggrieved (or any shareholder of our Company or our Company itself) may apply to the Grand Court of the Cayman Islands for an order that the register be rectified, and the Court may either refuse such application or it may, if satisfied of the justice of the case, make an order for the rectification of the register.

**Differences in Corporate Law**

The Cayman Companies Act is derived, to a large extent, from the older Companies Acts of England and Wales but does not follow recent United Kingdom statutory enactments, and accordingly there are significant differences between the Cayman Companies Act and the current Companies Act of the UK. In addition, the Cayman Companies Act differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Cayman Companies Act applicable to our Company and the comparable laws applicable to companies incorporated in the State of Delaware in the United States.

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| *Title of Organizational Documents* | Certificate of Incorporation and Bylaws | Certificate of Incorporation and Memorandum and Articles of Association |
| *Duties of Directors* | Under Delaware law, the business and affairs of a corporation are managed by or under the direction of its board of directors. In exercising their powers, directors are charged with a fiduciary duty of care to protect the interests of the corporation and a fiduciary duty of loyalty to act in the best interests of its shareholders. The duty of care requires that directors act in an informed and deliberative manner and inform themselves, prior to making a business decision, of all material information reasonably available to them. The duty of care also requires that directors exercise care in overseeing and investigating the conduct of the corporation's employees. The duty of loyalty may be summarized as the duty to act in good faith, not out of self-interest, and in a manner which the director reasonably believes to be in the best interests of the shareholders. | As a matter of Cayman Islands law, a director owes three types of duties to the company: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Cayman Companies Act imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified, however the courts of the Cayman Islands have held that a director owes the following fiduciary duties (a) a duty to act in what the director bona fide considers to be in the best interests of the company, (b) a duty to exercise their powers for the purposes they were conferred, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill, care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher standard than a director without those skills. In fulfilling their duty of care to us, our directors must ensure compliance with our amended articles of association, as amended and restated from time to time. We have the right to seek damages where certain duties owed by any of our directors are breached.' |

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| *Limitations on Personal Liability of Directors* | Subject to the limitations described below, a certificate of incorporation may provide for the elimination or limitation of the personal liability of a director to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director. Such provision cannot limit liability for breach of loyalty, bad faith, intentional misconduct, unlawful payment of dividends or unlawful share purchase or redemption. In addition, the certificate of incorporation cannot limit liability for any act or omission occurring prior to the date when such provision becomes effective. | The Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of Officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. |
| *Indemnification of Directors, Officers, Agents, and Others* | A corporation has the power to indemnify any director, officer, employee, or agent of corporation who was, is, or is threatened to be made a party who acted in good faith and in a manner he believed to be in the best interests of the corporation, and if with respect to a criminal proceeding, had no reasonable cause to believe his conduct would be unlawful, against amounts actually and reasonably incurred. | Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own fraud or dishonesty.<br>Our amended and restated articles of association provide to the extent permitted by law, we shall indemnify each existing or former secretary, director (including alternate director), and any of our other officers (including an investment adviser or an administrator or liquidator) and their personal representatives against: (a) all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by the existing or former director (including alternate director), secretary or officer in or about the conduct of our business or affairs or in the execution or discharge of the existing or former director (including alternate director), secretary's or officer's duties, powers, authorities or discretions; and (b) without limitation to paragraph (a) above, all costs, expenses, losses or liabilities incurred by the existing or former director (including alternate director), secretary or officer in defending (whether successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed) concerning us or our affairs in any court or tribunal, whether in the Cayman Islands or elsewhere.<br>|

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|  |  | No such existing or former director (including alternate director), secretary or officer, however, shall be indemnified in respect of any matter arising out of his own dishonesty. |
|  |  | To the extent permitted by law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing or former director (including alternate director), secretary or any of our officers in respect of any matter identified in above on condition that the director (including alternate director), secretary or officer must repay the amount paid by us to the extent that it is ultimately found not liable to indemnify the director (including alternate director), the secretary or that officer for those legal costs. |
| *Interested Directors* | Under Delaware law, a transaction in which a director who has an interest in such transaction would not be voidable if (i) the material facts as to such interested director's relationship or interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum, (ii) such material facts are disclosed or are known to the shareholders entitled to vote on such transaction and the transaction is specifically approved in good faith by vote of the shareholders, or (iii) the transaction is fair as to the corporation as of the time it is authorized, approved or ratified. Under Delaware law, a director could be held liable for any transaction in which such director derived an improper personal benefit. | Interested director transactions are governed by the terms of a company's memorandum and articles of association. |

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| *Voting Requirements* | The certificate of incorporation may include a provision requiring supermajority approval by the directors or shareholders for any corporate action.<br>In addition, under Delaware law, certain business combinations involving interested shareholders require approval by a supermajority of the non-interested shareholders. | For the protection of shareholders, certain matters must be approved by special resolution of the shareholders as a matter of Cayman Islands law, including alteration of the memorandum or articles of association, appointment of inspectors to examine company affairs, reduction of share capital (subject, in relevant circumstances, to court approval), change of name, authorization of a plan of merger or transfer by way of continuation to another jurisdiction or consolidation or voluntary winding up of the company.<br>The Cayman Companies Act requires that a special resolution be passed by a majority of at least two-thirds or such higher percentage as set forth in the memorandum and articles of association, of shareholders being entitled to vote and do vote in person or by proxy at a general meeting, or by unanimous written consent of shareholders entitled to vote at a general meeting.<br>The Cayman Companies Act defines "special resolutions" only. A company's memorandum and articles of association can therefore tailor the definition of "ordinary resolutions" as a whole, or with respect to specific provisions. |

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| *Voting for Directors* | Under Delaware law, unless otherwise specified in the certificate of incorporation or bylaws of the corporation, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. | Director election is governed by the terms of the memorandum and articles association. |
| *Cumulative Voting* | No cumulative voting for the election of directors unless so provided in the certificate of incorporation. | There are no prohibitions in relation to cumulative voting under the Cayman Companies Act but our post-offering amended and restated articles of association do not provide for cumulative voting. |
| *Directors' Powers Regarding Bylaws* | The certificate of incorporation may grant the directors the power to adopt, amend or repeal bylaws. | The memorandum and articles of association may only be amended by a special resolution of the shareholders. |

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| *Nomination and Removal of Directors and Filling Vacancies on Board* | Shareholders may generally nominate directors if they comply with advance notice provisions and other procedural requirements in company bylaws. Holders of a majority of the shares may remove a director with or without cause, except in certain cases involving a classified board or if the company uses cumulative voting. Unless otherwise provided for in the certificate of incorporation, directorship vacancies are filled by a majority of the directors elected or then in office. | Nomination and removal of directors and filling of board vacancies are governed by the terms of the memorandum and articles of association. |

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| *Mergers and Similar Arrangements* | Under Delaware law, with certain exceptions, a merger, consolidation, exchange or sale of all or substantially all the assets of a corporation must be approved by the board of directors and a majority of the outstanding shares entitled to vote thereon. Under Delaware law, a shareholder of a corporation participating in certain major corporate transactions may, under certain circumstances, be entitled to appraisal rights pursuant to which such shareholder may receive cash in the amount of the fair value of the shares held by such shareholder (as determined by a court) in lieu of the consideration such shareholder would otherwise receive in the transaction.<br>Delaware law also provides that a parent corporation, by resolution of its board of directors, may merge with any subsidiary, of which it owns at least 90% of each class of capital stock without a vote by shareholders of such subsidiary. Upon any such merger, dissenting shareholders of the subsidiary would have appraisal rights. | The Cayman Companies Act provides for the merger or consolidation of two or more companies into a single entity. The legislation makes a distinction between a "consolidation" and a "merger". In a consolidation, a new entity is formed from the combination of each participating company, and the separate consolidating parties, as a consequence, cease to exist and are each stricken by the Registrar of Companies. In a merger, one company remains as the surviving entity, having in effect absorbed the other merging parties that are then stricken and cease to exist.<br>Two or more Cayman-registered companies may merge or consolidate. Cayman-registered companies may also merge or consolidate with foreign companies provided the laws of the foreign jurisdiction permit such merger or consolidation.<br>Under the Companies Act, a plan of merger or consolidation shall be authorized by each constituent company by way of (i) a special resolution of the shareholders of such constituent company; and (ii) such other authorization, if any, as may be specified in such constituent company's memorandum and articles of association.<br>A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose a subsidiary is a company of which at least ninety percent (90%) of the votes are owned by the parent company.<br>|

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The consent of each holder of a fixed or floating security interest of a constituent company is required unless this requirement is waived by a court in the Cayman Islands.<br>Except in certain limited circumstances, a dissenting shareholder of a Cayman constituent company is entitled to payment of the fair value of his or her shares upon dissenting from a merger or consolidation. The exercise of such dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, except for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.<br>In addition, there are statutory provisions that facilitate the reconstruction and amalgamation of companies, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent seventy-five percent (75%) in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:<br>· the statutory provisions as to the required majority vote have been met;<br>· the shareholders have been fairly represented at the meeting in question;<br>· the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and<br>· the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act or that would amount to a "fraud on the minority".<br>When a takeover offer is made and accepted by holders of not less than 90.0% of the shares affected within four (4) months, the offeror may, within a two (2) month period commencing on the expiration of such four (4) month period, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands, but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion. <br>

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|  |  | If an arrangement and reconstruction is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares. |
| *Shareholder Suits* | Class actions and derivative actions generally are available to shareholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In such actions, the court generally has discretion to permit the winning party to recover attorneys' fees incurred in connection with such action. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In principle, we will normally be the proper plaintiff and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, there are exceptions to the foregoing principle, including when:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a company acts or proposes to act illegally or ultra vires;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· those who control the company are perpetrating a "fraud on the minority". |

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| *Inspection of Corporate Records* | Under Delaware law, shareholders of a Delaware corporation have the right during normal business hours to inspect for any proper purpose, and to obtain copies of list(s) of shareholders and other books and records of the corporation and its subsidiaries, if any, to the extent the books and records of such subsidiaries are available to the corporation. | Shareholders of a Cayman Islands exempted company have no general right under Cayman Islands law to inspect or obtain copies of a list of shareholders or other corporate records (other than the memorandum and articles of association and any special resolutions passed by such companies, and the registers of mortgages and charges of such companies) of the company. However, these rights may be provided in the company's memorandum and articles of association. |

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| *Shareholder Proposals* | Unless provided in the corporation's certificate of incorporation or bylaws, Delaware law does not include a provision restricting the manner in which shareholders may bring business before a meeting. | The Companies Act does not provide shareholders any right to bring business before a meeting or requisition a general meeting. However, these rights may be provided in the company's memorandum and articles of association. |

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| *Approval of Corporate Matters by Written Consent* | Delaware law permits shareholders to take actions by written consent signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting of shareholders. | The Companies Act allows a special resolution to be passed in writing if signed by all the voting shareholders (if authorized by the memorandum and articles). |

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| *Calling of Special Shareholders Meetings* | Delaware law permits the board of directors or any person who is authorized under a corporation's certificate of incorporation or bylaws to call a special meeting of shareholders. | The Companies Act does not have provisions governing the proceedings of shareholders meetings which are usually provided in the memorandum and articles of association. |
| *Dissolution; Winding Up* | Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board of directors. | Under the Cayman Companies Act and our articles, the Company may be wound up by a special resolution of our shareholders, or if the winding up is initiated by our board of directors, by either a special resolution of our members or, if our company is unable to pay its debts as they fall due, by an ordinary resolution of our members. In addition, a company may be wound up by an order of the courts of the Cayman Islands. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so. |

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**Anti-money Laundering—Cayman Islands**

In order to comply with legislation or regulations aimed at the prevention of money laundering, we may be required to adopt and maintain anti-money laundering procedures, and may require subscribers to provide evidence to verify their identity and source of funds. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information as is necessary to verify the identity of a subscriber. In some cases the directors may be satisfied that no further information is required since an exemption applies under the Anti-Money Laundering Regulations (Revised) of the Cayman Islands, as amended and revised from time to time (the "Regulations"). Depending on the circumstances of each application, a detailed verification of identity might not be required where:

· the subscriber makes the payment for their investment from an account held in the subscriber's name at a recognized financial institution; or

· the subscriber is regulated by a recognized regulatory authority and is based or incorporated in, or formed under the law of, a recognized jurisdiction; or

· the application is made through an intermediary which is regulated by a recognized regulatory authority and is based in or incorporated in, or formed under the law of a recognized jurisdiction and an assurance is provided in relation to the procedures undertaken on the underlying investors.

For the purposes of these exceptions, recognition of a financial institution, regulatory authority, or jurisdiction will be determined in accordance with the Regulations by reference to those jurisdictions recognized by the Cayman Islands Monetary Authority as having equivalent anti-money laundering regulations.

In the event of delay or failure on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited.

We also reserve the right to refuse to make any redemption payment to a shareholder if our directors or officers suspect or are advised that the payment of redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure our compliance with any such laws or regulations in any applicable jurisdiction.

If any person resident in the Cayman Islands knows or suspects or has reason for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of their business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) a nominated officer (appointed in accordance with the Proceeds of Crime Act (Revised) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (Revised), if the disclosure relates to criminal conduct or money laundering or (ii) to a police constable or a nominated officer (pursuant to the Terrorism Act (Revised) of the Cayman Islands) or the Financial Reporting Authority, pursuant to the Terrorism Act (Revised), if the disclosure relates to involvement with terrorism or terrorist financing and terrorist property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

**Data Protection in the Cayman Islands – Privacy Notice**

This privacy notice explains the manner in which we collect, process, and maintain personal data about our investors pursuant to the Data Protection Act (Revised) of the Cayman Islands, as amended from time to time and any regulations, codes of practice, or orders promulgated pursuant thereto (the "DPA**"**).

We are committed to processing personal data in accordance with the DPA. In our use of personal data, we will be characterized under the DPA as a "data controller," whilst certain of our service providers, affiliates, and delegates may act as "data processors" under the DPA. These service providers may process personal information for their own lawful purposes in connection with services provided to us.

By virtue of your investment in our Company, we and certain of our service providers may collect, record, store, transfer, and otherwise process personal data by which individuals may be directly or indirectly identified.

Your personal data will be processed fairly and for lawful purposes, including (a) where the processing is necessary for us to perform a contract to which you are a party or for taking pre-contractual steps at your request, (b) where the processing is necessary for compliance with any legal, tax, or regulatory obligation to which we are subject, or (c) where the processing is for the purposes of legitimate interests pursued by us or by a service provider to whom the data are disclosed. As a data controller, we will only use your personal data for the purposes for which we collected it. If we need to use your personal data for an unrelated purpose, we will contact you.

We anticipate that we will share your personal data with our service providers for the purposes set out in this privacy notice. We may also share relevant personal data where it is lawful to do so and necessary to comply with our contractual obligations or your instructions or where it is necessary or desirable to do so in connection with any regulatory reporting obligations. In exceptional circumstances, we will share your personal data with regulatory, prosecuting, and other governmental agencies or departments, and parties to litigation (whether pending or threatened), in any country or territory including to any other person where we have a public or legal duty to do so (e.g. to assist with detecting and preventing fraud, tax evasion, and financial crime or compliance with a court order).

Your personal data shall not be held by our Company for longer than necessary with regard to the purposes of the data processing.

We will not sell your personal data. Any transfer of personal data outside of the Cayman Islands shall be in accordance with the requirements of the DPA. Where necessary, we will ensure that separate and appropriate legal agreements are put in place with the recipient of that data.

We will only transfer personal data in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction, or damage to the personal data.

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data on individuals connected to you for any reason in relation to your investment into our Company, this will be relevant for those individuals and you should inform such individuals of the content.

You have certain rights under the DPA, including (a) the right to be informed as to how we collect and use your personal data (and this privacy notice fulfils our obligation in this respect), (b) the right to obtain a copy of your personal data, (c) the right to require us to stop direct marketing, (d) the right to have inaccurate or incomplete personal data corrected, (e) the right to withdraw your consent and require us to stop processing or restrict the processing, or not begin the processing of your personal data, (f) the right to be notified of a data breach (unless the breach is unlikely to be prejudicial), (g) the right to obtain information as to any countries or territories outside the Cayman Islands to which we, whether directly or indirectly, transfer, intend to transfer, or wish to transfer your personal data, general measures we take to ensure the security of personal data, and any information available to us as to the source of your personal data, (h) the right to complain to the Office of the Ombudsman of the Cayman Islands, and (i) the right to require us to delete your personal data in some limited circumstances.

If you consider that your personal data has not been handled correctly, or you are not satisfied with our responses to any requests you have made regarding the use of your personal data, you have the right to complain to the Cayman Islands' Ombudsman. The Ombudsman can be contacted by calling +1 (345) 946-6283 or by email at info@ombudsman.ky.

**Legislation of the Cayman Islands**

The Cayman Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing concerns raised by the Council of the European Union as to offshore structures engaged in certain activities which attract profits without real economic activity. With effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act (Revised) (the "Substance Act") and issued Regulations and Guidance Notes came into force in the Cayman Islands introducing certain economic substance requirements for in-scope Cayman Islands entities which are engaged in certain "relevant activities," which in the case of exempted companies incorporated before January 1, 2019, applies in respect of financial years commencing July 1, 2019, onwards. A "relevant entity" includes an exempted company incorporated in the Cayman Islands; however, it does not include an entity that is tax resident outside the Cayman Islands. Accordingly, for so long as we are a tax resident outside the Cayman Islands, we are not required to satisfy the economic substance test. Although it is presently anticipated that the Substance Act will have little material impact on us and our operations, as the legislation is new and remains subject to further clarification and interpretation it is not currently possible to ascertain the precise impact of these legislative changes on our Company on and our operations.

**History of Share Capital**

Our Company was incorporated in the Cayman Islands as an exempted company with limited liability on September 27, 2021. Our Company has issued the following Ordinary Shares to certain founding shareholders.

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| **Purchaser** | **Date of Issuance** | **Number of Ordinary Shares** |
| ST Investment Group Limited | 9-27-2021 | 26000 |
| ChenJi Investment Group Limited | 9-27-2021 | 3250 |
| LIUJING Investment Limited | 9-27-2021 | 3250 |
| Super Wise International Holdings Limited | 9-27-2021 | 3250 |
| SXD Investment Consulting Limited | 9-27-2021 | 3000 |
| ZTCHEN Investment Limited | 9-27-2021 | 2750 |
| CMX Investment Group Limited | 9-27-2021 | 2500 |
| LinFeng Investment Limited | 9-27-2021 | 2500 |
| YWF Investment Limited | 9-27-2021 | 2000 |
| LJC International Investment Limited | 9-27-2021 | 1500 |

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Since incorporation, there have been changes in the ownership of our Ordinary Shares. See "Principal Shareholders." On September 6, 2022, our Company effected a 240-for-1 stock split, as a result of which the aggregated number of outstanding Ordinary Shares changed from 50,000 to 12,000,000. The number of outstanding Ordinary Shares in the table above does not reflect the effect of such stock split.

**SHARES ELIGIBLE FOR FUTURE SALE**

Before our initial public offering, there has not been a public market for our Ordinary Shares, and although we expect to make an application for the Ordinary Shares to be listed on the Nasdaq Capital Market, a regular trading market for our Ordinary Shares may not develop. Future sales of substantial amounts of shares of our Ordinary Shares in the public market after our initial public offering, or the possibility of these sales occurring, could cause the prevailing market price for our Ordinary Shares to fall or impair our ability to raise equity capital in the future. Upon completion of this offering, our Company will have outstanding Ordinary Shares held by public shareholders representing approximately [●]% of our Ordinary Shares. All of the Ordinary Shares sold in this offering will be freely transferable by persons other than our "affiliates" without restriction or further registration under the Securities Act.

**Lock-Up Agreements**

Each of our directors and executive officers has agreed, for a period of six months after the effective date of the registration statement of which this prospectus forms a part , subject to certain exceptions, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of any of our Ordinary Shares or securities convertible into or exercisable or exchangeable for our Ordinary Shares, without the prior written consent of the Underwriter.

We are not aware of any plans by any significant shareholders to dispose of significant numbers of our Ordinary Shares. However, one or more existing shareholders or owners of securities convertible or exchangeable into or exercisable for our Ordinary Shares may dispose of significant numbers of our Ordinary Shares in the future. We cannot predict what effect, if any, future sales of our Ordinary Shares, or the availability of Ordinary Shares for future sale, will have on the trading price of our Ordinary Shares from time to time. Sales of substantial amounts of our Ordinary Shares in the public market, or the perception that these sales could occur, could adversely affect the trading price of our Ordinary Shares.

**Rule 144**

All of our Ordinary Shares outstanding prior to the completion of this offering are "restricted securities" as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person who is not deemed to have been our affiliate at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for more than six months would be entitled to sell an unlimited number of those shares, subject only to the availability of current public information about us. A non-affiliate who has beneficially owned restricted securities for at least one year from the later of the date these shares were acquired from our Company or from our affiliate would be entitled to freely sell those shares.

A person who is deemed to be an affiliate of ours and who has beneficially owned "restricted securities" for at least six months would be entitled to sell, within any three-month period, a number of shares that is not more than the greater of:

● 1% of the number of Ordinary Shares then outstanding, in the form of Ordinary Shares or otherwise, which will equal approximately [●] shares immediately after this offering; or

● the average weekly trading volume of the Ordinary Shares on the Nasdaq Capital Market during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701**

In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants, or advisors who purchases our Ordinary Shares from our Company in connection with a compensatory stock plan or other written agreement executed prior to the completion of this offering is eligible to resell those Ordinary Shares in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144. However, the Rule 701 shares would remain subject to lock-up arrangements and would only become eligible for sale when the lock-up period expires.

**Regulation S**

Regulation S provides generally that sales made in offshore transactions are not subject to the registration or prospectus-delivery requirements of the Securities Act.

**MATERIAL INCOME TAX CONSIDERATION**

**<u>People's Republic of China Enterprise Taxation</u>**

The following brief description of Chinese enterprise income taxation is designed to highlight the enterprise-level taxation on our earnings, which will affect the amount of dividends, if any, we are ultimately able to pay to our shareholders. See "Dividend Policy."

According to the EIT Law, which was promulgated by the SCNPC on March 16, 2007, became effective on January 1, 2008, and was then amended on February 24, 2017 and December 29, 2018, and the Implementation Rules of the EIT Law, which were promulgated by the State Council on December 6, 2007, and became effective on January 1, 2008 and was amended on April 23, 2019, enterprises are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income tax on their income obtained in the PRC at a reduced rate of 10%.

We are a holding company incorporated in the Cayman Islands and we gain substantial income by way of dividends paid to us from our PRC subsidiaries. The EIT Law and its implementation rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor's jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption.

Under the EIT Law, an enterprise established outside of China with a "de facto management body" within China is considered a "resident enterprise," which means that it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the EIT Law define "de facto management body" as a managing body that actually, comprehensively manage and control the production and operation, staff, accounting, property and other aspects of an enterprise, the only official guidance for this definition currently available is set forth in SAT Circular 82, which provides guidance on the determination of the tax residence status of a PRC-controlled offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that has a PRC enterprise or enterprise group as its primary controlling shareholder. Although Yuan does not have a PRC enterprise or enterprise group as our primary controlling shareholder and is therefore not a PRC-controlled offshore incorporated enterprise within the meaning of SAT Circular 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth in SAT Circular 82 to evaluate the tax residence status of CN Energy and its subsidiaries organized outside of China.

According to SAT Notice 82, a Chinese-controlled offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a "de facto management body" in China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the places where senior management and senior management departments that are responsible for daily production, operation and management of the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing, lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate seal, the board of directors and files of the minutes of shareholders' meetings of the enterprise are located or preserved within the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside within the territory of China.

We believe that we do not meet some of the conditions outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of Yuan, including the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC "resident enterprise" by the PRC tax authorities. Accordingly, we believe that Yuan and its offshore subsidiaries should not be treated as a "resident enterprise" for PRC tax purposes if the criteria for "de facto management body" as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body" as applicable to our offshore entities, we will continue to monitor our tax status.

The implementation rules of the EIT Law provide that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how "domicile" may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore, if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced income and as a result become subject to PRC withholding tax at a rate of up to 10%. It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax treaty. It is also unclear, however, whether non-PRC shareholders of the Company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that the Company is treated as a PRC resident enterprise. There is no guidance from the PRC government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries may impact non-resident enterprises. See "Risk Factors—Risks Relating to Doing Business in China—Under the PRC Enterprise Income Tax Law, we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment."

Provided that Yuan is not deemed to be a PRC resident enterprise, holders of our Ordinary Shares who are not PRC residents will not be subject to PRC income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares. However, under SAT Bulletin 7, where a non-resident enterprise conducts an "indirect transfer" by transferring taxable assets, including, in particular, equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant tax authority such indirect transfer. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding, or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under SAT Bulletin 7, and we may be required to expend valuable resources to comply with SAT Bulletin 7, or to establish that we should not be taxed under this Bulletin. See "Risk Factors—Risks Relating to Doing Business in China—We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies."

**<u>Cayman Islands Taxation</u>**

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains, or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the Government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of our Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our Ordinary Shares, as the case may be, nor will gains derived from the disposal of our Ordinary Shares be subject to Cayman Islands income or corporate tax.

**<u>United States Federal Income Taxation</u>**

**WE URGE POTENTIAL PURCHASERS OF OUR ORDINARY SHARES TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX CONSEQUENCES OF PURCHASING, OWNING, AND DISPOSING OF OUR ORDINARY SHARES.**

The following does not address the tax consequences to any particular investor or to persons in special tax situations such as:

● banks;

● financial institutions;

● insurance companies;

● regulated investment companies;

● real estate investment trusts;

● broker-dealers;

● persons that elect to mark their securities to market;

● U.S. expatriates or former long-term residents of the U.S.;

● governments or agencies or instrumentalities thereof;

● tax-exempt entities;

● persons liable for alternative minimum tax;

● persons holding our Ordinary Shares as part of a straddle, hedging, conversion or integrated transaction;

● persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our Ordinary Shares);

● persons who acquired our Ordinary Shares pursuant to the exercise of any employee share option or otherwise as compensation;

● persons holding our Ordinary Shares through partnerships or other pass-through entities;

● beneficiaries of a Trust holding our Ordinary Shares; or

● persons holding our Ordinary Shares through a trust.

The discussion set forth below is addressed only to U.S. Holders that purchase Ordinary Shares in this offering. Prospective purchasers are urged to consult their own tax advisors about the application of the U.S. federal income tax rules to their particular circumstances as well as the state, local, foreign and other tax consequences to them of the purchase, ownership and disposition of our Ordinary Shares.

***Material Tax Consequences Applicable to U.S. Holders of Our Ordinary Shares***

The following sets forth the material U.S. federal income tax consequences related to the ownership and disposition of our Ordinary Shares. It is directed to U.S. Holders (as defined below) of our Ordinary Shares and is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This description does not deal with all possible tax consequences relating to ownership and disposition of our Ordinary Shares or U.S. tax laws, other than the U.S. federal income tax laws, such as the tax consequences under non-U.S. tax laws, state, local and other tax laws.

The following brief description applies only to U.S. Holders (defined below) that hold Ordinary Shares as capital assets and that have the U.S. dollar as their functional currency. This brief description is based on the federal income tax laws of the United States in effect as of the date of this prospectus and on U.S. Treasury regulations in effect or, in some cases, proposed, as of the date of this prospectus, as well as judicial and administrative interpretations thereof available on or before such date. All of the foregoing authorities are subject to change, which change could apply retroactively and could affect the tax consequences described below.

The brief description below of the U.S. federal income tax consequences to "U.S. Holders" will apply to you if you are a beneficial owner of Ordinary Shares and you are, for U.S. federal income tax purposes,

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;

● an estate whose income is subject to U.S. federal income taxation regardless of its source; or

● a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership (or other entities treated as a partnership for United States federal income tax purposes) is a beneficial owner of our Ordinary Shares, the tax treatment of a partner in the partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our Ordinary Shares are urged to consult their tax advisors regarding an investment in our Ordinary Shares.

***Taxation of Dividends and Other Distributions on our Ordinary Shares***

Subject to the passive foreign investment company rules discussed below, the gross amount of distributions made by us to you with respect to the Ordinary Shares (including the amount of any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations.

With respect to non-corporate U.S. Holders, including individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that (1) the Ordinary Shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a PFIC (defined below) for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is not an income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the Ordinary Shares are readily tradable on an established securities market in the United States. Under U.S. Internal Revenue Service authority, Ordinary Shares are considered for purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on certain exchanges, which presently include the NYSE and the Nasdaq Stock Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary Shares, including the effects of any change in law after the date of this prospectus.

Dividends will constitute foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed by us with respect to our Ordinary Shares will constitute "passive category income" but could, in the case of certain U.S. Holders, constitute "general category income."

To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described above.

***Taxation of Dispositions of Ordinary Shares***

Subject to the passive foreign investment company rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to the difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the Ordinary Shares. The gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the Ordinary Shares for more than one year, you will generally be eligible for reduced tax rates. The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as United States source income or loss for foreign tax credit limitation purposes which will generally limit the availability of foreign tax credits.

***Passive Foreign Investment Company ("PFIC")***

A non-U.S. corporation is considered a PFIC, as defined in Section 1297(a) of the US Internal Revenue Code, for any taxable year if either:

● at least 75% of its gross income for such taxable year is passive income; or

● at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").

Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we raise in this offering will generally be considered to be held for the production of passive income and (2) the value of our assets must be determined based on the market value of our Ordinary Shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our assets (including the cash raised in this offering) on any particular quarterly testing date for purposes of the asset test.

Based on our operations and the composition of our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination each year as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable year or any future taxable year. Depending on the amount of cash we raise in this offering, together with any other assets held for the production of passive income, it is possible that, for our current taxable year or for any subsequent taxable year, more than 50% of our assets may be assets held for the production of passive income. We will make this determination following the end of any particular tax year. In addition, because the value of our assets for purposes of the asset test will generally be determined based on the market price of our Ordinary Shares and because cash is generally considered to be an asset held for the production of passive income, our PFIC status will depend in large part on the market price of our Ordinary Shares and the amount of cash we raise in this offering. Accordingly, fluctuations in the market price of the Ordinary Shares may cause us to become a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects and the composition of our income and assets will be affected by how, and how quickly, we spend the cash we raise in this offering. We are under no obligation to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets will depend upon material facts (including the market price of our Ordinary Shares from time to time and the amount of cash we raise in this offering) that may not be within our control. If we are a PFIC for any year during which you hold Ordinary Shares, we will continue to be treated as a PFIC for all succeeding years during which you hold Ordinary Shares.

If we cease to be a PFIC and you did not previously make a timely "mark-to-market" election as described below, you may avoid some of the adverse effects of the PFIC regime by making a "purging election" (as described below) with respect to the Ordinary Shares.

If we are a PFIC for your taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares, unless you make a "mark-to-market" election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over your holding period for the Ordinary Shares;

● the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and

● the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold the Ordinary Shares as capital assets.

A U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess, if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such Ordinary Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any, of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. Such ordinary loss, however, is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Ordinary Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions by corporations which are not PFICs would apply to distributions by us, except that the lower applicable capital gains rate for qualified dividend income discussed above under "—Taxation of Dividends and Other Distributions on our Ordinary Shares" generally would not apply.

The mark-to-market election is available only for "marketable stock", which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations), including the Nasdaq Capital Market. If the Ordinary Shares are regularly traded on the Nasdaq Capital Market and if you are a holder of Ordinary Shares, the mark-to-market election would be available to you were we to be or become a PFIC.

Alternatively, a U.S. Holder of stock in a PFIC may make a "qualified electing fund" election under Section 1295(b) of the US Internal Revenue Code with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable year such holder's pro rata share of the corporation's earnings and profits for the taxable year. The qualified electing fund election, however, is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold Ordinary Shares in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 in each such year and provide certain annual information regarding such Ordinary Shares, including regarding distributions received on the Ordinary Shares and any gain realized on the disposition of the Ordinary Shares.

If you do not make a timely "mark-to-market" election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a "purging election" for the year we cease to be a PFIC. A "purging election" creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the fair market value of the Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your Ordinary Shares for tax purposes.

IRC Section 1014(a) provides for a step-up in basis to the fair market value for our Ordinary Shares when inherited from a decedent that was previously a holder of our Ordinary Shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a timely qualified electing fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our Ordinary Shares, or a mark-to-market election and ownership of those Ordinary Shares are inherited, a special provision in IRC Section 1291(e) provides that the new U.S. Holder's basis should be reduced by an amount equal to the Section 1014 basis minus the decedent's adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent's passing, the PFIC rules will cause any new U.S. Holder that inherits our Ordinary Shares from a U.S. Holder to not get a step-up in basis under Section 1014 and instead will receive a carryover basis in those Ordinary Shares.

You are urged to consult your tax advisors regarding the application of the PFIC rules to your investment in our Ordinary Shares and the elections discussed above.

***Information Reporting and Backup Withholding***

Dividend payments with respect to our Ordinary Shares and proceeds from the sale, exchange or redemption of our Ordinary Shares may be subject to information reporting to the U.S. Internal Revenue Service and possible U.S. backup withholding under Section 3406 of the US Internal Revenue Code with at a current flat rate of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes any other required certification on U.S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on U.S. Internal Revenue Service Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service and furnishing any required information. We do not intend to withhold taxes for individual shareholders. Transactions effected through certain brokers or other intermediaries, however, may be subject to withholding taxes (including backup withholding), and such brokers or intermediaries may be required by law to withhold such taxes.

Under the Hiring Incentives to Restore Employment Act of 2010, certain U.S. Holders are required to report information relating to our Ordinary Shares, subject to certain exceptions (including an exception for Ordinary Shares held in accounts maintained by certain financial institutions), by attaching a complete Internal Revenue Service Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold Ordinary Shares.

**UNDERWRITING**

We will enter into an underwriting agreement with Univest Securities, LLC, or the representative, to act as the representative of the underwriters named below. Subject to the terms and conditions of the underwriting agreement, the underwriters named below have agreed to purchase, and we have agreed to sell to them, the number of our ordinary shares at the initial public offering price, less the underwriting discounts, as set forth on the cover page of this prospectus and as indicated below:

---

| | |
|:---|:---|
| **Name** | **Number of<br> Ordinary Shares** |
| Univest Securities, LLC |  |
| **Total** |  |

---

The underwriters are offering the ordinary shares subject to their acceptance of the ordinary shares from us and subject to prior sale. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the ordinary shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the ordinary shares offered by this prospectus if any such ordinary shares are taken.

**Discounts and Expenses**

The underwriters will offer the shares to the public at the initial public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $[\*] per share, assuming an initial public offering price of $5.0 per share, which is the midpoint of the range set forth on the cover page of this prospectus. After this offering, the initial public offering price, concession and reallowance to dealers may be reduced by the representative. No such reduction shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

The following table shows the price per share and total initial public offering price, underwriting discounts, and proceeds before expenses to us.

---

| | | |
|:---|:---|:---|
|  | | **Total** |
|  |<br>**Per Share** | |
| Initial public offering price <sup>(1)</sup> | $5.00 | $|
| Underwriting discounts to be paid by us<sup>(2)</sup> | $— | $|
| Proceeds to us, before expenses | $— | $|

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Initial public offering price per share
 is assumed as $5.00 per share, which is the midpoint of the range set forth on the cover
 page of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(2) We have agreed to pay the underwriters a discount equal to 7.0%
 of the gross proceeds of the offering.

We have agreed to reimburse the representative up to a maximum of $250,000 for out-of-pocket accountable expenses (including, but not limited to, travel, due diligence expenses, reasonable fees and expense of its legal counsel, roach show and background checks on our principals). We paid $50,000 to the representative as an advance against out-of-pocket accountable expenses upon the execution of the exclusive engagement agreement between us and the representative (the "Engagement Agreement") and will pay an additional $50,000 upon the first filing of registration statement we will make to the SEC, for the representative's anticipated out-of-pocket expenses. Any expenses advancement will be returned to us to the extent the representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).

Additionally, we have agreed to reimburse the representative 1% of the actual amount of the offering as non-accountable expense allowance of the offering at the closing of this offering.

**Representative's Warrants**

In addition, we have agreed to issue the representative's warrants to the representative to purchase up to an aggregate number of ordinary shares equal to 3% of the total number of ordinary shares sold in this offering. Such warrants shall have an exercise price equal to 110% of the initial public offering price of the ordinary shares sold in this offering and shall be exercisable cashless for a period of five years from the effective date of the registration statement of which this prospectus forms a part. The representative's warrants and the underlying shares will be deemed compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e). In accordance with FINRA Rule 5110(e)(1), and except as otherwise permitted by FINRA rules, neither the representative's warrants nor any of our shares issued upon exercise of the representative's warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of [\*]days beginning on the date of commencement of sales of the offering. The representative's warrants and the underlying ordinary shares will be registered in the registration statement of which this prospectus forms a part. We agreed to maintain an effective registration statement on Form F-1 (or Form F-3, if we are eligible to use such form) until such date that is the earlier of the date when all of the ordinary shares underlying the representative's warrants have been publicly sold by holder of such warrants or such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such ordinary shares underlying the representative's warrants without registration.

We will bear all fees and expenses attendant to registering the ordinary shares underlying the representative's warrants, other than any underwriting commissions incurred and payable by the warrant holders. The exercise price and number of ordinary shares issuable upon exercise of the representative's warrants may be adjusted in certain circumstances, including in the event of a share dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The warrant exercise price and/or underlying shares may also be adjusted for issuances of ordinary shares at a price below the warrant exercise price.

**Indemnification**

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments that the underwriters may be required to make in respect of those liabilities.

**Right of First Refusal**

We have agreed to grant the representative, for the 18-month period following the closing of the initial public offering of the Company, whether or not our engagement with the representative pursuant to the Engagement Agreement is terminated (other than termination for cause by the Company due to material breach of the Engagement Agreement or material failure by the representative to provide services contemplated under the Engagement Agreement), a right of first refusal (provided that the offering is completed) to provide investment banking services to the Company on an exclusive basis in the matters for which investment banking services are sought by the Company. Investment banking services shall include (a) acting as lead or joint-lead manager for any underwritten public offering (b) acting as lead or joint-book runner and/or lead or joint placement agent initial purchaser in connection with any private offering of securities of the Company.

**Observer's right**

For the period of one year from the effective of the registration statement of which this prospectus forms a part, upon notice from the representative to the Company, the representative shall have the right to send a representative (who need not be the same individual from meeting to meeting) to observe each meeting of the board of directors of the Company; provided that such representative shall sign a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the representative and its counsel in connection with such representative's attendance at meetings of the board of directors of the Company; and provided further that upon written notice to the representative, the Company may exclude the representative from meetings where, in the written opinion of counsel for the Company, the representative's presence would destroy the attorney-client privilege. The Company agrees to give the representative written notice of each such meeting and to provide the representative with an agenda and minutes of the meeting no later than it gives such notice and provides such items to the other directors, and reimburse the representative for his or her reasonable out-of-pocket expenses incurred in connection with its attendance at the meeting, including but not limited to, food, lodging and transportation, as well fees or compensation not in excess of those received by other non-employee members of the board of directors of the Company.

**Lock-Up Agreements**

We have agreed, for a period of [\*] months from the date of this prospectus, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of, except in this offering, any of our ordinary shares or securities that are substantially similar to our ordinary shares, including but not limited to any options or warrants to purchase our ordinary shares, or any securities that are convertible into or exchangeable for, or that represent the right to receive, our ordinary shares or any such substantially similar securities (other than pursuant to employee stock option plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of, the date such lock-up agreement was executed), without the prior written consent of the representative.

Our officers, directors and shareholders have agreed, subject to certain exceptions, to a [\*] lock-up period from the date of this prospectus, with respect to the ordinary shares that they beneficially own, including the issuance of shares upon the exercise of convertible securities and options that may be currently outstanding or which may be issued. This means that, for a period of twelve months following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these securities without the prior written consent of the representative or as otherwise agreed.

The representative has no present intention to waive or shorten the lock-up period; however, the terms of the lock-up agreements may be waived at its discretion. In determining whether to waive the terms of the lock-up agreements, the representative may base its decision on its assessment of the relative strengths of the securities markets and companies similar to ours in general, and the trading pattern of, and demand for, our securities in general.

**Listing**

We intend to apply to list our ordinary shares on the Nasdaq Capital Market under the symbol "BBCH". We make no representation that such application will be approved or that our ordinary shares will trade on such market either now or at any time in the future. However, we will not complete this offering unless we are so listed.

**Electronic Offer, Sale and Distribution**

A prospectus in electronic format may be made available on websites or through other online services maintained by the underwriters or selling group members, if any, or by their affiliates, and the underwriters may distribute prospectus electronically. The underwriters may agree to allocate a number of ordinary shares to selling group members for sale to their online brokerage account holders. The ordinary shares to be sold pursuant to internet distributions will be allocated on the same basis as other allocations. Other than the prospectus in electronic format, the information on, or that can be accessed through, these websites and any information contained in any other website maintained by these entities is not part of, and is not incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters, and should not be relied upon by investors.

In connection with this offering, certain of the underwriters or securities dealers may distribute prospectuses by electronic means, such as e-mail.

**Passive Market Making**

Any underwriter who is a qualified market maker on Nasdaq may engage in passive market making transactions on Nasdaq, in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. Passive market makers must comply with applicable volume and price limitations and must be identified as a passive market maker. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security. If all independent bids are lowered below the passive market maker's bid, however, the passive market maker's bid must then be lowered when certain purchase limits are exceeded.

**Pricing of this Offering**

Prior to this offering, there has been no public market for our ordinary shares. The initial public offering price for our ordinary shares will be determined through negotiations between us and the representative. Among the factors to be considered in these negotiations will be prevailing market conditions, our financial information, market valuations of other companies that we and the representative believe to be comparable to us, estimate of our business potential and earning prospects, the present state of our development and other factors deemed relevant. The initial public offering price of our ordinary shares in this offering does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of our company.

**Potential Conflicts of Interest**

The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own accounts and for the accounts of their customers and such investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**No Sales of Similar Securities**

We have agreed not to offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares or enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of our ordinary shares, whether any such transaction is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, without the prior written consent of the representative, for a period of [\*] days from the date of this prospectus.

**Selling Restrictions**

Other than in the United States, no action may be taken, and no action has been taken, by us or the underwriters that would permit a public offering of the ordinary shares offered by, or the possession, circulation or distribution of, this prospectus in any jurisdiction where action for that purpose is required. The ordinary shares offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such shares be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any ordinary shares offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

In addition to the offering of the ordinary shares in the United States, the underwriters may, subject to applicable foreign laws, also offer the ordinary shares in certain countries.

**Stamp Taxes**

If you purchase ordinary shares offered by this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the initial public offering price listed on the cover page of this prospectus.

**Price Stabilization, Short Positions and Penalty Bids**

Until the distribution of the ordinary shares offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase our ordinary shares. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act that are intended to stabilize, maintain or otherwise affect the price of our ordinary shares. As applicable, the underwriters may engage in over-allotment sales, syndicate covering transactions, stabilizing transactions and penalty bids in accordance with Regulation M.

● Stabilizing transactions consist of bids or purchases made by the managing underwriter for the purpose of preventing or slowing a decline in the market price of our securities while this offering is in progress.

● Short sales and over-allotments (as applicable) occur when the managing underwriter, on behalf of the underwriting syndicate, sells more of our shares than they purchase from us in this offering. In order to cover the resulting short position, the managing underwriter may exercise the over-allotment option (as applicable) described above and/or may engage in syndicate covering transactions. There is no contractual limit on the size of any syndicate covering transaction. The underwriters will deliver a prospectus in connection with any such short sales. Purchasers of shares sold short by the underwriters are entitled to the same remedies under the federal securities laws as any other purchaser of units covered by the registration statement.

● Syndicate covering transactions are bids for or purchases of our securities on the open market by the managing underwriter on behalf of the underwriters in order to reduce a short position incurred by the managing underwriter on behalf of the underwriters.

● A penalty bid is an arrangement permitting the managing underwriter to reclaim the selling concession that would otherwise accrue to an underwriter if the ordinary shares originally sold by the underwriter were later repurchased by the managing underwriter and therefore were not effectively sold to the public by such underwriter.

Stabilization, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our ordinary shares or preventing or delaying a decline in the market price of our ordinary shares. As a result, the price of our ordinary shares may be higher than the price that might otherwise exist in the open market.

Neither we nor the underwriters make any representation or prediction as to the effect that the described above may have on the prices of our ordinary shares. The underwriters are not required to engage in these activities and may discontinue any of these activities at any time without notice. These transactions may be effected on Nasdaq, in the over-the-counter market, or otherwise.

**Selling Restrictions**

No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of the Ordinary Shares, or the possession, circulation or distribution of this prospectus or any other material relating to us or the Ordinary Shares, where action for that purpose is required. Accordingly, the Ordinary Shares may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material or advertisements in connection with the Ordinary Shares may be distributed or published, in or from any country or jurisdiction except in compliance with any applicable rules and regulations of any such country or jurisdiction.

**EXPENSES RELATING TO THIS OFFERING**

Set forth below is an itemization of the total expenses, excluding underwriting discounts and the non-accountable expense allowance payable to the underwriter, that we expect to incur in connection with this offering. With the exception of the SEC registration fee, the FINRA filing fee and the Nasdaq Capital Market listing fee, all amounts are estimates.

---

| | |
|:---|:---|
| Securities and Exchange Commission Registration Fee | $[●] |
| Nasdaq Capital Market Listing Fee | $[●] |
| FINRA Filing Fee | $5000 |
| Legal Fees and Expenses | $564877 |
| Accounting Fees and Expenses | $250000 |
| Reimbursement expense for the underwriter | $250000 |
| Printing and Engraving Expenses | $[●] |
| Transfer Agent Expenses | $[●] |
| Miscellaneous Expenses | $77918 |
| **Total Expenses** | $[●] |

---

These expenses will be borne by us. Underwriting discounts will be borne by us in proportion to the numbers of Ordinary Shares sold in the offering.

**LEGAL MATTERS**

The validity of the Ordinary Shares offered in this offering and certain other legal matters as to Cayman Islands law will be passed upon for us by Ogier, our counsel as to Cayman Islands law. Certain legal matters as to United States Federal and New York State law in connection with this offering will be passed upon for us by Hunter Taubman Fischer & Li LLC. Legal matters as to PRC law will be passed upon for us by AllBright Law Offices (Fuzhou) and for the underwriter by Yingke Law Firm. Our Underwriter, Univest Securities LLC, is represented by King & Wood Mallesons LLP with respect to certain legal matters of U.S. federal securities and New York state law.

**EXPERTS**

The consolidated financial statements for the years ended December 31, 2020 and 2021, included in this prospectus have been so included in reliance on the report of TPS Thayer, LLC, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The office of TPS Thayer, LLC is located at 1600 Hwy. 6, Suite 100, Sugar Land, TX 77478.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form F-1, including relevant exhibits and schedules under the Securities Act, covering the Ordinary Shares offered by this prospectus. You should refer to such registration statement and its exhibits and schedules if you would like to find out more about us and about the Ordinary Shares. This prospectus summarizes material provisions of contracts and other documents that we refer you to. Since the prospectus may not contain all the information that you may find important, you should review the full text of these documents.

Immediately upon the completion of this offering, we will be subject to periodic reporting and other informational requirements of the Exchange Act, as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. As a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing the furnishing and content of proxy statements to shareholders under the federal proxy rules contained in Sections 14(a), (b) and (c) of the Exchange Act, and our executive officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

All information filed with the SEC can be obtained over the internet at the SEC's website at www.sec.gov. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

**INDEX TO FINANCIAL STATEMENTS**

**BLUE-TOUCH HOLDINGS GROUP CO., LTD AND SUBSIDIARIES**

---

| | |
|:---|:---|
| Consolidated Financial Statements |  |
| [Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited)](#fin2_001) | [F-2](#fin2_001) |
| [Consolidated Statements of Income and Comprehensive Income for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_002) | [F-3](#fin2_002) |
| [Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_003) | [F-4](#fin2_003) |
| [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_004) | [F-5](#fin2_004) |
| [Notes to Consolidated Financial Statements (Unaudited)](#fin2_005) | [F-6](#fin2_005) |
| [Report of Independent Registered Public Accounting Firm](#f_001) | [F-25](#f_001) |
| [Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020](#f_002) | [F-26](#f_002) |
| [Consolidated Statements of Income and Comprehensive Income for the Fiscal Years Ended December 31, 2021 and 2020](#f_003) | [F-27](#f_003) |
| [Consolidated Statements of Changes in Shareholders' Equity for the Fiscal Years Ended December 31, 2021 and 2020](#f_004) | [F-28](#f_004) |
| [Consolidated Statements of Cash Flows for the Fiscal Years Ended December 31, 2021 and 2020](#f_005) | [F-29](#f_005) |
| [Notes to Consolidated Financial Statements](#f1_008) | [F-30](#f1_008) |

---

---

| | |
|:---|:---|
| **BLUE-TOUCH HOLDINGS GROUP CO., LTD**<br>**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**Consolidated Financial Statements** |  |
| [Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited)](#fin2_001) | [F-2](#fin2_001) |
| [Consolidated Statements of Income and Comprehensive Income for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_002) | [F-3](#fin2_002) |
| [Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_003) | [F-4](#fin2_003) |
| [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited)](#fin2_004) | [F-5](#fin2_004) |
| [Notes to Consolidated Financial Statements (Unaudited)](#fin2_005) | [F-6](#fin2_005) |

---

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Balance Sheets**

**As of June 30, 2022 and December 31, 2021**

**(Unaudited)**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31, <br>2021** |
|  | (**Unaudited)** | (**Audited)** |
| **ASSETS** |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $2884013 | $1857732 |
| Accounts receivable, net | 1998635 | 2418309 |
| Amounts due from related parties | 5841 | 6148 |
| Inventories, net | 276903 | 455249 |
| Deferred IPO expenses and other current assets | 202914 | 101408 |
| **Total current assets** | 5368306 | 4838846 |
| Non-current assets |  |  |
| Property and equipment, net | 682521 | 806228 |
| Intangible assets, net | 101330 | 113002 |
| Operating lease right-of-use assets, net | 129737 | 153059 |
| Deferred income tax assets | 113566 | 244936 |
| **Total non-current assets** | 1027154 | 1317225 |
| **TOTAL ASSETS** | $**6395460** | $**6156071** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $103913 | $146208 |
| Taxes payable | 88879 | 116408 |
| Amounts due to related parties | 144667 | 49976 |
| Accrued expenses and other current liabilities | 56690 | 88407 |
| Current maturities of long-term loans | 5550 | 5614 |
| Current maturities of lease liabilities | 34532 | 34931 |
| **Total current liabilities** | 434231 | 441544 |
| **Non-current liabilities** |  |  |
| Long-term portion of long-term loans | 20349 | 24857 |
| Long-term portion of lease liabilities | 99377 | 123147 |
| **Total non-current liabilities** | 119726 | 148004 |
| **TOTAL LIABILITIES** | 553957 | 589548 |
| Commitments and contingencies |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |
| Ordinary shares, $0.0005 par value, 100,000,000 shares authorized; 12,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | 6000 | 6000 |
| Additional paid-in capital | 7744908 | 7744908 |
| Accumulated deficit | (1755245) | (2322717) |
| Accumulated other comprehensive (deficit) income | (154160) | 138332 |
| **Total equity attributable to Blue-Touch shareholders** | 5841503 | 5566523 |
| **TOTAL SHAREHOLDERS' EQUITY** | 5841503 | 5566523 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**6395460** | $**6156071** |

---

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

(Unaudited)

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Operations and Other Comprehensive Income**

**For the Six Months Ended June 30, 2022 and 2021**

**(Unaudited)**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **June 30, <br> 2021** |
| Revenues | $3891408 | $2944245 |
| Cost of revenues | 2381566 | 1818628 |
| Gross profit | 1509842 | 1125617 |
| Operating expenses |  |  |
| Sales and marketing expenses | 420451 | 322469 |
| General and administrative expenses | 286203 | 245717 |
| Research and development expenses | 121650 | 166861 |
| Total operating expenses | 828304 | 735047 |
| Income from operations | 681538 | 390570 |
| Other income (expense) |  |  |
| Interest income | 3566 | 673 |
| Interest expense | (1775) | (468) |
| Foreign currency exchange gain | 6887 | - |
| Total other income | 8678 | 205 |
| Income before income taxes | 690216 | 390775 |
| Income tax expense | (122744) | (86054) |
| Net income | $567472 | $304721 |
| Other comprehensive income (loss) |  |  |
| Foreign currency translation adjustment, net of nil tax | (292492) | (99153) |
| Total comprehensive income | $274980 | $205568 |
| Net income per ordinary share - basic and diluted | $0.0473 | $0.0254 |
| Weighted average number of ordinary shares outstanding—basic and diluted | 12000000 | 12000000 |

---

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

(Unaudited)

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Changes in Shareholders' Equity**

**For the Six Months Ended June 30, 2022**

**(Unaudited)**

**(Amounts in US$, except for number of shares)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number<br> of<br> Shares** | **Paid-in<br> capital** | **Additional <br> paid-in <br> capital** | **Accumulated<br> deficit** | **Accumulated<br> other<br> comprehensive<br> income** | **Equity<br> attributable<br> to the<br> Company's<br> shareholders** | **Total <br> equity** |
| Balance as of December 31, 2021 | 12000000 | $6000 | $7744908 | $(2322717) | $138332 | $5566523 | $5566523 |
| Net income |  |  |  | 567472 |  | 567472 | 567472 |
| Foreign currency translation adjustment | - | - | - | - | (292492) | (292492) | (292492) |
| Balance as of June 30, 2022 | 12000000 | $6000 | $7744908 | $(1755245) | $(154160) | $5841503 | $5841503 |

---

**For the Six Months Ended June 30, 2021**

**(Unaudited)**

**(Amounts in US$, except for number of shares)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number<br> of<br> Shares** | **Paid-in<br> capital** | **Additional<br> paid-in<br> capital** | **Accumulated<br> deficit** | **Accumulated<br> other<br> comprehensive<br> income** | **Equity<br> attributable<br> to the<br> Company's<br> shareholders** | **Total <br> equity** |
| Balance as of December 31, 2020 | 12000000 | 6000 | 341818 | (3098239) | 138332 | (2612089) | (2612089) |
| Net income |  |  |  | 304721 |  | 304721 | 304721 |
| Foreign currency translation adjustment | - | - | - | - | (99153) | (99153) | (99153) |
| Balance as of June 30, 2021 | 12000000 | 6000 | 341818 | (2793518) | 39179 | (2406521) | (2406521) |

---

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

(Unaudited)

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Cash Flows**

**For the Six Months Ended June 30, 2022 and 2021**

**(Unaudited) (Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2022** | **June 30,**<br> **2021** |
| Cashflows from operating activities |  |  |
| Net income | $567472 | $304721 |
| Adjustments to reconcile net income to net cash |  |  |
| Deferred tax benefit | 122744 | 86054 |
| Foreign currency exchange loss | (6887) |  |
| Depreciation of property and equipment | 85918 | 48557 |
| Amortization of intangible asset | 6203 | 6246 |
| Lease expense | 22048 | 22201 |
| Changes in working capital |  |  |
| Accounts receivable, net | 419674 | 194581 |
| Inventory | 178346 | (56282) |
| Deferred IPO expenses and other current assets | (96370) | (353930) |
| Account payable | (42295) | (86024) |
| Taxes payable | (27529) | (23465) |
| Accrued expenses and other current liabilities | (31717) | (6305) |
| Operating lease liability | (21992) | (18204) |
| Cashflows provided by operating activities | 1175615 | 118150 |
| Investing Activities |  |  |
| Cashflows provided by investing activities | - | - |
| Financing Activities |  |  |
| Proceeds from Related parties | 96370 |  |
| Repayment of long-term loans | (3048) | - |
| Cashflows provided by financing activities | 93322 | - |
| Effects of currency translation | (242656) | 21384 |
| Net increase in cash and cash equivalents | 1026281 | 139534 |
| Cash and cash equivalents at beginning of year | 1857732 | 463513 |
| Cash and cash equivalents at end of year | $2884013 | $603047 |
| SUPPLEMENTAL DISCLOSURES |  |  |
| Interest paid | $1775 | $468 |

---

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

(Unaudited)

**Blue-Touch Holdings Group Co., Ltd**

**Notes to the Consolidated Financial Statements**

**As of June 30, 2022 and December 31, 2021, and for the Six months Ended June 30, 2022 and 2021**

**NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS**

**Blue-Touch Holdings Group Co., Ltd** ("Blue-Touch") was incorporated as an exempted holding company under the laws of the Cayman Islands on September 27, 2021. Blue-Touch does not conduct any substantive operations on its own, but instead conducts its business operations through its a wholly-owned subsidiary in PRC and the subsidiary of it. Blue-Touch and its subsidiaries are hereinafter collectively referred to as "the Company." Blue-Touch and its subsidiaries are principally engaged in designing, developing, and selling baby skincare products and toiletries as well as household cleaning products under the brand "Blue-Touch" in the PRC. As described below, Blue-Touch, through a series of transactions which is accounted for as a reorganization of entities under common control (the "Reorganization"), became the ultimate parent entity of its subsidiaries. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented.

**Reorganization**

A Reorganization of the Company's legal structure was completed on January 10, 2022. The Reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of Fujian Blue-Touch Holdings Group Co., Ltd. (the "WFOE") as a wholly-owned subsidiary in the PRC; (iii) Fujian Blue-Touch Technology Co., Ltd. (the operating entity) was incorporated on September 24, 2014 and on January 10, 2022, the WFOE entered into securities purchase agreements with the operating entity's then shareholders. Accordingly, the WFOE acquired all of the shares of the operating entity, and the operating entity became a wholly-owned subsidiary of the WFOE.

Currently, Blue Touch holds 100% equity interests in the PRC subsidiaries, and the Company does not use a variable interest entity structure. The following diagram illustrates the Company's corporate structure as of the date of this report.

![](tm2226747d2_f1aimg001.jpg)

Blue-Touch is a holding company and had not commenced operations until the Reorganization was complete. At the Reorganization, Blue-Touch issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in the operating entity from the former shareholders to the WFOE.

During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the control of the PRC shareholders). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control, and thus, the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and, in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.

Blue-Touch's major consolidated subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Date of <br> Organization** | **Place of<br> Organization** | **% of <br> Ownership** |
| Fujian Blue-Touch Holdings Group Co., Ltd. | December 20, 2021 | PRC | 100% |
| Fujian Blue-Touch Technology Co., Ltd. | September 24, 2014 | PRC | 100% |

---

The WFOE, currently with no business operations, was incorporated as a limited company under the laws of the PRC on December 20, 2021 and is a holding company of 100% of the equity interests in the operating entity.

The operating entity was incorporated as a limited company under the laws of the PRC on September 24, 2014. The operating entity is principally engaged in the designing, developing, and selling of baby skincare products and toiletries as well as household cleaning products under the brand "Blue-Touch" in the PRC.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

**Basis of accounting**

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the financial statements of Blue-Touch and its subsidiaries, for which the Company is the ultimate primary beneficiary.

Subsidiaries are those entities in which Blue-Touch, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

All significant transactions and balances among Blue-Touch and its subsidiaries have been eliminated upon consolidation.

**Use of estimates**

In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, deferred IPO expenses, and other receivables, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and provision necessary for contingent liabilities. Actual results could differ from those estimates.

**Cash and cash equivalents**

Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other comparable programs.

**Accounts receivable**

Accounts receivable are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers' credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. For the six months ended June 30, 2022 and the year ended December 31, 2021, the aging of the accounts receivable balance was less than 90 days, and, thus, the Company determined that all accounts receivable balances as of June 30, 2022 and December 31, 2021 were collectible. As of June 30, 2022 and December 31, 2021, the allowance for doubtful accounts was $0 and $0, respectively.

**Inventories**

Inventories are primarily household cleaning products, such as laundry detergent, multi-functional cleaner, disinfectant, and baby skincare products and toiletries, such as camellia oil moisturizer, camellia oil lotion, shampoo, etc. Inventories are stated at the lower of cost or net realizable value. The cost value of inventories is determined using the weighted average method based on procurement costs. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress. The Company uses the weighted average cost method.

**Property and equipment, net**

Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expenses as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets, as follows:

---

| | |
|:---|:---|
|  | **Useful<br> Lives** |
| Office Equipment | 5 Years |
| Electronic Equipment | 3 Years |
| Motor Vehicles | 4 Years |
| Furniture and Fixtures | 10 Years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.

**Intangible assets, net**

During the year ended December 31, 2020, the Company purchased and registered a patent on camellia oil extraction and processing technology. This patent is initially recorded at cost value and amortized on a straight-line basis over the estimated economic useful life of ten years. The Company reviews the carrying values of intangible assets whenever events and circumstances, such as a significant decline in the asset's market value, obsolescence or physical damage affecting the asset during monthly count or receipt quality check, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If any circumstance above happens, then management would evaluate if the estimated cash flows from the use of the asset and its eventual disposition are below the asset's carrying value, then the asset is deemed to be impaired and written down to its fair value. For the six months ended June 30, 2022 and the year ended December 31, 2021, the Company recorded no impairment losses for intangible assets.

**Leases**

Leases are classified at each lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset, or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria is fulfilled, the lease shall be classified as an operating lease.

For the lessee, a lease is recognized as a right-of-use asset with a corresponding liability at the lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at the lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before the lease commencement. The right-of-use asset itself is amortized on a straight-line basis, unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term.

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842, effective as of the beginning of the first period presented, on January 1, 2020, by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had an immaterial impact on the Company's financial position, with no material impact on the results of operations and cash flows.

The Company's accounting policy is to recognize lease payments as rental expense for short-term leases less than 12 months. During the six months ended June 30, 2022 and 2021, the Company did not enter into any short-term leases and the Company recognized no rental expenses for short-term leases.

**Impairment of Long-lived Assets**

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed to be not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset's carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charge equal to the excess of the asset's carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique.

**Fair Value of Financial Instruments**

The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest.

ASC 820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2022 and December 31, 2021 owing to their short-term or immediate nature.

**Revenue Recognition**

The Company adopted Accounting Standards Codification No. 606, *Revenue from Contracts with Customers* (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in the Company's consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of the Company.

The following five steps are applied to achieve that core principle by us in determination of revenue recognition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 1: Identify the contract(s) with the customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 2: Identify the performance obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 3: Determine the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 4: Allocate the transaction price to the performance obligations
 in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 5: Recognize revenue when or as the Company satisfies a performance
 obligation.

The Company derives revenue from the sales of household cleaning products, including fabric softener, laundry detergent, multi-functional cleaner and disinfectant, and baby skincare products and toiletries, including camellia oil moisturizer, camellia oil lotion and shampoo. The Company relies on third-party distributors to distribute and sell the products in the PRC. The third-party distributors directly sell the products to the offline distributors who generally sell the products to the end customer through their own distribution networks. The Company considers distributors' purchase orders to be the contracts with customers. As part of its consideration of the contract, the Company evaluates certain factors, including the customer's ability to pay. For each contract, the Company has the obligation to transfer products and deliver the products to the place designated by the customer within the agreed time, each of which is distinct, and has the right to collect the payment within the agreed period after the distributors have control of the goods. The payment terms for the goods to be transferred can be identified in the contracts. The Company is a principal for this performance obligation, as the Company is ultimately responsible for the fulfillment and acceptability of products, controlling the nature, timing, extent of the products sold, undertakes the inventory risk before the goods transferred to the customer and has discretion in establishing the price for the products. The transaction prices in the orders are agreed upon and fixed once the quantity of goods is confirmed, at the inception of the order, and there are no variable consideration clauses such as discounts, incentives and penalties in the sales contract. The Company evaluated the historical sales return and the impact of sales return is immaterial. Accordingly, the Company did not accrue any sales return allowance. Due to the nature of the products sold by the Company, there are no warranties provided by the Company. There is only one performance obligation in the contract and there is no need for the allocation of transaction price. The Company is responsible for delivering the products from its warehouse to its distributors' storage facilities after accepting the finished products from the third-party manufacturers. The sales predominantly contain a single performance obligation and the revenue was recognized upon fulfillment of the performance obligation, after the distributors have control of the goods, typically at delivery, which is at a point of time.

The Company's revenues are subject to value added tax ("VAT"). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606.

**Cost of sales**

The Company does not conduct manufacturing activities and entered into annual contracts with the third-party manufacturers who process and produce the products for the Company. Cost of sales primarily consists of procurement cost of inventories, warehousing costs and other activities.

**Sales and marketing expenses**

Sales and marketing expenses are primarily comprised of certain salaries and sales commissions of employees in the marketing department, transportation fees, fees associated with trade shows and similar exhibitions, advertisement expense and other miscellaneous items. During the six months ended June 30, 2022 and 2021, the Company recognized selling and marketing expense of $420,451 and $322,469, respectively. The Company expenses the costs of producing advertisements and costs of delivering advertisements in the period in which the advertising space or airtime is used.

**General and administrative expenses**

General and administrative expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department within the Company, such as manufacturing, production, or sales. General and administrative expenses are primarily comprised of rental fees, utilities, insurance, legal fees, certain salaries and operational overhead expenses that impact the entire business. During the six months ended June 30, 2022 and 2021, the Company recognized general and administrative expenses of $286,203 and $245,717, respectively.

**Research and development expenses**

Research and development expense are amounts that the Company spent to develop new products and services (these expenses do not meet the capitalization criteria) each year. The Company generally pursues product development through internal research and development as well as through collaborations or other arrangements with third parties. During the six months ended June 30, 2022 and 2021, the Company recognized research and development expenses of $121,650 and $166,861, respectively.

**Income taxes**

Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax asset will not be realized.

**Ordinary shares**

The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders' equity. Cancellation of treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital and retained earnings, as applicable. An excess of purchase price over par value is allocated to additional paid-in capital first with any remaining excess charged entirely to retained earnings.

**Related parties**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

**Earnings per share**

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no potentially dilutive ordinary shares during the six months ended June 30, 2022 and 2021.

**Comprehensive income/ (loss)**

ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the six months ended June 30, 2022 and 2021, foreign currency translation gain (loss) adjustments of $(292,492) and $(99,153), respectively, were recognized as a component of accumulated other comprehensive income (loss).

**Foreign currency translation**

The Company's principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments are included as a separate component of accumulated other comprehensive income (loss).

The value of RMB against the U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions. Any significant revaluation of RMB may materially affect the Company's consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** | **June 30,<br> 2021** |
| Period-end spot rate | US$1= 6.7114 RMB | US$1= 6.3757 RMB | US$1=6.4601 RMB |
| Period Average rate | US$1= 6.5132 RMB | US$1= 6.4474 RMB | US$1=6.4682 RMB |

---

**Segment reporting**

Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company's most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company's various lines of business and geographical locations.

Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment.

**Commitments and contingencies**

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2022 and December 31, 2021.

**Concentration of risks**

*Exchange rate risks*

The Company's Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2022 and December 31, 2021, the RMB denominated cash and cash equivalents amounted to $2,884,013 and $1,857,732, respectively.

*Currency convertibility risks*

Substantially all of the Company's operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People's Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People's Bank of China. Approval of foreign currency payments by the People's Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers' invoices, shipping documents and signed contracts.

*Concentration of credit risks*

Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company's maximum exposure. The Company places its cash and cash equivalents in financial institutions in China.

**Risks and uncertainties**

The operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, including its organization and structure disclosed in Note 1, this may not be indicative of future results.

**Recent accounting pronouncements**

The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this ASU modify the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company adopted ASU 2018-13 for the six months ended June 30, 2022 and 2021, and the year ended December 31, 2021, and the adoption of this update did not have a material impact on the Company's consolidated financial position as of June 30, 2022 and December 31, 2021, or results of operations and cash flows for the six months ended June 30, 2022 and 2021.

The Company does not believe other recently issued but not yet effective accounting statements, if adopted, would have a material effect on the Company's consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows.

**NOTE 3 – CASH AND CASH EQUIVALENTS**

Cash and cash equivalents consisted of the following as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Deposit in banks | $2884013 | $1857732 |
| Total cash and cash equivalents | $2884013 | $1857732 |

---

As of June 30, 2022 and December 31, 2021, the Company had a total of $2,884,013 and $1,857,732 in cash and cash equivalents, respectively, which are wholly current deposit and held inside the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other comparable programs.

**NOTE 4 – ACCOUNTS RECEIVABLE, NET**

Accounts receivable consisted of the following as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| Accounts receivable, gross | $1998635 | $2418309 |
| Less: allowance for doubtful accounts | - | - |
| Accounts receivable, net | $1998635 | $2418309 |

---

The Company recorded no allowance for doubtful accounts as of June 30, 2022 and December 31, 2021. The Company gives its customers a payment period of 90 days and continually assesses the recoverability of uncollected accounts receivable. As of June 30, 2022 and December 31, 2021, the balances of the Company's accounts receivable were all due within 90 days. Management believes the balances of accounts receivable will be collected in full.

**NOTE 5– INVENTORIES**

Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress.

Inventories are primarily household chemical products and baby skincare products and toiletries, including fabric softener, laundry detergent, multi-functional cleaner, disinfectant, camellia oil moisturizer, camellia oil lotion, shampoo, etc. As the Company does not conduct manufacturing activities and products are all manufactured by the third-parties, inventories are wholly finished goods and cost of inventories is determined using the weighted average method based on procurement costs.

Inventories as of June 30, 2022 and December 31, 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| Finished goods, gross | $276903 | $455249 |
| Less: Provision for diminution in value of inventories | - | - |
| Total inventories, net | $276903 | $455249 |

---

**NOTE 6 –DEFERRED IPO EXPENSES AND OTHER CURRENT ASSETS**

Deferred IPO expenses and other current assets as of June 30, 2022 and December 31, 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| Deferred IPO expenses | $151554 | $49976 |
| Other receivables | 51360 | 51432 |
| Total Deferred IPO expenses and other current assets | $202914 | $101408 |

---

Deferred IPO expenses consists of consulting fees paid to underwriters, lawyers and auditors and other fees related to the listing, which totaled $151,554 and $49,976 as of June 30, 2022 and December 31, 2021, respectively.

**NOTE 7 – PROPERTY AND EQUIPMENT, NET**

Property and equipment consisted of the following as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Motor Vehicles | $529129 | $556990 |
| Electronic Equipment | 65072 | 68498 |
| Office Equipment | 28500 | 30000 |
| Furniture and Fixtures | 566201 | 596013 |
| Total property and equipment, at cost | 1188902 | 1251501 |
| Less: accumulated depreciation | (506381) | (445273) |
| Property and equipment, net | $682521 | $806228 |

---

As of June 30, 2022 and December 31, 2021, there was not any pledged property and equipment. The Company recorded depreciation expense of $85,918 and $48,557 during the six months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, the Company did not purchase any new property and equipment. For the six months ended June 30, 2022 and 2021, the Company recorded no impairment losses for property and equipment. For the six months ended June 30, 2022 and 2021, the Company recorded no disposal of property and equipment.

**NOTE 8 – INTANGIBLE ASSETS, NET**

Intangible assets consisted of the following as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Patent | $120392 | $126731 |
| Less: accumulated amortization | (19062) | (13729) |
| Intangible assets, net | $101330 | $113002 |

---

The Company did not purchase or register any new patents during the six months ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, there were no pledged intangible assets to secure bank loans. Patents are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of ten years. The Company recorded amortization expense of $6,203 and $6,246 during the six months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, the Company recorded no impairment losses for intangible assets.

Estimated future Intangible amortization expense is as follows as of June 30, 2022:

---

| | |
|:---|:---|
|  | **As of June 30, 2022** |
| From July 1, 2022 to June 30, 2023 | $12406 |
| From July 1, 2023 to June 30, 2024 | 12406 |
| From July 1, 2024 to June 30, 2025 | 12406 |
| From July 1, 2025 to June 30, 2026 | 12406 |
| From July 1, 2026 to June 30, 2027 | 12406 |
| Beyond June 30, 2027 | 39300 |

---

**NOTE 9 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET**

Operating lease right-of-use assets, net was as follows as of June 30, 2022 and December 31, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2021** | **Increase/<br> (Decrease)** | **Exchange Rate<br> Translation** | **As of<br> June 30,<br> 2022** |
| Office and Warehouse | $197300 | $- | $(9869) | $187431 |
| Facility | 32596 |  | (1630) | 30966 |
| Total right-of-use assets, at cost | 229896 | - | (11499) | 218397 |
| Less: accumulated amortization | (76837) | (16143) | 4320 | (88660) |
| Right-of-use assets, net | $153059 | $(16143) | $(7179) | $129737 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2020** | **Increase/<br> (Decrease)** | **Exchange Rate<br> Translation** | **As of<br> December 31,<br> 2021** |
| Office and Warehouse | $192788 | $— | $4512 | $197300 |
| Facility | 31851 |  | 745 | 32596 |
| Total right-of-use assets, at cost | 224639 | - | 5257 | 229896 |
| Less: accumulated amortization | (44607) | (30840) | (1390) | (76837) |
| Right-of-use assets, net | $180032 | $(30840) | $3867 | $153059 |

---

The Company recognized amortization for the Office and Warehouse Operating Lease Right-of-Use Assets of $13,351 and $25,415 as of June 30, 2022 and December 31, 2021, respectively. The Company recognized amortization for the Facility Operating Lease Right-of-Use Assets of $2,792 and $5,425 as of June 30, 2022 and December 31, 2021, respectively.

**NOTE 10 – ACCOUNTS PAYABLE**

Accounts payable was as follows as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Accounts payable to the suppliers | $103913 | $146208 |
| Total accounts payable | $103913 | $146208 |

---

**NOTE 11 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Employment benefits payable was as follows as of June 30, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Salary and welfare benefits payable | $56690 | $88407 |
| Total salary and welfare benefits payable | $56690 | $88407 |

---

**NOTE 12 – OPERATING LEASE LIABILITIES**

Operating lease liabilities as of June 30, 2022 and December 31, 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| Operating lease liabilities - Office and Warehouse | $106692 | $125948 |
| Operating lease liabilities - Facility | 27217 | 32130 |
| Total operating lease liabilities | $133909 | $158078 |

---

Analyzed for reporting purposes as:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| Long-term portion of operating lease liabilities | $99377 | $123147 |
| Current portion of operating lease liabilities | 34532 | 34931 |
| Total operating lease liabilities | $133909 | $158078 |

---

The operating lease liabilities is the net present value of the remaining lease payments as of June 30, 2022 and December 31, 2021.

The incremental interest rate used for the Office and Warehouse operating leases and Facility operating leases was 7.99%. The weighted average remaining lease terms for operating leases was 3.5 years. For the six months ended June 30, 2022 and 2021, the operating lease expense was $22,048 and $22,201, respectively.

\* The lease agreement of Office and Warehouse was entered into on December 26, 2018 and will expire on December 31, 2025. The installments were paid every month. The remaining payment is discounted using an incremental interest rate at 7.99%. As of June 30, 2022, the Company has paid RMB823,200 (approximately $122,657) in installment payments to the lessor.

\*\* The lease agreement of Facility was entered on December 30, 2020, bears interest at about 7.9900% and will expire on December 31, 2025. The installments were paid monthly with 9-month rent free period. The remaining payment is discounted using an incremental interest rate at 7.99%. As of June 30, 2022, the Company has paid RMB 50,000 (approximately $7,450) in installment payments to the lessor.

Maturity analysis of operating lease liabilities as of June 30, 2022 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **As of June 30, 2022** | **Office and <br> Warehouse** | **Facility** | **Total<br> undiscounted<br> cash flows** |
| Rent term remaining lease terms (years) | 1/1/2019-31/12/2025 | 1/1/2021-31/12/2025 |  |
| Rate | 7.99% | 7.99% |  |
| July 1, 2022 to June 30, 2023 | $35045 | 8940 | 43985 |
| July 1, 2023 to June 30, 2024 | 35045 | 8940 | 43985 |
| July 1, 2024 to June 30, 2025 | 35045 | 8940 | 43985 |
| July 1, 2025 to June 30, 2026 | 17522 | 4470 | 21992 |
| Thereafter | - | - | - |
| Total undiscounted cash flows | $122657 | 31290 | 153947 |
| Total financing lease liabilities | 106692 | 27217 | 133909 |
| Difference between undiscounted cash flows and discounted cash flows | 15965 | 4073 | 20038 |

---

**NOTE 13 –LONG-TERM LOANS**

Long-term loans as of June 30, 2022 and December 31, 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Current maturities of long-term loans | $5550 | $5614 |
| Long-term portion of long-term loans | 20349 | 24857 |
| Total long-term loans | $25899 | $30471 |

---

On August 4, 2021, the operating entity entered into a credit agreement with Mercedes-Benz Automobile Finance Co., Ltd., pursuant to which the operating entity borrowed a principal amount of RMB205,660 ($32,257) at an annual interest rate of 7.99% with a loan term of 60 months. The maturity date of such loan is on August 10, 2026.

**NOTE 14 – TAXES**

The Company is registered in the Cayman Islands. The Company generated substantially all of its income/ (loss) from its PRC operations for the six months ended June 30, 2022 and 2021.

**Cayman Islands**

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

**PRC**

*Income Tax*

On March 16, 2007, the National People's Congress of PRC enacted an Enterprise Income Tax Law ("EIT Law"), under which Foreign Investment Enterprises ("FIEs") and domestic companies would be subject to enterprise income tax ("EIT") at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. 25% tax rates apply to all the PRC operating subsidiaries in the Company.

The provision for income tax for the six months ended June 30, 2022 and 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the six<br> months ended<br> June 30, 2022** | **For the six<br> months ended<br> June 30, 2021** |
| Current income tax provision | $- | $- |
| Deferred income tax benefit | 122744 | 86054 |
| Total | $122744 | $86054 |

---

The following table sets forth reconciliation between the statutory EIT rate and the effective tax for the six months ended June 30, 2022 and 2021, respectively:

---

| | | |
|:---|:---|:---|
|  | **For the six <br> months ended<br> June 30, 2022** | **For the six<br> months ended<br> June 30, 2021** |
| Provision for income taxes at statutory tax rate in the PRC | $122744 | $86054 |
| Effect of income for which no income tax is chargeable |  |  |
| Effect of expense for which no income tax is deductible |  |  |
| Income tax expenses | $122744 | $86054 |

---

The significant components of deferred tax assets as of June 30, 2022 and December 31, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Deferred tax assets-carried forward loss | $113566 | $244936 |
| Total | $113566 | $244936 |

---

There was no valuation allowance for the deferred tax assets as of June 30, 2022 and December 31, 2021. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax assets are deductible, and the scheduled reversal of deferred tax liabilities, the Company believes it is more likely than not the Company will realize the benefits of those deductible differences as of June 30, 2022 and December 31, 2021.

*Value Added Tax ("VAT")*

Business tax changed to VAT in China since May 1, 2016. The Company's revenue of selling household chemical products and skin care products is subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019.

*Taxes payable*

The Company's taxes payable as of June 30, 2022 and December 31, 2021, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2022** | **December 31,<br> 2021** |
| Income tax payable | $— | $- |
| VAT payable | 75769 | 104639 |
| Other tax payables | 13110 | 11769 |
| Total | $88879 | $116408 |

---

**NOTE 15-EQUITY**

**Ordinary Shares and Additional Paid In Capital**

At the reorganization event described in Note 1, the Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in the operating entity from the former shareholders to the WFOE.

The Reorganization has been accounted for at historical cost and prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company.

**Statutory Reserve**

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors of each PRC subsidiary. As of June 30, 2022 and December 31, 2021, no restricted amounts of retained earnings or net income as no net income after taxation was allocated to the statutory reserve, due to the cumulative prior years' losses.

**Restricted assets**

Under PRC laws, rule and regulations, each of our subsidiaries incorporated in China is prohibited from distributing their statutory capital and required to set aside at least 10% of its after-tax profits each year, after making up for previous years' accumulated losses, if any, to fund certain statutory reserves, until the aggregate amount of such fund reaches 50% of its registered capital. As a result of these laws, rules and regulations, our subsidiaries incorporated in China are restricted in their ability to transfer a portion of their respective net assets to their shareholders as dividends. As of June 30, 2022 and December 31, 2021, the amounts restricted include paid in capital and additional paid in capital, totaling $7,750,908 and $7,750,908, respectively, and no amount of retained earnings or net income were restricted, as no net income after taxation was allocated to the statutory reserve, due to the cumulative prior years' losses.

**Dividends**

Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP. The Company's ability to pay dividends is primarily from cash received from its operating activities in the PRC. For the six months ended June 30, 2022 and 2021, there was no dividend declared by the Company.

**NOTE 16 – DISAGGREGATION REVENUE**

The following table presents revenue by major product categories for the six months ended June 30, 2022 and 2021, respectively:

---

| | | |
|:---|:---|:---|
| **Product Category** | **For the six<br> months ended<br> June 30, 2022** | **For the six<br> months ended<br> June 30, 2021** |
| Baby skincare products and toiletries | $1895967 | $1376592 |
| Household cleaning products | 1995441 | 1567653 |
| Total | $3891408 | $2944245 |

---

**NOTE 17 – SEGMENT INFORMATION**

ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments. The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. Because the Company's operating facilities and long-lived assets are all substantially located in the PRC, and the Company's revenue are all substantially generated in the PRC, although the Company sells its products across different geographic regions, based on management's assessment, the Company has determined that it has only one operating segment as defined by ASC 280.

**NOTE 18 – CUSTOMER AND SUPPLIER CONCENTRATION**

Significant customers and suppliers are those that account for greater than 10% of the Company's revenues and purchases.

The Company's sales are made to customers that are located in China. For the six months ended June 30, 2022 and 2021, the individual customers or suppliers that accounted for more than 10% of the Company's total revenues or purchases are as follows:

---

| | | |
|:---|:---|:---|
| | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** |
| <br>**Significant customers** | **Amount** | **%** |
| Distributor A | $575353 | 14.8 |
| Distributor C | 417556 | 10.7 |

---

---

| | | |
|:---|:---|:---|
| | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** |
| <br>**Significant customers** | **Amount** | **%** |
| Distributor A | $496607 | 16.9 |
| Distributor B | 306167 | 10.4 |

---

---

| | | |
|:---|:---|:---|
| | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** |
| <br>**Significant suppliers** | **Amount** | **%** |
| Manufacturer D | $608065 | 27.4 |
| Manufacturer A | 566362 | 25.5 |
| Manufacturer B | 554165 | 25.0 |

---

---

| | | |
|:---|:---|:---|
| | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** |
| <br>**Significant suppliers** | **Amount** | **%** |
| Manufacturer D | $527148 | 28.2 |
| Manufacturer B | 518043 | 27.7 |
| Manufacturer A | 471231 | 25.2 |
| Manufacturer C | 216423 | 11.6 |

---

As of June 30, 2022 and December 31, 2021, the individual customers or suppliers that accounted for 10% or more of the total outstanding accounts receivable or accounts payable balances are as follows:

---

| | | |
|:---|:---|:---|
| | **As for June 30, 2022** | **As for June 30, 2022** |
| <br>**Significant outstanding accounts receivable** | **Amount** | **%** |
| Distributor A | $295043 | 14.8 |
| Distributor C | 220467 | 11.0 |
| Distributor B | 205975 | 10.3 |

---

---

| | | |
|:---|:---|:---|
| | **As for December 31, 2021** | **As for December 31, 2021** |
| <br>**Significant outstanding accounts receivable** | **Amount** | **%** |
| Distributor A | $302515 | 12.50 |
| Distributor C | 240931 | 10.00 |

---

---

| | | |
|:---|:---|:---|
| | **As for June 30, 2022** | **As for June 30, 2022** |
| <br>**Significant outstanding accounts payable** | **Amount** | **%** |
| Manufacturer E | $39384 | 37.9 |
| Manufacturer G | 30289 | 29.1 |
| Manufacturer D | 16181 | 15.6 |
| Manufacturer A | 12874 | 12.4 |

---

---

| | | |
|:---|:---|:---|
| | **As for December 31, 2021** | **As for December 31, 2021** |
| <br>**Significant outstanding accounts payable** | **Amount** | **%** |
| Manufacturer D | $45906 | 31.40 |
| Manufacturer C | 36984 | 25.30 |
| Manufacturer E | 30397 | 20.80 |
| Manufacturer F | 25017 | 17.10 |

---

**NOTE 19 – RELATED PARTY BALANCES AND TRANSACTIONS**

**Material Transactions with Related Parties**

The relationship and the nature of related party transactions are summarized as follow:

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to Us** |
| Guanzhao Lin | Chief Executive Officer, and Chairman of the Board of Directors |
| Fujian Blue-Touch Products Inc. | An enterprise in which interests in the voting power are owned by close members of Guanzhao Lin's family consisting of (1) Guanlu Lin, who owns approximately 42.86% shares of Fujian Blue-Touch Products Inc., (2) Guanjia Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc., and (3) Guandian Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc. |

---

***Operating lease Right-of-Use assets***

The operating entity's principal executive office is located in Fuzhou City, Fujian Province, China, with an area of approximately 1,000 square meters. The operating entity's warehouse is located in Fuzhou City, Fujian Province, China, with an area of approximately 600 square meters. The operating entity's principal executive office and warehouse are leased from the same party, Fujian Blue-Touch Products Inc., under one lease agreement. Under such lease agreement, the combined monthly rent for the principal executive office and warehouse is RMB19,600 (approximately US$3,040) and the lease term is from January 1, 2019 to December 31, 2025. As of June 30, 2022, the Company has paid RMB823,200 (approximately $122,657) in installments to the lessor.

The operating entity's facility is located in Fuzhou City, Fujian Province, China, with an area of approximately 450 square meters. Such facility is also leased from Fujian Blue-Touch Products Inc. Under the lease agreement, the lease term is from January 1, 2021 to December 31, 2025 and the monthly rent is RMB5,000 (US$776). The lessor granted a waiver of eight months' rent and started collecting monthly rent from the operating entity on September 1, 2021. The rent was waived for a period when the facility was refurbished and the equipment was installed and we believe that such rent waiver is consistent with the real estate customary practice in China. As of December 31, 2021, the Company has paid RMB50,000 (approximately $7,450) in installments to the lessor.

The lessor of these two leases, Fujian Blue-Touch Products Inc., is an enterprise in which a substantial interest in the voting power is owned by a close member of our controlling shareholder's family. Upon the expiration of such lease term, the operating entity is entitled to the right of first refusal to renew the lease agreement upon one month's written notice of such renewal.

***Amounts due from related parties***

Under the lease agreement of the office and warehouse with Fujian Blue-Touch Products Inc., the operating entity paid a deposit in the amount of RMB39, 200 for the leased premises to Fujian Blue-Touch Products Inc., after signing the agreement. As of June 30, 2022 and December 31, 2021, the operating entity has amounts of $5,841, and $6,148, respectively, due from Fujian Blue-Touch Products Inc., after considering the exchange rate fluctuation of $(307) and $140, respectively.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2021** | **Increase** | **Decrease** | **Exchange<br> Rate<br> Difference** | **June 30, <br> 2022** |
| Amounts due from related parties |  |  |  |  |  |
| Fujian Blue-Touch Products Inc. | $6148 | $- | $- | $(307) | $5841 |
| Total amounts due from related parties | $6148 | $- | $- | $(307) | $5841 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2020** | **Increase** | **Decrease** | **Exchange<br> Rate<br> Difference** | **December 31,<br> 2021** |
| Amounts due from related parties |  |  |  |  |  |
| Fujian Blue-Touch Products Inc | $6008 | $- | $- | $140 | $6148 |
| Total amounts due from related parties | $6008 | $- | $- | $140 | $6148 |

---

***Amounts due to related parties***

During the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, the Company obtained loans from its shareholders for daily operation purposes. Details of related party transactions and balances during the six months ended June 30, 2022 and the fiscal years ended December 31, 2021 are as follows:

As of December 31, 2020, the operating entity had the amount of $5,670,585 due to Mr. Guanzhao Lin. During the year ended December 31, 2021, the operating entity obtained a loan in the amount of $1,697,968 for daily operations from Mr. Guanzhao Lin and the operating entity converted amount of $7,403,090 due to Mr. Guanzhao Lin into contributed ownership and, as of December 31, 2021, the operating entity had no amount due to Mr. Guanzhao Lin after considering the exchange rate fluctuation of $34,537.

During the year ended December 31, 2021, Blue Touch obtained interest-free loans from Mr. Guanzhao Lin to cover expenses related to this offering. As of the fiscal year ended December 31, 2021, Blue Touch had an outstanding principal amount of $49,976 due to Mr. Guanzhao Lin. During the six months ended June 30, 2022, Blue Touch obtained interest-free loans of $96,370 from Mr. Guanzhao Lin to cover expenses related to this offering. As of June 30, 2022, Blue Touch had an outstanding principal amount of $144,667 due to Mr. Guanzhao Lin, after considering an exchange rate fluctuation of $(1,679).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2021** | **Borrowed** | **Repaid** | **Exchange<br> Rate<br> Difference** | **June 30, <br> 2022** |
| Amounts due to related parties |  |  |  |  |  |
| Guanzhao Lin | $49976 | $96370 | $- | $(1679) | $144667 |
| Total amounts due to related parties | $49976 | $96370 | $- | $(1679) | $144667 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2020** | **Borrowed** | **Debt to equity** | **Exchange<br> Rate<br> Difference** | **December 31,<br> 2021** |
| Amounts due to related parties |  |  |  |  |  |
| Guanzhao Lin | $5670585 | $1747944 | $(7403090) | $34537 | $49976 |
| Total amounts due to related parties | $5670585 | $1747944 | $(7403090) | $34537 | $49976 |

---

**NOTE 20 – SUBSEQUENT EVENTS**

The Company evaluated all events and transactions that occurred after June 30, 2022 through the date of issuance on March 10, 2023 and there are no significant subsequent events from June 30, 2022 through the date of issuance on March 10, 2023.

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of

Blue-Touch Holdings Group Co., Ltd

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Blue-Touch Holdings Group Co., Ltd ("the Company and subsidiaries"), as of December 31, 2021 and 2020 and the related consolidated statements of operations and other comprehensive income, changes in shareholders' equity and cash flows for the years then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2021 and 2020 and the consolidated results of its operations and its cash flows for each of the years ended December 31, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatements of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provided a reasonable basis for our opinion.

/s/ TPS Thayer, LLC

We have served as the Company's auditor since 2022

Sugar Land, Texas

September 30, 2022, except for Note 2, as to which the date is March 10, 2023

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Balance Sheets**

**As of D** **ecember 31, 2021 and 2020**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $1857732 | $463513 |
| Accounts receivable, net | 2418309 | 1742043 |
| Amounts due from related parties | 6148 | 6008 |
| Inventories, net | 455249 | 253835 |
| Deferred IPO expenses and other current assets | 101408 | 50401 |
| **Total current assets** | 4838846 | 2515800 |
| **Non-current assets** |  |  |
| Property and equipment, net | 806228 | 239108 |
| Intangible assets, net | 113002 | 122801 |
| Operating lease right-of-use assets, net | 153059 | 180032 |
| Deferred income tax assets | 244936 | 494770 |
| **Total non-current assets** | 1317225 | 1036711 |
| **TOTAL ASSETS** | $**6156071** | $**3552511** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $146208 | $239037 |
| Taxes payable | 116408 | 88648 |
| Amounts due to related parties | 49976 | 5670585 |
| Accrued expenses and other current liabilities | 88407 | 58406 |
| Current maturities of long-term loans | 5614 |  |
| Current maturities of lease liabilities | 34931 | 25569 |
| **Total current liabilities** | 441544 | 6082245 |
| Long-term portion of long-term loans | 24857 |  |
| Long-term portion of lease liabilities | 123147 | 154463 |
| **TOTAL LIABILITIES** | 589548 | 6236708 |
| **Commitments and contingencies** |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |
| Ordinary shares, $0.0005 par value, 100,000,000 shares authorized; 12,000,000 shares issued and outstanding as of December 31, 2021 and 2020 | 6000 | 6000 |
| Additional paid-in capital | 7744908 | 341818 |
| Accumulated deficit | (2322717) | (3098239) |
| Accumulated other comprehensive income | 138332 | 66224 |
| **Total equity attributable to Blue-Touch shareholders** | 5566523 | (2684197) |
| **TOTAL SHAREHOLDERS' EQUITY** | 5566523 | (2684197) |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**6156071** | $**3552511** |

---

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

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Operations and Other Comprehensive Income**

**For the Years Ended December 31, 2021, 2020**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Revenues** | $**6655515** | $**3096924** |
| **Cost of revenues** | **(4069866)** | **(1993583)** |
| **Gross profit** | **(2585649)** | **(1103341)** |
| **Operating expenses** |  |  |
| Sales and marketing expenses | (697009) | (387472) |
| General and administrative expenses | (561557) | (412123) |
| Research and development expenses | (294172) | (225930) |
| **Total operating expenses** | **(1552738)** | **(1025525)** |
| **Income from operations** | **1032911** | **77816** |
| **Other income (expense)** |  |  |
| Interest income | 2740 | 2748 |
| Interest expense | (1622) | (639) |
| **Total other income** | **1118** | **2109** |
| **Income before income taxes** | **1034029** | **79925** |
| Income tax expense | (258507) | (30489) |
| **Net income** | $**775522** | $**49436** |
| **Other comprehensive income (loss)** |  |  |
| Foreign currency translation adjustment, net of nil tax | 72108 | (176998) |
| **Total comprehensive income** | $**847630** | $**(127562)** |
| Net income per ordinary share - basic and diluted | $0.0646 | $0.0041 |
| Weighted average number of ordinary shares outstanding—basic and diluted | 12000000 | 12000000 |

---

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

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Changes in Shareholders' Equity**

**For the Years Ended December 31, 2021 and 2020**

**(Amounts in US$, except for number of shares)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of<br> Shares** | **Paid-in <br> capital** | **Additional <br> paid-in capital** | **Accumulated deficit** | **Accumulated<br> other<br> comprehensive<br> income/(loss)** | **Total<br> equity** |
| **Balance at December 31, 2019** | **12000000** | **6000** | **307879** | **(3147675)** | **243222** | **(2590574)** |
| Net income |  |  |  | 49436 |  | 49436 |
| Additional contributions in capital |  |  | 33939 |  |  | 33939 |
| Foreign currency translation adjustment |  |  |  |  | (176998) | (176998) |
| **Balance at December 31, 2020** | **12000000** | **6000** | **341818** | **(3098239)** | **66224** | **(2684197)** |
| Net income |  |  |  | 775522 |  | 775522 |
| Conversion of debt |  |  | 7403090 |  |  | 7403090 |
| Foreign currency translation adjustment | - | - | - | - | 72108 | 72108 |
| **Balance at December 31, 2021** | **12000000** | **6000** | **7744908** | **(2322717)** | **138332** | **5566523** |

---

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

**Blue-Touch Holdings Group Co., Ltd**

**Consolidated Statements of Cash Flows**

**For the Years Ended December 31, 2021 and 2020**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Cashflows from operating activities** |  |  |
| **Net income** | $**775522** | $**49436** |
| **Adjustments to reconcile net income to net cash** |  |  |
| Deferred tax benefit | 258507 | 30489 |
| Depreciation of property and equipment | 118325 | 98818 |
| Amortization of intangible asset | 12532 | 977 |
| Lease expense | 44545 | 34116 |
| **Changes in working capital** |  |  |
| Accounts receivable, net | (676266) | (923896) |
| Inventory | (201414) | (116158) |
| Deferred IPO expenses and other current assets | (1031) | (316) |
| Account payable | (92829) | 127683 |
| Other Taxes payable | 27760 | 52123 |
| Accrued expenses and other current liabilities | 30001 | 16735 |
| Operating lease liability | (39582) | (34116) |
| **Cashflows provided by (used in) operating activities** | **256070** | **(664109)** |
| **Investing Activities** |  |  |
| Purchases of property and equipment | (681180) | (48430) |
| Purchase of intangible assets | - | (123833) |
| **Cashflows (used in) investing activities** | **(681180)** | **(172263)** |
| **Financing Activities** |  |  |
| Increase in paid-in-capital |  | 33939 |
| Proceeds from Related parties | 1697968 | 459777 |
| Proceeds from long-term loan | 32257 |  |
| Repayment of long-term loans | (1786) | - |
| **Cashflows provided by financing activities** | **1728439** | **493716** |
| Effects of currency translation | 90890 | 113899 |
| **Net increase(decrease) in cash and cash equivalents** | **1394219** | **(228757)** |
| Cash and cash equivalents at beginning of year | 463513 | 692270 |
| **Cash and cash equivalents at end of year** | $**1857732** | $**463513** |
| **SUPPLEMENTAL DISCLOSURES** |  |  |
| Interest paid | $1623 | $639 |
| **NON-CASH TRANSACTIONS** |  |  |
| Addition of ROU |  | 31851 |
| Amounts due to related party to equity | 7403090 |  |
| Deferred IPO expenses | 49976 |  |
| Reclassification of long-term loan within one-year | 5614 |  |

---

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

**Blue-Touch Holdings Group Co., Ltd** 

**Notes to the Consolidated Financial Statements**

**As of December 31, 2021 and 2020 and for the years Ended December 31, 2021 and 2020**

**NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS**

 **Blue-Touch Holdings Group Co., Ltd** ("Blue-Touch") was incorporated as an exempted holding company under the laws of the Cayman Islands on September 27, 2021. Blue-Touch does not conduct any substantive operations on its own, but instead conducts its business operations through its a wholly-owned subsidiary in PRC and the subsidiary of it. Blue-Touch and its subsidiaries are hereinafter collectively referred to as "the Company." Blue-Touch and its subsidiaries are principally engaged in designing, developing specifications, and selling of baby skincare products and toiletries as well as household cleaning products under the brand "Blue-Touch" in the PRC. Blue-Touch and its subsidiaries does not have manufacturing facilities and relies on third-party manufacturers to produce products. As described below, Blue-Touch, through a series of transactions which is accounted for as a reorganization of entities under common control (the "Reorganization"), became the ultimate parent entity of its subsidiaries. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented.

**Reorganization**

A Reorganization of the Company's legal structure was completed on January 10, 2022. The Reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of Fujian Blue-Touch Holdings Group Co., Ltd. (the "WFOE") as a wholly-owned subsidiary in the PRC; (iii) Fujian Blue-Touch Technology Co., Ltd. (the operating entity) was incorporated on September 24, 2014 and on January 10, 2022, the WFOE entered into securities purchase agreements with the operating entity's then shareholders. Accordingly, the WFOE acquired all of the shares of the operating entity, and the operating entity became a wholly-owned subsidiary of the WFOE.

Currently, Blue-Touch holds 100% equity interests in the PRC subsidiaries, and the Company does not use a variable interest entity structure. The following diagram illustrates the Company's corporate structure as of the date of this report.

![](tm2226747d2_f1asp2img001.jpg)

Blue-Touch is a holding company and had not commenced operations until the Reorganization was complete. At the Reorganization, Blue-Touch issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in the operating entity from the former shareholders to the WFOE.

During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the control of the PRC shareholders). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control, and thus, the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and, in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.

Blue-Touch's major consolidated subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Date of <br> Organization** | **Place of<br> Organization** | **% of <br> Ownership** |
|  Fujian Blue-Touch Holdings Group Co., Ltd. | December 20, 2021 | PRC | 100% |
|  Fujian Blue-Touch Technology Co., Ltd. | September 24, 2014 | PRC | 100% |

---

The WFOE, currently with no business operations, was incorporated as a limited company under the laws of the PRC on December 20, 2021 and is a holding company of 100% of the equity interests in the operating entity.

The operating entity was incorporated as a limited company under the laws of the PRC on September 24, 2014. The operating entity is principally engaged in the designing, developing, and selling baby skincare products and toiletries as well as household cleaning products under the brand "Blue-Touch" in the PRC.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

**Basis of accounting**

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the financial statements of Blue-Touch and its subsidiaries, for which the Company is the ultimate primary beneficiary.

Subsidiaries are those entities in which Blue-Touch, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

All significant transactions and balances among Blue-Touch and its subsidiaries have been eliminated upon consolidation.

**Use of estimates**

In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, deferred IPO expenses, and other receivables, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and provision necessary for contingent liabilities. Actual results could differ from those estimates.

**Cash and cash equivalents**

Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other comparable programs.

**Accounts receivable**

Accounts receivable are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers' credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2021 and 2020, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts was $0 and $0, respectively.

**Inventories**

Inventories are primarily household cleaning products such as laundry detergent, multi-functional cleaner, disinfectant, and baby skincare products and toiletries, such as camellia oil moisturizer, camellia oil lotion, shampoo, etc. Inventories are stated at the lower of cost or net realizable value. The cost value of inventories is determined using the weighted average method based on procurement costs. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress. The Company uses the weighted average cost method.

**Property and equipment, net**

Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expenses as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets, as follows:

---

| | |
|:---|:---|
|  | **Useful<br> Lives** |
| Office Equipment | 5 Years |
| Electronic Equipment | 3 Years |
| Motor Vehicles | 4 Years |
| Furniture and fixtures | 10 Years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.

**Intangible assets, net**

During the year ended December 31, 2020, we purchased and registered a patent on camellia oil extraction and processing technology. This patent is initially recorded at cost value and amortized on a straight-line basis over the estimated economic useful life of ten years. The Company reviews the carrying values of intangible assets whenever events and circumstances, such as a significant decline in the asset's market value, obsolescence or physical damage affecting the asset during monthly count or receipt quality check, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If any circumstance above happens, then management would evaluate if the estimated cash flows from the use of the asset and its eventual disposition are below the asset's carrying value, then the asset is deemed to be impaired and written down to its fair value. For the years ended December 31 2021 and 2020 the Company recorded no impairment losses for intangible assets.

**Leases**

Leases are classified at each lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria is fulfilled, the lease shall be classified as an operating lease.

For the lessee, a lease is recognized as a right-of-use asset with a corresponding liability at the lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at the lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before the lease commencement. The right-of-use asset itself is amortized on a straight-line basis, unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term.

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842, effective as of the beginning of the first period presented, on January 1, 2020, by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had an immaterial impact on the Company's financial position, with no material impact on the results of operations and cash flows.

The Company's accounting policy is to recognize lease payments as rental expense for short-term leases less than 12 months. During the fiscal years ended December 31, 2021 and 2020, the Company did not enter into any short-term leases and the Company recognized no expense pertaining to short-term leases.

**Impairment of Long-lived Assets**

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed to be not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset's carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charge equal to the excess of the asset's carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique.

**Fair Value of Financial Instruments**

The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest.

ASC 820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of 31, 2021 and 2020 owing to their short-term or immediate nature.

**Revenue Recognition**

The Company adopted Accounting Standards Codification No. 606, *Revenue from Contracts with Customers* (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in the Company's consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of the Company.

The following five steps are applied to achieve that core principle by us in determination of revenue recognition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Step
 1: Identify the contract(s) with the customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Step
 2: Identify the performance obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Step
 3: Determine the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Step
 4: Allocate the transaction price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Step
 5: Recognize revenue when or as the Company satisfies a performance obligation.

The Company derives revenue from the sales of household cleaning products, including fabric softener, laundry detergent, multi-functional cleaner and disinfectant, and baby skincare products and toiletries, including camellia oil moisturizer, camellia oil lotion and shampoo. The Company relies on third-party distributors to distribute and sell the products in the PRC. The third-party distributors directly sell the products to the offline distributors who generally sell the products to the end customer through their own distribution networks. The Company considers distributors' purchase orders to be the contracts with customers. As part of its consideration of the contract, the Company evaluates certain factors including the customer's ability to pay. For each contract, the Company has the obligation to transfer products and deliver the products to the place designated by the customer within the agreed time, each of which is distinct, and has the right to collect the payment within the agreed period after the distributors have control of the goods. The payment terms for the goods to be transferred can be identified in the contracts. The Company is a principal for this performance obligation as the Company is ultimately responsible for the fulfillment and acceptability of products, controlling the nature, timing, extent of the products sold, undertakes the inventory risk before the goods transferred to the customer and has discretion in establishing the price for the products. The transaction prices in the orders are agreed upon and fixed once the quantity of goods is confirmed at the inception of the order, and there are no variable consideration clauses such as discounts, incentives and penalties in the sales contract. The Company evaluated the historical sales return and the impact of sales return is immaterial. Accordingly, the Company did not accrue any sales return allowance. Due to the nature of the products sold by the Company, there are no warranties provided by the Company. There is only one performance obligation in the contract and there is no need for the allocation of transaction price. The Company is responsible for delivering the products from its warehouse to its distributors' storage facilities after accepting the finished products from the third-party manufacturers. The sales predominantly contain a single performance obligation and the revenue was recognized upon fulfillment of the performance obligation, after the distributors have control of the goods, typically at delivery, which is at a point of time.

The Company's revenues are subject to value added tax ("VAT"). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606.

**Cost of sales**

The Company does not conduct manufacturing activities and enteres into annual contracts with the third-party manufacturers who process and produce the products for the Company. Cost of sales primarily consists of procurement cost of inventories and costs to distribute products to customers, inbound freight costs, warehousing costs and other activities.

**Sales and marketing expenses**

Sales and marketing expenses are primarily comprised of certain salaries and sales commissions of employees in the marketing department, transportation fees, fees associated with trade shows and similar exhibitions, advertisement expense and other miscellaneous items. During the years ended December 31, 2021 and 2020, the Company recognized selling and marketing expense of $697,009 and $387,472 respectively. The Company expenses the costs of producing advertisements and costs of delivering advertisements in the period in which the advertising space or airtime is used.

**General and administrative expenses**

General and administrative expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department within the Company, such as manufacturing, production, or sales. General and administrative expenses are primarily comprised of rental fees, utilities, insurance, legal fees, certain salaries and operational overhead expenses that impact the entire business. During the years ended December 31, 2021 and 2020, the Company recognized general and administrative expenses of $561,557 and $412,123 respectively.

**Research and development expenses**

Research and development expenses are amounts that the Company spent to develop new products and services (these expenses do not meet the capitalization criteria) each year. The Company generally pursues product development through internal research and development as well as through collaborations or other arrangements with third parties. During the years ended December 31, 2021 and 2020, the Company recognized research and development expenses of $294,172 and $225,930, respectively.

**Income taxes**

Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax asset will not be realized.

**Ordinary shares**

The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders' equity. Cancellation of treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital and retained earnings, as applicable. An excess of purchase price over par value is allocated to additional paid-in capital first with any remaining excess charged entirely to retained earnings.

**Related parties**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

**Earnings per share**

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no potentially dilutive ordinary shares during the fiscal years ended December 31, 2021 and 2020.

**Comprehensive income/ (loss)**

ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the fiscal years ended December 31, 2021 and 2020 foreign currency translation gain (loss) adjustments of $72,108 and $(176,998) respectively, were recognized as a component of accumulated other comprehensive income (loss).

**Foreign currency translation**

The Company's principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments are included as a separate component of accumulated other comprehensive income (loss).

The value of RMB against the U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions. Any significant revaluation of RMB may materially affect the Company's consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31, <br> 2020** |
| Year-end spot rate | US$1= 6.3757 RMB | US$1=6.5249 RMB |
| Average rate | US$1= 6.4474 RMB | US$1=6.8941 RMB |

---

**Segment reporting**

Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company's most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company's various lines of business and geographical locations.

Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment.

**Commitments and contingencies**

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of December 31, 2021 and 2020.

**Concentration of risks**

*Exchange rate risks*

The Company's Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of December 31, 2021 and 2020, the RMB denominated cash and cash equivalents amounted to $1,857,732 and $463,513 respectively.

*Currency convertibility risks*

Substantially all of the Company's operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People's Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People's Bank of China. Approval of foreign currency payments by the People's Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers' invoices, shipping documents and signed contracts.

*Concentration of credit risks*

Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company's maximum exposure. The Company places its cash and cash equivalents in financial institutions in China.

**Risks and uncertainties**

The operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, including its organization and structure disclosed in Note 1, this may not be indicative of future results.

**Recent accounting pronouncements**

The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. Early adoption is permitted. Although the Company adopted the guidance on January 1, 2020, there were no material impacts on the consolidated financial statements for the Company's two fiscal years ended on December 31, 2021 and 2020, since the Company did not have any assets held at amortized cost basis or available-for-sale debt securities, and the Company did not identify any past events, current economic conditions and reasonable forecasts of future economic conditions that would impair the collectability of accounts receivable, as of December 31, 2021 and 2020.

In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118," which amends the FASB ASC and XBRL Taxonomy based on the Tax Cuts and Jobs Act, or the Act, that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 that was released by the SEC. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company adopted the amendment on January 1, 2020 by using the modified retrospective method. The adoption had no material impact on the Company's financial position, the results of operations and statement of cash flows for the year ended December 31, 2021 and 2020.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The amendments in these ASUs are effective for the Company's fiscal years, and interim periods within those fiscal years beginning January 1, 2020. The adoption had no material impact on the Company's financial position, the results of operations and statement of cash flows for the year ended December 31, 2021 and 2020.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this ASU modify the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company adopted ASU 2018-13 for the fiscal year ended December 31, 2021 and 2020, and the adoption of this update did not have a material impact on the Company's consolidated financial position, results of operations and cash flows.

The Company does not believe other recently issued but not yet effective accounting statements, if adopted, would have a material effect on the Company's consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows.

**NOTE 3 – CASH AND CASH EQUIVALENTS**

Cash and cash equivalents consisted of the following as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Deposit in banks | $1857732 | $463513 |
| Total cash and cash equivalents | $1857732 | $463513 |

---

As of December 31, 2021 and 2020, the Company had a total of $1,857,732 and $463,513 in cash and cash equivalents, respectively, which are wholly current deposits and held inside China (Mainland). Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other comparable programs.

**NOTE 4 – ACCOUNTS RECEIVABLE, NET**

Accounts receivable consisted of the following as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Accounts receivable, gross | $2418309 | $1742043 |
| Less: allowance for doubtful accounts | - | - |
| Accounts receivable, net | $2418309 | $1742043 |

---

The Company recorded no allowance for doubtful accounts as of December 31, 2021 and 2020. The Company gives its customers a payment period of 90 days and continually assesses the recoverability of uncollected accounts receivable. As of December 31, 2021 and 2020, the balances of the Company's accounts receivable were all due within 90 days. Management believes the balances of accounts receivable will be collected in full.

**NOTE 5– INVENTORIES**

Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress.

Inventories are primarily household chemical products and baby skincare products and toiletries including fabric softener, laundry detergent, multi-functional cleaner, disinfectant, camellia oil moisturizer, camellia oil lotion, shampoo, etc. As the Company does not conduct manufacturing activities and products are all manufactured by the third-parties, inventories are wholly finished goods and cost of inventories is determined using the weighted average method based on procurement costs.

Inventories as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Finished goods, gross | $455249 | $253835 |
| Less: Provision for diminution in value of inventories | - | - |
| Total inventories, net | $455249 | $253835 |

---

For the years ended December 31, 2021 and 2020, the Company recorded no impairment provision of inventories

**NOTE 6 –DEFERRED IPO EXPENSES AND OTHER CURRENT ASSETS**

Deferred IPO expenses and other current assets as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Deferred IPO expenses | $49976 | $- |
| Other receivables | 51432 | 50401 |
| Total Deferred IPO expenses and other current assets | $101408 | $50401 |

---

Deferred IPO expenses consists of consulting fees paid to underwriters, lawyers and auditors and other fees related to the listing, which totaled $49,976 as of December 31, 2021.

**NOTE 7 – PROPERTY AND EQUIPMENT, NET**

Property and equipment consisted of the following as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Motor Vehicles | $556990 | $471885 |
| Electronic Equipment | 68498 | 66932 |
| Office Equipment | 30000 | 18463 |
| Furniture and fixtures | 596013 |  |
| Total Property and equipment, at cost | 1251501 | 557280 |
| Less: accumulated depreciation | (445273) | (318172) |
| Property and equipment, net | $806228 | $239108 |

---

As of December 31, 2021 and 2020, there was not any pledged property and equipment. The Company recorded depreciation expense of $118,325 and $98,818 during the fiscal years ended December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, the Company purchased new property and equipment of $681,180 and $48,430, respectively. For the years ended December 31, 2021 and 2020, the Company recorded no impairment losses for property and equipment. For the years ended December 31, 2021 and 2020 the Company recorded no disposal of property and equipment.

**NOTE 8 – INTANGIBLE ASSETS, NET**

Intangible assets consisted of the following as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Patent | $126731 | $123833 |
| Less: accumulated amortization | (13729) | (1032) |
| Intangible assets, net | $113002 | $122801 |

---

The Company purchased and registered a patent on camellia oil extraction and processing technology used for products producing purpose during the year ended December 31, 2020. As of December 31, 2021 and 2020, there was no any pledged intangible assets to secure bank loans. Patent is initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of ten years. The Company recorded amortization expense of $12,532 and $977 during the fiscal years ended December 31, 2021 and 2020 respectively. For the years ended December 31 2021 and 2020 the Company recorded no impairment losses for intangible assets.

Estimated future Intangible amortization expense is as follows as of December 31, 2021:

---

| | |
|:---|:---|
|  | **As of December 31, 2021** |
| 2022 | $12532 |
| 2023 | 12532 |
| 2024 | 12532 |
| 2025 | 12532 |
| 2026 | 12532 |
| Beyond 2026 | 50342 |

---

**NOTE 9 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET**

Operating lease right -of-use assets, net was as follows as of December 31, 2021 and 2020:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2020** | **Increase/<br> (Decrease)** | **Exchange Rate<br> Translation** | **As of<br> December 31,<br> 2021** |
| Office and Warehouse | $192788 | $— | $4512 | $197300 |
| Facility | 31851 |  | 745 | 32596 |
| Total right-of-use assets, at cost | 224639 | - | 5257 | 229896 |
| Less: accumulated amortization | (44607) | (30840) | (1390) | (76837) |
| Right-of-use assets, net | $180032 | $(30840) | $3867 | $153059 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2019** | **Increase/<br> (Decrease)** | **Exchange Rate<br> Translation** | **As of<br> December 31,<br> 2020** |
| Office and Warehouse | $180316 | $- | $12472 | $192788 |
| Facility |  | 31851 |  | 31851 |
| Total right-of-use assets, at cost | 180316 | 31851 | 12472 | 224639 |
| Less: accumulated amortization | (20030) | (21949) | (2628) | (44607) |
| Right-of-use assets, net | $160286 | $9902 | $9844 | $180032 |

---

The Company recognized amortization for the Office and Warehouse Operating Lease Right-of-Use Assets of $25,415 and $21,949 as of December 31, 2021 and 2020. The Company recognized amortization for the Facility Operating Lease Right-of-Use Assets of $5,425 and $0 as of December 31, 2021 and 2020.

**NOTE 10 – ACCOUNTS PAYABLE**

Accounts payable was as follows as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Accounts payable to the suppliers | $146208 | $239037 |
| Total accounts payable | $146208 | $239037 |

---

**NOTE 11 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Employment benefits payable was as follows as of December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Salary and welfare benefits payable | $88407 | $58406 |
| Total salary and welfare benefits payable | $88407 | $58406 |

---

**NOTE 12 – OPERATING LEASE LIABILITIES**

Operating lease liabilities as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Operating lease liabilities - Office and Warehouse | $125948 | $148182 |
| Operating lease liabilities - Facility | 32130 | 31851 |
| Total operating lease liabilities | $158078 | $180033 |

---

Analyzed for reporting purposes as:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Long-term portion of operating lease liabilities | $123147 | $154463 |
| Current portion of operating lease liabilities | 34931 | 25569 |
| Total operating lease liabilities | $158078 | $180032 |

---

The operating lease liabilities is the net present value of the remaining lease payments as of December 31, 2021 and 2020.

The incremental interest rate used for the Office and Warehouse operating leases and Facility operating leases was 7.99%. The weighted average remaining lease terms for operating leases was 4.00 years. For the years ended December 31, 2021 and 2020, the operating lease expense were $44,545 and $34,116, respectively.

\* The lease agreement of Office and Warehouse was entered into on December 26, 2018 and will expire on December 31, 2025. The installments were paid every month. The remaining payment is discounted using an incremental interest rate at 7.99%. As of December 31, 2021, the Company has paid RMB705,600 (approximately $110,670) in installments to the lessor.

\*\* The lease agreement of Facility was entered on December 30, 2020, bears interest at about 7.9900% and will expire on December 31, 2025. The installments were paid monthly with 9-month rent free period. The remaining payment is discounted using an incremental interest rate at 7.99%. As of December 31, 2021, the Company has paid RMB20,000 (approximately $3,137) for the first-year installment.

Maturity analysis of operating lease liabilities as of December 31, 2021 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **As of December 31, 2021** | **Office and <br> Warehouse** | **Facility** | **Total<br> undiscounted<br> cash flows** |
| Rent term | 2019/1/1-2025/12/31 | 2021/1/1-2025/12/31 |  |
| remaining lease terms (years) | 4.00 | 4.00 |  |
| Rate | 7.99% | 7.99% |  |
| Jan 2022 to December 2022 | $36890 | $9411 | $46301 |
| Jan 2023 to December 2023 | 36890 | 9411 | 46301 |
| Jan 2024 to December 2024 | 36890 | 9411 | 46301 |
| Jan 2025 to December 2025 | 36890 | 9411 | 46301 |
| Thereafter | - | - | - |
| Total undiscounted cash flows | $147560 | $37644 | $185204 |
| Total financing lease liabilities | 125948 | 32130 | 158078 |
| Difference between undiscounted cash flows and discounted cash flows | 21612 | 5514 | 27126 |

---

**NOTE 13 –LONG-TERM LOANS**

Long-term loans as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Current maturities of long-term loans | $5614 | $- |
| Long-term portion of long-term loans | 24857 |  |
| Total long-term loans | $30471 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

On August 4, 2021, the operating entity entered into a credit agreement with Mercedes-Benz Automobile Finance Co., Ltd., pursuant to which the operating entity borrowed a principal amount of RMB205,660 ($32,257) at an annual interest rate of 7.99% with a loan term of 60 months. The maturity date of such loan is on August 10, 2026.

**NOTE 14 – TAXES**

The Company is registered in the Cayman Islands. The Company generated substantially all of its income/ (loss) from its PRC operations for the years ended December 31, 2021 and 2020.

**Cayman Islands**

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

**PRC**

*Income Tax*

On March 16, 2007, the National People's Congress of PRC enacted an Enterprise Income Tax Law ("EIT Law"), under which Foreign Investment Enterprises ("FIEs") and domestic companies would be subject to enterprise income tax ("EIT") at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. 25% tax rates apply to all the PRC operating subsidiaries in the Company.

The provision for income tax for the years ended December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Current income tax provision | $- | $- |
| Deferred income tax provision | 258507 | 30489 |
| Total | $258507 | $30489 |

---

The following table sets forth reconciliation between the statutory EIT rate and the effective tax for the years ended December 31, 2021 and 2020, respectively:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Provision for income taxes at statutory tax rate in the PRC | $258092 | $30399 |
| Effect of income for which no income tax is chargeable |  |  |
| Effect of expense for which no income tax is deductible | 415 | 90 |
| Income tax expenses | $258507 | $30489 |
| Effective tax rate | 25.00% | 38.15% |

---

The significant components of deferred tax assets as of December 31, 2021 and 2020 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Deferred tax assets-carried forward loss | $244936 | $494770 |
| Total | $244936 | $494770 |

---

There was no valuation allowance for the deferred tax assets as of December 31, 2021 and 2020. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax assets are deductible, and the scheduled reversal of deferred tax liabilities, the Company believes it is more likely than not the company will realize the benefits of those deductible differences as of December 31, 2021 and 2020.

*Value Added Tax ("VAT")*

Business tax changed to VAT in China since May 1, 2016. The Company's revenue of selling household chemical products and skin care products is subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019.

*Taxes payable*

The Company's taxes payable as of December 31, 2021 and 2020, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Income tax payable | $- | $- |
| VAT payable | 104639 | 79493 |
| Other tax payables | 11769 | 9155 |
| Total | $116408 | $88648 |

---

**NOTE 15-EQUITY**

**Ordinary Shares and Additional Paid In Capital**

At the reorganization event described in Note 1, the Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in the operating entity from the former shareholders to the WFOE.

Prior to the reorganization, the operating entity had $7,700,908 and $297,818 in contributed ownership as of December 31, 2021 and 2020, respectively.

During the years ended December 31, 2021, the operating entity converted the amount of $7,403,090 due to its shareholders, Mr Guanzhao Lin, into equity. The amounts of $7,403,090 due to Mr. Guanzhao Lin was initially recorded as debt of the operating entity and then converted to paid in capital of the operating entity During the years ended December 31, 2020, the operating entity received capital contributions of $33,939 from its shareholders and such amount was recorded as paid in capital of the operating entity. The operating entity's paid in capitals were adjusted to additional paid in capital in the consolidated statements through the business combination under common control and thus, during the years ended December 31, 2021 and 2020, the Company's additional paid-in capital increased by $7,403,090 and $33,939, respectively, at consolidated level.

The reorganization has been accounted for at historical cost and prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company.

**Statutory Reserve**

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors of each PRC subsidiary. As of December 31, 2021 and 2020, no restricted amounts of retained earnings or net income as no net income after taxation was allocated to the statutory reserve, due to the cumulative prior years' losses.

**Restricted Net Assets**

Under PRC laws, rule and regulations, each of our subsidiaries incorporated in China is prohibited from distributing their statutory capital and required to set aside at least 10% of its after-tax profits each year, after making up for previous years' accumulated losses, if any, to fund certain statutory reserves, until the aggregate amount of such fund reaches 50% of its registered capital. As a result of these laws, rules and regulations, our subsidiaries incorporated in China are restricted in their ability to transfer a portion of their respective net assets to their shareholders as dividends. As of December 31, 2021 and December 31, 2020, the net asset restricted amounts were $7,750,908 and $347,818, respectively, as amount of $7,750,908 and $347,818 ordinary shares and additional paid in capital were restricted and no amount of retained earnings or net income were restricted as no net income after taxation was allocated to the statutory reserve, due to the cumulative prior years' losses.

**Dividends**

Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP. The Company's ability to pay dividends is primarily from cash received from its operating activities in PRC. For the years ended December 31, 2021 and 2020, there was no dividend declared by the Company.

**NOTE 16 – DISAGGREGATION REVENUE**

The following table presents revenue by major product categories for the fiscal years ended December 31, 2021 and 2020, respectively:

---

| | | |
|:---|:---|:---|
| **Product Category** | **December 31,<br> 2021** | **December 31,<br> 2020** |
| Baby skincare products and toiletries | $3292695 | $950232 |
| Household cleaning products | 3362820 | 2146692 |
| Total | $**6655515** | $**3096924** |

---

**NOTE 17 – SEGMENT INFORMATION**

ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments. The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. Because the Company's operating facilities and long-lived assets are all substantially located in the PRC, and the Company's revenue are all substantially generated in the PRC, although the Company sells its products across different geographic regions, based on management's assessment, the Company has determined that it has only one operating segment as defined by ASC 280.

**NOTE 18 – CUSTOMER AND SUPPLIER CONCENTRATION**

Significant customers and suppliers are those that account for greater than 10% of the Company's revenues and purchase.

The Company's sales are made to customers that are located in China. For the years ended December 31, 2021 and 2020, the individual customers or suppliers that accounted for more than 10% of the Company's total revenues or purchases are as follows:

---

| | | |
|:---|:---|:---|
| **Significant customers** | **As for December 31, 2021** | **As for December 31, 2021** |
|  | **Amount** | **%** |
| Distributor A | $973558 | 14.60 |

---

---

| | | |
|:---|:---|:---|
| **Significant customers** | **As for December 31, 2020** | **As for December 31, 2020** |
|  | **Amount** | **%** |
| Distributor A | $502822 | 16.20 |
| Distributor B | 355858 | 11.50 |
| Distributor C | 320215 | 10.30 |

---

---

| | | |
|:---|:---|:---|
| **Significant suppliers** | **As for December 31, 2021** | **As for December 31, 2021** |
|  | **Amount** | **%** |
| Manufacturer B | $1221488 | 28.70 |
| Manufacturer D | 1133795 | 26.60 |
| Manufacturer A | 962627 | 22.60 |
| Manufacturer C | 610408 | 14.30 |

---

---

| | | |
|:---|:---|:---|
| **Significant suppliers** | **As for December 31, 2020** | **As for December 31, 2020** |
|  | **Amount** | **%** |
| Manufacturer D | $743505 | 35.50 |
| Manufacturer A | 582411 | 27.80 |
| Manufacturer B | 369915 | 17.70 |
| Manufacturer C | 219814 | 10.50 |

---

As of December 31, 2021 and 2020, the individual customers or suppliers that accounted for 10% or more of the total outstanding accounts receivable or accounts payable balances are as follows:

---

| | | |
|:---|:---|:---|
| **Significant outstanding accounts receivable** | **As for December 31, 2021** | **As for December 31, 2021** |
|  | **Amount** | **%** |
| Distributor A | $302515 | 12.50 |
| Distributor C | 240931 | 10.00 |

---

---

| | | |
|:---|:---|:---|
| **Significant outstanding accounts receivable** | **As for December 31, 2020** | **As for December 31, 2020** |
|  | **Amount** | **%** |
| Distributor A | $274275 | 15.70 |
| Distributor B | 191978 | 11.00 |
| Distributor C | 187615 | 10.80 |
| Distributor D | 181420 | 10.40 |

---

---

| | | |
|:---|:---|:---|
| **Significant outstanding accounts payable** | **As for December 31, 2021** | **As for December 31, 2021** |
|  | **Amount** | **%** |
| Manufacturer D | $45906 | 31.40 |
| Manufacturer C | 36984 | 25.30 |
| Manufacturer E | 30397 | 20.80 |
| Manufacturer F | 25017 | 17.10 |

---

---

| | | |
|:---|:---|:---|
| **Significant outstanding accounts payable** | **As for December 31, 2020** | **As for December 31, 2020** |
|  | **Amount** | **%** |
| Manufacturer D | $57288 | 24.00 |
| Manufacturer B | 50032 | 20.90 |
| Manufacturer C | 45941 | 19.20 |
| Manufacturer A | 45242 | 18.90 |
| Manufacturer E | 25866 | 10.80 |

---

**NOTE 19 – RELATED PARTY BALANCES AND TRANSACTIONS**

**Material Transactions with Related Parties**

The relationship and the nature of related party transactions are summarized as follow:

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to Us** |
| Guanzhao Lin | Chief Executive Officer, and Chairman of the Board of Directors |
| Fujian Blue-Touch Products Inc. | an enterprise in which interests in the voting power are owned by close members of Guanzhao Lin's family, consisting of (1) Guanlu Lin, who owns approximately 42.86% shares of Fujian Blue-Touch Products Inc., (2) Guanjia Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc., and (3) Guandian Lin, who owns approximately 28.57% shares of Fujian Blue-Touch Products Inc.  |

---

 ****

***Operating lease Right-of-Use assets***

The operating entity's principal executive office is located in Fuzhou City, Fujian Province, China, with an area of approximately 1,000 square meters. The operating entity's warehouse is located in Fuzhou City, Fujian Province, China, with an area of approximately 600 square meters. The operating entity's principal executive office and warehouse are leased from the same related party, Fujian Blue-Touch Products Inc., under one lease agreement. Under such lease agreement, the combined monthly rent for the principal executive office and warehouse is RMB19,600 (approximately US$3,040) and the lease term is from January 1, 2019 to December 31, 2025. As of December 31, 2021, the Company has paid RMB705,600 (approximately $110,670) in rental installments to the lessor.

The operating entity's facility is located in Fuzhou City, Fujian Province, China, with an area of approximately 450 square meters. Such facility is also leased from Fujian Blue-Touch Products Inc. Under the lease agreement, the lease term is from January 1, 2021 to December 31, 2025 and the monthly rent is RMB5,000 (US$776). The lessor granted a waiver of eight months' rent and started collecting monthly rent from the operating entity on September 1, 2021. The rent was waived for a period when the facility was refurbished and the equipment was installed and the Company believe that such rent waiver is consistent with the real estate customary practice in China. As of December 31, 2021, the Company has paid RMB20,000 (approximately $3,137) in rental installments to the lessor.

The lessor of these two leases, Fujian Blue-Touch Products Inc., is an enterprise in which a substantial interest in the voting power is owned by a close member of our controlling shareholder's family. Upon the expiration of such lease term, the operating entity is entitled to the right of first refusal to renew the lease agreement upon one month's written notice of such renewal.

***Amounts due from related parties***

Under the lease agreement of the office and warehouse with Fujian Blue-Touch Products Inc., the operating entity paid a deposit in the amount of RMB39, 200 for the leased premises to Fujian Blue-Touch Products Inc., after signing the agreement. As of December 31, 2021 and 2020, the operating entity has amounts of $6,008 and $6,148, respectively, due from Fujian Blue-Touch Products Inc., after considering the exchange rate fluctuation of $389 and $140, respectively.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December<br> 31, 2019** | **Increase** | **Decrease** | **Exchange<br> Rate<br> Difference** | **December<br> 31, 2020** |
| Amounts due from related parties |  |  |  |  |  |
| Fujian Blue-Touch Products Inc. | $5619 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $389 | $6008 |
| Total amounts due from related parties | $5619 | $- | $- | $389 | $6008 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December<br> 31, 2020** | **Increase** | **Decrease** | **Exchange<br> Rate<br> Difference** | **December<br> 31, 2021** |
| Amounts due from related parties |  |  |  |  |  |
| Fujian Blue-Touch Products Inc | $6008 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $140 | $6148 |
| Total amounts due from related parties | $6008 | $- | $- | $140 | $6148 |

---

***Amounts due to related parties***

During the fiscal years ended December 31, 2021 and 2020, the Company obtained loans from its shareholders for daily operation purposes. Details of related party transactions and balances during the years ended December 31, 2021 and 2020 are as follows:

During the year ended December 31, 2020, the operating entity obtained an interest-free loan in the amount of $459,777 for daily operations from one of its shareholders, Mr. Guanzhao Lin. As of December 31, 2020, the operating entity had the amount of $5,670,585 due to Mr. Guanzhao Lin, after considering the exchange rate fluctuation of $337,095. During the year ended December 31, 2021, the operating entity obtained a loan in the amount of $1,697,968 for daily operations from Mr. Guanzhao Lin and the operating entity converted the amount of $7,403,090 due to Mr. Guanzhao Lin into contributed ownership and, as of December 31, 2021, the operating entity had no amount due to Mr. Guanzhao Lin towards this loan ,after considering the exchange rate fluctuation of $34,537.

During the year ended December 31, 2021, Blue-Touch obtained interest-free loans from Mr. Guanzhao Lin to cover expenses related to this offering. As of the fiscal year ended December 31, 2021, Blue-Touch had the outstanding principal amount of $49,976 due to Mr. Guanzhao Lin.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December <br> 31, 2019** | **Borrowed** | **Repaid** | **Exchange<br> Rate<br> Difference** | **December <br> 31, 2020** |
| Amounts due to related parties |  |  |  |  |  |
| Guanzhao Lin | $4873713 | $459777 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $337095 | $5670585 |
| Total amounts due to related parties | $4873713 | $459777 | $- | $337095 | $5670585 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December <br> 31, 2020** | **Borrowed** | **Debt to equity** | **Exchange<br> Rate<br> Difference** | **December <br> 31, 2021** |
| Amounts due to related parties |  |  |  |  |  |
| Guanzhao Lin | $5670585 | $1747944 | $(7403090) | $34537 | $49976 |
| Total amounts due to related parties | $5670585 | $1747944 | $(7403090) | $34537 | $49976 |

---

**NOTE 20 – SUBSEQUENT EVENTS**

On September 6, 2022, Blue-Touch divided its 50,000 ordinary shares into 100,000,000 ordinary shares. The authorized ordinary shares became 100,000,000 shares and the par value changed from US$1 to US$0.0005. On the same day, the existing shareholders surrendered a total of 88,000,000 ordinary shares to Blue-Touch and Blue-Touch cancelled those 88,000,000 ordinary shares after completion of the share subdivision. As a result, Blue-Touch has 12,000,000 ordinary shares issued and outstanding as of the date of the prospectus. Accordingly, all share and per share information has been restated to retroactively show the effect of this recapitalization. There are no other significant subsequent events from December 31, 2021 through the date of issuance on March 10, 2023.

**NOTE 21 – CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY**

The following is the condensed financial information of the Company on a parent company only basis.

**Blue-Touch Holdings Group Co., Ltd**

**Condensed Balance Sheets**

**As of December 31, 2021 and 2020**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
| **ASSETS** |  |  |
| Cash and cash equivalents | $- | $- |
| Deferred IPO expenses and other current assets | 99976 | 50000 |
| Investment in subsidiaries | 5516523 | (2734197) |
| **Total assets** | $5616499 | $(2684197) |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Amounts due to related party | 49976 | - |
| **Total liabilities** | $49976 | $- |
| **SHAREHOLDERS' EQUITY** |  |  |
| Ordinary shares, $0.0005 par value, 100,000,000 shares authorized; 12,000,000 shares issued and outstanding as of December 31, 2021 and 2020 | 6000 | 6000 |
| Additional paid-in capital | 7744908 | 341818 |
| Retained earnings | (2322717) | (3098239) |
| Accumulated other comprehensive loss | 138332 | 66224 |
| **TOTAL SHAREHOLDERS' EQUITY** | 5566523 | (2684197) |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $5616499 | $(2684197) |

---

**Blue-Touch Holdings Group Co., Ltd**

**Condensed Statements of Operations and Other Comprehensive Income**

**For the Years Ended December 31, 2021 and 2020**

**(Amounts in US$, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Share of income of subsidiaries | $775522 | $49436 |
| Net income | $775522 | $49436 |
| Other comprehensive income (loss): |  |  |
| Foreign currency translation adjustment, net of nil tax | $72108 | $(176998) |
| Total comprehensive income (loss) | $847630 | $(127562) |

---

(a) Basis of Presentation

Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company's consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries.

The parent company records its investment in its subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the condensed balance sheets as "Investment in subsidiaries" and their respective profit or loss as "Share of profit in subsidiaries" on the condensed statements of income. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary is reduced to zero unless the parent company has guaranteed obligations of the subsidiary or is otherwise committed to provide further financial support. If the subsidiary subsequently report net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

The parent company's condensed financial statements should be read in conjunction with the Company's consolidated financial statements.

Until [ ], 2023, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

***[●] Ordinary Shares***

![](tm2226747d2_f1asp10img01.jpg)

**BLUE-TOUCH HOLDINGS GROUP CO., LTD**

Prospectus dated [●], 2023

![](tm2226747d2_f1asp10img02.jpg)

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.**

Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our articles of association, which will become effective upon or before completion of this offering, provide that, to the extent permitted by law, we shall indemnify each existing or former secretary, director (including alternate director), and any of our other officers (including an investment adviser or an administrator or liquidator) and their personal representatives against:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all actions, proceedings, costs, charges, expenses, losses, damages, or liabilities incurred or sustained by the existing or former director (including alternate director), secretary, or officer in or about the conduct of our business or affairs or in the execution or discharge of the existing or former director (including alternate director)'s, secretary's, or officer's duties, powers, authorities or discretions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without limitation to paragraph (a) above, all costs, expenses, losses, or liabilities incurred by the existing or former director (including alternate director), secretary, or officer in defending (whether successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed) concerning us or our affairs in any court or tribunal, whether in the Cayman Islands or elsewhere.

No such existing or former director (including alternate director), secretary, or officer, however, shall be indemnified in respect of any matter arising out of his own dishonesty.

To the extent permitted by law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing secretary, or any of our officers in respect of any matter identified in above on condition that the secretary, or officer must repay the amount paid by us to the extent that it is ultimately found not liable to indemnify the secretary or that officer for those legal costs.

Pursuant to indemnification agreements, the form of which will be filed as Exhibit 10.2 to this registration statement, we will agree to indemnify our directors and officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

The Underwriting Agreement, the form of which will be filed as Exhibit 1.1 to this registration statement, will also provide for indemnification of us and our officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**ITEM 7. RECENT SALES OF UNREGISTERED SECURITIES.**

During the past three years, our Company has issued the following securities which were not registered under the Securities Act. We believe that each of the following issuance was exempt from registration under the Securities Act in reliance on Section 4(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

---

| | | | |
|:---|:---|:---|:---|
| **Purchaser** | **Date of Issuance** | **Number of Ordinary Shares** | **Consideration (US$)** |
| ST Investment Group Limited | 9-27-2021 | 26000 | 26000 |
| ChenJi Investment Group Limited | 9-27-2021 | 3250 | 3250 |
| LIUJING Investment Limited | 9-27-2021 | 3250 | 3250 |
| Super Wise International Holdings Limited | 9-27-2021 | 3250 | 3250 |
| SXD Investment Consulting Limited | 9-27-2021 | 3000 | 3000 |
| ZTCHEN Investment Limited | 9-27-2021 | 2750 | 2750 |
| CMX Investment Group Limited | 9-27-2021 | 2500 | 2500 |
| LinFeng Investment Limited | 9-27-2021 | 2500 | 2500 |
| YWF Investment Limited | 9-27-2021 | 2000 | 2000 |
| LJC International Investment Limited | 9-27-2021 | 1500 | 1500 |

---

Since incorporation, there have been changes in the ownership of our Ordinary Shares. See "Principal Shareholders." On September 6, 2022, our Company effected a 240-for-1 stock split, as a result of which the aggregated number of outstanding Ordinary Shares changed from 50,000 to 12,000,000. The number of outstanding Ordinary Shares in the table above does not reflect the effect of such stock split.

**ITEM 8. *EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.***

**(a) Exhibits**

See Exhibit Index beginning on page 129 of this registration statement.

**(b) Financial Statement Schedules**

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the Consolidated Financial Statements or the Notes thereto.

**ITEM 9. *UNDERTAKINGS.***

The undersigned registrant hereby undertakes to provide to the Underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the Underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 6, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant under Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) For the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) For the purpose of determining any liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Fuzhou, People's Republic of China, on March 10, 2023.

---

| | |
|:---|:---|
| **Blue-Touch Holdings Group Co., Ltd** | **Blue-Touch Holdings Group Co., Ltd** |
| By: | /s/ Guanzhao Lin |
|  | Guanzhao Lin |
|  | Chief Executive Officer, Chairman of the Board and Director |
|  | (Principal Executive Officer) |

---

**Power of Attorney**

Each person whose signature appears below constitutes and appoints each of Guanzhao Lin and Jinshui Ying as attorneys-in-fact with full power of substitution, for him or her in any and all capacities, to do any and all acts and all things and to execute any and all instruments which said attorney and agent may deem necessary or desirable to enable the registrant to comply with the Securities Act, and any rules, regulations, and requirements of the Securities and Exchange Commission thereunder, in connection with the registration under the Securities Act of ordinary shares of the registrant, including, without limitation, the power and authority to sign the name of each of the undersigned in the capacities indicated below to the Registration Statement on Form F-1 (the "Registration Statement") to be filed with the Securities and Exchange Commission with respect to such Shares, to any and all amendments or supplements to such Registration Statement, whether such amendments or supplements are filed before or after the effective date of such Registration Statement, to any related Registration Statement filed pursuant to Rule 462(b) under the Securities Act, and to any and all instruments or documents filed as part of or in connection with such Registration Statement or any and all amendments thereto, whether such amendments are filed before or after the effective date of such Registration Statement; and each of the undersigned hereby ratifies and confirms all that such attorney and agent shall do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Guanzhao Lin* | Chief Executive Officer, Chairman of the Board and Director | March 10, 2023 |
| Name: Guanzhao Lin | (Principal Executive Officer) |  |
| */s/ Jinshui Ying* | Chief Financial Officer | March 10, 2023 |
| Name: Jinshui Ying | (Principal Accounting and Financial Officer) |  |
| */s/ Jifeng Huang* | Director | March 10, 2023 |
| Name: Jifeng Huang |  |  |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933 as amended, the undersigned, the duly authorized representative in the United States of America of Blue-Touch Holdings Group Co., Ltd, has signed this registration statement thereto in New York, NY on March 10, 2023.

---

| | |
|:---|:---|
|  | Cogency Global Inc.<br> Authorized U.S. Representative<br>|
| By: | */s/ Colleen A. De Vries* |
|  | Name: Colleen A. De Vries |
|  | Title: Senior Vice President on behalf of Cogency Global Inc. |

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Description** |  |
| 1.1\* | Form of Underwriting Agreement |
| 3.1\* | Amended and Restated Memorandum and Articles of Association of the Registrant |
| 4.1\* | Specimen Certificate for Ordinary Shares |
| 4.2\* | Form of Underwriters' Warrants |
| 5.1\* | Opinion of Ogier regarding the legality of the Ordinary Shares being registered |
| 5.2\* | Opinion of Hunter Taubman Fischer & Li LLC regarding the enforceability of Underwriter's Warrants |
| [8.1](tm2226747d2_ex99-2.htm) | [Opinion of AllBright Law Offices (Fuzhou) regarding certain PRC tax matters (included in Exhibit 99.2)](tm2226747d2_ex99-2.htm) |
| [10.1](tm2226747d2_ex10-1.htm) | [Form of Employment Agreement by and between executive officers and the Registrant](tm2226747d2_ex10-1.htm) |
| [10.2](tm2226747d2_ex10-2.htm) | [Form of Indemnification Agreement with the Registrant's directors and officers](tm2226747d2_ex10-2.htm) |
| [10.3](tm2226747d2_ex10-3.htm) | [Advertising Agreement dated December 8, 2022, by and between the operating entity and Fujian Cema Benteng Cultural Development Co., Ltd.](tm2226747d2_ex10-3.htm) |
| [21.1](tm2226747d2_ex21-1.htm) | [Subsidiaries](tm2226747d2_ex21-1.htm) |
| [23.1](tm2226747d2_ex23-1.htm) | [Consent of TPS Thayer, LLC](tm2226747d2_ex23-1.htm) |
| 23.2\* | Consent of Ogier (included in Exhibit 5.1) |
| [23.3](tm2226747d2_ex99-2.htm) | [Consent of AllBright Law Offices (Fuzhou) (included in Exhibit 99.2)](tm2226747d2_ex99-2.htm) |
| 23.4\* | Consent of Hunter Taubman Fischer & Li LLC (included in Exhibit 5.2) |
| [24.1](#pa_001) | [Powers of Attorney (included on signature page)](#pa_001) |
| 99.1\* | Code of Business Conduct and Ethics of the Registrant |
| [99.2](tm2226747d2_ex99-2.htm) | [Opinion of AllBright Law Offices (Fuzhou), regarding certain PRC law matters](tm2226747d2_ex99-2.htm) |
| [99.3](tm2226747d2_ex99-3.htm) | [Consent of Respect Marketing Research Inc.](tm2226747d2_ex99-3.htm) |
| [99.4](tm2226747d2_ex99-4.htm) | [Consent of Jindan Lin](tm2226747d2_ex99-4.htm) |
| [99.5](tm2226747d2_ex99-5.htm) | [Consent of Shuo Chen](tm2226747d2_ex99-5.htm) |
| [99.6](tm2226747d2_ex99-6.htm) | [Consent of Yuan Yuan](tm2226747d2_ex99-6.htm) |
| [107\*\*](http://www.sec.gov/Archives/edgar/data/1944946/000110465922104685/tm2226747d1_exfilingfees.htm) | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/1944946/000110465922104685/tm2226747d1_exfilingfees.htm) |

---

\* To be filed by amendment. <br> \*\* Previously filed.

## Exhibit 10.1

**Exhibit 10.1**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT (the "<u>Agreement</u>"), is entered into as of [] by and between Blue-Touch Holdings Group Co., Ltd, a company incorporated and existing under the laws of Cayman Islands (the "<u>Company</u>"), and [], an individual (the "<u>Executive</u>"). The term "Company" as used herein with respect to all obligations of the Executive hereunder shall be deemed to include the Company and all of its direct or indirect parent companies, subsidiaries, affiliates, or subsidiaries or affiliates of its parent companies (collectively, the "<u>Group</u>").

**RECITALS**

The Company desires to employ the Executive and to assure itself of the services of the Executive during the term of Employment (as defined below).

The Executive desires to be employed by the Company during the term of Employment and upon the terms and conditions of this Agreement.

**AGREEMENT**

The parties hereto agree as follows:

**1.** **POSITION** 

The Executive hereby accepts a position of [] of the Company (the "<u>Employment</u>").

**2.** **TERM** 

Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be [] years, commencing on [] (the "<u>Effective Date</u>"), unless terminated earlier pursuant to the terms of this Agreement. Upon expiration of the []-year term, the Employment shall be automatically extended for successive []-year terms unless either party gives the other party hereto a []-month prior written notice to terminate the Employment prior to the expiration of such []-year term or unless terminated earlier pursuant to the terms of this Agreement.

**3.** **PROBATION** 

There is no probationary period.

**4.** **DUTIES AND RESPONSIBILITIES** 

The Executive's duties at the Company will include all jobs assigned by the Company's Board of Directors (the "<u>Board</u>").

The Executive shall devote all of his/her working time, attention and skills to the performance of his/her duties at the Company and shall faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of Association of the Company, as may be amended from time to time (the "<u>Articles of Association</u>"), and the guidelines, policies and procedures of the Company approved from time to time by the Board.

**5.** **NO BREACH OF CONTRACT** 

The Executive shall use his/her best efforts to perform his/her duties hereunder. The Executive shall not, without prior consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall not be concerned or interested in any business or entity that directly or indirectly competes with the Group (any such business or entity, a "<u>Competitor</u>"), provided that nothing in this clause shall preclude the Executive from holding shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere, <u>provided however,</u> that the Executive shall notify the Company in writing prior to his/her obtaining a proposed interest in such shares or securities in a timely manner and with such details and particulars as the Company may reasonably require. The Company shall have the right to require the Executive to resign from any board or similar body which he/she may then serve if the Board reasonably determines and notifies the Executive in writing that the Executive's service on such board or body interferes with the effective discharge of the Executive's duties and responsibilities to the Company or that any business related to such service is then in competition with any business of the Company or any of its subsidiaries or affiliates.

The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements that are required to be entered into by and between the Executive and any member of the Group pursuant to applicable law of the jurisdiction where the Executive is based, if any; (ii) the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his/her duties hereunder; and (iii) the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

**6.** **LOCATION** 

The Executive will be based in [], the People's Republic of China, until both parties hereto agree to change otherwise. The Executive acknowledges that he/she may be required to travel from time to time in the course of performing his/her duties for the Company.

**7.** **COMPENSATION AND BENEFITS** 

(a) <u>Compensation</u>. The Executive's cash compensation (inclusive of any statutory welfare reserves that the Company may be required to set aside for the Executive under applicable law) shall be provided by the Company in a separate schedule A attached hereto ("Schedule A") or as specified in a separate agreement between the Executive and the Company's designated subsidiary or affiliated entity, subject to annual review and adjustment by the Company or the compensation committee of the Board. <u>The cash compensation</u> may be paid by the Company, a subsidiary or affiliated entity or a combination thereof, as designated by the Company from time to time.

(b) <u>Equity Incentives</u>. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible to participate in such plan pursuant to the terms thereof.

(c) <u>Benefits</u>. The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance plan and travel/holiday plan.

**8.** **TERMINATION OF THE AGREEMENT** 

(a) <u>By the Company</u>. The Company may terminate the Employment for cause, at any time, without notice or remuneration, if the Executive (1) commits any serious or persistent breach or non-observance of the terms and conditions of the Employment; (2) is convicted of a criminal offence other than one which, in the opinion of the Board, does not affect the Executive's position as an employee of the Company, bearing in mind the nature of the Executive's duties and the capacity in which the Executive is employed; (3) willfully disobeys a lawful and reasonable order; (4) misconducts himself/herself and such conduct is inconsistent with the due and faithful discharge of the Executive's material duties hereunder; (5) is guilty of fraud or dishonesty; or (6) is habitually neglectful in his/her duties. The Company may terminate the Employment without cause at any time with a []-month prior written notice to the Executive or by payment of [] month's salary in lieu of notice.

(b) <u>By the Executive</u>. The Executive may terminate the Employment at any time with a []-month prior written notice to the Company or by payment of [] month's salary in lieu of notice. In addition, the Executive may resign prior to the expiration of the Agreement if such resignation or an alternative arrangement with respect to the Employment is approved by the Board.

(c) <u>Notice of Termination.</u> Any termination of the Executive's Employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party in accordance with the provisions of Section 20 hereof. The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

**9.** **CONFIDENTIALITY AND NONDISCLOSURE** 

(a) <u>Confidentiality and Non-disclosure.</u> The Executive hereby agrees at all times during the term of his/her Employment and after termination of the Executive's Employment under this Agreement, to hold in the strictest confidence, and not to use, except for the benefit of the Group, or to disclose to any person, corporation or other entity without written consent of the Company, any Confidential Information. The Executive understands that " <u>Confidential Information</u> " means any proprietary or confidential information of the Group, its affiliates, their clients, customers or partners, and the Group's licensors, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers (including, but not limited to, customers of the Group on whom the Executive called or with whom the Executive became acquainted during the term of his/her Employment), supplier lists and suppliers, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, licensors, licensees, distributors, and other persons with whom the Group does business, information regarding the skills and compensation of other employees of the Group or other business information disclosed to the Executive by or obtained by the Executive from the Group, its affiliates, or their clients, customers, or partners, either directly or indirectly, in writing, orally or by drawings or observation of parts or equipment, if specifically indicated to be confidential or reasonably expected to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the public through no fault of the Executive.

(b) <u>Company Property</u>. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with his/her work or using the facilities of the Group are property of the Group and subject to inspection by the Group, at any time. Upon termination of the Executive's Employment with the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature pertaining to his/her work with the Company and will provide prompt written certification of his compliance with this Agreement. Under no circumstances will the Executive have, following his/her termination, in his/her possession any property of the Group, or any documents or materials or copies thereof containing any Confidential Information.

(c) <u>Former Employer Information</u>. The Executive agrees that he/she has not and will not, during the term of his/her employment, (i) improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive has an agreement or duty to keep in confidence, or (ii) bring into any premises of the Group any document or confidential or proprietary information belonging to such former employer, person or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the Group and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising out of or in connection with any violation of the foregoing.

(d) <u>Third Party Information</u>. The Executive recognizes that the Group may have received, and in the future may receive, from third parties their confidential or proprietary information subject to a duty on the Group's part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Group and such third parties, during the Executive's Employment by the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent with, and for the limited purposes permitted by, the Group's agreement with such third party.

This Section 9 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 9, the Company shall have right to seek remedies permissible under applicable law.

**10.** **WITHHOLDING TAXES** 

Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

**11.** **NOTIFICATION OF NEW EMPLOYER** 

In the event that the Executive leaves the employ of the Company, the Executive hereby grants consent to notification by the Company to his/her new employer about his/her rights and obligations under this Agreement.

**12.** **ASSIGNMENT** 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; <u>provided, however</u>, that (i) the Company may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.

**13.** **SEVERABILITY** 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

**14.** **ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter, other than any such agreement under any employment agreement entered into with a subsidiary of the Company at the request of the Company to the extent such agreement does not conflict with any of the provisions herein. The Executive acknowledges that he/she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement.

**15.** **REPRESENTATIONS** 

The Executive hereby agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. The Executive hereby represents that the Executive's performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to his/her Employment by the Company. The Executive has not entered into, and hereby agrees that he/she will not enter into, any oral or written agreement in conflict with this Section 15. The Executive represents that the Executive will consult his/her own consultants for tax advice and is not relying on the Company for any tax advice with respect to this Agreement or any provisions hereunder.

**16.** **GOVERNING LAW** 

This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflict of laws.

**17.** **ARBITRATION** 

Any dispute arising out of, in connection with or relating to, this Agreement shall be resolved through arbitration pursuant to this Section 20. The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the "Centre") in accordance with the rules of the United Nations Commission of International Trade Law ("UNCITRAL Rules") in effect at the time of the arbitration. There shall be one arbitrator. The award of the arbitration tribunal shall be final and binding upon the disputing parties, and any party may apply to a court of competent jurisdiction for enforcement of such award.

**18.** **AMENDMENT** 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

**19.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

**20.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party), (ii) delivered by hand, (iii) otherwise delivered against receipt therefor, or (iv) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

**21.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

**22.** **NO INTERPRETATION AGAINST DRAFTER** 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that such party has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms. The Executive agrees and acknowledges that he/she has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.

*[Remainder of this page has been intentionally left blank.]*

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

---

| |
|:---|
| **Blue-Touch Holdings Group Co., Ltd** |
| By: |
| Name: |
| Title: |

---

**Executive**

Signature:   <br> Name:

*[Signature Page to Employment Agreement]*

**Schedule A**

Annual compensation is specified in a separate agreement between the Executive and the Company's designated subsidiary or affiliated entity.

## Exhibit 10.2

**Exhibit 10.2**

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this "<u>Agreement</u>") is entered into as of [ ] by and between Blue-Touch Holdings Group Co., Ltd, a Cayman Islands company (the "<u>Company</u>"), and the undersigned, a director and/or an officer of the Company ("<u>Indemnitee</u>"), as applicable.

**RECITALS**

The Board of Directors of the Company (the "<u>Board of Directors</u>") has determined that the inability to attract and retain highly competent persons to serve the Company is detrimental to the best interests of the Company and its shareholders and that it is reasonable and necessary for the Company to provide adequate protection to such persons against risks of claims and actions against them arising out of their services to the corporation.

**AGREEMENT**

In consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

A. DEFINITIONS

The following terms shall have the meanings defined below:

***Expenses*** shall include, without limitation, damages, judgments, fines, penalties, settlements and costs, attorneys' fees and disbursements and costs of attachment or similar bond, investigations, and any other expenses paid or incurred in connection with investigating, defending, being a witness in, participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding.

***Indemnifiable Event*** means any event or occurrence that takes place either before or after the execution of this Agreement, related to the fact that Indemnitee is or was a director or an officer of the Company, or is or was serving at the request of the Company as a director or officer of another corporation, partnership, joint venture or other entity, or related to anything done or not done by Indemnitee in any such capacity, including, but not limited to neglect, breach of duty, error, misstatement, misleading statement or omission.

***Participant*** means a person who is a party to, or witness or participant (including on appeal) in, a Proceeding.

***Proceeding*** means any threatened, pending, or completed action, suit, arbitration or proceeding, or any inquiry, hearing or investigation, whether civil, criminal, administrative, investigative or other, including appeal, in which Indemnitee may be or may have been involved as a party or otherwise by reason of an Indemnifiable Event.

B. AGREEMENT TO INDEMNIFY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>General Agreement</u>. In the event Indemnitee was, is, or becomes a Participant in, or is threatened to be made a Participant in, a Proceeding, the Company shall indemnify the Indemnitee from and against any and all Expenses which Indemnitee incurs or becomes obligated to incur in connection with such Proceeding, to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Indemnification of Expenses of Successful Party</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits in defense of any Proceeding or in defense of any claim, issue or matter in such Proceeding, the Company shall indemnify Indemnitee against all Expenses incurred in connection with such Proceeding or such claim, issue or matter, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Partial Indemnification</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion of Expenses, but not for the total amount of Expenses, the Company shall indemnify the Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Employment Rights</u>. Nothing in this Agreement is intended to create in Indemnitee any right to continued employment with the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Contribution</u>. If the indemnification provided in this Agreement is unavailable and may not be paid to Indemnitee for any reason other than those set forth in Section B.4, then the Company shall contribute to the amount of Expenses paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and by the Indemnitee on the other hand from the transaction or events from which such Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events which resulted in such Expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or settlement amounts. The Company agrees that it would not be just and equitable if contribution pursuant to this Section B.5 were determined by pro rata allocation or any other method of allocation which does not take account of the foregoing equitable considerations.

C. INDEMNIFICATION PROCESS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Notice and Cooperation by Indemnitee</u>. Indemnitee shall, as a condition precedent to his/her right to be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement, provided that the delay of Indemnitee to give notice hereunder shall not prejudice any of Indemnitee's rights hereunder, unless such delay results in the Company's forfeiture of substantive rights or defenses. Notice to the Company shall be given in accordance with Section F.7 below. If, at the time of receipt of such notice, the Company has directors' and officers' liability insurance policies in effect, the Company shall give prompt notice to its insurers of the Proceeding relating to the notice. The Company shall thereafter take all necessary and desirable actions to cause such insurers to pay, on behalf of Indemnitee, all Expenses payable as a result of such Proceeding. In addition, Indemnitee shall give the Company such information and cooperation as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Indemnification Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Advancement of Expenses*. Indemnitee may submit a written request with reasonable particulars to the Company requesting that the Company advance to Indemnitee all Expenses that may be reasonably incurred in advance by Indemnitee in connection with a Proceeding. The Company shall, within 10 business days of receiving such a written request by Indemnitee, advance all requested Expenses to Indemnitee. Any excess of the advanced Expenses over the actual Expenses will be repaid to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Reimbursement of Expenses*. To the extent Indemnitee has not requested any advanced payment of Expenses from the Company, Indemnitee shall be entitled to receive reimbursement for the Expenses incurred in connection with a Proceeding from the Company immediately after Indemnitee makes a written request to the Company for reimbursement unless the Company refers the indemnification request to the Reviewing Party in compliance with Section C.2(c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Determination by the Reviewing Party*. If the Company reasonably believes that it is not obligated under this Agreement to indemnify the Indemnitee, the Company shall, within 10 days after the Indemnitee's written request for an advancement or reimbursement of Expenses, notify the Indemnitee that the request for advancement of Expenses or reimbursement of Expenses will be submitted to the Reviewing Party (as hereinafter defined). The Reviewing Party shall make a determination on the request within 30 days after the Indemnitee's written request for an advancement or reimbursement of Expenses. Notwithstanding anything foregoing to the contrary, in the event the Reviewing Party informs the Company that Indemnitee is not entitled to indemnification in connection with a Proceeding under this Agreement or applicable law, the Company shall be entitled to be reimbursed by Indemnitee for all the Expenses previously advanced or otherwise paid to Indemnitee in connection with such Proceeding; p<u>rovided</u>, <u>however</u>, that Indemnitee may bring a suit to enforce his/her indemnification right in accordance with Section C.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Suit to Enforce Rights</u>. Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification within 30 days after making a written demand in accordance with Section C.2 above or 50 days if the Company submits a request for advancement or reimbursement to the Reviewing Party under Section C.2(c) above, Indemnitee shall have the right to enforce its indemnification rights under this Agreement by commencing litigation in any court of competent jurisdiction seeking a determination by the court or challenging any determination by the Reviewing Party or any aspect of this Agreement. Any determination by the Reviewing Party not challenged by Indemnitee and any judgment entered by the court shall be binding on the Company and Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Assumption of Defense</u>. In the event the Company is obligated under this Agreement to advance or bear any Expenses for any Proceeding against Indemnitee, the Company shall be entitled to assume the defense of such Proceeding, with counsel approved by Indemnitee, upon delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Proceeding, unless (i) the employment of counsel by Indemnitee has been previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded, based on written advice of counsel, that there may be a conflict of interest of such counsel retained by the Company between the Company and Indemnitee in the conduct of any such defense, or (iii) the Company ceases or terminates the employment of such counsel with respect to the defense of such Proceeding, in any of which events the fees and expenses of Indemnitee's counsel shall be at the expense of the Company. At all times, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee's expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Defense to Indemnification, Burden of Proof and Presumptions</u>. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement that it is not permissible under this Agreement or applicable law for the Company to indemnify the Indemnitee for the amount claimed. In connection with any such action or any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified under this Agreement, the burden of proving such a defense or determination shall be on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Settlement without Consent</u>. Neither party to this Agreement shall settle any Proceeding in any manner that would impose any damage, loss, penalty or limitation on Indemnitee without the other party's written consent. Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Company Participation</u>. Subject to Section B.5, the Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial action if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense, conduct and/or settlement of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reviewing Party.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement, the Reviewing Party with respect to each indemnification request of Indemnitee that is referred by the Company pursuant to Section C.2(c) above shall be (A) the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (B) if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, said Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee. If the Reviewing Party determines that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within 10 days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel or member of the Board of Directors shall act reasonably and in good faith in making a determination under this Agreement of the Indemnitee's entitlement to indemnification. Any reasonable costs or expenses (including reasonable attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. "<u>Disinterested</u> Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the determination of entitlement to indemnification is to be made by Independent Counsel, the Independent Counsel shall be selected as provided in this Section C.8(b). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board of Directors, in which event the proceeding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; *provided*, *however*, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "<u>Independent Counsel</u>" as defined in Section C.8(d) of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting under this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section C.8(b), regardless of the manner in which such Independent Counsel was selected or appointed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In making a determination with respect to entitlement to indemnification hereunder, the Reviewing Party shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement (with or without court approval), conviction, or upon a plea of *nolocontendere* or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he/she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his/her conduct was unlawful. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Company and any other corporation, partnership, joint venture or other entity of which Indemnitee is or was serving at the written request of the Company as a director, officer, employee, agent or fiduciary, including financial statements, or on information supplied to Indemnitee by the officers and directors of the Company or such other corporation, partnership, joint venture or other entity in the course of their duties, or on the advice of legal counsel for the Company or such other corporation, partnership, joint venture or other entity or on information or records given or reports made to the Company or such other corporation, partnership, joint venture or other entity by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company or such other corporation, partnership, joint venture or other entity. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company or such other corporation, partnership, joint venture or other entity shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. The provisions of this Section C.8(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Independent Counsel</u>" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

D. DIRECTOR AND OFFICER LIABILITY INSURANCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Good Faith Determination</u>. The Company shall from time to time make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses incurred in connection with their services to the Company or to ensure the Company's performance of its indemnification obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Coverage of Indemnitee</u>. To the extent the Company maintains an insurance policy or policies providing directors' and officers' liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any of the Company's directors or officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>No Obligation</u>. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain any director and officer insurance policy if the Company determines in good faith that such insurance is not reasonably available in the case that (i) premium costs for such insurance are disproportionate to the amount of coverage provided, or (ii) the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit.

E. NON-EXCLUSIVITY; U.S. FEDERAL PREEMPTION; TERM

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Non-Exclusivity</u>. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company's current memorandum and articles of association, as may be amended from time to time, applicable law or any written agreement between Indemnitee and the Company (including its subsidiaries and affiliates). The indemnification provided under this Agreement shall continue to be available to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he/she may have ceased to serve in any such capacity at the time of any Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>U.S. Federal Preemption</u>. Notwithstanding the foregoing, both the Company and Indemnitee acknowledge that in certain instances, U.S. federal law or public policy may override applicable law and prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Such instances include, but are not limited to, the prohibitions of the U.S. Securities and Exchange Commission (the "<u>SEC</u>") on indemnification for liabilities arising under certain U.S. federal securities laws. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC an obligation to submit the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to indemnify Indemnitee.

4/6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Duration of Agreement</u>. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer and/or a director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding by reason of his/her former or current capacity at the Company, whether or not he/she is acting or serving in any such capacity at the time any Expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an officer and/or a director of the Company or any other enterprise at the Company's request.

F. MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment of this Agreement</u>. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall operate as a waiver of any other provisions (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided in this Agreement, no failure to exercise or any delay in exercising any right or remedy shall constitute a waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Subrogation</u>. In the event of payment to Indemnitee by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Assignment; Binding Effect</u>. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party hereto without the prior written consent of the other party; except that the Company may, without such consent, assign all such rights and obligations to a successor in interest to the Company which assumes all obligations of the Company under this Agreement. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of and be enforceable by and against the parties hereto and the Company's successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company) and assigns, as well as Indemnitee's spouses, heirs, and personal and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Severability and Construction</u>. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company's inability, pursuant to a court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. In addition, if any portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by applicable law. The parties hereto acknowledge that they each have opportunities to have their respective counsels review this Agreement. Accordingly, this Agreement shall be deemed to be the product of both of the parties hereto, and no ambiguity shall be construed in favor of or against either of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Counterparts</u>. This Agreement may be executed in two counterparts, both of which taken together shall constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Governing Law</u>. This agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect to conflicts of law provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Notices</u>. All notices, demands, and other communications required or permitted under this Agreement shall be made in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed via postage prepaid, certified or registered mail, return receipt requested, and addressed to the Company at:

Blue-Touch Holdings Group Co., Ltd

Attention: Chief Executive Officer

and to Indemnitee at his/her address last known to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

(Signature page follows)

5/6

IN WITNESS WHEREOF, the parties hereto execute this Agreement as of the date first written above.

---

| |
|:---|
| **Blue-Touch Holdings Group Co., Ltd** |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| **Indemnitee** |
| Signature: |
| Name: |

---

[Signature Page to Indemnification Agreement]

6/6

## Exhibit 10.3

**Exhibit 10.3**

Cema Benteng Advertising Promotion Entrustment Agreement

**Advertising Promotion Entrustment Agreement**

Client (Party A): <u>Fujian Blue-Touch Technology Co., Ltd.</u>

Agent (Party B): <u>Fujian Cema Benteng Cultural Development Co., Ltd.</u>

**No. CMBT-BTKJ-202089**

Cema Benteng Advertising Promotion Entrustment Agreement

Through friendly negotiation, Party A and Party B have reached the following agreement (the "Agreement") on <u>advertising planning, designing, implementation, release</u> and other matters entrusted by Party A to Party B, in accordance with the relevant provisions of the General Provisions of the Civil Law of the People's Republic of China and the Contract Law of the People's Republic of China.

Article 1 Service Content

1.1 Party A entrusts Party B to provide planning, design, and implementation services for the overall advertising and promotional activities of Party A's brand and products during the contract period.

1.2 The overall service content is as follows:

(1) Implementing the marketing strategies of Party A and its marketing planning personnel regarding branding and products;

(2) Providing suggestions on advertising, graphic designs, copywriting, public relations, marketing and promotions according to the plan recognized by both parties;

(3) Providing video, scripts, DM leaflets, and outdoor advertising painting and installation services for the launch of Party A's brand and products; and

(4) Placing advertisements in accordance with the mutually agreed-upon release media and timing.

1.3 In order to achieve effective communications between both parties and improve work efficiency, Party A needs to designate a special person to be responsible for cooperation and contact with Party B; at the same time, Party B shall establish a special working group to ensure the quality of the work.

1.4 Party A and Party B shall establish working procedures for confirmation, communication and feedback, and proceed in strict accordance with such working procedures, once established.

a. Both parties agree to hold regular meetings when necessary to discuss future advertising programs. Party B shall closely follow Party A's product sales strategies, adjust and revise the advertising programs based on the market situations, and complete the advertising work assigned by Party A, while guaranteeing quality and quantity of such advertising work.

Cema Benteng Advertising Promotion Entrustment Agreement

b. All advertising programs can become final only with the written consent of Party A. The advertisement programs can be released only with the consent of Party A.

c. Within the specified time, Party A shall appoint a special person to be responsible for reviewing the advertising programs submitted by Party B and confirm the advertising programs that meet the requirements of Party A.

1.5 Party B shall work according to the Chinese laws, decrees and relevant regulations as well as Party A's requirements, and ensure the legality of the work, otherwise Party B shall bear all responsibilities arising therefrom.

1.6 Party A and Party B shall jointly formulate the work plans and determine the work stages and completion deadlines according to the sales situation and the communication strategies of Party A's marketing planning personnel.

Article 2 Agreement Term

The term of this Agreement is from January 1, 2021 to December 31, 2021. Before the expiration hereof, both parties shall review and assess Party B's services. If Party A agrees to renew the Agreement, it shall separately negotiate and sign a contract with Party B. If Party A does not agree to renew the Agreement, this Agreement will be automatically terminated from the expiration date.

Article 3 Contract Price

3.1 Total Contract Price

The total service fee is RMB 1,298,200 (ONE MILLION TWO HUNDRED AND NINETY-EIGHT THOUSAND TWO HUNDRED YUAN). The service fee has included all costs for Party B's completion of all the services specified in this Agreement (including all direct and indirect costs, advertising design costs, advertising production costs, third-party advertising placement costs and the costs of employing third-party personnel, including but not limited to administrative costs, salaries of third-party service personnel, on-site services, welfare, insurance, transportation, accommodation and communication costs).

Cema Benteng Advertising Promotion Entrustment Agreement

3.2 Payment Schedule

3.2.1 RMB 324,550 (THREE HUNDRED AND TWENTY-FOUR THOUSAND FIVE HUNDRED AND FIFTY YUAN) before January 31, 2021.

3.2.2 RMB 324,550 (THREE HUNDRED AND TWENTY-FOUR THOUSAND FIVE HUNDRED AND FIFTY YUAN) before April 30, 2021.

3.2.3 RMB 324,550 (THREE HUNDRED AND TWENTY-FOUR THOUSAND FIVE HUNDRED AND FIFTY YUAN) before July 31, 2021.

3.2.4 RMB 324,550 (THREE HUNDRED AND TWENTY-FOUR THOUSAND FIVE HUNDRED AND FIFTY YUAN) before October 31, 2021.

3.3 Payment Account

[\*]

3.4 Third-Party Expenses

3.4.1 If a Third Party (as defined below) is involved, Party B shall sign a separate contract with the Third Party, and all the third-party expenses and legal liabilities incurred shall be borne by Party B.

3.4.2 Party B shall undertake the obligation to review all the advertising work it has completed. All legal liabilities arising from the advertising content designed by Party B (including all the work described in the Agreement) and any property losses caused thereby to Party A or the Third Party will be borne by Party B.

3.4.3 The relevant third-party expenses have been included in the total contract price. Party B will not charge any additional service fee. After receiving the contract price, Party B shall entrust a professional agency to reserve advertising space and release the advertisement within the agreed upon time.

3.4.4 Definition of the Third Party: The Third Party covers all media, outdoor advertising production companies, printing companies, public relations activities companies, press companies, freelance writers, freelance painters, exhibition production companies, signage production companies, spray painting companies, gift companies, network companies, electronic publication companies, feature companies, professional film and television advertising production companies, photographers or photographic companies, film production and proofing companies, image rental companies, professional advertising agencies, etc.

Cema Benteng Advertising Promotion Entrustment Agreement

Article 4 Rights and Obligations of Both Parties

4.1 Rights and Obligations of Party A

4.1.1 Party A has the final veto right over Party B's advertising programs.

4.1.2 Party A has the right to propose amendments to the advertising programs submitted by Party B.

4.1.3 After Party A pays the service fee specified in this Agreement, the copyrights on Party B's work products shall belong to Party A, and Party B shall unconditionally provide Party A with electronic documents of its work products, and shall also provide electronic documents of the finished products for confirmation (All images should be of the same size as the finished products and in an editable vector format with a resolution of 300 DPI).

4.1.4 Party A shall provide Party B with the necessary information as required for Party B's service.

4.1.5 Party A shall proceed according to the plan and review or approve the work products of Party B according to the work schedule agreed upon by both parties, so that Party B can revise or implement the advertising programs.

4.1.6 Party A shall pay the expenses to Party B on time according to the provisions of the Agreement.

4.2 Rights and Obligations of Party B

4.2.1 Party B has the right to sign the text of the final advertisement, provided that the signing method is approved by Party A.

Cema Benteng Advertising Promotion Entrustment Agreement

4.2.2 Party B has the right to take back the advertising program not adopted by Party A and use it for other purposes.

4.2.3 Party B shall arrange a service team for Party A, including senior personnel in advertising planning, customer service, creativity, etc. and provide all-round services, including image planning, product promotion, creative development, etc.

4.2.4 Party B shall form a project working group consisting of special personnel to formulate the working process, the personnel of such working group shall be approved by Party A, and after the approval of Party A, Party B shall not replace the personnel of the working group without the permission of Party A unless any member resigns. Otherwise, Party A reserves the right to take appropriate action. If in the process of Party B's work, Party A deems that Party B's personnel is incompetent, Party A has the right to propose replacement. Party B shall replace the personnel within 7 working days until Party A is satisfied.

4.2.5 Party B shall be responsible for ensuring the rationality and accuracy of the services and technologies they provide. For all losses caused to Party A due to Party B's delay or error, Party B shall be responsible for full compensation.

4.2.6 Party B shall prepare a working schedule for each advertising program and communicate with Party A for confirmation, and after confirmation, Party B shall carry out the work according to the schedule agreed upon by both parties.

4.2.7 After the advertising program is submitted by Party B to Party A and signed by the person in charge designated by Party A, the advertising program shall be deemed to have been completed. If Party A raises any objection to the advertising program, after receiving Party A's written opinion, Party B shall modify the advertising program within the required time until Party A is satisfied.

4.2.8 Upon written approval by Party A, if Party A cancels any production after Party B has carried out the work, the reasonable costs or expenses incurred for the cancelled part may be recovered from Party A, provided that Party B must provide the amount and basis of relevant costs.

4.2.9 Party B shall not bribe Party A's staff in any form or by any means during the cooperation between both parties. Once any bribery is found, Party A has the right to terminate this Agreement unconditionally.

Cema Benteng Advertising Promotion Entrustment Agreement

4.2.10 Party B undertakes not to infringe on others' copyrights and other intellectual property rights in the process of advertising creation. In case of any infringement or dispute of others' intellectual property rights in the creation process, Party B shall bear all corresponding legal responsibilities and consequences.

Article 5 Rescission of the Agreement

5.1 Party A shall conduct a phased assessment of Party B's work. If Party B's work fails to meet Party A's requirements, Party A has the right to rescind the Agreement.

5.2 If this Agreement cannot be performed continuously or Party A's reputation and financial situation is seriously damaged because Party B's work infringes on others' copyrights, Party A has the right to rescind the Agreement.

5.3 If Party B breaches the confidentiality obligations in the Agreement, Party A has the right to rescind the Agreement.

5.4 If Party A maliciously delays paying Party B the service fee in this Agreement without justified reasons and still fails to fulfill the payment obligation after two written reminders from Party B, Party B has the right to rescind the Agreement.

5.5 If the Agreement is changed or rescinded, a written notice shall be sent to the other party, and the change or rescission of the Agreement shall take effect as of the date when the notice reaches the other party.

Article 6 Responsibilities of Both Parties

6.1 Once this Agreement takes effect, neither party may rescind the Agreement without cause, otherwise the party rescinding the contract without cause shall pay the other party <u>10</u>% of the total contract price as liquidated damages.

6.2 Except for force majeure, such as natural disasters and government mandates, Party B shall complete all work with quality and quantity guaranteed according to the working schedule approved by Party A or within the specified time; otherwise Party B shall be deemed to have breached this Agreement. For each day of delay, Party B shall pay 3% per day of Party A's service fee as liquidated damages. If Party B still cannot complete the work after more than 5 working days, Party A has the right to unilaterally terminate this Agreement and Party B shall pay 10% of the total contract price as liquidated damages.

Cema Benteng Advertising Promotion Entrustment Agreement

6.3 If Party A fails to provide the required basic data to Party B within the specified timeframe, or fails to put forward clear modification opinions on Party B's advertising programs within the specified timeframe, the deadline for Party B's completion of the work shall be extended accordingly.

6.4 Party A and Party B shall strictly comply with this Agreement, abide by the contract spirit and keep trade secrets strictly confidential, and shall not disclose any terms of this Agreement (including relevant production costs, design results, etc.) to any third party. Party B shall not disclose Party A's product planning to any third party. In case of such disclosure, Party A has the right to hold Party B legally liable, and Party B shall compensate Party A for all economic losses.

Article 7 Miscellaneous

7.1 This Agreement shall take effect on the date of signature and sealing by both parties.

7.2 For matters not covered in this Agreement, both parties may negotiate and sign a supplementary agreement based on the principle of friendliness and good faith, and the supplementary agreement has the same legal effect as this Agreement.

7.3 Any dispute arising during the term of this Agreement shall be settled by both parties through negotiation. If the negotiation fails, both parties shall choose to settle it in any one of the following manners:

(1) Applying to <u>Fuzhou</u> Arbitration Commission for arbitration.

(2) Filing a lawsuit directly with the court in the jurisdiction where the Agreement is being performed.

7.5 This Agreement shall take effect after being signed and sealed by both parties, and is made in <u>duplicate</u>, with Party A holding <u>one</u> copy and Party B holding <u>one</u> copy, and both copies have the same legal effect.

Cema Benteng Advertising Promotion Entrustment Agreement

(The remainder of this page is intentionally left blank)

(This page has no text and serves as the signature page of the Advertising Promotion Entrustment Agreement)

Party A: Fujian Blue-Touch Technology Co., Ltd.

Representative:

Signing Date:

![](tm2226747d2_ex10-3img01.jpg)

![](tm2226747d2_ex10-3img02.jpg)

Cema Benteng Advertising Promotion Entrustment Agreement

Party B: Fujian Cema Benteng Cultural Development Co., Ltd.

Representative:

Signing Date: December 8, 2020

![](tm2226747d2_ex10-3img03.jpg)

![](tm2226747d2_ex10-3img05.jpg)

## Exhibit 21.1

**Exhibit 21.1**

**Blue-Touch Holdings Group Co., Ltd**

**Subsidiaries of the Registrant**

---

| | |
|:---|:---|
| **Subsidiaries** | **Place of Incorporation** |
| Fujian Blue-Touch Holdings Group Co., Ltd. | China |
| Fujian Blue-Touch Technology Co., Ltd. | China |

---

## Exhibit 23.1

**Exhibit 23.1**

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the reference to our firm under the caption "Experts" and to the use of our report dated September 30, 2022, except for Note 2, as to which the date is March 10, 2023, with respect to the consolidated financial statements of Blue-Touch Holdings Group Co., Ltd, for the years ended December 31, 2021 and 2020 in this Registration Statement on Form F-1 of Blue-Touch Holdings Group Co., Ltd. and the related Prospectus of Blue-Touch Holdings Group Co., Ltd filed with the Securities and Exchange Commission.

/s/ TPS Thayer, LLC

Sugar Land, Texas

March 10, 2023

## Exhibit 99.2

**Exhibit 99.2**

![](tm2226747d2_ex99-2img001.jpg)

福建省福州市台江区望龙二路1号国际金融中心（IFC）37层（350005）

电话：+86-591-87850803 传真：+86-591-87816904

37/F, IFC, No.1, Wanglong 2nd Avenue, Taijiang District, Fuzhou, Fujian 350005 P. R. China

Tel: +86-591-87850803 Fax: +86-591-87816904

www.allbrightlaw.com

---

| | |
|:---|:---|
| **TO:** | **Blue-Touch Holdings Group Co., Ltd** |
|  | Second Floor, Century Yard, Cricket Square |
|  | P. O. Box 902, Grand Cayman, KY1-1103 |
|  | Cayman Islands |

---

March 7, 2023

 ****

***<u>Re: PRC Legal Opinion for Certain Legal Matters of the Initial Public Offering of Blue-Touch Holdings Group Co., Ltd</u>***

We are acting as the People's Republic of China (the "**PRC**," which for the purpose of this legal opinion, does not include Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan) legal adviser to Blue-Touch Holdings Group Co., Ltd (the "**Company**"), in connection with the Company's initial public offering and sale of a certain number of ordinary shares with a par value of US$0.0005 per share (the "**Ordinary Shares**") pursuant to the Company's registration statement on Form F-1, including all amendments and supplements thereto (the "**Registration Statement**"), filed by the Company with the U.S. Securities and Exchange Commission under the U.S. Securities Act of 1933, as amended (the "**Offering**").

We are licensed lawyers in the PRC and are authorized by the Ministry of Justice of the PRC to issue legal opinions in relation to the above matters in accordance with the published and publicly available PRC laws, regulations, rules and judicial interpretations announced by the PRC Supreme People's Court (collectively the "**PRC Laws**"), such licenses and authorization of which have not been revoked, suspended, restricted, or limited in any manner whatsoever (the **"Opinion"**).

**A.**  **<u>Documents Examined, Definition and Information Provided</u>** 

In connection with this opinion letter, we have examined copies, certified or otherwise identified to our satisfaction, of documents provided by the Company, the Registration Statement, corporate records, certificates, approvals, and such other documents and other instruments as we have deemed necessary for the purpose of rendering this opinion, including, without limitation, originals or copies of the certificates issued by the PRC Government Authorities (as defined below) and certificates issued by officers of the Company. All of these documents are hereinafter collectively referred to as the "**Documents**."

Unless the context of this opinion otherwise provides, the following terms in this opinion shall have the meanings set forth below:

"**Government Authorizations**" means all government authorizations, consents, waivers, sanctions, certificates, authorizations, filings, registrations, exemptions, permissions, endorsements, annual inspections, qualifications, and licenses required by applicable PRC Laws.

**"WFOE"** means Fujian Blue-Touch Holdings Group Co., Ltd., a limited liability company formed in the PRC;

**"Fujian Blue-Touch"** means Fujian Blue-Touch Technology Co., Ltd., Ltd, the WFOE's wholly-owned subsidiary, a limited liability company formed in the PRC;

"**PRC Subsidiaries**" means the WFOE and Fujian Blue-Touch;

"**CSRC**" means the China Securities Regulatory Commission; and

"**Prospectus**" means the prospectus, including all amendments and supplements thereto, that forms part of the Registration Statement.

Capitalized terms used but not defined herein shall have the meanings set forth in the Registration Statement.

**B. <u>Assumptions</u>**

In our examination of the aforesaid Documents, we have assumed, without independent investigation and inquiry that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. all signatures, seals and chops are genuine and were made or affixed by representatives duly authorized
by the respective parties, all natural persons have the necessary legal capacity, all Documents submitted to us as originals are authentic,
and all Documents submitted to us as certified or photo static copies conform to the originals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. no amendments, revisions, modifications or other changes have been made with respect to any of the Documents
after they were submitted to us for the purposes of this opinion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. each of the parties to the Documents (except that we do not make such assumptions about the PRC Subsidiaries)
is duly organized and validly existing in good standing under the laws of its jurisdiction of organization and/or incorporation, and has
been duly approved and authorized where applicable by the competent governmental authorities of the relevant jurisdiction to carry on
its business and to perform its obligations under the Documents to which it is a party.

In expressing the opinions set forth herein, we have relied upon the factual matters contained in the representations and warranties set forth in the Documents.

**C. <u>Opinion</u>**

Based upon the foregoing, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1.* *With respect to the M&A Rules* 

On August 8, 2006, six PRC regulatory agencies, namely, the Ministry of Commerce ("**MOC**"), the State Assets Supervision and Administration Commission, the State Administration for Taxation, the State Administration for Industry and Commerce, the State Administration for Foreign Exchange, and the CSRC, jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which became effective on September 8, 2006 and were amended on June 22, 2009. M&A Rules require, (i) the merger and acquisition of a domestic enterprise with or by a domestic enterprise or individual, that has related party relationship with the target company, in the name of an overseas company legitimately incorporated or controlled by the domestic enterprise, enterprise or individual, shall be subject to examination and approval by MOC; and (ii) offshore special purpose vehicles, or SPVs, formed for the purpose of acquiring PRC domestic companies and controlled by PRC companies or individuals, to obtain the approval of the CSRC prior to publicly listing their securities on an overseas stock exchange.

The WFOE was originally established by the Company as a foreign-invested enterprise. Fujian Blue-Touch became a sino-foreign equity joint venture, instead of a domestic enterprise, before the acquisition of Fujian Blue-Touch by the WFOE (the "**Acquisition**"). Therefore, the M&A Rules do not apply to the Company, no approval from the MOC is required for the Acquisition, and the Company is not required to obtain the prior approval from CSRC for the listing and trading of the Company's Ordinary Shares on an overseas stock exchange with respect to the M&A Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.* *Taxation* 

The statements set forth under the caption "Taxation" in the Prospectus, insofar as they constitute statements of PRC tax law, are accurate in all material respects and that such statements constitute our opinion, and insofar as related to PRC Laws nothing has been omitted from such statements which would make the same misleading in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3.* *Enforceability of Civil Procedures* 

 

The recognition and enforcement of foreign judgments are subject to compliance with the PRC Civil Procedures Law and relevant civil procedure requirements in the PRC. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on reciprocity between jurisdictions. China does not have any treaties or other forms of reciprocity with the United States or the Cayman Islands that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, PRC courts will not enforce a foreign judgment against the Company or its directors and officers, if they decide that the judgment violates the basic principles of PRC law or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States or in the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*4.* *Licenses and Permits* 

The PRC Subsidiaries have received from the PRC authorities all requisite licenses, permissions or approvals needed to engage in the businesses currently conducted in China, and no permission or approval has been denied as of the date of this opinion letter. Such licenses and permissions include business license, and, as of the date of this opinion letter, the PRC Subsidiaries have properly filed for all of the cosmetic products that the PRC Subsidiaries sell in accordance with the relevant PRC laws and regulations. All ingredients used in the products that the PRC Subsidiaries sell are permitted to be used in the production of cosmetics, as required by the applicable governmental authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5.* *Cybersecurity Review and Overseas Listing Rules* 

On December 28, 2021, the Measures for Cybersecurity Review (2021 version) were promulgated and took effect on February 15, 2022, which provide that any "online platform operators" controlling personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review. Neither the Company nor any of its PRC Subsidiaries are expected to be subject to cybersecurity review, since the Company and its PRC Subsidiaries do not meet the definition of the "operator of critical information infrastructure" ("**CIIO**") or "online platform operator" and do not possess personal information of over one million users. As of the date of this opinion letter, as confirmed by the Company in writing, neither the Company nor any of its PRC Subsidiaries have received any notice from any authorities identifying the Company or any of its PRC Subsidiaries as a CIIO or requiring the Company or any of its PRC Subsidiaries to undertake a cybersecurity review or otherwise been involved in any investigations on cybersecurity review initiated by the Cyberspace Administration of China.

On December 24, 2021, the CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "**Draft Administrative Provisions**") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "**Draft Filing Measures**", and collectively with the Draft Administrative Provisions, the "**Draft Rules Regarding Overseas Listing**"), which stipulate that Chinese-based companies, or the issuer, shall fulfill the filing procedures after the issuer makes an application for initial public offering and listing in an overseas market, and certain overseas offering and listing such as those that constitute a threat to or endanger national security, as reviewed and determined by competent authorities under the State Council in accordance with law, may be prohibited under the Draft Rules Regarding Overseas Listing. On February 17, 2023, with the approval of the State Council, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "**Trial Measures**") and five supporting guidelines, which will come into effect on March 31, 2023. According to the Trial Measures, among other requirements, (1) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures with the CSRC; if a domestic company fails to complete the filing procedures, such domestic company may be subject to administrative penalties; and (2) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and such filings shall be submitted to the CSRC within three business days after the submission of the overseas offering and listing application. On the same day, the CSRC also held a press conference for the release of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which clarifies that (1) on or prior to the effective date of the Trial Measures, domestic companies that have already submitted valid applications for overseas offering and listing but have not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and must complete the filing before the completion of their overseas offering and listing; (2) a six-month transition period will be granted to domestic companies which, prior to the effective date of the Trial Measures, have already obtained the approval from overseas regulatory authorities or stock exchanges, but have not completed the indirect overseas listing; if domestic companies fail to complete the overseas listing within such six-month transition period, they shall file with the CSRC according to the requirements; and (3) the CSRC will solicit opinions from relevant regulatory authorities and complete the filing of the overseas listing of companies with contractual arrangements which duly meet the compliance requirements, and support the development and growth of these companies.

As of the date of this opinion letter, neither the Company nor the PRC subsidiaries have been subject to any investigation, or received any notice, warning, or sanction from the CSRC or other applicable government authorities related to the Offering. However, the Company will be required to file with the CSRC if the Company cannot obtain the approvals from the SEC and Nasdaq for the Offering before March 31, 2023, or if the Company obtains the approvals on or before March 31, 2023 but fails to complete the Offering on or before September 30, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*6.* *Consumer Protection and Unfair Competition* 

As of the date of this opinion letter, the PRC Subsidiaries are in compliance with the PRC laws related to consumer protection and unfair competition. None of the PRC subsidiaries have received any notice of noncompliance by any relevant government authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*7.* *Product Quality and Production Safety* 

As of the date of this opinion letter, the PRC Subsidiaries are not engaged in any production activities. Third-party manufactures are engaged for the production of the PRC Subsidiaries' products and all of such third-party manufacturers have the cosmetics manufacturing permits. All of the cosmetics products that the PRC Subsidiaries sell have been property filed and have Chinese labels attached in accordance with the Measures for Administration of Cosmetic Labels. All of the cosmetics products for children that the PRC Subsidiaries sell meet the requirements of the Supervision and Administration of Cosmetics for Children. Neither the Company nor the PRC subsidiaries have been subject to any investigation, nor have any of them received any notice warning, or sanction from relevant government authorities related to non-compliance with the Production Safety Law or the Product Quality Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*8.* *Employment and Social Welfare* 

Under the Labor Contract Law of the PRC and the Regulations on Implementation of the Labor Contract Law of the PRC, a written labor contract should be concluded to establish a labor relationship. As of the date of this opinion letter, the PRC Subsidiaries have signed labor contracts with all of the employees, and there have not been any notifications of any non-compliance.

Under the PRC Social Insurance Law and the Administrative Measures on Housing Fund, employees are required to participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance, maternity insurance, and housing provident funds and employers are required, together with their employees or separately, to pay the social insurance premiums and housing provident funds for their employees. In the years 2020, 2021 and 2022, the PRC Subsidiaries did not pay social insurance contributions and housing provident fund contributions in full for all of the employees. According to the Social Insurance Law, an employer that fails to make social insurance contributions may be ordered to pay the outstanding social insurance contributions within the deadline and may be liable to pay a late payment fee which equals to 0.05% of the outstanding amount for each day of delay. The employer also may be liable to pay a fine from one to three times the amount of the outstanding contributions if it fails to make such payments. According to the Regulations on Management of Housing Fund, an enterprise that fails to make housing fund contributions may be ordered to rectify the noncompliance and pay the required contributions within a stipulated deadline.

As of the date of this opinion letter, in the years of 2019, 2020 and 2021, the PRC Subsidiaries did not pay social insurance contributions and housing provident fund contributions in full for all of the employees. No administrative actions, fines or penalties have been imposed by the relevant PRC government authorities with respect to such non-compliance, nor has any order been received by the PRC subsidiaries to settle the outstanding amount of social insurance contributions and housing provident fund contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*9.* *Statements in the Prospectus* 

The statements in the Prospectus under the captions "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," "Enforceability of Civil Liabilities," "Use of Proceeds," "Regulations," "Management," "Taxation," "Dividend Policy," and "Legal Matters," insofar as such statements constitute summaries of the PRC legal matters, documents or proceedings referred to therein, in each case to the extent, and only to the extent, governed by PRC Laws, fairly present the information and summarize in all material respects the matters referred to therein; and such statements are true and accurate in all material aspects, and correctly set forth therein, and nothing has been omitted from such statements which would make the same misleading in any material respect.

**D. <u>Consent</u>**

We hereby consent to the use of our name under the captions "Prospectus Summary," "Risk Factors," "Enforceability of Civil Liabilities," "Taxation," "Legal Matters," and elsewhere in the Registration Statement.

This opinion letter relates only to PRC Laws and we express no opinion as to any laws other than PRC Laws. PRC Laws referred to herein are laws currently in force as of the date of this opinion letter and there is no guarantee that any of such PRC Laws, or the interpretation thereof or enforcement therefor, will not be changed, amended or revoked in the immediate future or in the longer term with or without retroactive effect.

We hereby consent to the use of this opinion letter in, and the filing hereof as an exhibit to, the Registration Statement. In giving such consent, we do not thereby admit that we fall within the category of the person whose consent is required under Section 7 of the U.S. Securities Act of 1933, as amended, or the regulations promulgated thereunder.

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| |
|:---|
| Very truly yours, |
| /s/ALLBRIGHT LAW OFFICES (FUZHOU) |
| **ALLBRIGHT LAW OFFICES (FUZHOU)** |

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## Exhibit 99.3

**Exhibit 99.3**

[9F, New Hengji Building, No. 3 <br> Maodian West Road, Chaoyang<br> District, Beijing,China] <br> Tel: 8610-64896485<br> Fax:8610-64896485<br> [www.respect-mr.com]

[22/02/2023]

**Blue-Touch Holdings Group Co., Ltd**

**Re: Consent of Respect Marketing Research Inc.**

Ladies and Gentlemen,

We understand that Blue-Touch Holdings Group Co., Ltd (the **"Company")** intends to file a draft registration statement (the **"Registration Statement")** with the United States Securities and Exchange Commission (the **"SEC")** in connection with its proposed initial public offering (the **"Proposed IPO").**

**We** hereby consent to the references to our name and the inclusion of information, data, and statements from our research reports and amendments thereto, including but not limited to the industry research report titled "China Maternal and Infant Washing & Care Product Industry Research Report" (the **"Report"),** and any subsequent amendments to the Report, as well as the citation of our research report and amendments thereto, (i) in the Registration Statement and any amendments thereto, (ii) in any written correspondences with the SEC, (iii) in any other future filings with the SEC by the Company, including, without limitation, filings on Form 20-F, Form 6-K or other SEC filings (collectively, the **"SEC Filings"),** (iv) on the websites of the Company and its subsidiaries and affiliates, (v) in institutional and retail road shows and other activities in connection with the Proposed IPO, and in other publicity materials in connection with the Proposed IPO.

We further hereby consent to the filing of this letter as an exhibit to the Registration Statement and any amendments thereto and as an exhibit to any other SEC Filings. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the U.S. Securities Act of 1933, as amended, or the rules and regulations of the SEC thereunder.

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| | |
|:---|:---|
| Yours faithfully | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
| For and on behalf of | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
| Respect Marketing Research Inc. | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
|  | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
| /s/ [Qiang Li] | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
| Name: [Qiang Li] | &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |
| Title: [Research Director]<br>| &nbsp;&nbsp;![](tm2226747d2_ex99-3img01.jpg) |

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## Exhibit 99.4

**Exhibit 99.4**

CONSENT OF JINDAN LIN

Blue-Touch Holdings Group Co., Ltd intends to file a Registration Statement on Form F-1 (together with any amendments or supplements thereto, the "Registration Statement"), registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee.

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| | |
|:---|:---|
| /s/ Jindan Lin | &nbsp;&nbsp;2/23/2023 |

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Jindan Lin

## Exhibit 99.5

**Exhibit 99.5**

CONSENT OF SHUO CHEN

Blue-Touch Holdings Group Co., Ltd intends to file a Registration Statement on Form F-1 (together with any amendments or supplements thereto, the "Registration Statement"), registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee.

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| | |
|:---|:---|
| February 24, 2023 | /s/ Shuo Chen |
|  | Shuo Chen |

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## Exhibit 99.6

**Exhibit 99.6**

CONSENT OF YUAN YUAN

Blue-Touch Holdings Group Co., Ltd intends to file a Registration Statement on Form F-1 (together with any amendments or supplements thereto, the "Registration Statement"), registering securities for issuance in its initial public offering. As required by Rule 438 under the Securities Act of 1933, as amended, the undersigned hereby consents to being named in the Registration Statement as a Director Nominee.

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| | |
|:---|:---|
| February 22, 2023 | /s/ Yuan Yuan |
|  | Yuan Yuan |

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