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We are a rapidly growing company engaged in clothing design, production, marketing and sales in China, focusing on menswear. We operate a number of internationally renowned brands and mainly provide a variety of men's casual wear, including men's casual wear, outdoor recreation, casual wear and accessories to middle- and high-income consumers. We design, manufacture and sell products for brands such as Barbour (Barbour), JEEP (Jeep), Maxim's (Maxim), and Santa Barbara Polo & Racquet Club (Santa Barbara Polo & Racquet Club) under concessions. We obtained intellectual property rights for clothing products from London Fog, Zoo York, and Artful Dodger brands in Greater China in 2009 and 2012, respectively. In addition to licensing and owning our own brands, we also operate Henry Cotton's, LINCS (LINCS), Manhattan (formerly Marlboro) brands in China by establishing joint ventures with joint ventures with joint venture partners. In terms of total retail sales, the two brands JEEP and St. Paul are the leading brands of high-end casual menswear in China. We sell our products through a vast sales network comprised of retail outlets operated by our own and third party retailers in 244 cities across 31 provinces, autonomous regions and municipalities in China. As of June 30, 2014, our sales network consists of 587 self-operated retail outlets located in major Chinese cities such as Beijing, Shanghai, Chengdu and Shenzhen (mainly including self-operated counters and specialty stores) and 705 retail outlets operated by third party retailers in other cities in China such as Hohhot, Urumqi and Zhengzhou. We believe that our sales and retail model, which combines our own retail outlets with retail outlets operated by third party retailers, allows us to rapidly develop and enter the huge Chinese menswear market. We started our e-commerce program in 2013 to reduce inventory of seasonal products through online discount platforms, online third-party retailers, and online proprietary stores. We seek to stand out from our competitors through multiple menswear brands, each with a unique style, conveying unique ideas and targeting specific customer groups. From a strategic point of view, we chose authorized brands that have established a reputation, believing that this can attract male customers in the middle and upper income groups in China. The authorized brand's existing market popularity and goodwill enable us to quickly enter the Chinese market for men's men's casual, outdoor leisure and loungewear. We attach great importance to the design and style of our products. In addition to exploring design concepts through typical channels (including reviewing fashion publications, participating in fashion fairs, and analyzing data on consumer behavior), the design team also collaborated with the world's top designer, Mr. Zhu Qinqi, senior designer Barbour, who has served the British royal family for many years, and the talented MCS Italian design team and fashionistas, including Mr. Tse Ting-feng, to keep abreast of the latest trends and new design trends. Therefore, we believe that the Group's design team has a deep understanding of the development trends of the men's men's leisure, outdoor leisure and loungewear market. Our supply chain model is to outsource most of our production to keep production costs to a minimum. We believe the outsourcing arrangement allows us to focus on our core strengths in brand selection, design and sales management to minimize the need to invest in large-scale production facilities and avoid the cost of maintaining personnel during off-peak production periods. We have our own production facility in Dezhou, Shandong Province, which is mainly used to produce pants — one of our main products.

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