About QI-HOUSE Company

We are headquartered in Hong Kong, China and operate under the “TREE” brand, which engages in (i) selling and distributing furniture and home accessories; (ii) consignment sales; (iii) distributing and licensing intellectual property rights; (iv) providing design and consulting services; and (v) operating TREE Café within our flagship store. We provide (i) furniture, including tables and chairs, storage solutions, sofas and beds; and (ii) home accessories, including kitchen utensils, bed and bathroom related products, cans, cushions, mattresses, utensils and baskets. According to Euromonitor's report, we operate in the household furniture and home furnishing market in Hong Kong, China. It is a branch of the entire furniture and home furnishing market in Hong Kong, China. In 2015, in terms of retail sales, it accounted for about 12.2% of the total furniture and home furnishing market in Hong Kong, China. According to Euromonitor's report, in 2015, we ranked second in terms of retail sales in the household furniture and home furnishing market in Hong Kong, China, with a market share of about 4.7%. As part of our strategy to enrich our revenue base and increase brand awareness, we entered into a framework distribution agreement with our Beijing distributor in June 2015, followed by a distribution agreement with them in November 2016. According to the distribution agreement, Beijing distributors sell our products through their retail stores in Beijing, China. Additionally, we authorize our Beijing distributors to use our trademarks and intellectual property rights and charge them a fixed annual distribution and licensing fee. Additionally, we entered into a North American license agreement with American Tree in 2015 to obtain license fees. Although no license fees were received from American Tree during the track record period. Since 2006, we have continued to expand our retail and distribution network. At the last practical date, our retail and distribution network included four stores, three of which were operated by our own stores and the remaining one operated by our distributor in Beijing. Over 70% of our revenue came from our flagship stores during our track record period. We also operate TREE Café at our flagship store, which offers a wide range of drinks and refreshments. We began providing design and consulting services to our customers for the year ending March 31, 2015. Among them, we provided services such as design and procurement solutions to meet the specific requirements of our customers.