Business Overview

Raily Aesthetic Medicine is a leading aesthetic medical service provider in Zhejiang Province, the PRC, and our main business is offering a broad range of aesthetic medical services to our clients, including aesthetic surgery services, minimallyinvasive aesthetic services and aesthetic dermatology services. After 14 years of brand operation of the Group, our network of service institutions has continued to expand. As at 31 December 2021, we own and operate a network of four private for-profit aesthetic medical service institutions in the PRC, while three of them are located in Zhejiang Province and one of them is located in Anhui Province. We have over 70 physicians who practiced at our aesthetic medical institutions with an average industry experience over ten years. Based on this, we have also developed aesthetic medical management consulting services and sales of aesthetic medical equipment products.

Aesthetic Medical Services

Raily Aesthetic Medicine offers a broad range of aesthetic medical services to the clients to meet the different aesthetic and anti-aging objectives, with an aim to improve their physical appearance and wellbeing.

As of 31 December 2021, the Group had more than 125 practicing physicians, including 71 practicing physicians with industry experience over ten years. The Group believes the team of qualified and experienced physicians and medical staff, as well as the stringent safety controls, have underpinned the strong reputation as the Group continues to attract and retain clients and receive industry recognition for the high quality services. Safe and high-quality aesthetic medical services of the Group was evidenced by the accreditation by the CAPA.

Aesthetic Medical Management Consulting Services

Leveraging years of experience of Raily Aesthetic Medicine in managing aesthetic medical institutions and the expertise in sales and marketing of aesthetic medical services, the Group provides management consulting services to third parties aesthetic medical institutions in relation primarily to operations and administration, and sales and marketing; and third parties physicians in relation primarily to their professional biography building, sales and marketing as well as operation and administration of the aesthetic medical business. Such services do not involve any authorization of using the Group’s trade name or intellectual property rights.

Based on the specific profile of the Group’s clients and their specific operational or marketing goals, the Group’s management consulting services may include the following:

1.in relation to the operations and administration of the clients’ aesthetic medical institution:
· formulating overall operation plan for clients
· designing and establishing standardized operating procedures and service process in aesthetic medical institutions or at the practicing site of the physician
· designing and establishing the standardized management system of procurement
· designing and establishing client feedback management system
· designing and establishing organization structure and recruitment system
· designing key performance indicators and salary structure for staff
2.in relation to the sales and marketing of the clients’ aesthetic medical institution:
· formulating overall sales and marketing plan
· designing promotion and marketing activities
· selection of appropriate e-commerce or other online platform to promote and market clients’ aesthetic medical services
· maintaining and operating online shops of clients
· providing training to staff regarding sales and marketing strategies
3.in relation to the personal biography building for individual physician client or the key physicians of the clients’ aesthetic medical institution:
· designing the contents of clients’ online platforms by compiling the biography of experienced physicians or the physician’s own biography, as the case may be, to highlight client’s strengths and expertise
· selecting the most suitable user’s experience as showcases published on online shops
SALES OF AESTHETIC MEDICAL EQUIPMENT AND PRODUCT

Raily Aesthetic Medicine have made a foray into the new area of selling aesthetic medical upstream materials since 2021. We are engaged in the sales of Chuzhen facial implant, a brand of e-PTFE facial implant imported from South Korea, and other surgical implants and aesthetic medical skincare products.

Chuzhen e-PTFE (expanded polytetrafluoroethylene) facial implant is rich in fluorinated ethylene propylene (FEP), with greater strength and good support, is easy to sculpt, anti-deformation, and can be shaped into a perfect realistic nose; when the material needs to be taken out, it only needs to do “blunt peeling”, and it can be taken out completely immediately, which is very convenient and will not cause damage. The histiocytes only grow into 1mm, and the material will not become hard after the Chuzhen product is used. The gap of the Chuzhen material is 60 microns, the porosity is larger, tissues and blood vessels are easier to invade and grow, and the Chunzhen material has the advantages of quick recovery, no displacement and better stability. Chuzhen e-PTFE facial implant is available in two hardness series, in nearly 100 types of molded bulk and block sizes. Chuzhen reinforced type: the hardness is close to that of cartilage, and it is used for filling bony tissues such as nose bridge, chin, zygomatic, temporal or orbit. Its hand feel is realistic and natural. Chuzhen soft type: it feels like soft tissue, and is used for filling soft tissues such as forehead, nasolabial groove or deep wrinkles.

RAILY skincare products mall is a professional aesthetic medical skincare products platform. Based on the values of customer first, we have selected domestic and foreign aesthetic medical skincare products with clearer effects, simpler ingredients, milder use and safety under the professional support and strict selection requirements of a team of senior skin experts. Whether it is skincare after aesthetic medical projects or daily skincare, RAILY skincare products mall can meet the diverse skincare needs of different customers. At present, the mall has been officially authorized by many domestic and foreign brands. From platform product selection to user service, RAILY skincare products mall is committed to satisfying customers. At the same time, the mall also provides customers with convenient skincare shopping experiences such as store self-delivery and express delivery

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