About Cosmos Group Holdings

Cosmos Group Holdings Inc. operates as a specialty commercial logistic company. The company operates through Lee Tat Transportation Int’l Limited, its wholly owned Hong Kong subsidiary (Lee Tat). Lee Tat provides logistics and delivery services to commercial clients located in Hong Kong. The company offers services to the cable supply industry in Hong Kong, and expects to provide small parcel delivery service in cities near Shanghai in the near future. The company serves up to 70% of cable suppliers and cable trading companies in Hong Kong and delivers cable wire material to different contracting sites. The company provides its delivery services through direct delivery (Direct Model) and through its network of subcontractors (Network Model), as well as other custom value-added logistics services. In Hong Kong, the company direct delivers small goods and primarily works with six network business sub-contractors to find the most competitive partner to deliver its client’s cable products. During the course of the company’s business, it has collected data relating to consumer behavior. The company intends to develop a proprietary database and provide data analytics regarding consumer behavior in the commercial logistics and vehicle sales and leasing industries. Discontinued Operations In 2020, the company approved to discontinue and exit its artificial intelligence educational business. Sales and Marketing The company expects to continue to focus on providing express delivery and logistic services to cable and data equipment suppliers in Hong Kong and may be seeking other opportunities in China. The company anticipates focusing on business to business marketing, cold callings or attending local chamber of commerce events to obtain customers. In the near future, the company expects to focus on consolidating its Hong Kong operations. Major Customers All of the company’s major customers are located in Hong Kong. During the year ended December 31, 2020, the company’s customers were Hip Tung Cables Company Limited, Lee Tat Logistic Holding Limited, and Peaceman Cable Engineering Limited. Seasonality The company’s logistics business is highly dependent upon the e-commerce industry in Hong Kong and China. In Hong Kong and China, the company experiences peak demand for its services during the double eleven festival and the Chinese New Year celebrations. Competition The company competes with leading domestic express delivery companies, including SF Express, STO Express, YTO Express, Yunda Express, and EMS. The company also competes with international logistics companies, such as federal express and DHL. Government and Industry Regulations As the information of the company’s customers or clients is preserved in Hong Kong, the company needs to comply with the Hong Kong Personal Data (Privacy) Ordinance.