About Luboa Group

Luboa Group, Inc. operates as an e-commerce company in the People’s Republic of China (China). E-Commerce Platform In October 2018, Jiaxing Bangtong Electronic Technology Co., Ltd. (Jiaxing Bangtong) entered into a strategic cooperation contract with Beijing Xietongtianxia Technology Co., Ltd. (Beijing Xietong), pursuant to which Beijing Xietong agreed to act as Jiaxing Bangtong’s strategic consultant for Jiaxing Bangtong’s business, including but not limited to providing technical support to Jiaxing Bangtong’s development and operation of its e-commerce platform. Upon the expiration of this contract, Jiaxing Bangtong terminated the cooperation with Beijing Xietong, and instead, shifted to developing the e-commerce platform on its own. In 2019, the company’s e-commerce platform, Ingtona, completed initial development. Its Ingtona platform includes the following principal components: Website—www.Ingtona.com The company launched the website in September 2019. The PC-based website provides an intuitive interface that allows consumers to search for, find and purchase products. The website features adult products, overseas products and smart robots. It displays product information, such as description, specification, pictures, price, sales volume, applicable delivery expenses and customer review. Customers could browse and search for products by keywords and could sort product listings by keywords, sales volume and price. A customer needs to create an account on its website to place orders and purchase products. Various kinds of online payment methods are offered to customers at the time of checkout, such as WeChat Pay, AliPay and UnionPay. Customers could log into their accounts to check the status of their orders. The website displays approximately 200 adult products and 5000 imported items that span health, dietary supplements, maternity and baby care products, cosmetics, snacks, soft drinks, household supplies, toys and clothes from the United Kingdom, Germany, Japan, Australia, South Korea, Canada, the United States, Norway, Denmark, New Zealand and other countries. In addition, it contains smart robots sold directly by Chinese and foreign makers. Mobile App The company’s mobile application, Ingtona, would allow consumers to search and purchase displayed products on their mobile devices. Its mobile application offers similar features as its PC-based website. The company rolled out its mobile application in October 2019. WeChat Public Account Customers could also access the company’s e-commerce platform through its WeChat public account. Product offerings on the ‘Shopping Mall’ section of its WeChat public account synchronize with those on its website and are also classified into three large categories: overseas items, smart robots and adult products. The ‘Partners’ section of its WeChat public account allows parties to contact it who are interested in setting up their own stores and selling displayed products that would be directly sourced from manufacturers. The company started its WeChat public account in September 2019. The Business Model of E-Commerce Platform Registered users of the company’s Ingtona e-commerce platform could be divided into two categories – third-party merchants and customers. Third-party merchants, including enterprise merchants and individual merchants, sell various merchandise products on the platform, and customers purchase these products using the same platform. Utilizing the company’s multifaceted e-commerce platform, it plans to offer both online marketplace and online direct sales to its online customers. In the company’s online marketplace business, third-party merchants might establish online stores to offer products to customers through its online marketplace. The company would charge service fees on its merchants for its services, such as webpage maintenance, WeChat account access, and certain promotion activities. In addition, the company plans to provide marketing and advertisement services to its third-party merchants. In its online direct sales business, the company plans to acquire products from suppliers and sell them directly to customers. Before it could provide all fulfillment and delivery services, the company might rely partially on independent couriers to deliver products. Sometimes suppliers in the company’s direct sales operation might deliver products to its customers themselves. Third-party sellers on the company’s marketplace might also use their own logistics network or other third-party couriers to deliver products. Offline Adult Products Franchise—'Enjoy Color Space’ The company offers a collection of adult products on its e-commerce platform, as well as runs its own and franchised offline unmanned stores that retail adult products by automatic vending machines. Three franchisees have joined the company and opened three such stores in China as of September 2019. Merchants registered on the company’s website could apply to franchise with it. New franchisees are required to pay an initial fee for a franchise license and once a franchise store begins operations, franchisees are required to pay the company annual royalty. The company provides franchisees with the vending machines, products (including return/exchange services), franchise designs, site selection assistance, ongoing trainings, marketing support and access to its e-commerce platform. Strategy The key elements of the company's strategy are to continuously add products and categories that appeal to its customers to its platform; expand its offerings of smart robots and offer latest products in the AI smart product market sold directly by manufacturers; and with respect to its offline adult products franchise, open such stores across China through both franchise and its own investment. Intellectual Property The company has three software copyright certificates relating to its ‘Ingtona e-commerce operating system V2.0’. It also has a registered domain name (www.Ingtona.com). History Luboa Group, Inc. was incorporated in 2013.