Yunnan Botanee Bio-Technology Group Co. LTD

Yunnan Botanee Biotechnology Group Co., Ltd. is a specialized cosmetics manufacturer listed on the ChiNext board of the Shenzhen Stock Exchange since 2021. The company focuses on developing a range of skincare products, particularly targeting sensitive skin, utilizing pure natural plant-derived active ingredients. Its core brand, Winona, along with other brands such as Winona Baby, AOXMED, Beforteen, Za, and PURE&MILD, form a comprehensive brand matrix aimed at addressing various skin needs. The company integrates internet-based sales channels to enhance its market reach and consumer engagement. Botanee's operations encompass a robust supply chain and a commitment to independent research and development. The company employs an omnichannel sales model, combining offline and online strategies to optimize customer experience and sales growth. It has established local warehouses and third-party distribution centers to streamline logistics and improve delivery times. With a strong emphasis on product quality and safety, Botanee maintains a comprehensive quality management system and invests in technological innovation through its research institutes in various locations, including Yunnan, Shanghai, Japan, and France.

1.Brand matrix advantages Botanee has a clear brand positioning and excellent brand shaping capabilities. Since its establishment, the Company has been dedicated to developing products for sensitive skin. After years of accumulation, it has built multiple brands centered around Winona which cover various areas such as soothing, sun protection, whitening, anti-aging, spot removal, and acne treatment. Among them, Winona focuses on sensitive skin care and modification, and it is the main brand that the Company has long focused on and deeply cultivated. This brand has a complete product line, including skincare products, medical devices, and cosmetics. In addition to Winona, we also own other brands such as Winona Baby, AOXMED, Beforteen, Beauty Answers, Za, and PURE&MILD. These proprietary brands have different market positioning and can cover different consumer groups. Our brand matrix has basically taken shape, the brand hierarchy has been initially established, and brand advantages have gradually been established. Furthermore, we have cultivated high brand loyalty through professional brand image building and the accumulation of private domain traffic. With excellent product quality, precise marketing strategies, the reputation of professional brands, and the exploration of new models of offline experience and online sales, we have accumulated a group of highly loyal customers. 2. Sales channel advantages We adhere to a strategy that integrates online and offline channels, and promote their coordinated development. Online channels have achieved rapid growth in sales revenue through comprehensive online coverage, optimization of public domain traffic, and establishment of private domain traffic. In addition, we adopt a professional offline channel coverage strategy, focusing on sensitive skin care and emphasizing brand specialization. Offline sales mainly rely on OTC chain customers, commercial companies, and regional distributors. 3. Research and development technology advantages Botanee attaches great importance to product R&D, and insists on technological innovation. With a strong R&D team and a complete R&D system, we have invested in establishing the Botanee Research Institute, and built research institutes and joint laboratories in Kunming, Yunnan Province, Shanghai, Japan and France. At the end of the Reporting Period, we had more than 400 comprehensive R&D personnel covering various research departments, including basic research, product and raw material evaluation and screening, consumer research, process technology research, packaging development, formula research, and integrated innovation. 4. Product quality advantages We run a comprehensive quality management system covering product research and development, raw material procurement, production, logistics, and warehousing management. Our quality management system complies with certification standards of GB/T19001-2016/ISO9001:2015 Quality Management Systems - Requirements. During the Reporting Period, we strictly complied with the provisions of various laws and regulations and followed a series of technical management specifications such as GMPC and GB/T19001-2016/ISO9001:2015 Quality Management Systems - Requirements to organize production activities, aiming to achieve comprehensive quality management. 5. Targeted marketing advantages Our main sales channel is online. After years of internal training and external recruitment, the Company has built an experienced and highly skilled e-commerce operations management team. Through years of practice, the e-commerce operations team has established a mature operating model and accumulated rich marketing experience. 6. Refined information system management capability We possess excellent capabilities in information system development and implementation. With a “horizontal + vertical” architecture, our information system connects different business processes of various divisions, brands, and departments, ensuring precise management of each business aspect and providing consumers with a smooth and efficient experience. 7. Operational management team advantages We run a professional, highly capable, and experienced operational management team with high operational efficiency, and have accumulated extensive practical management experience in such areas as cosmetics R&D, production, and sales. Recognizing the characteristics of the cosmetics industry, we have established a comprehensive supply chain management system covering product R&D, raw material procurement, production organization, and product sales. We are committed to in-depth management in every aspect of our operations, so as to respond rapidly in rapidly changing market environment.