Magic Holdings International Limited is an investment holding company. The Company is principally engaged in the research and development, manufacture and sales and marketing of facial masks and other skincare products, including MG brand in China. The Company primarily focuses on offering a diversified mix of facial mask products with different characteristics to cater for different skin types in China. During the fiscal year ended June 30, 2010, the Company introduced three new series of facial masks products, including Chinese Herbal Skincare, Spring and Flowing Golden Words. As of June 30, 2010, it had 98 distributors and the number of terminal stores coverage was 3,828. As of June 30, 2010, the Company had 11 series and 141 product categories. Its peel-off facial masks products include Basic, Stretch, Plant Life, TU, Spring, Stretch, Flowing Golden Words, Chinese Herbal Skincare and Eye masks. Its wash-off facial mask products include JiJi, DIY and cream facial masks.

Magic Holdings International Limited (“Magic Holdings” or the “Company”) is a skincare brand enterprise which concerns female beauty and health. We are principally engaged in the research and development, manufacture and sales and marketing of facial masks and other skincare products including MG brand in China.

　　We focus predominantly on and offer a diversified mix of facial mask products with different characteristics to cater for different skin types in China. MG brand had 11 series and 141 types of facial mask products. We had 75 distributors and one retailer with 3,330 points of sale spread over 21 provinces, two autonomous regions and four municipalities in China. We had the largest market share in the facial mask industry in China thus becoming the leading brand in the facial masks industry in China.

　　In looking to strengthen the brand’s leading market position by satisfying the needs of different skin types and consumer needs, we intend to diversify our product range and offer cosmetic and skincare products to the market. Our company entered into the Magic-Hanbul JV agreement, under which we agreed to market, sell and distribute cosmetic and skincare products under the “It’s Skin” and “ICS” brands in Greater China and manufacture skincare products under the brand of “Keep UP” in Korea for us. These new product ranges and brands will enable us to offer a more comprehensive product portfolio and differentiate our target markets with unique brand names catering for changing consumer needs.