Message by Chairman

Dear value shareholders, board directors and customers,

First of all, thank you for your consistent support to our group!

We are a Hong Kong-based contractor specializing in the agency, design, procurement and installation of high-end spa and wellness equipment and commercial and domestic filtered water circulation systems in clubs, star-rated hotels, beauty salons and gyms. Our services are mainly classified into:

1. Brand agency services: providing high-end spa brands, including sauna, steam room and whirlpool and massage bed brand agency and promotion services;

2. Construction management services: providing spa Design, procurement and installation of body equipment and filtered water circulation systems; (2) Consultancy services.

3. Maintenance services: providing maintenance services for spa and wellness equipment and filtration water circulation systems.

Market value of Hong Kong spa wellness equipment and filtered water sequencing system

Looking at the overall construction industry in Hong Kong and Macau, the market for spa and wellness equipment is considered a niche market, and we

However, the prospects for filtered water sequencing systems in Hong Kong and Macau are infinite, according to data. . . Providing filtered water circulation systems and daily maintenance and maintenance services for commercial and domestic use is our business.

Supplier

We primarily determine the supplier's relationship by obtaining an exclusive agent/agent for the product. The suppliers we screened are the world's preferred brands. In particular, our suppliers of TYLO mainly include spa and wellness equipment, and filtered water equipment including TYLO, JASON, AquaVia, Sundance SPA, Arcilian, etc.

Stable supply, stable price, most suppliers provide product quality assurance, US NSF certification

Client

Our clients are mainly developers, main contractors and subcontractors, designers and construction engineers, high-end clubs and private villas.

We provide integrated services for a number of private residential projects and hotels, beauty salons and leisure centres in Hong Kong and Macau. The client entrusted us with professional equipment supply and technical support for the sauna, steam room, and jacuzzi and ice machine in the project.

Pricing strategy and guidelines

Our construction management services are project-based and the pricing is determined by the cost-plus method and has taken into account a number of factors including: (1) scope of the project; (2) size, complexity and specific technical requirements; (3) Estimated project cost; (4) estimated profit margin; (5) estimated project time; (6) current market conditions; and (7) any special terms (including payment cycle) or requirements This year, our winning rate was 67%. Competitive advantages l We are experienced in spa and wellness equipment and filtration water sequencing systems, and benefit from the huge demand for spa and wellness equipment and filtration water sequencing systems in Hong Kong, Macau and the Mainland. l We have an experienced management team (including sales and engineering staff) with more than 20 years of experience in spa and equipment and filtered water sequencing systems. l As a TEA member, we are able to share technical know-how, industry knowledge and potential market opportunities, and keep abreast of the latest market trends. l We maintain long-term cooperation with brand owners. Most brand agents are exclusive agents, especially TYLO brand. We have cooperated for more than 20 years and are familiar with their product types, performance and installation process.

Business strategy

Our business objective is to maintain the continued growth of our existing business and expand our market share in spa and filtration systems in Hong Kong and Macau. At the same time, our country's “One Belt, One Road” and “Guangdong, Hong Kong, Macao and Dawan District” calls for the development of domestic spa and wellness equipment and filtration water sequencing systems. As the world's freest economy, Hong Kong has a unique advantage. This advantage is reflected in talent, capital, financial services and other aspects.    Our business people will continue to develop the “One Belt and One Road” and “Guangdong, Hong Kong and Macau Bay Area” project development projects, especially in the design of spas and imported spa equipment. The company's mission of “Smart Innovative Life Dreamer” is to further develop technological innovation, team training and provide better service to customers. Chairman of the Board of Directors of the Industrial and Commercial Group

Vivian Chen
Executive Director
KS Aqua Engineering Company Limited