Impairment of inventory
Cosmetics and Skincare are fashionable products, whose trends in products and packaging are always changed. The Company, thus, carries the risk of inventory impairment in case that consumer trend has significant changed so that the inventories are devalued. However, the Company continuously performs market and customer behavior survey, including analyzing sales statistic, such as sale turnover, product life cycle, etc. These lead to effectiveness on product sourcing, which is well planned to be in line with the market demand. In addition,
the Company has policy to monitor stock aging continuously for inventory management. Therefore, the Company believes that the effect of this risk deems insignificant