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Nasdaq Ticker: PHH Corporate Presentation March 2025
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Forward-Looking Statements This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the “Risk Factors” section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, we undertake no duty to update any of these forward-looking statements after the date of this presentation or to conform these statements to actual results or revised expectations. 2
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Equity Snapshot 3 Company Name Park Ha Biological Technology Co., Ltd. Ticker Symbol Nasdaq Capital Market: PHH Share Price* (03/11/2025) $8.30 52 Week Range* (03/11/2025) $3.70-$9.17 Market Capitalization* (03/11/2025) $218.91 million Shares Outstanding (03/11/2025) 29.37 million Revenue (FY2024) $2.38 million Fiscal Year End October 31 IPO Underwriter Dawson James Securities, Inc. and D. Boral Capital LLC Note: *Source from Yahoo Finance; all numbers on this page are approximate.
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Company Overview Provide cost-effective solutions to skin problems and improve the confidence of women in need of skin treatment We focus on developing private skincare label, direct skincare products sales and franchise alliances promotions. Our Highlights 2016 Established Nearly 128 Products 8 Registered Patents 20 Registered Trademarks 5 Registered Copyrights 1 Domain Name Our Goal • Jiangsu Park Ha Biological Technology Co., Ltd. • Shanghai Park Ha Industrial Development Co., Ltd. • Wuxi Xinzhan Enterprise Management Consulting Co., Ltd. • Wuxi Muchen Biotechnology Co., Ltd. • Wuxi Mufeng Biotechnology Co., Ltd. Our Operating Subsidiaries 4 Note: As of October 31, 2024
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Corporate Structure Park Ha Biological Technology Co., Ltd. (“Park Ha Cayman”) (Cayman Islands) Park Ha Biological Technology (HK) Co., Ltd. (“Park Ha HK”) (Hong Kong) Park Ha Investment (Wuxi) Co., Ltd. (WFOE) (PRC) Jiangsu Park Ha Biological Technology Co., Ltd. (Park Ha Jiangsu) (PRC) Wuxi Xinzhan Enterprise Management Consulting Co., Ltd. (Xinzhan) (PRC) Shanghai Park Ha Industrial Development Co., Ltd. (Park Ha Shanghai) (PRC) 100% 100% 100% 100% 100% 5 Wuxi Muchen Biotechnology Co., Ltd. (Wuxi Muchen) (PRC) Wuxi Mufeng Biotechnology Co., Ltd. (Wuxi Mufeng) (PRC) 100%100% Abroad Domestic
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Key Milestones 2016 2017 2019 2022 Xinzhan incorporated Park Ha Shanghai incorporated First store launched Park Ha Jiangsu incorporated Park Ha Cayman incorporated 6 2023 Park Ha WFOE incorporated 2025 Wuxi Muchen & Wuxi Mufeng incorporated
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Business Overview Note: *As of October 31, 2024 Located in 1/2/3-tier cities in 14 provinces & 1 municipality in China Park Ha Providing skincare and cosmetic products Geni or 歌妮 Sell products from the “Park Ha” brand and other third-party brands with our permission 163.94 m² 17 employees 45 Franchisees Stores* 3 Directly Operated Stores* 6,018 customers Nationwide Coverage Directly & franchisees stores Franchisees stores Suppliers R&D center Training center 7 Heilongjiang Sichuan Guizhou Guangdong Hainan Jiangsu Shandong Shaanxi Anhui Liaoning Shanxi Henan Zhejiang Tianjin Hebei
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Company Products “Park Ha” skincare products • Basic skin physical protection • Exfoliation 128 products across 14 series, covers almost all common categories in the skincare industry • Collaborate with biological laboratories and supply chain systems • Expand reach via franchise partnerships • Sebum film repair to surface microecological balance • Anti-aging Star Products Little Blue Injection Serum • Transform technology and experience into cost-effective functional skincare • Contract with third-party manufacturers ensuring quality control 8
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Value-added Service Complimentary After-Sales Beauty Services • Offered in directly-operated stores and franchisees stores • Aimed at demonstrating effective product usage for best results • 30-45 minute complimentary sessions • Effective way to demonstrate how our products are used in order to deliver best results Light Beauty Experience P A R K H A 9
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Sales & Marketing Online to reach a wider audience, attract and engage new customers • E-commerce Strategies • Digital Coupons • Group-buying Deals Offline to build a closer relationship with customers to enhance experience with our products • A Prominent Product Trial Area • Trained Aestheticians • A Storage Area Online to Offline (“O2O”) Model to create an omnichannel seamless shopping experience • Online Communities: VR product trials, live online sales, and social app advertising • Official Platform Accounts: Short-formed video (SFV) platforms including Douyin, RED, and WeChat Video • Live Channel: Douyin live channel promotes through live streaming and broadcasting activities • High-quality products • Long-term customer retention • Attraction of new customers and franchisees • CEO & CTO: Over 10 years of experience • Strong roles in customer outreach Established Reputation Industry Experience Digital Strategy 10
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Competitive Advantages Innovative Social Marketing Model • Established regional brand effect through local salon activities and internet promotions • Organize virtual events via WeChat, connecting people interested in skincare • Target potential customers through interest-based community activities • Drive customer loyalty by building close ties through residential community events Stable Supply Chain System • Suppliers based in Guangzhou, Shanghai, Zhejiang Province, and Jiangsu Province • Use ingredients from large international and national suppliers • Functional and compatibility testing on raw materials • Supplier visits and factory inspections to ensure accuracy and reliability of information provided by suppliers Strong & Diversified Management Team • Founders with expertise in beauty, fashion, retail, and the internet • CEO & CTO each with over 10 years of experience in the industry • Strong leadership and deep understanding of customer needs • Focused on solving customer skincare problems with passion and commitment 11
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Management Team Xiaoqiu Zhang Chief Executive Officer Chairperson of the Board of Directors • Ms. Zhang became CEO of Park Ha Cayman on July 5, 2023. • Ms. Zhang has served as the CEO of Xinzhan since March 2016. • Ms. Zhang has over 10 years of business success, with a diverse knowledge of operations management and corporate governance. • She became a Director of Park Ha Cayman on October 11, 2022. • Ms. Zhang completed post-secondary education at Nanjing Political College in 2005 and graduated from Northeast University of Finance and Economics with a Bachelor’s Degree in Business Administration in October 2020. • Ms. Zhang completed the senior general manager program at China Europe International Business School in November 2020. Xiaoyan Zhu Chief Financial Officer • Ms. Zhu has served as CFO of Xinzhan since May 2016 and the CFO since July 2024. • Ms. Zhu served as Accounting Supervisor of Wuxi Yongxin Material Company since 1998 to 2000. • Ms. Zhu also served as the Chief Finance Officer of Wuxi Lantu Decoration Limited. since 2002 to 2006. • Ms. Zhu was the Chief Technology Officer and an executive director in the Wuxi Qingcheng Beauty Salon from 2005 to 2012. • Ms. Zhu received a technical college degree in Economics and Administration Management from Nanjing Political Science Institute of Politics in 2007. Xinyu Li Chief Technology Officer • Ms. Li became Park Ha Cayman’s Chief Technology Officer in July 2024. • Ms. Li has served as our Product Manager of Park Ha Shanghai since May 2021. • Ms. Li served as a secretary in XI’AN LEAD Metrology Co., Ltd from June 2005 to August 2006. • Ms. Li worked in foreign trade in Shanghai Longxin Glassware Co., Ltd from August 2006 to October 2007. • Ms. Li worked as business section chief in Shanghai La Fantcy Cosmetics Co., Ltd from November 2007 to June 2010. • Ms. Li completed undergraduate coursework as an English major at Xi’an International Studies University in June 2006. 12
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Board of Directors Chief Executive Officer Chairperson of the Board of Directors Xiaoqiu Zhang • Ms. Zhang became CEO of Park Ha Cayman on July 5, 2023. • Ms. Zhang has over 10 years of business success, with a diverse knowledge of operations management and corporate governance. • Ms. Zhang completed post-secondary education at Nanjing Political College in 2005 and graduated from Northeast University of Finance and Economics with a Bachelor’s Degree in Business Administration in October 2020. Yanan Shan Independent Director • Ms. Shan is our independent director and the chairman of the audit committee and a member of the compensation committee and the nominating committee of our Company. • Ms. Shan has over 18 years of experience in accounting. • She completed post-secondary education in Accounting at Suzhou University in 2014. 13 Li Wang Director • Ms. Wang has served as Director of Xinzhan since May 2018 and a Director of Park Ha Cayman since July 5, 2023. • Ms. Wang worked as a commissioner from November 2005 to December 2008 in Wuxi Wuzhou International Home and Live Mall Co., Ltd. • Ms. Wang has been pursuing a technical college degree in Law in Wuxi Taihu College since July 2021. Qixiong Sheng Independent Director • Mr. Sheng is our independent director and the chairman of the compensation committee and a member of the audit committee and the nominating committee of our Company. • Mr. Sheng is a seasoned professional with 22 years of experience in the automotive industry. • He completed post-secondary education in Marketing at Shanghai Business School in 2002. Xiaozhong Yu Independent Director • Mr. Yu is our independent director and the chairman of the nominating committee and a member of the compensation committee and the audit committee of our Company. • Mr. Yu has a wealth of experience in the legal industry as the Director of Beijing Tianchi Juntai (Wuxi) Law Firm. • Mr. Yu obtained a bachelor’s degree in Law from Jiangnan University in 2002. Da Yang Independent Director • Mr. Yang is our independent director. • Mr. Yang served as the market director in Beijing City New Space Technology Co., Ltd. since January 2021 • Mr. Yang obtained his college degree in music performance (music) from Capital Normal University in 2008.
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Growth Strategies Strengthening the Development of Own Products Expand our partnership with scientific research institutions to develop new skincare raw materials and products, and expand the scope of services to existing customers and acquire new customers by continually making significant investments in R&D. Intensifying Training Practice Open vocational training schools to provide professional training to our franchisee staff and to set up an internal training institute on beauty treatment to advance existing talents at the headquarters. Enhance Social Media-based Sales and Marketing Capabilities Continue to seek to improve brand awareness by using social media platforms, such as Douyin, RED and WeChat video, to promote our brand and attract potential future customers and franchisees. Improving Supply Chain Capacity Partner with additional third-party manufacturers to increase production and shorten the wait time. We also plan to establish partnerships with third-party warehouse and distribution centers to support our businesses. Seeking Strategic Investment, Acquisition and other Cooperation Evaluate and selectively seek strategic alliances, investment and acquisition opportunities in the beauty industry across China to lower production cost and increase future profit margin. 14
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12% 14% 74% Financial Highlights Revenue Breakdown FY2023 Audited FY2024 Audited Products sales – Non-franchisees Product sales – Franchisees Franchise fees 2.46 2.38 FY2023 Audited FY2024 Audited Revenue US$ Million Fiscal year ended October 31 15% 15% 70% 15 The revenue decrease from FY2023 to FY2024 is primarily attributable to the decrease in franchise fees.
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2.15 2.19 FY2023 Audited FY2024 Audited Financial Highlights US$ Million Gross Profit and Gross Profit Margin US$ Million 0.85 0.48 FY2023 Audited FY2024 Audited Net Income 16 87% 92% Gross Profit Margin % Fiscal year ended October 31
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Contact Park Ha Biological Technology Co., Ltd. Email: ir@parkha.cn Tel: +86 400 012 7562 Address: 901, Building C Phase 2, Wuxi International Life Science Innovation Campus 196 Jinghui East Road Xinwu District, Wuxi, Jiangsu Province People’s Republic of China 214000 17