【正文】 is Shiseido Aupres Za ? Shiseido Liyuan received ISO14001 for Environment Management System. ? SHISEIDO GROUP established its first flagship store, Salon des Cosm233。tiques, in Beijing. The new outlet will sell SHISEIDO and AUPRES cosmetics. SHISEIDO GROUP ? SHISEIDO GROUP in China Need Revising PwC 11 ? Shiseido China Group Structure Shiseido Zotos CITIC Cosmetics Co., Ltd International Business Dept, Shiseido Co., Ltd Shiseido Asia Headquarter Shiseido Liyuan Cosmetics Co., Ltd Beijing Flower Friends Cosmetics Sales Center** Overseas Management Legal Entity in China Business Scope Produce and sell Aupres in China Exclusive right to sell Shiseido in China Produce and sell Za in China 65% share 80% share *Asia Headquarter controls the Chinese market operation through the China representative office. ** It is 100% owned by Shiseido Liyuan Target Overview Source： Industry interview China Economic Information Network PwC analysis SHISEIDO GROUP China Representative Office* Need Revising PwC 12 ? Company Profile Shiseido Liyuan Cosmetics Co., Ltd. Company Type SinoForeign Equity Joint Venture Registered Capital (USD Mn) * Partner and Share Partner 1: Shiseido Co., Ltd. (Japan) Partner 2: Beijing Liyuan Co. ** 65% 35% Sales Revue in Retail Price 390 Sales in 2000 (RMB Mn) Total Employees 1,164 (including beauty advisors) Location Beijing Start Year 1991 Main Business Production and sale of Shiseido products(mainly Aupres) * According to the pany?s business license, its registered capital was raised from US$ million in 1991 to US$ million in 2000. ** Beijing Liyuan is the oldest pany designated by the government as a key cosmetics pany engaged in cosmetics production and sales in China, its own brands include HuaZi haircare products and Aoqi skincare. Target Overview Source： Industry interview China Economic Information Network PwC analysis Sales Revue 293 Need Revising PwC 13 ? Management Profile Management Experience Shiseido Liyuan Cosmetics Co., Ltd. Person in charge MORI YASU YAKA Position Gender HARA RYOIGHI Board Chairman General Manager Male Male Age 66 55 Education Undergraduate ? 1991now: Concurrently Board Chairman of Shiseido Liyuan Cosmetics Co., Ltd. ? 1991now: Director of Japan Shiseido Co.,Ltd. ? Prior to 1991: Director of Japan Shiseido International Dept. Job History ? 1996now: General Manager of Shiseido Liyuan Cosmetics Co., Ltd. ? Prior to 1996: Vice Director of Japan Shiseido Production Dept. 10 Yrs 20 Yrs Source： Industry interview China Economic Information Network PwC analysis Target Overview Need Revising PwC 14 ? Company Profile Shanghai Zotos CITIC Cosmetics Co., Ltd. Company Type SinoForeign Cooperative Joint Venture Registered Capital (USD Mn)** in 2000 Partner and Share Partner 1: Shiseido Co., Ltd. (Japan) Partner 2: CITIC*** Shanghai (Group) Co., Ltd. 80% 20% Sales in 2000 (RMB Mn) Total Employees 800 (including beauty advisors) Location Shanghai* Start Year 1998 Main Business Production and sales of “ZA” cosmetics Target Overview Source： Industry interview China Economic Information Network PwC analysis *It is in the Shanghai Zhangjiang Industrial Park. **Zotos increased the registered capital from US$ million in 2000 to US$ 30 million in 2001. ***CITIC is “China International Trust and Investment Corporation”, a financial, trading and investment pany. 30 in 2001 Sales Revue in Retail Price Sales Revue Need Revising PwC 15 ? Management Profile MAITA SHINZ? Board Chairman and Legal Representative Male 54 Undergraduate 10 Yrs Management Experiences Person in charge Position Gender Age Education ? Dec,1997now: Board Chairman of Shanghai Zotos Citic Cosmetics Co., Ltd. ? Jun,1996Dec,1997: Director of Shiseido AsiaPacific Corp. Headquarters ? Jun,1993Jun,1996: Shiseido AsiaPacific Corp. ? Jun,1993Jun,1996: Shiseido International Business Headquarters International Market Development Dept. ? Jun,1993Jun,1996: Director of Shiseido Cosmetics Enterprise Plan Dept. ? Dec,1990Jun,1993: Director of Shiseido Cosmetics Business Dept. ? Dec,1989Dec,1990: Chief of Shiseido Enterprise Plan Dept. ? Apr,1989Dec,1989: Director of IPSA Corp. Development Dept. in Shiseido Co., Ltd. (Japan). ? 19701989: Staff in Shiseido Osaka Central Branch Job History Shanghai Zotos Citic Cosmetics Co., Ltd. Target Overview Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 16 ? Company Profile Beijing Flower Friends Cosmetics Sales Center Company Type Collectivelyowned enterprise* Registered Capital (USD) 36,144 Partner and Share Trade Union of Shiseido Liyuan Cosmetics Co., Ltd. 100% Sales in 2000 (RMB Mn) Total Employees 4 Location Beijing Start Year 1996 Main Business Sales of Shiseido cosmetics** Target Overview Source： Industry interview China Economic Information Network PwC analysis * Since foreign panies were not allowed to run wholesale and retail businesses in china before 2001, Shiseido Liyuan Labor Union registered this sales center as a collectively owned enterprise to distribute imported Shiseido brand products in 1996. Collectively owned enterprise is one type of business legal ownership in China. **Flower Friends Cosmetics Sales Center do not have the right to import Shiseido brand pro