Temple Library Network Submitted To The SFC IPO Document

According to the world clothing shoes and hats net, on the morning of August 28th, China

The electricity supplier Temple library network submits the IPO file to the SEC, the stock code is "SECO", the issue volume and the issue price have not yet been announced.

The following is the prospectus summary:

Business status

According to the report of Frost & Sullivan, we are the largest integrated luxury service platform in Asia based on the total paction volume (GMV) in 2016.

Our GMV increased from 2 billion 572 million 600 thousand yuan in 2015 to 3 billion 470 million 200 thousand yuan (511 million 900 thousand dollars) in 2016, an increase of 34.9%.

In the 6 months ended June 30, 2017, GMV was 1 billion 924 million 600 thousand yuan (US $283 million 900 thousand), compared with GMV in June 30, 2016 for 6 months in June 30, 2016.

According to the Frost & Sullivan report, our online platform averaged over 3500 yuan (US $516.3) per month in the 6 months ended June 30, 2017, which is higher than that in Asia.

Online platform.

Since our establishment in 2011, we have attracted a large number of loyal users with strong purchasing power. As of June 30, 2017, we have attracted 15 million 100 thousand registered users and about 300 thousand active users in 2016.

Most of our customers come from China's middle and high income group. They have stronger desire to buy luxury goods and services through diversified online platforms that meet individual needs.

Our current SKU exceeds 300 thousand, covering 3000 international and local communities.

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With the help of exclusive luxury database, verification process and brand cooperation, we can ensure that every product is authentic and ensure the quality of products.

In order to provide one-stop shopping experience, we began to expand to high-end lifestyle services in 2014.

With the help of business intelligence system and specialized customer service, we can achieve the maximization of customer lifecycle value through accurate marketing and cross selling opportunities, and at the same time enhance the frequency of customers shopping on our platform.

Our online / offline integrated shopping platform includes Secoo.com website, mobile application and offline experience center.

The online platform is easy to choose goods, process orders, and provide convenient payment methods.

We also use offline experience center to supplement the online platform.

5 offline experience centers have been opened in hot shopping and business centers in mainland China, Hongkong, China and Malaysia, in order to enhance the reputation of temple libraries and enhance brand exposure.

We also cooperate with Versace and other brand stores to facilitate the delivery of our customers.

We have also built a credible and comprehensive global luxury and lifestyle service supply chain.

Our comprehensive global supply chain aims to satisfy customers' diversified purchasing preferences and needs.

Many first-line international brands have directly supplied us, including Tod, s, Ferragamo and Versace.

For other suppliers, we will also use sophisticated verification processes to ensure that all products sold on the platform are genuine.

We have achieved rapid growth in recent years: net revenue grew from 1 billion 743 million 100 thousand yuan in 2015 to 2 billion 593 million 800 thousand yuan in 2016 ($382 million 600 thousand), an increase of 48.8%.

The 6 months ended June 30, 2016 were 1 billion 33 million 100 thousand yuan, and 1 billion 346 million 700 thousand yuan (US $198 million 600 thousand) in the 6 months ended June 30, 2017.

Our GMV grew from 2 billion 572 million 600 thousand yuan in 2015 to 3 billion 470 million 200 thousand yuan in 2016 (511 million 900 thousand US dollars), an increase of 34.9%.

The 6 months ended June 30, 2016 were 1 billion 276 million 500 thousand yuan, and 1 billion 924 million 600 thousand yuan (US $283 million 900 thousand) in the 6 months ended June 30, 2017.

Our total orders increased from 623 thousand and 800 in 2015 to 953 thousand and 700 in 2016.

The 6 months ended June 30, 2016 were 374 thousand and 300, and 515 thousand and 300 in the 6 months ended June 30, 2017.

Our net losses in 2015 and 2016 were 222 million yuan and 44 million 600 thousand yuan (US $6 million 600 thousand) respectively.

The net loss in the 6 months ended June 30, 2016 was 74 million 900 thousand yuan, and the net profit in the 6 months ended June 30, 2017 was 52 million 300 thousand yuan (US $7 million 700 thousand).

Industry status

According to the Frost & Sullivan report, China's luxury goods service market has experienced rapid growth in the past few years, and will continue to maintain steady growth in the near future, mainly due to the growth of new high purchasing power groups.

According to the Frost & Sullivan report, middle income and high-income groups are expected to maintain a compound annual growth rate of 13.2% and 11.8% respectively from 2016 to 2021.

The middle and high income group is expected to account for 42% of China's total population by 2021.

The total sales volume of China's luxury goods and services in 2016 reached 250 million 100 thousand yuan (US $36 million 900 thousand), corresponding to the compound annual growth rate of 23.1% since 2012 and from 2016 to 2021 is expected to reach 18.2%.

Frost & Sullivan expects that China's online luxury goods and services retail market is expected to grow faster than other countries or regions.

Frost & Sullivan reports that the main growth drivers of China's online luxury goods and services retail market include: (1) the growth of shopping channel selection in China: (466 million 700 thousand) the number of Chinese online shoppers increased from 242 million in 2012 to 466 million 700 thousand in 2016; (2) the change in consumer demand and preferences: Chinese consumers' preference for luxury goods and services, from the old luxury brands to other designer brands and trend brands, which tend to have limited offline retail outlets in a few large cities of China; (3) the demand for three or four line cities increases: the annual growth rate of luxury goods and services in these cities is 15.4% times between 2012 and 2016, reaching two times of the second tier cities.

Frost & Sullivan reports that local enterprises have dominated the online luxury and service retail market in China, and the market share reached 71.1% based on total sales in 2016.

The main reasons are as follows: (1) mixing products and services: (2) localization operation: (3) rapid response.

In 2016, GMV of the temple library ranked first in the Asia Online luxury integration product and service market.

In the online luxury luxury electronic business platform, the share of temple Library in China and Asia is 25.3% and 15.4% respectively.

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Competitive advantage

Our growth and success so far are mainly from the following competitive advantages:

The leading online integrated luxury and service platform is able to capture huge industry opportunities.

It has high purchasing power, large number of loyal users, and a large number of cross selling opportunities.

- an excellent platform trusted by brands and customers.

- using a comprehensive global supply chain to optimize shopping experience;

- proprietary commercial intelligence systems and powerful data analysis capabilities;

A visionary founder, an experienced management team, and a strong corporate culture.

Growth strategy

Our goal is to become an integrated platform to provide a comprehensive range of high-end lifestyle products and services.

We hope to achieve this goal through the following strategies:

Further improve user and senior member experience to maximize customer lifecycle value.

We hope that with the support of technological innovation, we can further develop high-quality customer experience through high-quality online functions and first-class customer service.

-- strengthen brand relationship and expand product range.

We hope to work closely with existing brand partners and establish more direct supplier relationships with local and international brands, and we plan to further expand our product range and broaden our choice and product categories.

- further strengthening the capacity of big data.

We will further strengthen our technological infrastructure to pursue operational capabilities, especially through the use of big data technology to effectively utilize large amounts of user behavior data generated by web sites and mobile applications.

- expanding international coverage.

We may pursue strategic projects to expand our overseas businesses, including establishing websites, storage centers, payment systems and physical stores overseas, and promoting the brand of our temple to new overseas customers.

Challenges and risks

Our ability to achieve goals and execute strategies is subject to various risks and uncertainties, including the following factors related to our capabilities:

To maintain and enhance the identity and reputation of the temple library brand.

- to attract new customers and retain regular customers in a cost-effective way.

- attracting enough talents to achieve our growth, or effectively implementing our strategy;

- confirm the authorization and import procedures of commodities;

- manage and expand our relationship with suppliers and purchase goods on favorable terms;

Provide excellent customer experience and products to attract new customers and repeat customers.

- effective competition.

In addition, we are also faced with risks and uncertainties related to the company structure and business development in China, including:

The Chinese government may think that the contracts involving Beijing Auction and Beijing Secco are not in line with China's regulation on foreign investment in related industries.

We rely on VIE and its shareholders to engage in almost all businesses.

- a large number of uncertainties related to the time, interpretation and implementation of the foreign investment law of the PRC;

Our VIE shareholders may conflict with our interests.

We are a holding company. We may need to rely on dividends and stock allotment of Chinese subsidiaries to meet our possible cash and financial needs. But our Chinese subsidiaries may have risks and uncertainties to pay dividends according to Chinese laws and regulations.

China's economic, political or social environment or changes in government policies may have a substantial negative impact on our business and operation.

In addition, we may also face risks associated with investing in ADS, including:

Before this issue, our stock or ADS had no market for public pactions;

The trading price of our ADS may fluctuate.

ADS holders' rights are less than those of common stock holders.

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