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Galaxy-eSolutions.com

Hybrid eCommerce ecosystem on blockchain in the multi-

billion preowned and refurbished market

White Paper/

Business Plan (Abstract)

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Section 1: Company Background

General Overview

“The First-ever ICO on a Global B2C eCommerce Business with Real Tractions”

Galaxy eSolutions Limited (‘GES’) is a Global Cross-border eCommerce business that

is set to become the Market Leader in Pre-owned and Refurbished Consumer

Electronics Sector. GES is headquartered in Hong Kong and set its vision on Global

Markets.

The Pre-owned and Refurbished consumer electronics market is/has:

▪ Double Digit Percentage Growth Year on Year

▪ 30BN USD Market Size by 2020 (Just phones alone)

▪ Double Digit GP%

▪ Fragmented industry with chance for consolidation

▪ Environmental Friendliness (Government and Consumer Support)

GES targets to exceed 1BN USD annual sales 6within 5 years’ time.

Company Overview

▪ Global Cross-border eCommerce Specialist

▪ Incorporated in HK

▪ Started in Dec 2016

▪ Main Products now: Refurbished Apple

phones, Refurbished DJI Drones, etc.

▪ Overseas support office: Philippines, Europe,

Australia

▪ Total Staff: 55

▪ Projected Sales (2017): 20M USD

▪ No. of Country Markets: 26 (Europe, ANZ, NA,

etc)

▪ Planned Country Markets: over 50

▪ No. of Current Websites: 4 main sites

▪ (Note: 30 if including subdomains which are

localised with local languages, marketing and

payment options)

▪ Proprietary ERP system

▪ Full eCommerce Solutions (Logistics, Fulfilment

centre, payment gateway solutions, RMA

support, e-Marketing etc)

Mission and Vision

Our Mission

▪ To build a Pre-owned and Refurbished B2C/B2B eCommerce

Ecosystem.

▪ To become the market leader in this industry.

Our Vision

▪ To make the world more environmental friendly thru recycling and

sharing economy.

Our Goal

▪ To Exceed 1BN USD sales in 5 years’ time.

▪ To build a B2B/B2C buy-and-sell marketplace based on blockchain

that accept both traditional and digital currencies.

Galaxy-eSolutions.com

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Section 2: The Business and Industry

GES Pricing/Quality Matrix:

▪ Foxconn Quality: 95/100; Price: 95/100.

▪ GES Quality: 85/100 ; Price: 70/100.

▪ Misc Competitors: Quality: 65/100; Price: 65/100.

Section 3: The Market: Products and Consumers

GES Solution

▪ Direct B2C/B2B model which will later evolve to become a marketplace and

ecosystem (reduce market supply chain inefficiencies)

▪ Strategic investment partnership with a fully licensed factory supplier which

operates in a Shenzhen China bonded zone (Guarantees stable and quality

supply, secures credit term, obtain supply chain advantage etc)

▪ Work with factory partner to establish standard grading and stringent QC

control and checks, and RMA program (quality assurance and remove grading

inconsistencies)

▪ Work with current investor, who owns one of the largest private logistics

company, in direct freight and local fulfilment solutions

▪ Raise fund backing to increase stock level in accordance to optimal stock level,

and offer local fulfilment when deemed feasible (improve consumer experience)

(Resellers)

(Resellers)

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Section 4: The Traction: Now and Future

Sales, Contribution Margin and No. Units Sold Growth in 2017

▪ No of phones shipped/day: About 200 pcs/day

▪ No. of Country Markets: Over 30 countries

▪ Web Traffic: About 2.5M/month

▪ No. of Customers: Over 30,000

▪ No. of Subscribers: Over 70,000

Section 5: The Marketing and Growth Strategy

Competitive Advantage- Supply Chain and Partnership 1. Supply Chain Advantage

Furunzhi (Major stakeholder: ‘CNS’; With full management rights) is a licensed factory based in Shenzhen Yanian Bonded Zone China to refurbish Apple and Samsung products. Its floor space is about 5,400QM and current capacity is up to 1000 pcs/day. This factory has been certified as complying with ISO 9001 and 14001 standards. CNS also has stakeholding interest of 45% in GES. Tailored production plan to meet GES B2C projections and requirements; Credit term support; Best price and quality mix support; Supply stability and priority.

2. Logistics Solution and Location Advantage Cargo Services Far East was established for over 27 years as one of the leading logistics providers which, overseas presence in more than 80 countries and has more than 10,000 staff. Cargo Far East is a stakeholder of GES, provides logistics solutions. When GES volume gets up much higher, it will be able to utilize Cargo Far East overseas warehouse for local fulfilment.

Core Competitive Advantage – Location Advantage HK Competitive Advantages: Hong Kong is a duty-free port among major economies. With low corporate tax system (16.5%) that brings competitive advantage to the business. Hong Kong is a major trading hub for consumer electronics; Estimated 30% of all second hand phones are sold/auctioned off here. To be near to Shenzhen, the Consumer Electronics Capital of China, is critical due to supply and logistical issues.

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Section 6: The Financials

Objectives:

▪ To achieve clear profitability by end of 2018;

▪ To exceed 1BN USD sales by 2022;

▪ To reach a valuation of 300M USD by end of 2022;

So far, about 400,000USD has been used to scale to current level, and monthly operational

breakeven point was reached in August. GES is seeking fund to fasten the growth pace

aggressively since it believes it found the right partnership, right timing and the right opportunity.

The Core Metrics

Average Order Value: 320USD, Stock Turn: 52, Cash Cycle Turn: 52

Note: The above metric simply suggests that with a working capital of say 5M USD, it will allow

us to do 250M USD annual turnover. The cash cycle turn will be improved very soon due to a

new payment gateway agreement which will shorten the sales proceeds settlement from 7 days

to 2~3 days.

Quarter in 2017 No. Units

Sold/Day Sales (USD) GP% CM% NP%

Q1 (Actual) 1,302 $419,103 21.5% 5% -25%

Q2 (Actual) 8,897 $2,944,398 19.6% 5.5% -2.5%

Q3 (Actual) 16,120 $5,329,256 22.5% 6% 0.12%

Q3 (Projection) 28,862 $9,548,387 23% 6.5% 2.96%

Remarks: Contribution Margin is GP less total direct variable costs of logistics, marketing, transactional, and IT fees.

.

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Section 7: The Offer and Returns

The GES Tokens and Value Model

The GES tokens will derive values from:

1. The GES tokens can be used on GES sites for purchases, hence giving all GES Token purchasers a peace of mind and safeguard the interest. The redeem value of each GES tokens will be based and pegged to the par value determined by the ICO round: [Total raised amount / Total Allotted GES tokens = GES token Par Value]

2. 20% (for total) of GES annual profits will be used to buy back GES issued tokens from the market and ‘burn’ them. If not all tokens are fully allotted in the crowd-sale/ICO, then the 20% profit allocation will be on pro rata basis, using the following formula: [Allotted Number of Tokens / Number of Initially Issued Tokens x 20% of annual profit]

Offering details:

▪ Maximum GES tokens to be sold 300,000,000 ▪ 10,000 GES tokens can be bought by 1 Ether

(Remark: Revised on January 2018 for main ICO round. Presale backers will be

allocated the extra tokens accordingly manually prior to ICO) ▪ Percent of GES Tokens to be withheld by GES: 10% ▪ Maximum number of Ethers to be raised: 25,000

Offer Schedule:

▪ ICO: 28th Jan 2018 to 5th Mar 2018 (Remark: Revised on January 2018 for main ICO round. Presale backers will be

allocated the extra tokens accordingly manually prior to ICO)

Market Buyback and Burn Model

GES offers Buyback and Burn value disbursement method, which is more efficient,

transparent, and which will not be considered as securities according to regulators,

thereby not subject itself to government interference.

Technically speaking, GES will systematically buy GES Tokens on exchanges and “Burn”

them. “Burn” means that purchased tokens will be taken off the market permanently,

resulting that the total number of GES Tokens will be decreased, thereby increasing the

value of remaining GES Tokens over time.

20% of GES annual net profit will be used for Buyback and Burn and this will be the first

cut profit that precedes any other pay-outs.

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Section 8: The Team

The Team - Management

Yuen Wong

Co-Founder & CEO (Chief

Executive Officer)

Joe Chan

CTO (Chief Technology

Officer)

Erik Hohmann

CMO (Chief Marketing

Officer)

Chris Wong

COO (Chief Operation

Officer)

Professional and Compliance Team

Simon Choi

Fintech, Blockchain & Global ICO

Lawyer

Pranav Burnwal

Region Head at Blockchain

Education Network & Senior

Application Developer

Brennan Bennett

Blockchain Technology Consultant

Business and Advisory Team

Jordan Miller

Founder at Paradigm Agency

Abdulaziz Aljouf

Founder & CEO at Paytabs.com

Dr. John Wong

Executive Vice Chairman at

Executives' Global Network

Neil Thomas

CEO & Founder at Muzaara

Stanley Lee

The President at E-Commerce

Association of Hong Kong

Ken Wong

GM at Continental Global Service Ltd &

Executive Officer at E-commerce

Association of Hong Kong

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Section 9: Additional and Misc Info

▪ Contact Info:

▪ Contact method

▪ Website: https://galaxy-esolutions.com

▪ Email: Marketing@galaxy-esolutions.com

▪ https://twitter.com/Galaxye_eSol

▪ https://www.facebook.com/Galaxy-e-Solutions-1244602885645627/

▪ https://www.linkedin.com/company/13462257/

▪ https://medium.com/@GalaxyeSolution

▪ https://t.me/gesico

▪ https://www.reddit.com/user/Galaxy_eSolutions/

https://www.youtube.com/watch?v=fYuXpIJRNJ0

▪ Please click on link below to download a full version of White Paper

▪ http://whitepaper.galaxy-esolutions.com/

Last updated: January 9, 2018