Valuation discussion, page-3

1. Sales: from Report Note 5, Sale of Zinclear was only increased by 3.8%; Alusion was decreased. The only product that increased handsomely is Sale of Sunscreen Products approximately by 1400%. They should focus more on Sunscreen Products

2. inventory: If the demand is anticipated strong next year by the management, 30% increased inventory is understandable.

3. Dividend: They only have cash $325K and they still decided to pay dividend. I think they are trying to keep shareholders and they think the cash flow is very strong (please see below). But it would not be a good business decision. I would prefer them using the cash to grow the business



4. Share price: I think 10-15 P/E is reasonable in manufacturing sector. But share price is emotional rather than rational. If good news comes up tomorrow, it could shoot up to 50 P/E straightway