Ann: Appendix 4C - quarterly, page-10

I am starting to get used to the +/- 30% weekly swings. I buy the whole biz model; I see how SE Asia will likely develop its' e-commerce value chain which still has many imperfect parts. Have spoken to those involved in online/offline payments, fulfillment logistics who, like Ensogo, are burning cash to scale. It is not pretty but nonetheless a scale-or-bust strategy involves huge risks and hopefully huge rewards.

On the ground (Thailand), I see how Ensogo site and offerings have improved greatly and how (surprisingly) well-known the brand is. From consumer pov, there is still depredation of keying in your credit card info so Stripe-like payment network are getting traction (LinePay, Omise), while fulfillment/logistics (ThaiPost, EMS, aCommerce) are trying to figure out how to make nationwide delivery effective (instead of Bangkok-only).

Some of the bigger challenges are (lack of) govt policy related (taxes, customs, etc) but this is being slowly addressed. Tax issues drive most small Thai SMEs underground into personal Facebook, Line pages where a thriving e-commerce biz is being conducted with cash-only transactions.

My last point as an investor is that Ensogo is like a private startup (in fact, some A-series private startup raises have valuation higher than Ensogo mktcap). But the positive side is, unlike the Hotel California startup investing where you check-in and cannot check-out, Ensogo is listed (thanks to ASX), provides an exit venue to get 20c to the dollar if things get rough. Also, fact that Ensogo management have passed Fidelity, Wardburg, VIPShop due diligence suggests there is more $$ behind to execute the plan (instead of leaning on retail investors). The only question is if management can execute.