Presentation from SUMEC

2018-8-24

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 CONTENTS
01 SUMEC Group Profile

02 SUMEC Textile

03 Production Base of SUMEC Textile

04 Core Soft Home Category

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 PART ONE

01 SUMEC Group Profile

| Corporate Profile | Main Business of SUMEC |
| Position in Industry | Business Performance |

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 Corporate Profile

Core Member of Vanguard in mixed

 1978 SUMEC Group was established. Fortune Global 500 ownership reform
 1998 Mixed Ownership Reform was launched.
State-owned Development
 2004 Incorporated into SINOMACH
Enterprise History of 40 Years
 2017 SUMEC got officially listed.
Listed Platform

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Main Business

| Bulk Commodity and

| Equipment Manufacturing |
Equipment Import |

| Textiles and Garments | | Maritime Engineering | | Energy Business| | Vehicle Components |

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 Position In Industry Business Performance

Turnover for 2017 is 6.5 Billion USD

No.135
Unit: Billion USD
No.44 7 Exports 6.5
Imports
Fortune China China's Top 6 Imports & Exports
5.3
500 100 Export 4.6 4.7
Enterprises 5 4.5

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3.3 3.3
3.1
2.8 2.9
3 2.4 2.4

No.53 No.1
2 2.1 3.1
1.8 2.9
1.7
2 1.6 1.5 1.5
1.2 1.2 1.3 1.3 2.3 2.4
2.2
0.8 0.9 1.8
0.6 1.7
China's Top Jiangsu Import 1 1.5

100 Import and Export 0 0.6 0.7 0.8 0.8 0.9

Enterprises Enterprises 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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 PART TWO

02 SUMEC Textile Profile

| SUMEC Textiles| Industry Position and Performance|
| Retailer Partners | Oversea Branches | Key Home Category for US|
| Brand Strategy| R&D Platform| Vertical Supply Chain | Show and Exhibition|

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 Brief Introduction
SUMEC Textile Company Limited

--Core member of SUMEC Group Corporation which is a public company in China

(Stock Code: SH600710)

--Established in 1997, annual business turnover of approx $600 million for 2017

--Soft home turnover is $210 million for 2017

--Wholly-owned 9 manufacturing plants for home and garment in Nanjing, China.

with over 6,500 employees

--Integrated textile company with global structure

--Complete industrial chain from designing to distribution

New Sumec Textile headquarters in Nanjing

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 Industry Position

Household Textiles Various Garments for Export

 Ranked 1st largest in China for blanket export to US market  Ranked 1st largest for garment exports to EU

 Ranks 3nd largest in China for bedding export to US market  China's 3rd largest exporter of textile and garments

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Our Retail Partners

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 Oversea Branches

With our global

branches, we can
serve our customers
with better
understanding
& efficiency.

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Core Category for US Market
Pet Bed 6%

Other 5%

Fashion
Bedding, 23%

Bath rug and foam product, 6%

Sheet set (woven and warm sheet ), 20%

Cold weather comforter 11%

Throw and blanket 22%
Down Alternative
comforter 9%
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Brand Strategy • Acquired Berkshire Blanket in 2016

• Largest merchandiser, designer and importer of consumer

blankets in the United States

• Supplier of more than 10 million units per year.

• Managing the entire blanket, throw and warmth sheet category

enabling key retail customers to optimize product assortment
and maximize profit.

• Extensive new product development and packaging capabilities.

• Proprietary marketing, brand management expertise

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R&D Platform

• Strong design team from US, India and

China

• Reliable sample development and

execution

• Large group of fabric suppliers in

diversified fabric qualities

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R&D Platform Mood Boards For SS18

BLOSSOM

BOHEMIAN RHAPSODY

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R&D Platform Mood Boards For SS18

STARLIGHT

STARLIGHT
INDIGO DREAMS:

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 Vertical supply chain

 Co-operated with China Hi-Tech and Jiangsu Senjo Chemical Fiber Cp., Ltd to construct a vertical supply chain for
polyester fabric.

Spinning Weaving Dyeing

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 Showroom Locations and Exhibition

We have a global footprint in our permanent showrooms and trade show exhibits .

Nanjing

60 Madison Ave, NY

Canton
Heimtex

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 PART THREE

03 Production Base of SUMEC Textile

| Production Base In China | Oversea Production Base|
| Soft Home Plants in China | Facility in Soft Home Plants|
| QA & Testing Center|

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SUMEC Production Base In China

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 SUMEC Oversea Production Base
Cambodia Production Base (cooperated partner)
Myanmar Production Base

Vietnam Production Base (cooperated partner)

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Plants for Soft Home in China

SUMEC Innovation Home Textile Co.,Ltd Jiang Su SUMEC Home Textile Co.,Ltd

Jiangsu SUMEC Star Textiles Co.,LTD

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 Facility in Soft Home Plants

Automatic hanging system

-- Efficient in house conveyance
-- Costing saving for conveyance
-- Clean

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Facility in Soft Home Plants

Automatic Pillowcase Machine

Automatic Sheet Machine
Capacity:15pcs/minute
Capacity:10pcs/minute

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Facility in Soft Home Plants

Down and Feather Division

Five-box down sorting machine

Fully- automatic washing machines

RDS certificate
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QA & Testing center

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 PART FOUR

04 Market Update and Core Category for

Soft Home
| China Updates|
| Fashion Bedding| Quilt and Coverlet|
| Down Alternative and Mattress| Sheet Set|
| Cold Weather Comforter| Throw and Blanket|
| Foam Product| Bath Robe and Pet Bed |
| Program and opportunity|

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 China Updates

Soft home center of the world

• Large group of fabric suppliers in diversified fabric qualities.

• Efficient and skillful workforces

• Complete and vertical supply chain

• Reliable execution and infrastructure

Cost Threats

• Environmental policies influence the dyeing and printing factory capacity and cost.

• Short in labor and labor cost increasing

• Material cost increasing like poly and carton board

Hedge cost increasing

• Vertical supply chain building, expend abundant emission capacity in north of JiangSu

• Automation equipment facility applying

• Arrange advanced payment to lock material cost base on forecast with partnership suppliers

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Core Category- Fashion Bedding BIAB for Walmart

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 Core Category- Fashion Bedding – Multi Pieces set

7PCS set for Macys 8PCS set for BBB 8 PCS set for Costco
10 pcs set for Macys

11 pcs set for Walmart 10PCS set for Khols 3 PCS set for Macys
8PCS set for BBB

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Core Category- Quilt and Coverlet

Printed quilt for Macys

5 PCS set for BBB
Solid quilt for Macys

5pcs microfiber quilt set for Target

Microfiber 6 pcs quilt set for Tjx
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Core Category- Down Alternative and Mattress Pad

85gsm microfiber DA
comforter for BBB

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Core Category- Down Alternative and Mattress Pad

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Core Category- Down Alternative and Mattress Pad

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Core Category- Sheet Set (Woven sheet and Fleece sheet)

120gsm 6 pcs sheet set for Costco 100gsm microfiber sheet set for Macys 120gsm microfiber for Sams Club

Fleece sheet set for Meijer

Fleece sheet set for QVC Fleece sheet set for Khols

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Core Category- Throw and Blanket

Fur throw
Brand for throw and
blnaket
Velvet plush blanket Fleece blanket

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Core Category- Foam product - Baht Mat

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Core Category- Foam product - Topper and Pillow

Cooling pillow

Travel pillow

Memory foam topper

Memory foam pillow
Memory foam pillow

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Latex Pillow Shape - Options
Size: same as JCP current size 18X30” or customized size

Weight : 1.2kg each or customized size

Message Pillow Spike Pillow

Contour Pillow Conventional Pillow

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Core Category– Bath Robe

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Core Category– Pet Bed

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 THANKS

Contact us:
SUMEC Building, No. 198 Changjiang Road,
Xuanwu District, Nanjing City

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