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2

Highlights

Exceptional customized furniture (SPO) mass-manufacturer in China

➢ SPO sales contributes over 50% of revenue, a CAGR of 20% in last 3 years boosted group’s

gross margin over 40%.

➢ Targeting top 3%~5% of pyramid consumers in the high-end furniture market, Stable in

market fluctuations.

➢ Equipped with a vertical furniture production line, offering various products in one-stop

shopping and speedy shipping service.

➢ Long-term and interdependent relationship with key clients.

Custom-made furniture demanding in North America outperformed the average

growth

➢ Sales to North America has now accounted for 90% of the turnover, Mid/high-end custom-

made furniture enjoys a faster growth than the US market growth, which climbs YoY at a

speed of 3%.

➢ 1.Rooting US market and trickling in European, Australian and China domestic market by

OEM abreast own-brands.

3

Direct sales channels to leading brands in North America

➢ Permeated through over 50% admitted upmarket retailers in North America and actively

capturing new market share.

➢ Over 10 years relationships with leadings brands and built mutual reliability.

➢ Serve clients with good quality, short delivery time and reasonable price.

Just in Time(JIT) as our credo

➢ One stop shopping service from designing,

sampling, producing to delivery.

➢ Nearly 200 thousand of SKU, 1000 types of

fabrics and leather collection.

➢ Accomplish production within 17 days,

consumers can receive their purchases

within 5-7 weeks after order.

Outstanding Profitability

Item 2015 2016 2017 2018

EPS（NT$ ） 10.42 10.93 10.63 9.70

ROE( %） 75.17 57.42 48.02 35.14

Highlights

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CONTENT01 Company Profile

02 Products & Operations

03

Performance

04 Competitiveness

05

06

Market Overview

Outlook

Company Profile

About Us

Milestones

Group Structure

Management Team

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About Us

◆ Specialized in OEM and own-brands

furniture manufacturing and sale since

founded in 1999.

◆ Exceptional customized furniture (SPO)

mass-manufacturer in China. 4 plants

located in Hangzhou, China. Equipped

with a workforce of 1884 people.

◆ Directly selling to key chain store retailers

in North America .

◆ Products lines include upholstered sofas,

beds, dinning chairs and ottomans etc.

◆ One stop shopping service provider of

high end customized furniture.

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Group Structure

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Shane Global holding Inc.

Shayne International

Holdings Limited

Shayne International

Holdings Limited, Taiwan Branch

Shayne USA, LLC JV International,

LLC

Shayne(Macao Commercial Offshore)

Limited

Hangzhou RilongLeather Products

Co., Ltd.

(Hangzhou) Huatong

Industries Inc.

Couture Furniture

(Shanghai) Co., Ltd

Hangzhou Couture Home Furnishing Co.,

Ltd.

100%

100% 100% 100% 100% 100%

100%

100% 100%

97%

Shayne Furniture (Thailand) Co., Ltd.

100%

Shayne Holding Inc.

Spectra Home LLC

1999

2006

2008 2011

2012

2013

2014

2015

2016

2017

2009

• Hangzhou Huatong

Industries. • SPO rolled out

• Set up Shayne Holding

Inc.& Shayne Intl’

Holdings Limited

• Huatong 2nd plant

started up.

• JV Intl’, LLC

• Huatong 4rd plant,

set up to produce

wood furniture

• Acquired Hilkinson (Macao

commercial offshore) Ltd and

renamed as Shayne(Macao

commercial offshore ) Ltd.

• Shayne USA, LLC

• Couture Hangzhou

• Set up Spectra

Home LLC

• Established relationships

with US leading brands.

• Couture Shanghai.

• Taiwan Branch of Shayne

International.

• Restructure underway with

IPO entity-Shane Global

Holding Inc.

• Debut in China market with

opening the flag shop in

Hangzhou.

• Huatong 3rd site ready.

公司沿革

8

2018

• 2018/8/15

Listed in Taiwan

Stock Exchange

Management Team

9

Eva Li

Majored in Accounting Informatics in CJCU.

Audit Supervisor of Finetek Co., Ltd.

Chairman CFO/Spokesperson Audit DirectorCEO Sales DirectorProduction Director

Department of Diplomacy in NCCU

Vice president of Association of Taiwan Investment Enterprises on the Mainland

Jay Shane Eldred Shane Chen, Ya-Ching Lei Seng Fat David Lin Tony Lin

Otago University in New Zealand

Shu Te home economics and commercial high school

Macao St. Joseph’s College

Master degree of Accounting department in NCKU

Factory manager of Hangzhou FulongLeather Garments.

Group’s direction and target layout executer

Vice GM of ICBC ,Macao

senior manager of Deloitte Shanghai

Audit Supervisor of Da Lue International Holdings Co., Ltd. and SGH.

Group’s direction and target layout maker

Sales Department Manager of Hangzhou Huatong.

Production plan maker and coordinator

Overseas marketing and analysis, Customer relationship maintainer

Internal controllingsupervisor

Master degree of Accounting department in NCKU

Group financing, Financial management and analysis. Spokesman.

General Manager of SIH Thailand

Management of SIHThailand setting upand operations.

Financial Manager of SGH.

Products Lines

Sales by Market

Produce Procedure

Sales by Products

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Products & Operations

Products Lines

Upholstery Furniture

Sofas

Beds

Dinning Chairs

Ottomans

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Cabinets

Tables

Shelves

Trolleys

Wood Furniture

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Products Lines

Produce Procedure

Finished Furniture

Material and size selecting

Patterning

FramingCover

cutting

Sewing

Assembling

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62%16%

14%

3%

5%

Year 2016

Sofas Dinning Chairs Beds Ottomans Others

60%19%

13%

3%

5%

Year 2017

Sofas Dinning Chairs Beds Ottomans Others

58%18%

15%

3%

6%

Year 2018 Sofas Dinning Chairs Beds Ottomans Others

Sales by Products

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USEuropean

Australia

China

Unit：NT$ in thousands

RegionYear 2017 Year 2018

Turnover % Turnover %

US 4,196,168 92.53 4,076,508 91.83

Australia 160,143 3.53 201,250 4.54

European 72,898 1.61 88,241 1.99

China 21,828 0.48 32,593 0.73

Others 83,695 1.85 40,516 0.91

Total 4,534,732 100.00 4,439,108 100.00

Sales by Market

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Market Overview

Global Market US Market

China Market

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Global Market

Value of global furniture trade resumed

growth

According to CSIL, the value of global

furniture trade grew at a steady CAGR of 6%

in 2009-2017, which benefited from the

global population and per capita income

growth.

US furniture imports continued to climb YoY.

US, Germany, England, France, and Canada

are the dominant importers. US imports

show sustained growth In the past several

years, which is clearly outperformed the

global furniture market.

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US Market

Rising US new house sales will boost furniture

demand.

US is the largest furniture market and grew 3%

in 2018. US new house market will benefit

from economic recovering and Furniture Today

forecasts the US furniture market will grow

21.4% till 2023 compared with US$111bn in

2018.

US E-commerce furniture sales is forecasted

to climb at a rate of 10.6%.

Statistia indicates the E-commerce furniture

sales in US reached US$65.1bn in 2018

estimates US e-commerce furniture sales will

grow at a CAGR of 10.6% in 2017-2023 to

US$106.1bn. It also predicts online furniture

sales will become the primary sales channel for

the furniture market in the future.

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0

1000

2000

3000

4000

5000

6000

7000

8000

2014 2015 2016 2017 2018

New House Sales in US

千戶…

Source：Stock-ai

0

200

400

600

800

1000

1200

2017 2018 2019F 2020F 2021F 2022F 2023F

E-commerce furniture sales in US

Revenue in billion U.S. dollars (億美元)

Source：The Statistics

Unit: in thousand

China Market

Demand for furniture consumption will increase

on rising per-capita disposable income in China.

With rising disposable income, consumers are

willing to pay a premium to purchase personalized

furniture. Industry commentators predict that

custom-made furniture will reach Rmb161bn by

2020.

Market forecasts retail sales of furniture in China will exceed Rmb320bn in 2019In 2018, retail sales of furniture in Chinaamounted to Rmb225bn and which is expected bythe market to exceed Rmb320bn in 2019.

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0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2013 2014 2015 2016 2017 2018

Per-capita disposable annual income of urban households in China RMB

可支配收入 消费支出

Source：Statistics of China

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

2013 2014 2015 2016 2017 2018 2019F

0

500

1000

1500

2000

2500

3000

3500

Retail sales of furniture in China Rmb bn; growth YoY, percent

零售額 年增率

Source：Statistics of China

Competitiveness

Competitiveness SPO Process

R&D Plan R&D Achievement

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⚫ Outstanding designing skill

⚫ Professional production team, and stable quality management

⚫ High satisfaction of final customers

Flawless Quality

⚫ Mature capacity of dealing with SPO

⚫ Complete vertical producing line assure deliver within 17 days after getting orders

⚫ Value in time delivery

Punctual Delivery

⚫ Economies of scale, producing cost is well controlled

⚫ Direct cooperating with brands contribute to good top line and button line

Competitive Price

Core

Powerful operation and management System brings “Flawless Quality”, “Punctual Delivery” and “Competitive Price”

Competitiveness

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⚫ Charge buyers 5-10% re. SPOs

⚫ Strict internal controlling to manage cost

⚫ Zero tolerance to defects

⚫ Differentiated from competitors by fulfilling consumers with

acceptable priced and prompt delivered custom-made goods.

ChinaNorth America

Week 1

Retailers receive SPOsWeek 2-3

Production

Week 4

Shipping to US by Sea

Week 7

SPOs arrive consumer’homes at East coast

Week 5

Reaching consumers in West Coast.Earlier than US local vendors who need 8 weeks at least

• 4 production sites• Diverse branded clients • Variety of designs• Sufficient stock of materials• Customizable specifications• Lead time/production flow management• Packaging/Labeling• Customs clearance• Delivery • US local dispatching

Monday, Week 2Confirmed orders from all leading retailers in previous week relayed to Shane.

SPO Process

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Strengthen the R&D ability

➢ Enhancing R&D ability and achieving OEM-ODM transformation by acquiring outstanding design house/companies

➢ Participating clients’ design and material choosing process

➢ Absorbing popular styles in the upmarket and observing new designs information.

➢ Recruiting the professional 3D CAD experts and furniture designers.

Improve product constitution, materials, and technics

➢ Analyze the materials eco-friendly, using and technics

➢ Modify the furniture constitution and develop additional functions

R&D Plan

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2013

2014

2016

Modified foam stuffing flow

Developed new rubbing color for

leather covers

a) Dining chair with mental elements

b) multi- function bed setsc) Larger headboard of bed

increasing visual effects

a) Designed modern look sofa with simplified production flow

b) Designed new forms of headboard

Improved sofa comfort degreeWith new cushions producing technics

R&D Achievements

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2013

2014

2016

2017

2015

2018

(1) Home theatre

(2) New forms of cushions

Performance

Operation Results

Dividend DistributionSPO Percentage

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Financial Analysis

2015 2016 2017 2018

Revenue 4,536,643 4,570,491 4,534,732 4,439,108

Operating Profit 1,002,543 1,103,499 1,173,428 1,046,733

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Revenue & Operating Profit，NT$ in thousands

36.4741.83 42.11 40.58

22.1 24.14 25.88 23.58

102030405060

2015 2016 2017 2018

Gross profit margin & Operating margin,%

Gross Profit Margin Operating Margin

➢ The revenue maintains stably at 4.5bn NT dollars during 2015

to 2017

➢ In 2018, existing customers keep stable sales and primary

advancement has been made in both Australia and Europe

market. However, digesting half of the added tariff caused

2% decrease in 2018 revenue.

Stable sales momentum

➢ Operating Profit in 2015-2017 was driven by good GPM and

efficient expenses control.

➢ In 2018, since performance was lagged by (1)GPM drops

(2)Marketing expenditure, operating Profit was 23.58%.

Operating Profit has gradually improved

Operation Results

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Gross margins trending up

➢ GPM increased from 36.5% to 42.1% in 2015-2017 for (1) SPO strategy (2) Eliminate customers with low GPM (3)Control the waste of material for cutting strictly.

➢ In 2018, for the effect of price rising in raw material, devaluation of RMB and the added tariff from US, the gross margin slightly dropped to 40.58%

Year

Item2015 2016 2017 2018

financial structure

（％）Debts Ratio 59.03 37.14 39.22 24.12

solvencyCurrent Ratio（％） 141.00 220.07 195.95 346.92

Quick ratio（％） 107.91 177.34 152.08 295.77

Operating

Capacity

Receivables Turnover

(times per year)8.90 9.64 9.70 8.67

Days Sales Outstanding 41 38 38 42

Inventory turnover(times

per year)4.07 4.47 4.83 4.78

Days Sales Of Inventory 90 82 76 76

Profitability

Return on Assets

（％）25.01 30.00 29.77 24.52

Return on Equity

（％）75.17 57.42 48.02 35.14

Net profit margin(％) 18.55 24.01 23.49 22.86

Financial Analysis

Financial structure & Solvency

Good solvency benefited from excellent operating capacity, stable profitability and sufficient cash flow.

Operating Capacity

Well managed Days Sales Outstanding and Days Sales of Inventory, respectively 40days and 80days.

Profitability

Concentrating on upmarket furniture production, clients’ high satisfaction and internal proper cost and expense controlling brought impressive profitability.

36.82 45.68 55.51 53.9

36.47

41.83 42.11

3334353637383940414243

0

10

20

30

40

50

60

2015 2016 2017 2018

SPO Percentage , %(LHS); Gross Margin, %(RHS)

SPO Percentage Gross Margin

32.4336.92 36.71 35.99

46.1949.57

46.54 44.52

20

30

40

50

60

70

2015 2016 2017 2018

Gross Margin, %

STO Gross Margin SPO Gross Margin

One-stop high-end custom-made furniture service

Emphasizing SPO advantage on a scale economiesbase to keep grow the gross margin.

High SPO Percentage boosted Gross Margin

SPO Percentage increased from 36.82% in 2015 to 53.90% in2018. and drove the gross margin raised from 36.47% to40.58%.

SPO Percentage

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36.82 45.68 55.51 53.9

36.47

41.8342.11

40.58

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36

38

40

42

44

0

10

20

30

40

50

60

2015 2016 2017 2018

SPO Percentage , %(LHS); Gross Margin, %(RHS

SPO percentage Gross Margin

10.42 10.93 10.63 9.78.06 12.08 6.99 8

77.35

110.52

65.77

82.47

0

20

40

60

80

100

120

0

2

4

6

8

10

12

14

2015 2016 2017 2018

EPS&DPS,NT$(LHS): Payout Ratio, %(RHS)

EPS DPS Payout Ratio

Item 2015 2016 2017 2018

Dividend paid648,440 1,207,800 699,360 888,896

Cash Earnings

per Share 8.06 12.08 6.99 8.00

Unit: Dividend paid in thousand NT$; EPS in NT$

Dividend policy is stable, with a Payout Ratio ofover 60% in recent three years. 2015-18 cashdividends were a respective NT$8.06, 12.08,6.99 and 8.00 per share.

Stable dividend Payout Ratio

Dividend Distribution

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Outlook

Prospect

Future Risk and Solutions

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Future Risk and Solutions

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A. China–United States trade war

B. Economic Variability

C. Labor Cost Increment

D. Fluctuation in raw material prices

1.Expansion of market

2.Strong relationship with clients

3.Experienced operating Capability

4. Well controlled sourcing channels

Risk factors

Advantage Factors

◼ Deepen the cooperation with clients to permeateNorth America and expanding new Austrilia,European and China market to meet marketdiversification.

◼ Value and nourish talents, lower brain drain inskilled workers to manage recruitment and trainingcost.

◼ Ajust inventory and finished goods sales priceaccording to raw material market.

Solutions

◼ Minize the risk of sole production base bydeveloping opportunities to set up new factories insouth Asia or North America.

Prospect

Develop sales channels

Expand Australia,

European and China market

Sustainably grow SPO products

OEM→ODM

Deepen the cooperation with clients

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Thank you for your attention

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