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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.

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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

EPS（NT$ ） 10.42 10.93 10.63

ROE( %） 75.17 57.42 48.02

Highlights

CONTENT01 Company Profile

02 Products & Operations

03

Performance

04 Competitiveness

05

Corporate Governance & CSR

06

Market Overview

4

07

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 1943 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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Shane Global Holding Inc.

Shayne International

Holdings Limited

Shayne International

Holdings Limited, Taiwan Branch

Shayne USA, LLC JV International, LLC Spectra Home LLC Shayne Holding Inc. 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%

Group Structure

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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.

Milestones

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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 ShanghaiAudit Supervisor of Da Lue International Holdings Co., Ltd

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 controlling

supervisor

Group financing, Financial management and analysis. Spokesman.

Management Team

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Master degree of Accounting department in NCKU

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

Trunks

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

62%18%

13%

3%

4%

Year 2018 Q1Sofas Dinning Chairs Beds Ottomans Others

Sales by Products

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USEuropean

Australia

China

Unit：NT$ in thousands

RegionYear 2017 Year 2018Q1

Turnover % Turnover %

US 4,196,168 92.53 861,392 95.34

Australia 160,143 3.53 18,220 2.02

European 72,898 1.61 14,904 1.65

China 21,828 0.48 7,028 0.78

Others 83,695 1.85 1,976 0.21

Total 4,534,732 100.00 903,520 100.00

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 2017

According to CSIL, the value of global

furniture trade grew at a steady CAGR of 6%

in 2009-2017, and is on pace to reach

US$140bn in 2018.

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 5 years,

which is clearly outperformed the global

furniture market.

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US Market

Rising US new house sales will boost furniture

demand.

According to IMF, US GDP will grow 2.7% and

2.5% respectively in 2018-2019 benefited from

economic recovering. Furniture Today also

forecasts the US furniture market will reach

US$111bn in 2019.

US E-commerce furniture sales is forecasted

to reach US$32bn in 2018.

eMarket estimates US e-commerce furnituresales will grow at a CAGR of 12% in 2014-18 toUS$32bn. It also predicts double-digit YoYgrowth for US online furniture sales, which willbecome the primary sales channel for thefurniture market in the future.

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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 Rmb300bn in 2018In 2017, retail sales of furniture in Chinaamounted to Rmb281bn and which is expected bythe market to exceed Rmb300bn in 2018.

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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

➢ Participating clients’ design and material choosing process

➢ Absorbing popular styles in the upmarket and abservingnew designs information.

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

Improve product constitution, materials, and technics

➢ Analyze the materials using and technics

➢ Modify the furniture constitution and develop additional functions

R&D Plan

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2013

2014

2016

2017

2015

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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Performance

Operation Results

Dividend DistributionSPO Percentage

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Financial Analysis

2015 2016 2017 2018Q1

Revenue 4,536,643 4,570,491 4,534,732 903,520

Operating Profit 1,002,543 1,103,499 1,173,428 180,046

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 39.3

22.1 24.14 25.8819.93

102030405060

2015 2016 2017 2018Q1

Gross profit margin & Operating margin,%

Gross Profit Margin Operating Margin

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

to 2017

➢ In 2018Q1, the CB customers reduced the purchasing to

adjust their inventory. demanding recovery is expected in

2018Q2 according to clients’ sales prediction.

Stable sales momentum

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

efficient expenses control.

➢ 2018Q1 was lagged by (1)GPM drops (2)Marketing

expenditure (3) reward to employees

Operating Profit has gradually improved

Gross margins trending up

Operation Results

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➢ 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.

➢ The gross profit margin decreased to 39.30% since the effect of material is price rising in 1Q18. and exchange rate of USD against RMB devaluates.

Year

Item2015 2016 2017 2018Q1

financial structure

（％）Debts Ratio 59.03 37.14 39.22 33.27

solvencyCurrent Ratio（％） 141.00 220.07 195.95 227.54

Quick ratio（％） 107.91 177.34 152.08 172.38

Operating

Capacity

Receivables Turnover

(times per year)8.90 9.64 9.70 9.35

Days Sales Outstanding 41 38 38 39

Inventory turnover(times

per year)4.07 4.47 4.83 3.85

Days Sales Of Inventory 90 82 76 95

Profitability

Return on Assets

（％）25.01 30.00 29.77 20.14

Return on Equity

（％）75.17 57.42 48.02 31.55

Net profit margin(％) 18.55 24.01 23.49 19.03

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 39dayds and 86days.

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

36.47

41.83 42.11

3334353637383940414243

0

10

20

30

40

50

60

2015 2016 2017

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

SPO Percentage Gross Margin

32.4336.92 36.71

46.1949.57

46.54

20

30

40

50

60

70

2015 2016 2017

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 55.51% in2017. and drove the gross margin raised from 36.47% to42.11%.

SPO Percentage

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10.42 10.93 10.638.06 12.08 6.99

77.35

110.52

65.77

0

20

40

60

80

100

120

0

2

4

6

8

10

12

14

2015 2016 2017

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

EPS DPS Payout Ratio

Item 2015 2016 2017

Dividend paid 648,440 1,207,800 699,360

Cash Earnings per

Share8.06 12.08 6.99

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

Dividend policy is stable, with a Payout Ratio ofover 60% in recent three years. 2015-17 cashdividends were a respective NT$8.06, 12.08,6.99 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. Economic Variability

B. Labor Cost Increment

C. Fluctuation in raw material prices

D. Instability in currency exchange rate

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.

Pay close attension to currency exchange rate andfollow the regulation of Rules and Procedures ofDerivatives Business to mitigate currency exchangerate risk.

Solutions

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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Corporate Governance & CSR

The Board and Committees

Personnel and Employee Welfare

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Corporation Social Responsibility

Consists 7 directors in which 3 are independent

directors.

Held at least once in each quarter annually. The Board

meetings has been held for 14 time with qualified

participation since the second Board was established

on Mar. 19th, 2016.

The Board and Committees

Board of Directors

Audit Committee and Remuneration Committee

Audit Committee and Remuneration Committee,

respectively consists 3 independent directors, were

founded on Dec. 23rd, 2015.

Audit Committee supervises the core financial

matters.

Remuneration Committee periodically review and

evaluate the performance of directors and officers.

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Personnel and Employee Welfare

New employee training

Good working environmentFavorable reward and benefits

Rules and regulations guidance

Encourage staff to participate social charity

Social insurance and house fund

Annual bonus and festival premium…

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Social CharityAppreciate Labor rights and provide smooth

communication channels to listen staff’s voices

Support primary and collage education

Old-age care

Resource donation

Employee Safety Fire fighting equipment and other facilities

maintenance are conducted periodically

Emphasize working safety during production and

equip workers proper protections

Corporation Social Responsibility

Environmental sustainabilityLimited waste water and emission are strictly handled

to protect environment

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Thank you for your attention

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