WUXI JINMAO

Wuxi Jinmao Profile

WUXI JINMAO Business Update

Founded in July 1993. Started with fabric manufacturing. Start garment business in 1995, pet business in 1997.

2018 Annual $300.1 million, up 23.7% vs. 2017

- Sleepwear/Loungewear: 2018 $174.43 million, up 32.3% vs. 2017

- Fabric: 2018 $56.90 million, up 10.3% vs. 2017

- Pet: 2018 $68.77 million, up 16.3% vs. 2017

We are the biggest pet beds manufacturer, one of the biggest sleepwear/loungewear manufacturer in China. We are main shirting fabric supplier in China.

Annual Turnover (million US$) 350 300.1 up 23.7% 2018 Product Catagories 300 242.47 250 200.81 174.43 200 23% up 32.3% 131.76 150 116.35 56.9 68.77 100 up 10.3% 19% 58% 59.14 up 16.3% 51.57 43.81 50 40.65

0 Total turnover Garment Fabric Pet Product Garment Fabric Pet Product 2016 2017 2018 2 WUXI JINMAO Business Update

Top Customers – Garment (million US$) Top Customers - Fabric (million US$)

40 66.61% 50 26.09% 45 24.81% 35 62.44% 40 24.7% 20.28% 30 35 24.41% 25 30 20.90% 20 25 29.63% 11.40% 25.48% 20 15 8.48% 15 7.32% 10 8.44% 10 5 5 1.92% 1.74% 1.37% 1.78% 0 0 2017 (TTL92.07%) 2018 (TTL 92.09%) 2017 (TTL 89.43%) 2018 (TTL 94.22%)

PVH JCP JCP Gap Inc. Target PVH Next Nautica COOP

Top Customers – Pet & Others (million US$)

25 Target 29.30% Petco 20 32.40% Petsmart Pets At Home 15 Ross 20.21% 16.91% Menards Amazon 10 12.88% 12.72% Walgreen s

6.91% 5.32% Petface 5 7.22% 4.94% 4.68% 3.90% Walmart(Canada) 3.20% 6.79% 4.38% 2.08% 5.14% 3.17% 3.75% 2.59% 1.39% B&M 1.54% 0.36% 1.83% 0 Chewy 2017 (TTL 95.18%) 2018 (TTL 98.42%) 3 Wuxi Jinmao Key Supply Chain Chart

Wuxi Jinmao Co. Ltd.

Offices Factories Wuxi Wuxi Source Design Direct UK Design Direct Source Ltd.(UK) Nanjing JP Fulfillment Logistics, LLC (TX, Dangshan Shandong Zhenjiang Wuxi Wuxi Wuxi Wuxi Shandong C&C garment factoryShandongC&C garment Henan Henan Changshu Wuxi Wuxi Wuxi Wuxi Wuxi Wuxi Changzhou Jinmao Wuxi Wuxi JP TextilePLC(Ethiopia) Jinmao PM&J, LLC (MN, US) (MN, LLC PM&J, Jinmao Jinmao Jinmao Jinbide Jinmao Jinmao Jinmao

Jinmao Youguo Huimei factory garment Jinmao Yuheng

New York Office (US) factory factory

pet product factorypet product Printing &Dyeing

mill US)

Cambodia Office Cambodia

pet product factorypet product Zhongfa garment factory garment Vietnam Office

China Office China

garment factory garment Weiye

Knitting mill

Y/D mill

garment garment

Artware

Offices Fabric: in 2018, woven fabric 93% produced in China, 7% in Ethiopia; knit fabric 97% in China, 3% in Other countries Fabric Mills Garment: in 2018, 93% produced in China, 6% in Cambodia, 1% in Vietnam, 0.1% in Ethiopia Garment Factories

Pet Products: in 2018, 100% covers produced in China; 20% filling in US. Pet Factories 4 WUXI JINMAO Main Product Categories 2018

Pet Garment Annual Capacity: Fabric Annual Capacity: 220 Product Annual Capacity: 60 million units million yards 30 million units

Actual produced in 2018: Actual produced in 100.4 million yards; 2018: +20.68% vs. 2017 Actual produced in 32.26 million units; 2018: +31.15% vs. 2017 Woven: 55.76 million 18.09 million pcs yards (export 31.85 +19.25% vs. 2017 million yards) Women 56% +12.94% vs. 2017 Men 31% Knit: 44.64 million yards, Kids 13% +32% vs. 2017

Knit 63% Y/D: 34% Woven 37% Print: 36% P/D: 30%

5 Wuxi Jinmao Main Customers and Products Major Customers & Key Products Customer Name Product Category % of total Business 2018 Target Sleepwear/loungewear, Pet products, Homes, 21.95% PVH Shirt & Bottom Fabric, loungewear, underwear 19.48% JCPenney sleepwear/loungewear, fabric 16.62% GAP sleepwear/loungewear, fabric, underwear 14.40% Next Sleepwear/loungewear 5.05% Petco Pet products 3.88% Petsmart Pet products 2.95% Pets At Home Pet products 1.58% ROSS/LF Pet products 1.56% Menards Pet products 1.22% Walgreens Pet Products 1.13% COOP Uniform, sleepwear/loungewear 1.03% Amazon Pet Products 1.00% Chewy Pet Products 0.89% Nautica sleepwear/loungewear 0.80% Petface Pet Products 0.73% B&M Pet Products 0.48% Walmart (Canada) Pet Products 0.42% others Fabric, sleepwear/loungewear, jacket, shirt, pet products, Homes 4.83% 6 WUXI JINMAO Our Core Strengths & Capabilities

•One of the biggest manufacturer for fabric, loungewear, pet products in China Expertise in •20+ years expertise in production of loungewear, fabric and pet products •sharp costing, quality and delivery Production •Vertical Set-Up

•New Fabric Development Strong Innovation •Fabric innovation on functions (stretch, wicking, antibacterial and etc.), new on Fabric materials, sustainability concepts, etc.

•Design teams in US, UK, China, 11 members on garment R&D, 15 on fabric R&D Innovation & •Co-Creation with customers Design •Trend Research & Market Intelligence

• Experienced in production for Fast Fashion, like H&M, Zara Fast Reaction • Shorter lead time & development period Capability • Collaborate with smaller runs, lower MOQ

• Fabric • - China: Improve development & production abilities Global Supply • - Ethiopia: Invest yarn dyed fabric mill • Apparel Chain • - China: moving to inland China • - Overseas: Expand to Southeast Asia (Cambodia, Vietnam, Bangladesh), Ethiopia

•Owned distribution center in Dallas, Texas Distribution •Pick & Pack Capability in US •Distribute & Supply Domestically to both store and .com

•Waste Water Treatment in dyeing & Printing production Leading •Water Cycle Use in production •Use sustainable materials including BCI, recycle poly, organic cotton/linen, etc. Sustainability •Okeo-Tex Certification on all our products 7 WUXI JINMAO 3-5 Year Strategic Plan

UK 2019 Office

Fabric Mill China Owned

Apparel US Factory Vietnam Owned Apparel Factory Ethiopia Cambodia Subcontract Indonesia Pet Products Fabric: 2018 Future 3-5 Years Factory Owned

Apparel: 2018 Future 3-5 Years Future 3-5 Years Pet: 2018 Future 3-5 Years Woven (Tariff not Aggravate) (Tariff Aggravate)

20 % 30% 10 70%

0% 40% Knit China US fill Vietnam 8