Sunrise Company Introduction

Zhangjiagang Sunrise

April 2018

CUSTOMER BASE

Walmart Sam’s Club

Costco JCPenney

Kohl’s Target

Dollar General Bloomingdales

Ross Stores TJX/Marshalls

Big Lots LIDL

Victoria’s Secret Tesco Komar

Pem America Triboro Nemcor

Hollander

SALES GROWTH EXPORT MARKET DISTRIBUTION

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

Yr 2013 Yr 2014 Yr 2015 Yr 2016 Yr 2017

USA 60.55%

Europe 16.14%

Canada 8.07%

South & Central America5.38%

China Domestic 4.84%

Mexico 2.42%

other 2.60%

Established in 1999 and located 1 ½ hours north of Shanghai, Sunrise is one of China’s largest vertical plush & micro fleece factories producing Fabric, Apparel, and Home Textiles. Four factories provide almost 3.5 million square feet of factory space with 5800 employees. Our combined facilities have 72 apparel production lines and 560 Home Textile machines.

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Factory Capabilities

• Vertical production includes:

Warp and Circular Knitting

Dyeing, Printing, and Anti-pilling

Cutting, sewing, finishing

Packaging and shipping

High efficiency facility with PC hanging machine, cutting machine on site

• Full Product Line offering:

Blankets & Decorative Throws

Micro Fleece Sheet Sets

Robes, Pajamas, Sleepwear

Children’s Non-FR Apparel

Baby Accessories

Activewear

◦ Familiar with North American & European marketing trends and retail environments

◦ Provides fashion and market analysis, competitive shops, store visits

◦ New product development, artwork & style design with 30 years design and production experience

◦ Dedicated PD teams in both USA and China for communication efficiencies

Design/PD Team

Proven Quality

◦ Successful Audit History with all major retailers

◦ Low defective rates

◦ Implementation of Sustainability Initiatives is a major focus

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Deep Press Velvet Plush

Embossed Dimple Jacquard

Velvet Plush Puff Jacquard Sheared Backprint

Deep Press Printed Velvet Plush Sheared Velvet Plush

Microfleece

Finished Goods and Fabrics

Backprint Burnout Deep Press Scroll

Cubed Jacquard

Micro Tec Printed Velvet Plush

Heathered Cation Backprint Puff

Printed Dimple/Baby Sherpa

Backprint and regular Sherpa

Finished Goods and Fabrics

Printed Drop Needle

Zhangjiagang Sunrise Textile Co., LTD Jiangsu Sunrise Textile Co., LTD Zhangjiagang Sunrise Home Textile Co., LTD Hongmofoang Textile Co., LTD

Zhangjiagang Factory

Fabric Knitting Capacity: 230 tons per day for fleece & light weight fabric Sewing Capacity: Garments: 1.3M units per month Home Textile: 0.95M units per month

2 Shuyang Jiangsu Factories

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Fabric Knitting Capacity: 30 tons per day for fleece & light weight fabric Sewing Capacity: Garments: 1.3M units per month Home Textile: 1.5M units per month

Total Company Annual Volumes: Knitting Capacity of 96,600 tons, Dyeing and Printing of 136,800 tons, and

Production Capacity of 60 million units of finished goods.

• 406 Knitting machines-126 circular and 280 warp knitting machines

• 14 Printing Machines • 57 Dyeing Machines • 60 Embroidery Machines

• 72 Hanger System Production Line: • Capacity: 31.2 Million Pieces Per Year • 560 sewing workers for Home items: • Capacity: 29.4 Million Pieces Per Year

Vertical Production - From Knitting to Packaging

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Mill Machine List

Machine Type Quantity in

Zhangjiagang Tons/Day-

Zhangjiagang Quantity in

Shuyang Tons/Day Shuyang

Total Quantity

Total Tons/Day

Dyeing 34 95 23 86 57 181

Printing 6 90 8 130 14 220

Steaming 4 90 4 140 8 210

Washing Lines 6 120 8 200 14 230

Polishing 58 130 85 182 143 200

#24 Brushing 49 41 49 49 98 107

#36 Brushing 32 140 49 170 81 213

Combing 28 220 15 192 43 320

Shearing 10 130 10 150 20 250

Anti-Pilling 4 135 5 200 9 260

Anti-Pilling Bucket 53 55 37 44 90 115

Finishing 15 150 19 180 34 280

299 312 611

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Garment Factory Machine List

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Machinery in Zhangjiagang Qty Machinery in Shuyang Qty

Auto fabric layering machine 6 Auto fabric layering machine 10

Auto cutting fabric machine 5 Auto cutting fabric machine 4

Special sewing machine 182 Special sewing machine 190

Single needle 1,176 Single needle 1,285

Double needle 433 Double needle 289

Overlock 527 Overlock 756

Expansions/Improvements In 2017

Mill:

• Adding 1 rotary printing machine to total 6 printing machines, will increase 15% capacity to 90 tons per day.

• Adding 4 new finishing machines to total 15 finishing machines will double the capacity to 200 tons per day.

• Adding 1 more steaming machine to existing 4 steam machines.

• Adding 3 more washing line to total 6 washing lines. (7-9 machines per line)

Garment factory:

• Added 8 hanging lines to 22 existing lines in 2017.

• Upgraded sewing machinery to auto cut, total units at 400 sets.

• Added one auto cutting machine

• Added two auto fabric layering machines

Zhangjiagang Sunrise

Garment factory:

Added 8 more hanging lines to existing 38 lines in 2017.

Upgrading all sewing machinery to be with auto cut function, total units at 420 sets. Not only does this improve quality control of loose threads, it creates labor and time efficiencies.

Shuyang Jiangsu Sunrise

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Environmental Responsibility • During washing, the waste water is reused saving 200 tons per line each day by updating the waste water pipe

with a reflux function.

• Water Separation: The excess water from the production processes are diverted through separate pipes and tanks. The waste water from the washing process is separated from the waste water from the dyeing process. Each type of water then goes through different series of filtration systems to transform waste water to clean water for re-use. Daily water savings of 20%

• Replaced the dye injection method from spraying to pneumatic, which reduces waste from 100 tons to 60 tons per machine, per day. Daily saving 400 tons for total 10 printing machines.

• Installed desulfurization and de-nitrification technology on boilers, so that sulfur dioxide and soot meet carbon

emissions standards.

• Coal-fired boilers were replaced with natural gas boilers to reduce emissions.

• Fixing machines were updated by adding hood purification equipment which reduces waste gas to meet emission standards.

• Added a computerized flow meter to control daily wastewater to be within the limits.

• Our company has passed ISO4001 energy management system certification since 2014, and received renewal certification every year.

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