About REACH NEW HLDGS Company

We are a label solution supplier and one-stop garment ingredients manufacturer and supplier based in China. Our products can be broadly divided into three categories, namely (i) printed products (such as tags, price tags and stickers); (ii) woven labels (such as woven brand labels, woven size labels and badges); and (iii) printed labels (such as printed brand labels, printed size labels and washing labels). We also purchase and sell other clothing accessories to our customers, such as webbing, hangers, leather cards, buttons and metal products. Over the performance period, we have served more than 1,100 customers, more than nine major clothing brands and procurement companies, accounting for more than 85% of total revenue. Our customers include (i) Chinese clothing brand companies; (ii) purchasing companies designated by clothing brand companies; and (iii) Chinese clothing manufacturers. Clothing brand companies and purchasing companies will place orders directly with selected suppliers such as us or direct clothing manufacturers to place orders, so the directors believe it is important that we become the selected supplier of the clothing brand company or its purchasing company in order to obtain orders. As the selected supplier of such clothing brand companies and purchasing companies, we manufacture products and procure other clothing ingredients according to the design and specifications of the clothing brand company or purchasing company, and ultimately sell products to customers for use as clothing ingredients, such as labels or tags for finished clothing products. In addition to manufacturing and purchasing different clothing ingredients, the Group also provides customers with various value-added services. Starting from the early production stage, customers can place orders with us using our online system or through our sales and marketing department. The Group will then provide customers with guidance and assistance in product design and technical feasibility of material application. At the production stage, the Group also verifies and protects the brand's intellectual property rights, such as trademarks, etc., through the system, and ensures the accuracy of variable data such as price and washing data through quality control procedures. The Group also stores such data and provides backup data sources to customers. After the production phase, the Group uses this online system to enable customers to track the delivery status of ordered products. According to the Frost & Sullivan report, there are more than 1,000 garment ingredient manufacturers in China that specialize in printed products, woven labels, and label printing. As a result, as of 2016, China's garment ingredients industry was relatively fragmented, with the five major players accounting for only about 9.2% of the total market in terms of sales revenue. The Group's sales revenue in 2016 accounted for 0.9% of the market share, ranking 7th in China's garment ingredients industry. With a strong track record of over 15 years as a well-established label solutions supplier and one-stop garment ingredients manufacturer, and the huge growth potential of China's apparel ingredients industry, the directors believe we will definitely be able to catch up with the successive demands of China's garment ingredients industry.