群力 ( 國際 ) 時裝有限公司 Company Profile Apr 2013. Page 2 Content  Kwan Lik’s Key Differentiators  Our Client Brands  Our Products  Company Overview – Hong.

群力 ( 國際 ) 時裝有限公司 Company Profile Apr 2013

Content  Kwan Lik’s Key Differentiators  Our Client Brands  Our Products  Company Overview – Hong Kong, Shen Zhen, Guang Dong  Our Recent Success Story  Our Client’s Feedback  Appendix

Why Kwan Lik? Our Key Differentiators.  40 years of garment manufacturing experience  Company-owned factory with work force of 600 employees enabling monthly production capacity up to 100,000 pieces  Recruited a team of experienced factory workers with stable production capacity since 1985  Expertise in producing garments for world famous brand names such as DKNY, Liz Claiborne, Kate Spade, Lucky Brands, Mexx and Giordano  Renowned within the industry for our garment workmanship, product quality and on-time delivery  Offers high-quality products, competitive pricing as well as flexibility in quantity and delivery dates to reduce inventory costs for our clients  Well-established relationships with fabric and trim suppliers in east Asia countries such as China, Korea, Taiwan Each year, we allocate 1/3 of our profit into an education fund to support students in greater China, and we’d like to invite you to be part of this initiative.

Kwan Lik produces world-famous brands garments which are exported across North America, Europe and East Asia U.S. & Canada Asia Pacific Europe

Kwan Lik is capable of producing a wide variety of woven apparel, fulfilling the different requirements of your product line DRESSES & BOTTOMS SHIRTS & TOPS OUTERWEAR BLAZERS *The above are selected products only, please refer to appendix for a detailed list of company products Kwan Lik Fashion

A metropolitan hub city in Asia and a convenient meeting location for international design teams and buyers Accessibility to global information on fashion trends, designs, and fabric/ trim sourcing ideas Our A-team of company executives selected from a strong pool of management resources in HK A metropolitan hub city in Asia and a convenient meeting location for international design teams and buyers Accessibility to global information on fashion trends, designs, and fabric/ trim sourcing ideas Our A-team of company executives selected from a strong pool of management resources in HK Our executives are based in the Hong Kong Office where we meet with design teams and international clients Key Business Functions: Board of Directors Managing Committee Sales & Client Management Fabric Development & Purchasing Shipping Management Finance & Administration Office space: ~ 5,000 sq. ft. Warehouse space: ~ 5,000 sq. ft. Key Business Functions: Board of Directors Managing Committee Sales & Client Management Fabric Development & Purchasing Shipping Management Finance & Administration Office space: ~ 5,000 sq. ft. Warehouse space: ~ 5,000 sq. ft. South China Hong Kong Office Our Clients’ Benefits

Our Shen Zhen Office serves as a hub office, allowing collaborations between partner companies and our factory in greater China Key Business Functions: Order Management Design/ Fitting reviews Trims Development & Purchasing Quality Control center with sub-contractors Accounting & Statistics Office space: ~ 3,000 sq. ft. Key Business Functions: Order Management Design/ Fitting reviews Trims Development & Purchasing Quality Control center with sub-contractors Accounting & Statistics Office space: ~ 3,000 sq. ft. South China Shen Zhen Office Our Clients’ Benefits The HK-SZ resource model balances the operating costs, providing flexibility on product prices for our clients Our office is a convenient meeting location 5 mins walking distance from Lo Wu Station and next to hotel Shangri-La As a hub city in greater China, SZ embraces a strong network of fabric/ trim suppliers from convenient locations offering the right prices The HK-SZ resource model balances the operating costs, providing flexibility on product prices for our clients Our office is a convenient meeting location 5 mins walking distance from Lo Wu Station and next to hotel Shangri-La As a hub city in greater China, SZ embraces a strong network of fabric/ trim suppliers from convenient locations offering the right prices

Having our own factory in Guang Dong, we closely manage the production lines, ensuring product quality and on-time delivery Key Business Functions: Order Management Sample Room Production Lines Quality Assurance Administration - Shipping, Finance, Accounting, Maintenance, Internal Support Factory space: ~ 70,000 sq. ft.* Key Business Functions: Order Management Sample Room Production Lines Quality Assurance Administration - Shipping, Finance, Accounting, Maintenance, Internal Support Factory space: ~ 70,000 sq. ft.* South China Factory in Guang Dong Our Clients’ Benefits Company-owned factory with work force of 600 employees enabling monthly production capacity up to 100,000 pieces Recruited a team of experienced factory workers with stable production capacity since 1985 Agile production lines that respond to the fast-changing nature of today’s fashion brands, fulfilling the different fabric and workmanship requirements from our clients Flexibility in orders and delivery dates, reducing our clients’ inventory costs and enabling pressing retail dates Company-owned factory with work force of 600 employees enabling monthly production capacity up to 100,000 pieces Recruited a team of experienced factory workers with stable production capacity since 1985 Agile production lines that respond to the fast-changing nature of today’s fashion brands, fulfilling the different fabric and workmanship requirements from our clients Flexibility in orders and delivery dates, reducing our clients’ inventory costs and enabling pressing retail dates *Refer to Appendix for a factory virtual tour

Kwan Lik’s consistency in product quality is enabled by our factory’s holistic management and quality assurance system Our factory director conducts pre-production meetings for every style to go through the fabric and workmanship detail with management, as well as post production meetings to summarize lessons learned At the 9am status meeting every morning, the management team including production managers, team leads, QAs and merchandizing team gather to go through issues during production and discuss any risk mitigations required It is our company policy that each and every fabric roll used for the garment must be thoroughly inspected according to the standard 4-point system Every piece of cut fabric is stamped with an ID to facilitate garment construction. The fabric pieces are carefully inspected to confirm fabric color, size and quality, and must be replaced if necessary. A complete set of documents and checklists have been developed to enforce that all company standards are met before products can proceed to the next stage in the manufacturing process *Refer to the appendix for a detailed description on our manufactory process and factory facilities Quality checkpoints are required at early, mid and late production performed by the quality assurance team A thorough final inspection is performed by the finishing team before products go into packaging

Our Recent Success Story - Facilitated Kate Spade Saturday’s Brand Launch from Design to Product Development For the first 3 seasons, Kwan Lik delivered over 80% of Kate Spade Saturday’s woven products including dresses, tops, outerwear and bottoms The product quality and commitment on product delivery have facilitated Kate Spade Saturday’s brand launch from Conceptualization, Design to Product Development The first flagship store in Japan was launched in early March 2013. Online store launch to follow. For the first 3 seasons, Kwan Lik delivered over 80% of Kate Spade Saturday’s woven products including dresses, tops, outerwear and bottoms The product quality and commitment on product delivery have facilitated Kate Spade Saturday’s brand launch from Conceptualization, Design to Product Development The first flagship store in Japan was launched in early March 2013. Online store launch to follow. Client's Background & Challenges Kwan Lik’s Partnership with KS Client’s Benefits Kate Spade’s design team was developing a new product line, Kate Spade Saturday, to attract the younger customers with a more casual lifestyle and the new generation of global tech-savvy shoppers Client seek suppliers to collaborate during the apparel design phase and to support the agile development process from fabric sourcing to garment sampling Due to initial brand launch, product quality standard is of essence for our client team Supported product conceptualization phase by providing sample fabrics and garments Collaborated with KS Saturday's design team, technical team and sourcing sub-contractor Li & Fung to oversee end-to-end product delivery Provided constructive suggestions on garment measures and closely managed quality to meet client’s requirements Flexible in incorporating comments on garment samples and shorten turnaround cycles whenever possible

Kwan Lik’s product and service qualities are demonstrated by our proven successes and positive feedback from our clients  “ The needle work from your factory (Kwan Lik) is much better amongst all our existing vendors out of China.” - Divisional Merchandise Manager, Li & Fung Sourcing  “ Kwan Lik has been one of our key suppliers since the company’s buying agency agreement with Liz Claiborne has in 2009. KL has always helped our client meet pressing retail dates with outstanding product quality ” - Merchandize Manager of Woven, Li & Fung Sourcing  “ Kwan Lik’s services have always allowed quick turn-around cycles on garment samples based on our design team’s fitting comments. They enable the lowest return rate across all vendors and provide the best workmanship and fitting for suits ” - Giodano Sourcing & Development team  “ Kwan Lik’s garment workmanship and bulk performance has been of high satisfaction to our design team ” – Product Designer, Lucky Brand

群力 ( 國際 ) 時裝有限公司 Appendix Additional Information about Kwan Link

 Detailed Products Catalog  Outerwear & Blazers  Dresses  Shirts & Tops  Bottoms  Factory Virtual Tour  Sample Development Room  Fabric Inspection  Preparation for Bulk Production  Fabric Cutting  Sewing Section  Finishing Section  Packaging Section  Other Facilities  Company History & Organizational Chart Appendix Content

Detailed Products Catalog OUTERWEAR & BLAZERS (1 of 4) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Detailed Products Catalog DRESSES (1 of 2) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Detailed Products Catalog DRESSES (2 of 2) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Detailed Products Catalog SHIRTS & TOPS (1 of 4) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Detailed Products Catalog Bottoms (1 of 2) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Detailed Products Catalog Bottoms (2 of 2) Note: The above images are exhibited to illustrate the styles, cutting, handicraft, embellishment and finishing that our company is capable of producing. The copy rights of respective product designs belong to our clients and are not to be duplicated nor manipulated.

Factory Virtual Tour Sample Development Room Garment price quote and fabric usage are estimated based on the initial set of paper patterns drafted according to the client’s designs We have a mechanizing team based at the factory responsible for following up on each style to ensure that the products fulfill clients’ requirements Samples production team perform fabric cutting, sewing, and provide inputs on the style and construction for future reference during bulk production Sample team lead must compare the finished sample against client’s comments, making sure that all measures and construction are correct.

Factory Virtual Tour Fabric Inspection It is our company policy that each and every fabric roll must be thoroughly inspected. Defects are marked by colored tape so that they can be easily found and noted The sewn hems from fabric rolls are then used to compared with client’s fabric sample to check for any discrepancies For each fabric roll, two pieces of 5-inch fabric are cut and sewn into hems in order to compare edges vs. center color discrepancies within the fabric roll We use the industry standard 4-point system to inspect for defects such as holes, missing yarns, yarn variation, end out, soiled yarns, and wrong yarn

Factory Virtual Tour Preparation for Bulk Production After sample is approved and ready for bulk production, specialist scans the set of paper patterns with finalized measures and transform patterns into digital images. The digital patterns are then arranged into markers to maximize fabric usage. Any shrinkage or fabric issues found from inspection must be taken into account. Once input into the system, the digital patterns are inspected to ensure that all measures are correct before proceeding with marker processing. Based on the marker arrangement, hard copies of the markers are printed through the Gerber plotter in preparation for fabric cutting.

Factory Virtual Tour Fabric Cutting The printed paper markers with outlines of all the required pieces are placed on the stack of fabric and cut with high speed cutters Interlining is fused on specific parts of fabric according to construction requirements prior to sewing. Every piece of cut fabric is stamped with an ID to facilitate garment assembly. Corners of each layer are used to compare color discrepancy across layers. Each piece of cut fabric is carefully inspected. Fabric pieces with major defects must be replaced, and must be re-tailored if fabric changes during the process

Factory Virtual Tour Sewing Section Our Company- owned factory can host 600 workers and we follow the assembly line production system, enabling monthly capacity up to 100,000 pieces. Quality checkpoints are performed during early, mid and late production for every piece of garment. Check points are managed by the quality assurance team The sewing section managers are responsible for sewing the first piece of garment and listing out the standard procedures for the sewing team Team leads and sewing section managers randomly select initial, semi- finished and finished products for a thorough check on measures and construction details

Factory Virtual Tour Finishing Section The head of finishing section manages the finishing procedures and sets up the specific components required for each style Ironing section manager reviews the ironing requirements for each style and manages the procedures, techniques and quality required. Finishing procedures such as button stitching & pressing, final needle work, lose threads trimming etc. are performed at the finishing stage The quality control team performs a 100% final inspection on every piece of finished garment before products go into packaging

Factory Virtual Tour Packaging Section Garments that passed the final inspection are folded, packaged and poly-bagged when required. Packaging team categorize packaged goods into different sizes, colors and styles according to client’s requirements in preparation for flat-packaging in cartons Packaged garments are sent through the needle inspection machine to ensure that there is no prohibited material contained within the packaged product Special packaging for high creasing products such as garments on hangers (GOH) delivered hanging to stores in poly bags are handled in a separate area

Factory Virtual Tour Other Facilities Factory entrance Trims Warehouse Fabric Warehouse Client QA inspection room Client Conference room

 Ngai Tat Garment Factory was founded in 1976. Afterwards, it was registered as Ngai Tat Fashions Manufacturing Ltd. At the early stage of development of the factory it was a small one. With gradual steady expansion, up to the middle of the 80’s, the production center in Hong Kong (with more than 200 workers) became the master “DRAGON HEAD” of the whole enterprise as it was leading more than ten producing factories (totally more than 1,200 workers) in mainland China (with a monthly output of more than 100,000 fashionable dresses) establishing an increasing trend of further development.  In 1985, the enterprise established “Kwan Lik (Hui Lai) Garment Factory” at Hui Lai, Guangdong Province, China and in 1987, it was registered as Kwan Lik (Hui Lai) Fashion Co. Ltd. with a workforce of 600 workers. The collective production activities in it include: embroidery, beading, hand crochet, garment making, etc.  In 1993, the establishment of Kwan Lik (H.K.) Fashion Co., Ltd. substituted Ngai Tat Fashions Manufacturing Ltd.; in the same year, the production line in Hong Kong was cancelled and all our production was to be carried out in our own factories (in mainland China) and other factories in the Pearl River delta area (Guangdong Province).  Following the path of development, the enterprise expanded and set up its Shenzhen office in 2003. The Sales Department, Purchasing Department for Material and Accessories, Design and Fitting Department, Quality Control Department, Finance and Administrative Department in Shenzhen helps enterprise to cut the running cost, enhance the efficiency and perfect the system of the enterprise tremendously.  A worldwide clientele base has gradually been established and decision has been made to change the name of the company from Kwan Lik (H.K.) Fashion Co., Ltd. to Kwan Lik (Int’l) Fashion Limited starting from 2012. Functions that performed by the former are to be carried over by the later, which is to be run by the successors of second generation.  Also in 2012, founder of this enterprise established a foundation named Kwan Lik Educational Foundation. Kwan Lik (Int’l) Fashion Limited directly under the authority of the Foundation, and 1/3 of its income will be contributed to students in need. Company History

Organizational Chart 1 – Hong Kong Office

Organizational Chart 2 – Shen Zhen Office

Organizational Chart 3 – Guang Dong Factory

群力 ( 國際 ) 時裝有限公司 Company Profile Apr 2013. Page 2 Content  Kwan Lik’s Key Differentiators  Our Client Brands  Our Products  Company Overview – Hong.

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群力 ( 國際 ) 時裝有限公司 Company Profile Apr 2013. Page 2 Content  Kwan Lik’s Key Differentiators  Our Client Brands  Our Products  Company Overview – Hong.

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