淘帝國際控股有限公司

- T O P B I I N T E R N A T I O N A L H O L D I N G S L I M I T E D -

T i c k e r ： 2 9 2 9 T W

Speaker： CEOZhou Zhi Hong

2020 / 09/ 30

Company Introduction

2

• The TOPBI brand was founded in 2002

to symbolize the spirit of “Top Kids".

• TOPBI’s children wear have innovative

design and built up a business model

that assemble product R&D, design and

sales. TOPBI is aimed at aged 1-16

(height73-170cm) child and teenager of

middle-class families.

Brand Introduction

3

◆ Chairman：Zhou, Xun Cai

◆ CEO：Zhou, Zhi Hong

◆ Number of Employees：177

◆ Capital Sum：NTD$ 950 million

Through a total of 25 agents in

China, TOPBI brand channels have

reached 1,307 sales base in 16

provinces and 3 municipalities

directly under the central

government by the second quarter

of 2020. In addition, e-commerce

agents have been added since the

end of 2017, accounting for 16% of

e-commerce revenue in the second

quarter of 2020.

黑龙江

内蒙古新疆

青海

西藏

甘肃宁夏

陕西

山西河北

北京

天津

山东

江苏

上海

浙江

安徽

河南

湖北重庆

四川

云南

贵州

广西 广东

澳门香港

海南

湖南江西

福建

台湾

吉林

辽宁

未開發

2008年前

2009-2010年

2011-2012年

2013-2014年

2015-2017年

Distributor

4

TOPBI is committed to expanding the market share of children‘s wear in China, continuouslyinvesting in new product research and development, brand marketing, and improving theefficiency of production supply chain. In this year, TOPBI has been recognized by theChina’s ministry of industry and China‘s textile industry association, as one of the “2018 keytracking cultivate clothing textile independent brand enterprise”, as well as the “China's top100 apparel enterprises in 2018” recently published by Chinese clothing association,highlight the important position of Topbi in the China’s apparel industry, and maximize thevalue of TOPBI brand.

Competitive Advantage

5

Competitive Advantage

6

In order to improve the visibility of TOPBI children's wear market in China, we wereinvited to participate in 2019 China international children's fashion week activity.Topbi also released TOPBI brand new products for children's wear in autumn and winter2019 in the exhibition. With the theme of “Fashion · toward the future", it integrates spacedream, harmony between human and nature, sports and other elements to display nearly100 kinds of children's wear products. Moreover, it has won the fashion award forchildren's wear brands in China, highlighting the affirmation of the transformation ofTopbi's children's wear style in the past two years.

Operational Performance

7

Year 2Q20 2Q19 YoY 1H20 2019 2018

Revenue 511,277 1,757,068 (70.90%) 1,376,229 7,169,864 6,764,779

OperatingCost 1,017,353 1,075,023 (5.36%) 1,651,971 4,366,958 4,135,772

Gross Profit (506,076) 682,045 (174.2%) (275,742) 2,802,906 2,629,007

Gross Margin (98.98%) 38.82% — (20.04%) 39.09% 38.86%Operating Expenses 259,744 268,033 (3.09%) 577,041 1,248,450 1,287,609

Operating Income (765,820) 414,012 (284.98%) (852,783) 1,554,456 1,341,398

Operating Margin (149.79%) 23.56% — (61.97%) 21.68% 18.35%

Non-operating income

24,805 (25,077) (198.92%) 61,312 2,168 -17,544

Income Tax (63,941) 89,325 (171.58%) (70,429) 421,805 370,228

Net Income (677,074) 299,610 (325.99%) (721,042) 1,134,819 953,626

EPS (7.13) 3.17 (324.92%) (7.59) 12.01 11.56

Unit：NTD 1000，％

Income Statement

8

In recent years, Topbi is actively expand the new retail layout. Because of epidemicinterference in the first half of the year, and the group and its agents to take advantage of themarket adjustment. Although it affects the injection of offline retail sales in the short term,with the sales through e-commerce agents on JD, Tmall and other third-party platforms in thepast three years, the proportion of e-commerce revenue in the first half of the year has reached16%, which has a certain neutralizing effect on the overall operation.

Proportion of Channel Revenue

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2016 2017 2018 2019 1H20Online Sales 40,000 50,000 270,591 477,513 215,631Offline Sales 5,655,817 5,866,268 6,494,188 6,692,351 1,160,598Number of Outlets 1,451 1,506 1,583 1,609 1,307

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Inventory Change Analysis

10

78,61647,244

90,83348,866

152,353210,804

0.96%0.54%

1.14%

0.60%

2.13%

3.13%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

0

50,000

100,000

150,000

200,000

250,000

1Q19 1-2Q19 1-3Q19 2019 1Q20 1-2Q20Net inventory Inventory as a percentage of assets

In the first half of this year, affected by the epidemic and flood in China, the purchasequantity of agents decreased, making the inventory increase obviously. Topbi has adopteda price reduction strategy since May to encourage agents to increase the delivery of goods.In the second quarter, the loss of inventory falling price was 431 million yuan, affecting4.54 yuan per share. The group plans to boost overall operating performance byaccelerating inventory liquidation through a number of projects by the end of the year.。

Unit：NTD 1000，％

As one of the top 100 enterprises in China's garment industry, Topbi is continuously strengthens theexposure of TOPBI brand image and lays the foundation for good brand awareness andcompetitiveness of TOPBI brand. In the first half of this year, the sales agents reduced to reduce thedelivery of goods, the proportion of advertising expenses increased substantially. In the second half ofthe year, as the revenue momentum is expected to pick up, there is an opportunity to see the proportionof advertising expenses decreased significantly.

TOPBI Brand Image Status

11 Unit: NTD Thousand ; %

851,206773,667

1,014,503 999,171

469,59014.94% 13.08%15.00% 13.94%

34.12%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2016 2017 2018 2019 1H20Marketing costs Proportion of marketing expenses

In view of consumers' shopping habits and the obvious increase in e-commerce consumptiondemand, for TOPBI brand marketing, in addition to maintaining the brand visibility of traditionalmedia, increase the development of online brand image and promotion of marketing platform. Notonly that, Topbi also strengthened the analysis of offline retail store consumption data, andconstructed consumers' shopping children's clothing style preference, consumer price range,shopping frequency, etc., in order to achieve good accurate marketing and improve thecompetitiveness of offline retail store.

Advertising Policy

12

37%

19%1%

35%

8%

Taxi advertisement Online agentThe broadcast media High-speed Rail advertisementChuang Chuang Business School

Topbi’s operation strategy is to expand retail channels, refresh product and brand image, manage a flexible supply chain, that maintain growth momentum for the company, also share the operating results with shareholders.

Unit : NTD

Dividend Policy

13

2014 2015 2016 2017 2018 2019Stock Dividend 0 1.98 1 0.5 1.5 1.53Cash Dividend 6.5 5.45 3.23 4.83 3.15 0.17

MarketTrends

14

15

China’s Children’s Clothing Scale Development Potential

資料來源:Euromonitor, WIND,德邦研究

According to statistics, it is estimated that the size of children's clothing market in China willreach RMB 576.1 billion yuan in 2028 from RMB 243.4 billion yuan in 2019 with theincrease of per capita expenditure on children's wear, the market size will continue to grow ata compound rate of 10.69% in the next ten years.

Unit:billion(RMB)

1,678 1,937 2,248 2,538 2,831

3,195 3,454 3,721 3,975 4,249 4,522

409 497

581 679

766

840 888

953 1,037

1,125 1,239

16.20%16.62% 16.26%

13.66%

11.84%

12.16%

7.64% 7.64%

7.22% 7.24% 7.20%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2018年 2019年E 2020年E 2021年E 2022年E 2023年E 2024年E 2025年E 2026年E 2027年E 2028年E

Big Child Market Size Child Market Size Annual Growth Rate

16

436 505 610 731878

10531211

13931532

16851854

20392243

720 819 9431085

12481397

15651753

18932044

22082385

2575

0

500

1000

1500

2000

2500

3000

2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E0.00%

5.00%

10.00%

15.00%

20.00%

25.00%Children's clothing per capita Large Children's clothes per capita

Growth rate of children's clothes per capita Growth rate of large children's clothes per capita

資料來源:Euromonitor, WIND,德邦研究

Growth of per Capita Consumption of Children’s Clothes

At present, the per capita consumption expenditure of children‘s clothing in China (the size of children’sclothing market/total population) is only about a third of that in Japan, a quarter of that in the UK and a sixth ofthat in the US. Among them, the children's clothing category is subdivided. The per capita expenditure of largechildren's clothing and small children's clothing will grow from 1,085 yuan (RMB) and 731 yuan (RMB) in2019 to 2,575 yuan (RMB) and 2,243 yuan (RMB) in 2028. There is still good room for development in thefuture.

2016年 2017年 2018年 2019年E 2020年E 2021年E 2022年E 2023年E 2024年E 2025年E 2026年E 2027年E 2028年EGrowth rate of

children’s clothes per

capita

9.70 15.80 20.67 20.00 20.00 20.00 15.00 15.00 10.00 10.00 10.00 10.00 10.00

Growth rate of large children’s

clothes per capita

12.36 13.70 15.25 15.00 15.00 12.00 12.00 12.00 8.00 8.00 8.00 8.00 8.00Unit:%

Unit:Billion Yuan(RMB)

17

China’s Children’s Wear Industry Eliminate Weak to Stay Strong

In this year, the impact of the COVID-19 epidemic and floods in China has made it difficult for the overall apparel industry brand operators to operate. In the first half of the year, no matter the international well-known clothing brands or the local China clothing/children's clothing brands, etc., there has been a wave of lay-offs and store closures, and price have been cut down to reduce inventory and cut the loss to survive. The total revenue and profits of about 61 listed apparel companies in China all showed a double-digit decline compared with the same period last year, which is to accelerate China's apparel industry to discard the weak and retain the strong.

2078.62232.12251.1

385.1844.4

13.30%7.40%

0.80%

-28.20%

-20.40%

-35.00%-30.00%-25.00%-20.00%-15.00%-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%

0

500

1000

1500

2000

2500

2017 2018 2019 1Q20 1H20China's textile and garment industry revenueYoY

134.4 142.1113

10 28

5.80% 5.80%

-19.80%

-75.90%-63.40%

-80.00%

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

0

20

40

60

80

100

120

140

160

2017 2018 2019 1Q20 1H20

China's textile and garment industry profit YoY

Unit:RMB 100 million; %

資料來源:Wind,廣發證券發展研究中心

18

China’s Children’s Wear Industry Eliminate Weak to Stay Strong

In this year, the impact of the COVID-19 epidemic and floods in China has made it difficult for the overall apparel industry brand operators to operate. In the first half of the year, no matter the international well-known clothing brands or the local China clothing/children's clothing brands, etc., there has been a wave of lay-offs and store closures, and price have been cut down to reduce inventory and cut the loss to survive. The total revenue and profits of about 61 listed apparel companies in China all showed a double-digit decline compared with the same period last year, which is to accelerate China's apparel industry to discard the weak and retain the strong.

資料來源:Wind,廣發證券發展研究中心

Future Prospects

19

Operating Prospects

20

Offline Retail Outlet - Consolidate the FoundationThe operation focus of TOPBI brand offline stores adopts the "consolidation of the foundation“ in this year, and the structure of its stores has been adjusted successively with the ping effect and brand publicity benefits of the stores. The third quarter has come to the end of the retail adjustment, and the fourth quarter is expected to pick up along with the overall consumer momentum and integrate online/offline marketing to increase the number of inbound visitors, which will help drive the retail ping performance.

Online E-commerce ChannelThis year will accelerate the promotion of online e-commerce sales momentum,with a significant increase in the proportion of online revenue. Topbi stillactively promotes the mutual guidance of virtual and real channel resources ofnew retail, and in the rising trend of web celebrity live broadcast of new e-commerce sales type, actively arranges the business opportunities of webcelebrity and store staff live broadcast of goods, which is conducive to theneutral-offline retail sales. Topbi also plans to focus on the Mini Topbi brandsold by e-commerce, with a view to officially launching the Mini Topbi brandin the year-end sales season, creating a new wave of sales performance of theGroup.Develop new business transformation opportunities -"Win in stability“New retail channel development and multi-brand strategy for the children's clothing business, the group plans to expand other new products, new markets, new business models, etc., in order to increase the overall operation of the group and stack the group's medium and long-term growth momentum.

Offline Retail Outlet - Consolidate the Foundation1

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In the face of the impact of the epidemic on the flow of terminal offline consumers and consumption power, the group still jointly launched marketing activities tailored to local conditions with its provincial agents, and implemented precise marketing based on data management. To demonstrate the benefits of TOPBI brand promotion and promotion of ping effect in offline retail stores, and to continuously plan the new-generation style image of retail stores to maintain the good image of TOPBI brand in China children's clothing market.

As the group's transformation into a new retail channel with virtual andreal benefits gradually ferments, it not only strengthens the third-party e-commerce platform sales through online agents, but now it has becomethe largest TOPBI brand agent. Expand the group's market share inChildren's wear in China and have reached the target of 20% of thegroup's e-commerce revenue in advance this year.

22

16%From

2020/1H

6.7%From2019

TOPBI Largest AgentOnline Agent

0.16%From2017

3.8%From2018

2 Online E-commerce Channel

Optimize Management of Production Suppliers/Agents

In response to the rise of fast fashion style, Topbi realizes the "flexible" manufacturing of supply chain,with controllable process, flexible manufacturing, credible price and reliable quality, and retainsthe flexibility of 15%-20% product style design in the current season.At present R&D production to retail sales can be shortened to the fastest four weeks, the launch of ahigher average unit price of seasonal trend children's clothing products, help to improve the overallprofitability.

2

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Mini Topbi

With the gradual opening of online children's wear salesby Topbi, in order to effectively distinguish children'swear products and brand image, we plan to officiallylaunch Mini Topbi brand focusing on online sales in thefourth quarter of 2020, and its children's wear productswill focus on children from 80 cm to 120 cm.In the process of synchronous development of offlineentity TOPBI and e-commerce Mini TOPBI brand, wehope to achieve effective differentiation through accuratebrand, image and product positioning, and expand thegroup's market share of children's wear in China togradually increase, creating a new growth momentum ofthe group.

Mini Topbi Brand Layout Online Sales2

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THANK YOU