RH — Investor Presentation 2020

Nov 30, 2020

TW.4807

==> picture [87 x 151] intentionally omitted <==

==> picture [151 x 12] intentionally omitted <==

Investor Conference

June 29, 2020

TW.4807

www.regaljewelrygroup.com

TW.4807

==> picture [427 x 374] intentionally omitted <==

2014.10.06

Established

PHACHARAPON PHAIBOONSUNTORN

Chairman

38,400,000 NTD 384 million

Share Paid in Capital

- Thailand(1991.02.21 )

Headquarter Staffs

2,550+

Thailand Production Base

• 65,896 square meters

• 3 jewelry factories

• 1 jewelry plating factory entity

www.regaljewelrygroup.com

TW.4807

Industry status

Upstream

• Raw metal mining and production • Stone rough material mining and production

Midstream -- 1

• Gemstones/artificial stones cutting and polishing • Gemstones/artificial stones wholesale • Jewelry Design and Brand operators • Manufacturers of jewelry process equipment and material supply

Midstream -- 2

Downstream

• •

• Jewelry Jewelry brand shops •

• manufacturing plant Department

• • Jewelry plating plant stores/malls

• • • Jewelry accessories Discount stores •

• supplier Non- physical shops （ Catalogue and B2C e-commerce ）

• • Network Community channels

www.regaljewelrygroup.com

TW.4807

Main Products Harmonized System Codes(HS Code)

7117 Imitation jewellery

• 711711Jewellery; imitation, cuff links and studs, of base metal, whether or not plated with precious metal

• 711719Jewellery; imitation, (excluding cuff links and studs), of base metal, whether or not plated with precious metal

• 711790Jewellery; imitation, of other than base metal, whether or not plated with precious metal

• 7113 Jewellery articles and parts thereof, of precious metal or of metal clad with precious metal

• 711311Jewellery; of silver, whether or not plated or clad with other precious metal, and parts thereof

• 711319Jewellery; of precious metal (excluding silver) whether or not plated or clad with precious metal, and parts thereof

• 711320Jewellery; of base metal clad with precious metal, and parts thereof

www.regaljewelrygroup.com

TW.4807

Reporting Countries Export Statistics (Partner Country World) Commodity: 7117, Imitation Jewelry & 7113

7113, Article Of Jewelry And Parts Thereof, Of Precious Metal Or Metal Clad With Precious Metal In the past three years, Thailand is the world's top ten silver jewelry exporters

==> picture [564 x 134] intentionally omitted <==

==> picture [564 x 137] intentionally omitted <==

Source: Gem and Jewelry Information Center

www.regaljewelrygroup.com

TW.4807

Thailand Major Export Country (2018-2020/4)

#7117 Imitation Jewelry

==> picture [707 x 256] intentionally omitted <==

----- Start of picture text -----

Thailand Major Export Country (2018-2020/4) 2020 Jan - Apr
#7117 Imitation Jewelry Unit ： USD million
Quarterly 1 Quarterly 2 Total
Country
2018 2019 2020 2018 2019 2020(APR) 2018 2019 2020
Singapore,
Singapore 14.93 18.32 12.01 16.66 21.12 1.96 73.7 76.33 13.97 13.97, 20%
USA 10.01 9.89 9.43 8.42 9.01 1.87 44.36 39.18 11.3 Liechtenstein
Hong Kong 4.16 5.69 4.98 3.79 4.43 1.1 17.61 22.48 6.08 , 30.03, 42% USA, 11.3,
16%
Switzerland 2.12 3.42 3.76 1.8 3.39 1.45 7.95 13.85 5.21
Germany 4.41 2.06 1.75 4.3 2.71 0.42 16.25 9.79 2.17
Belgium, 0.24,
China 1.42 0.75 0.41 0.83 2.47 0.02 4.38 5.35 0.43 HongKong, 6.08,
Australia 0.78 0.77 0.64 0.79 0.67 0.14 3.05 3 0.78 India, 0.11, 0%
Italy 0.96 0.8 0.91 1.54 0.72 0.02 5.9 2.71 0.93 Italy, 0.93, 1%
Switzerland, 5.21, 7%
India 0.2 0.37 0.11 0.13 0.57 0 1.1 1.38 0.11 China, 0.43,
Belgium 0.24 0.34 0.22 0.21 0.2 0.02 0.93 1.08 0.24 Australia, 0.78, 1%
Liechtenstein 35.65 37.72 27.46 38.68 37 2.57 165.05 157.29 30.03 Germany, 2.17,
Source: Gem and Jewelry Information Center
----- End of picture text -----

Thailand's export value also fell sharply due to COVID-19 in the 2020Q1.

www.regaljewelrygroup.com

TW.4807

Thailand Major Export Country (2018-2020/4) #7113 Jewellery articles and parts thereof, of precious metal or of metal clad with precious metal

==> picture [678 x 272] intentionally omitted <==

----- Start of picture text -----

Thailand Major Export Country (2018-2020/4)
2020 Jan - Apr
#7113 Articles Of Jewelry And Parts Thereof, Of Precious Metal Or
Singapore,
Of Metal Clad With Precious Metal Unit ： USD million Cambodia,
15.72, 2%
Quarterly 1 Quarterly 2 Total 4.48, 1%
Country 2018 2019 2020 2018 2019 2020(APR) 2018 2019 2020 India,
11.10, 2% Switzerland,
USA 214.17 199.71 216.26 272.84 208.27 35.91 1000.81 904.10 216.26 10.18, 2%
Australia, Belgium,
Hong Kong 215.4 194.67 59.85 99.57 103.95 6.53 618.15 541.13 59.85 33.57, 5% 1.63, 0%
Italy 32.08 45.25 43.92 15.57 14.13 1.85 78.8 191.74 43.92
China,
Germany 150.14 122.54 125.76 107.24 72.44 37.07 596.68 506.88 125.76
34.57, 5%
China 40.37 56.32 21.13 41.45 34.17 13.44 212.45 179.20 21.13
USA,
Australia 40.37 26.07 29.59 35.36 25.21 3.98 176.4 132.34 29.59 252.17,
Germany,
40%
India 8.99 5.38 11.1 13.63 20.67 0 41.35 70.92 11.10 162.83,
26%
Singapore 8.7 11.83 15.1 9.07 8.3 0.62 43.99 45.90 15.10
Cambodia 0.12 1.44 4.48 2.36 0.68 0 4.02 22.45 4.48
Switzerland 72.39 52.81 8.72 18.99 21.11 1.46 109.35 91.64 8.72
Belgium 1.15 1.11 1.51 1.75 1.73 0.12 6.09 6.05 1.51 Italy, HongKong,
45.77, 7% 66.38, 10%
Total 783.88 717.13 537.42 617.83 510.66 100.98 2888.09 2692.35 537.42
Source: Gem and Jewelry Information Center
----- End of picture text -----

Thailand's export value also fell sharply due to COVID-19 in the 2020Q1.

www.regaljewelrygroup.com

TW.4807

Thailand Major Export Country (2018-2020/04) #7113 Jewellery articles and parts thereof, of precious metal or of metal clad with precious metal

Thailand's export value also fell sharply due to COVID-19 in the 2020Q1.

Thailand Export Value(QoQ)#7113

==> picture [96 x 9] intentionally omitted <==

----- Start of picture text -----

Unit ： USD million
----- End of picture text -----

www.regaljewelrygroup.com

TW.4807

==> picture [50 x 76] intentionally omitted <==

2020 Jan to May Performance & Future Strategy

www.regaljewelrygroup.com

TW.4807

- COVID 19 risk management

Item

1. Plant Management

2. Cash Flow

Management

1. Expenses Saving

2. Inventory management

3. Supply Chain Management

4. Customer Management

Action

Established Covid-19 risk management team, to implement policies and actions such as body temperature monitoring, mask-wearing, regular disinfection, personal hygiene behavior build up and self-awareness.

Potential risk account payable monitoring. financial benchmark and credit prepare for sufficient cash flow.

Man-power and budget adjustment base on current and forecast revenue.

Lean inventory with better planning, utilize existing stocked or substitute materials with standard spec. by designing and molding.

• (1) Closely communicating with suppliers to ensure material supplies are sufficient. (2) Prompt to improve the global supply chain and to build partnership.

• (1) Improve overall performance and response to the customer immediately with better solutions in a variety of requests.

• (2) build close communication under the Covid-19 epidemic.

• (3) Strive to turn potential opportunities into a business relationship and develop new customers..

www.regaljewelrygroup.com

TW.4807

Regal Group 2020 Jan-May Operating overview

==> picture [216 x 49] intentionally omitted <==

==> picture [451 x 274] intentionally omitted <==

==> picture [233 x 262] intentionally omitted <==

----- Start of picture text -----

Gross margin : 24%
2020 Jan-May
Accumulated revenue is
NTD 697 million
N/I rate : 11%
EPS : 1.34
www.regaljewelrygroup.com
----- End of picture text -----

TW.4807

==> picture [385 x 278] intentionally omitted <==

==> picture [385 x 60] intentionally omitted <==

• ※ 2020Q2 figure has April and May revenues only.

www.regaljewelrygroup.com

TW.4807

McKinsey Report - Luxury Goods Industry

Under COVID-19 situation ， Luxury goods Industry global revenue contraction 35-39% 。 Fashion industry companies will suffer huge financial pressure.

==> picture [274 x 293] intentionally omitted <==

==> picture [185 x 286] intentionally omitted <==

www.regaljewelrygroup.com

Source: McKinsey&Company

TW.4807

Distribution & Dynamic of brand customers

==> picture [311 x 96] intentionally omitted <==

----- Start of picture text -----

歐洲 24%
北美 18%
全球性 58%
----- End of picture text -----

• →1. Since May 2020, EU & US customers return to normal, our Q3 is expectable. 2. The COVID-19 impact with offline business is greater than online business.

www.regaljewelrygroup.com

TW.4807

Customer Type Analysis

==> picture [590 x 232] intentionally omitted <==

----- Start of picture text -----

Base on RH’s revenues in 2020 Jan-May 2020 Jan-May
100%
80%
60%
43%
57% 40%
20%
0%
Type1 Type2 Type3
Online Offline
ONLINE OFFLINE
----- End of picture text -----

→Although global sales dropped by the epidemic, but customers are focusing on online marketing to boosting revenue. Therefore, the influence by Covid-19 epidemic to Regal was less than competitors in the industry.

www.regaljewelrygroup.com

TW.4807

Changes in consumption patterns

The State of Fashion

 Celebrity, KOL… Heterogeneous alliance to stimulate consumer desire to buy goods.

• Traditional jewelers accelerate the use of e-commerce platforms and social media to expand the market

Fast Digital

Once the e-commerce platform obtains resources, it will also develop offline to establish a physical storefront.

 Online e-commerce establishes consumer interactive platform, encourage consumers to share experience, stimulate buying desire, then increase sales value.

Changing

Source: McKinsey & Company

• Omni-channel selling is coming, focus on consumer experience and feelings. Increasingly high requirements for supplier cooperation– Quick quotation, a small variety of products, shorter delivery times, longer warranty periods, and price competition have become the norm.

www.regaljewelrygroup.com

TW.4807

The New Trend of Global Terminal Market

Generation Z(1995-)Rising of New Consuming Power

• 40% of the population in the world .

• USD 44 billion Consuming Power, 90% will furthermore affect their parents.

• 67 ％ care about fashion design far more than any other generation.

• Social Relationship & Value influence Gen-Z’s self-identity, brand loyalty and care more about social issues.

• Consumers be attracted by images will put aesthetics as their first priority .

Source: 2020年的15種新零售趨勢！產品客製化將成主流、AI將驅動新購物模式| ETtoday3C家電| ETtoday新聞雲 https://www.ettoday.net/news/20200125/1618887.htm#ixzz6PXxXTG5S

www.regaljewelrygroup.com

TW.4807

Special Certification

==> picture [164 x 78] intentionally omitted <==

==> picture [229 x 73] intentionally omitted <==

==> picture [248 x 73] intentionally omitted <==

==> picture [204 x 56] intentionally omitted <==

==> picture [300 x 52] intentionally omitted <==

==> picture [113 x 81] intentionally omitted <==

==> picture [187 x 56] intentionally omitted <==

www.regaljewelrygroup.com

TW.4807

Regal Group’s strategy & expectation

• The ultimate in craftsmanship

• The core green supplier of brand customers

• The partner who accompanies with customer's growth

• The incubator of potential brands

• The leader of the One-stop service solution

www.regaljewelrygroup.com

TW.4807

==> picture [317 x 57] intentionally omitted <==

==> picture [605 x 242] intentionally omitted <==

----- Start of picture text -----

RMS RIC
RJM
OEM
ODM
----- End of picture text -----

www.regaljewelrygroup.com

TW.4807

RIC introduction

• Inspiring and encouraging people or corporations to create mixmatch business opportunities.

 Pass on Regal philosophy of ”Loving and Sharing”, ”Cross-over team works”, “Creation and cooperation”, combined with professional manufacturing know-how and international marketing resources, team up with new corporations in Taiwan: new technology companies, business incubators and “ D.Vita ” young designers,…etc. Through and ReModa two platforms. aid to incubate designers from their inspiration till products roll out to markets.

(One-Stop Service from Design to Markets)

• RIC will offer entities who are interesting in creation, investment, manufacture, to support them with necessary resources and to satisfy their request in fashion life and customize product. (One-Stop Service from Markets to Design)

==> picture [163 x 195] intentionally omitted <==

www.regaljewelrygroup.com

RIC - The stage of Designer

==> picture [640 x 313] intentionally omitted <==

----- Start of picture text -----

 Corporation
Customize
 KOL
( Design Service )
Star-up Digital Law Capital  Personalize
Incubation Marketing Consultant Matchmaking
Manufacture Brand Media International
Production Packing Advertising Channel
Designer
E-Commerce  Consumer Market
(Product Service)  International Channel
----- End of picture text -----

TW.4807

RIC - The stage of Designer

==> picture [641 x 291] intentionally omitted <==

----- Start of picture text -----

Star-up Digital Law Capital Manufacture Brand Media International
Incubation Marketing Consultant Matchmaking Production Packing Advertising Channel
----- End of picture text -----

www.regaljewelrygroup.com

TW.4807

Today, Jewelry is not just Jewelry. Industry is Changing, same as Fashion & Luxury Industry. Regal is transforming into + Jewelry Stage

Technical . Craftsmanship . Design . Innovation

www.regaljewelrygroup.com

TW.4807

==> picture [36 x 55] intentionally omitted <==

==> picture [213 x 25] intentionally omitted <==

Thank You

TW.4807

w w w. r e g a l j e w e l r y g r o u p . c o m