Company Profile 2017

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1 Company Profile 2017

2 17100 PIONEER BLVD. SUITE #230 ARTESIA, CA 90701, U.S.A. TEL: (1) FAX: (1)

3 KUKDONG APPAREL (AMERICA), INC. MANUFACTURER, IMPORTER & EXPORTER PIONEER BLVD, SUITE 230, ARTESIA, CA USA TEL : FAX : mikeg@kukdong.us ESTABLISHED - JULY 27, 1999 EMPLOYEES - 16 CAPACITY OF PRODUCTION - INDONESIA : 1,500,000 PCS /MONTH - MEXICO : 720,000 PCS/MONTH IMPORT/EXPORT ITEMS - ALL TYPES OF CIRCULAR KNITTED GARMENTS (lined and unlined): POLO SHIRTS, T-SHIRTS, ATHLETIC FLEECE, POLAR FLEECE, THERMALS, DRESSES, SKIRTS, PAJAMAS, PANTS, JOGGING SUITS IMPORT/EXPORT - USA/CANADA/EU (NAFTA compliant) MANUFACTURING FACILITIES - PT. KUKDONG INTERNATIONAL 14 SEWING LINES, 2 SAMPLE LINES AND ONSITE MERCHANDISING OFFICE - PT. SEMARANG GARMENT 38 SEWING LINES - MEX MODE S.A. de C.V. 45 SEWING LINES + Yarn Forward VERTICAL PRODUCTION KNITTING/DYEING 25K KILOS/DAY REFERENCE BANK - BBCN Bank USA

4 MEX MODE S.A. de C.V. (A subsidiary of Kukdong Apparel) Fabric Warehouse Screen Printing Waste Water Treatment Dyeing Knitting Sewing Plant Cafeteria Cutting Dormitory Embroidery

5 PRODUCTION CAPACITY KNITTING : 25,000 kg / DAY FLEECE, INTERLOCK, FRENCH TERRY, RIB, SINGLE JERSEY, FLATBACK RIB, PIQUE, WAFFLE, ETC. DYEING : 26,783 kg / DAY SEWING : 37,750 pcs / DAY 755,000 pcs / MONTH FACTORY Main Plant 2nd Plant 3rd Plant 4th Plant 5th Plant 6th Plant 7th Plant 8 th Plant Plant Mexmode KDC KDA KDG KDE DASAN URIREO EKHUZ KDF ESTABLISHED Jan- 99 Sep- 06 Jul- 07 Feb- 08 Nov- 13 Nov- 02 May- 08 Aug- 14 May-'16 SIZE 71,000m2 3,960m2 2,300m2 3,012m2 2350m2 7,000m2 7,000m2 2,000m2 3,000m2 SEWING LINES TOTAL WORKERS MONTHLY CAPACITY(ps) 4 &1 SPL Line , ,300 99,000 87,700 76, , ,000 60,000 35,000

6 MAIN FACTORY OVERVIEW Mex Mode Established Factory Size 08-Jan-99 71,000 m2 Total Workers 400 Sewing Lines sample Capacity / Month (pcs) 64,000 * PRODUCT COLLECTION

7 KNITTING MACHINES (92 CIRCULAR) FLEECE 18GG: 32EA 16.5GG: 31EA RIB 19EA SINGLE 10EA - Capacity: - 18GG = 7,500 kg/day GG = 9,000 kg/day - Manufacturer: Sam-Es - Capacity: 3,220 kg/day - Manufacturer: Keum young - Capacity: 5,150 kg/day - Manufacturer: Ssangyong

8 NEW MACHINES INSTALLED IN 2015/2016 Dept. Machine type Qty Unit Knitting Fleece 9 set Knitting Rib 2 set Sewing Feed-Off-The-Arm 4 Needle 6 Thread Flat Seam 2 set Sewing Laser Cutting Machine 1 set Sewing 3 needle Auto Overlock 6 set

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10 Farnsworth-Munsell 100 Hue Test

11 NEW MACHINES INSTALLED IN 2015/2016 Part Machine name Quantity Unit Dyeing Atmospheric Temperature Dyeing Machine 750KG*2EA, 1000KG*3EA, 1500KG*1EA, 2000KG*1EA, 500KG*1EA, 250KG*1EA 16 SET Dyeing Dyestuff & Chemical Mixing System 1 SET Dyeing CCK 1 SET Dyeing CCM 1 SET Dyeing Slitting, Padding Machine 1 SET *Major Benefits of New Dyeing Machines : - Eco-friendly, Low liquid ratio(1: 3.7~) =Less consumption of water, energy & dyestuff and less waste water - Reduction of total processing time ; 1 bath dyeing for Poly/cotton(H/T-A/T in same bath) - High efficiency: cleaner, faster, cheaper and more accurate

12 DYEING CAPACITY Work Center Dyeing Type Cycle Capa (kg) HT KG T/C 2 TURN 920/1000 1,840 HT KG T/C 2 TURN 920/1000 1,840 HT KG WHITE/ME 6 TURN 920/1000 5,520 HT KG T/C 2 TURN 144/ AT KG C 3 TURN 820/900 2,460 AT KG C 3 TURN 920/1000 2,760 Work Center Dyeing Type Cycle Capa (kg) HT KG T/C 2 TURN 690/750 1,380 HT KG T/C 2 TURN 690/750 1,380 AT KG C 3 TURN 280/ AT KG C 3 TURN 144/ AT KG C 3 TURN 45/ HT KG T/C 2 TURN 44/50 88 HT KG T/C 2TURN 460/ HT KG T/C 2TURN 230/ Total (kg) 26,783 HT KG T/C 2 TURN 1380/1500 2,760 T-SIDE TOTAL C-SIDE TOTAL 14,636kg 21,263kg HT KG T/C 2 TURN 1840/2000 3,680 WHITE/MELANGE TOTAL CAPACITY 5,520 kg 26,783kg

13 WASTEWATER/Planta de Tratamiento de Aguas Residuales 4. FINE SCREEN FINE SOLIDS REMOVAL Remoción de Sólidos Finos 9. DISINFECTION TANK COLI-TOTAL ELIMINATION Tanque de Desinfección 8. PHYSIC-CHEMICAL SEDIMENTATION TANK COLOR REMOVAL Tanque Físico-Químico: Remoción de Color FINAL DISCHARGE TREATED WATER MUNICIPAL DRAINAGE Descarga Final al Drenaje Municipal 1. DYEING DEPARTMENT Area de Teñido 2. COARSE SCREEN COARSE SOLIDS REMOVAL Criba Manual Remoción de Sólidos Grandes 3. PUMPING STATION SOLIDS REGULATION DF HYDRAULIC LOADS Receptor de Sólidos Cárcamo de Bombeo SULFURIC ACID TANK NEUTRALIZTION OF LOADS TO THE REACTOR Ph 9.5~10.0 >> Ph 7.5~8.0 Tanque de Acido Sulfúrico Para neutralizar PH 5. HOMOGENIZATION TANK EQUILIZATION-NEUTRALIZATION-COOLING Tanque de Homogenización(Temp.36 C) 6. BIOLOGICAL AEROBIC REACTOR TANK REMOVAL OF ORGANIC MATTER Reactor Biológico Remoción de Materia Orgánica 10. SLUDGE CONDITIONING TANK SLUDGE CONDITIONING POLYMER TANK Acondicionador de Lodos COAGULANT, SLUDGE PRECIPITATION 200mg/l Tanque de Coagulante 7. SECONDARY SEDIMENTATION TANK SEPARATION OF BIOMASS OF THE TREATED WATER Tanque Secundario Separación de Biomasa POLYMER TANK SLUDGE CONDITIONER FLOCULANT 700mg/l Tanque de Polímero 11. FILTER PRESS SLUDGE DEWATERING Filtro Prensa 12. SLUDGE DEWATERING CONTAINER Tanque Receptor de Lodo Compactado TAG. DESCRIPTION CAPACITY CAPACITY FUNCTION TAG. DESCRIPTION UNIT QUANTITY UNIT QUANTITY FUNCTION CM-000 COARSE SCREEN Lps 0-75 COARSE SOLIDS REMOVAL T-400 DISINFECTION TANK m3 42 Coli-Total ELIMINATION T-000 PUMPING STATION m REGULATION OF HYDRAULIC LOADS T-500 SLUDGE CONDITIONING TANK m3 86 SLUDGE CONDITIONING CR-100 FINE SCREEN Lps 57 FINE SOLIDS REMOVAL T-501 POLYMER TANK m3 5 SLUDGE CONDITIONING T-100 HOMOGENIZATION TANK m EQUILIZATION-NEUTRALIZATION-COOLING T-600 PHYSIC-CHEMICAL SEDIMENTATION TANK m3 236 COLOR REMOVAL T-101 SULFURIC ACID TANK m3 5 NEUTRALIZATION OF LOADS TO THE REACTOR T-601 POLYMER TANK m3 5 COAGULANT,SLUDGE PRECIPITATION T-200 BIOLOGICAL AEROBIC REACTOR TANK m REMOVAL OF ORGANIC MATTER FP-500 FILTER PRESS ft SLUDGE DEWATERING T-300 SECONDARY SEDIMENTATION TANK m3 721 SEPARATION OF BIOMASS OF THE TREATED WATER

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15 GENERAL PROCESS (DYEING & FINISHING) PREPARATION DYEING SPIN-DRY YARN LOT, BULK RATE, FABRIC TYPE INSIDE BRUSH DRY SLITTING HITEC SHRINK HEAT SET INSPECTION PACKING/WAREHOUSE TENTER YARN, CONSTRUCTION, DYE, FINISH

16 NEW MACHINES INSTALLED IN 2015 Part Machine name Quantity Unit Dyeing Spray Tumble Machine (Capacity: 3,000kg/day) 1 SET Dyeing Wastewater Heat Recovery Machine 1 SET Sewing Seam Suction Device (Attached on sewing machine) 50 SET

17 GERBER CAD SYSTEM

18 GERBER CUTTING AUTOMATION

19 EMBROIDERY (In-house) 7 SETS X 22HEADS (TAJIMA BRAND) 5 SETS X 20HEADS (TAJIMA BRAND) Capacity: 350,000 pcs / Month (Based on 24,000 Stitch) EMBELLISHMENT PRINT - FDE Industries (In-house, Certified by Carhartt/VF) (2) 8-color screen printing machine (1) 14-color screen printing machine (2) Dryers 52 Width (5) 1 piece Heat Transfer Machines (1) 4 piece Heat Transfer Machine * Maximum screen size: 19.5 x 27 Capacity: 350,000 pcs / Month

20 SEWING PLANT GENERAL PROCESS (SEWING PLANT)

21 COMPLIANCE PERFORMANCE WRAP CERTIFICATE: Level PLATINUM the highest (Aug 24, 2015 ~ Aug 24, 2017) Platinum level certification (formerly known as A level certification) Valid for two years. Full compliance with all WRAP principles for three consecutive years. Gold level certification ( B level ) Valid for one year. Silver level certification ( C level) Valid for 6 months minor non-compliances in policies

22 COMPLIANCE PERFORMANCE C-TPAT CERTIFICATE (Customs-Trade Partnership Against Terrorism) (CERTIFIED SINCE 2010 AND RE-VALIDATED IN 2019)

23 COMPLIANCE PERFORMANCE VF GROUP CERTIFICATE (Since 2011) WILLIAMSON-DICKIES (2016)

24 COMPLIANCE PERFORMANCE FANATICS AGREEMENT (2016)

25 03 MEX MODE S.A. DE C.V. - SATELLITE FACTORIES K D COMPANY S.A. DE C.V. INDUSTRIAS KDA S.A. DE C.V. K D GARMENT S.A. DE C.V. K D ELIM S.A. DE C.V. DASAN CONFECCION S.A. DE C.V. URIREO HAN MODA S.A. DE C.V. EKHUZ CONFECCION S.A. DE C.V. K D FASHION S.A. DE C.V

26 03 SATELLITE FACTORIES - KDC S.A. DE C.V. ESTABLISHED SEP 2006 (KD COMPANY S.A. DE C.V.) FACTORY SIZE(LAND) 3,960m 2 (42,625ft 2 ) CERTIFICATES : WRAP NUMBER OF WORKERS TOTAL : 299 PERSONS WORKER LIST KOREAN STAFF 2 LINE 1 33 MANUAL 17 LINE 2 50 MANUAL 14 MACHINE LIST OVER LOCK REGULAR 36 COVER STITCH 17 SINGLE NEEDLE LOCKSTITCH 60 LINE 3 17 MANUAL 5 DOUBLE NEEDLE LOCKSTITCH 6 LINE 4 64 MANUAL 13 INSPECTION 30 PACKING 16 CUTTING 18 ACCESSORIES 3 OFFICE 5 SECURITY 5 DRIVER 1 CLEANING 5 TOTAL 299 BARTACK MACHINE 6 POCKET MACHINE 1 CUTTING 6 HEAT TRANSFER MACHINE LABEL MACHINE 4 3 BUTTONHOLE 1 OVERLOCK 5 THREADS 3

27 03 SATELLITE FACTORIES - KDA S.A. DE C.V. ESTABLISHED JUL 02, 2007 (INDUSTRUAS KDA S.A. DE C.V.) FACTORY SIZE(LAND) 2,300m 2 (24,756ft 2 ) CUTTING CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 196 PERSONS WORKER LIST CUTTING 8 MACHINE LIST OVER LOCK 40 SEWING INSPECTION LINE 1 66 LINE 2 30 COVER STITCH 24 LINE 3 30 INSPECTION 20 QUARTERMASTER 9 SINGLE NEEDLE LOCKSTITCH 30 PACKING 17 IRONING 2 OFFICE 10 DOUBLE NEEDLE LOCKSTITCH 4 SHIPPING PACKING MAINTENANCE 2 STOCK 2 BARTACK MACHINE 2 TOTAL 196 MULTI NEEDLE 1 CUTTING 3 ELBOW COVER STITCH 2

28 03 SATELLITE FACTORIES - KDG S.A. DE C.V. ESTABLISHED FEB 01, 2008 (K D GARMENT S.A. DE C.V.) FACTORY SIZE(LAND) 3,012m 2 (32,420ft 2 ) CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 303 PERSONS WORKER LIST LINE 1 33 LINE 2 51 LINE 3 33 LINE 4 67 LINE 5 16 INSPECTION 30 PACKING 32 IRONING 6 MAINTENANCE 4 QUARTERMASTER 4 CUTTING 17 OFFICE 6 STOCK 4 TOTAL 303 MACHINE LIST OVER LOCK REGULAR 49 COVER STITCH 35 SINGLE NEEDLE LOCKSTITCH BARTACK MACHINE OVERLOCK 4 THREAD EYELET PRESS 2 BUTTONHOLE 2

29 03 SATELLITE FACTORIES - KDE S.A. DE C.V. ESTABLISHED NOV 25, 2013 (K D ELIM S.A. DE C.V.) FACTORY SIZE(LAND) 2,350m 2 (25,295ft 2 ) CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 62 PERSONS WORKER LIST LINE 1 22 LINE 2 19 LINE 3 0 LINE 4 0 CUTTING 4 INSPECTION 7 PACKING 4 IRONING 1 MAINTENANCE 1 QUARTERMASTER 0 OFFICE 4 STOCK 0 MACHINE LIST OVER LOCK REGULAR 39 COVER STITCH 21 SINGLE NEEDLE LOCKSTITCH BARTACK MACHINE OVERLOCK 4 THREAD EYELET PRESS 4 BUTTONHOLE 4 TOTAL 62

30 03 SATELLITE FACTORIES - DASAN CONFECCION S.A. DE C.V. ESTABLISHED NOV 2002 (DASAN CONFECCION S.A. DE C.V.) FACTORY SIZE(LAND) 7,000m 2 (43,556ft 2 ) CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 380 PERSONS WORKER LIST LINE 1 33 LINE 2 33 LINE 3 33 LINE 4 33 MANUALS 20 BANDING 15 CUTTING 4 INSPECTION 17 PACKING 8 MAINTENANCE 3 QUALITY 7 OFFICE 12 STOCK 3 TOTAL 221

31 03 SATELLITE FACTORIES - URIREO HAN MODA S.A. DE C.V. ESTABLISHED MAY 08, 2008 (URIREO HAN MODA S.A. DE C.V.) FACTORY SIZE(LAND) 7,000m 2 (59,201ft 2 ) CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 400 PERSONS WORKER LIST LINE 1 36 LINE 2 36 LINE 3 36 LINE 4 36 LINE 5 36 LINE 6 38 BANDING 6 CUTTING 9 INSPECTION 14 PACKING 7 MAINTENANCE 8 QUALITY 6 OFFICE 4 UNRAVEL 7 IRONING 1 TOTAL 280

32 03 SATELLITE FACTORIES - EKHUZ CONFECCION S.A. DE C.V. ESTABLISHED AUG 14, 2014 (EKHUZ CONFECCION S.A. DE C.V.) FACTORY SIZE(LAND) 2,000m 2 (22,500ft 2 ) CERTIFICATES : WRAP NUM OF WORKERS TOTAL : 110 PERSONS WORKER LIST LINE 1 32 LINE 2 32 LINE 3 0 LINE 4 13 CUTTING 4 INSPECTION 12 PACKING 8 MACHINE LIST OVER LOCK REGULAR 54 COVER STITCH 19 SINGLE NEEDLE LOCKSTITCH 29 IRONING 2 MAINTENANCE 2 QUARTERMASTER 3 OFFICE 2 BARTACK MACHINE 4 STOCK 0 TOTAL 110 MULTI NEEDLE 2

33 03 SATELLITE FACTORIES - KDF S.A. DE C.V. ESTABLISHED MAY2016 FACTORY SIZE(LAND) 3,132m 2 (33,712.57ft 2 ) CERTIFICATES : WRAP, FANATICS NUMBER OF WORKERS TOTAL : 151 PERSONS WORKER LIST KOREAN STAFF 2 LINES 54 TRAINING 14 MACHINE LIST OVER LOCK REGULAR 74 COVER STITCH 37 INSPECTION 20 PACKING 9 MANUAL 26 SUPERVISOR 4 MECHANIC 4 SINGLE NEEDLE LOCKSTITCH DOUBLE NEEDLE LOCKSTITCH 32 2 GRIDDLE 2 CUTTING 5 BARTACK MACHINE 6 OFFICE 4 SECURITY 3 DRIVER 1 HEAT TRANSFER MACHINE 2 CLEANING 3 TOTAL 151 BUTTONHOLE 2

34 KUKDONG APPAREL WORLDWIDE KUKDONG CORPORATION, SEOUL, KOREA DONGBO BLDG. 7-8TH FLOOR # 405 (JANGAN-DONG) CHEONHO-DAERO DONGDAEMUN-GU, SEOUL, KOREA TEL: (822) FAX: (822) molee@kd.co.kr KUKDONG APPAREL(AMERICA), INC PIONEER BLVD. SUITE #230, ARTESIA, CA 90701, U.S.A. TEL: (1) FAX: (1) mikeg@kukdong.us

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