Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova LifeStyle — Investor Presentation (October 2014)
20 slides from Xmax's investor presentation, October 2014
Slide 1: Corporate Presentation – October 2014
Corporate Presentation – October 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of th
Slide 3: Nova LifeStyle: Snapshot
Nova LifeStyle: Snapshot Nova LifeStyle, a U.S. company, is a rapidly growing designer, manufacturer and distributor of branded and third party modern LifeStyle furniture. An industry innovator and niche leader in the U.S. and abroad, Nova is a highly sought after quality OEM manufacturer, with a gr
Slide 4: Global Markets: Overview
Global Markets: Overview Global Percentage of Nova’s Overall Sales as of December 31, 2013 North America 56% Europe 18% China 25% Greater demand for furniture in the U.S.: •Higher disposable income and strong consumer sentiment projected through 2016 will help boost demand for furniture in the U.S.
Slide 5: Our Brands, Products & Innovations
Our Brands, Products & Innovations USA Europe & UAE Asia Products: •Leather upholstered furnishings •Living room seating, sofas, love seats, recliners, sectionals and accent chairs •Urban beds and latex sleep mattresses •Coffee tables and bar stools •TV stands, display shelving and room dividers •Di
Slide 6: Sales: US and Canada
Sales: US and Canada Diamond Sofa is a strong respected American brand and innovative distributor and designer of contemporary LifeStyle furniture products in the U.S. since 1992 Furniture Today's Top 100 U.S. furniture stores posted a 7.8% increase in furniture, bedding and accessories sales in 201
Slide 7: Established Customers and Sales Channels: U.S. and Canada
Established Customers and Sales Channels: U.S. and Canada 7
Slide 8: Sales: China
Sales: China Higher profit margins through direct sales in China 100+ franchisees in China since 2010, with a future goal of 200 locations Chinese furniture factory orders rose 5% in June with shipments ticking up by 4% according to Furniture Today August 29, 2014 Sales and Distribution •Profitable
Slide 9: Established Customers and Sales Channels: Asia and Australia
Established Customers and Sales Channels: Asia and Australia 9
Slide 10: Sales: Europe and U.A.E.
Sales: Europe and U.A.E. Products compliment consumer preferences for “urban contemporary”, smaller homes and apartments and trend of loft-style open look According to Euromonitor International’s Aug 2014 report, e-commerce sales growth has soared by 127% in current value terms over the past five ye
Slide 11: Established Customers and Sales Channels: Europe and U.A.E.
Established Customers and Sales Channels: Europe and U.A.E. 11
Slide 12: Marketing Strategy: Overview
Marketing Strategy: Overview • All furniture offerings are supported by sample display showrooms, brochures and online marketing • Franchise network in China to increase brand awareness among middle and upper middle- income consumer: • Participate in trade key exhibitions globally • Multiple high pr
Slide 13: Manufacturing Leader
Manufacturing Leader: Well recognized manufacturing capabilities and expert sourcing • Fully owned 1.1 million square foot manufacturing facilities in Dongguan, China • Annual production capacity of approximately 316,000 units • Updated production line, which meets IKEA's stringent specifications •
Slide 14: State-of-the-art Production Facilities
State-of-the-art Production Facilities Woodworking German Schelling Cutting Machines Board Sizing Board Pressing Powder Coating UV Automation Upholstery Warehousing and distribution 14
Slide 15: Milestones and Key Events - 2014
Milestones and Key Events - 2014 Began Signed continuous Added to Signed agreement with Ping trading supply agreement the Russell An Insurance Group, #62 on on the with Home Centre MicroCap® Forbes Global 2000 list of the NASDAQ in U.A.E. Index largest companies in the world Began development Initia
Slide 16: Growth Initiatives
Growth Initiatives Near-term and long-term initiatives for 2014-2015 • Continue to Expand Partnerships and Increase Sales Contracts • Continue to Create Innovative Designs • Increase Sales of our Higher-Margin Branded Products • Leverage e-commerce platform currently in development • Grow sales of h
Slide 17: Investment Highlights
Investment Highlights Financial Strength: Strong balance sheet and consistent track record of profitable growth 2013 Revenue CAGR of 40% Cash on hand - $2.5 million Accounts Receivables, Net - $33.1 million Established Distribution Channels: Direct access to the growing middle class in China
Slide 18: Financial Snapshot
Financial Snapshot Revenue $mm Net Income $mm $90.00 $5.50 $80.00 $5.40 $5.30 $70.00 $5.20 $60.00 $5.10 $50.00 $5.00 $40.00 $4.90 $4.80 $30.00 $4.70 $20.00 $4.60 $10.00 $4.50 $- $4.40 2010 2011 2012 2013 2010 2011 2012 2013 2010 – 2013: • Revenue CAGR of 40% • Gross margins of 19.6% in 2013 vs. 26%
Slide 19: Seasoned Global Management Team
Seasoned Global Management Team Jeffrey Wong – CEO, Co-Founder Tawny Lam - President, Chairperson of the Board of • 22 years of experience in the furniture industry Directors • Vice-Chairman, Dongguan Furniture Association • Joined in 2011 • Director, the International Furniture and Decoration (Hong
Slide 20: Contacts
Contacts NASDAQ: NVFY Corporate Headquarters IR Contact: 6565 E. Washington Blvd. KCSA Strategic Communications Commerce, CA 90040 USA Julie Silber Tel: (323) 888-9999 Tel: (310) 766-9760 Email: jsilber@kcsa.com www.novalifestyle.com 20
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