Synergy House Expands its RTA Business into US Market with New Subsidiary

The company is strengthening its market reach in its overseas positioning

SHAH ALAM, 20 June 2023 - Synergy House Berhad("Synergy House" or the "Group"), a cross-border e-commerce seller and furniture exporter that specialises in affordable ready-to-assemble (“RTA”) home furniture had announced today that its wholly-owned subsidiary, Synergy House Furniture Sdn. Bhd (“SHF”) completed the subscription of 1,000 ordinary shares for USD 1.00 each representing 100% of the paid-up share capital in Synergy House Furniture Inc (“Synergy US”) for a total cash consideration of USD1,000.

With the completion of the subscription, Synergy US is now a wholly-owned subsidiary of Synergy House through SHF.

Executive Director of Synergy House, Mr. Tan Eu Tah said “We are truly excited with the successful subscription of shares of Synergy US, as this will play a crucial role in the continuous expansion of the company and riding on the wave of growing global e-commerce furniture market. Having a subsidiary in the United States of America (“USA”) will enable the Group more flexibility to onboard to more e-commerce platforms in the USA and to further grow our business-to-consumer (B2C) sales segment. We see the USA as having huge potential with a large e-commerce furniture market and this move will further accelerate our growth in our B2C segment and in the USA market.”

Synergy-US was incorporated on 7 July 2022 in the state of Oregon, USA and will be utilized by the Group as another channel to expand its sales of RTA home furniture within the USA.

Synergy House’s business model is centred on an efficient and asset-light model whereby it outsources all manufacturing to third party manufacturers and focuses on sale of home furniture via both business-to-business (B2B) and B2C sales channels. For the 1^st quarter ended 31 March 2023, the Group recorded a total B2C sales of RM24.2mil which is approximately 49% of the Group’s total B2C sales for 12 months financial year ended 31 December 2022.

The USA was the Group’s largest market contributing to approximately 49.47% of the Group’s total revenue for the 1^st quarter ended 31 March 2023.

Synergy House made its public debut on the ACE market on 1^st June 2023 and raised a total of RM 34.4million for the purpose to fund its business expansion and repayment of bank borrowings amongst others. Tan said the company will continue to explore new markets and opportunities in the borderless world of e-commerce to ensure continuous growth.