SYNERGY HOUSE ENGAGED AS AUTHORISED SERVICE PARTNER IN MALAYSIA BY ONE OF THE WORLD’S LARGEST HOME RETAILERS, OPENS UP NEW BUSINESS MODEL 

SHAH ALAM, 11 June 2024 – Synergy House Berhad (“Synergy House” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, shares that its wholly- owned subsidiary Synergy House Global Sdn Bhd (formerly known as Sunny & Ker Furniture Industries Sdn. Bhd.) (“SHG”) has been engaged as the authorised service partner in Malaysia by one of the world’s largest home retailers (the “Retailer”).

As an authorised service partner, SHG will be responsible mainly on supporting the Malaysian local manufacturers and vendors by facilitating a seamless integration into the Retailer’s global e-commerce platform. In addition, SHG will also collaborate with the Retailer to co-organize online and offline events with the Retailer aimed at, amongst others, the onboarding of new vendors and creating awareness about operating in the Retailer’s e-commerce ecosystem. SHG will be organizing the inaugural event for the introductory session to vendors on 3rd July 2024 with the expected attendance of representatives from the Retailer. For the first phase, it is expected that SHG will be creating the awareness of the program mainly to the furniture manufacturers, to be followed by larger number of vendors of various home furnishing products.

Upon successful onboarding into the Retailer’s platform for the vendors, SHG is expected to also collaborate directly with the vendors on selected support services in terms of operating in the platform such as advisory roles including but not limited to strategic advice on product selections, linkage to other service providers, advertisements and promotions and issues troubleshooting.

Executive Director of Synergy House, Mr. Tan Eu Tah commented, "We are immensely excited for this new opportunity where SHG will play an important role in creating awareness operating as a cross-border ecommerce player. SHG will also be able to connect the vendors with relevant service providers to ensure support for the vendors to operate in the Retailer’s platform as they tap into its the vast network. Synergy as a Group had built a strong track record and experience in the cross-border e-commerce segment and this has been reflected in our financial results.”

Executive Director of Synergy House, Mr. Teh Yee Luen added, "This milestone event will open up a new possibility of income stream for SHG through selected services that SHG is able to provide to the vendors. Hence, this new business model will open up growth opportunities on top of our current B2C and B2B business models. In addition, we acknowledge that the global e-commerce market is huge and this opportunity allows for SHG to penetrate new markets and customer segments through the vendors and manufacturers which SHG supports.”

The said engagement is not expected to have any immediate material effect on the earnings, earnings per share, net assets per share and gearing of the Group. There are no foreseeable significant risks other than manageable operational risk associated with the engagement. None of the directors, major shareholder and/or persons connected to them has any interest, direct or indirect in the engagement.