New Trends in International Trade for SMEs A

New Trends in International Trade for SMEs A Seamless Global Supply Chain Management Solution 11 December, 2008 1

About Tradelink 2008 Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong Granted license (2004 -2008) to continue provision of government document e-submission services Government becomes a shareholder 2003 1994 Established in Sep 1988 2005 Tradelink Beijing Established 2004 Selected by the Government as the developer and operator of DTTN 1992 1988 Granted exclusive franchise (1997– 2003) to provide e-submission services for certain trade-related documents 2

Government and Industry Expert Support Key players in the trading sector, including trade associations, terminal operators & financial institutions The HK SAR Government 43. 80% Public Shareholders 12. 29% 43. 91% Other Shareholders: - 100% Digi-Sign Certification Services Limited Building trust in electronic services with Digi-Sign security solutions 51% • 21% The HK SAR Government • 28% Trade Associations Digital Trade and Transportation Network The digital express link to you business partners worldwide 3

Tradelink’s Operating Mode Importers Exporters Freight forwarders Carriers Manufacturers Trading Community Logistics Services Providers Tradelink Transaction fee + Gov’t fee + e-submission of trade related documents Gov’t fee + e-submission of trade The HKSAR related documents Government e-confirmation Document checking and validation Security Solution Secure communication channel 7 x 24 electronic interface Document status tracking Hotline & onsite technical support and other customer services “Paper-to-electronic” conversion service Over 20 million transactions in 2007 4

Tradelink’s Government Services Details Import or Export Declaration (TDEC) • e-lodgment of import or export declaration with Customs Production Notification (PN) • e-lodgment of notification to the Trade & Industry Department about cut-and-sewn garments manufactured in HK Certificate of Origin (CO) • e-application for CO to the Trade & Industry Department or other government approved organisations Dutiable Commodities Permit (DCP) • e-application for DCP to Customs for import, export, manufacturing or storage of dutiable commodities Electronic Cargo Manifest (EMAN) (excluding road mode) Notifications under Textiles Trader Registration Scheme (TTRS) • e-submission of manifests for air, rail, water cargo to the Census Department and the Trade & Industry Department • e-receipt of notice / voucher from Customs and e-communication with other government departments • e-submission of notification to the Trade & Industry Department for textile trading under TTRS 5

Tradelink’s Commercial Services Details Trader Documentation Services (TDS) • web-based & client-based application solutions • facilitates secure electronic document exchange for international trade transactions Electronic Shipping Orders (SO) • platform that assists shippers and forwarders to prepare and submit shipping orders and obtain draft bills of landing Automated Manifest Services (AMS) • e-solution for carriers and non-vessel operating common carriers • meets the requirements under the “ 24 -hour Rule” imposed by the US Customs and Border Protection • Advanced Commercial Information (ACI) for Canadian Customs Digital Certificate • supports digital signatures • ensures secure electronic transactions DTTN • E-platform for the trade and logistics communities to enhance their operational efficiency and reduce cost • An e-business connector for the entire supply chain • A super electronic document conversion engine • A mega electronic data store (2 years online + 7 years offline) 6

DTTN – the Solution Meeting the Industry Challenges: Enhance Competitiveness: Disjoined Communities A Common Digital Platform to Facilitate Information Exchange 7

Community Role of the DTTN Sellers Freight Forwarders Buyers Government & Agencies Carriers Inspection Agencies Insurance Institutions Banks & Financial Institutions Terminals DTTN Key Services Offering Electronic message routing services Electronic message transformation services Portal services Data inheritance services Statistical and analytical reporting services Information security services 8

DTTN to Support the Whole Supply-Chain Support over 88 major documents related to trade, logistics and finance for both import and export business processes Purchase Process Delivery Purchase / Sales Order, Order Confirmation Packing List / ASN, Commercial Invoice, Inspection Certificate, Insurance Local and Overseas Transportation Booking, Shipping Order, Arrival Notices, Transport Documents - Master / House Waybill - Sea / Air, Cargo Receipt, Transport Set, EIR, Delivery / Release Order Government Trade Documents Financial Settlement Export / Import License, Customs Clearance, Certification of Origin etc. Letter of Credit, Company Guarantee, Bill of Exchange, L/C collection Letter; Document Arrival Notice 9

DTTN Interconnection Example (Purchase to Delivery) Goods Tracking Locations Goods Status (RFID / EPCGlobal) 6. Shipment Status (XML) 5. BL (XML) 2. SO, CI, PL (XML) Forwarders 3. Master SO (XML) 4. Master BL, Shipment Status (XML) Physical Delivery 1. PO (X 12) Buyer 1 4. Shipment Status (X 12) DTTN 1. PO (Excel) 2. SO, CI, PL (Excel) Seller 5. BL (Excel) 3. Master SO Carriers 3. Master SO (EDIFACT) 4. Master BL, Shipment Status (EDIFACT) 4. Master BL 6. Goods / Shipment Status (Web Services/XML) Shipment Status Application Service Provider 1 SO - shipping order CI - commercial invoice PL - packing list BL - bill of lading Application Service Provider 2 6. Shipment Status (Web) Buyer 2 10

Case Study: A Buyer in UK and its suppliers in H. K. and China 2. Purchase Order 10. Clean Document set Buying Office 1. Purchase Order UK Buyer 9. Invoice, Packing List, Bill of Lading ck ng, a , P di ice f La o nv l o. I Bil /CO 11 ist, e L 12. Invoice, Packing List, Bill of Lading, e/CO 3. Purchase Order 7. Bill of Lading TDS 4. Invoice, Packing List, Shipping Order 8. Invoice, Packing List, Bill of Lading 5. Sh Invo ipp ic ing e, P 6. Or ack Bi ll o de ing r f. L Li st, ad ing Suppliers Goods Delivery Freight Forwarder Physical Data 11

Extending Our Reach with Partners around the World Pan Asian E-Commerce Alliance Singapore, PRC, Thailand, Korea, Japan, Macau, Malaysia Other Regions: Australia, France, Spain, Mexico, United States, The Netherlands 12

Trading Processes The Missing Piece – Financial Services, e. g. Payment Business Matching Receive PO Chamber of Production Inspection Insurance Commerce Customs Outbound Freight Terminal Logistic Forwarder Payment E-Document Exchange 13

The Enhanced Payment Layer – Collaboration with SWIFT DTTN to provide possible docs/messages supporting transactions for payment/LC/open account related transactions 14

E-Trade (from PO to Payment) Forwarder Buyer Bonded Warehouse Transaction Warehouse Airliners Shippers Transport/CY Inspection Quarantine Government Services Seller Enable electronic document exchange between banks and traders Bank 15

The Bridge between the Trading Industry and Banks Tradelink/DTTN-SWIFT connection – An electronic gateway for the communication between banks and traders Documents can be submitted to banks via the connection – E. g. Purchase Order, Commercial Invoice, Shipping Documents & etc A single channel to communicate with all trading parties, including banks Minimize data entry efforts Minimize data entry error No constraints on collection time and collection location 16

Benefits to Banks’ Customers A one-stop service for the whole trading process Facilitate data exchange among the involved parties Provide data inheritance and avoid duplicated data input Keep track of trading document status and invoice/payment status at a glance Increase transaction visibility Improve cash flow management Improve productivity throughout the supply chain Obtain more comprehensive services from bank 17

Thank You!! 18