WFTZ Logistics Presentation 2010 -10 -11 Contents

WFTZ Logistics Presentation 2010 -10 -11

Contents + WFTZ Overview + ITOC Service + Asia-pacific Distribution Center Case + Q&A

WFTZ Overview Waigaoqiao Free Trade Zone (WFTZ), launched in June, 1990, boasts as the first and largest free trade zone in China. Multifunction of international trade, advanced manufacture, modern logistics and techservice 76. 5 billion USD of im/export volume in 2010 the most active FTZ in the world ——Financial Times, 2001 International Trade Pioneer ——Ministry of Commerce, 2011

WFTZ Overview Trade contact with over 143 states and districts Over 8500 companies invest more than 1, 500, 000 USD 130 of Fortune 500

WFTZ Overview • Business Mode Waigaoqiao Free Trade Zone features import/export, transit trade, processing, storage, transportation, trading, techservices of repairing, statistics exchange, R&D, etc. • Preferential Policy Goods free swap between WFTZ and overseas Goods exempt from tariff, VAT, import certificate Company opening both foreign and RMB account, keeping full earning of foreign exchange

WFTZ Overview——Plan 港区三期 保税区物流中心 一期 1. 03 KM 2 港区二期 港区一期 保税区B区 0. 34 KM 2 码头四期 内陆港区 码头五期 港区四期 1. 63 KM 2 A 港区五期 码头六期 1. 60 KM 2 港区六期 1. 60 KM 2 B 外高桥 保税区 浦东地铁 C 保税区物流中 心 二期 2. 73 KM 2 内河航运区 外高桥保税物流园区 2期 1. 68 KM 2

ITOC Services In response to strategic layout of constructing "4 centers" of Shanghai, Shanghai Waigaoqiao international trade operating Co. , Ltd (ITOC) is launched, by Shanghai Free Trade Zones Administration, to be a trade-optimizing and function-operating platform. ITOC shoulders the responsibility of optimizing trade, building professional platform, increasing trade amount. 400, 000 RMB income 50, 000 RMB registered capital 500, 000 USD Trade volume 18 years' history Ranking 1 st in PD 5000 clients 1800 staff 200, 000 customs-clearance annually 300 contact staff 300, 000 m 2 WH Ranking 1 st in WFTZ

ITOC Services ITOC----the most powerful logistics supplier in WFTZ Ø Trade Agency Ø Customs Declaration $500, 000 in 2010 200, 000 Customs clearance in 2010 Ranking 1 st in PD Features • >10 years business experiences • 200 contact staff • Proficient in WFTZ policy • Business covers all ports, export zone, bonded zone and logistics zone in SH Ranking 1 st in WFTZ Features • • • Inbound pre-input system CIQ application system Online tax payment system Pre-input print system Rapid response and no delay

ITOC Services ITOC----the most powerful logistics supplier in WFTZ Ø WH management 300, 000 m 2 in 2010 Ranking 1 st in WFTZ Ø BLP Service Features • • 25000 m 2 WH； 10% market share tax refund international purchase, distribution ； Features • 7. 0 -9. 0 m height； • 750 kg-3000 kg load capacity • Fire sprinkler/CCTV monitor • forklift、hydraulic lift and fork lift truck • Dangerous good WH, temperature-controlled WH Ø Transportation Kind Inspected truck with GPS Truck number 37 >400

ITOC Services ITOC----the most powerful logistics supplier in WFTZ • • • ITOC has leading warehousing resource in waigaoqiao. ITOC is managing 320, 000 sqm warehouses. Temperature-controlled warehouse, refrigerant warehouse, Dangerous Goods Warehouse, all kinds of bonded & non-bonded warehouse resources and other special resources

ITOC Services ITOC----the most powerful logistics supplier in WFTZ Ø IT system Features l. IT system applicable to group enterprises l it system covering trade agency, customs declaration, CIQ declaration, transportation, bonded/nonbonded storage, documentation, financial Value added service, settlement service

ITOC Services ITOC----the most powerful logistics supplier in WFTZ Ø Pre-catalogue service l. Pre-cataloguing for over 300 companies, totalling over 100, 000 items l. Covering fields of mechanic, electronic, textile, pharmacology, medical device and food, etc Feature l l High accuracy Low error-rate Speed up customs clearance Exempt from cataloguing reinspection in SH l ITOC explain to customs for catalogue difference l Increase accuracy of cost control and decrease trade risk

ITOC Services Customs and quarantine declaration Clients sending orders • Arrival note • B/L • Outbound note • Customs Declaration warrant • invoice Business Dpt. Analyzing Designating WH management transportation … settlement … Task compelete, result feedback Assist & support HR + IT + Finance

ITOC Services——cooperative history Cooperative History 10 years’ cooperation (2001– present ) Operative Mode overseas SH airport freight forwarding WH Customs clearance transportation 2 -4 days Domestic buyer

Asia-pacific Distribution Center Case A famous electronic device company Old Mode overseas SH airport freight forwarding WH Customs clearance transportation 2 -4 days Domestic buyer

Asia-pacific Distribution Center Case Customized Mode Inbound registration Export, tax refund Domestics BLP supplier Overseas 5+2 system supplier WASC WFZ Asia-pacific distribution center Domestics buyer distribution q. Pre-catalogue Inspected zone 5+2 system q. Pre-CIQ q. Distribution export transit Overseas buyer

Asia-pacific Distribution Center Case Comparison place port mode time Customs 2~3 Days clearance at totaling advantages 2. 5~3. 5 Dadys ----- +0. 5 Day disadvantages 1. time not controllable port Destination : shanghai 2. only applicable to +transportation remark import WFTZ WASC +Distribution 6~8 hours +0. 5 hours +transportation +0. 5 days 24 hours 1. time controllable 2. applicable to import, export, transit, etc. ---- Destination: Shanghai Airfreight cargo

Conclusion • Competitive Strength of ITOC – – One-stop Service：Powerful supplier of trade and logistics One-stop logistics capability ：customized logistics solution Government background WFTZ resources：abundant resources and support from Waigaoqiao group – Founder of WFTZ functional trade platform – Well-known brand

Conclusion Some clients

Q &A