Inbound Hong Kong

Hong Kong Market overview Hong Kong has a population of 7 million inhabitants 4 million buy online Online sales amounted to a value worth $3.5 billion in 2014 The annual average online spend $535 The average order value is $321 The top 3 categories Clothing & Accessories Books Electronic equipment The top 3 countries they buy from US China UK “Hong Kong doesn’t levy duty, sales tax or other import charges, and its people have strong U.S. awareness – making cross- border buying attractive”

Highlights of our delivery service to HK Delivery via our own local Hong Kong network Different injection points into Hong Kong DDP service available, clearance* into HK via our own network Full tracking from origin including pickup, customs clearance and end-delivery Delivery service at home with proof of delivery (a scan with signature is provided ) – 1 delivery attempt (addressee will be contacted before delivery to make sure consignee at home. Second delivery will be at a surcharge) Covering HK in average between days from US, EU, Asia, AU for main cities & large populated areas Final mile delivery in HK from 2-3 business days Maximum weight : 66 lbs (30kg) and parcel size: length is maximum 59 inch** (150cm**) and length + width + height < 118 inch (300cm) *No duty free & no sales tax charged **Deviation of these features as well as shorter transit times can be offered through another services.

Operational flow to deliver into HK StepDescriptionTransit 1Buyer places order onlineDay 0 2 We pick up parcels in your facility or you drop at our facility. We consolidate and prepare for delivery to HK Day 1 3 We airlift parcels into Hong Kong and perform customs clearance through our partner US: 2-3 days EU: 2-4 days Asia: 1-2 days AU: 1-2 days 4 Parcels are injected into our local HK networks for delivery within HK 2-3 days

Transit times for shipping to HK via Hong Kong *start from LG facility – 1 extra day for handling Hong Kong days 3 days Final Mile HK Delivery Transport to HK* From US:2 - 3 days From EU: days From Asia: days From AU: days E2E transit times to HK (main areas) From US: days From EU: days From Asia: days From AU: days Injection