1. WFTZ Logistics Presentation 2010-10-11

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

3. 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 tech- service 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

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

5. Business Mode Waigaoqiao Free Trade Zone features import/export, transit trade, processing, storage, transportation, trading, tech- services 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

6. 外高桥 保税区 保税区 B 区 0.34 KM 2 保税区 B 区 0.34 KM 2 港区三期 港区一期 港区二期 保税区物流中心 一期 1.03 KM 2 保税区物流中心 一期 1.03 KM 2 港区五期 1.60KM 2 港区五期 1.60KM 2 港区四期 1.63KM 2 港区四期 1.63KM 2 港区六期 1.60KM 2 港区六期 1.60KM 2 保税区物流中 心 二期 2.73KM 2 保税区物流中 心 二期 2.73KM 2 内河航运区 1.68KM 2 内河航运区 1.68KM 2 外高桥保税物流园区 2 期 A B C 码头四期 码头五期 码头六期 浦东地铁 内陆港区 WFTZ Overview——Plan

7. 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. 500,000,000 USD Trade volume Ranking 1st in PD 18 years' history 5000 clients 1800 staff 300 contact staff 300,000m2 WH Ranking 1st in WFTZ 200,000 customs-clearance annually Ranking 1st in WFTZ 400,000,000 RMB income 50,000,000 RMB registered capital ITOC Services

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

9. 300,000 m2 in 2010 Ranking 1st in WFTZ Features 7.0-9.0 m height ； 750kg-3000kg load capacity Fire sprinkler/CCTV monitor forklift 、 hydraulic lift and fork lift truck Dangerous good WH, temperature-controlled WH  BLP Service Features 25000m2 WH ； 10% market share tax refund international purchase, distribution ； Kind Inspected truck with GPS Truck 37 number >400  Transportation  WH management ITOC Services ITOC----the most powerful logistics supplier in WFTZ

10. ITOC has leading warehousing resource in waigaoqiao. ITOC is managing 320,000sqm 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

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

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

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

14. 10 years’ cooperation (2001– present ) Operative Mode Operative Mode overseas SH airport freight forwarding WH Domestic buyer Customs clearance transportation 2-4 days Cooperative History Cooperative History ITOC Services—— cooperative history

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

16. 5+2system BLP WFZ Asia-pacific distribution center distribution  Pre-catalogue  Pre-CIQ  Distribution Customized Mode Customized Mode Domestics buyer export transit Export, tax refund Inbound registration WASC Overseas supplier Domestics supplier Overseas buyer 5+2 system Inspected zone Asia-pacific Distribution Center Case

17. Comparison placemodetimetotaling advantages disadvantagesremark portCustoms clearance at port +transportation 2~3Days +0.5Day 2.5~3.5Dadys ----- 1. time not controllable 2. only applicable to import Destination : shanghai WFTZWASC +Distribution +transportation 6~8hours +0.5hours +0.5days 24hours1. time controllable 2. applicable to import, export, transit, etc. ---- Destination: Shanghai Airfreight cargo Asia-pacific Distribution Center Case

18. 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

19. Conclusion Some clients Some clients

20. Q&AQ&A