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China Confidential Search. Select. Supply.

China Confidential is a leading Australian procurement consultancy that assists established businesses source product from China. We have the ability to identify and manage manufacturers of both off-the-shelf ��and custom-made products. Our key goals are to reduce risk and cost for our clients, who benefit from product made to Australian standards at Chinese prices. Introduction Established 2005 Head Office Sydney Employees 10 China Offices Shanghai & Guangdong Partners APC Logistics, Kennovations Members SCLAA, ACBC

Experience Construction Materials Fencing Materials Hotel Joinery Safety Rope Cable Covers Fine Porcelain Toughened Glass Industrial Fasteners Metal Fabrication Silicon Seals Truck Tyres Display Equipment Electrical Leads Precision Casting High Heel Shoes Electric Motorcycles Hardware Items Custom Stationery USB Devices Custom Bottles Digital Printing Injection Moulding Copper Windings Traffic Cones Hotel Furniture Permanent Magnets Aluminium Extrusion Traffic Safety Outdoor Furniture Cotton Textiles Power Cable Steel Tube Refrigeration Display Ceramic Tiles Building Materials Stone Finishes Stone Finishes Medical Equipment Distribution Boxes Plywood Sheets Tool Manufacturer Diesel Generators Petrol Generators Cosmetics Packaging Plastic Packaging Safety Equipment Lime Hydrate Ice Machines Irrigation Supplies Formal Dresses Packaging Machinery Irrigation Supplies Warehouse Equipment Screen Printing Shade Equipment Wind Turbines Oil Spill Control Commercial Furniture Urea Fertilizer Custom Plastics

Managed Procurement ‘ The more a company can accomplish before a single hand starts processing a single physical good in China, the fewer surprises and delays will occur downstream. The procurement process of identifying, qualifying, and contracting with new manufacturing partners needs to be done thoroughly. This means it should be executed by people on the ground in China with the right expertise who understand both the local environment and a company’s specific supply chain requirements’. Aberdeen Group © 2004. How Companies Are Managing — and Improving — Their "Inbound from China" Supply Chains The China Trade Management Strategies Benchmark Report

Major Business Challenges in China % of businesses facing these concerns in China

Features of China Confidential’s Service

Benefits of Using China Confidential

Reported Savings Across Products Sourced from China Leading China Sources Practices, Boston Consulting Group 2007 Product Type Range of landed costs savings on products sourced from China Metal Parts Forging 10%-40% Casting and machining 0%-40% Stamping and machining 0%-40% Powder metallurgy 10%-50% Machining 10%-40% Extrusion 10%-30% Plastics and rubber parts Functional 10%-40% Decorative 10%- 40% Electronics and electronic parts Passive components 0%-50% Printed circuit boards and printed circuit board assemblies 0%-40% Electronic manufacturing systems 0%-40% Motors 10%-50% Mechanical parts Electromechanical assemblies 10%-30% Others Outsourced finished products 0%-40% Raw materials 0%-30% Capital Expenditures Tooling 20%-60% Machinery 20%-40%

Success in China Successful companies rely on direct contacts with Chinese suppliers managed through their HQ instead of unsuccessful companies who rely on Chinese agents (state-run or private). Two-thirds of successful companies who organise their China sourcing activities in this way achieve average cost savings of more than 25%. Bearing Point, (2006) China Sourcing Survey 2006; Survey Approach, Results and Conclusions

Your Investment China Confidential offers two proven cost saving fee structures. Successful companies engage China Confidential to manage their China procurement to realize potential savings of 25% or more.

Savings Achieved from Current Clients

Typical Project Timeline . Shipping Production Sampling Research 30 days 1-180 days depending on requirements and complexity, off-the-shelf/custom made. 30 days 30 days

CASE STUDY ACES Cable China Confidential takes charge of the entire procurement cycle, from initial price negotiation, sampling and order placement for new and established cable types to pre-shipment goods inspection and delivery. All communications are verified in both English and Chinese, with Australian account management to understand client requirements, and local inspectors to monitor supplier performance on-site After client approval of pre-shipment Quality Assurance report, China Confidential works with trusted logistics partners to manage delivery to required location(s). This can include on-site supervision of loading and unloading in China and Australia, and features real-time reporting on delivery schedules. New and existing products are made to specification and certified to relevant Australian and industry standards using a combination of qualified China Confidential engineers, in-house pre- shipment testing and NATA-rated laboratories (officially recognised by Australia’s National Association of Testing Authorities). Each order is randomly sampled pre-shipment, and tested on-site by our own engineer on correctly calibrated testing equipment. A full report is submitted to our client for their approval before shipment.

Testimonials ACES ‘ Australian Cables & Electrical Supplies engaged China Confidential eighteen months ago for the sourcing of electrical products from Asia. The China Confidential team quickly grasped our products' technical requirements and industry jargon to enable them to provide us with a superior service in supplier identification and negotiations. We have completed multiple trips to Asia with the China Confidential team and find their knowledge of Asian business and customs to be of huge benefit. They are also always easily contactable and provide us with a weekly formal report on the progress of their work for us. China Confidential has been a strategic move for our business in the procurement of our products from Asia’. Stephen Allan, Director, Australian Cable & Electrical Supplies SHADE AUSTRALIA ‘ We first contacted China Confidential through their website. We received a prompt follow up which lead to a meeting where we gave a detailed briefing of our requirements. China Confidential did a lot of research on our behalf and came back with a shortlist of factories suitable for our purposes. They organised samples to be sent to us and negotiated competitive pricing. We subsequently selected a factory with whom have built up an ongoing business relationship. China Confidential has taken both the risk and a large amount of the stress out of dealing with China. Their professionalism is of the highest order and I would recommend their service to anyone seeking to do business in China’. Andy McLeod, Managing Director, Shade Australia RADIAL FLUX LABORATORIES ‘ We engaged China Confidential to assist us in the search for organizations in China to license and manufacture our technology. Both on the ground in China and back in Australia the skills and talents of Jeremy, Jack, Sophie and the team ensured that the entire search and negotiations went off without a hitch. With the assistance of China Confidential we have signed a major licensee and with assurance of the ongoing support from Jeremy and his team I feel comfortable that we can navigate the risks and realize the significant opportunities offered by the Chinese market’. Wade Lillington, Director, Radial Flux Laboratories

Contact Please contact Paul Royds at China Confidential to discuss your requirements or arrange a free consultation. Address Level 29, Chifley Tower 2 Chifley Square Sydney NSW 2000 Australia T: 61-2-9375-2450 | F: 61-2-9375-2451 [email_address] www.chinaconfidential.com.au

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