HYT Supply Chain

• COMPANY INTRODUCTION• STRUCTURE OF SERVICES• DISTRICT DELIVERY & PICKUP• LONG DISTANCE TRANSPORTATION• LOGISTICS OUTSOURCING• VALUE ADDED SERVICES• REASONS OF LOGISTICS OUTSOURCING

– CASE – HAIER– CASE - RICOH– CASE – FLEXTRONIC– CASE – FOXCONN– CASE - TAIYO

• OUR OPERATION STRUCTURE• OUR BUSINESS CLIENTS / PARTNERS

Contents

The Company

• Established since 2005• Reformed to public company in 2015• Capital ： 24.3 millions RMB• Headcount ： 850• Resources ：

– Total warehouse space 150,000 ㎡ , including 4,000 ㎡ with temperature/humidity control;

– Over 40 trucks for district and 45 trucks for long distance transportation;– District headquarters in Shenzhen, Suzhou, Qingdao and Chongqing control the

Southern, Eastern, Northern and Western province respectively.

• Major Businesses : Warehousing, JIT Distribution, VMI Management, Transportation, Import/Export, Trading, Consultancy Services.

• Our Positioning Strategy : Manufacturing Logistics

Kitting for Raw Materials

Domestics transportations (land,river,air)

Integrated Logistics Solutions

Warehousing

International Forwarding

Import Export Agency

In-factory Operations

Core Operations

• Intra-city delivery services.

• Various sophisticated solutions, like Milk Run, receiving representative.

• Includes bonded and general trucks.

District Delivery / Pickup

Long Distance Transportations• Routine Routes: Cover three

major industrial districts, focus on industrial commodities.

• Non Routine Routes: Covering whole country with FTL services.

• LTL services to all over the entire country.

Shanghai Suzhou

Chongqing Chengdu

Shenzhen Dongguan

• Customers can concentrate on their own competence.

• Reduce Total Logistics Expenses

• Improve efficiency and effectiveness of Logistics operations

• Reduce investment• Share business risk and

improve scalability

Logistics Outsourcing

Value Added Services

1. Modular Assembly – Based on customer instructions, organize and manage assembly works and deploy appropriate QC control points;

2. Flexible Processing – Due to dynamic situation in the market, HYT provide flexible processing services for the customers’ ad-hoc requirements.

3. QC & Rework – With mutually agreed inspection instruction and AQL, HYT deploy systematic QC activities along the entire supply chain.

4. Order-based Packaging – In order to reduce inventory, customers’ products can be warehoused in neutral packing. Only after order been fixed, HYT provide packaging services for dispatch.

Highlights

In-factory operations

HYT Logistics Center

Raw Materials

Finished Products

Vendor

• Average warehouse space 80,000m2 (including raw materials and finished products

• Manage the internal logistics and warehouse inside HAIER factories in Qingdao, Hefei, Chongqing and Foshan, with total manpower 360.

Haier Factories

Internal Logistics

Operations

Export

Orange Colored – HYT Operations

CASE - HAIER

Highlights

Aggregation

Raw Materials

Finished Products

Vendor

• Average warehouse space 9,000m2 (raw materials and finished Products).

• Maintain a mechanism of 2 hours raw materials supply (Arrive factory within 2 hours from Pull-Signal received).

• Providing 4 routes of Milk Run (raw materials collection from vendors) daily.

• Handling of recycled packing materials (collection, sorting, & inspection)

Ricoh Factory

InternalLogistics

Export

Orange Colored – HYT OperationsHYT Logistics Center

Vendor Vendor

Milk Run

CASE - RICOH

Recycled Boxes

Highlights

VMI， JIT Kitting

HYT Logistics Center

Convey to Every

Workstations

VMI Stock

Non-VMI Stock

Orange Colored – HYT Operations

Vendor

Vendor

Vendor

• Average warehouse space 8,000m2 (including VMI and non-VMI) • Directly communicating with suppliers for replenishment plans

and arrangements• The WMS provide Internet-based information system• Our job includes conveying raw materials to every workstation

Flextronics Factory

CASE - FLEXTRONICS

[ Shenzhen ]HYT Logistics Center

Raw Materials

Finished Goods

• Average warehouse space 2,000 square meters (including raw materials and finished goods. ）

• Minimize long distance transportation cost.• Provide a platform to control import/export remotely.

[ GuangXi ]NanNing Foxcoon

Vendors

Vendors

Highlights

Depot of Inland Factory

Customers

Customers

Export

Export

CASE - FOXCONN

[ Shenzhen ]HYT Logistics

Taiyo (Suzhou)

Import/ Export

[ Hongkong ]Capable Logistics

[ Shanghai & Suzhou]HYT Logistics[ Chongqing & Chengdu]

HYT Logistics

Taiyo (Zhongshan)

[ Futian FTZ ]Capable Logistics

Import / Export

Northern Provinces

Central Provinces

Operated by Capable & HYT

Operated by Business Partners

CASE - TAIYO

HYT Elements

FUS

ION

LA

YE

R

General & Bonded

WarehouseTrucking Courier

Intern’l & Domestics Forwarding

Import & Export, Trading

Cash & Foreign

Exchange Handling

Processing, Inspection, Packaging

Supply Chain

Information System

IT

• Reduce Total Logistics Expenses.

• Reduce Inventory Holding Cost.• Focus on Core Operations,

Reduce Management Overhead.

• Shorten Purchasing Lead Time.• Rational Stock Distribution

(Quantity, Locations, Status). • Remote Control on Unusual

Operations.

• Reduced Investment on Supporting Resources.

• Share Business Risk with Vendors.

• Reduce the Risk of Useless Stocks.

Customers Values Business Goal

Cost Structures Speedy Response Risk Control

VMI Management Milk Run

Harmonization for Agile Virtual

Enterprise

In-Factory Logistics Virtual Factory Business

Agent

Logistics & E-Logistics

ConsultancySO

LUTI

ON

LAY

ER

OP

ER

ATIO

N

LAY

ER

Aggregated Supply Chain Solution

How we work!

CLIENTS & BUSINESS PARTNERS

www.hyt-scm.com

Thank You!