【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

Nippon Express NEC Logistics Hong Kong LimitedCompany profile

Mar 2020Nippon Express NEC Logistics Hong Kong Limited

2© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

NECLHK Company Overview

Nippon Express NEC Logistics Hong Kong Limited

■ Company name Nippon Express NEC Logistics Hong Kong Limited （Abbr. NECLHK)

■ Address SUITE 2002, EXCHANGE TOWER, 33 WANG CHIU ROAD, KOWLOON BAY, KOWLOON, HONG KONG

■ Representative（President） Kazuhiro Shiino

■ Foundation 5th November, 1997 （Become subsidiary of NECL main branch in 1994）

■ Capital HKD 10,000 Thousands （100% Nippon Express NEC Logistics Hong Kong Limited）

■ Sales Billing HKD 220,032 Thousands （Actual result in 2018）

■ Business Category・Import & Export agency business・Air cargo agency business ・Ocean cargo agency business・Warehouse operation management business ・Transportation management business

■ Employee 220 staff (Including 4 Japanese as of end / March 2020)

■ Warehouse Area 283,710 sqf / 26,358sqm (As of end / March, 2019)

■Warehouse Location Tsuen Wan Warehouse 1-5/F, 7-9/F 100 Texaco Rd, Tsuen Wan

3© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

NECLHK Company Overview (Branch location)Nippon Express NEC Logistics Global network (As of Jan. 31, 2020)

Country： 46Cities ： 302

Branch location: 705 Oversea staff： 22,107

Additional Nippon Global network as follow: (As of Mar. 31, 2019)

Oversea 39 locationOversea company:9

Branch office:30

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NECLHK Company Overview （Vision）

Provide Solution

Supply>Produce>Selling: One stop Supply chain management

KNOW-HOW

We are a Global logistics company who provide the Profession Serivces for High-End E-goods customers.

SCM Production reformLogistics reform

Develop Efficiency System

Logistics plan

Carry out accurate Logistics Plan under tough condition

Provide the most suitable service and system

【VALUE】Focus problem

On Shipper view point

Reduce cost Reduceinventory

Shorten Lead time

Quality Up

Reduce workload

Customer’sProblem

Same view point As Shipper

NECL established as in-house forwarder of NEC Group in first place

Freight, Storage,Packing material..etc

Material inventoryProduct inventory

Delivery Storage, Sorting

KPI Data Analysis

TransportationMode

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NECLHK Company Overview （Service concept）

Is the best logistics one stop service provider

Reduce Workload

Cost downQualityup

OptimizeLead time

Quality Cost Delivery

CustomerHUB WHSupplier LoadingPort Departure Arrival Unloading port

Purchasing Logistics

Distributing LogisticsCustomer’s global supply chain

Forwarding service Warehouse serviceDomestic logistics Value add Service

VisibilityIT ServiceTrade representativeLLP Service

NECL service scopeSingle Window

Achieve customer’s goal

Nippon Express NEC Logistics Hong Kong Limited

※1 Lead Logistics Provider: Provide one stop service for all of logistics data, inventory for your supply chain.

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International forwarding service introductionExport CFS Facility outlineThe only Japanese Forwarder who have own Export facility in Airport area.

☑ULD build up by own staff☑Deliver to Airline by Dolly☑Shorten all unnecessary waiting time☑Minimize the re-work times☑Shorten all lead time

ReliableHighQuality

High Speed

ULD build up qualityMonthly average build up 3000 piece of ULDs

ULD : Unit Load Device

CFS : Container Freight Station

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Data Source :

As part of Nippon Express Group, NECL also provide the top class forwarding service.

Nippon Express is the No.4 Global 3PL Provider in the world (2018 record)

Largest 3PLs Ranked by 2018 Logistics Gross Revenue/Turnover

Ranking Third-Party Logistics Provider (3PL) Gross Revenue(US$ Millions)

1 DHL Supply Chain & Global Forwarding 28,1202 Kuehne + Nagel 25,3203 DB Schenker 19,968

4 Nippon Express 18,781

5 C.H. Robinson 16,6316 DSV 12,4117 XPO Logistics 10,8508 Sinotrans 10,5499 UPS Supply Chain Solutions 9,814

10 J.B. Hunt (JBI, DCS & ICS) 8,21411 Expeditors 8,13812 DACHSER 7,60213 CEVA Logistics 7,35614 GEODIS 6,64515 Hitachi Transport System 6,28316 Panalpina 6,15622 Kintetsu World Express 5,31023 Kerry Logistics 4,87524 Yusen Logistics/NYK Logistics 4,715

International forwarding service introduction (Ranking)

8© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

International Freight service（Concept of 4PL service)

provide the 4PL point of view to support the customer needed.

NECL’s 4PL network provide the best delivery method with Single windows & One stop services

Handle urgent shipment

Plan for route

Best method

Seek for forwarder

Service evaluation

CUSTOMER

NECL 4th Partner (IMAGE)

Japanese Forwarder Ｂ

Japanese Courier C

American Forwarder D

European Forwarder E

Chinese Broker F

Hong Kong Broker G

South East Asian Broker H

Chinese Courier Ietc.

Nippon Express NEC Logistics Hong Kong Limited

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Warehouse Location

Customer Space

ＮＥＣ Group 13,500sqf

Watch Maker 35,500sqf

Semi-Con Maker A 27,500sqf

Semi-Con Maker B 25,000sqf

E-Goods Maker A 19,500sqf

Distributor 15,000sqf

Non-resident inventory customer 45 above

NECL Warehouse location

Certificate

ISO 9001

Total: 283,710 Sqf

TAPA MEMBER

TAPA Class AISO 14001

NECL Warehouse major customer

100% Temp Humidity control

NECL HKG HQ

Tsuen wan WH

NECL HKGTsuen wan WH

G/1/2/3/4/5/7/8/9F283,710sqf

NECL HKGKLB HQ

Airport

CY

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Introduction of Warehouse service

**Basic service**Temperature & Humidity control/ ESD controlSecurity control / Barcode control Free location managementLabeling, Serial / LOT Capture service

**Value added service**1. IC sorting, dividing service2. Built To Order/Custom To Order service3. Software re-write (mobile phone)4. Handle of Aging cargo5. Kitting

LoadingPort

NECL HKG Warehouse(The logistics locate close to Airport / Seaport)

CustomerDelivery

ShipOut

Delivery

Forwarding

Domestic

IC sorting, dividing Built To Order Software re-write

Forwarding

Domestic Delivery

Base on various customer demand to tailor made warehouse environment

Re-work/ kitting LOT Capture

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Warehouse condition and environment

Packing line

Rack storage

ESD work desk

Dividing work

ESD Machine maintenance ESD function checklist Perform 5S/3F standard by Staffs Duty Roster

Management and maintain for condition

Storage / shipping area condition

Attention Notice / Poster TAPA standard CCTV

Pallet storage Morning briefing

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Aim for improve and achieve higher quality of service

NECLHK set up for QAG specially to manage: Business set up, SOP setup, Education & internal audit.

Prepare for SOPBusiness set up

QAG will design the operation base on customer requirements & NECL internal facility and tailor made the best environment for the project.

<QAG meeting> ＜SOP＞For standardize the operation procedures, NECL will design the SOP and keep printed SOP copy at the easy access location in warehouse.

Internal audit

Regular audit at site will be implement by 3 department (CS, Sales, QAG). Inspection will be base on 5S point of view. Improvement will be donebase on audit result.

＜Site audit＞Education

Operation staff will be educated for the SOP and knowledge, QAG have Management systemfor each staff Skill inventory.

＜Training＞

Nippon Express NEC Logistics Hong Kong Limited

Introduction of Warehouse Service (QAG function & Service)

*5S: 整理（SEIRI）、整頓（SEITON）、清掃（SEISO）、清潔（SEIKETSU）、素養（SHITSUKE）

13© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

Introduction of Warehouse Service

Required Partner

Well experienced and Know-how to perform our service

High Quality Warehouse IT solution Value Added Service Proposal/Produce Skill

Provide Low-Cost Service

Well experienced know how grew up in Electrical goods logistics field

Lots of actual achievement and EDI linkage experience

Experience of different value added service and serviceto customers in different countries

We have a SCM improvement skill & vision as a in-house forwarder of manufacturer

We have a own procurement strategic & competitive cargo volume

High quality warehouse

IT solution

Value added service

Proposal/Produce Skill

Low cost

Customer

14© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

Warehouse building outline (specialize for E-Goods)

GF

1F

4F

5F

2F

Truck Dock

3F

6F

7F

8F

9F

2021 Oct planning for expansion

32,152 sqf

32,152 sqf

32,152 sqf

32,152 sqf

32,152 sqf

32,152 sqf

29,523 sqf

30,376 sqf

30,899sqf

32,152 sqf

Connecter company YAElectronics Distributer NENEPT

Sensor company OWatch company C / E-commerce.

Electronics Manufacturer T, EConnecter company JNEC HK, NVTS

Electronics Distributer RElectronics Distributer O

Electronics Distributer H Connecter company H

Electronics Distributer SN,M ,N

Electronics Distributer FElectronics Distributer ST

Electronics Distributer H

Watch company C

aa) Standard Facility1. Air-Con2. Dust prevention floor coating3. Additional illumination4. TAPA Class A Security5. ISO 9001/14001

bb) Optional Facility1. Clean Bench2. ESD control Area3. High value controlled room4. CTO/Kitting experience

Total Space:283,710sqf(2020/Feb current)

315,862 sqf (After whole block rented)

15© Nippon Express NEC Logistics Hong Kong Limited. 2020【Nippon Express NEC Logistics Hong Kong Limited, Confidential】

Warehouse Floor layout sample

SANSHIN

991.9 sq m

Water cooling

6.5 sq m

Up

Up

3rd floor

Up

1100mm 8550mm 1100mm 5450mm 800mm 5900mm 1100mm 5500mm 800mm 5500mm 1100mm 5850mm 750mm 5873mm 1100mm 5620mm 800mm 5837mm 1100mm 5519mm 790mm 5840mm 1100mm 7950mm 1100mm

802m

m52

62m

m80

0mm

800m

m80

0mm

800m

m80

0mm

8134mm

5950

mm

5140

mm

6095

mm

3270

mm

8001

mm

800m

m

2971

7mm

1000mm

1000mm

1000mm

1000mm

1000mm

1000mm

Toilet

24.5 sq m

Toilet

21.0 sq m

Rest room

21.5 sq m

Store Room

2.9 sq m

Meeting room

30.9 sq m

Room

7.0 sq m

Water cooling

7.4 sq m

Water cooling

4.3 sq m

Water cooling

5.9 sq m

Water cooling

5.6 sq m

7

89

DATE

01/12/2011REVISED

09/02/2017

SCALE

1: 200

TITLE

Nippon Express NEC logistics Hong Kong Ltd.

Tsuen Wan Warehouse 3/FPAGE

1 OF 4

DRAWN BY

MORRIS LFILENAME

DRAWING1

DESCRIPTION

Building Area:

32152 sq f = 2987 sq m

DESCRIPTION

Interior Area:

29480 sq f = 2739 sq m

1800mm

3000mm

2000mm

1 17

1 17

1 151800mm

1800mm

1800mm

1 13

1800mm

1700mm

2000mm

Receiveing

83.2 sq m

2000mm

R

1250mm 1250mm

Shipping

61.5 sq m

R

R

R

R

EPA

22.5 sq m

1360mm

1200mm

1800mm

1

D

C

B

A

12051m

m

1 SANSHIN TW

63.4 sq m

17

15

1

SANSHIN TYO

117.8 sq m900mm900mm 900mm

1

8

1

8

1500mm1

8

1500mm1

8

1

8

1500mm1

8

1

8

1500mm1

8

1

8

1500mm

Locker

9.2 sq m

1240mm

Receiving

82.9 sq m

Shipping

127.3 sq m

11

Tokin Doc

86.2 sq m1

1

500

mm

1

13000m

m

1

500

mm

1

500

mm

1

500

mm

1

500

mm

1

TOKIN 6100

155.7 sq m

TOKIN TW

130.1 sq m

MAX 20 PLT

EMD

57.2 sq m

Office

65.1 sq m

passage

79.8 sq m

NT sales

155.4 sq mEMD

40.3 sq m

Packing material

26.0 sq m

FLOOR LAYOUT SAMPLE

Nippon Express NEC Logistics Hong Kong Limited