Proposal of Operation on

Chinese Furniture / Building Material Procurement Center (Draft)

Project partners: ISMEUK, ACTION

Project management: Chinese Furniture / Building Material Procurement Center Ltd (JV)

Products:
The key element to this project is the marketing capability in the UK /Europe furniture /
building material market, so it is important to find the right products that are marketable in
UK from the suppliers who are capable to follow the market trends and the technology /
productivity.

1、Furniture (products list by ACTION)

2、Sanitory (Confirmed by ISMEUK)

3、building ceramics (Confirmed by ISMEUK)

faucet
4、hardware, (Confirmed by ISMEUK)

Work flow and time line

Stage one: Negotiation of cooperation and feasibility study by the end of July, 2008
1. Negotiation of cooperation by ACTION/ISMEUK and sign of intentional cooperative
agreement in June-July, 2008
2. Feasibility study of the UK Furniture market and position of project in July, 2008

3. Select and rent the site in July 2008

Stage two: JV establishment and pre-spread to suppliers and procuring customers by the end
of October, 2008
1. Sign of cooperative agreement and registration of Chinese Furniture / Building Material
Procurement Center Ltd
2. Suppliers UK visits(ISMEUK) in August-October, 2008
3. UK and Europe marketing in August-October, 2008(ACTION)

Stage three: suppliers recruitment by the end of the year 2008

1. Suppliers recruitment in the domestic of China
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2. Organization and delivery of first batch of products to UK in December, 2008
3. Marketing in the UK

Fourth stage: trial operation first quarter of 2009

1. Systematic spread to UK procuring traders from the fourth quarter of 2009
2. Trial operation and adjustment of the Center

Fifth stage: formal operation of the center from April –December 2009
1. Systematic spread to UK procuring traders
2. Formal operation

Sixth stage: expantion of the operation

1. Fund raising (public listing, private equity, venture capital etc..)
2. Expand to other area in the UK and to other European countries

ISMEUK advantage - the best cooperation with the complementary advantages of China
and UK

Multi-national experience
.
It is a project with high difficulty and risk to set up a trade platform connecting China and
UK. Multi-national trade invitation, capital settlement, and set-up of China representative
office of JV company can be undertaken by the established organizations of ISMEUK.
ISMEUK is also responsible for visa and visit of suppliers, quarantine, check-up and test of
products, so as to reduce the risk of multi-national operation to the minimum.

ISMEUK has set up the leather business in London with wide experience in the operation, and
suppliers management and cooperation.

Meanwhile ISMEUK is preparing to set up “Chinese Building Material Center” and has
finished the feasibility study, gathered in-depth experience on the Multi-national operation
and set up the successful cooperative system including Chinese suppliers, local operation of
UK, logistics and trade.

Relationship with Chinese suppliers

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Suppliers are also the key to get the success. The suppliers in China that can carry out the

international trade directly are those with strength and strong aspiration to develop. Great
many of foreign and domestic projects take aim at them, so the competition is fierce. Of
course, the premise that the supplier can cooperate with us is that the products must conform
to the standard of UK and European market.
There are not quite many of such Chinese suppliers. It needs a mature system, team, and
excellent technique to find the right suppliers in the short time and persuade them to
participate in the cooperation.

Main advantages of ISMEUK are:

1. Good relationship with local governments of Guangdong furniture producing area
(Dongguan, Shunde), furniture association, chamber of commerce, and furniture
suppliers. Good brand image in China
2. Systematic system and team, rich multi-national trade experience in leather and
building materials.
3. According to our experience, Chinese suppliers believe in their own eyes generally, so the visit
to the UK before investing abroad is necessary, but the business visa to the UK is difficult to the
Chinese.
ISMEUK has a long-term good relationship with the British consulate. The
customers invited by ISMEUK can apply for the visa (such as in Guangzhou)
through the green pass. “International Exchange Center” set up specially by
ISMEUK can assist the whole course of the visa.

Trade service system:

ISMEUK has established trade service center, international exchange center, finance service
center, trading center, project operation center etc… ISMEUK has its representative office
registered in China, has its own branch company as well. With such structure, ISMEUK has
its complete system to serve the trade, logistics, visa, business transactions.

Multinational monetary function

ISMEUK has its special financial service center to help Chinese enterprises list on London
Stock Exchange. Since 2006 when the representative office set up, ISMEUK has assisted
many companies to list on AIM successfully. It is still carrying on many operations at present
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such as XCG (the subsidiary of the biggest construction machinery company XCMG)

If the Center can set up the structure of financing in the UK before the operation of the
project, it is not only beneficial on the in-and-out of capital (China is strict on the foreign
exchange and foreign capital), but also on the capital operation of the Center’s bigger and
stronger.

The experience of ISMEUK on the structure of list and money raise will help the project to
have a high position, attract the capital to become bigger and stronger and let all operations
conform to the laws of China and UK.

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