SHANDONG XIANGGUANG GROUP CO LTD Company Overview e

SHANDONG XIANGGUANG GROUP CO. , LTD • • • Company Overview e. BL History e. BL Work Flow e. BL Benefits Summary

SHANDONG XIANGGUANG GROUP CO. , LTD Company Overview

SHANDONG XIANGGUANG GROUP CO. , LTD Company Overview Established in 2007, Shandong Xiangguan Group is a modern, largescale nonferrous metals corporation, specializing in areas including int’l mining development, copper refining, copper processing, rare metals processing, and copper recycling. Our refining facilities are state-of-the-art, showing our dedication to safety, environmental protection, and energy saving.

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL History • Trade relies on the exchange of documents to enable settlement • Traditionally, such processes were paper-based. • With the development of e. BLs (electronic bills of lading), companies are gradually moving away from paper-based processes to fully digital solutions

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL History • In 2002, the ICC issued e. UCP 1. 0, a supplement to the already existing “Uniform Customs and Practice for Documentary Credits” (UCP 500) • Upon release of UCP 600, its own supplement was named e. UCP 1. 1. • It offered guidance regarding the use of digital documents in LC based transactions • e. Presentation offers corporates and banks a platform for carrying out the management of such paperless document transactions. UCP 600 e. UCP Paper documents Electronic Presentation

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL History Shandong Xiangguang Group actively participated in development ofdigitized int’l settlement. During April 2014, in cooperation with Bolero, ABC Liaocheng, ANZ, BHP, & Oldendorff, we implemented our first successful e. Presentation, achieving full digitalization in our LC business. This was undoubtedly a breakthrough for China in regards to the digitization of trade finance.

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL Workflow 1. Back-to-Back LC Flow With bank support, the baby LC applicant issues an LC in accordance to e. UCP, which offers concrete guidance for the implementation of e. Presentation.

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL Workflow Settlement Baby LC Beneficiary e. Pres w/ e. BL Advising Bank Baby LC Issuing Bank e. Pres w/ e. BL Carrier e. BL Release Cargo Master LC Applicant e. BL Acceptance Master LC Issuing Bank e. Pres docs Baby LC Applicant

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL Workflow 2. Baby LC Workflow： • Once the LC is received from the advising bank, the beneficiary will transmit the e. Docs to the baby LC issuing bank through Bolero’s e. Presentation platform; • Once the LC issuing bank receives all submitted electronic documents, it will review the documents and provide the results of the review in a timely manner; • After the beneficiary has approved settlement and the issuing bank has carried out said settlement, the e. Presentation will be sent on the master LC issuing bank, which will be reflected in the record of holdership on the Bolero system’s e. BL title registry.

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL Workflow 3. Master LC Flow： • The master LC issuing bank receives the master LC, and then provides the results of its own document review in a timely manner; • After the master LC applicant accepts, the master LC advising bank will release all e. Documents to the applicant, including the e. BL; • The master LC applicant will present the e. BL to the carrier, who will then in turn release goods to the applicant.

SHANDONG XIANGGUANG GROUP CO. , LTD e. BL Benefits • Simplifies trade settlement flows, increasing efficiencies in the use of capital. • Shortens time needed for document transferal • Simplifies & standardizes document management • Precludes loss of documents common in traditional trade transactions • Precludes any inclusion of fraudulent documents • Cuts costs

SHANDONG XIANGGUANG GROUP CO. , LTD Summary 　　 An e. BL is a document format allowing for a higher degree of safety, standardization, and efficiency. For large, bulk traders, it successfully replaces traditional paper-based documents, and blazes a path for full digitalization in int’l trade settlement. Standardized document digitalization will become the prevailing trend in int’l trade settlement. e. Presentation will also become the vehicle for carrying this trend out.

SHANDONG XIANGGUANG GROUP CO. , LTD Thank You！