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CITAAEAC Shanghai AEAC Industrial Product Service&Consulting Co., Ltd.

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Presentation on theme: "CITAAEAC Shanghai AEAC Industrial Product Service&Consulting Co., Ltd."— Presentation transcript:

1 CITAAEAC Shanghai AEAC Industrial Product Service&Consulting Co., Ltd.

2 CITAAEAC What is AEAC Established August 15 th, 2005 Established August 15 th, 2005 Address Shanghai, China Address Shanghai, China Capital RMB 1 million Capital RMB 1 million Staff 7 people (until Sept. 30,2005) Staff 7 people (until Sept. 30,2005) Ownership Private Ownership Private

3 CITAAEAC Intermediary and Service Company lead by CITA Intermediary and Service Company lead by CITA Available services from the company Available services from the company Facilitating purchasing from both domestic and international companies Facilitating purchasing from both domestic and international companies Quality control of industrial products Quality control of industrial products Logistics services Logistics services Consulting on exporting and importing industrial products Consulting on exporting and importing industrial products Consulting on investment in China Consulting on investment in China Here Is What We Can Do For You

4 CITAAEAC Companys Organization CITA AEAC Expert Committee Suppliers Committee

5 CITAAEAC Companys Organization, Continued CITA CITA Full Name: Powered Industrial Truck Institution of Chinese Construction Machinery Association Full Name: Powered Industrial Truck Institution of Chinese Construction Machinery Association Oversees the industry Oversees the industry Membership includes all domestic fork lift truck manufacturers Membership includes all domestic fork lift truck manufacturers Membership also includes most of the parts suppliers, testing institutes, quality control institutes, and design institutes Membership also includes most of the parts suppliers, testing institutes, quality control institutes, and design institutes Facilitating between domestic and oversees companies Facilitating between domestic and oversees companies

6 CITAAEAC Experts Committee Experts Committee Experienced specialists Experienced specialists Very familiar with fork lift truck market and suppliers in China Very familiar with fork lift truck market and suppliers in China Deep understanding of investment regulations in China Deep understanding of investment regulations in China Li Zhongming 10 years of professional experience in the field of exporting/importing forklift truck parts Li Zhongming 10 years of professional experience in the field of exporting/importing forklift truck parts Lai Zhengzhong 20 years of professional experience in the field of outsourcing and financial matters Lai Zhengzhong 20 years of professional experience in the field of outsourcing and financial matters Zhang Yong 10 years of experience as a purchasing manager Zhang Yong 10 years of experience as a purchasing manager Luo Jiandong 20 years of professional experience in the field of parts and machinery industry Luo Jiandong 20 years of professional experience in the field of parts and machinery industry Ji Yawei 20 years of professional experience in the field of forklift trucks and parts Ji Yawei 20 years of professional experience in the field of forklift trucks and parts Companys Organization, Continued

7 CITAAEAC Suppliers Committee Suppliers Committee Established by CITA Established by CITA Consists of major parts suppliers for industrial trucks, about 200 members Consists of major parts suppliers for industrial trucks, about 200 members Able to provide detailed information on parts suppliers in China Able to provide detailed information on parts suppliers in China Companys Organization, Continued

8 CITAAEAC AEAC is lead by CITA AEAC is lead by CITA AEAC takes action based on Experts Committee recommendations AEAC takes action based on Experts Committee recommendations AEAC gets support and help from Suppliers Committee AEAC gets support and help from Suppliers Committee AEAC, in turn, gives assistance to members of the Suppliers Committee to further their business needs AEAC, in turn, gives assistance to members of the Suppliers Committee to further their business needs

9 CITAAEAC Companys Organization, Continued President Xin Yuxiong GM Qian Xiaogang Vice GM Shen Peng Honorable President: Su Enyi Purchasing Dept. Technology and QC Dept OfficeOverseas Rep.

10 CITAAEAC Honorable President Su Enyi Honorable President Su Enyi General Secretary of CITA General Secretary of CITA Member of safety technical committee for special equipment, Member of safety technical committee for special equipment, which directly under the General Administration of Quality Supervision, Inspection and Quarantine of PRC which directly under the General Administration of Quality Supervision, Inspection and Quarantine of PRC Involved in the industry for many years Involved in the industry for many years President Xin Yuxiong President Xin Yuxiong Expert in Chinese engineering machinery Expert in Chinese engineering machinery Held the following positions Held the following positions Head of the Forklift Division of Beijing Handling Machinery Institute Head of the Forklift Division of Beijing Handling Machinery Institute The first GM of Cascade China The first GM of Cascade China Director of Xiamen Forklift Truck Factory Director of Xiamen Forklift Truck Factory The first GM of Linde - Xiamen The first GM of Linde - Xiamen Companys Organization, Continued

11 CITAAEAC GM Qian Xiaogang GM Qian Xiaogang 5 years of experience in purchasing forklift truck parts 5 years of experience in purchasing forklift truck parts 8 years of experience as GM 8 years of experience as GM EMBA degree EMBA degree Vice GM Shen Peng Vice GM Shen Peng 12 years of experience in sales of forklift trucks 12 years of experience in sales of forklift trucks 4 years of experience as GM 4 years of experience as GM Companys Organization, Continued

12 CITAAEAC Companys Organization, Continued Purchasing Dept 1-2 people Purchasing Dept 1-2 people responsible for gathering & analyzing market data responsible for gathering & analyzing market data responsible for selecting suppliers cost benefit analysis responsible for selecting suppliers cost benefit analysis Technology and QC Dept 2 people Technology and QC Dept 2 people responsible for cooperating with Purchasing Dept to oversee various technical aspects; also responsible for cooperating with foreign companies to ensure that suppliers can provide the high quality parts required by foreign companies responsible for cooperating with Purchasing Dept to oversee various technical aspects; also responsible for cooperating with foreign companies to ensure that suppliers can provide the high quality parts required by foreign companies Office 1-2 people Office 1-2 people responsible for setting up computer networks logistics and hosting visiting parties responsible for setting up computer networks logistics and hosting visiting parties Overseas 1 person Overseas 1 person responsible for connecting domestic and foreign companies responsible for connecting domestic and foreign companies

13 CITAAEAC Rapid growth of the Chinese markets Sales of powered industrial trucks reached 59,676 units in 2004 which is 31.2% growth sales of non-powered industrial trucks reached 1,353,210 units which is 43.78% growth Rapid growth of the Chinese markets Sales of powered industrial trucks reached 59,676 units in 2004 which is 31.2% growth sales of non-powered industrial trucks reached 1,353,210 units which is 43.78% growth All major overseas industrial truck manufacturers already have their own factories in China. All major overseas industrial truck manufacturers already have their own factories in China. Projected growth for the Chinese market in 2005 is 10% Projected growth for the Chinese market in 2005 is 10% Quality of parts supplied by domestic companies has steadily improved. There are already over 200 suppliers in China. (see attachment 1) Quality of parts supplied by domestic companies has steadily improved. There are already over 200 suppliers in China. (see attachment 1) Current State of the Chinese Markets

14 CITAAEAC GDP growth rate is between 8 and 10 % GDP growth rate is between 8 and 10 % Lots of research and development centers have been established in China Lots of research and development centers have been established in China Every major city has at least 1 university Every major city has at least 1 university Private companies now play bigger role than state owned companies in the Chinese economy Private companies now play bigger role than state owned companies in the Chinese economy Chinese economy is integrating with the world economy Chinese economy is integrating with the world economy Situation in China

15 CITAAEAC More transparency is still needed in the government More transparency is still needed in the government Better enforcement of laws Better enforcement of laws Better protection of intellectual property Better protection of intellectual property There is a gap in development between eastern and western parts of China There is a gap in development between eastern and western parts of China Potential For Further Development of Markets

16 CITAAEAC Different Culture Different Culture Language Barrier Language Barrier Connections Connections Improving management techniques Improving management techniques Situation in China - Culture

17 CITAAEAC Not all suppliers have CAD software Not all suppliers have CAD software Negotiations are essential to get a good price Negotiations are essential to get a good price Some suppliers have very limited knowledge about foreign standards and technical requirements Some suppliers have very limited knowledge about foreign standards and technical requirements Sometimes quality of parts is a problem Sometimes quality of parts is a problem They are often more interested in big orders They are often more interested in big orders Before using any supplier, it is essential to do a thorough background check Before using any supplier, it is essential to do a thorough background check Situation in China - Suppliers

18 CITAAEAC Sometimes Chinese manufacturers use local standards that may differ between regions in China Sometimes Chinese manufacturers use local standards that may differ between regions in China Not all raw materials are available in China Not all raw materials are available in China Travel time considerations Travel time considerations Small orders are often ignored Small orders are often ignored Sources of information are often not trustworthy Sources of information are often not trustworthy Packaging standards Packaging standards Situation in China - Others

19 CITAAEAC Low labor costs Low labor costs Product quality has improved in China Product quality has improved in China Big orders Big orders Products requiring specially design modules with lead times longer than 2 years Products requiring specially design modules with lead times longer than 2 years Transportation and warehouse costs are low in China Transportation and warehouse costs are low in China Products intended for international markets can be attested in China Products intended for international markets can be attested in China Chinese companies can also make moulds Chinese companies can also make moulds Situation in China – Positive Elements

20 CITAAEAC Very familiar with local environment and import/export procedures, and how to protect companys IPR Very familiar with local environment and import/export procedures, and how to protect companys IPR Big supplier network enables rapid access to information Big supplier network enables rapid access to information Excellent system for evaluating suppliers, and the quality and reliability of offered products Excellent system for evaluating suppliers, and the quality and reliability of offered products Facilitating communication between the purchaser and supplier Facilitating communication between the purchaser and supplier Helps the supplier understand the purchasers standards and testing procedures Helps the supplier understand the purchasers standards and testing procedures Benefits both the purchaser and supplier Benefits both the purchaser and supplier Intermediary Intermediary Why Choose AEAC

21 CITAAEAC Intellectual Property Rights in China Trademarks Trademarks Patents Patents Copyrights Copyrights Commercial Secrets Commercial Secrets Others Others (See Attachment 2) (See Attachment 2)

22 CITAAEAC How to Protect Your Rights Applicable Laws (See Attachment 3) Applicable Laws (See Attachment 3) Administrative Protections (See Attachment 4) Administrative Protections (See Attachment 4) Court Proceedings (See Attachment 5) Court Proceedings (See Attachment 5) Protecting Yourself (See Attachment 6) Protecting Yourself (See Attachment 6)

23 CITAAEAC Protection Methods in China Administrative Protections Administrative Protections Order to refrain from violation Order to refrain from violation Apology Apology Seizure of income obtained through violation Seizure of income obtained through violation Seizure and destruction of violating products and equipment use for manufacture of such products Seizure and destruction of violating products and equipment use for manufacture of such products Imposition of fine Imposition of fine

24 CITAAEAC Protection Methods in China Court proceedings Court proceedings Court proceedings, in particular if compensation for damages shall be claimed Court proceedings, in particular if compensation for damages shall be claimed Protection by criminal law Protection by criminal law Protection through customs measures Protection through customs measures

25 CITAAEAC Protection Methods in China Protecting Yourself Protecting Yourself Register your rights Register your rights Establish the department dedicated to IPR Establish the department dedicated to IPR Establish the rules Establish the rules Frequently investigate Frequently investigate Careful drafting of contracts (e.g. license contracts) Careful drafting of contracts (e.g. license contracts)

26 CITAAEAC Protection Methods in China In case of violation: In case of violation: Secure evidence Secure evidence Examine possible measures Examine possible measures Decide on administrative/court protection Decide on administrative/court protection Evaluate costs of protection Evaluate costs of protection

27 CITAAEAC (Flowchart) See attachment 7 (Flowchart) See attachment 7 AEAC Structure

28 CITAAEAC Supplier Survey Form (See Attachment 8) Supplier Survey Form (See Attachment 8) Supplier Technology Inspection Form (See Attachment 9) Supplier Technology Inspection Form (See Attachment 9) Supplier Quality Control Inspection Form (See Attachment 10) Supplier Quality Control Inspection Form (See Attachment 10) Supplier Evaluation Form (See Attachment 11) Supplier Evaluation Form (See Attachment 11) Quote Analysis Form Quote Analysis Form Major Parts List (See Attachment 12) Major Parts List (See Attachment 12) AEAC Evaluation of Suppliers

29 CITAAEAC Blueprints Blueprints BOM BOM Samples Samples Standards (products/packaging) Standards (products/packaging) Testing Standards Testing Standards Annual Order Size Annual Order Size Acceptable parts pricing Acceptable parts pricing Any special requirements Any special requirements Information Required By AEAC from Customers

30 CITAAEAC Current situation of raw materials in China Current situation of raw materials in China Exchange Rate Exchange Rate Standards SAE/JIS/DIN/BS/GB Standards SAE/JIS/DIN/BS/GB Certification for specific products CE/GS/3C Certification for specific products CE/GS/3C Providing various choices in parts materials Providing various choices in parts materials Interpreting/translating Interpreting/translating AEAC Role in Purchasing Process

31 CITAAEAC Membership Fees Membership Fees Associate Members Associate Members Regular Members Regular Members VIP Members VIP Members Service Fees Service Fees General Consulting General Consulting Specific Consulting Specific Consulting Turn-Key Consulting Turn-Key Consulting AEAC Fee Structure

32 CITAAEAC Develop an excellent network of suppliers Develop an excellent network of suppliers Develop a web site Develop a web site Develop a database of standards Develop a database of standards Develop an investment database Develop an investment database AEAC – Future Steps

33 CITAAEAC Thank You Thank You


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