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On Time Logistics Holdings Limited Announces Details of Proposed Listing on the Main Board of the Stock Exchange

June 29, 2014

Hong Kong, June 29, 2014 - (ACN Newswire) - On Time Logistics Holdings Limited("On Time" or the "Group"), an international freight forwarding and logistics service provider, announced details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). On Time intends to issue a total of 100,000,000 shares, of which 90%, or 90,000,000 shares, are for the International Offering, subject to adjustment and Over-allotment Option. The remaining 10% of the Offer Shares, or 10,000,000 Shares, are for the Hong Kong Public Offer. After deducting underwriting fees and estimated expenses in connection with the Global Offering and assuming an Offer Price of HK$1.175 per share (being the mid-point of the indicative Offer Price range of HK$1.05 to HK$1.30) and that the Over-allotment Option is not exercised, net proceeds from the Global Offering are estimated to be approximately HK$91.4 million. The Hong Kong Public Offer will begin on 30 June 2014 (Monday) and end at noon on 4 July 2014 (Friday). The final Offer Price and allotment results are expected to be announced on or around 10 July 2014 (Friday). Trading of On Time's shares is expected to commence on the Main Board of the Stock Exchange on 11 July 2014 (Friday) under the stock code 6123. The shares will be traded in board lots of 2,000 shares. RHB OSK Capital Hong Kong Limited is the Sole Sponsor and RHB OSK Securities Hong Kong Limited is the Sole Global Coordinator, while RHB OSK Securities Hong Kong Limited and Convoy Investment Services Limited are the Joint Bookrunners and Joint Lead Managers. Corporate Highlights On Time is an international freight forwarding and logistics service provider. Founded and headquartered in Hong Kong since 1995, On Time has an extensive global network with 54 offices in 16 countries. As an IT-driven logistics provider and with a broad customer base comprising the retail sector, the Group is well positioned to explore business opportunities in e-commerce. Established market position with an extensive network As at the Latest Practicable Date, the Group had approximately 1,000 employees in 54 offices in Asia, the Netherlands and North America, of which 44 offices are located in 13 Asian countries comprising Hong Kong, the PRC, Cambodia, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, the UAE and Vietnam. On Time is well recognised in the logistics industries on an international level, having received numerous awards from international organisations and major airlines since 2000, including various awards granted by World Cargo Alliance, and "Top Agent Award" by Cathay Pacific Cargo/Dragonair every year since 2006. Comprehensive service and growing ocean freight segment On Time's core businesses are air and ocean freight forwarding, complimented by general sales agency business and other services including warehousing, distribution, customs clearance, contract and ancillary logistics services. The Group has captured the growing opportunities presented to the ocean freight segment which contributed to approximately 19.2%, 23.0% and 28.4% of its total revenue for the years ended 31 December 2011, 2012 and 2013 respectively. Broad customer base On Time has a broad customer base consisting of approximately 29,000 customers for the year ended 31 December 2013. On Time's customers are across a diverse range of industries, in particular the Group has know-how in serving the specific logistics needs of the garments, footwear and electronics industries. Such customer base reduces its exposure to downturn in any particular industry and provides cross-selling opportunities. Advanced information technology (IT) and systems Backed by advanced IT and systems, On Time has developed its own freight operations system which embodies an electronic data interchange, facilitating convenient and direct data exchange among its suppliers of air cargo space and customers. During the Track Record Period, the Group's freight operations system has handled over 570,000 import and export shipments for its offices without failure that caused material disruptions to operations. Future Strategies On Time aims to strengthen presence in Asia and Middle East and expand North America office network. For North America in particular, the Group will expand geographical coverage and enhance network synergies through acquisition. For Asia, the Group intends to hire more business development and other personnel, offer more services and target the garment, footwear and the electronics industries to capture the expected growth in logistics demand. The Group also plans to offer more comprehensive contract logistics services through its offices in Shanghai, Shenzhen and Los Angeles. The Group will continue to invest in IT systems to integrate all its offices, and to keep up with the expanding IT requirements of the Group, suppliers, customers and other logistics industry players. Furthermore, leveraging its existing customer base, warehousing and distribution capabilities and IT infrastructure, On Time is striving to explore e-commerce opportunities including (i) e-commerce cross-selling of goods among its existing direct customers, (ii) e-commerce sales opportunities for its existing direct customers to gain new markets and new business and consumer customers; and (iii) other e-commerce sales opportunities which may complement its air freight segment and contract logistics segment. The Group intends to carry out its e-commerce operations from the second half of 2014. To spearhead and manage its e-commerce operations, the Group will have in place a dedicated team of members, who are experienced in e-commerce marketing, technical know-how and identifying products with good e-commerce potential. Use of Proceeds (Approximately) -- Expanding office network in Asia and North America - 34.6% or HK 31.6 million -- Expanding existing contract logistics facilities in the United States and the PRC - 2.9% or HK 2.7 million - Building and upgrading hardware and software for IT system - 6.6 % or HK 6.0 million -- Recruiting additional personnel for sales, contract logistics, business development and management teams - 8.4% or HK 7.7 million -- Repayment of a short-term bank loan - 40% or HK 36.6 million -- General working capital and general corporate purposes - 7.5 % or HK 6.8 million Key Financial Data

--------------------------------------------------------------------------- (HK$000) For the Year ended 31 December --------------------------------------------------------------------------- 2011 2012 2013 --------------------------------------------------------------------------- Revenue 2,319,867 2,633,886 3,161,290 --------------------------------------------------------------------------- Gross Profit 326,924 381,938 465,160 --------------------------------------------------------------------------- Gross Margin 14.1% 14.5% 14.7% --------------------------------------------------------------------------- Net Profit 54,146 44,273 54,975 --------------------------------------------------------------------------- Bank and cash balances 137,866 160,054 163,885 ---------------------------------------------------------------------------

About On Time Logistics Holdings Limited Established in 1995 in Hong Kong, On Time is a growing international freight forwarding and logistics service provider. It has a global network with 54 offices in 16 countries across Asia, the Netherlands and North America serving multinational customers with cross-border logistics requirements covering various industries including garments, footwear and electronics. As an IT-driven logistics provider and with a broad customer base comprising the retail sector, the Group is well positioned to explore business opportunities in e-commerce. Source: On Time Logistics Holdings Limited Contact:

Strategic Financial Relations LimitedVicky Lee +852 2864 4834 Chui +852 2864 4853 Tang +852 2114 4951

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Source: ACN Newswire (Japan)

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