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Presentation Of Nine

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PRESENTATION OF NINE-ALLIANCE GROUP INTRODUCTION OF NINE ALLIANCE I. II. III. IV. V. VI. Established in 1988 Ownership: Privately owned by shareholders Total staff: 10,000 Total capital over RMB 3.8 billion (more than US$500 million) 2015 sales: RMB 10 billion (US$1.6 billion) Sales volume in 2015 is more than 1/4 of China ‘s export of chicken products to Japan; more than 90% of China’s total export of cooked chicken products to EU. VII. Plant registrations for EU: 3700/03447 (cooked plant), 3700/03235 (slaughtering plant). OUR LOCATION Qingdao Nine Alliance Map of Shandong New plants in Guangdong province and Guangxi Province. Ready in 2014.Initial Qingdao Nine Alliance investment US$483 •100 km to airport million. •120 km to sea port MILESTONE OF NINE ALLIANCE 1988 1992 1995 2004 2006 • Small pullets farm producing fertile eggs for sales to local growers • Expanded into broilers farm for sales of live chickens for local slaughter houses • Built slaughter house for its own broilers • Built further processing plant to produce fully cooked chicken for export market • One of the largest vertically integrated chicken companies in China • Built the most modern cooked chicken factory in China targeting Europe 2012 2016 • New chicken complex in China’s southern province of Guangxi VERTICAL INTEGRATION Parent stock breeder farms – 21 farms (1.2 million male and females breeding groups)  Hatchery – 1 factory (capacity p.a. 160 millions DOC)  Feed mills – 4 factories (capacity p.a. 750,000 tons)  Corporate broiler farms – 83 farms, total 1000 houses (capacity p.a. 130 millions birds)  Slaughter plants – 3 factories (capacity p.a. 150 millions birds or 300,000 tons of broiler meat qualified for Japan and EU markets)  Cook plants – 5 factories (annual capacity p.a. 100,000 tons)  Skewering plants – 3 factories  Packaging factory – 1 factory  Company laboratory center to check drug residues, microbiology of raw material and finished product.  New operations in Guangxi province in southern China (same standard and scale)  VERTICAL INTEGRATION Slaughtering plant Hatchery VERTICAL INTEGRATION Inside view of Broiler farm Standard Broiler farms Feed mill PRODUCT PICTURES Product PRODUCT Pictures PICTURES Product PRODUCT Pictures PICTURES Product PRODUCT Pictures PICTURES Product PRODUCT Pictures PICTURES Product PRODUCT Pictures PICTURES CHANG GUANG NEW FACTORY – FACTORY NO. 7  Completion: March 2012  Site area: 70,000 square meters  Work force: 500  Production shift: 2 shifts a day  Capacity: 30,000 metric tons a year  Most advanced factory in China Capability: o Steamed Cooked Chicken(diced, strips, sliced, whole fillets and inner fillets etc.) o Oven Roasted Chicken(diced, strips, sliced, whole fillets, inner fillets etc.) o Fry-steamed Chicken (skewer, whole fillets, inner fillets pieces, strips, cubes etc.) o Breaded & Battered Chicken(whole fillets, goujons, nuggets, chunks, patties etc.) o Charcoal-grilled Chicken(yakitori etc.) o We could meet customers' all requirements on flavour, specification as well as processing style. WORKSHOP VIEW Low risk area Erschel cutting machine CFS Twin grill Automatic weighing station CFS Double spiral oven Float freeze IQF machine Product after chilled Automatic sieving machine Jumbo’s Finished products X-ray and metal detectors Cold storage warehouse QUALITY ACCREDITIONS QUALITY ACCREDITIONS TRACEABILITY SYSTEM (1) Batch # on the box (2) Cooked plant Finished good loading report (3) Slaughter plant Raw chicken release inspection report (4) Broiler farm (5) Hatchery Live chicken grow out record Day old chick’s release report Traceability report in high risk area Raw chicken quality audit report Medication usage report Day old chicks inspection report Record of coding information on packaging Raw chicken loading report Feed delivery note from feed mill Day old chick’s medication report Traceability record in low risk area Live chicken slaughtering report Feed inspection report Hatchery report Raw material receiving record Live chicken inspection report Day old chick receiving note Fertile eggs delivery note 18 PROCESSING FLOW & HACCP Production planning Packaging inspection Raw material inspection CCP 1 Ingredient inspection CCP 1 Water quality inspection Chicken raw material vacuum tumbling Dispatch Holding (8-12 hours) Positive release Steam cook CCP2 internal temp ≥78°C Chilled down Machine Cut IQF (internal temp ≤ 18 °C) Bagging Cold storage Casing (jumbos) X-ray detector CCP 3, glass φ≥2mm, PVC φ≥2 mm Metal detector CCP 3 Fe 1.2 mm, non EF 2.5 mm, SUS 2.0 mm Sealing 19 MARKETS Canada Canada European Union Russia China U.K. Korea Korea USA USA Hawaii Mexico Puerto Rico Japan Bahrain Middle East Middle East Hong Kong Macau Taiwan Malaysia Malaysia Existing market South Africa Singapore New market 20 SOCIAL RESPONSIBILITY I. Nine Alliance Kindergarten and Primary School II. Nine Alliance Hospital III. Nine Alliance Nursery Home for senior citizens IV. Free transportation services to pickup and send off company staff V. Free staff quarter and canteen services VI. Company subsidized housing VII. Minimum monthly wages scheme Rmb3000 ($500) VIII.Social security placement for company staff QUESTIONS AND ANSWERS 22