ORCODA LIMITED — Management Reports 2017

Aug 30, 2017

Managing Director’s Letter to Shareholders 执 行董事致股 东 的一封信

SmartTrans Holdings Limited ASX: SMA

31 August 2017

2017 年 8 月 31 日

An Australian based Technology Solutions Company

Corporate Structure: Shares on issue: 2,778 M Unlisted Options: 332 M Market Cap: $AUD 22M

52 week high: 3.4 cents 52 week low: 0.7 cents

Dear Shareholders,

尊敬的股东们：

As you are aware, I was appointed Managing Director in July of this year. I would like to provide the following summary which might be helpful. In my brief time as Chief Operating Officer and more recently as Managing Director, I have come to recognise the significant potential for SmartTrans in China and Australia.

Directors:

Mr Mark Vaile AO Non-Executive Chairman

Mr Brendan Mason CEO and Managing Director

Mr Bryan Carr Executive Director

Mr Yui (Ian) Tang Non-Executive Director

Ms Tracy Colgan Non-Executive Director

Melbourne Office: Level 1, 10 Queens Road Melbourne VIC 3004 Australia

Beijing Office: Room 501, Grand Pacific Building A 8 Guanghua Road Chaoyang District Beijing 100026 PR China

Phone (Aus): +61 (3) 9866 7333 Phone (China): +86 (10) 6500 0910 Website: www.smarttransholdings.com.au Twitter: www.twitter.com/SmartTrans_SMA

如您所知，今年七月我受命成为公司执行董事。本封信中我会向大家提供一些信息，希 望能够对您有所帮助。在我短暂的总运营官以及执行董事期间，我已深刻意识到慧智通 远在中国以及澳大利亚的巨大发展潜力。

China e-Commerce Business

中国的电子商务

SmartTrans connects Australian and NZ manufacturers with retail consumers in China. Our platform, called Roolife, enables consumers in China to source product directly from Australian/NZ suppliers. For the consumer, we provide a capability to pay in Chinese currency and have the merchandise directly delivered to them in China. For suppliers, we assist them with the special requirements of the China market (including licensing, registration, IPR, distribution and permits) and we can currently facilitate payment from China in AUD/NZD but merchants can choose to receive transfers from China in any currency.

电子商务连接了中国的零售消费者与澳大利亚以及新西兰的制造商。中国的消费者可以 通过我们的袋鼠海淘馆直接向澳大利亚 / 新西兰的供应商采购。通过我们，消费者可以使 用人民币支付，商品直接邮寄到中国；供应商不仅可以得到有针对性的服务（包括办理 授权，注册，知识产权保护，经销和许可），还能够选择当地货币（澳币 / 新西兰币）或 者其它指定货币支付。

We currently support direct sales via our own eCommerce stores on WeChat and Taobao as well as jointly marketing through two large wholesale platforms. The product range offered through SmartTrans currently stands at 300 lines from 19 suppliers, and continues to expand with the support of our sourcing funnel process. New suppliers and SKUs are being added every few days. Featured vendors include highly regarded Australian brands including Tim Adams Wines, Morlife Functional Foods, Wolf Blass, and Soapnut Republic cleaning products. We recently extended the offering to include Australian travel packages, the first time that SmartTrans’ platform has been used to offer a service.

公司现在通过自营微信和淘宝商店进行商品直销，也与两大平台展开联合推广宣传。当 前产品来自 19 家供应商共 300 余种商品，通过采购，产品种类还在不断扩大。每隔几天 就会有新的供应商加入，库存量单位也在不断增加。公司主推产品包括蒂姆•亚当斯葡萄 酒， Morlife 功能健康食品，禾富酒园和 Soapnut Republic 清洁产品。公司最新扩展了澳大 利亚旅游服务，这也是公司的第一项服务类业务。

Integrity Innovation/Inspiration/Information

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Since its launch in January 2017, Roolife has grown rapidly, with sales reaching $133,900 for the month of July. Our August results are in last stages of being finalised and are up again. We are confident that strong sales growth will continue.

袋鼠海淘 馆 自 2017 年运 营 至今， 发 展迅猛。 仅仅 运 营 数月，七月 营业额 已达到 13.39 万澳元（ $133,900 ）， 八月份数据 还 未公布，但可以肯定是增 长 的 趋势 。 预计 接下来会持 续强劲 的 发 展。

In recent weeks, we have taken significant steps to improve our performance and cash flow. We have reduced our cost and resourcing base, especially where it doesn’t affect revenue, and have worked with suppliers and platform partners to improve trading terms so that the company's cash resources are used more efficiently. These initiatives will help us to accelerate the time to profitability.

近几周，公司采取了一系列措施提高 业绩 、增加 现 金流。其中，公司降低了成本和 动态资 源基数，在不影 一 响利 润 的前提下，公司改善了与供 应 商和平台的合作条款，提高公司的 现 金使用效率。以上 举 措都会 进 步加快袋鼠海淘 馆 的 销 售。

Roolife’s reputation as a growing market place for trusted, quality Australian goods and services continues to show encouraging growth. As Australians, Chinese consumers recognise our ability to source authentic goods from quality suppliers. Our Australian connections share these same trading values. Our medium-term objective is to achieve meaningful scale so the business can continue profitable growth.

袋鼠海淘 馆 致力于打造成 为 一个 销 售高治 疗 澳大利 亚产 品与服 务 的交易平台，其令人信 赖 的品牌形象逐 渐 树 立， 这 无疑是 让 人振 奋 的。首先公司 为 澳洲企 业 ，中国人相信我 们 不会 销 售假 货 。而我 们 的澳洲合作伙 伴也 坚 持了 这样 的理念。公司目 标 是不 进 行无意 义 的 扩张 。

Telco Carrier Payments Business

泰利科支付

Reflecting Chinese consumers' rapid adoption of the WeChat and Alipay payment platforms, this business is being wound down. The company is actively pursuing the collection of outstanding receivables from China Mobile in China.

中国消 费 者普遍使用微信支付和支付宝， 该项业务 逐 渐缩 小。公司正在 积 极与中国移 动 沟通，追回欠款。

Supply Chain Solutions business

供应链结局方案

SmartTrans’ cloud-based SaaS Telematics platform allows transport managers to quickly and simply despatch, track and optimise delivery vehicles. We give managers control and location tracking over each vehicle, allowing them to most efficiently manage the routing and sequencing of deliveries, thereby saving time and money. The efficiency benefits are easy to reconcile and the cost savings associated with optimisation are reported daily. Transport managers can dynamically configure their transport networks around special customer service requirements and constraints. Users pay a monthly subscription which varies according to the size of their transport fleet and the complexity of their customers’ needs.

我们的云技术 SaaS 平台，帮助用户快速简单的派遣、追踪以及优化派送车辆。交通经理可以控制并获得每 一俩车的定位，优化路线和派送顺序，达到节约时间与成本的目的。效率的提高简单易得，用户会收到由 优化产生的成本节约日报。用户还可以根据其客户的特殊需求动态安排交通路线。用户只需每月支付一定 费用购买该服务，费用根据车队大小以及要求的复杂程度而不同。

Integrity/Innovation/Inspiration/Information

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This business is showing encouraging results from a recent restructure and expansion of its marketing effort. Existing customers continue to show exceptional loyalty, and nearly all customers are renewing for extended terms. Customers extending and renewing include Ceva Logistics, Austral Bricks, Sigma Healthcare, Baycorp and BAM Wine Logistics.

该业务最新重组，并加强了市场推广力度，收效明显。现存用户显示出了强烈的产品忠诚度，基本所有用 户都选择继续使用。续约用户包括基华物流、 Austral Bricks 澳砖公司 ， Sigma 医疗， Baycorp 征信机构和 BAM 葡萄酒物流。

Concurrently, we have installed a sales CRM system that allows us to qualify deals. We are seeing our forward sales pipeline expand considerably with many local and overseas enquiries. We recently launched an entry-level Express product to complement the more sophisticated Mobility and Optimisation products and it has been well received. Recent new contracts include Kings Transport, Calendar Cheese, and materials supplier Fultons.

同时，公司安装了客户关系管理系统，从而更好的确保合同质量。公司接到大量的国内外咨询，发展后劲 十足。公司最近推出的入门级 Express 产品反响良好，产品可以与更高级的 Mobility 和 Optimisation 产品配 套。最 新 订单 来自 Kings Transport 交通， Calendar Cheese 奶酪和 Fultons 材料供应。

When I joined SmartTrans I didn’t anticipate that my years of experience managing the complexities and ambiguities of the China market would connect with my earlier management experience. Back when I was at Boral, I was tasked with optimising the largest truck fleet in Australia and it was quite a challenge. Recalling this experience, I can see that our supply chain business has huge potential.

我在中国摸爬滚打很多年，中国市场复杂，充满了不确定性。在加入慧智通远之前，我并没有意识到我的 这些管理经验会跟我早先在澳大利亚博罗石膏建材安排卡车运输的经历联系到一起。尽管领域不同，二者 都有宏远的发展前途。

Both our businesses show great prospects, albeit in different ways. We have a team of 28 dedicated people based in four cities who now have clear objectives.

公司团队共 28 人，分驻四座城市，各司其职。我很期待在本财年中向您继续定期汇报。

I look forward to providing you with further regular progress reports over the course of this financial year.

Thank you for your continued support.

感谢您的支持。

Yours sincerely,

祝好

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Brendan Mason

梅森

Integrity/Innovation/Inspiration/Information