ORCODA LIMITED — Management Reports 2018

Jan 8, 2018

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

9 January 2018

SmartTrans Holdings Limited ASX: SMA

An Australian based Technology Solutions Company

2018 年1 月9 日

Dear Shareholders, 各位股东：

Directors:

Mr Mark Vaile AO Non-Executive Chairman

Mr Brendan Mason Managing Director

Mr Bryan Carr Non-Executive Director

Mr Yui (Ian) Tang Non-Executive Director

Ms Tracy Colgan Non-Executive Director

Mr Mark Ziirsen Non-Executive Director

Melbourne Office: Level 7, 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 (Australia): +61 (3) 9866 7333

Phone (China): +86 (10) 6500 0910

Website: www.smarttransholdings.com.au Twitter: www.twitter.com/SmartTrans_SMA

As we start the 2018 calendar year, I am pleased to provide an update on SmartTrans’ recent achievements.

在2018 年新年伊始之际，我很荣幸能够在此向各位汇报SmartTrans 2017 年度业 务情况。

It is now six months since I was appointed CEO and tasked to maximise the potential that we hold in our operating businesses. As reported in August 2017, SmartTrans took the decision to exit the mobile carrier payments business. We have implemented the necessary measures to refocus SmartTrans, to reduce expenses and administrative costs, and to improve cash flow.

自我被任命为SmartTrans 首席执行官至今已经有六个月的时间了。我的主要任务 是带领SmartTrans 最大限度地发挥我们在业务领域的潜力。根据2017 年8 月的报 告，今年年初时，SmartTrans 决定退出移动运营商支付业务。作为首席执行官，我 采取了必要的措施，重新调整业务重点，降低费用和管理成本，改善现金流。

With these initiatives now complete, it is apparent that SmartTrans operating businesses show great promise. Our China eCommerce business continues to grow, and in Australia, our transport logistics software business is growing and improving its key metrics.

如今，我们的公司已经发生了显著的变化，SmartTrans 已经显示出更大的商业潜力， 拥有无限希望！在中国，我们的电子商务业务持续增长，而在澳大利亚，我们的运 输物流软件业务也在不断增长，业务关键指标也在不断升级完善。

The Resource Connect acquisition will be transformatational for SmartTrans, further extending our logistics optimisation services into transport, and beyond into personnel deployments. The extensions to this business division provide us with the capabilities to satisfy the requirements of the very large mining and construction industries, which are challenged with highly complex supply chains, and allow us to expand into some new and exciting business sectors.

我们近期对Resource Connect 的收购将对公司发展产生变革性影响，它使我们能 够进一步将我们的物流优化服务延伸到交通运输领域，并进一步扩展到人员部署领 域。当前，采矿业及建筑业正承受着来自复杂供应链以及新兴业务部门的双重挑战， 而上述业务的拓展将为我们提供满足这两大行业巨大需求的能力。

I am now much more confident that SmartTrans has the necessary base to grow revenues, become profitable, and achieve positive cash flow in the medium term. 基于上述的种种进步，我更加坚信，SmartTrans 已经具备增加收入、实现盈利，并 在中期实现正现金流的必要基础。

Integrity/Innovation/Inspiration/Information

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Following is a summary of our businesses, as I see them. 以下是我对SmartTrans 的业务总结。

China e-Commerce Business

在华电子商务业务

This Chinese e-Commerce platform, called RooLife, permits consumers in China to source products directly from Australian and New Zealand manufacturers. RooLife serves two distinct purposes - allowing Chinese consumers to access a wider range of quality Australian and New Zealand products and, and secondly, assisting brands to establish a presence in China. While Chinese consumers have a great affinity for Australian and New Zealand suppliers, they are often have misgivings about authenticity and quality. Using SmartTrans’ RooLife platforms (Alibaba, WeChat, O2O and offline), consumers are able to confidently search for and purchase Australian goods for direct shipment to their door from a trusted source. Importantly, Chinese consumers can pay in local currency via the Alipay/Wechat smartphone QR code payment system and this is converted to Australian dollars and then directly paid to the Australian vendor. For suppliers, SmartTrans assists and supports them by managing the specific and often complex requirements of the China market, including licensing, registration, intellectual property rights, distribution and the many permits needed to do business in China. One of SmartTrans’ key benefits for suppliers is our ability to facilitate payment in local currency, currently AUD/NZD or otherwise at the merchant’s choice.

我们的中国电子商务平台——袋鼠生活吧（RooLife）为中国消费者提供了直接向澳大利亚/新西 兰制造商购买优质产品的机会。RooLife 平台肩负着两大使命——为广大中国消费者提供更多的 海外优质产品；协助更多的澳大利亚/新西兰中小品牌进入中国市场。事实上，中国消费者对澳大 利亚及新西兰的产品有着很高的好感度，但由于近年假货次品等产品问题频出，他们往往对供应 商提供的产品的真实性和产品质量持有疑虑。而通过袋鼠生活吧（RooLife）这一平台，消费者能 够放心地购买优质海外产品——所有产品将直接由品牌商发货，通过海外直邮的方式运送到消费 者手中，真正意义上实现了正品保证。值得一提的是，中国消费者可以通过支付宝/微信智能手机 二维码支付系统以当地货币进行支付，SmartTrans 收到货款后兑换成澳币，直接支付给澳大利亚 供应商。对一切供应商来说，SmartTrans 的价值在于，我们能够全方位地为他们提供进入中国市 场所需的准备和支持工作，包括产品资质、商标注册、知识产权保护、分销渠道等。SmartTrans 对供应商的核心优势就是我们能够按照供应商要求的货币进行支付，这直接为意图进军中国市场 的海外企业解决了最棘手的问题。

Deeply embedded in the local Chinese market, RooLife is able to quickly respond to the needs of Chinese consumers. For example, RooLife has picked up on the trend towards online to offline (O2O) channels, as evident in Alibaba’s opening of offline stores. Taking advantage of the virtuous circle of blending online and offline, we have recently launched our own O2O channel, which allows personal shoppers in China to inspect Australian goods in a local, physical O2O shopfront and to order directly from the Australian supplier via our network. We continue to support direct sales via our own e-Commerce stores on WeChat and Taobao and through joint marketing with Wjke and Dodoca. We hope to provide a more detailed update on our O2O progress very soon.

Integrity / Innovation / Inspiration / Information

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我们的中国电子商务平台——袋鼠生活吧（RooLife）为中国消费者提供了直接向澳大利亚/新西 兰制造商购买优质产品的机会。RooLife 平台肩负着两大使命——为广大中国消费者提供更多的 海外优质产品；协助更多的澳大利亚/新西兰中小品牌进入中国市场。事实上，中国消费者对澳大 利亚及新西兰的产品有着很高的好感度，但由于近年假货次品等产品问题频出，他们往往对供应 商提供的产品的真实性和产品质量持有疑虑。而通过袋鼠生活吧（RooLife）这一平台，消费者能 够放心地购买优质海外产品——所有产品将直接由品牌商发货，通过海外直邮的方式运送到消费 者手中，真正意义上实现了正品保证。值得一提的是，中国消费者可以通过支付宝/微信智能手机 二维码支付系统以当地货币进行支付，SmartTrans 收到货款后兑换成澳币，直接支付给澳大利亚 供应商。对一切供应商来说，SmartTrans 的价值在于，我们能够全方位地为他们提供进入中国市 场所需的准备和支持工作，包括产品资质、商标注册、知识产权保护、分销渠道等。SmartTrans 对供应商的核心优势就是我们能够按照供应商要求的货币进行支付，这直接为意图进军中国市场 的海外企业解决了最棘手的问题。

RooLife currently provides services for 21 Australian brands. The ranges of products listed on RooLife has expanded from 51 to 219 SKUs and includes health, health foods and beauty, as well as the purest traditional Chinese herbs grown in Australia. New suppliers and SKUs are being added every few days. Featured vendors include Tim Adams Wines, Morlife Functional Foods, Wolf Blass, and Soapnut Republic cleaning products. We recently extended the RooLife offering to include services, the first of which is Australian travel packages. RooLife has a clear and targeted approach when selecting brands to ensure that we continue to live up to the RooLife promise to offer only the highest quality Australian lifestyle products.

袋鼠生活吧（RooLife）目前在为21 个澳大利亚品牌提供专业服务，产品种类从51 种增加到219 种，涵盖了葡萄酒、保健品、健康食品、洗护产品、清洁用品等各大类别。其中最引人注目的品 牌有Tim Adams 葡萄酒, Wolf Blass 葡萄酒，Morlife 功能食品，Soapnut Republic 清洁用品等。 同时，新的品牌及产品也在源源不断地涌入，极大程度地增加了我们的产品多样性。最近我们将 RooLife 的业务内容扩展至服务领域，我们目前在做的一款服务类产品是极具吸引力的澳大利亚 深度游线路。RooLife 平台在选择品牌上有着严格的标准和明确的方向，始终坚守“只提供最优 质的澳大利亚产品”的承诺。

Looking to 2018, RooLife’s key tasks will be to continue to grow revenues, whilst maintaining healthy gross margins and controlling costs. We believe that the revenue contribution will accelerate as we are able to continue to build unique brand positions for our Australia/NZ supplier partners. The hard work we have undertaken on our trading terms is already paying off with improved cash flow for this division.

展望2018 年，RooLife 的主要任务是持续增加营收，合理控制成本，提升利润空间。我们坚信， 随着我们继续深入对澳大利亚及新西兰供应商的优质品牌服务，我们的营业额将实现持续快速增 长。此外，我们与供应商及渠道商在交易条款谈判上所做的努力也收到了显著成效，SmartTrans 电商业务现金流明显改善。

Integrity / Innovation / Inspiration / Information

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Supply Chain Solutions business 供应链解决方案业务

Our cloud-based SaaS Telematics platform allows transport managers to quickly and simply despatch, track and optimise delivery vehicles. We provide managers with control and location tracking over each vehicle, allowing them to optimise the routing and sequencing of deliveries to save time and money. Importantly, SmartTrans’ software integrates with their own key operational software, meaning we become embedded in their operational systems. 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 own customers’ needs.

我们基于云计算的车载咨询系统软件即服务平台（SaaS Telematics）使得运输管理人员能够快速 便捷地进行派遣、跟踪定位以及优化运输工具。我们为运输管理人员提供对每辆车的控制和位置 跟踪，使他们能够优化交付的路线和顺序，达到节省时间和费用的目的。重要的是，SmartTrans 提供的软件能够和客户公司的主要操作软件相融合，这意味着我们可以嵌入到他们的操作系统中。 客户能很清楚地看到高效率运作的好处，此外系统每天都会对环节优化所带来的成本节约进行报 告。运输管理人员能够借助系统，根据客户的特殊要求或限制规定来灵活配置他们的运输网络。 软件即服务平台的收费标准根据用户运输车队的规模以及他们自己的客户需求复杂程度而有所不 同，用户只需根据服务内容按月支付相应的费用即可享受优质便利的服务。

SmartTrans’ Supply Chain Solutions business is showing encouraging results from a recent restructure and expansion of its marketing effort. 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 this has been well received.

SmartTrans 近期SmartTrans 澳洲对供应链解决方案业务进行了结构调整和市场拓展，成果令人 鼓舞。我们有望接收到更多来自澳大利亚本地以及海外的询盘，未来的销售渠道将大幅增加。此 外，我们最近推出了一款初级Express 产品，作为精致的Mobility and Optimisation 产品的补 充，并且受到了广泛的好评。

Recent new contracts have been signed with Calendar Cheese and materials supplier Fultons. We have extended the Ceva Logistics contract to include Ceva’s Caltex and On-the-Run (OTR) operations. The pre-existing Austral Bricks Victoria contract has been expanded to include Western Australia, South Australia, Queensland and Tasmania, thereby significantly increasing the scope and future value of the Austral Bricks relationship.

近期我们与Calendar Cheese 以及材料供应商Fultons 签订了合同，同时扩展了与Ceva Logistics 的合同内容，增加了Ceva’s Caltex 及 On-the-Run (OTR) 运营服务。我们原有的与 Austral Bricks 的合作从维多利亚州扩大到了西澳大利亚州，昆士兰州和塔斯马尼亚州，这显著 扩大了我们与Austral Bricks 的合作范围，加深了我们的合作伙伴关系。

Integrity / Innovation / Inspiration / Information

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Other existing customers continue to show exceptional loyalty, with almost all our current customers renewing for extended terms. Customers extending and renewing during the most recent period include Ceva Logistics, Austral Bricks, Sigma Healthcare, Baycorp and BAM Wine Logistics.

我们的其他客户也继续表现出非凡的忠诚度，几乎所有的客户都选择和我们续约。最近一段时间 内我们新增的客户包括Ceva Logistics，Austral Bricks，Sigma Healthcare，Baycorp 以及 BAM Wine Logistics。

Resource Connect Acquisition 收购Resource Connect

The recent Resource Connect acquisition opens an exciting new chapter for SmartTrans. Resource Connect is a managed SaaS platform that coordinates personnel deployments for remote mining and construction projects. With these types of personnel deployments typically requiring the coordination of multiple contractors and subcontractors around project, transport and accommodation constraints, they quickly become very complex. Any breakdown or bottleneck in the process will soon manifest in project delays and increased costs. The Resource Connect platform allows these complex supply chains to be coordinated from a central point, with individual personnel being tracked and accounted for at every point in the chain.

近期对Resource Connect 的收购为我们打开了一个令人兴奋的新篇章。Resource Connect 是一 个托管式软件即服务平台平台，负责协调远程采矿和建筑工程项目的人员部署。由于这两种类型 的人员部署通常需要多个承包商和分包商根据项目、交通以及食宿等因素进行协调，因此部署工 作往往非常复杂并且繁重。在此过程中出现的任何失误或者瓶颈都会导致项目的延误和成本的增 加，这一点恰恰是项目负责人最不愿意看到的。而Resource Connect 这一平台则通过将这些复杂 链条连到一个中心点上，然后进行整体协调，对每个员工进行追踪及核算，成功地为客户解决了 人员部署的一大难题。

The Resource Connect point of difference is that it sells in-house outsourcing management services and subcontracting services into our clients which, along with patented software applications, allows us to embrace all other suppliers into a project rather than compete against them. The platform has consistently demonstrated its ability to provide spectacular improvements in efficiency and cost savings for our customers.

Resource Connect 的独特之处在于，它将内部外包管理服务和分包服务出售给我们的客户，这些 服务与专利软件应用程序让我们能够与其他供应商携手共同完成一个项目，而不是纯粹与其竞争。 Resource Connect 平台一直以来充分展现着其为客户提高效率，节约成本的强大能力。

The Resource Connect and SmartTrans businesses are proving to be highly complementary. Resource Connect manages personnel movements while SmartTrans manages the transport fleet. We are finding that every existing Resource Connect customer is likely to become a user of our transport solution as well.

数据显示，Resource Connect 和SmartTrans 在业务上高度互补——Resource Connect 善于人员 部署，而SmartTrans 长于运输车队管理。我们发现，Resource Connect 的每一个现有客户都是 SmartTrans 交通解决方案的潜在客户，这将为我们提供无限的商机。

Integrity / Innovation / Inspiration / Information

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Resource Connect is a very healthy business and is experiencing a large and expanding pipeline of new clients and projects. In addition to the resources and construction industry, SmartTrans is gaining access to exciting new client opportunities in the deployment of healthcare personnel in aged care and disabilities services. The acquisition is immediately earnings accretive for SmartTrans shareholders and heralds what we believe is an exciting new era of growth and profitability.

Resource Connect 是一家非常优秀的公司，客户和项目基数极其庞大，并且在不断增长。除了矿 业和建筑业之外，通过对老年护理以及残疾人服务医疗保健人员的安排，SmartTrans 还将有机会 收获更多的新客户。此次收购可以为SmartTrans 股东带来迅速的盈利增长，并将预示着一个令人 兴奋的增长和盈利新时代的到来！

Conclusion of Lanstead Funding

终止Lanstead Funding

With the Resource Connect acquisition, the way forward to revenue and cash flow growth has become increasingly clear. We have therefore negotiated an early conclusion of the Lanstead equity funding, which will (subject to approval by shareholders) see the return and cancellation of 85M SmartTrans shares.

In summary, I look forward to providing you with further positive and more regular updates throughout 2018. I firmly believe that SmartTrans is in the best position in the Company’s history to capitalise on the opportunities it has available to it.

藉此机会，本人感谢所有股东对我们的信任与支持，并且热切期待能继续为您提供SmartTrans 2018 年度业务总结。

Thank you for your continued support. 感谢您的支持。

Yours sincerely, 祝好

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Brendan Mason 梅森 Managing Director 董事总经理

– ENDS –

	Further information, please contact: Brendan Mason Managing Director +61 3 9866 7333 Released through: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448	About SmartTrans SmartTrans Holdings Limited (ASX:SMA) is a leading Australian software and technology provider that offers cutting-edge solutions for the online retail and logistics markets. The company operates a payment gateway for the Chinese and Australian markets. China- In partnership with leading Chinese eCommerce firms, SmartTrans has built online marketplaces from which quality-conscious consumers in China’s rapidly growing middle class are able to purchase Australian premium consumer products. Supply Chain Australia- In addition, SmartTrans has long-term contracts with some of Australia’s leading blue-chip organisations for its proprietary, cloud- based supplychain,telematics,software as a service(SaaS)solutions.

Integrity / Innovation / Inspiration / Information