【正文】 Confidential Establishing China’s leading Money Transport Solution Company Letter of Proposal for Beijing FourDimension Johnson Security Co., Ltd. 1 Foreword Firstly we want to express our heartily appreciation to the trust given by FourDimension Industrial Group and the General Manager, Mr. Wang Yan, to Bexcel. Based on the signed management consulting contract with Zhuang Wei Real Estate Co., Ltd. ( belong to FourDimension Industrial Group), also in response to the invitation of General Manager Mr. Wang Yan of FourDimension Industrial Group, Mr. Chen Yuhong of Bexcel discussed the related issues of another core business, FourDimension Johnson. Mr. Wang introduced the main challenges presently faced by FourDimension Johnson and expressed the need of management consulting services. Before above contacts, the Senior Engagement Manager Mr. Zhao Haishan of Bexcel, Senior Consultant Mr. He Ming and Ms. Tie Hong talked with some senior management staff of Beijing FourDimension Johnson Security Co., Ltd. Later, the Managing Director of Bexcel Mr. Li Fang and Senior Engagement Manager Mr. He Xiaohong visited Mr. Wang and Mr. Chen of FourDimension Johnson and defined the main tasks of this project. On the above basis, this letter of proposal expatiates the primary understanding and proposal of Bexcel, and introduces the methods and steps that may be used in this project. This letter of proposal need to be understood and accepted by the FourDimension Johnson. The Bexcel will be very glad to discuss deeply with FourDimension Johnson about this project and confirm this letter of proposal. 2 Bexcel is very glad to submit this letter of proposal to FourDimension Johnson. There are five parts ?Project background ?Project targets and key issues ?Project plan ?Project anization ?Introduction of Bexcel 3 0100020203000400050006000700080001997 1999 2020 2020During the past few years, the sales of money transport vehicles have increased continuously in China Notes: The data of 2020 is forecasted according the development plan of specialty vehicles of China in the tenthfive years. the sales of money transport vehicles industry in China is about 2 billion RMB in 2020. 3000 5400 7000 7700 (units) 4 But the uncertainty of the market is increasing in the next two years, the opportunity and challenge exist simultaneously ? The development of financial services sector and channel reinforcement call for the increasing utilization of money transport vehicles ? In 1997, the related departments of Chinese government said that “money transport vehicles should be homemade. The government will control the import strictly ”. Then in the next 4 years, the main financial institutions of China did not buy import money transport vehicles any more ? After the entry of China into WTO, the import tax of vehicles and related fittings will be decreased step by step. This will reduce the production cost of money transport vehicles manufacturers in China which use the imported underpan and parts greatly ? The public security department of China has promulgated the industry standard of bullet resistant money transport vehicles. The standard is more strict than the counterpart international standard, which will benefit the exploitation of international market of money transport vehicles manufacturers in China ? The whole market volume of money transport vehicles will reduce a little because the financial escorting panies will replace the banks in transporting money from branch to branch ? The increasing speed of market will be slow down for the over buying in the past few years ? The amount of single procurement will be much larger. The requirement of quality and reliability will be higher ? The money transport vehicles manufacturers in China will face the direct petition of foreign petitors opportunity challenge 5 The concentration of domestic money transport vehicles manufacture industry has been pretty high. The petition will be more furious after the China’s entry into WTO. the strong will be stronger, and the weak will be weaker Less than 10% of the manufacturers occupy about 65% of the market share Large scale bidding and high standards of banks and escorting panies lead to the advantages of big manufacturers even more obvious. Lots of categories, small batch and high refit cost force the manufacturers to reduce the stock to the great length in order to decrease the cost. The clients pay more and more attention to the service. This leads to the manufacturers who are laggardly in service work and staff establishment facing the danger of being washed out by the market. 6 How to get into the golden area and exploit the international market in the next two years is the vital turning point for FourDimension Johnson 36%11%53%the sales situation of 33 money transport vehicles manufacturers in China have no sales or less than 100 sales amount just pass the line of being “alive” sales amount 100 sales amount 1000 golden area FourDimension Johnson Source: Finance News, Bexcel Analysis 7 FourDimension Johnson still faces a series of issues Source: Discussion of Bexcel and Beijing FourDimension Johnson Security Co., Ltd. project team the main problems the issues need to discuss Strategy, profitmaking and growth model ? how to choose the growth model, integrate the internal and external resources, get out of loss and make profit? Marketing strategy ? how to frame marketing strategy? Increase the sales volume profoundly? Ramp。D management ? how to absorb the introduced techniques and redesign the products according to the local clients’ requirements? ? how to manage the Ramp。D