2015 ENDS WITH EXPLODING HOVERBOARDS AND GROWING ETHICAL CONCERNS

ASIAINSPECTION Q1 BAROMETER

HONG KONG, JANUARY 7, 2016

ASIAINSPECTION (AI)

A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD

TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN

today announces its 2016 Q1 Barometer, a quarterly synopsis on outsourced manufacturing and the quality control services industry.

CHINA STILL IN THE SPOTLIGHT FOR PRODUCT SAFETY PROBLEMS

China made headlines in 2015 for product safety issues, such as exploding hoverboards. Together with Hong Kong, it accounted for 60% of all consumer

goods recalls in the EU in Q3 2015.

CHINA’S QUALITY ISSUES CONTINUE TO RAISE INTERNATIONAL CONCERN

For 2015, AI data shows nearly one in three product inspections performed in Chinese factories have failed for exceeding the allowed

level of defects.

Pakistan

+13%+11%

+9%

+4%

Thailand Vietnam Cambodia

2015 Inspection Failure Rate Growth

OTHER LOW MANUFACTURING COST COUNTRIES SEE QUALITY ISSUES RISE

Q4 2015 CONFIRMS GROWING CONCERNS IN SUPPLY CHAIN ETHICAL ISSUES

Thailand remains in the spotlight under more accusations of modern slavery. A recent investigation revealed extensive use of slave labor in the peeling of

shrimp only one step removed from major Thai seafood exporters.

TURKEY NAMED AMONG THE WORST FOR LABOR RIGHTS AND WORKER SAFETY

The overall safety situation in the country is not improving, with the death toll reaching 1593 in 11 months of 2015.

GROWING ETHICAL CONCERNS AS FACTORY AUDIT SCORES SHOWS NO IMPROVEMENT

Cambodia saw its average factory score decrease by more than 2 points (out of 10) in Q4 2015 vs. 2014, and Pakistan, Indonesia, and Vietnam also

saw compliance drop.

Currently pollution in China accounts for 17% of the nation’s annual death toll, killing more than 1.5 million people every year. Combined with the heavy

water pollution - 60% of ground water not fit for human contact.

THE ENVIRONMENTAL SITUATION IN CHINA REMAINS VERY GRAVE

Cambodia

+129% +119% +114% +108%

Thailand Peru Vietnam

2015 Inspection Growth

GLOBAL TRADE: A NEW START IN 2016?

Experts anticipate a global trade rebound in south-to-south exchanges which has been reflected in increased inspections by AI in 2015.

VIETNAM PREDICATED TO BE A 2016 WINNER

While already among the US’s top ten trading partners, it is predicted that when the Trans Pacific Partnership takes effect, Vietnam will see explosive

growth in exports - some reports estimate by +50%.

AsiaInspection (AI), a leading global quality control and compliance ser vice provider

that partners with Brands, Retailers and Importers around the world to secure, manage and optimize their supply chain.

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FOOTNOTES

1. The Guardian. UK retailers recall hoverboards following government advice. December 16, 2015. http://www.theguardian.com/technology/2015/dec/16/uk-retailers-recall-hoverboards-consumer-protection-act

2. Retail Times. Stericycle Index reveals 60% of all EU consumer product recalls last quarter originated in China and Hong Kong. November 20, 2015. http://www.retailtimes.co.uk/stericycle-index-reveals-60-eu-consumer-product-recalls-last-quarter-originated-china-hong-kong/

3. The Guardian. Shrimp sold by global supermarkets is peeled by slave labourers in Thailand. Decemebr 14, 2015. http://www.theguardian.com/global-development/2015/dec/14/shrimp-sold-by-global-supermarkets-is-peeled-by-slave-labourers-in-thailand

4. Todays Zaman. Turkey named among worst countries for workers. June 25, 2015. http://www.todayszaman.com/anasayfa_turkey-named-among-worst-countries-for-workers_391833.html

5. Todays Zaman. 1,593 Turkish workers die on job in first 11 months of 2015. December 02, 2015. http://www.todayszaman.com/business_1593-turkish-workers-die-on-job-in-first-11-months-of-2015_405893.html

6. Time. China Issues ‘Red Alert’ Over Devastating Air Pollution. December 19, 2015. http://time.com/4155365/china-red-alert-smog/

7. Reuters. RPT-More than 60 pct of China’s underground water rated unfit for human contact. June 4, 2015. http://www.reuters.com/article/china-environment-water-idUSL3N0YQ3CV20150604

8. Trade and Export Finance. Global Trade Set For Bumper 2016, Says HSBC. December 8, 2015. http://www.txfnews.com/News/Article/5374/Global-trade-set-for-bumper-2016-says-HSBC

9. Fibre2Fashion. ‘TPP may boost Vietnam apparel export by 50% in 10 years.’ December 7, 2015. http://www.fibre2fashion.com/news/apparel-news/-tpp-may-boost-vietnam-apparel-export-by-50-in-10-years--176275-newsdetails.htm