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© 2005 The Generics Group AG
November 2005
SGAI Tech LtdPartnering a Hong Kong company to capture the opportunities in China
Dr Tim Moore
CEO
- 2 -© 2005 The Generics Group AG
SGAI’s goal: realising innovative products efficiently with low risk
Understand, create & detailed design
Manufacture
Common design & manufacture outsourcing method
New paradigm - transparent link up
Outsource
Understand, create & detailed design
Manufacture
Europe China
Increase efficiency, reduce risk & time to market, keep innovation
Realising innovation
- 3 -© 2005 The Generics Group AG
Who are we?
Design & development company for break through products based in Hong Kong
Links Cambridge, Hong Kong and China
A joint venture between Cambridge-based Scientific Generics and Hong Kong based Automatic International
Follows a period of project-based co-operation
Focus on: medical devices, industrial, high-end consumer, telecoms
Combines Scientific Generics’ renowned product innovation & development skills with AI’s quality focused, highly efficient manufacturing resources
Realising innovation
- 4 -© 2005 The Generics Group AG
Hong Kong - realise maximum value from China at a low risk
Design & development
Why Hong Kong?
Has knowledge based economy - secure IP - one country two systems
Excellent quality of designers, managers & facilities
Very close to Shenzhen region for low cost manufacture
Reducing the risks
Practical control of IP from Hong Kong
Project management: highly qualified managers to directly assist with transfer to manufacture
Integrated web-based project plans
People
Western / Hong Kong educated
All speak fluent English, Cantonese & Mandarin
Great team players
Our partner AML
Quality at its core
Technically excellent
Medical device producer
35 years experience
Well respected in the region and globally
Realising innovation
- 5 -© 2005 The Generics Group AG
The business model
SGAI Tech Ltd is based in Hong Kong with two share holders: AML and Scientific Generics Ltd
SGAI is the child of both parents
Scientific Generics provides technical innovation and marketing capability while AML provides manufacturing and cultural knowledge to build an effective team
CEO is from the UK COO is from Hong Kong Team is either Hong Kong or Chinese in nationality
Depending upon the project: Design & development completed in Hong Kong, or SGAI team manages disperse design & development teams in China
Services: Advisory Services - advice for fees Design and Build Product Producer Proximity manufacture
Realising innovation
- 6 -© 2005 The Generics Group AG
Opportunities in China and Hong Kong
Through Hong Kong, China provides SGAI with both inward & outward market opportunities:
Outward opportunities: Low cost, high quality labour force Reduction in product development time scales Flexible manufacturing - high quality and low volume manufacture Large design teams
Inward opportunities (Chinese): Development of IP Western market knowledge and inclusive design
Inward opportunities (Western): Proximity manufacturing - local Chinese customers Design for Chinese markets Chinese market advice and supplier finding service
Hong Kong has always been and will continue to be a trading gateway
Realising innovation
- 7 -© 2005 The Generics Group AG
Practical tips
Plan for Intellectual property protection Both practical and legal
Be flexible in your business model Negotiation never stops The future means more than the past
Clear communication To all members of the team Clear and transparent management
Be mindful of health issues Plan accordingly
Hong Kong is a good “cultural break” Good understanding of products and concepts Some Western clients dislike of being in China...
The Hong Kong agencies are invaluable
Realising innovation
- 8 -© 2005 The Generics Group AG
Summary
Hong Kong is important for protecting and managing intellectual property when realising products in China
Hong Kong gives you flexibility
Hong Kong’s movement to a knowledge-based economy is very attractive
www.sgaitech.com
Realising innovation
