Beijing Baolong Logistics Co., Ltd.

Beijing, China Site Visit

January 10, 2012

By

Eric Xiang

Key Personnel:

Mr. Sun Jingxue, Managing Director

Beijing Baolong Logistics Co., Ltd. is headquartered in Beijing with 500 employees working in 32 branch offices throughout China. It is a leading third-party logistics provider (3PL) in China for printed materials. It has over 100 printing/publishing customers including top publishers such as Higher Education Press and People’s Education Press. Eggs, Chinese medicine and wood materials are other commodities it handles.

Baolong Logistics has six regional distribution centers (RDCs). They are located in Beijing, Chengdu, Guangzhou, Hangzhou, Nanjing and Shanghai and total around 60,000 square meters of space. Baolong Logistics transports books and other printed materials from Beijing to each RDC. From the RDCs, the publications are delivered to the publications’ sellers in each province via truckload and less-than-truckload. For shipments within 600 kilometers, transit time is less than 24 hours. For all other shipments, transit time is two to three days.

Baolong Logistics has a good transportation management system and warehouse management system for inventory management. Its customers like the system very much because it also helps in avoiding over publication and reverse logistics. Baolong Logistics can also provide daily reports to its customers.

In addition, Baolong Logistics has registered another company named Juxinfeng Logistics that operates in Shenyang. It is a trucking company that can provide 24-hour service as a common, for-hire carrier. It has a contract with the Shenyang government to manage 2,000 trucks in the near future. The project focus will be mainly on vegetables, food, appliances and super market goods distribution within the city area. Juxinfeng Logistics has the potential to expand the business to other cities if the project in Shenyang is successful.

According to Managing Director, Mr. Jingxue, two investors from Japan had an interview with him and he may release some share to them as he needs capital to build a strong network for distribution within the city area. Baolong Logistics will have the opportunity to go to public two years after the investors’ join in.

Mr. Jingxue also advised that Beijing Logistic Inc. listed in OTCBB does not have a relationship with Beijing Baolong Logistics Co., Ltd. It is a bad story for him, which he explained in a newspaper article.

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