Guangzhou City Star Logistics Co., Ltd.

Guangzhou, China

April 12, 2012

By

Eric Xiang

Key Personnel:

Mr. Huang Aijuan, Managing Director

Mr. Luo Yibao, Managing Director’s Assistant

Guangzhou City Star Logistics Co., Ltd. was founded in 1992. It is headquartered in Guangzhou, the capital and largest city of the Guangdong province, and has a total of 3,000 employees.

Of the 300 owned offices City Star has in China, 130 offices are in the Guangdong province. There are also two regional distribution centers (RDCs) in Guangdong – one is in the Baiyun District and one is in the town of Humen. Additional RDCs are located in Shanghai, Changsha, Wuhan and Shijiazhuang. Its warehouse space totals 300,000 square meters.

City Star Logistics operates 500 trucks which are all GPS equipped. Both less-than-truckload (LTL) and full-truckload (FTL) service is provided. For its City to City service, there is Normal service, High Quality service and Flight service. Normal service falls under its daily trucking service, where its standard service is provided. There are 200 lanes to provide High Quality service as there are transit time limitations. City Star Logistics will feed information to the consignee after pickup and feed information back to the shipper after delivery. For Flight service, the customer can track the shipment timely with a VIP account. City Star Logistics has contracts with the domestic airlines. It transports some urgent shipments by air to match customers requirements for short transit time.

Other than transportation, City Star Logistics provides collection services. City Star charges around 0.3 percent as the commission fee and returns the payment to the shipper within three days. Historically, this service has a been very good. City Star has collected RMB 14 billion in the past 19 years without error.

Although Mr. Luo Yibao wasn’t open to providing revenue or cargo volume information, we estimate City Star handles about 3,000 tons per day and 1 million tons annually and generates $100 million in gross revenue. Its customers include Daphne, Galanz, Midea and TCL.

City Star is a well-known brand for LTL and FTL in China. It has solid network in the Guangdong province as all of its offices are invested by its own capital. However, it needs strong capital support to build a solid network throughout China. If it can build the same network in other provinces like it has in Guangdong, it will have good growth in the future.

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