Jiangsu Xinning Modern Logistics Co., Ltd.

Kunshan, China Site Visit

February 14, 2014

By

Eric Xiang

Key Personnel:

Mr. King Chou, Sales & Marketing Department Director

Mr. Mike Bian, Business Development Manager

Mr. Arron Guo, Customer Service Manager

Jiangsu Xinning Modern Logistics Co., Ltd. was the first Jiangsu-based logistics company listed on the Shenzhen Stock Exchange. The company was founded in 1997 and was listed in October 2009. Its ticker symbol is 300013. It has 27 branch offices located in China, Hong Kong and Taipei and more than 1,750 employees.

Warehousing and distribution services are provided at all of its branch offices. It has 276,065 square meters of warehouse space. It also has 200 bonded trucks.

Most shipments handled are bonded goods. For imported goods, Xinning Logistics arranges customs declaration at the air and sea ports, then arranges bonded trucking to the bonded warehouse duty free. Once the customer decides it wants to sell the goods, Xinning Logistics arranges final customs clearance duty payment and delivers the goods to the consignee. For exported goods, Xinning Logistics picks up the goods from the shipper and handles customs declaration to the bonded warehouse. Once the shipment is ready for export, Xinning Logistics provides final customs clearance. The international transportation is not usually handled by Xinning Logistics.

In China, the goods of many foreign companies’ china factories are bonded goods. If the goods are to be sold to another factory, they will have to be exported first. Then the buyer can import the goods to China. There are expensive international freight costs involved. China customs now allows bonded warehouses to handled these shipments to avoid these expensive costs. Xinning Logistics is one of the bonded warehouse managers that can help customers save on international freight costs.

For bonded goods, customs clearance is a very important process. Xinning Logistics has a customs broker license, professional experience and an AA rating from China customs.

Xinning Logistics’ warehouses are very good in the China market. In the Shenzhen and Hefei warehouses, Xinning Logistics is providing RFID (radio-frequency identification) labeling. In the Kunshan warehouse, Xinning Logistics has a TAPA (Technology Asset Protection Association) certificate for high-tech products.

The well-known Chinese multinational technology company Lenovo is using Xinning Logistics’ services in Chengdu, Hefei and Shenzhen. The LCFC, Lenovo and Compal Electronics joint venture company in Hefei is using Xinning Logistics’ warehousing and distribution services. The famous Chinese white spirit brand Moutai is using Xinning Logistics’ services in Guiyang. This project is in cooperation with a bank. There are many well-known companies on its customer list.

Xinning Logistics developed its own IT system to manage the warehousing and distribution covering the 276,065 square meters of warehouse space in 27 cities. Its IT system is important to ensure the goods are kept under control. In the Kunshan warehouse, Xinning Logistics handles over 2,000 shipments monthly.

Based on gross revenue, warehouse management is 55%, distribution is 30% and customs clearance makes up 15%. According to Mr. Arron Guo, Xinning Logistics is developing international air and ocean freight forwarding in Shanghai.

Xinning Logistics gets investments from the stock market, which makes it easy to build a strong warehouse and distribution network in China. With more and more business opportunities and potential, we hope Xinning Logistics has rewarding growth in the coming years.

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