Sichuan Jinqiao Logistics Co., Ltd.
Chengdu, China Site Visit
June 18, 2012
Mr. Liu Xianfu, Managing Director
Sichuan Jinqiao Logistics Co., Ltd. is a key logistics provider in Western China. Headquartered in Chengdu, it has a total of 800 employees working in over 100 branch offices located in Sichuan, Chongqing, Yunnan, Gansu, and Guizhou and Hubei. Its main business is transportation in Western China with warehousing and distribution in Sichuan and Chongqing.
For transportation in Western China, the freight moves mainly from Chengdu to Chongqing, Yunnan, Guizhou, Gansu and Hubei as full truckloads from city to city. Jinqiao Logistics has 20 owned trucks and 300 dedicated trucks to cover customer demand. All of the trucks are GPS equipped for tracking and managing.
For distribution within Sichuan and Chongqing, Jinqiao Logistics can cover all destinations required by its customers. It can provide to-door service, since most of the 100 branch offices are owned offices. This is very important for Jinqiao Logistics to support service levels. According to Mr. Liu Xianfu, Jinqiao Logistics’ industry focus is on apparel/shoes, electronics, telecommunications and computers.
In the near future, Jinqiao Logistics will center attention on four areas of business which are: delivery to door (for factories), super market delivery (for fast-moving consumer goods), retail delivery and the business-to-consumer market.
Jinqiao Logistics has a 20,000 square meter warehouse to manage the goods that need distribution in Chengdu. Currently, Jinqiao Logistics has around 100 key accounts. Johnson Chemical, HISAP High Technology and Red Dragonfly are on its customer list.
Jinqiao Logistics has performed well in the past years. Its annual gross revenue is around $40 million. Mr. Liu Xianfu is interested in building an owned network in Anhui, Hunan, Jiangxi, Guangxi, Hebei and Northeast China within the next three years and needs a strong sales team to promote revenue growth. In order to expand its network throughout China, Jinqiao Logistics is looking for some M&A opportunities to merge a medium or small sized logistics company.
We know Jinqiao Logistics is a key logistics provider in Western China with the ambition to develop in other areas. If it can merge with some solid candidates and build an aggressive sales team, Jinqiao Logistics will continue to grow rapidly in the coming years.
Sources: A&A Primary Research, http://www.jqyy.com/