Profile: China Auto Logistics Inc (CALI.OQ)
11 Jul 2014
China Auto Logistics Inc. incorporated on February 22, 2005, is engaged in providing automobile sales and trading service and a Web-based automobile sales and trading information platform to the Company's customers. The Company, through its subsidiaries provides customs clearance, storage, nationwide delivery services, provision of information and discounted services relating to automobiles (automobile value added services) to imported automobile distributors and agents, as well as individual customers in China and operates. The Company is a one-stop service provider in Tianjin for financing services and automobile services. The Company’s services includes sale of automobiles, financing services, automobile value added services, Web-based advertising services and auto mall management services.
Sale of Automobiles
The Company conducts its sales operations of imported automobiles primarily through Tianjin Seashore New District Shisheng Business Trading Group Co. Ltd. (Shisheng), Tianjin Hengjia Port Logistics Corp. (Hengjia) and Tianjin Zhengji International Trading Corp. (Zhengji). The Company is a general agent and wholesaler authorized by the Chinese government to imports vehicles into the People Republic of China. The Company also works with automobile dealers in the overseas market. The Company sells its vehicles to authorized dealers like Ford or Lexus. The Company's sales network penetrates to agents and dealers in more than 100 cities.
The Company's financing services include letter of credit issuance services, purchase deposit financing and import duty advance services. The Company provides financing services to its customers using its facility lines of credit with its banks. The Company earns a service fee for drawing its facility lines related to customers’ purchases of automobiles and payment of import taxes. The customers bear all the interest and fees charged by the banks and prepay such amounts upon the execution of their service contracts with the Company. The customers are also required to make a deposit in the range of 22% to 30% of the purchase price of the automobile with the Company. The banks are granted a security interest in automobiles until the borrowings are fully paid.
Automobile Value Added Services
The imported automobile service industry has developed to address barriers by providing customs clearance, storage and delivery services for the dealers and agents. These service providers are located in the port cities of Dalin, Tianjin, Shanghai and Guangzhou. The Company's customs clearance service allows the Company to complete all vehicle import-related procedures in three to five days. Once vehicles are cleared through customs, the Company offers a delivery service to inland China by air, by sea or by trucks.
Web-based Advertising Services
The Company’s www.cali.com.cn integrates the Company’s Websites to provide a single portal serving a spectrum of China’s auto living public with information about auto and auto-related products and services. As of December 31, 2011, the Company operated in 35 cities throughout China. Its www.at188.com Website provides subscribers sales and trading information about imported automobiles. In addition to imported automobile sales and trading and new model information, www.at188.com also provides parts and components information. www.at188.com has also linked automobile wholesalers and retailers in China and also cooperates with media outlets, such as newspapers and television and radio stations in cities in China. Its www.at160.com Website is a platform that connects manufacturers, regional distributors and end users of domestically manufactured cars, providing them with a compelling source of information about domestic vehicles and serving as a timelier alternative to traditional magazines and television. Its www.at160.com Website provides real-time price comparison and sales and trading information in the China markets with respect to domestically manufactured automobiles. Its www.goodcar.cn Website provides customers with information relating to automotive products and services, including discounted gas, car washes, emergency roadside assistance, body-shop repair and car maintenance. www.goodcar.cn operates in Chongqing, Beijing, Tianjin, Chengdu, Wuhan and Xiamen and is accessible through www.cali.com.cn.
Auto Mall Management Services
The Company entered a management service agreement to manage the Tianjin FTZ International Automobile Exhibition and Sales Center for a 1-year term. In March 2011, the management services agreement was renewed for an additional one-year period.
China Auto Logistics Inc
Floor 1 FTZ International Auto M
86 Tianbao Avenue, Free Trade Zo
TIANJIN TNJ 300461