Jiangxi Internet Logistics Co., Ltd.

Jiangxi Internet Logistics Co., Ltd. was established in June 2015, with its registered address in Fengcheng City, Jiangxi Province. Due to business development needs, it moved to Nanchang City, Jiangxi Province in September 2016. In August 2017, in accordance with the requirements for future shareholding system reform, the company changed its equity structure, further clarifying its equity. The company is mainly engaged in water and land general cargo transportation. At present, it primarily provides full-process transportation services for large domestic coal producers such as China Shenhua and China Coal Energy to directly sell coal in Jiangxi, as well as domestic transportation services for major coal consumers in Jiangxi Province who purchase or import coal in the north.

The company adheres to an asset-light operating model. With the help of the "Internet Plus" initiative vigorously advocated by the state, it rapidly achieved a "carrier without vehicles or vessels" operating model. Since its establishment, relying on the rich experience and reputation accumulated in the industry by its major shareholders and senior management team, the company's business has developed rapidly. In 2016, it transported 2.4 million tons of coal, and in 2017, it contracted to transport 7 million tons of coal, becoming a private logistics enterprise with the largest general cargo transport volume in Jiangxi Province.

The company's business model is to provide full-process logistics services for out-of-province bulk commodity sellers or in-province bulk commodity buyers through the "sea-to-river" sea-rail intermodal transport mode (coastal port → transshipment at lower Yangtze River wharf → landing at Jiujiang Wharf or secondary transshipment at Poyang Lake → wharf along the Gan River → railway or highway → customer receiving point), and to guarantee the quantity, quality, and time requirements of goods during transportation. According to estimates, the above-mentioned "sea-to-river" sea-rail intermodal transport saves more than 50%-60% in freight rates compared with pure railway or railway plus highway transport, and has now become the preferred mode of transport for sellers or buyers of inbound bulk commodities in Jiangxi Province.

The company's current business operations are orderly. It has established long-term strategic cooperative relationships with relevant wharves in the lower Yangtze River and transshipment points at the mouth of Poyang Lake. It handles more than 20% of the landed cargo volume at relevant wharves in Jiujiang and has absolute control over wharves along the Gan River in Nanchang, Fengcheng, and other locations. It has also established long-term good cooperative relationships with relevant railway loading points. The stability of the above resources enables the company to effectively control difficulties such as quantity and quality losses during transportation and time requirements, which has been highly affirmed by shippers. The company enjoys a good reputation in the industry, and its business continues to grow.

The company's current "sea-to-river" sea-rail (highway) intermodal transport model is highly consistent with the "Thirteenth Five-Year Plan for Coal Development in Jiangxi Province" and can serve and benefit from the overall framework of ensuring Jiangxi's energy security. At the same time, with the completion of the Xiajiang Water Conservancy Hub on the Gan River waterway, the company's business can rapidly expand to central and southern Jiangxi. While focusing on business within Jiangxi Province, the company is actively planning "sea-to-river" water-land intermodal transport in Hunan and Hubei, and has currently made positive progress.

In the future, Jiangxi Internet Logistics Co., Ltd. will actively integrate into the overall framework and grand strategy of the national development of the Yangtze River golden waterway and the Yangtze River Economic Belt, continuously explore, and strive with determination to build the company into the largest carrier of inbound bulk raw materials via water-land intermodal transport in the "Two Lakes and One River" region within three years.