Company News | Changjiu Logistics (Kashgar-Tashkent) TIR Truck Route Successfully Launched

 Company News | Changjiu Logistics (Kashgar-Tashkent) Truck TIR Route Successfully Launched

20th May 2024, 14:31 p.m. EDT

On May 3rd, the TIR medium-axle special-purpose vehicles of Changjiu Logistics successfully transported Chinese brand passenger cars from Xinjiang to Uzbekistan. The journey began in Kashgar, Xinjiang, and made its way out of the country through Irkeshtan port. The route then took the vehicles through Osh, Kyrgyzstan, and Andijan, Uzbekistan, before finally reaching Tashkent, Uzbekistan, covering a distance of approximately 980 kilometers. This achievement highlights the strengthening connectivity and trade relations between the two nations. The smooth transportation not only reflects the efficiency of the logistics operations but also signifies the immense potential for further economic cooperation in the region.

Changjiu Logistics TIR Car Carrier Trailer

This shipment is the second TIR shipment of Changjiu Logistics following the opening of the Bishkek route in Kyrgyzstan, and it is another powerful action of Changjiu Logistics to continue to develop international road transport, actively respond to the high-quality development of the “One Belt, One Road” and promote the development of international road transport. At present, Longevity Logistics has gradually covered key destination countries in Central Asia, and in the future, on the basis of Central Asia, Changjiu Logistics will deeply connect with long-distance routes, seek more powerful solutions for the construction of the “fourth logistics corridor” between China and Europe, enhance the level of diversification of international transport modes, and strengthen the resilience of international logistics transport solutions.

 

TIR Trucking Route Map(Kashgar-Tashkent)

Company News | Changjiu’s Debut TIR Car Carrier Trailer Cross-Border Transportation Achieves Success

Company News | Changjiu’s Debut TIR Car Carrier Trailer Cross-Border Road Transport Achieves Success

27 MAR 2024, 11:38 a.m. EDT

Recently, a Changjiu mid-axle trailer with the TIR standard, loaded with passenger cars of its own brand, slowly drove out of the Xinjiang Turgat Port. This was the first time that Changjiu Logistics provided finished vehicle logistics services through the TIR cross-border road transport mode. This first trip started from Chongqing, and after successfully completing the main section of transport within the country, the vehicle left Xinjiang through the Turgat Port and finally arrived in Bishkek, Kyrgyzstan, covering a total distance of 960 kilometres and taking two days.

International cross-border road transport can achieve “door-to-door” and “point-to-point” services, with a faster timeframe and more flexible services, and is an important mode of transport in addition to international transport modes such as railways and sea transport, which can provide more customised services to meet the different needs of customers. The TIR system was established in 1949 by the International Road Transport Union (IRU). As the world’s only customs clearance system for cross-border freight transport, the TIR system has become a practical tool for promoting trade facilitation and improving the security of international transport by simplifying customs clearance procedures and improving customs clearance efficiency.

The launch of Changjiu Logistics’ TIR cross-border road service heralds the initiation of a novel international commerce mode, signifying a groundbreaking chapter in the company’s international land transportation program and a pivotal event in fortifying our international business’s core capabilities. Looking ahead, Changjiu Logistics will remain vigilant to our customers’ needs, fostering more efficient and convenient innovative transport solutions. Our commitment is to elevate the caliber of China’s international road transport sector and to support the global expansion of domestic automobiles.

Company News | Changjiu Logistics was invited to participate in the 20th anniversary celebration of the establishment of Dalian Automotive Terminal

Company News | Changjiu Logistics was invited to participate in the 20th anniversary celebration of the establishment of Dalian Automotive Terminal

21 Feb 2024, 15:28 p.m. EDT

 

The grand opening of the 20th anniversary celebration of Dalian Automotive Terminal took place on January 29th in Dalian. Esteemed leaders from the China Federation of Logistics and Purchasing, along with representatives from prominent domestic OEMs, Ro-Ro terminals, and Ro-Ro shipping companies, gathered to mark this remarkable milestone in the industry. Among the distinguished guests was Mr. Yan Chao, the renowned rotating general manager of Changjiu Logistics, who had the honor of attending the ceremony and accepting a prestigious commemorative medal on behalf of our company.

Dalian Aotomotive Terminal 20th Anniversary Commemorative Trophy

In 2023, China’s auto production and sales volume both exceeded 30 million units, a record high, ranking first in the world for fifteen consecutive years, and China’s auto exports for the first time exceeded Japan to rank first in the world. The Northeast is an important automobile production and manufacturing base in China, with an automobile production capacity of more than 4 million units, which will be promising in the future. As the only maritime automobile port in Northeast China, Dalian Automobile Terminal, after two decades of construction and development, has an annual throughput of more than 800,000 vehicles, and is the northern hub of north-south maritime transport of domestic commercial vehicles, and the basic port for foreign trade import and export of commercial vehicles in Northeast China. Long-term logistics started in the Northeast, and after years of development, the company has a wealth of customer resources and complete service capabilities in the Northeast, always committed to the cause of the Northeast revitalization to contribute to the strength of the company.

Since 2004, Changjiu Logistics and Dalian Automobile Terminal have cooperated to open up the water transport business of FAW cars for its first domestic trade water transport cooperation logistics business, the two sides have been maintaining close cooperation for the past 20 years.The rapid development of the company’s water transport business is inseparable from the all-round support and help provided by Dalian Automobile Terminal, and we look forward to future cooperation between the two sides can continue to create a win-win situation and contribute to China’s automobile industry.

Dalian Automotive Terminal Port

Changjiu Holdings LTD. (6959.HK) Officially Launched on the Hong Kong Stock Exchange: Fully Grasping the Industry Opportunities and Highlighting the Long-Term Investment Value

Changjiu Holdings LTD. (6959.HK) Officially Launched on the Hong Kong Stock Exchange: Fully Grasping the Industry Opportunities and Highlighting the Long-Term Investment Value

09 Jan 2024, 12:39 p.m. EDT

On 9 January, China’s largest provider of vehicle monitoring services for automobile pledges, Changjiu Company Limited (hereinafter referred to as “Changjiu” or the “Company”, stock code: 6959.HK), was officially listed on the Main Board of the Hong Kong Stock Exchange, becoming a member of the automobile services sector.

Changjiu is principally engaged in the provision of pledge vehicle monitoring services and automobile dealership operation and management services in the PRC. In terms of revenue in 2022 (with a market share of 47.9%) and the number of automobile dealership users as at 31 December 2022, Changjiu is the largest provider of pledge vehicle monitoring services in the automobile distribution sector in the PRC.

Changjiu has been providing pledged vehicle monitoring services for many years and has accumulated extensive experience and expertise in the automotive distribution sector in China. As a natural extension of its business, the company has made every effort to expand its business scope and started to provide operation management services to automobile dealers seeking better business and financial performance in April 2022, thereby forming two business lines, opening up new growth poles and diversifying its revenue sources, making it a forerunner in automobile dealership operation management services.

In 2022, the average gross profit margin of automobile dealerships using ChangJiu’s automobile dealership operation and management services was 7.2%, which was higher than the average performance of automobile dealerships with similar size, brand position and geographical layout. As at 30 June 2023, the Company managed 75 car dealerships, one of which is owned by an independent third party. As at the Latest Practicable Date, the company had entered into non-legally binding letters of intent with 144 car dealerships, all of which are owned by independent third parties.

In recent years, Changjiu’s revenue has achieved steady growth. In 2020, 2021 and 2022, the Company’s revenue will be RMB430.6 million, RMB477.7 million and RMB547.9 million respectively, representing a compound annual growth rate of 12.8%. Revenue also increased from RMB258.7 million in 1H 2022 to RMB309.4 million in 1H 2023. In addition, the number of automobile dealers using the Company’s pledge vehicle monitoring services has also steadily increased from 8,316 as at 31 December 2020 to 9,205 as at 31 December 2021, then to 10,684 as at 31 December 2022 and further to 11,152 as at 30 June 2023.

The continued expansion of its business scale has enabled Changjiu to build up a large and quality user base. As at 30 June 2023, the Company provided pledge vehicle monitoring services to approximately 200 branches of 18 commercial banks (including all the “Big Six” state-owned commercial banks and 12 joint-stock commercial banks in the PRC), 27 automobile finance companies and 11,152 automobile dealers. Ninety-two of the top 100 automobile dealer group companies in China use the Company’s pledge vehicle monitoring services. In addition, the Company extends its services downstream to the industry by providing free access to its mobile application, Jiuzhutong, for tracking pledged vehicles to approximately 50,000 integrated auto traders in China.

From an industry perspective, the penetration of pledge vehicle monitoring services for automobile dealers in the PRC is expected to increase with the development of the passenger car market in the PRC. According to Scorchlight Consulting, the market size of pledged vehicle monitoring services for automobile dealers in the PRC, in terms of revenue, will increase from RMB873.1 million in 2018 to RMB1,054.0 million in 2022, at a CAGR of approximately 4.8%, and is expected to reach RMB1,451.9 million in 2027.

With its rich service supply and strong technological capability, iteratively adding to its high-quality user base, Changjiu will continue to expand its ecosystem in the automotive distribution sector, deeply linking with participants in the automotive distribution industry, enhancing its brand influence, and capitalising on the growth trend of the new energy vehicle market in China’s lower-tier cities.

Stock Information:

At present, Changjiu Group owns two listed companies, Changjiu Holdings LTD.(6959.HK) and Changjiu Logistics(603569.SH), and as a wholly-owned subsidiary of Changjiu Logistics, Changjiu Germany focuses on providing high-quality logistics services for European customers.

 

 

Summit Forum | Zhu Jingwei: “Openness – Integration – Sharing” to Promote High-Quality Development of Auto Logistics Industry

Summit Forum | Zhu Jingwei: “Openness – Integration – Sharing” to Promote High-Quality Development of Auto Logistics Industry

Dec 15, 2023, 09:25 a.m. EDT

The “2023 Annual Meeting of the Automotive Logistics Industry” took place in Shiyan on November 16th. This grand event was hosted by the China Federation of Logistics and Purchasing (CFLP) and the Dongfeng Automobile Group Corporation (DFMC) and was undertaken by the Automotive Logistics Branch of the CFLP, the Dongfeng Logistics Group Corporation (DFLG), and the Shiyan Municipal Government.With the participation of over 800 representatives from nearly 300 enterprises, including automobile manufacturers, parts manufacturers, automobile logistics enterprises, logistics equipment enterprises, research institutes, and colleges and universities, the meeting was a true gathering of industry leaders. The main focus was to discuss the current situation of the automobile logistics industry, interpret relevant policies and regulations, analyze its development trend, share successful cases of advanced technology and excellent management experience, and ultimately drive the industry towards digitalization, greening, and sustainable development.The event was highlighted by the remarkable speeches delivered and the warm exchanges that took place, further strengthening the bonds and collaborations within the industry.

Zhu Jingwei, Vice President, General Manager of Vehicle Division, Beijing Changjiu Logistics Co.

Personal Profile:

Mr. Zhu Jingwei, born in August 1985, graduated from Changchun University in 2010 and is an intermediate logistician. He joined Changchun Logistics in July 2010 and has served as manager of Jinan Branch of Jilin Changjiu Logistics Company Limited, general manager of Jinan Changjiu Logistics Company Limited, general manager of Shandong Company in the North China Region of Changchun Logistics, director and general manager of Shandong Long Heavy Duty Truck & Bus Logistics Company Limited, and general manager of Shandong, Luyu and Shaan Regions of Changchun Logistics. He is currently the vice president and general manager of the vehicle division of Beijing Changjiu Logistics Co.In 2017, he was awarded “Excellent Manager” of Beijing Changjiu Logistics Co., Ltd, member of the 9th and 10th Chinese People’s Political Consultative Conference (CPPCC) of Changqing District, Jinan City, Shandong Province, and “Top Ten Outstanding Youths” of the 9th Changqing District, Jinan City, Shandong Province.

Focusing on the new development trend of automotive logistics industry, Mr Zhu Jingwei, Vice President of Changjiu Logistics, delivered a wonderful speech with the theme of “Openness-Integration-Sharing to Promote the High-Quality Development of the Automotive Logistics Industry”, in which he analysed the positive trend of China’s automotive facing the great change that has not been seen in a hundred years and believed that multimodal transport is more in line with the trend of international automotive logistics, and elaborated the development pain points of the automotive industry in terms of the differences in the structure of the north and the south, overloading and irrational cost-control. He also elaborated on the pain points in the development of the automotive industry and called for increased supervision to create a benign competitive environment. Adhering to the development concept of “openness, integration, and sharing”, Changjiu Logistics is willing to promote the high-quality development of the automotive logistics industry together with its peers.

I.
China’s automotive development has continued for a hundred years without a major change in the positive trend, China’s car companies, to take advantage of the trend, has entered the localisation of the development stage, making multimodal transport more in line with the future trend of automotive logistics

From a global perspective, our automotive industry has gone through the course of 100 years. Developed countries have formed a very high degree of industrial relevance and market concentration. In the context of the country’s vigorous development of new energy, fuel, and new energy vehicles, the trend is irreversible, and the industrial chain system is experiencing a profound transformation.According to the State Information Centre and the Automobile Industry Association data, due to the new energy and export market pull, China’s auto sales in 2023 is expected to reach 30.59 million units, the growth rate has reached the highest in recent years of 14%, China’s auto exports are expected to be 4.82 million units in 2023, a year-on-year growth rate of up to 55%; and China has become the world’s top auto exporter.


In the dual-carbon background, the penetration rate continued to rise to 37% in October, with the consumer tide leading new energy vehicles to continue to innovate. In the next two years, new energy vehicles will continue to maintain a high growth momentum; in 2023, new energy vehicle sales will reach 9 million; in 2025, new energy vehicle sales may reach 17 million; the penetration rate will be around 50%.
With the rapid development of China’s auto market and the pull of auto exports, the company will develop in the direction of supply chain management integration, containerisation, platformization, and diversification, and at the same time strengthen cooperation with countries and regions along the “Belt and Road” to expand overseas markets, achieve a global layout, and run towards the future of the stars and oceans!Chinese automobile enterprises are sailing against the wind, taking advantage of the momentum, and overseas investment and plant construction have become the choice of more automobile enterprises. China’s auto exports are changing from vehicle export mode to overseas investment and plant construction mode; the proportion of vehicle exports will gradually decline, and the proportion of KD parts exports will climb year by year. The final realisation is the localization of China’s auto production overseas. Changjiu Logistics is also willing to work with customers to broaden the overseas supply chain. According to the experience of the international automotive logistics industry, multimodal transport is more in line with the trend of international automotive logistics.

Ⅱ.
Structural differences between the north and south, overloading and irrational cost-control remain huge challenges to automotive development and pain points in the industry

Due to the unbalanced development of production and market in the automotive industry, the north-south structure of the industry’s resources is significantly different, and this change in the structure of resources is a greater challenge for vehicle logistics. From the point of view of 2022 automobile production data, the total annual output of Chinese car enterprises is 27.476 million units, landing distribution of the north and south of a serious imbalance, has more than 2:1. 15 provinces in the south of the production of 18.772 million units, accounting for 68%. The 12 northern provinces is 8.74 million units, which is a huge challenge to vehicle logistics north-south capacity resource flow planning, idle rate is unavoidable, the cost of empty driving increased.

Non-compliant capacity not only poses safety hazards, but also leads to an inefficient use of funds. Consider this: the car carrier trailer can hold up to 27 cars, while there are a minimum of 17 or 18 cars. Just two days ago, I witnessed an OEM plant installing 29 cars of upper and lower two-tier plates at their entrance. This presents a significant challenge for our compliant logistics companies, and also highlights one of the biggest obstacles that the industry faces in driving high-quality development.

 

Ⅲ.

Changjiu Logistics advocates for the high-quality development of the sector through regulatory oversight, strategic planning, openness, and integration, fostering a positive competitive environment.

Given the current development challenges and industry issues, we are confident that collaborating on promoting high-quality development in the automotive industry can yield significant results.

Industry co-operation with the relevant departments to regulate the imperative: we have been advocating the relevant departments to eliminate non-compliant capacity, but also hope to establish an orderly and rational price guidance system for the industry, at present, we are in the whole resource acquisition in the use of “suicidal price cuts”, but it is really difficult to survive after the price cuts, this is a common pain point faced by all of us! This is a common pain point that we all face, which is also the significance of today’s discussion and call for high-quality development with all colleagues.

Rational planning to achieve reasonable cost reduction and efficiency: rational planning is to control costs by constantly seeking more reasonable logistics solutions to achieve the optimal solution for the vehicle logistics business of the host plant. At the same time, it is also necessary to strictly implement the vehicle logistics supplier access standards to ensure that the supplier’s service capacity, service quality and legal compliance. We call on automotive vehicle logistics industry colleagues to rationally control costs, through the overall comprehensive consideration of the development of the appropriate pricing mechanism. Nowadays, customers pay more and more attention to the timeliness of logistics, especially the delivery centre of the new car-making forces, whose requirements for timeliness are basically “T+0, T+1”, which almost does not give the vehicle logistics enterprises to set aside resources for the loading time, so that the vehicle logistics enterprises in the transport process of timeliness management and cost control there is a certain contradiction. Traditional vehicle logistics enterprises need reasonable resource allocation time and route planning to achieve cost reduction and efficiency, so this is a common challenge faced by enterprises in the industry.

Open integration, co-creation and coexistence: I hope that all peers in the industry can open their arms to share resources and information, break down barriers in the industry, and realise complementary advantages and co-creation and coexistence in the direction of co-operation, integration and multimodal transport. Call on us to rationally compete in the market, resolutely put an end to the low price competition and non-compliance competition, and jointly maintain the healthy development of the industry.

 

Ⅴ.

Changjiu Logistics adheres to the development concepts of openness, integration and sharing, and is willing to promote the high-quality development of the automotive logistics industry together with its peers.

Changjiu Logistics is willing to open up and share with the industry with its own resources and capabilities accumulated over 31 years of development. At present, we provide logistics and industry chain services with three business divisions to jointly achieve synergistic development of the industry. We are committed to providing the whole industry chain services for China’s automotive industry, focusing on logistics + new energy field to create a comprehensive ecological closed loop.
The finished vehicle division focuses on trunk logistics, multimodal transport, social vehicles, warehousing services, etc.. The international business includes international railway, international sea transport, international air transport, customs declaration, customs clearance and value-added services. The new energy business focuses on energy storage, battery recycling, new energy logistics, etc., helping host factories to complete carbon emission reduction.

Finished Vehicle Business: Efficient Operation, Sharing, and Building Industry Standards: There are 18 companies in the country to effectively support the annual road shipment of 3 million units or more, with 60+ car brands in cooperation, covering 80% of the country’s car brands. In the whole process of complying with the development of the capacity, Changjiu still retains 2,000+ compliant transport vehicles and has made its own responsibility and obligation for the industry’s compliance. In terms of water transport, Changjiu Logistics owns a number of ro-ro ships and has recently purchased a 7,000-vehicle ocean-going vessel from Norway, which will be formally launched on the entire ocean route on 4 December.

International Business: Moving forward and firmly developing on “One Belt, One Road” Actively responding to the national initiative, we have launched an international strategic layout, striving to become a forerunner in automotive supply chain services for global automotive brands. In maritime transport, we have two ocean-going ro-ro vessels and maintain close cooperation with shipping companies; in railway transport, we have profound resources and have reached cooperation with a number of ports. In terms of road transport, ADAMPOL Poland, a joint venture company, has a capacity of nearly 300 coupes. In terms of cross-border road transport resources, Changjiu is also the first to have passed the TIR qualification and has the ability to provide cross-border road transport resources.

New Energy Business: Ready to meet new challenges, new energy is our new market segment. In the energy storage business, we have mature household storage products, occupy a certain market share in the South African market, and are actively expanding the “Belt and Road” countries and the domestic market. Industrial and commercial energy storage cabinets and 4S dealership optical storage, charging, checking, and discharging projects have also been promoted to the ground. We are also actively exploring many application scenarios, such as battery recycling and laddering, and building a closed loop of the whole industrial chain of battery recycling with the group’s recycling network of more than 80 self-owned and 20,000 cooperating 4S dealership stores. In April this year, the Group also made a joint venture with Dido in Guangdong Province to do overseas energy storage and follow up the development of our new energy business in the direction of overseas industrial and commercial energy storage. Meanwhile, Changjiu Logistics has extended its business on the basis of its advantages in vehicle logistics and made breakthroughs in the forward and reverse logistics projects of new energy power batteries and photovoltaic and wind power bulk logistics projects, thus perfecting the map of its logistics business.

“With the wisdom of the people, one can conquer any challenge, and by harnessing the power of the masses, no obstacle is insurmountable. Whether it pertains to the automotive industry or the field of automotive logistics, the progress and stability of these sectors rely on the shared comprehension of their development by all colleagues involved,Mr. Zhu Jingwei said. In our 31 years of growth, Changjiu Logistics has assumed the duty and commitment to collaborate with each and every one of you in upholding the principles of openness, integration, and sharing. Together, we will drive forward the advancement of the automotive logistics industry, ensuring its high-quality development.

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