Business summary
Wanli International provides logistics services in Hong Kong to customers located in Hong Kong, Taiwan and mainland China with cargo destinations including the United States, Europe and other regions. The services mainly include (1) providing freight forwarding and related logistics services by purchasing cargo space through the airline's chief sales agent, shipping companies and other freight forwarders, then selling the cargo space to the direct shipper or their respective freight forwarders acting on behalf of their shipper customers, and finally delivering the cargo to the destination; and (2) providing storage and related value-added services (including labeling services and packaging services). The group makes a profit and maintains gross profit margins by purchasing freight seats at competitive prices from suppliers; consolidating seats; pooling with other freight forwarders; and selling cargo seats to customers on a cost bonus basis.
Competitive advantage
Senior management and staff have rich experience and have established a diverse customer base
The logistics industry is in high demand for services, and the quality and reliability of the group has established a good reputation in the industry
Maintain close and ongoing business relationships with suppliers
Risk Factors
The group is unable to guarantee the acquisition of a precise number of freight positions to meet customer needs
Relying too much on key management personnel, if they leave their jobs, in addition to losing customers and professional knowledge, they are more likely to become competitors to the group
Relying on business partners including airline chief sales agents, shipping companies, other freight forwarders, and local delivery service providers cannot guarantee service quality
Use of proceeds
Approximately 33.8% are used as expanded warehouses
Approximately 36.9% is used to attract and retain talented and experienced personnel
Approximately 20.0% will be used for the Grand Group Car Team
Approximately 6.1% is used to strengthen information technology systems
Approximately 3.2% is used as general working capital