Warehousing Service includes the storage of spot goods and delivery of futures. Stocked goods mainly include metal products such as aluminum ingot, zinc ingot, electrolytic copper, electrolytic nickel, etc. The Company currently possesses warehouses covering 59,052 m², a stock capacity up to 80,000 tons and three dedicated railway lines, providing an integrated service of goods unloading in dedicated railway lines, check and acceptance of delivery, goods receiving and allocation, and goods dispatching under instruction. With top-ranking large working equipment and information terminals, goods receiving and dispatching is processed in modernized and informatized inner management method. With rapid development of warehousing management services, the Company achieves a throughput up to 2.5 million tons per year, ranking top in the sector.

Futures Delivery refers to the process of offsetting any open position through transferring ownership of commodities indicated in any futures agreement by both trading parties on expiration of the futures agreement. Nanchu can act as an agent with full power to handle this delivery business from cargo receiving to preparation of standard warehouse receipts for clients.

The bonded warehousing service provided by Nanchu includes the storage, customs transit, retail or integrated customs declaration and inspection, etc., which effectively accelerate capital turnover of the Company and save financial fees for customers. Integration of bonded warehousing service, warehousing service, transportation and futures delivery improves the flexibility of business operation.

Warehousing financing refers to the activity where a borrower stores goods (raw materials, finished goods or semi finished articles) in the warehouse of a warehousing company and obtains loans from any bank with the warehouse receipt issued by the warehousing company or the inventory as the mortgage object, which is supervised by the warehousing company during the mortgage period. The liability for compensating any shortage, damage or loss incurred to the mortgage object will also be assumed by the warehousing company.

Nanchu is the first to provide warehousing financing service in China, which, through the cooperation with the banks and the enterprises, has successfully solved the problem of shortage of current capital and difficulty in financing among enterprises, particularly small and medium enterprises, and created a win-win-win situation. Warehousing financing business can be divided into warehousing receipt financing and personalty financing in the form of either storage supervision or transportation supervision. At present, products that can be mortgaged for warehousing financing include nonferrous metal, ferrous metal, chemical products, petrochemical, mineral product, and farm produce, etc. As of the end of 2006, there were total 13 domestic and foreign banks and more than 300 enterprises cooperating with Nanchu, with mortgaged properties of RMB 16 billion in value under its surveillance.

Nanchu cooperates with transportation agents in all major domestic ports. Depending on a vast business network, we can provide safe, quick and integrated logistics services for clients. .

By concluding successful experience, Nanchu has gradually developed a characteristic warehousing management system – Nanchu Warehousing Managemnet Model based on a perfect management system guaranteed by highly qualified employees, with well-developed management network as the core and advanced logistics technology as the impetus. Nanchu provides warehousing management service integrating cargo unloading, sorting, tally, storing, transportation, checking and information management for enterprises engaged in industries such as electrical appliances, Construction Ceramics, fuel gas, ferrous and nonferrous metal, etc. Excellent warehousing management service by Nanchu can effectively improve clients’ operation efficiency, allowing them focus efforts on their major business.

Depending on its own strength and website, Nanchu traces and researches the market of nonferrous and ferrous metal in Guangdong area, and provides free integrated information such as daily quotation, review and market analysis, etc., giving trading companies and manufacturers access to reliable first-hand information. The quotation provided by Nanchu has become major reference prices to trading companies and manufacturers. At present, about 1,800 registered clients nationwide and several information and futures companies reprint the quotation.

The Company adopts an advanced information system software ---“Logistics Star”, which consist of four parts: warehousing management subsystem, financing management subsystem, office automation subsystem and system management. This system conducts process management by means of IC card to improve in-company operation efficiency, basically realizing Paperless Office and providing convenient functional services such as information inquiry for enterprises and banks to accelerate information and logistics turnover.