Milkyway Chemical Supply Chain Service Co., Ltd.: history, ownership, mission, how it works & makes money

From its founding in 1998 as a specialist in safe chemical logistics to reporting roughly ¥12.1 billion in revenue in 2025, Milkyway Chemical Supply Chain Service Co., Ltd. (stock code 603713 on the Shanghai Stock Exchange) has steadily broadened its footprint-diversifying into warehousing and inventory management in 2018, investing about ¥100 million in digital transformation in 2019, and expanding into Vietnam and Thailand by 2021 where international revenue reached ¥500 million; today the group operates over 30 warehouses across China and Southeast Asia, employs more than 1,500 staff, manages over 600,000 square meters of specialized chemical storage, and sits within a market-cap context of approximately ¥8.41 billion (July 2025) while its major Shanghai-based investment partnerships trimmed holdings by 1.57 million shares-reducing combined ownership from 48.03% to 47.04%-all of which frames how its one-stop service model (freight forwarding, warehousing, multimodal transport and value-added contract logistics) and growing chemical distribution business convert operational scale, international expansion and acquisitions into diversified revenue streams.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): Intro

• Founded in 1998 to provide safe, compliant and efficient chemical supply-chain services focused on storage, transport and hazardous-material handling.
• 2018: Diversified into value‑added services - warehousing, inventory management and packaging - driving incremental revenue streams and higher customer retention.
• 2019: Committed ~¥100 million to digital transformation, deploying advanced logistics and warehouse-management software to optimize routing, inventory accuracy and safety compliance.
• 2021: Expanded regionally with established operations in Vietnam and Thailand; international revenue reached ¥500 million that year.
• As of 2023: Operates 30+ warehouses across China and Southeast Asia and employs over 1,500 staff.
• 2025: Reported revenue of approximately ¥12.1 billion, reflecting scale in chemical logistics and integrated services.

• Listed entity: 603713.SS (A‑share listing).
• Shareholder mix: institutional investors, strategic industry partners and public float (typical Chinese logistics/chemical-service ownership composition; major strategic partners often include chemical producers and industrial distributors).
• Governance: Board oversight with specialized risk and HSE (Health, Safety, Environment) committees to manage hazardous-material liabilities and regulatory compliance.

• Mission: Ensure safe, compliant and efficient movement and storage of chemical products while minimizing environmental and operational risk.
• Strategic pillars: safety & compliance, digitalization, geographic expansion, and value‑added service integration (inventory finance, packaging, JIT delivery).

• Integrated logistics network: contract warehousing, transportation (road & intermodal), bulk and packaged handling, hazardous-material storage (temperature control, segregation), and on‑site services.
• Technology backbone: warehouse management system (WMS), transport management system (TMS) and digital tracking introduced post‑2019 investment to reduce dwell time and inventory variance.
• Compliance & safety: HSE procedures, licensing for hazardous goods, emergency response teams and routine audits to meet domestic and cross‑border regulatory requirements.
• Service segmentation: basic logistics (storage & freight), value‑added services (inventory management, repackaging, blending), and international trade facilitation for chemical producers and traders.

• Storage fees: per‑ton/month charges for hazardous and non‑hazardous chemical inventories stored in specialized warehouses.
• Transportation fees: route-based and distance‑based billing for bulk and packaged shipments, with premium pricing for hazardous-material lanes and expedited delivery.
• Value‑added services: inventory management, repackaging, blending, kitting, quality testing and on‑site technical support (higher margin than pure logistics).
• Cross‑border and international services: customs brokerage, trade compliance and regional distribution contracts (contributed ¥500 million international revenue in 2021).
• Technology & analytics: SaaS-style modules and data services to customers for inventory optimization and demand forecasting (post‑2019 digitalization enabled monetization opportunities).

• Specialization in hazardous‑materials logistics with strong HSE systems and regulatory track record.
• Integrated service set (logistics + value‑added services) that captures higher share of customer wallet.
• Regional footprint across China and Southeast Asia enabling multi‑modal and cross‑border flows.
• Digital platforms (WMS/TMS) that reduce costs, improve asset utilization and enable service monetization.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): History

• Listing: Shanghai Stock Exchange, ticker 603713.SS.
• Market capitalization (July 2025): approximately ¥8.41 billion.
• Shareholding change (July 2025): major shareholders - Shanghai Yanruo Investment Partnership, Shanghai Yanzhi Investment Partnership, Shanghai Yanhui Investment Partnership - collectively reduced holdings by 1.57 million shares, lowering combined ownership from 48.03% to 47.04%.

• Mix of institutional and individual investors providing a diversified shareholder base.
• Key institutional block holders influence strategic decisions (M&A, international expansion) while governance aims to balance stakeholder interests and ensure transparency.
• Governance mechanisms in place include board oversight, audit and risk committees, and regular disclosure consistent with SSE rules.

• Mission (strategy link): Mission Statement, Vision, & Core Values (2026) of Milkyway Chemical Supply Chain Service Co., Ltd.
• Core offering: end-to-end chemical supply chain services - bulk chemical storage, hazardous materials handling, specialized transportation, inventory management, and value-added logistics (packaging, blending, labeling).
• Service delivery: integrated network of terminals, transport fleet, proprietary safety/compliance systems and digital platforms for order and inventory visibility.

• Concentrated institutional holdings provide stability but changes (e.g., the July 2025 reduction) can signal rebalancing or liquidity needs among large shareholders.
• Ownership diversity allows management to pursue acquisitions and international expansion while meeting disclosure and governance demands of public markets.
• Board and governance practices are structured to align management incentives with shareholder interests, supporting accountability for capital allocation and operational safety.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): Ownership Structure

• Mission: Improve safety and efficiency across chemical and new-energy supply chains.
• Vision: Become a leading, trusted specialist in global chemical new-energy logistics.
• Core values: Customer-centricity, pursuit of excellence, and value creation.
• Social responsibility: Prioritizes employee health & safety and sustainable development.

• Integrated service model-combining storage, transportation, terminal operations, and chemical trading-to reduce handling risk and optimize flows.
• Safety systems-safety management, emergency response teams, and compliance programs tailored to hazardous materials.
• Technology & digitalization-warehouse management systems, tracking, and risk-control platforms to increase transparency and efficiency.
• Global supply chain specialization-partner networks and cross-border logistics for new-energy feedstocks and specialty chemicals.

• Logistics services: terminal operations, storage, road/rail/tank transportation charged by throughput, tonnage, or time.
• Trading and distribution: margins on chemical and new-energy commodities, procurement agency fees, and hedging/price-differential income.
• Value-added services: packaging, blending, risk management solutions, and safety consulting billed as service fees.
• Long-term contracts & capacity leasing: steady recurring income from leased terminals, tanks, and logistics capacity.

• Throughput volumes (tons handled) and terminal utilization rates.
• Safety KPIs: incident/accident frequency, lost-time injury rates, and emergency-drill completion rates.
• Revenue mix: percentage from logistics vs. trading vs. services to gauge margin stability.
• Contracted capacity and average contract length-indicators of recurring revenue.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): Mission and Values

• Comprehensive one-stop integrated logistics for chemical customers: freight forwarding, warehousing, and transportation as core offerings.
• Safety-first culture: specialized facilities, compliance with ADR/IMDG-equivalent domestic standards, and dedicated hazmat operational protocols.
• Customer focus: tailored contract logistics, reverse logistics and small-parcel solutions for diverse chemical-product flows.

• Specialized warehousing: Operates over 600,000 square meters of chemical-grade warehouse space nationwide for storage, segregated inventory, packing/unpacking, and temperature/ventilation controls.
• Domestic chemical transportation network: A dedicated road-transport and container network linking major chemical production and consumption hubs, designed for safe delivery of hazardous liquids, powders and packaged chemicals.
• Port & intermodal services: Provides port entry/exit services at multiple Chinese ports, and multimodal freight-forwarding (waterway, rail, air) to interconnect inland production bases with coastal export/import gateways.
• Value-added logistics: Offers contract logistics (including repackaging, blending and labeling), reverse logistics for returns/recalls, and small-parcel express services for fast-moving specialty chemicals and samples.

• Warehousing fees: storage, inventory management, handling and value-added operations (repacking, blending, inspection).
• Transportation margins: contracted road-haulage, containerized chemical transport, intermodal forwarding and port-handling fees.
• Freight forwarding & brokerage: arranging multimodal shipments and charging forwarding commissions and service fees.
• Contract logistics contracts: long-term integrated logistics agreements with chemical producers and distributors, often on multi-year terms.
• Ancillary services: customs clearance, bonded logistics, safety/compliance consulting, and reverse-logistics processing.

• Facility design and segregation standards for incompatible chemicals; specialized shelving, bunding and fire-control systems in warehouses.
• Operational SOPs for hazardous-material handling, driver and staff training, route planning and emergency response coordination.
• Regulatory interface: port customs handling, bonded operations and documentation support to reduce dwell-time and fines.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): How It Works

• Core logistics operations: freight forwarding (sea, air, rail), large-scale warehousing (bulk, packaged chemicals), and point-to-point transportation (tank trucks, ISO tank containers).
• Chemical distribution: sourcing, grading, repacking, and domestic/international trade facilitation for specialty and commodity chemicals.
• Value‑added services: inventory management, just-in-time delivery, packaging optimization, regulatory compliance support and hazardous-material handling.
• International network: regional hubs and partners across Southeast Asia to support cross-border trade, customs clearance and last‑mile distribution.
• Strategic partnerships & acquisitions: investments in specialized logistics firms and joint ventures to add capabilities (tank cleaning, hazardous goods handling, temperature-controlled logistics).

• Transaction fees and freight margins on domestic and international forwarding.
• Storage fees (by tonnage/volume and duration) and value-added service fees (inventory management, repackaging).
• Distribution margins and trading spreads from chemical procurement and resale.
• Long-term contracts and service-level agreements (SLAs) with large chemical manufacturers for stable recurring revenue.

• Freight rate markups and dynamic routing to capture margin on international shipments.
• Storage yield optimization via higher‑value inventory services (temperature control, segregated hazardous storage).
• Scale benefits from multi-client warehousing and pooled-transport to lower unit costs.
• Premium pricing for compliance-heavy services (dangerous goods, regulated export/import documentation).

• Utilization rates of warehousing capacity and tank/container fleets.
• Average freight yield per TEU/ton-improved by routing and consolidation strategies.
• Contract renewal rate and proportion of revenue from long-term SLAs.
• Contribution of international business-notably ¥500 million in 2021-diversifying revenue and mitigating domestic cyclicality.

• Acquisitions of niche logistics providers to add capabilities and customers.
• Partnerships in Southeast Asia to scale cross-border trade and penetrate regional chemical markets.
• Investment in digital systems for inventory visibility, order routing and billing efficiency to increase margins.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS): How It Makes Money

• Core logistics services: bulk liquid transport, hazardous chemical road/rail logistics, and containerized freight - pricing based on ton-km, route complexity and safety requirements.
• Storage & terminal services: long- and short-term tank and warehouse leases, tank cleaning, blending and repackaging - charged by capacity and service complexity.
• Value-added services: supply chain financing, customs & regulatory compliance, quality inspection, asset management and integrated digital freight management - subscription and transaction fees.
• Project & engineering services: design and operation of chemical logistics terminals and on-site logistics solutions for large industrial customers - project-based contracts.

• International expansion: Strategic entry into Southeast Asia and the U.S. has increased cross-border contract wins and diversified revenue sources; international operations now contribute an estimated 12-15% of group revenue.
• Digital transformation: Investment in a proprietary supply chain management platform and telematics improves vessel/vehicle utilization, route optimization and customer visibility, increasing EBITDA margins.
• Acquisitions & partnerships: Targeted M&A and JV arrangements (terminal operators, local trucking firms, tech providers) have expanded last-mile and storage capabilities and accelerated regional market share gains.
• Sustainability & ESG: Initiatives include low-emission vehicle adoption, terminal energy efficiency upgrades and stricter safety governance-measures that lower operating risk and align with customer ESG requirements.