The Company operates business as intermediary on rendering auction services of all types of property, including other auctioned-related services to facilitate the owner of the property and the bidder, for instance transportation service of auctioning properties, procurement of source of fund for the interested people who participated in auction, by coordinating with the financial institutes.
Property Auction Service
Most of the Company’s revenue derives from broker service fees from rendering property auction services. Such service or administration fees are mainly collected from the buyers (successful bidders) while service fees or commission will be charged with the property owners pursuant to the agreed conditions.
The important factors in doing broker business are transparency, fair practice and ability to respond to the utmost of the needs of the two parties involved: buyers and property owners, whose needs are different as follows:
Buyers : demand a variety of type and quantity of properties to meet their desire and budget.
Property owners : want to sell their properties at the highest prices and choose a broker company that can attract a lot of bidders in order to get the high potential of successful sales. The high competition can influence the property price.
Given the different needs above, the Company must focus on acquiring a great variety type and quantity of properties in order to attract more bidders which will increase the success rate of the auction and the fair price competition. The Company emphasizes in delivering speedy and excellent quality services to buyers and property owners to guarantee customer’s ultimate satisfaction.
Properties for auction by the Company can be classified into three major groups:
1) Automobiles
The company provides auction service for every type, make and model of automobile in all conditions: drivable, undrivable or ruins from accident. There are 2 groups of automobile owners.
- Juristic entities Including financial institutions and leasing companies with seized automobiles from the auto financing services, car rental companies with vehicles that have reached the end of their economic useful life, and general companies with executive cars or company cars for employees, cars for goods transportation including vehicles in a group of personal loan with vehicle registration manual as collateral.
- Individuals Including house holding car owners and used car traders (garages) wishing to dispose of their cars for a stock turnover.
2) Motorcycles
The Company has motorcycle auction service accounts for 5 - 10% of total revenues. The Company provides auction service in every type, make and model of motorcycles. Most property owners are financial institutions with seized motorcycles from their motorcycles financing services and vehicles in a group of personal loan with vehicle registration manual as collateral.
3) Other types of property
Other types of property auction by customer’s request, the purpose of these additional services is to create corporate’s image to comply with the term Union Auction which means a variety of property to be auctioned. The purpose is also to expand the bidder customer base to create business opportunity growth in the future.