We are a leading domestic art finance service provider in China, with two business divisions providing art finance services: (i) art and asset pawn business; And (ii) art and asset auction business. Art investment and art financing are two major business categories in the art finance market.
We mainly engage in art pawn loan business (which is an important art financing channel in China) and art auction (which is a well-known art investment channel in China). Our headquarters is located in Yixing City, Jiangsu Province, which is the only place where the main raw material for producing purple clay artworks is purple clay. Yixing City is famous for producing purple sand art and is also a gathering place for several masters of purple sand art. We firmly believe that the following competitive advantages will enable us to firmly occupy a leading position in the art finance market and help our business development achieve sustainable growth in the near future. We have a stable market leading position in the art finance industry and have taken the lead in the art pawn loan and online auction markets.
We are a domestic art finance service provider in China, mainly providing art pawn loans and art auction services. In January 2013, we were awarded the AA level auction enterprise qualification by the China Auction Industry Association. We firmly believe that our deeply ingrained brand name and leading market position have aroused public interest and confidence in our services, and established a good reputation in the industry. This not only enhances customer loyalty to our services, but also helps to enhance our ability to collect more high-quality artworks, thereby attracting more potential bidders to participate in our art auctions. We are located in Yixing, Jiangsu and enjoy geographical advantages in the development of art related businesses. Our headquarters is located in Yixing City, Jiangsu Province, China. Jiangsu Province is one of the most developed provinces in China's economy. Yixing City is famous for its purple sand art and is also a gathering place for several famous purple sand art pieces and calligraphy and painting masters.
We establish good and stable relationships with art enthusiasts, including artists, agents, masters, experts, art dealers, collectors, art museums, and private museums, some of whom are located in Jiangsu or Yixing. They provide artworks as pawns to obtain our art pawn loans, as well as commission auctions or purchase high-value artworks at our art auctions. We have established a long-term market base in Yixing City and established good relationships with local art enthusiasts. Coupled with relatively abundant supply in neighboring areas, we greatly enhance our ability to collect high-value purple sand art and other artworks, which helps attract potential buyers to participate in our art auctions. In addition, due to the relatively localized nature of the pawn loan industry, with years of operation, we have accumulated profound local knowledge and established close cooperative relationships with existing and target customers in the local area. Locking in high-quality artworks as pawn loans, pawns, and art auctions will reduce our operational risks and improve profitability. Our art pawn loan and art auction business bring us synergistic benefits. We have been developing our business in the art finance industry since 2010 and are one of the few enterprises in China with the ability to establish a comprehensive business model. Through this model, we provide customers with a platform for trading and financing with art products. Our ability to provide comprehensive art services allows our brand to deeply penetrate the art market, concentrate resources on developing high-quality services related to art, and thus drive the success of our art business. This business model and the synergistic benefits generated by the mutual assistance of these two branches have benefited us, including the establishment of a professional appraisal and evaluation team. The professional ability and expertise in art appraisal and evaluation are the most important elements of art pawn loans and art auction businesses. After years of operation, some art enthusiasts are common customers of our two business segments, who are borrowers of our pawn loans, as well as sellers and/or buyers of our art auctions. Our storage facilities for loan pawns and art auctions are located at our headquarters and managed by ourselves. We have developed specific measures for storing, preserving, and retrieving artworks in the warehouse.
The synergies brought by our ability to provide comprehensive art and financial services increase operational efficiency, reduce overall operating costs, and benefit us from economies of scale. We have established effective risk management and internal monitoring systems. We have been establishing, maintaining, and continuously improving internal monitoring and risk management systems for our pawn loan and auction businesses. In terms of the art and asset pawn business, we have adopted and implemented a comprehensive set of specific measures, including every stage from receiving loan applications to repaying loans, especially adopting a prudent art pawn rate to reduce the risks we bear. In terms of our art and asset auction business, we also adopt multiple steps for screening, identifying, and evaluating auction products. We believe that our risk management and internal monitoring system is effective and efficient in reducing various risks involved in our business, therefore, we maintain a low level of loan impairment rate. We have an experienced and stable management team led by visionary founders. Our management team is composed of experienced industry experts who have led us to rapidly develop into a leading art and financial service provider in China in recent years. Our Chairman and Executive Director, Mr. Fan Zhijun, worked at a domestic bank before establishing our group, during which he accumulated over 15 years of practical experience in accounting, loan financing, and risk management. Mr. Fan Zhijun was born into an artistic family, and his uncle, Mr. Fan Baowen, was a master of Chinese landscape painting. This has enabled Mr. Fan Zhijun to accumulate years of interest and knowledge in the appraisal and evaluation of Chinese art. In addition, the cross industry experience and professional knowledge of management team members can complement each other's strengths and create maximum synergy for our two business segments. Given the nature of our art related business, we also establish long-term relationships with external experts to identify and evaluate artworks. Our senior management and experts have worked together to contribute to our development and growth as a professional art pawn loan service provider and art auction house in China.