SF Express Wins "HK Golden Bull Award" in Finance Oscars

Financial "Oscar"! SF Same-City Wins "Golden Bull Award for HK Stocks"

On October 24th, SF Same-City (stock code: 9699.HK) was honored with the "Golden Bull Award for HK Stocks" at the "2024 High-Quality Development Forum for Listed Companies and the 26th Golden Bull Awards Ceremony for Listed Companies," co-hosted by China Securities News and the People's Government of Nantong City.

The Golden Bull Award for listed companies, established by China Securities News since 1999, is one of the Golden Bull series of selection activities and is hailed by the industry as the "Oscar" in the financial field. The award aims to identify listed companies with excellent performance, outstanding governance, noble missions, and a strong sense of social responsibility in the previous year. It also aims to build the most authoritative, professional, and efficient exchange and brand display platform in China's capital market, and has become one of the most influential awards in China's capital market.

SF Same-City Wins

Golden Bull Award for HK Stocks

This year's Golden Bull Awards for listed companies include nine major awards, such as the Golden Bull Award for HK Stocks, the Most Investment Value Award, and the New Quality Enterprise Golden Bull Award. The Golden Bull Award for HK Stocks is one of the newly established awards last year. The selection for the Golden Bull Award for HK Stocks takes Hong Kong Stock Exchange China stocks listed companies as sample enterprises. This year, a total of 390 companies were shortlisted, with only 17 receiving this honor.

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SF Same-City is the largest independent third-party immediate distribution platform in China. Born from SF Group, SF Same-City has focused on the immediate distribution field since 2016, began independent corporate operations in 2019, and successfully went public on the main board of the Hong Kong Stock Exchange in December 2021, becoming the "first stock of third-party immediate distribution."

Since its establishment, SF Same-City has continuously improved its profit margin for six consecutive years, becoming the first in the immediate distribution industry to achieve full-year and annual profitability in 2023. According to SF Same-City's financial report for 2023, the company's annual revenue was 12.387 billion yuan, with a significant increase of 93.5% in gross profit year-on-year, and the gross profit margin rose for six consecutive years to 6.4%. The net profit was 64.9 million yuan, and the cash inflow from operating activities was 266 million yuan.

In the first half of 2024, SF Same-City once again delivered an impressive "report card," with a net profit for the half-year exceeding the full year of 2023, becoming a rare player in the immediate distribution industry that can continue to make money and demonstrating strong profitability. In terms of cash flow, during the reporting period, SF Same-City achieved an operating cash flow of 99.19 million yuan, a significant increase of 189% year-on-year, with cash reserves reaching 2.37 billion yuan, indicating ample funding reserves.

Looking at the business model, SF Same-City takes "full scenario" as its core, while deeply cultivating city distribution services for merchants (to B) and individuals (to C), as well as "last-mile" delivery services for traditional logistics acceleration, covering four new consumer scenarios: catering takeout, city retail, proximity e-commerce, and proximity services. As of the first half of 2024, SF Same-City's business covers more than 2,000 cities and counties nationwide, with a county coverage rate of over 60%, an annual active consumer base of 22 million, an active merchant base of 550,000, and an active rider base of 1 million.At the customer level, SF Express Same City, as an independent third-party on-demand delivery service provider, is not bound or restricted by any commercial flow platform, thus being able to flexibly undertake a massive volume of orders from various categories and channels. It connects upstream participants with the largest share, depth, and breadth in the industry.

Leveraging the trend of decentralized traffic, SF Express Same City can provide full-channel differentiated customized services for different scale customers such as chain brands, small and medium-sized merchants, and individual users. It actively grasps the trend of multipolar traffic and has launched in-depth cooperation with multiple traffic platforms such as Douyin, Alibaba, WeChat, and DiDi Express, maintaining the first market share in cooperation with key account (KA) top customers, benefiting the most from the dividends of the era.

In terms of business structure, based on the full-scenario logic, SF Express Same City continuously expands into more diverse scenarios beyond catering delivery, strengthening key service categories such as supermarkets, convenience stores, pharmaceuticals, and beauty products, to cultivate strong profit growth points with high demand and high value. In addition, SF Express Same City deeply penetrates into various traditional logistics segments with a flexible transportation network to speed up, forming a positive end-coordination with its parent company and other express companies through "last-mile delivery", while providing additional revenue and sharing costs.

As the scale continues to expand and the management scenarios increase, SF Express Same City has been committed to improving the "science and technology content" of on-demand delivery, based on the demands of "cost reduction and efficiency enhancement" and maintaining continuous profitability. In terms of software, it fully utilizes AI technology to effectively achieve the optimal matching of orders and couriers in different industries, scenarios, and complex delivery networks through the "CLS" (City Logistics System). In terms of hardware, it has implemented pilot and production of unmanned vehicle delivery in multiple cities, forming a "heaven, earth, and human" transportation ecosystem supported by "four-wheeled power" and "unmanned power".

Overall, SF Express Same City has built a solid "moat" in the on-demand delivery industry: a stable full-scenario matrix, a scarce third-party positioning that maximizes order capture, structural increments brought by intelligent technology iteration, policy support, and huge market space such as instant retail, all promote continuous breakthroughs in the "on-demand delivery" ceiling.

In July of this year, SF Express Same City officially entered the Hong Kong region with the "SoFast" brand, prompting the Hong Kong capital market to give it higher trust. In August, SF Express Same City was officially included in the Hang Seng Composite Index and four other Hang Seng series indexes, and in September, it was officially included in the Hong Kong Stock Connect targets, reflecting the capital market's recognition of its business performance and development prospects, which is conducive to further improving liquidity and valuation.