We are a leading global integrated logistics service provider (i.e. logistics service provider that offers a full spectrum of domestic and international logistics services, including but not limited to, express delivery services, freight delivery services, cold chain logistics services, intra-city on-demand delivery services, supply chain services and international logistics services, and provide one-stop solutions to multinationals, large corporations, small and medium enterprises and retail customers), the largest player in China and Asia, and the fourth largest player globally, in terms of revenue in 2023, according to Frost & Sullivan. We are a Fortune Global 500 company with market leadership in five logistics sub-segments in China and four in Asia, offering a complete range of logistics services including express, freight, cold chain, intra-city on-demand, supply chain solutions and international logistics services.
We have a premium brand that is widely recognized for top-notch services (i.e. superior and leading service quality) and is a commonly used verb in Chinese, with “Let me SF this to you” having become synonymous with “Let me express mail this to you.” We were the only logistics company recognized as one of the Top Five Most Admired Chinese Companies by Fortune Magazine in 2024. As of June 30, 2024, we had an extensive global delivery network covering 202 countries and regions, supported by 99 aircraft and over 186,000 vehicles, the largest air and ground delivery fleet in Asia, according to Frost & Sullivan. We are also a technology-driven company with 4,199 patents and patent applications as of June 30, 2024, and we continuously leverage proprietary technologies to deliver innovative solutions and execution excellence. We had approximately 2.2 million customers with active credit accounts and approximately 699 million retail customers as of June 30, 2024, both of which were the highest among all logistics service providers in Asia, according to Frost & Sullivan.
Our business model has three key attributes: direct operations, integrated capabilities, and third-party independence. First, we directly operate the entire end-to-end delivery process from first-mile pickup to last-mile delivery. This enables strong operational control, high network visibility and agile resource allocation to support industry-leading speed, cost and reliability.
Second, our integrated capabilities enable us to offer a full-spectrum of services, standardized or customized, to address a full range of customers’ logistics needs, capture greater wallet share, and achieve above-industry growth. Third, we are the only integrated logistics service provider of scale in China that is independent of major e-commerce platforms*, allowing us to serve our customer base impartially, capture new emerging opportunities, and build long-term sustainable relationships.
We have dedicated over three decades to building our logistics network and investing in logistics infrastructure, which has given us a unique position today in Asia as an industry- defining player. Our flagship product is time-definite express, in which we commanded a market share of 63.9% in China in 2023, according to Frost & Sullivan. Leveraging our time-definite capabilities, we employed a “1-to-n” growth strategy (our growth and expansion strategy that leverages our time-definite express delivery service as the bedrock to incubate new service offerings, enter adjacent logistics segments, and further complement our integrated capabilities) to enter into adjacent products and geographies in a strategic and cost-effective manner. Following this strategy, our capabilities and product offerings are becoming increasingly comprehensive and sophisticated each day, expanding from time-definite to economy express, from small light-weight items to large heavy parcels, from standard delivery to specialized services with temperature or humidity precision, from China to Asia and then to the world. Today, most of our service offerings have reached scale and market leadership, achieved profitability, and are poised for growth.
As a leading global integrated logistics service provider, we have always had a vision to become the leader in global logistics, expanding our reach in our home market Asia and broadening our presence globally. Global logistics represents an enormous market opportunity, with an estimated US$11.1 trillion spent on logistics in 2023, of which Asia is the largest regional market accounting for US$5.1 trillion in logistics spend in 2023, according to Frost & Sullivan. The logistics industry is going through several paradigm shifts which presents us with multiple opportunities. As the logistics needs of businesses become increasingly complex and diverse, customer demand is shifting towards logistics players that provide a full spectrum of service offerings, high-quality services and global reach. In our home market of Asia, the logistics industry as a whole and most of its sub-sectors remains highly fragmented. As single-market single-product players become increasingly disadvantaged due to lack of capabilities, strategic consolidation opportunities continue to emerge for leading integrated players. We started our international business in 2010, primarily serving Chinese customers’ outbound logistics needs. Today, as Chinese enterprises expand globally, the international supply chain has significant opportunities for transformation. In 2021, our acquisition of Kerry Logistics further strengthened our domestic and cross-border express operations in Southeast Asia, international supply chain and freight forwarding capabilities. Successful integration of Kerry Logistics into our existing international operations further solidified our global integrated logistics capabilities and customer base, empowering our global expansion strategy and vision. In 2023, we had the largest international operations among all Asia-based integrated logistics service providers in terms of international revenue, according to Frost & Sullivan. Together with the commencement of operations of the logistics complex in the Ezhou cargo hub, we believe we are able to consolidate the market and capture opportunities both domestically and internationally, with our extensive product portfolio, integrated global capabilities, experience in merger and acquisitions, operational excellence and strong cost discipline. We are well-positioned to capture a greater proportion of future logistics demand due to our years of prior investment and the capabilities we have built, which cannot be easily replicated.
Looking ahead, we aim to become the leader in global logistics and connect Asia with the world. We will reinforce our market leadership in China, expand our reach in Asia, and broaden our presence globally. In Asia, we will replicate our success in China and expand in selected high-growth markets. In markets outside of Asia, we aim to achieve high-quality growth by leveraging our highly recognized brand, leadership in cost efficiency and integrated capabilities to provide one-stop services. We strive to become the go-to-logistics partner of businesses and individuals worldwide, offering market-leading logistics services that empower their success.
Source: S.F. Holding (06936) Prospectus (IPO Date : 2024/11/19) |