[年报]顺丰控股(002352):2023年年度报告（英文版）
原标题:顺丰控股:2023年年度报告（英文版） The Company s Board of Directors, Supervisory Committee, Directors, Supervisors, and Senior Officers guarantee the authenticity, accuracy, and completeness of the Annual Report, without any false records, misleading statements, or significant missions, and shall bear individual and joint legal responsibilities. Wang Wei, the Company’s legal representative, Ho Chit, Chief Financial Officer (the person in charge of finance), and Hu Xiaofei, the accounting director, hereby declare that they guarantee the authenticity, accuracy, and completeness of the financial report in this Annual Report. All directors have attended the Board meeting to review this Annual Report.Forward-looking statements such as future development plans contained herein do not constitute any undertaking made by the Company to investors. Investors are advised to invest rationally and to take into account possible investment risks.The Company is required to comply with the disclosure requirements about express delivery service industries presented in the Self-Regulatory Guidelines for Companies Listed on the Shenzhen Stock Exchange No. 3 – Industrial Information Disclosure.In this Annual Report, the Company details the risk factors and countermeasures that may occur in the future. For more information, refer to “Company risks and countermeasures” in “Section XIII. Prospects of the Company” of “Chapter 3. Management Discussion and Analysis”. Investors shall refer to this information.’ The Companys profit distribution plan reviewed and approved by the Board of Directors is as follows: based on the total share capital at the registration date on which the 2023 annual profit distribution plan is to be implemented, less the shares in special repurchase securities account, a cash dividend of RMB6.0 (including tax) will be distributed for every 10 shares. There will be no bonus shares or conversion of equity reserve into share capital of the Company. This report is prepared in both Chinese and English versions. If there is any ambiguity in understanding the report, the Chinese version shall prevail.Table of Contents Chapter 1 Important Information, Table of Contents and Definitions .. 002Chapter 2 Company Profile and Key Financial Indicators............ 006Chapter 3 Management Discussion and Analysis ................. 016Chapter 4 Corporate Governance ............................ 087Chapter 5 Environment and Social Responsibilities ................ 110Chapter 6 Significant Events ................................ 114Chapter 7 Share Changes and Shareholder Details................ 130Chapter 8 Preferred Shares ................................. 137Chapter 9 Bonds......................................... 138Chapter 10 Financial Statements ............................. 139List of Documents Available for Inspection (1) Financial statements signed and sealed by the legal representative, Chief Financial Officer and the accounting director of the Company. (2) The original copy of audit report containing the seal of the accounting firm and the signature and seal of the certified public accountant. (3) The original copies of all documents and announcements of the Company which have been publicly disclosed in newspapers designated by the China Securities Regulatory Commission during the Reporting Period. (4) The original text of the 2023 annual report signed by the chairman of the Board of Directors.’ (5) The place where the above documents are maintained: the office of the Company s Board of Directors. Definitions Term Description Reporting period January 1, 2023 to December 31, 2023 The same period of previous January 1, 2022 to December 31, 2022 year The Company, the listed S.F. Holding Co., Ltd. Company, SF Holding, SF RMB Renminbi Ma’anshan Dingtai Rare Earth and New Materials Co., Ltd., the predecessor of S.F. Holding Co., Ltd., Dingtai New Materials was renamed to S.F. Holding Co., Ltd. in February 2017. Taisen Holding Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a wholly-owned subsidiary of S.F. Holding Co., Ltd.. In December 2016, all assets and liabilities (exchange-out assets) of the Company’s predecessor, Dingtai New Materials, were replaced with the equivalent 100% equity (exchange-in assets) of Taisen Holding held by all shareholders of Taisen Holding as of December 31, 2015, the valuation benchmark Major asset restructuring date. The difference between the exchange-in assets and the exchange-out assets was purchased by Dingtai New Materials, the Company’s predecessor, from all shareholders of Taisen Holding, in the form of issuing shares. Mingde Holding Shenzhen Mingde Holding Development Co., Ltd., the controlling shareholder of S.F. Holding Co., Ltd. Kerry Logistics Network Limited, a company listed on the Main Board of the Stock Exchange of Hong Kerry Logistics Kong Limited (00636.HK), is a holding subsidiary of S.F. Holdings Co., Ltd.SF INTRA-CITY, Intra-city Hangzhou SF Intra-city Industrial Co., Ltd., a company listed on the Main Board of the Stock Exchange Industrial of Hong Kong Limited (09699.HK) is a holding subsidiary of S.F. Holdings Co., Ltd.SF Real Estate Investment Trust, listed on the Main Board of the Stock Exchange of Hong Kong Limited SF REIT (02191.HK), is an associate of S.F. Holding Co., Ltd. CSRC China Securities Regulatory Commission SZSE Shenzhen Stock Exchange HK Stock Exchange The Stock Exchange of Hong Kong Limited HK SFC The Securities and Futures Commission of Hong Kong I. Company Information Company Information Stock Abbreviation SF Holding Stock Code 002352 Stock Exchange Shenzhen Stock Exchange Chinese Name of the Company 順豐控股股份有限公司 Chinese Name Abbreviation of the 順豐控股 Company English Name of the Company S.F. Holding Co., Ltd. (If Any) English Name Abbreviation of the SF Holding Company (If Any) Legal Representative of the Company Wang Wei Registered address Room 101, Huaide Road No. 46, Huaide Community, Fuyong Street, Bao’an District, Shenzhen Zip Code of Registered Address 518103 In January 2018, the registered address of the Company was changed from "Dangtu Industrial Park, Ma’anshan City, Anhui Province" to "Room 801, Floor 8, Wanfu Building, No. 303, Fuyong Historical Changes of the Registered Avenue, Bao’an District, ShenzhenAddress of the Company In February 2023, the registered address of the Company was changed from "Room 801, 8/ F, Wanfu Building, No. 303 Fuyong Avenue, Baoan District, Shenzhen" to "Room 101, No. 46 Huaide South Road, Huaide Community, Fuyong Street, Baoan District, Shenzhen"Block B, TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Office Address Guangdong Province, China Zip Code of Office Address 518057 Company Website www.sf-express.com Email [email protected] Contacts and Contact Methods Board Secretary Securities Affairs Representative Name Ling Gan Jing Zeng Block B, TK Chuangzhi Tiandi Building, Keji South Block B, TK Chuangzhi Tiandi Building, Keji South Address 1st Road, Nanshan District, Shenzhen, Guangdong 1st Road, Nanshan District, Shenzhen, Guangdong Province, China Province, China Tel No. 0755-36395338 0755-36395338 Fax 0755-36646688 0755-36646688 Email [email protected] [email protected] Information Disclosure and Location of Annual Report Stock Exchange Website for the Annual Report Shenzhen Stock Exchange Disclosed by the Company Name and Website of Media for the Securities Times, Shanghai Securities News, China Securities Journal, Securities Annual Report Disclosed by the Company Daily and CNINFO (www.cninfo.com.cn)Place Where the Annual Report is Available Office of the Board for Inspection Registration Changes Organization Code 91340500150660397M Changes in Main Business Since Listing of There was no change during the Reporting Period. the Company (If any) Historical Changes in Controlling Shareholders (If any) There was no change during the Reporting Period. Other Relevant Information Accounting firm engaged by the Company Accounting Firm Name PriceWaterhouseCoopers Zhongtian LLP. Floor 11, PricewaterhouseCoopers Center, Tower 2 of Link Reit Corporate Plaza, Office Address of the Accounting Firm No. 202, Hubin Road, Huangpu District, Shanghai, China Signing Accountants' Names Lin Chongyun, Liu Yufeng Sponsor institution engaged by the Company to perform continuous supervision duties during the Reporting Period □ Applicable?√ Not applicable Financial adviser engaged by the Company to perform continuous supervision duties during the Reporting Period □ Applicable?√ Not applicable “ SF Holding is the largest integrated logistics service provider 1 ” in China and Asia, and the fourth largest in the world. With the logistics ecosystem as a focal point, the Company has continually developed its portfolio of product and service capabilities, and has expanded to cover time-definite express, economy express, freight, cold chain and pharmaceuticals logistics, intra-city on-demand delivery, international express, international freight and freight forwarding, and supply chain, to provide customers with domestic and international end-to-end one-stop supply chain services. Meanwhile, through leveraging leading technology and research and development capabilities, the Company strives to create a digital supply chain ecosystem, and become a front runner in global intelligent supply chain. With the aim of sustainable and healthy development through visionary and forward-looking strategic planning, for the past 31 years, the Company has accurately seized opportunities to expand its scale, maintain industry leadership, and has become the leading logistics company in China and Asia. The Company was ranked 377th on the Fortune Global 500. The Company's flagship product, time-definite express, has dominant market leadership in China, and through leveraging the network resources and capabilities for its time-definite express, the Company has rapidly and efficiently expanded into new logistics service sub-segments, covering from small parcels to bulk and heavy cargoes, from standardized express delivery to customized supply chain 1 services, and from China to Asia and further to the world. The Company is the market leader in China across 2 five logistics sub-segments including express, freight, cold chain, intra-city on-demand delivery and supply 3 1 chain , and the market leader in Asia across four logistics sub-segments including express, freight, intra-city 2 4 on-demand delivery and international business in Asia. Looking ahead, the Company is committed to becoming the leading global logistics company connecting Asia and the world. The Company will solidify its market leadership in China and continue to expand its presence in Asia and globally; rapidly replicate its proven domestic know-how to overseas networks, and expand globally by leveraging its well-recognized brand, leading cost advantages and integrated logistics service capabilities to drive the sustainable and healthy growth of the Company, so as to become the go-to logistics partner of global business customers and retail customers to foster shared-growth and co-create enduring value. 1 Extensive Scale Undisputed Leadership Premium Brand Largest in Asia No. 1 in Asia No. 1 2 Express, LTL Freight, Intra-city On-demand , Customer satisfaction for express 3 International services in China 4th Largest Globally No. 1 in China 1 Integrated logistics service provider Express, LTL Freight, Cold Chain, Intra-city 14 years in a row 2 4 On-demand , Supply Chain 1 According to Frost & Sullivan Report, in terms of revenue in 20222 Among third-party intra-city on-demand delivery service providersBusiness Segments Business Segments
Results Overview for 2023 Revenue Total assets II. Key Operating and Financial Data Results Overview for 2023 Revenue Total assets Notes: 1. Net pro?t attributable to the parent company refers to net pro?t attributable to shareholders of the listed company 2. Net pro?t attributable to the parent company after deducting non-recurring pro?t or loss refers to the net pro?t attributable to shareholders of the listed company after deducting non-recurring pro?t or loss 3. Net assets attributable to the parent company refers to net assets attributable to shareholders of the listed company 1 Total Volume Total Revenue 1 Total Volume Total Revenue 0 2021 2022 2023 2021 2022 2023 Revenue from Revenue from supply chain Revenue from other 1 Neither include the express volume of Kerry Logistics, nor include the express logistics business and international business non-logistics businessbusiness volume of international freight forwarding and supply chain1 This is the year-on-year growth rate of revenue from express logistics business. 2 Excluding Fengwang business, the volume of parcels increased Excluding Fengwang business, the revenue increased by 11.3% year-on-yearby 16.2% year-on-year Revenue Breakdown by Segment 2.0% 2.8% 23.2% Time-de?nite Express Economy Express 32.8% Freight 39.5% 44.7% 2022 2023 Pharmaceutical Logistics 2.8% Intra-city On-demand Delivery 4.0% Supply Chain and 2.4% International Business 3.2% Other Non-logistics Business 12.8% 9.6% 10.4% 9.7% 2022 2023 Unit: RMB100 million
Time-de?nite Economy Express Freight Cold Chain and Intra-city Supply Chain and Other Non-logisticsExpress Pharmaceutical Logistics On-demand Delivery International Business BusinessGross pro?t EBITDA Gross pro?t EBITDA 0 2021 2022 2023 2021 2022 2023 Net pro?t attributable to the Quarterly net pro?t attributableparent company to the parent company Units：RMB100 million Units：RMB100 million Net pro?t attributable to the parent company Net pro?t attributable to the parent company of 2023 Quarter Quarter Quarter Quarter Assets Net cash ?ow Units：RMB100 million Units：RMB100 million 2022 2023 Major accounting data and financial indicators Changes in (RMB’000) 2023 2022 this year over the 2021 previous year Revenue 258,409,403 267,490,414 -3.39% 207,186,647 Cost of revenue 225,273,833 234,072,360 -3.76% 181,548,507 Gross profit 33,135,570 33,418,054 -0.85% 25,638,140 Net profit attributable to shareholders 8,234,493 6,173,764 33.38% 4,269,098 of the parent company Net profit attributable to shareholders of the parent company after deducting 7,133,730 5,336,924 33.67% 1,834,199non-recurring profit or loss Net cash flow generated from 26,569,819 32,702,947 -18.75% 15,357,605 operating activities Note: The Company does not need to retrospectively adjust or restate the accounting data of previous years; the lowest annual net profit before and after the deduction of non-recurring profit or loss in the most recent three fiscal years is positive, and the audit report of the most recent year ’ shows that there is no uncertainty as to the Company s ability to continue as a going concern.Changes at this year- end as compared (RMB’000) End of 2023 End of 2022 End of 2021 with the end of the previous year Total assets 221,490,655 216,842,707 2.14% 209,899,982 Total liabilities 118,206,995 118,556,658 -0.29% 111,984,735Net assets 103,283,660 98,286,049 5.08% 97,915,247 Net assets attributable to shareholders 92,790,344 86,263,741 7.57% 82,943,226 of the parent company A decrease by 1.30 Gearing ratio (%) 53.37% 54.67% 53.35% percentage points Changes in (RMB) 2023 2022 this year over the 2021 previous year Basic earnings per share 1.70 1.27 33.86% 0.93 Diluted earnings per share 1.70 1.27 33.86% 0.93 Weighted average return on net assets An increase by 1.85 9.19% 7.34% 6.81% (%) percentage points Major financial data by quarter (RMB’000) First quarter Second quarter Third quarter Fourth quarter Revenue 61,048,078 63,317,520 64,646,001 69,397,804 Cost of revenue 52,588,410 54,966,870 56,903,738 60,814,815 Gross profit 8,459,668 8,350,650 7,742,263 8,582,989 Net profit attributable to shareholders of the 1,720,058 2,456,224 2,088,176 1,970,035 parent company Net profit attributable to shareholders of the parent company after deducting non-recurring 1,517,130 2,188,179 1,840,603 1,587,818profit or loss Net cash flow generated from operating 4,305,202 9,519,625 7,151,267 5,593,725 activities There is no difference between the above-mentioned financial indicators or their total amount and the relevant financial indicators in the quarterly and interim reports disclosed by the Company. Major financial data of operating segments External income (RMB’000) 2023 2022 Year-on-year change Express and freight delivery segment 186,890,137 169,764,860 10.09%Intra-city on-demand delivery segment 7,371,250 6,567,057 12.25%Supply chain and international segment 62,859,302 89,916,599 -30.09%Undistributed units 1,288,714 1,241,898 3.77% Total 258,409,403 267,490,414 -3.39% Net profit (RMB’000) 2023 2022 Year-on-year change Express and freight delivery segment 8,452,862 5,466,724 54.62%Intra-city on-demand delivery segment 50,595 -286,903 117.63%Supply chain and international segment -534,501 1,945,862 -127.47%Undistributed units -86,037 -122,737 29.90% Inter-segment elimination 28,690 674 4156.68% Total 7,911,609 7,003,620 12.96% Note: (1) As the Company promoted business integration and adjusted its internal organisational structure accordingly, it adjusted the composition of its operating segments based on the changes in its business, and merged the former express segment and the freight segment into the express and freight delivery segment, and restated the figures for the same period of previous year.(2) The corresponding relationship between the operating segments and the Company's principal business segments was: the express and freight delivery segment mainly includes time-definite express, economic express, freight, cold chain and pharmaceutical logistics, and other non-logistics business running by this segment; the intra-city on-demand delivery segment mainly includes intra-city on-demand delivery and other non-logistics Non-recurring profit or loss items and amounts (RMB’000) 2023 2022 2021 Description Please refer to Note 5(2) of Investment income from disposal of subsidiaries 268,204 32,314 1,808,638 Chapter 10 Financial Statements for details. Non-current asset disposal gains and losses (including the 46,668 374,595 105,502 write-off part of the provision for impairment of assets) Government subsidies included in the current profit and loss It mainly represents tax refund, (except for government subsidies that are closely related to the fiscal subsidies for the logistics Company’s normal business operations, in line with national 1,094,790 826,447 857,458industry, transport capacity policies and in accordance with defined criteria, and that have subsidy, etc. a sustained impact on the Company's profit or loss) Gain arises when the investment cost of an enterprise to obtain subsidiaries, associates and joint ventures is less than – – 2,375 the fair value of the investee’s identifiable net assets when it obtains the investment Except for the effective hedging business related to the Company’s normal business operations, the profit or loss arising from changes in the fair value of financial assets and 45,515 47,500 151,606 liabilities held by non-financial corporations, as well as profit or loss arising from the disposal of financial assets and financial liabilities Reversal of provisions for impairment of receivables that have 61,608 94,297 46,264 been separately tested for impairment Other non-operating income and expenses other than the 18,213 -73,330 -136,453 above Less: Income tax impact 276,330 235,481 381,549 Impact on minority shareholders' equity (after tax) 157,905 229,502 18,942Total 1,100,763 836,840 2,434,899 Note: The Company does not have other profit and loss items that meet the definition of non-recurring profit or loss; the Company does not define the non-recurring profit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public Non-Recurring Profit or Loss as recurring profit or loss.Differences in accounting data under domestic and foreign accounting standards1. Difference in the net profit and net assets in the financial reports disclosed in accordance with the International Accounting Standards and the Chinese Accounting Standards. □ Applicable?√ Not applicable 2. Difference in the net profit and net assets in the financial reports disclosed in accordance with overseas accounting standards and the Chinese Accounting Standards. □ Applicable?√ Not applicable 3. Explanation of reasons for differences in accounting data between domestic and foreign accounting standards. □ Applicable?√ Not applicable I. Industry Review in 2023 import and export remained stable in general. According to I. Macro Environment and Industry the PRC General Administration of Customs, the total value of Growth China’s imports and exports in 2023 amounted to RMB41.8 trillion, increased by 0.2% over the previous year. The operation I) China’s macro-economy has rebounded, and of foreign trade was stable in general and showed a quarterly the revival of production and consumption improvement with structural highlights. The import and export of private enterprises has grown rapidly, with trade expanding with has driven the express and logistics industry diverse trading partners. China’s trade with economies involved into a favorable growth in the Belt and Road Initiative experienced better growth than the ’ In 2023, China s economy has achieved a rebound, with overall growth. Besides, the export of emerging industries such as manufacturing and consumption activities posting a recovery new energy and consumer goods including household appliances trend, supply chain operations returning to normal, and overall has expanded, reflecting the step from “Made in China” to macro-economic growth remaining solid throughout the year. “Created in China”. According to the data published by National Bureau of Statistics, Influenced by the global macro-economy and trade obstacles, the ’ Chinas GDP exceeded RMB126 trillion in 2023, representing overall demand for international logistics is slowing down to a an increase of 5.2% over the previous year, and China remains certain extent. Experiencing a decline from the historical peak in important and a stable force to the world economic growth. 2022 to 2019 levels, the price for international air and sea freight The total retail sales of consumer goods were RMB47.1 trillion, remained relatively stable during 2023. At the end of fourth representing an increase of 7.2% over the previous year. The quarter of 2023, the impact of unstable international relations online retail sales of physical goods were RMB13.0 trillion, on the transportation capacity supply led to routes shrinkage representing an increase of 8.4% over the previous year and and suspension, and the price for some of the sea freight routes contributing 31.9% to the total growth of consumer goods retail rapidly rebounded. Benefiting from the robust cross-border sales. ’ e-commerce during peak season, Chinas emerging e-commerce The consumption recovery and the steady demand for online platforms are vigorously exploring overseas markets, with shopping have led to continued growth in the domestic logistics increased demand for cross-border logistics and air transportation, and express industry. According to the data published by China driving the growth of international logistics and express services. Federation of Logistics & Purchasing, the average Logistics Furthermore, along with the in-depth trade cooperation between Prosperity Index of 2023 was 51.8%, increased by 3.2% over China and ASEAN, RCEP (Regional Comprehensive Economic the previous year. The total cost of social logistics in 2023 Partnership) member countries and countries involved in the Belt was RMB18.2 trillion, representing an increase of 2.2% over and Road Initiative, the industrial and supply chain were deeply the previous year and accounting for 14.4 % of the GDP. The interconnected with a smoother customs clearance of goods, market size of logistics continued to expand, showing the unique spurring the development of international logistics and supply advantages and resilience of China as a supersize economy, chain in China and across Asia. among which the express market maintains the vitality and potential. According to the data published by the State Post II. Industry development and Bureau, 132.07 billion deliveries were made in China in 2023, competition landscape representing an increase of 19.4% over the previous year. In terms of parcel volume, China has ranked first in the world for ’ ten consecutive years. The revenue of Chinas express delivery Domestic Market business of 2023 was RMB1.2 trillion, representing an increase of 14.3% over the previous year. The Average Selling Price (ASP) I) The domestic logistics market is huge yet fragmented, slightly decreased over the previous year. with enormous room for leading companies to integrate and expand II) International trade albeit sluggish, China’s logistics industry is highly competitive yet fragmented. shows structural highlights, and emerging Apart from the comparatively concentrated express sector, the opportunities exist amidst the ups and downs industry concentration in other logistics sectors, including the LTL freight, cold chain logistics, integrated logistics and cross-border of the international logistics market logistics, was still low. The Matthew effect in the logistics industry In 2023, the global economy faced continued challenges, remained, with the strong getting stronger. According to the data persistent inflation in developed countries, and low global trade ’ service brands of 2023 was 84%. China s overall logistics market III) E-commerce experiencing ecological renewal, while is still fragmented, but it is also showing a trend of increasing independent third-party and integrated logistics become ’ concentration. According to the list of Chinas Top 50 logistics corresponding competitive advantages Enterprises for the Year 2023 (2023年度中国物流企业50强) The surge of emerging e-commerce platforms and the diversified published by China Federation of Logistics & Purchasing, the total traffic further derived a huge demand for independent third-party revenue of the top 50 logistics enterprises on the list increased by and integrated logistics services. Commercially, emerging 3% over the previous year, accounting for approximately 18% of e-commerce enterprises would favor cooperation with third-party the revenue of the entire logistics market. International logistics logistics enterprises without conflict of interest and independent giants all expanded their network coverage and business domains of any e-commerce platform or merchant. Meanwhile, as the through continuous mergers, acquisitions and integration. The logistics demand of merchants and platforms has become ’ size of China s logistics market has the potential to cultivate the increasingly complicated in terms of efficiency, products (e.g., ’ worlds leading logistics players and render enormous room for cold chain), flow (e.g., returned parcels) and geography (e.g., their potential future integration and expansion. cross-border), clients would prefer an integrated logistics service platform capable of in-depth cooperation, multi-channel, one-stop II) The rise of new consumption scenarios and business inventory management and delivery for better efficiency and models drives the transformation of “logistics as express” and lower management costs. As a result, independent third-party digital supply chain integrated logistics enterprises possess natural competitiveness The surge of emerging social, live e-commerce and local life to better seize the opportunities from the emerging social services, and the rapid growth of new economy industries and e-commerce and cross-border e-commerce. consumption scenarios contributed to the demand for a highly responsive and flexible supply chain, leading a notable trend of Overseas Market “ ” logistics as express . On the consumer end, express delivery services are penetrating into more daily life scenarios, with instant I) China’s cross-border e-commerce and enterprises step into response and efficient delivery service becoming a necessity for the international market, bringing overseas opportunities for e-commerce platforms and merchants to improve consumer domestic logistics service providers satisfaction and adhesiveness. On the production end, the C2M With the increasingly urgent demand for Made in China going (Customer to Manufacturer) model has been widely practiced overseas, the global logistics network and operation capability in the manufacturing industry, evolving from scale production play an important role to the internalization. China’s cross-border and distribution to JIT (Just in Time) instant production and e-commerce has flourished with potential further unleashed. channel-flattening. Production and supply have shifted to a small According to the data published by the National Bureau of scale with delivery in batches to the terminal, causing more Statistics, the import and export values of China’s cross-border end-to-end time-sensitive service demands for enterprises, such as e-commerce totalled RMB2.4 trillion in 2023, representing an fast fashion industry customers requiring finished products to be increase of 15.6% over the previous year. The total value of laid out from the factory to the nationwide within 12 hours.exports was RMB1.8 trillion, increased by 19.6% over the previous Along with business customers, the Company continuously year. In the long run, the improvement of the capacity and brand iterated and innovated the supply chain system design, integrated competitiveness of China’s industrial chains and the expansion the whole chain of production, channels, fulfillment and delivery of overseas e-commerce platforms and e-commerce websites in to achieve effective coverage of target users, digital perception the global consumer market will create a favorable environment of demand, rapid production, and accurate delivery; accordingly, and opportunities for China’s logistics enterprises to go abroad. logistics service providers shall proactively build integrated supply In recent years, China’s logistics enterprises have been expanding chain service capabilities adapting to the Omni-channel digital new routes for international freight, integrating sea, land, air, inventory management. Leading express companies have actively rail, and multimodal transportation resources, expediting overseas transformed to supply chain service providers, implemented digital access, continuously consummating the layout of overseas transformation in all aspects including internal network operations hubs, ground networks, and overseas warehouses, and further and external customer services, innovated digital application enhancing end-to-end cross-border services, thereby contributing scenarios, cultivated digital service capabilities, and continuously to the proliferation and expansion of China’s international promoted the application of intelligent, automated and visual logistics network. technical equipment, improving logistics service efficiency. In the long run, the time-sensitive nature of express delivery enterprises II) Global Supply Chain Renovated, with Vibrant Economic will penetrate into more production and life scenarios, gradually Development in the Asia-Pacific Area and a Huge and into the entire logistics market, and continuously innovate and Fast-Growing Potential Logistics Market iterate the application of logistics technology, promote the In the global logistics market of over USD10 trillion, logistics transformation and upgrade of the digital supply chain, and expenditure in Asia accounts for 45.4%. With Asia’s strategic realize cost reduction and efficiency. chain further enhanced, the introduction of trade agreements from production to sales, from home to abroad for clients. The including RCEP to support the rapid penetration of cross-border efficient and reliable logistics infrastructure network continuously ’ ’ and local e-commerce, trade within Asia and between Asia and built the Company s competitive barriers. The company s services ’ the world has been strengthened, driving the demand for logistics covered 100% of Chinas cities and 202 countries and regions and supply chains to expand and bringing more opportunities around the world, and it was the largest shipper of air cargo in for logistics enterprises rooted in Asia. According to Frost & China with the largest cargo aircraft fleet. As of the end of 2023, Sullivan, the total intra-Asia logistics expenditure of the major the company owned and leased a total of 103 all-cargo aircraft, trade lanes is expected to reach USD249.5 billion in 2023 and operating on 152 domestic and international routes, connecting （未完）  |