Recently, MSCI Overseas China Index disclosed the inclusion of YMM, effective after the market closes on November 30th.
Among the newly added Chinese concept stocks, Full Truck Alliance is the sole representative, contributing to enhanced international investor awareness, expected to drive more ETF positioning based on the MSCI index. According to statistics, Full Truck Alliance has been included in the four major indices: CSI, FTSE, S&P, and MSCI.
On November 20th, the digital freight platform, YMM released its third-quarter financial report for 2023 before the US stock market opened. The report revealed that Full Truck Alliance achieved record-breaking revenue and net profit in this quarter, with comprehensive growth across all business segments.
During the reporting period, Full Truck Alliance recorded operating revenue of RMB 2.26 billion, representing a year-on-year growth of 25.2%. Under non-US accounting standards, the net profit reached CNY 830 million, demonstrating a year-on-year increase of 67.6%. The corresponding net profit margin reached 36.5%, continuously improving from the previous two quarters, indicating strengthened monetization efficiency and capability.
Specifically, both major business segments of Full Truck Alliance achieved double-digit growth. The revenue from platform truck matching services amounted to CNY 1.90 billion, reflecting a year-on-year increase of 25.8%, while the revenue from value-added services reached CNY 360 million, with a year-on-year growth of 22.1%.
According to the financial report, Full Truck Alliance continued its stock repurchase plan in this quarter. Since announcing a USD 500 million repurchase plan in March, as of November 17th, the company has repurchased approximately 22.8 million ADS from the open market, valued at approximately USD 147 million. Full Truck Alliance stated that it would continue to use prudent repurchase measures to reward shareholders.
Steady Growth: User Base Reaches New Highs
In the third quarter, Full Truck Alliance's user base continued to expand, maintaining the steady growth observed in the first half of the year. During the reporting period, the average monthly active shippers reached 2.13 million, representing a year-on-year growth of 15.0%. The penetration rate of shipper users continued to increase, with 3.79 million active drivers fulfilling orders in the past 12 months, achieving historical highs for both dual-end active user numbers.
In a pre-market investor conference call, the management highlighted that the incremental growth in active monthly shipper users mainly came from high-quality direct customer shippers, indicating significant growth potential in the small and medium-sized direct customer market.
Optimized User Structure Drives Improved Order Quality
During the reporting period, the growth of direct customer shippers brought about a continuous optimization of the shipper-side user structure, contributing new momentum to the growth of platform order volume and the continuous improvement of order quality. From July to September, the platform's order fulfillment volume increased by 27.0% year-on-year, reaching 42.5 million orders, of which 45% were fulfilled by 688 member and non-member shipper users. At the same time, the overall fulfillment rate of the platform continued to rise, with the average fulfillment rate reaching 29% in the third quarter, a year-on-year increase of more than 4 percentage points. Among them, the quarterly average fulfillment rate for 688 members and non-members both reached 50%.
Targeting Incremental Markets of Millions of SMEs
From the user's perspective, it is estimated that logistics costs account for over 10% of enterprise sales costs. A reduction of logistics costs by a few percentage points can significantly increase company profits. The rapid growth of small and medium-sized direct customer shipper orders on the platform reflects the increasing focus of more small and medium-sized enterprises on logistics costs, efficiency, and service quality. Compared to seeking transportation capacity through intermediate links in the past, the digital freight platform provides many small and medium-sized enterprises with a more direct, efficient, and guaranteed matching service, thereby having broader development space.
According to market disclosure information for the third quarter, pre-IPO shareholders such as Sequoia, as well as well-known investment institutions Alkeon and Matthews, increased their holdings in Full Truck Alliance during this quarter. In addition, Invesco, a top international long-term institution, continued to increase its holdings after the previous quarter, with a current total position of approximately USD 170 million.