In 2024, Chinese express logistics integrated service provider SF Holding Co., Ltd. (002352.SZ; 6936.HK) saw its revenue increase by 10% year-on-year to CNY 284.4 billion, and its net profit attributable to shareholders of the parent company rose by 24% to CNY 10.2 billion, with the net profit margin of shareholders of the parent company increasing by 0.4% year-on-year. SF Holding has become the sixth enterprise in the A-share transportation primary industry to achieve a net profit attributable to shareholders of the parent company exceeding CNY 10 billion, and it is also the only private enterprise.
SF's profits mainly still come from the express delivery business. In 2024, the net profit of SF Express and the large-parcel division was approximately CNY 10.98 billion, a year-on-year increase of 29.91%, mainly due to the network scale effect brought about by the growth in express delivery volume and the structural cost reduction resulting from network streamlining.
In November 2024, SF Express, which was already listed on the Shenzhen Stock Exchange, was listed again on the Hong Kong Stock Exchange, raising CNY 5.3 billion. It stated that it would rely on the Hong Kong Stock Exchange to better develop its international business and optimize its international brand image. Of the funds raised, 45% will be used to strengthen international and cross-border logistics capabilities; 35% will be used to enhance the logistics network and services in China; 10% will be used for research and development of advanced technologies and digital solutions, upgrading the supply chain, and implementing ESG; and 10% will be used as working capital.
SF started its cross-border business in 2010. In 2018, SF Express acquired DHL's supply chain business in China for CNY 5.5 billion. This move enabled SF Express to transform from a single express delivery enterprise to a comprehensive supply chain service provider. In 2021, SF Express acquired 51.8% of Kerry Logistics' equity for HKD 17.5 billion (CNY 16.35 billion). The company has a mature warehousing and cross-border logistics network in Southeast Asia. SF Express used this opportunity to enter the international high-end supply chain market.
In 2023, the demand and freight rates for international air and sea transportation dropped significantly to the level of 2019, resulting in a substantial narrowing of the profitability of the international freight forwarding business. The supply chain and international division of SF Express incurred a loss of CNY 535 million. In 2024, due to business adjustments after the structural reorganization of SF Express's subsidiary KEX, short-term losses increased, and the supply chain and international division incurred a loss of CNY 1.32 billion, with the losses further exacerbating.
