SF Wang Wei: "The price war is not in line with long-term interests, and the future focus should be squeezed out of water"

21st Century Business Herald reporter He Hongyuan reported from Beijing

Wang Wei, who has always been low-key, expressed his determination.

According to the disclosure of the State Post Bureau, on December 3 and 5, Ma Junsheng, director of the State Post Bureau, Dai Yingjun and Chen Kai, deputy directors of the State Post Bureau, held forums with the main responsible persons of express delivery companies and postal enterprises to talk about development, analyze problems and explore paths.

In the office building of the State Post Bureau, Ma Junsheng and Chen Kai had a discussion with 6 entrepreneurs, including Wang Wei, chairman of SF Holdings, Lai Meisong, chairman of Zhongtong Express, Yu Weijiao, chairman of Yuantong Express, Nie Tengyun, chairman of Yunda Shares, Wang Wenbin, president of Shentong Express, and Fan Suzhou, executive president of Jitu Express, who encouraged them to adhere to the general tone of seeking progress in stability and promote the high-quality development of the express delivery industry.

"Our main goal for next year is sustainable and healthy development." Wang Wei said at the symposium that lowering prices to expand business is not in the long-term interests of enterprises, nor is it in line with the requirements of high-quality development of the industry. "The focus for the future is to squeeze water."

"What is moisture?" Is it fake revenue or fake cost? Ma Junsheng asked.

"It's mainly cost-oriented, stemming from inadequate management and insufficient collaboration." Wang Wei replied that in the past, various departments such as express delivery and express transportation pursued scale and speed growth, acted independently, and did not realize the collaborative sharing of resources. Next year, SF will integrate resources such as manpower, transportation capacity, transit yard, IT, and Kerry Logistics to promote co-construction and sharing and improve the quality of development.

In addition, Wang Wei also said that to "become a stronger and larger enterprise, we must return the relevant sources of profits to common prosperity." He said that it is necessary to continuously improve the salary of the brother, increase social security investment, increase training opportunities, and broaden the promotion space.

Behind Wang Wei's "squeezing water" is that SF's profits have fallen sharply. According to the financial report, in the first three quarters, SF's revenue was 135.86 billion yuan, an increase of 24% year-on-year; Net profit was 333 million yuan, -93.5% year-on-year.

In the same period, ZTO's net profit was 3.202 billion yuan, -3.0% year-on-year; YTO's net profit was 887 million yuan, -26.8%year-on-year; Yunda's net profit was 706 million yuan, -17.4%; Shentong's net loss was 312 million yuan; and Baishi's net loss was 1.751 billion yuan.

The essence of the industry-wide profit decline is the continuation of the cruel price war.

According to the State Post Bureau, the revenue of a single courier ticket fell from 28.5 yuan in 2007 to 10.6 yuan in 2020, a decrease of 63%. From January to October 2021, the country completed a total of 86.72 billion pieces, an increase of 34.7% year-on-year, revenue of 833.98 billion yuan, an increase of 20.7% year-on-year, and average ticket revenue of 9.62 yuan, down 10.4% year-on-year.

"It is necessary to take a clear stand against 'inner volume', prevent unfair competition, and oppose acts that harm the interests of the industry and the interests of employees." It is necessary to take a clear-cut stand to maintain market order, seriously investigate and deal with violations of regulations, and constantly purify a healthy and orderly development environment. Ma Junsheng stressed at the forum.

"The cause of the price war comes from structural problems in the industry, and it is most likely to burn a number of enterprises." A number of executives of express delivery companies have expressed similar views to the 21st Century Business Herald reporter.

On December 7, SF closed at 62.9 yuan, up 1.14%. At the end of March, its stock price reached 124.07 yuan.

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