On December 14, SF Tongcheng was listed on the main board of the Hong Kong Stock Exchange with the stock code "9699". SF Tongcheng made a global public offering of 131,180,800 ordinary shares priced at HK$16.42 per share, raising approximately HK$2.031 billion.
At the listing ceremony held in Shenzhen, Wang Wei, chairman and general manager of SF Holdings, Chen Fei, chairman of the board of directors of SF Tongcheng, director, deputy general manager and assistant CEO of SF Holdings, Sun Haijin, executive director and CEO of SF Tongcheng, Zeng Hailin, executive director, chief financial officer and joint company secretary of SF Tongcheng, Chen Lin, executive director, deputy general manager and chief technology officer of SF Tongcheng, Liu Jia, secretary of the board of directors and joint company secretary of SF Tongcheng, and 4 grassroots employees from SF Tongcheng, Together, the gong of SF's listing in Hong Kong in the same city was sounded, witnessing this important moment.
SF same city listing ceremony site
It is worth noting that the employees who stand on the left and right sides of the gong in the middle and responsible for ringing the gong are from crowdsourcing to full-time to assistant site leader, Knight Cheng Nan of the "2020 Anti-epidemic Pioneer" and Xian Ke, outstanding representative of the CLS Smart Brain R&D team of SF Tongcheng, and the rest of the executives and business team representatives are on both sides of the station. The station means that SF Tongcheng stands at the outlet of the industry, with the help of knights and the power of science and technology to do a good job for customers, it is everyone's joint efforts, help and support, so that SF Tongcheng continues to grow and develop, thus forming a virtuous circle.
Sun Haijin, Executive Director and CEO of SF Tongcheng, delivered a speech
Speaking at the launch ceremony, Sun Haijin said: "I am fortunate to grow into the largest third-party instant delivery service platform in China. We firmly believe that as a service industry, no matter how the environment and industry pattern change, no matter how the industry upgrades, serving others is self-achievement! Homeopathy will definitely win! ”
The successful listing marks that SF Tongcheng has officially become the first share of the hong Kong third-party instant delivery platform. With the strong support of the capital market, SF Tongcheng is expected to further release its business advantages and further strengthen its business strength.
Adhere to the third-party positioning and usher in high-quality development
SF Tongcheng has been operating independently and in a corporate manner since 2019, and has grown rapidly into a leading independent third-party instant delivery service in China in just over 2 years. For the 12 months ended 31 March 2021, SF Tongcheng has become the largest independent third-party instant delivery service provider, accounting for 11% of the market share, showing a strong explosive force.
Industry insiders believe that the "independent third-party" positioning of SF Tongcheng has become its unique advantage and core competitiveness, and under the requirements of the national anti-monopoly policy, the correctness of the third-party positioning has released stronger vitality and advantages.
From the demand side, on the one hand, as a third-party platform, SF Tongcheng can return the service definition right to the merchants, and at the same time meet the needs of merchants with more high-end and professional service standards, especially the needs of high-priced merchants who attach importance to service quality and experience. On the other hand, whether it is traffic giants such as Douyin and Kuaishou, or supermarkets to home, fresh e-commerce, and community group buying platforms, they all need the support of an independent third-party distribution platform that is out of traffic competition; even takeaway platforms such as Meituan and Ele.me also need third-party platforms to replenish transportation capacity during peak hours.
From the perspective of anti-monopoly, third-party platforms meet the requirements of national anti-monopoly and the trend of traffic decentralization. SF Tongcheng can help merchants better undertake the distribution of omni-channel traffic, realize traffic closed-loop, and better help merchants to play games with centralized platforms. In addition, from its recent choice of Su Bingtian as the brand spokesperson and Xu Zhisheng as the chief Win Health Officer, we can also glimpse its determination to fully exert its C-end market and serve C-end users, and the integration of B-end and C-end business can also better revitalize the organizational capacity and improve the efficiency of the transportation capacity.
Based on the advantages brought by third-party positioning, SF Tongcheng flexibly fulfills orders from diversified sources, covering the four main scenarios of the new consumption era: local catering, same-city retail, near-field e-commerce and near-field services. Local dining mainly includes meals and beverages, and SF Tongcheng provides instant delivery of three meals a day. The same city retail mainly includes supermarkets, fresh food, medicine, cakes and desserts and other daily regular purchases of daily food supplies. Near-field e-commerce is mainly based on categories with high e-commerce penetration rates, such as shoes and clothing bags, beauty, and digital 3C. Near-field services are centered on enterprises and consumers, and SF Tongcheng provides services that meet the work and life-related needs of a certain range of surrounding areas, such as picking up and delivering various items, helping to buy, helping to do, helping queuing, etc. This flexible business model of SF Tongcheng undoubtedly enhances its adaptability, helping it to seize market opportunities in various segments and expand its business scenarios and business scope.
In this positive business operation model, SF Tongcheng ushered in rapid growth. According to the data, SF Tongcheng's revenue in the first five months of 2021 was 514 million yuan, an increase of 151.2% year-on-year. According to the rough estimate of the average daily single, SF Tongcheng accounts for 4.3% of the city in the instant delivery industry, which is nearly 4 times higher than the 1.2% in 2019 (iResearch data).
In terms of revenue, SF Tongcheng increased from 993 million yuan in 2018 to 2.107 billion yuan in 2019 and 4.843 billion yuan in 2020, with a compound annual growth rate of 120.8%, and as of May 31, 2021, the company's revenue reached 3.046 billion yuan, and the net loss narrowed to 352 million yuan. In terms of profit margins, SF's data in the same city showed a rapid positive trend, as of the end of May this year, the gross profit margin has narrowed to -0.9%, and it is expected to achieve a positive gross profit in the short term.
That is, with the track trillion is imminent, SF City will release greater potential
From independence to listing, SF Tongcheng has spent less than three years, in addition to its own strength, it is inseparable from the general trend of the new consumption era and the popularity of the instant delivery industry.
In recent years, the development of local consumption has promoted the emergence of new consumption models with diversification and personalization, and spawned a large number of demand for instant delivery services. The instant delivery industry has ushered in a period of rapid growth in the past 5 years, developing into an industry with an output value of more than 100 billion yuan and a market size of trillion yuan. According to the iResearch report, the annual order volume of the instant delivery service industry increased from 4.6 billion in 2016 to 21 billion in 2020, with a compound annual growth rate of 46.0%, and predicts that it will increase to 79.5 billion by 2025.
Just as the so-called water is big and the fish is big, SF is in the same city with broad prospects, and the future development is naturally worthy of long-term optimism. More importantly, SF Tongcheng has taken the lead in the track, and has built its own brand moat and continued to release its advantages by doing a good job of independent third parties and accurately grasping the future instant delivery scene. In addition, SF Express Group, the parent company of SF Tongcheng, has already had the highest unit price and the largest number of high-quality customers in China through years of accumulation, and these nearly 10 million enterprise users and 400 million and 500 million ordinary users are the natural traffic of SF Tongcheng, which will become an important driving force for SF Tongcheng to take off on the C2C track in the future.
It is based on the optimism about the company's development prospects that SF Tongcheng is favored by the capital market. Before the IPO, SF Tongcheng successively obtained shares from internationally renowned investment institutions such as Goldman Sachs Group, New Hope, Legend Capital, CITIC Capital, BAI and other internationally renowned investment institutions, and now it has gained two cornerstone investors, Taobao China (a wholly-owned subsidiary of Alibaba Group) and Hello Inc.
As a high-quality growth stock, SF Tongcheng's brand advantages and market value have gradually emerged. With precise positioning, great track potential, stable fundamentals and strong capital support, we have reason to believe that SF Tongcheng will release greater potential and continue to maintain high growth after the listing.