China Development Network News After trading on April 25, YTO Express released its 2023 annual report and 2024 first quarter report. According to the report, in 2023, YTO Express will achieve operating income of 57.684 billion yuan, a year-on-year increase of 7.74%, and net profit attributable to the parent company of 3.723 billion yuan, of which the net profit attributable to shareholders of the parent company in the express delivery business will be 3.840 billion yuan, a year-on-year increase of 5.15%.
In the first quarter of 2024, YTO Express's operating performance also achieved a steady improvement, with revenue of 15.427 billion yuan in a single quarter, a year-on-year increase of 19.46%, and net profit attributable to the parent company of 943 million yuan, a year-on-year increase of 4.14%, of which the express delivery business achieved a net profit attributable to the parent company of 994 million yuan, an increase of about 11.87% year-on-year.
It is worth noting that under the fierce competition in the express delivery industry, YTO has continued to deepen its main business in recent years, and the results of promoting digital and intelligent development have gradually emerged, and the express delivery business has achieved significant growth in quantity and quality. From 2021 to 2023, the business volume of YTO Express will be 16.543 billion, 17.479 billion, and 21.204 billion respectively, and the business scale will achieve a stable "triple rise". Industry data shows that in 2023, the business volume growth rate of the top express service companies will continue to exceed the average growth rate of the industry, with the total market share of the top two companies being about 39.0%, an increase of about 1.1% year-on-year, and the market share will be further concentrated, and YTO, as one of the top enterprises, will have a market share of 16.1%. In the first quarter of 2024, the completed volume of YTO Express business was 5.568 billion pieces, an increase of 24.88% year-on-year, ranking at the top of the industry.
Digital empowerment strengthens the integration of the entire network
In recent years, the competition in the express delivery industry has gradually changed from price competition to value competition, and the competition dimension has been continuously pushed up, and the high-quality development trend of the industry is significant. In recent years, YTO has continued to promote digital transformation and intelligent development, from management energy efficiency to cost control, to service quality, strong digital capabilities not only deeply empower the company, but also make "digitalization" a prominent capability label of YTO.
At this stage, the competition of franchise express delivery has sunk from the competition at the headquarters level to the competition at the franchisee level, and it is the main line of a new round of industry competition to empower franchisees and help franchisees and end outlets create more value. It is understood that YTO has set up a leading group internally, with an executive team and a steering group, which will work together up and down and coordinate with multiple parties to promote the implementation of the "No. 1 Project - Digitalization and Standardization Construction of the Franchise Network", empower the franchisees in an all-round way in terms of finance, operation and management, help franchisees reduce costs, improve quality and efficiency, create a "non-direct sales system", comprehensively improve the operation and management capabilities and profitability of the franchise network, and consolidate the foundation for the development of the whole network.
2023 is the year of the full implementation of YTO's "No. 1 Project", and YTO headquarters has dispatched more than 70 landing teams and professional teams across the network to strengthen the energy efficiency of the use of digital tools by the outlets through the consultation of various business links of the franchisees, and to empower the franchisee outlets with digitalization in a targeted manner, so as to fully realize the digitalization, standardization and performance of the franchisees.
From the digital tools of the system to the multi-party linkage of the headquarters project team, YTO has promoted the full-link refined management of the business from the headquarters to the local franchisees through multiple measures of the "No. 1 Project", improved the customer service experience, enhanced customer stickiness, and achieved a virtuous circle of efficient management, high-quality service and customer satisfaction.
Promote digital transformation and help lean management
In 2023, YTO will pay close attention to cutting-edge artificial intelligence technologies such as big data, machine vision, and natural language understanding, and promote the comprehensive upgrading of digital transformation to create new quality productivity in the express delivery industry. YTO said that during the reporting period, it continued to explore the vertical application of artificial intelligence, deeply excavated the value of data elements, and independently developed and launched the application "YTO-GPT", which comprehensively reduced the cost of digital tools and improved the level and efficiency of digital management of the whole network.
In terms of fulfillment, the company has built a regional drawing platform through the application of map technology, developed and applied systems such as "intelligent delivery", and digitized the salesman's experience and knowledge, so as to realize the intelligent stacking of parcels and the intelligent reminder of delivery information, so as to help the salesman reasonably plan the delivery task, optimize and improve the delivery path, and promote the end to reduce the cost of pickup, improve the delivery efficiency and shorten the delivery time. In 2023, the whole journey time of YTO will be shortened by 5.63 hours compared with the same period last year, and the service quality will continue to improve.
In terms of customer service, YTO continues to iterate and optimize various system modules such as "Customer Butler", expand the application scenarios of intelligent customer service, strengthen human-computer interaction, and strengthen "Customer Butler", "Network Butler" and "Walker" At the same time, YTO continues to improve customer service evaluation standards, reconstruct customer service capability index, focus on improving customer repetitive line access, upgrade the control of multiple incoming work orders, promote closed-loop management of customer service work orders, and strive to reduce negative customer feedback
Efforts have been made to "express delivery to the sea", and the international strategy has been continuously implemented
In recent years, YTO has continued to deepen its international development strategy, made efforts to "express delivery to the sea", gave full play to the resource advantages of overseas sites covering the world, professional teams well versed in business, self-owned fleets with diverse structures, and increasingly encrypted route networks, and continued to optimize the cross-border logistics product matrix and extend cross-border logistics service links around key markets and high-quality customers. In 2023, the company's international freight business will operate stably, completing more than 148 million pieces of international express delivery and parcel services, a year-on-year increase of nearly 20%. In addition, YTO also maintains good cooperation with large multinational companies such as Xiaomi, VIVO, Transsion, Zhejiang Dahua, etc., and takes the opportunity of hosting international comprehensive event logistics services such as the Hangzhou Asian Games to further precipitate the integration of international supply chain logistics service capabilities of "warehouse trunk line customs distribution".
At the same time of business development, the company continues to strengthen the infrastructure for international development. In the first quarter of 2024, YTO appointed Zhou Jian, a "express veteran", as the executive director and chief executive officer of YTO International Express, and simultaneously launched the "Wonderful Plan", an international talent discovery project, to build a professional team for global business. As of the end of 2023, the number of the company's own aviation fleet has reached 13, and more than 130 high-quality routes covering the whole of Asia and the core regions of Eastern Europe have been opened. The company has also further expanded the customs clearance network in the form of self-construction, cooperation and alliances, and completed the construction of customs capacity in major domestic ports and some key international ports, and the customs clearance network has basically covered the main ports in the country, and the customs clearance system is becoming more and more mature, which can provide accurate and efficient customs clearance services for multi-format customers.
Industry insiders believe that the high-quality talent team, its own aviation and customs clearance network will be the winning point of the future industry competition, and the high infrastructure barriers it has created will lay a solid foundation for the development of YTO international business.