Financial Associated Press (Jinan, reporter Cui Xiaoli) news, for two consecutive years selected in the "Hurun Global Unicorn List" of the Daily Shun Supply Chain Technology Co., Ltd., recently submitted an application for the first listing on the ChiNext board on the Shenzhen Stock Exchange, how has the company grown in recent years? What is the value of the investment? The reporter of the Financial Associated Press noted that the company's prospectus disclosed that its industry attribute is "supply chain management service industry". While achieving rapid growth in scale and performance, the revenue of innovative and value-added services, including delivery synchronization and "C-end scenario services", is also growing steadily, and the business structure continues to be optimized, showing strong growth.
According to the company's prospectus, from 2019 to 2020, Ri RiShun achieved operating income of 10.346 billion and 14.036 billion yuan respectively, an increase of 8% and 36% year-on-year; the net profit attributable to the owners of the parent company was 273 million and 422 million, an increase of 21% and 55% year-on-year.
The supply chain management service industry is a more advanced and advanced industry that has been upgraded and iterated in the logistics industry in the environment of demand stratification, consumption upgrading, industrial upgrading and channel change. It is reported that the supply chain management service industry market space is huge, according to Rogo's research and calculations, it is expected that in the next five years, China's end-to-end supply chain management service industry market compound growth rate will reach 11.9%, by 2025, the market size of about 3.14 trillion.
From the perspective of the industry, the company's business model and future profitability are particularly worthy of investors' attention. In the short and medium term, the international business layout has been basically improved and is about to enter the harvest period, and the new expansion business areas such as the automobile business have entered a high growth period; in the long run, the ecological innovation business will become a new growth point for the company.
The supply chain management service capability is better than that of the same industry
According to the latest report of Rogo Research, according to the revenue of 2020, DayDayShun is the third largest end-to-end supply chain management service provider in China, and it is also one of the few enterprises in the current market with end-to-end supply chain management capabilities covering manufacturing, online and offline circulation channels to end-user scenario services.
Judging from public information, it includes JD Logistics, Sinotrans (601598. SH), Suning Logistics, Feilida (300240. SZ), BBT Shares (603648. Many logistics companies, including SH), have publicly stated that they can provide customers with "integrated supply chain management solutions", but there are very few companies that can truly integrate with the industry at the B-end and provide "end-user scenario services" on the C-end. DayDayShun is the first company in China to have the ability to integrate with the B-end industry and C-end scenario-based services, and achieve steady growth in revenue in this innovative business.
In recent years, focusing on large-scale logistics, in the fierce competition of the logistics industry, around the continuous iteration of user experience needs, along the logistics supply chain to the B-end and C-end at the same time, the construction of a highly competitive full-link, multi-scenario supply chain management service capabilities. At present, the company's main business provides customers with integrated supply chain management solutions, including program design, warehousing layout and management, transportation services, end-user distribution, installation services and reverse logistics services.
On the B-side, by tailoring supply chain management solutions for enterprise customers, DayDayShun has achieved integration with the industry, and has also improved customer stickiness and its own profitability.
For example, DaydayShun created a "front-end machining center warehouse solution" for Maverick electric vehicles, iteratively transformed the traditional warehouse into a "pre-assembly center" with the function of "warehouse processing and unified warehouse distribution", provided Maverick with industry solutions including transportation, bare car intelligent storage, bare car processing in the library, intelligent customized circulation box distribution, and simultaneously provided bare car distribution services for Maverick's channel stores and personalized delivery and commissioning services for end users, helping Maverick reduce logistics and supply chain costs. This is the first of its kind in the industry.
Performance has entered a rapid growth channel
From the company's financial data in the past 2 years, it can be seen that the company's current main income comes from B-end customers. In recent years, the company's exploration of the B-end business model has achieved results, accumulated a large number of customer resources, the business layout has been expanding, and the performance has begun to enter a rapid growth channel.
According to the analysis of the prospectus, the company's rapid growth in the short term performance comes from two aspects, one is the newly copied and expanded business areas such as automobiles, 3C electronics, and new energy, which are about to enter the volume stage; the other is that the international business layout is gradually improving, which may bring about a large business increase in the short term.
With the ability of leading supply chain management solutions, in recent years, DaydayShun has entered the home life, fitness equipment, travel tools and other industries from the home appliance industry, and has accumulated many high-quality customers including Haier, Alibaba, Xiaomi, IKEA, Kohler, Skyworth, Yijian, Yadi, Xinri, Maverick, Walmart and Geely. Automobile and new energy sectors are the newly expanded business areas of DaydayShun, and there are already Changan Ford, Geely Automobile, Xinkangzhong, Bangbang Auto Service, Shuangxing Tire, Tianneng Heavy Industry (300569. SZ) and other customers.
In 2020, the supply chain demand orders of DailyShun have exceeded 43 million votes, of which the original home appliance business has maintained a stable growth trend, while the business areas such as the home and fitness equipment industries that have been laid out in recent years have achieved rapid growth.
In terms of international business, in 2018, the company's business began to extend overseas, the air transport business has developed rapidly, and after the establishment of Shandong Ririshun International Supply Chain Management Co., Ltd. in 2019, the company's maritime business capabilities have also been effectively strengthened. In recent years, the revenue of international freight business has grown rapidly, and from 2019 to 2020, it has achieved revenue of 871 million and 1.545 billion, an increase of 44% and 77% respectively year-on-year. With the continuous expansion of the company's overseas layout, the company's international business will grow rapidly.
Continuous optimization of the business structure
In the medium and long term, the "ecological innovation business" with value-added services such as scenario solutions as the main product is expected to become a new growth point for the company in the future.
With the continuous upgrading of consumption, the demand for personalization and customization of enterprise customers is increasing, and the needs of consumers are becoming increasingly fragmented. In this context, mining and integrating user needs and improving user experience have become common propositions in various industries, while digitalization, ecology and scenarioization will become the development trend of the industry.
On the C-side, DayDayShun took the lead in proposing the concept of "scene logistics" in the industry, based on supply chain services, mining new user needs in the process of interacting with users, and providing personalized scene solutions and value-added services to create an Internet of Things scenario logistics ecological service platform.
According to the prospectus, the company's ecological innovation service sector revenue currently comes from two aspects, one is the value-added of the driver ecosystem, the company continues to optimize the terminal driver experience, and gradually expands the insurance value-added, oil products, tires and other business areas; on the other hand, the company uses the opportunity of large products delivered to the home, delivery synchronization opportunities, to provide users with value-added products based on the best experience such as home services, fitness, travel protection and other customized solutions, to achieve year-on-year revenue growth.
From 2019 to 2020, the ecological innovation business achieved revenue of 491 million yuan and 218 million yuan respectively, an increase of 125.4% and 225.3% respectively year-on-year to achieve rapid growth in scale. At present, the "Daily To Home" APP experience cloud for end users has accumulated nearly 3 million registered users, and the cumulative number of registered users has exceeded 1.5 million in that year, and the development of ecological innovation business has achieved initial results.
With the continuous growth of the revenue of the ecological innovation business, the company's revenue structure has been continuously optimized. In recent years, the proportion of the company's traditional transportation and warehousing business revenue is decreasing year by year, while the proportion of new business revenue, including terminal delivery services, value-added products or services, etc., has gradually increased.
The company plans to continue to promote the layout of the smart logistics network and promote the scene logistics ecological strategy through this initial listing. Part of the funds raised will be used for the construction of last-mile network contacts, building scene service centers in first- and second-tier cities, and providing customers with distribution, distribution, installation, scene experience, ecological products, customized solutions and other services through a combination of online and offline methods. At the same time, in collaboration with the "Home" APP experience cloud platform, combined with the construction of offline scene service centers, user interaction is carried out through the combination of online and offline methods, exploring the service needs behind the purchase of products by users, and providing customers with customized solutions for scenes and all-round services such as sending, loading, matching, repairing, and scene experience.
The terminal delivery network covers 99% of the country's districts and counties
Extensive and efficient logistics network resources are the basis for rapid performance growth.
As a unicorn enterprise of logistics ecological brand in the Internet of Things scenario, DaydayShun relies on the business operation mode based on digitalization, connects logistics infrastructure facilities and service resources such as warehousing resources, transportation resources and service outlets, and builds a scarce logistics service network covering the whole country, delivering and loading synchronization, and going to villages and households. According to the latest report from Rogo Research, the company has the most extensive end-of-line delivery network in the field of bulky logistics services.
By the end of 2020, the company has 916 warehouses, more than 100,000 transport vehicles, and more than 6,000 outlets, and the delivery service can reach more than 2,840 districts and counties across the country, with a coverage rate of 99% in districts and counties.
In view of the common installation needs of large consumer goods, the company relies on 6,000 service cooperation outlets close to end users and scene service providers with professional delivery skills, focusing on creating integrated service capabilities for distribution and installation of end users, and extending the traditional logistics service chain from simple "warehousing, transportation" services to multi-scenario services such as "distribution and installation" at the end.
In terms of international network layout, on the one hand, the company has increased the construction of overseas logistics infrastructure and the expansion of service networks, and promoted interconnection with countries along the "Belt and Road".
On the other hand, the company has also strengthened the integration of resources including international network channels such as international aviation, shipping, China-Europe express trains and logistics hubs, and further deepened strategic cooperation with leading customers such as China Post and strengthened its layout in the field of cross-border e-commerce.
In addition, the company plans to set up local subsidiaries in overseas regions to replicate the successful domestic model to attract local talents and operational resources and accelerate the landing of overseas business.
According to the prospectus, the funds raised by the company's initial listing, in addition to the construction of the last kilometer network contact construction project, will also be used to build intelligent logistics center projects, intelligent warehousing equipment projects, logistics information system digitization and intelligent construction projects, self-operation capacity improvement projects, after all the investment projects are put into production, the company's logistics network and digital operation capabilities will be further enhanced.
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