S.F. Holding Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of S.F. Holding Co., Ltd.

S.F. Holding Co., Ltd., founded in 1993, is a leading express logistics service provider in China. Originally established as Shunfeng Express, the company has grown significantly, becoming a prominent player in the logistics and courier industry. By 2021, S.F. Holding reported a total revenue of approximately 88.88 billion CNY, marking a notable increase from 75.94 billion CNY in 2020.

In 2017, S.F. Holding Co., Ltd. officially listed its shares on the Shenzhen Stock Exchange under the ticker 002352. Its initial public offering raised about 7 billion CNY, which facilitated its expansion strategies, including acquiring smaller logistics companies and enhancing its technology capabilities.

Over the years, S.F. Holding has expanded its service offerings beyond traditional express delivery. The company now encompasses e-commerce logistics, cold chain logistics, and supply chain management. For instance, in their 2021 annual report, the cold chain logistics segment contributed to a revenue of over 6.9 billion CNY.

As of the end of 2022, the company's market capitalization reached approximately 100 billion CNY. The company operates over 3,000 delivery stations across China and maintains a fleet of more than 30,000 vehicles. Moreover, S.F. Holding has invested significantly in technology, including artificial intelligence and big data analytics, to optimize its logistics operations.

International expansion is also part of S.F. Holding's strategy. The company has gradually entered markets outside China, including Southeast Asia and Europe, establishing international logistics networks to cater to cross-border e-commerce. In 2021, S.F. Holding's international business accounted for around 14% of total revenue, reflecting its growing global footprint.

The company has faced increasing competition from other logistics providers such as Alibaba's Cainiao and JD Logistics. As part of its response, S.F. Holding continues to enhance its service quality and expand its product offerings, which include value-added services like insurance and warehousing solutions.

By early 2023, S.F. Holding's share price fluctuated around 65 CNY despite broader economic pressures and the ongoing challenges in the logistics sector due to global supply chain disruptions. The company’s focus on efficiency and innovation remains pivotal in navigating these challenges.

A Who Owns S.F. Holding Co., Ltd.

S.F. Holding Co., Ltd., the prominent logistics and express delivery company based in China, is publicly traded on the Shenzhen Stock Exchange under the stock code 002352. The ownership structure of S.F. Holding is diverse, with a combination of institutional investors, individual shareholders, and company executives.

As of the latest available data, the largest shareholder of S.F. Holding Co., Ltd. is the founder, Wang Wei, who holds approximately 37.24% of the total shares. This substantial stake underscores his influential role in the company’s strategic direction.

Institutional ownership has also significantly shaped the company's governance. Major institutional shareholders include:

• China Life Insurance Company - owns approximately 5.67%.
• National Social Security Fund - holds about 2.34%.
• China Ping An Insurance - with a shareholding of 3.15%.

Individual shareholders contribute to the remaining ownership, with over 50% of the shares held by a variety of retail investors. This mix of ownership helps balance control and influence over company decisions between founders, institutional investors, and the general public.

In terms of financial performance, S.F. Holding reported revenues of approximately RMB 68.79 billion for the fiscal year ending 2022, reflecting a year-on-year growth of 19.87%. The net profit for the same period was around RMB 4.2 billion, with a net profit margin of 6.10%.

As of October 2023, S.F. Holding’s stock price is estimated at RMB 50.67, reflecting a market capitalization of approximately RMB 143 billion. The company has continuously emphasized its expansion strategy across domestic and international markets, aiming to enhance its service offerings and operational efficiencies.

Additionally, S.F. Holding has made significant investments in technology, with a reported RMB 1.5 billion allocated for research and development in emerging logistics technologies in 2023. This positions the company well to adapt to evolving market demands and competitive pressures.

S.F. Holding Co., Ltd. Mission Statement

S.F. Holding Co., Ltd., listed on the Shenzhen Stock Exchange under the ticker 002352, is a leading logistics service provider in China. The company's mission is centered around providing high-quality logistics services while leveraging technology to drive efficiency and innovation. The mission statement underscores a commitment to customer satisfaction, operational excellence, and sustainable development.

As of the first half of 2023, S.F. Holding reported robust financial results, reinforcing its position in the logistics sector. The company's revenue for the period reached approximately RMB 39.3 billion, reflecting a year-on-year increase of 10.2%. Net profit attributable to shareholders was about RMB 3.5 billion, with a net profit margin of 8.9%.

The organization emphasizes a dual focus on its logistics capabilities and technological advancements. S.F. Holding has invested heavily in automation and digital solutions, which has enhanced efficiency across its network. As of June 30, 2023, the company operated a fleet exceeding 80,000 vehicles and managed over 300 distribution centers nationwide.

In terms of customer base, S.F. Holding serves over 500,000 clients, ranging from e-commerce platforms to traditional retail businesses. The company's dedication to customer satisfaction is reflected in its on-time delivery rate, which stood at 98% in 2022, a crucial metric in the highly competitive logistics industry.

Furthermore, the company's investment in green logistics initiatives demonstrates its commitment to sustainability. S.F. Holding aims to reduce carbon emissions by 20% by 2025. This commitment is supported by the integration of electric vehicles into its fleet, with plans to increase the proportion of electric vehicles to 30% by 2025.

Overall, S.F. Holding Co., Ltd. is strategically positioned to capitalize on the growing demand for logistics services in China. Its mission encapsulates the drive to enhance operational efficiency while prioritizing customer satisfaction and environmental sustainability.

How S.F. Holding Co., Ltd. Works

S.F. Holding Co., Ltd. operates as a leading logistics company in China, primarily engaged in parcel delivery, express logistics, and freight forwarding. Founded in 1993, S.F. is known for its comprehensive logistics services, covering both domestic and international markets.

As of the end of 2022, S.F. Holding reported a revenue of approximately RMB 76.8 billion, reflecting a year-over-year growth of 18.5%. The operating profit for the same period reached around RMB 15.4 billion, with a net profit of RMB 12.5 billion.

Key Business Segments

• Express Delivery: This segment is the core of S.F. Holding's operations, providing comprehensive express delivery services across China and internationally.
• Logistics Services: Includes warehousing, supply chain management, and logistics consultancy.
• Freight Services: Offers integrated freight services, including air freight and sea freight, catering to large-scale shipments.

Operational Structure

S.F. Holding employs a vast network of distribution centers and transportation hubs. The company operates more than 90,000 delivery personnel and has over 12,000 self-owned vehicles, enhancing its operational efficiency.

Market Presence

The company holds a significant share in the express delivery market in China, with an estimated market share of 22%. S.F. Holding has expanded its footprint with strategic acquisitions, including the purchase of YTO Express in 2020, bolstering its capabilities and market position.

In recent years, S.F. Holding has invested heavily in technology to enhance service delivery. The company reported spending over RMB 5 billion on technology and infrastructure development in 2021.

Financial Performance Metrics

Future Outlook

Looking ahead, S.F. Holding aims to deepen its presence in international markets, with plans to expand its logistics services in Southeast Asia and Europe. The company projects a revenue target of RMB 90 billion for 2023, driven by increased demand for e-commerce logistics services.

The logistics industry in China is expected to grow significantly, with an annual growth rate of approximately 10% projected through 2025, positioning S.F. Holding strategically for continued growth within this dynamic sector.

How S.F. Holding Co., Ltd. Makes Money

S.F. Holding Co., Ltd. primarily generates revenue through its logistics services, particularly in express delivery and logistics solutions. As of 2022, the company reported a revenue of approximately RMB 118.1 billion (around USD 18.4 billion), representing a year-on-year increase of 18.5%. The growth trajectory is driven by the expanding e-commerce sector in China.

The company operates through several segments, including:

• Express Delivery Services
• Supply Chain Management
• International Logistics
• Cold Chain Logistics

In its latest quarterly report for Q2 2023, S.F. Holding's express delivery segment alone accounted for approximately 88% of its total revenue. The number of parcels delivered reached 4.5 billion, reflecting a 15% increase from the previous year.

Key Financial Metrics (2022)

In addition to its core services, S.F. Holding has diversified its revenue streams by investing in technology and expanding into innovative logistics solutions. It has implemented automation and AI technologies, which have improved operational efficiency and reduced costs.

For instance, the company’s use of autonomous delivery vehicles is expected to reduce delivery times by 30% and optimize routing, which contributes to enhanced profitability. S.F. Holding aims to have more than 1,000 autonomous delivery vehicles operational by the end of 2024.

Furthermore, S.F. Holding's international logistics business is gaining traction, with a reported 30% growth in its international parcel volumes year-over-year. This division is expected to contribute significantly to their overall revenue, particularly as global e-commerce continues to expand.

The company's strategic partnerships with major e-commerce platforms, such as Alibaba and JD.com, have solidified its position in the market, leading to stronger sales channels and increased parcel volumes.

S.F. Holding continues to focus on enhancing its infrastructure, including the construction of new sorting hubs and distribution centers, which are projected to improve logistics efficiency. For instance, the recent opening of a new sorting center in Shanghai is anticipated to handle an additional 2 million parcels daily.

Overall, S.F. Holding Co., Ltd. leverages a mix of traditional logistics services, technological advancements, and strategic partnerships to optimize its revenue streams and maintain a competitive edge in the rapidly evolving logistics sector.