SF Holdings’ net profit fell by 79.8% year-on-year, time-sensitive express delivery was rerouted and consumption pressure still exists

The Financial Associated Press (Beijing, reporter Li Danyu), on August 22, SF Holdings (002352.SZ) released its 2021 semi-annual report, showing that in the first half of the year, revenue was 88.343 billion yuan, a year-on-year increase of 24.20%; net profit was 760 million yuan. Yuan, a year-on-year decrease of 79.8%; non-net profit loss attributable to shareholders of listed companies was 477 million yuan, a year-on-year decrease of 113.85%; net cash flow from operating activities was 4.332 billion yuan, a year-on-year decrease of 37.51%.

Previously, after SF Holdings recorded a large loss in the first quarter, SF’s chairman Wang Wei publicly stated: “After such a problem arises, I think a preventive and corresponding measure will be formed immediately, and similar problems will not recur in the future. The second time.”

From the perspective of the financial report, SF Express achieved net profit of -477 million yuan after deduction of non-profits, a year-on-year decrease of 113.85%. Among them, the net profit of the parent after deduction of non-profits in the first quarter was 1.134 billion yuan, and the net profit of the parent after deducting non-profits in the second quarter was returned to the parent. The profit was 557 million yuan. The non-recurring profit and loss items in the first half of 2021 are mainly the disposal income of SF Express’s transfer of three property assets located in Foshan, China, Wuhu, and Hong Kong to SF Real Estate Investment Trust, as well as government subsidies.

In the context of paperless office and the increasing popularity of electronic invoices, the growth rate of SF Holdings’ core business aging express delivery business has slowed again. In the first half of 2021, SF Express’s express delivery business achieved tax-exclusive operating income of 46.161 billion yuan, a year-on-year increase of 6.50%. SF Express said that the slowdown in the business growth was mainly due to the large increase in time-sensitive business due to the strong demand for emergency delivery during the epidemic period last year, with a higher year-on-year base.

“The document delivery business will shrink further in the future. In order to cope with this change, SF Express must make breakthroughs in the e-commerce consumption field.” An industry insider told a reporter from the New Consumer Daily that SF Express’s business in high-end e-commerce brands is similar to JD Express. Competition, but from the perspective of market share, SF Express has more obvious advantages.

SF Express also revealed in its semi-annual report that it aims at high-end e-commerce consumption and manufacturing. With the establishment of future cargo airport hubs, it will continue to improve the timeliness of mutual shipments in key cities, improve the efficiency of aviation resources, and strengthen the coordination of air-ground models to further enhance delivery capabilities and Stability, solid high-end market share.

In recent years, the price war of e-commerce express delivery has continued, leading to continuous decline in single-ticket revenue of SF Express and “Tongda” express delivery companies. However, with the intervention of supervision, the express data in July reflected that the price war has slowed down.

However, the above-mentioned industry insiders admitted that SF Express has not been good at price wars. Although it hopes to use the Fengwang brand to enter the economic parts market, the cost and operating pressure it faces have already affected its profitability.

Great Wall Securities showed in its research report that benefiting from the acceleration of online high-end consumption, SF Express’s time-sensitive parts are increasingly closely linked with consumption upgrades, and the growth rate of time-sensitive parts is now linked to large consumption; the phased problems of cost-side capacity and the strategic importance of new business Unfavorable factors such as investment have been concentrated in the first quarter. Taking into account the company’s strong management capabilities, related cost pressures will be gradually eased.

On the other hand, Zhao Xiaomin, an expert in the express delivery industry, said that SF Express’s major actions in the second half of the year were more concentrated. SF Express’s previously announced 20 billion “fixed increase” has been approved or issued at an opportunity; SF Express will be listed on the Hong Kong Stock Exchange for trading; complete the acquisition of Kerry Logistics, a Hong Kong listed company; continue to increase the speed of introducing aircraft.