Since its establishment, Jizhijia has quickly ranked first in the financing amount of the AGV industry, and it can be called the most intelligent warehousing enterprise favored by capital. According to the company’s information, Jizhijia has received 7 rounds of financing so far, namely Angel round financing on April 26, 2015, A round financing on May 8, 2016, and A+ round financing on March 19, 2017. , July 13, 2017 Series B financing, November 21, 2018 Series B+ financing, July 10, 2019 Series C financing, June 17, 2020 Series C+ financing. Among them, the most recent C+ round financing investment institutions are Xiangfeng Investment, Yunhui Capital, and Hongwei Capital, with a financing amount of more than 200 million US dollars. GIGA’s business model Jizhijia is an intelligent logistics intelligent robot company, focusing on using robots to change warehousing and manufacturing scenarios. Jizhijia proposed the innovative business model of RaaS in 2018, which can effectively help customers reduce initial investment and lower entry barriers. At the same time, it can also improve the efficiency of robot use and reduce overall operating costs. A shared network of thousands of robots has been created through equipment generation operations or intelligent warehousing services. By creating an intelligent logistics service plan consisting of AMR robots, intelligent systems, and professional operating systems, we will unite with express partners to provide integrated warehouse and distribution services for merchants’ B2B and B2C logistics businesses. Smart warehousing services, one of the RaaS models of Gigabyte, provide brand owners with new options for quickly deploying new channels of logistics, realizing multi-channel operations, and flexibly responding to market changes and promotion fluctuations. The IPO process of Jizhijia According to the IPO’s known news on June 15, Beijing Jizhijia Technology Co., Ltd. has signed a listing counseling agreement with CICC a few days ago, and plans to be listed on the Science and Technology Innovation Board. The IPO price range and the number of shares to be issued have not yet been announced. In terms of equity In terms of equity, the largest shareholder of Jizhijia is Marcasite Gem Holdings Limited, holding 20.70% of the shares; Tianjin Jizhichuangxiang Technology Partnership (Limited Partnership) holds 8.25%, and Tianjin Jizhichuangzhi Technology Partnership (Limited Partnership) holds 8.25%. ) Holds 5.56% of the shares. Among them, Zheng Yong holds a total of 8.72%. At the same time, D1 Capital holds 7.1043% of shares and GGV Capital holds 7.1042% of total shares, and they are listed as the largest institutional investors of Giga Plus. Secondly, Yunhui Capital holds a total of 5.42%, Volcanic Rock Capital holds 3.75%, Gaorong Capital holds 3.31%, and CITIC Industry Fund holds 3.14%. Competitors of GeekPlus At present, the main competitor of Jizhijia is Kuaicang. As a domestic warehousing robot, Jizhijia is characterized by software standardization, stability, and easy delivery in the QR code AMR type, and the market is wide, and it has always occupied a larger market share in the early stage; while the fast warehouse is just the opposite. The hardware and control are very strong. The market is not as good as Zhijia. The disadvantage is the software. Up to now, the project delivery rate of fast warehouse is not very high in the industry. The reason for the many unfinished projects is that the software cannot be customized. demand. In the next few years, Jizhijia and Kuaicang may be able to maintain similar AMR dominance in the form of Kiva. If they bypass the track and use other technologies, they can also find their own track in the subdivision field. With plenty of money, Chika may be able to take the lead. GIGA Venture Capital Reminder: l The robotics industry is a high-tech and capital-intensive industry. The cost of R&D equipment is high. At the same time, a large amount of R&D capital investment and continuous innovation are required to maintain the company’s competitive advantage and competitive position. l Manufacturers of key components of robots are relatively concentrated, and most of them are in the hands of foreign companies, with greater pricing power, which may pose market risks. l If the supplier is unable to provide these production factors as required by the contract in a timely manner, the supplier’s credit risk may arise, and the production and operation of the enterprise cannot be carried out normally. l The threat of entry of potential entrants, the threat of competition from existing enterprises, and the threat of substitution of substitutes will all trigger market risks. From the current point of view, the threat of potential entrants and the threat of competition from existing enterprises have the greatest impact on the competitive landscape of the robotics industry, while the threat of substitution of substitutes has less impact on the robotics industry. Article source: IPO catcher, please indicate the source for reprinting

Thu Cuc health system TCI is a medical unit in the North with foreign investment. In August 2020, Vinacapital Investment Fund poured capital of 26.7 million USD, equivalent to nearly 617 billion VND. From this capital, Thu Cuc TCI quickly realizes the strategy of “covering” high-quality medical services across the country. Currently, Thu Cuc TCI Medical System includes 3 facilities: Thu Cuc International General Hospital (286 Thuy Khue, Tay Ho), Thu Cuc International General Clinic (216 Tran Duy Hung, Cau Giay). and Thu Cuc General Clinic (32 Dai Tu, Hoang Mai). These are all large-scale medical facilities, located at three key gateway locations of the capital. Thu Cuc International General Hospital was established in August 2011, as the first facility and precursor of Thu Cuc TCI Health System. The 11-storey hospital is located on the edge of West Lake, which has been a familiar medical examination and treatment address for many years for people in Hanoi and neighboring provinces. The remaining two facilities have an area of ​​​​more than 7,000m2, equivalent to a large hospital. In which, Campus 216 Tran Duy Hung was established in March 2019, including 7 floors, located at a trade location, convenient for travel, and Campus 32 Dai Tu was established in March 2021, located at the southern gateway of the capital where there is a busy trade density and an increasingly dense population. Campus 216 Tran Duy Hung – on the left and Campus 32 Dai Tu – on the right. The facilities of Thu Cuc TCI all have airy and harmoniously designed spaces. The clinics and treatment rooms are spacious, clean, comfortable, self-contained, ensuring privacy for patients. The waiting area for examination is arranged with many trees to bring a feeling of comfort and relaxation. The waiting area is arranged with many trees to create a pleasant feeling for patients. Thu Cuc TCI owns a strong team of experts including many leading experts and doctors who directly examine and treat a variety of diseases in different specialties such as: general internal medicine, cardiology, hepatology, urology. , neuroendocrine, endocrinology, digestive, musculoskeletal, otolaryngology, eye, dermatology, pediatrics, obstetrics and gynecology, oncology, laboratory, imaging, functional exploration, endoscopy, surgery faculty… The team of leading experts at Thu Cuc TCI held interdisciplinary consultations to avoid getting sick. In addition, the entire system of medical machinery and equipment at Thu Cuc TCI is synchronously and modernly invested, such as an MRI system, a 128-series CT scanner, a Power express automatic robot test, 300x magnification NBI endoscope, 5D ultrasound, one-way sterile operating room system, etc. Thu Cuc TCI owns the Power Express automated testing system which is being applied at 12/17 leading hospitals in the US. In addition to the investment in 286 Thuy Khue facility, 2 other facilities of Thu Cuc TCI are fully equipped with modern medical machines and equipment to form a closed examination process. As a result, cases requiring inpatient treatment, major surgery, and childbirth will be transferred from facilities 32 Dai Tu and 216 Tran Duy Hung to Thu Cuc International General Hospital. Shipping is completely free. Many outstanding benefits when choosing a large-scale medical facility Visiting large-scale facilities such as Thu Cuc TCI gives patients the opportunity to detect diseases through just one visit. That is thanks to a team of leading experts in many fields and the application of interdisciplinary consultation. Combined with a system of modern equipment, it helps to diagnose the disease quickly and accurately, detect potential diseases, treat on target, not miss the disease. At Thu Cuc TCI, the test results and diagnoses are recognized in case the patient is transferred to other major hospitals. This result can be used immediately without rework, significantly reducing costs, time and effort for the patient. In addition, patients are also guaranteed maximum health insurance benefits thanks to the application of “2 tiers” of insurance, namely Health Insurance and Guarantee Insurance. Medical records are linked between facilities, convenient to track and look up. Online appointment booking system, quick and convenient call center appointment booking system…

From 0:00 on May 7, Ba Ria – Vung Tau will suspend many activities. In addition, activities of walking street, night market, collective dining (party, housewarming, filial piety, etc.) must not gather more than 50 people. Localities encourage people to organize simply, neatly, and not to gather in large numbers of people. Restaurants, shops and food and beverage service establishments must comply with the epidemic prevention and control commitments in accordance with regulations, encourage online ordering and sales, and take-away sales. Other production and business activities (besides temporarily suspended activities) are allowed to operate but must have commitments with local authorities to ensure that they are fully qualified to implement epidemic prevention and control measures as prescribed. In case the conditions are not fully met, the operation will be forced to suspend until the requirements of epidemic prevention are met.

In 2016, Ashley Graham had a big break when she was the first plus-size model to appear on the cover of Sports Illustrated. Since then, she has been noticed by many fashion brands, becoming a pioneer for a generation of models who are confident about the difference in appearance. According to Forbes, Ashley Graham’s income ranges from 5.5 to 10 million USD/year. Photo: today, vocals. Hunter McGrady started his career at the age of 15 as a model. In 2017, McGrady made history when she was featured on Sports Illustrated for the plus size women’s swimsuit edition. According to estimates from Vogue, her income is 6 million USD/year. Photo: russian. Tess Holliday received attention when she became the first plus-size model to sign a contract with Milk Model Management (UK). She is a character who always spreads positive thoughts to promote the spirit of self-love for women. It is estimated that a year of work of Tess Holliday earns 3 million USD. Photo: 20min. Iskra Lawrence entered the fashion industry after making it to the final round of the Elle Girl contest. According to Forbes, female models currently earn 2 million USD/year. Photo: @iskra. Tara Lynn was selected in a casting contest in Washington, USA. Success came to her when she appeared in the magazine V taken by famous photographer Sølve Sundsbø. Since then, Tara Lynn has become a favorite cover face. Vogue said her income is in the range of 1-1.5 million USD/year. Photo: Pop Sugar. Denise Bidot proudly shows off her stretch marks on famous catwalks. Not only is she a model, she also “catches the eyes” of many directors. The role in the hit series Habla: Women has raised her income to 1 million USD/year. Photo: Marie Claire, People. According to The Washington Post, Candice Huffine started pursuing a modeling career after an audience member suggested her to visit companies in New York, USA. She made her breakthrough when participating in the commercial campaign for Lane Bryant in 2000. The model also starred in a number of global fashion campaigns for Levi’s, Swarovski, Express and Anthropologie. Candice Huffine is the most talked about character at New York Fashion Week. According to estimates from Vogue, her annual income is 1 million USD. Photo:fashionmodel directory, telegra. In 2016, Precious Lee gained attention when she became the first black plus-size model to appear on Sports Illustrated. Lee dominated the fashion scene later that year, modeling campaigns for Kim Kardashian West’s Skims, Marc Jacobs, and Miu Miu. She also appeared on the cover of VogueItaly and on the Versace runway, Savage x Fenty. The popularity helps female models earn 1 million USD/year. Photo:@PreciousleeXoxo.

In addition, she also expressed her love for Prince Philip with jewels attached to her clothes or on her fingers. Prince Philip and Queen Elizabeth II. Engagement ring made from mother-in-law’s crown The British Queen’s engagement ring becomes special and historic when it is made from the crown of Princess Alice – Prince Phillip’s mother. This tiara was given by Tsar Nicholas II and Alexandra with the same jewelry set as a wedding gift to the heir to the British royal throne. Before proposing to Queen Elizabeth II, the deceased prince removed the diamonds on the crown to design a special engagement ring, with a 3-carat diamond placed in the middle and 10 smaller diamonds on both sides. He gave his wife the betrayal at Buckingham Palace, England. Engagement ring of the Queen of England. The bracelet marks the 5th anniversary of the wedding According to the Express The gold bracelet is studded with diamonds and rubies with the initials of Queen Elizabeth II and Prince Philip’s names engraved on the inside. This is a gift from the late prince to his wife on the 5th wedding anniversary. The jewelry is worn by the queen whenever she appears with the other half during major British royal events. Prince Philip presented a golden bracelet to the queen in 1952. Symbol for the relationship between the queen and the prince In 1946, Queen Elizabeth II was given a brooch before marrying Prince Philip. After that, the item became a symbol of their relationship. According to the The Telegraph A shipbuilder presented the queen with a chrysanthemum brooch made of platinum, diamonds and jade after she launched an oil tanker. Sometime after that, the accessory was named Honeymoon Brooch because the queen wore it on her honeymoon. After this, she continued to use it at the wedding anniversary party and during the time Prince Philip was hospitalized. The British Queen’s chrysanthemum brooch. The brooch is made from rubies The Scarab Brooch brooch made of gold, diamonds and rubies was given to the Queen of England by Prince Philip in 1966. This is a jewelry created by designer Andrew Grima. The Queen wears this accessory on many costumes while attending various events such as the 2008 trip to Slovenia. Queen Elizabeth II often used brooch made of gold and rubies. Heart-shaped accessories The Cullinan V brooch is made from an 8.8-carat diamond with smaller platinum stones. The public believes that the Queen of England wears heart-shaped accessories to commemorate her 70-year marriage. However, Vanity Fair argued that the queen’s item was related to British imperialism. She wears a heart-shaped brooch in response to protests calling for the demolition of the statue of Cecil Rhodes – former British Prime Minister of the Cape colony and founder of the diamond company De Beers – that took place in England at the time that point. Heart-shaped brooch on the British queens couple’s 70th anniversary.

“On the afternoon of April 9, when I opened the product, the fire found inside was a perfume box. Immediately I contacted the seller on Shopee and the general feedback is very sorry because the experience is not good, please return the goods to Shopee to handle “, Mr. Hieu recounted. D. Hieu added that on April 10, J&T Express delivery staff came to pick up the goods, did not ask to sign for confirmation. On April 13, Shopee updated the information that returned goods arrived and waited for 3-5 days to process. Customers receive perfume box instead of iPhone 12. Photo: Đ. Hieu. “On April 17, I received a message from a person talking from J&T Express wanting to watch the video I recorded and asking to confirm that the delivery order did not show any unusual signs,” Mr. Hieu shared. On April 19, J&T Express continued to call this customer to convince him to sign the order. “They said that this memorandum was signed only to confirm the outside condition of the product, not related to the product inside”, Mr. Hieu said. On April 20, Mr. Hieu received a call from Shopee informing him of not accepting the refund. According to Mr. Hieu, the reason given by Shopee is that the video does not capture all 6 sides of the box. “I really do not pay attention to how to shoot, even more do not know to turn all 6 sides of the box. The other box will be sent back in 3-5 days. That is nearly 19 million VND lost,” he said. Hieu said to Zing . According to customer D. Hieu, while receiving the goods, he found that the product box showed no signs of being peeled, just a little dented. Outside, correct bill of lading code, correct information and product name are still recorded. Mr. Hieu said there are full videos recording the process of receiving this goods. This is not the first time a customer buying an iPhone has received a product of no value. At the end of 2020, a customer in Dong Thap said he bought an iPhone 12 Pro Max but only received a stone. At the same time, Chu Quang Toan (Ha Tinh) received color pencils after ordering 2 iPhone 12 Pro Max. As a result, Best Express carrier took responsibility and compensated the customers. However, the cause of the incident causing the two “evaporated” iPhones has not been announced. At 12:00 on April 26, Shopee’s representative announced that he had contacted and would refund customer A. Hieu. “We are still working with shipping partners to clarify the issues related to this order according to the working process between the two sides”, a Shopee representative told. Zing . Shopee’s representative also recommends that users take safe steps when receiving goods such as video recording / taking photos of the 6-sided product of the package as proof of comparison in the event of a return claim. Refunds. Refuse or immediately notify Shopee of a sign of anomalous request from the shipper or similar carrier, for example, request to sign the consignment receipt or the status of the order is not At the time of delivery, the receipt / status of the order did not show the correct date / content for confirmation.

Notably, Jess does not go to the store to hunt for concert tickets or wait to buy new exclusive clothing lines. She just wanted to find and buy stuffed animals Patty the Cow. Jess’s two sons with a collection of 461 Squishmallow stuffed animals. Photo: Jess Columbus. Finally, Jess was held in the arms of a soft pink and lavender cow, which she has been searching for for the past three years. Answering the question why she yearns for Patty the Cow so much, Jess said: “Because it’s cute. I like cows and pigs the most. ” After hundreds of moves to hunt from store to store, the 40-year-old woman bought or traded 461 Squishmallow stuffed animals. Each has its own name and the story attached to the inside of the mark. “Hobby exploded into something bigger than I imagined,” Jess admitted. The mother of two even built a group of more than 600 members living in the city of Pittsburgh (Pennsylvania) on a social network to exchange and find more missing items. Even with 461 Squishmallow at home, Jess still yearned for more stuffed animals called Simone the Shrimp. “I’m crazy looking at Walgreens right now,” she said. Many toy stores have a limit to one Squishmallow per customer. Photo: Haley Velasco / The Wall Street Journal. Endless passion Squishmallow is like the fancy toy kids collect for years. Many “hunters”, even though they are too young, say it is a process of finding and adding to the collection. “The Squishmallow collection reminded me a lot of Beanie Babies, Tamagotchis and Furbies’ hunts in the late 90s. Is there anything new in the store? ”Kayla Hill (31 years old), a user experience researcher in Auburn (Washington state), told Wall Street Journal. In addition to her main job, Kayla also helps run the official SquishmallowSquad group of 13,000 members of this stuffed animal maker. Sydni LaPlaga’s (23) Sydni LaPlaga’s hunt for Squishmallow took her from the Manahawkin neighborhood to the Seaside Coast in New Jersey. Here, the girl tried 75 animal grabs over many hours only to get 2 Squishmallow size 21 cm. “I love these hunts”, Kevin Jackson (23 years old), boyfriend of Sydni, shared. He also makes videos of Squishmallow hunts with his girlfriend. In the late 90s, the trend of collecting Beanie Babies teddy bear was popular in the country of flags. Photo: Getty Images. However, not all hunts are successful. During the holidays, Sarah Wicker (17 years old) often spends time searching for Carol the Christmas Tree stuffed animals around stores near her home in Urbandale (Iowa). After a few weeks with no results, she got discouraged and switched to buying online. From the city of Gilbert (Arizona), Sammy Kirchner (32 years old) and his best friend Nikki drove for more than 6 hours to “find” a stuffed animal named Tex the Taco in Anaheim (California). Even though the mission failed, they were happy to go on this amazing trip together. Sammy also shares this hobby with her husband Brett (31 years old) with two children, Lacey (10 years old) and Liam (7 years old). She said her family makes collecting stuffed animals a joint activity that the whole family can do together. At present, the family has amassed nearly 200 Squishmallow. “It’s like hunting for treasure,” Sammy said. Her whole family is still looking for Maggie the Stingray cotton collection despite hunting more than 30 different shops. Magic fever On TikTok, the hashtag #squishmallows has reached 1 billion views, while #squishmallowhunting is 231 million views. Sarah Wicker spends a lot of time and effort getting her Squishmallow stuffed animal from her crane engine. Photo: Sarah Wicker. In early April, Jazwares LLC’s Kellytoy, the maker of Squishmallows, said it had sold 82 million units since its introduction in 2017, in more than 1,000 different versions and sizes. . The price range for each stuffed animal is 2.99-59.99 USD. Some limited editions may be priced when resold on websites. The company also said that the number of orders for spring-summer 2021 tripled compared to the same period in 2020. For mother and daughter Diane Bowser (62) and Amanda Bowser (30), the owner of The Learning Express and The Teaching Room in Morristown (New Jersey), the Squishmallow stuffed toy brought the customer. come back here. Some of them are willing to drive for hours from New York or Pennsylvania to buy them. “Squishmallow has become a commodity we cannot keep in stock. Every time they were on the shelf, people immediately ran in to buy, ”Amanda said.

Oxygen infusion is an important treatment for lethal virus positive patients. However, on April 22, 6 hospitals in India announced this essential item. According to the Indian Express If the country of 1.3 billion people continues to report hundreds of thousands of new cases every day, the demand for medical oxygen cylinders will rise sharply in 12 states of India. The case crisis caused the price of these medical devices to skyrocket. According to the Times of India , to buy an oxygen tank, the buyer has to spend 250–330 USD. Even, many advertisements for selling oxygen cylinders with prices ranging from 400–460 USD appeared rampant on social networks. Share with AFP On April 22, an Indian man said he had to pay $ 600 per bottle of oxygen, which was nine times higher than before the outbreak. According to World Bank data, the total annual income of the people of India is only about $ 2,120. The number of Coivd-19 infections in India has skyrocketed, making the price of medical oxygen cylinders extremely expensive here. Photo: Getty. The World Health Organization (WHO) said that the demand for medical oxygen is skyrocketing in 25 countries around the world, especially Africa. More than half a million patients with Covid-19 require oxygen therapy every day, meaning hospitals need 1.1 million oxygen cylinders to use within 24 hours. Brazil, Mexico, Peru, Egypt, Nigeria and other countries all declared a shortage of oxygen tanks as the number of cases increased. Worth mentioning, families of critical patients are forced to find and buy medical oxygen cylinders on the black market to save their loved ones’ lives. According to the Guardian, in Peru by 2020, the price of an oxygen tank was once pushed up to $ 1,000. In the UK, the Washington Post notes that a woman pays $ 1,300 for an oxygen tank, 1,000% more expensive than usual. According to the New York Times The 7-fold increase in the demand for medical oxygen in Mexico has enabled the black market to thrive. There are disputes and blocking of oxygen vehicles in some places, local reports say. Not long after, the price of medical oxygen cylinders sold on the black market had tripled. Brazil also experiences medical oxygen deficiencies during times of alarming number of cases. In Manaus, a city in Brazil, to buy a 50-liter oxygen tank, families have to pay nearly $ 1,200, 6.5 times more expensive than usual. However, the black market is not the only reason why the price of this medical device soared. Traffic and infrastructure are also factors that make this happen. Medical oxygen is usually produced by factories and cooled during transportation. In developed countries, oxygen is usually transported in a liquid form, making them less space-consuming and saving on transportation costs. However, the underdeveloped countries are only capable of transporting medical oxygen as a gas. Compared to the central hospital in London, hospitals in Kenya and Nigeria have to pay five to ten times more to buy a medical oxygen tank, according to the Press Bureau in the UK. According to the The Times At Mexico’s most difficult times, an oxygen tank cost more than $ 800, 10 times the cost of a US hospital. According to the Indian Express Most states in India have diverted oxygen production. Instead of serving industrial needs like the manufacture of steel, iron and glass, oxygen will be used largely for medical purposes. However, transportation in the country of 1.3 billion people remains a major obstacle. In particular, the centers of medical oxygen production are concentrated mainly in the East, while the demand for this item is increasing in other areas. The logistics costs were padded, pushing the price of an oxygen tank five times, from about $ 5 to $ 26. All India Radio News said the Indian police have been straightforward to prevent the proliferation of the “black oxygen” market. The state government of Uttar Pradesh announced that it would invoke the National Security Act and the Black Society Act to combat these marketing practices. In addition, in response to the crisis, India is planning to import 50,000 tons of medical oxygen. At the same time, the country is also setting up the “Oxygen Express” train to supply states severely affected by the epidemic. This train will depart from the Bokaro steel plant, carrying liquid oxygen. The Indian government has received much criticism for not upgrading its infrastructure from scratch to avoid the current shortages. “We did not plan this shortage even though we knew the second crisis was coming,” Dr. Lalit Kant, an epidemiologist, told the BBC.

1. Wrinkle reduction: Medical News Today says studies have shown pillows to compress the skin while sleeping, especially in people on their stomach or on their backs. Over time will cause wrinkles and other signs of aging. In the beginning, sleeping without a pillow can make you uncomfortable, but it has many benefits in the long run. Image: napodpktor. 2. Prevent back pain: The shape and size of many pillows can lead to an unnatural sleeping position. If you are new to not using pillows, choose a thin, light product for spinal alignment. Image: mattress express. 3. Avoid neck pain: If you don’t use a pillow, your head will be in a natural position. This helps prevent damage to nerves and muscles, helping you to experience less pain. In addition, pillows that are too soft also disrupt blood circulation to the neck, causing discomfort. Image: marylandpainandwellnesscenter. 4. Prevent acne: Acne is the result of dirt and oil build up on the face of the face clog pores. During sleep, your face will often stick to your pillow. Because pillows can become a breeding ground for bacteria, the skin condition worsens. Therefore, you should wash all pillowcases and sheets regularly. Image: skinclinics. 5. Skin is smoother: Your body needs to be hydrated to make your skin plump. However, cotton pillowcases can absorb the nutrients on your skin and make your skin less healthy. So, practice the habit of sleeping without using pillows to help smooth skin. Image: into the gloss. 6. Reduce skin irritation: If you have sensitive, acne-prone skin, sleeping on cotton pillows may not be the best option. Too coarse material rubs on the skin causing irritation, aggravating existing skin conditions. Therefore, you should switch to silk fabric instead if you are new to not using pillows while sleeping. Image: sesderma. Why are you prone to acne? Certain daily habits can cause breakouts, affecting your appearance.

Author/ Ren Yafei

Source / Benben Finance (ID: daxiongfan)

SF Express in 2021 is not going well at all.

Yesterday, SF Express announced its report for the first quarter of 2021. SF Express achieved revenue of 42.620 billion yuan, a year-on-year increase of 27.07%; net loss attributable to shareholders of listed companies was 989 million yuan, compared with a profit of 907 million yuan in the same period last year, a difference of 2 billion.

As early as April 8 when SF Express announced its first-quarter results forecast, the market reacted fiercely. SF Express’s stock price plummeted on the 9th. As of yesterday, SF Express’s closing price was 63.18 yuan, and its stock price has hovered at 63 yuan in the past week. From the historically highest price of 124.06 yuan to the present, in two months, the market value of SF Express has evaporated by more than 270 billion yuan.

Where did SF Express lose its money?

The official explanation is that during the Spring Festival, 1 billion was spent on subsidizing employees, transportation capacity guarantee costs, overlapping investment costs in resources, new business expansion and pre-investment, and so on.

Faced with investors’ questions, Wang Wei took the initiative to apologize, saying that the losses were mainly due to management negligence. From an analysis point of view, the epidemic suddenly led to an increase in transportation capacity guarantee costs and employee subsidies. This is a sudden and short-term impact, but the latter two are the long-term impacts caused by SF Express’s insistence on investing in the future.

Wang Wei, chairman and general manager of SF Holdings, once said, “SF is not only targeting the 400 billion traditional express delivery market, but the 12 trillion large logistics market.” “The competition that the express industry will really face in the future will not come from peers, but A high-tech company like Google”.

Therefore, Wang Wei, who has always adhered to the long-term doctrine, has spent the past three years spending lavishly on new business development.When Binfan Finance sorted out the investment and M&A trends of SF Express and its affiliated companies, it found that only There are 38 investment projects under the name of SF Holdings. The investment speed has accelerated since 2014, and slowed down in 2019 and 2020, especially in 2018, when the number of investment reached 12.

Is it true that SF Express buys and buys so lavishly?

From now on, SF Express seems to have fallen into a kind of long-term trap. The investment is too large, the return period is too long, and the new business does not seem to bring considerable growth to SF.

01 Where did SF Express lose money?

“I didn’t manage well in the first quarter, and I was responsible for it. I was negligent in management.” On April 9, Wang Wei apologized in response to investors’ doubts about the loss of SF Express.

This is also the first performance report of negative revenue growth that SF Express has handed over since its listing. In the 2020 annual report released in March this year, SF Express has just delivered outstanding results. In 2020, SF Express achieved revenue of 154 billion yuan, an increase of 37.3% year-on-year, which was much higher than the industry’s 17.3% growth rate, and its net profit attributable to its parent was as high as 7.33 billion yuan.

Regarding the performance loss in the first quarter, SF Express stated that there are five major reasons, namely:

1. Continue to increase the pre-investment of new business;

2. Since the fourth quarter of last year, temporary resource input has been increased to undertake the increase, which has put pressure on costs and increased capital expenditure input;

3. The company re-integrated the express network, express network, storage network and other resources, and there is a certain amount of resource overlap;

4. During the Spring Festival, subsidies for on-the-job personnel hit a record high, reaching 1 billion yuan;

5. The growth of the bulk order business of time-sensitive parts was lower than expected, and the gross profit of e-commerce parts was under pressure.

   These 5 reasons, except for the one-time expenditure of 1 billion yuan in employee subsidies, and the decline in SF Express’s gross profit margin due to industry competition, the rest are all As a result of SF’s cost problems, these expenditures are mainly spent on SF’s new business.

   

   SF Express’s 2020 financial report shows that as of the reporting period, SF Express invested a total of 14.155 billion yuan, accounting for about 9.2% of its revenue, nearly 1.2 billion more than last year , Including land, warehouses, sorting centers, airplanes, vehicles, information technology equipment, etc., among which sorting centers and aircraft have a relatively large investment, accounting for nearly 6 billion. In addition, investment in technology reached 4.273 billion yuan, a year-on-year increase of 16%.

   Judging from Wang Wei’s favorite aircraft, in 2009, SF Airlines had only 2 aircraft. In 2012, SF Airlines’ fleet expanded to 10 aircraft. In 2016, the scale has been expanded to 30. In 2017 and 2018, SF Airlines purchased another 10 aircraft. As of February this year, SF Airlines has bought 63 aircraft, making it the domestic cargo airline with the largest fleet.

   In addition, SF Express has also increased its investment in the construction of Ezhou Airport. In the first quarter of this year, three self-operated freighters were added. By the end of the year, the fleet size may reach 70. It is expected that Ezhou Airport will be put into operation next year.

   In simple terms, the reason for SF Express’s loss is that the increase in investment has led to pressure on costs; the explosive growth of business volume has brought about a bottleneck in production capacity; the investment in new business has not yet achieved profitability. In addition, the expansion plan of heavy assets, It is also accompanied by certain debt risks.

   And these increases in costs will hold SF Express for a long time to come. Wang Wei said that SF Express will certainly not lose any more in the second quarter, but the annual profit cannot return to the same period last year, because the battle will continue in the future and there are still many goals to be achieved in the next three years.

02 buy buy buy

If the reason for the loss is short-term investment, leading to increased costs, Wang Wei will not emphasize that the company’s annual profit cannot return to the level of the same period last year. What has SF Express bought in the past three years? how much did you spend?

Previously, Wang Wei said in an interview: “Our future will be to go into many industries, and to deepen many industries, rather than’last mile’ warehouse distribution. If this is the case, we will never deepen one industry. Using technology to upgrade this industry is the direction SF Express will take in the future.”

What SF Express has to do is to provide B2B2C integrated full-process supply chain logistics services. In February this year, SF Holdings announced that it would acquire 51.8% of Kerry Logistics at a total consideration of HK$17.56 billion. This is the latest investment in 2021.

In fact, whether it is this cooperation with Kerry Logistics or the previous cross-border exploration of e-commerce platforms, SF Express’s underlying logic has not changed, that is, to create a one-stop integrated logistics solution.

Wang Wei once publicly stated: “Today’s organizational structure and business model of the four major international express delivery giants can be used as a reference for SF Express’s future mid- and long-term development. , E-commerce distribution, etc. give another supplier’s operating mode, which may be adjusted in the near future. Therefore, we must invest resources to do a good job now.”

to this end, In recent years, SF Express has continuously made large purchases through investment and mergers and acquisitions .

Number of investment projects of SF Holdings and its affiliates from 2013 to 2020

According to the company’s data, As of March this year, there were 38 investment projects under the name of SF Holdings alone. In terms of time, SF Express did not make a single investment before 2013. The number of investments in 2014 was 3, the number of investments in 2015 was 7, and the number of investments in 2016 was 5. In 2017, the number of investments dropped to 2. At the peak, the number of investments was 12, accounting for nearly one-third of the number of investments. Since then, the investment speed has started to slow down again. There were 7 investments in 2019 and only 4 investments in 2020.

For example, in May 2017, UPS announced the establishment of a joint venture company with SF Holdings in Hong Kong; in March 2018, SF Holdings acquired Guangdong Xinbang Logistics for 1.7 billion yuan to increase its heavy cargo express business; in March 2018, SF Holdings issued an announcement, Hubei International Logistics Airport was approved, and the central budget, the Civil Aviation Development Fund, and the Hubei Provincial Financial Fund invested more than 8 billion yuan in total. In April 2018, 100 million US dollars led the financing of Flexport, a well-known American technology loan, to increase international business; In August 2018, we joined hands with Xia Hui, China Merchants and China Railway Corporation to increase the cold chain, shipping and railway business; in October 2018, it invested 5.5 billion in the acquisition of DHL’s supply chain business; in 2019, SF Express invested in Yiyoutong A+ Round of financing and so on.

The above are just some of the important key deployments of SF Express’s investment strategy in the past three years, and they are also frequently mentioned and familiar to everyone. In fact, in SF Express’s financial reports for the past three years, the long-term equity investment alone contains many other joint ventures or joint ventures’ investment arrangements.

Especially in 2018, China Yunda Airport Airport Ground Service Co., Ltd., Beijing Wulian Shuntong Technology Co., Ltd., Beijing Shunhe Tongxin Technology Co., Ltd., Zhejiang Kailux Technology Co., Ltd., Guangdong Shucheng Technology Co., Ltd., Xi’an Hua Joint ventures or joint ventures such as Han Airlines Passenger and Cargo Service Co., Ltd. and Qingdao Dakai Freight Forwarding Co., Ltd. have all received large amounts of new investment.

According to SF’s financial report, in 2018, all SF’s joint ventures will invest 12.159 billion yuan in new investment, and the new investment in joint ventures will be 402 million; in 2019, the new investment in SF joint ventures and joint ventures will be 105 million yuan and 179 million yuan respectively; 2020 This figure was 1.134 billion yuan and 378 million yuan respectively. In the past three years, SF Express has invested more than 14.4 billion in joint ventures and associates.

Classification of investment projects of SF Holdings and its affiliates from 2013 to 2020

From the perspective of industry distribution, the investment of SF Holdings basically revolves around the main business Among them, the logistics and warehousing industry has the highest number of investments, reaching 15; followed by corporate services, with 11 cases; e-commerce, with 6, ranking third. Others are the Internet of Things and artificial intelligence serving the main business, with 4 and 2 investments respectively.

Among these 38 investments, they are only publicly visible investment projects under the name of SF Holdings.

At the end of 2017, Meituan Wang Xing gave an internal speech. This speech shared his views on the supply chain and 2B business: “In the recent period, my judgment is that if the next wave of Chinese Internet wants to pick up, it will be a very The important direction is driven by innovation in the supply chain and the 2B industry, so this is the supply side.”

Wang Wei once publicly stated that SF Express pays more attention to the quality of revenue and provides high-quality services to mid-to-high-end customers than its business volume share. “SF is not only targeting the 400 billion traditional express delivery market, but the 12 trillion large logistics market. market”.

But after spending a lot of money on new business, what exactly have these investment projects brought to SF Express? From the current point of view, some are still being integrated, the effect is difficult to quantify, and the time cost is a major concern. When these businesses will create value for SF Express, there is even more uncertainty.

03 SF’s dilemma

From the perspective of long-term strategy, companies occasionally have short-term losses. It is understandable that as long as the strategic requirements can be met, there will be a return one day. However, in the process of company expansion, not all losses can be attributed to strategic losses, and blindly burning money cannot burn the future. While Pinduoduo, Meituan, JD.com and other major Internet companies have succeeded, there are also a number of companies that have been eliminated, such as Eggshell, Ofo, and Ruixing Coffee.

So, what kind of loss is considered a strategic loss of a company? Take SF Express as an example, the loss in the innovative business is a strategic loss.

SF Express’s business includes: time-sensitive express delivery, economic express delivery, express delivery, cold delivery and medicine, intra-city express delivery, international, supply chain and others. Among them, time-efficient express delivery and economic express delivery belong to SF Express’s traditional business. Among them, time-efficient express delivery mainly focuses on mid-to-high-end business items, and economic express delivery mainly focuses on low-end e-commerce items.

And SF Express, cold shipping and medicine, supply chain, etc. belong to SF’s new business.

From the perspective of the proportion of SF’s various business revenues in 2020, the proportions of timeliness, economy, express, cold transport and medicine, intra-city express, international, and supply chain are 43%, 28.6%, 12%, 4.2%, and 2 %, 3.9%, 4.6%, 1.46%. Compared with 2019, the proportion of revenue has clearly seen a decline in timeliness and an increase in the economy and express transportation. Among them, time-sensitive express delivery declined by more than 7%, and economic express delivery increased by nearly 5%.

On the whole, SF Express’s new business revenue accounted for 28.24% in 2020, which is an increase compared to 2019, but the growth is less than 3%. In other words, It still depends on the traditional business.

Chen Fei, director and deputy general manager of SF Holdings, also stated that although the proportion of economic items with a relatively low unit price in 2020 has exceeded the time-limited items, From the perspective of the overall revenue of the new business, the contribution to the company’s revenue is very limited.

In addition, unlike Tongda, which relies on e-commerce, SF Express’s core competitiveness is time-sensitive express delivery, and it has always been its cash cow. However, the main business of aging express delivery has also seen a growth ceiling in recent years. From 2017 to 2020, the revenue growth rate of SF Express Express was 1.40%, 14.30%, 5.93% and 17.41% respectively, with obvious fluctuations. In 2020, due to the impact of the epidemic, the growth rate will be relatively high.

Wang Wei once said that the company will not blindly burn money to do new business, but if short-term profit pressure can be exchanged for long-term competitiveness, it has the opportunity to build SF Express into an indispensable choice in the market and is willing to reduce its profit in the next 1-2 years. Rate expected.

But the problem is, SF Express has fallen into a long-term trap. The projects that have invested heavily in the past three years have not brought considerable growth to SF Express. There is also great uncertainty about whether it will bring deterministic growth in the next few years.

At present, the problem that SF Express has to solve is not only to ensure that the traditional time-sensitive express delivery maintains stable growth, but also to make breakthroughs in the areas of economy, express, cold, international, intra-city, and supply chain.

“I don’t believe in chance, why is there chance? I believe in chance because of ignorance. I suddenly win a big prize. If I don’t know why, I feel like chance. When all the factors are brought together, you can compare them. You will know that this is inevitable. What we have to do now is to use this good platform of SF Express to turn many uncertain and seemingly accidental things into inevitable in the future.”

Looking at it now, the accident in Wang Wei’s mouth becomes inevitable for SF and it still takes time.SF Express falls into the trap of long-termism

This outfit is coordinated to wear to go out with friends every day. Loving the sexy style, I choose a dress cut, but not objectionable thanks to the criss-cross strings. I wear inside a see-through crop-top and over a thick fur coat to hide sensitive spots on my body. Choosing the color of the outfit helps me to show my positive spirit. A blue shirt that can be combined with a pastel pink jacket does not confuse others when accompanied by neutral color items. For a more cheerful outfit, I often add accessories such as necklaces, smiley bracelets. The main highlight is ballet-like dance shoes with dynamic high soles, as well as more personality when attaching metal knots on the body. Every time I leave the house, I think about what to wear to make myself confident, beautiful and able to transmit positive energy to the other person. My style for expressing emotions. I realize that fashion is what helps us to reduce depression, relieve and rediscover ourselves. The clothes I wear every day reflect a lot about life. The colors on the items make me feel happy, so everyone knows who I am. After the participation period The Face I stood still and didn’t know what to do next. I lost my emotions and balance in life. Luckily meeting my friends, they helped me regain my interest in dressing. They do not impose me in any style, but instead point out what is appropriate and applicable to everyday fashion. Dressing well also makes people find their own ego and personality. I often learn to dress every day by following the young world on Instagram. After a short while, I felt my fashion mindset better. For me, wearing better will earn the respect of others.

Mr. Buffett has achieved a high compound income growth rate in the past half-century, beating the S&P 500 index. In the field of global investment, he is a unique existence, so he is regarded as a “stock god”.

When it comes to successful experience, Mr. Buffett always talks about the concept of “value investment”. So what is value investing? What is the magic of this investment philosophy?

The author believes that the investment in American Express is a good example of the value investment philosophy that Mr. Buffett insists on. As of the end of 2020, American Express, which holds 152 million shares, is the fourth largest stock of Berkshire Hathaway under the control of Mr. Buffett. Since then, American Express shares have risen by 20%. This has increased the value of Berkshire Hathaway’s holdings in American Express by approximately US$4 billion, reaching US$23 billion, which has exceeded the value of its holdings in Coca-Cola stocks.

The story between Mr. Buffett and American Express does not stop there. It has been 25 years since the father started with American Express. Since 1998, he has never adjusted the position of American Express. This means that Mr. Buffett invested 1.3 billion U.S. dollars to build a position in American Express, and his income so far is nearly 18 times.

This shows how wise Mr. Buffett’s decision to invest heavily in American Express was. The old man looked at the overall situation of the global economy and determined that this credit card company has huge room for business development in the future and will bring him stable and strong cash returns. Facts have proved that the judgment of “stock god” is completely correct. The selection of individual stocks is the first priority and one of the core of the value investment philosophy.

Another core concept of value investing is centralized investment. Since Mr. Buffett is very optimistic about the development prospects of American Express, he invested heavily. At present, Mr. Buffett’s largest holding stock-Apple’s holding value accounts for about 48% of his total holding value, which is also a very good embodiment of the concept of centralized investment.

Another core concept of value investing is long-term holding. Berkshire Hathaway has held American Express for 25 years and has never adjusted its position since 1998. Because the value of a really good company is like a pot for a long time, the longer it will last. Mr. Buffett’s other heavyweight, Coca-Cola, has a longer holding history than American Express.

Of course, the value investment philosophy does not mean “set in stone”. Regarding another former “good-hearted” bank-Wells Fargo, Mr. Buffett significantly reduced his position last year, mainly because of major problems in the operation and management of Wells Fargo Bank. Therefore, investors’ use of value investment concepts must also change with time, with events, and with local conditions.

JerryZang

Disclaimer: The content and opinions of this article are for reference only and do not constitute any investment advice. Investors operate accordingly at their own risk. For all accurate information about the market, please refer to the relevant official announcement. Market risk, the investment need to be cautious.

“OTE” received millions of yuan in angel round financing. The new and existing shareholders jointly participated in the small appliance brand ote OTE (hereinafter referred to as OTE). Recently, the multi-million yuan angel round of financing was completed by Hanergy Capital and Huakai Assets ( Chuanhua Holdings) Joint Investment, Weitou Innovation and Jinghe Capital acted as financial advisors for this round. This round of financing will be used for brand building, product research and development, team building, supply chain improvement, marketing and channel construction, etc. OTE once completed a seed round of financing led by Weitou Innovation in the second half of 2020.

Whale standard display: OTE OTE was established in February 2019. It is an aesthetic small appliance brand operator. It faces new middle-class users. It focuses on high-quality, high-value and affordable prices. It hopes to use small appliances for a better life as a carrier. Users convey the life philosophy of “every moment, enjoy life”, and are committed to creating an IP-based family series of aesthetic small home appliances brands for billions of new middle-class consumer groups.

“Modou Technology” completed the Pre-A round of 5 million financing and was chased by angel investors. Recently, Guangzhou Modou Information Technology Co., Ltd. (hereinafter referred to as “Modou Technology”) has completed the 5 million yuan Pre-A round of financing in early 2021. This round is pursued by its angel investors. This round of financing will be used for product development and marketing.

Whale Standard Display: Modou Information Technology Co., Ltd. was established in March 2018. It is an innovative technology company that uses Internet and Internet of Things technologies to improve labor efficiency in the construction industry.

“Avocado Technology” completed tens of millions of Pre-A rounds of financing, and Shunwei Capital led the investment. Recently, “Avocado Technology”, a SaaS service provider that provides intelligent solutions for large-scale recruitment, completed tens of millions of yuan in October last year. In the Pre-A round of financing, Shunwei Capital led the investment, and the old shareholders Sequoia China, Jinshajiang Venture Capital, and Qiji Ventures followed up. The amount of this round of financing will be used to invest in product development and sales team system construction. dvd.com.cn/china.org/cn/index.php?==========================================================================================================================================================================================================================2

Whale Standard Display: Avocado Technology was established in August 2019. It is an intelligent recruitment service provider dedicated to providing users with intelligent recruitment services based on artificial intelligence to improve the interview process and human resource evaluation.

“Yingke Cloud” completed a multi-million RMB angel round of financing. Ruma Capital led the investment. Recently, the digital marketing solution service provider Yingke Cloud completed a multi-million RMB angel round of financing. The investors are Ruma Capital (leading investment), Huawan Zhongmu.

Whale Standard Display: Established in March 2020, Ercheng Technology is a full-link digital intelligent marketing cloud platform provider. Its “Yingke Cloud” marketing platform matrix includes “ABM Jike Cloud + PRM Partner Cloud + CEM Experience Cloud” The three major products, with business + data as the core capabilities, help companies establish a closed loop from marketing and sales to partner distributors and end users through multi-channel integration, multi-marketing scenario services, user and product data insight analysis, and automated marketing engine drive. Channels help companies reduce customer acquisition costs, speed up transaction conversion, and improve channel dealer effectiveness.

“Bianmei Diary” completed tens of millions of yuan in Pre-A round of financing, Ceyuan Ventures led the investment Recently, Bianmei Diary completed tens of millions of yuan in Pre-A round of financing, led by Ceyuan Ventures, and Lingbo Capital served Exclusive financial advisor. This round of financing will be mainly used to build a private domain system and deepen the supply chain system.

Whale Standard Display: Founded in April 2020, Bianmei Diary is a medical beauty live broadcast e-commerce company. The company combines medical beauty institutions, anchors, and doctors to form an industrial chain, and promotes the conversion rate of medical beauty projects in the form of live broadcast. Operate in the mode of receiving live broadcast sharing.

“Xingyun Zhilian” completed hundreds of millions of yuan in financing, and Hillhouse Ventures led the investment. It is reported that Zhuhai Xingyun Zhilian (hereinafter referred to as Nebulas Zhilian) announced the completion of hundreds of millions of yuan in angel round financing, led by Hillhouse Ventures (GL Ventures), CDH VGC (CDH Innovation and Growth Fund) and Walden International China Fund participated in the investment.

Whale Standard Display: Nebulas Zhilian was established in March 2021. It is a DPU chip developer. It focuses on the research and development of basic interconnection communication architecture and chips in the data center field. It can provide users with smart network card chips and DPU chip products.

“Vomma Technology” received tens of millions of Pre-A round of financing, Atomic Ventures has exclusive investment. Recently, “VOMMA” (VOMMA), a provider of 3D machine inspection solutions for light field cameras, has completed a Pre-A round of investment, and the amount has reached Ten million levels. This financing was exclusively invested by Atomic Ventures. Li Haotian, CEO and co-founder of Yimu Technology, said that this round of financing will be used to increase R&D investment, team building, and procurement and construction of production equipment.

Whale standard display: YiMu Technology was established in July 2019. It is a manufacturer of industrial light field 3D cameras. Through bionic insect compound eye imaging, tiny compound eye sensors are precisely packaged into a 3D light field camera, which can be applied to 3D defects and 3D dimensions. Fast and precise inspection field.

“Keao Information” completed the Pre-A round of financing, with the participation of new and existing shareholders. Recently, Guangzhou Keao Information Technology Co., Ltd. (hereinafter referred to as: “Keau Information”) has completed the Pre-A round of financing. This round of financing is jointly invested by Zhongguang Investment and Lihua Investment, and will be used for platform system research and development upgrade, curriculum product research and development, market promotion and brand building.

Whale Standard Display: Keao Information Technology was established in July 2014. It is an academic exchange platform provider, providing AIScholar one-stop academic service platform, digital academic conference management system, AIReviewer intelligent reviewer platform and other platforms, oriented to academic exchanges , Provide a one-stop service system for academic exchanges in the field of higher education project operation.

According to news on April 12, Pinduoduo has recently issued a statement through the merchant version of the App, clarifying that there is no special cooperation or investment relationship with Jitu Express. Pinduoduo is eager to clarify the relationship, or it may be related to the fact that Jitu Express was rectified by relevant government departments due to “low-price dumping”.

It is reported that this “dark horse of express delivery”, who had been rumored frequently with Pinduoduo, started in Southeast Asia. In early 2020, Jitu rushed into the Chinese market with a high-profile attitude of burning money at a low price. It only took a year for the daily order volume to be related to Tongda. It is worth more than 50 billion yuan. Its founder, Li Jie, has an OV background, and his aggressive strategy of burning money for scale is quite “smart style.”

Since the beginning of this year, Jitu has not been afraid of banning the express delivery giants, relying on the resources of the OV series to continue to hold high, even boasting that it will break through 40 million tickets/day by the end of 2021 and hit the market in mid-2022; To be the third in China within three years.

However, the growth rate of the express delivery industry is slowing down, and industry barriers are extremely high. It is necessary to carefully build a capillary-like network and accumulate scale advantages for a long time. To achieve the above goals, it is not realistic to burn money to snatch the cake from others. The only choice seems to be Pinduoduo, the fastest growing e-commerce rookie.

Raised 11.8 billion, with a valuation of 51.1 billion

According to media news on April 7, J&T Express has completed a US$1.8 billion (approximately RMB 11.8 billion) financing, with a post-investment valuation of approximately US$7.8 billion (approximately RMB 51.13 billion).

The investors behind are also quite luxurious, Boyu Capital led the investment of US$580 million, and Sequoia and Hillhouse also followed suit. It is rare for three top funds to simultaneously grab a share of financing from a young company.

Surprisingly, this dark horse of express delivery with a valuation of more than 50 billion has only been established for six years and entered the Chinese market for only two years.

In March 2020, the extremely rabbit express service was officially launched in China. After only two months of operation, the entire network’s business volume exceeded 2 million; during the 618 promotion period, the entire network’s daily order volume has stabilized at more than 5 million; On the day of Double Eleven last year, the number of tickets issued exceeded 16 million, which is comparable to the Tongda system.

In fact, express delivery is a very “involved” industry. There are two types of domestic express companies, one is the franchise model represented by Tongda, and the other is the direct operation model represented by SF Express and JD.com. Generally speaking, express delivery companies represented by the Tongda system have been developing hand in hand with the entire e-commerce industry for many years and have a high moat in terms of scale and single ticket cost; while self-operated investment is relatively large, the model is heavier, and new entrants to the market It is difficult to form substantive challenges in the short term.

With the help of capital and the experience of the giants, the newly entrant Jitu chose the “self-operated + franchise” model, that is, the transfer center is directly operated and the terminal outlets are joined, so it can expand efficiently.

According to the information disclosed by the company, its self-operated outlets have reached 4,500+ and franchised outlets have reached 1,000+ (including Southeast Asia). The company’s national provincial and municipal coverage has reached 100%, and 77 transshipment centers have been established, with more than 2500 trunk transportation vehicles.

In January 2021, the daily order volume of Extreme Rabbit Express exceeded the 20 million mark for the first time, becoming the only express company in the Chinese market that does not rely on Ali or JD.com. This is also a recognized break-even in the express industry. line. Some people in the industry have suggested that this does not mean that Jitu has been able to make a profit, because it is still in the expansion period of burning money, and the volume of express orders has not stabilized. However, for the young Jitu, it is too early to consider profitability, and the company is not too concerned about whether it makes money or not.

At the beginning of April this year, there were market rumors that Jitu plans to conduct an IPO of more than 1 billion U.S. dollars in the United States. According to media reports, since Jitu is already preparing to go public, it may no longer have private equity financing. The tens of billions of financing this time has a high probability of being a Pre-IPO round. As of press time, Jitu official has not yet made any positive response to the listing rumors.

It is worth noting that the latest valuation of Jitu has surpassed the franchised express delivery giants such as YTO, Shentong and Yunda, and is second only to Zhongtong, which has been operating for 19 years (the Hong Kong stock market is valued at about 1,600 yuan). In self-operated express delivery, the market value of SF Express is about 300 billion yuan, and the estimated value of JD Logistics, which is about to go public, exceeds 250 billion yuan.

At present, the ratio of Jitu’s self-operated to franchise is about 9:2, and self-operated still occupies the majority. Market participants believe that Jitu’s current valuation of 50 billion still has a lot of room for improvement. If it can be listed, its valuation is expected to be against the 100 billion giants.

The OV series “barbarians” enter the express arena

As a dark horse that successfully entered the express industry, it has a lot to do with the founder of Extreme Rabbit Express with a background of “OV series”.

According to public information, the founder of Jitu Express is Li Jie. He joined Jiangsu Anhui BBK Company in 1998; he became the general manager of OPPO Jiangsu and Anhui regions in 2008; he was the head of OPPO Indonesia in 2013, leading the OPPO team to open up the Indonesian market and become the market The number one mobile phone brand in shipments.

In August 2015, in the context of the rapid growth of the Southeast Asian e-commerce market, relying on OPPO Indonesia’s network throughout the country, Li Jie established a technology-based express company J&T Express, which is also called Jitu Express. In just four years, Jitu quickly grew into the top e-commerce express brand in Southeast Asia. At present, the company has more than 5,500 directly-operated and franchised outlets, currently employs more than 60,000 people, and receives an average of 1.8 million parcels per day.

In September 2019, it was reported for the first time that Extreme Rabbit Express wanted to enter the Chinese market. Some market participants said that Polar Rabbit was considered to be a logistics carrier for Pinduoduo. After that, Alibaba and JD.com made a series of layout adjustments in the logistics field, which may have quietly “challenged”.

In March 2020, Jitu Express completed the system docking with Pinduoduo, Suning Tesco, and JD.com, and the official website of China was also officially launched, marking its official entry into the Chinese market.

Behind the rapid growth of Jitu, it actually benefits from the “point-to-point feeding” of the OV system’s traffic. For example, OPPO, as the mobile phone brand with annual shipments of hundreds of millions and ranking third in domestic sales, has more than 200,000 offline retail stores nationwide. In the terminal delivery part, Jitu can deeply participate in the offline delivery of 3C electronic products such as OPPO mobile phones, so as to quickly build a delivery network in China, especially in 3-5 tier cities.

In addition, the market generally believes that Jitu may be “deeply bound” with the e-commerce rookie Pinduoduo, eating the future increment of the express industry-the big cake of sinking the market, and it can develop rapidly.

Prior to this, the relationship between Jitu and Pinduoduo had been rather ambiguous, and the two sides did not admit it or deny it explicitly. In fact, it is said that more than 80% of Jitu’s business comes from Pinduoduo.

But recently, after Extreme Rabbit was punished for its low-price war, Pinduoduo issued an emergency statement to clarify the relationship. It pointed out that in the process of developing customers, some branches and staff of Jitu Express recently communicated to merchants that “Pingduoduo orders can be exempted from false delivery related penalties and the probability of being punished is low” and “Pingduoduo” “Investment, the two parties have a special cooperative relationship” and other news are false.

Pinduoduo stated that the purpose of the “Pinduoduo Shipping Rules” is to regulate merchants’ delivery behaviors and ensure consumers’ shopping experience; Pinduoduo adheres to platform-based operations, and the special guarantee cooperation with Jitu Express during the Spring Festival was launched in February 2021. At the end of the 22nd, the platform’s shipping rules will be implemented in accordance with the unified standards announced by the platform, regardless of which express company the merchant chooses for delivery.

In addition to the support of resources, the brand of “OV Series” is more reflected in the management style. For example, Jitu’s core strategy is to fight a “blitzkrieg” by burning money at a low price.

It is reported that in Yiwu, the general cost price of express companies is 1.4 yuan per order, and the income of each package is mostly 1-3 yuan. The price of the Extreme Rabbit is basically close to that of the Tongda series, which is famous for its cost-effectiveness, and it was even lower than the Tongda series by about 1 to 1.5 yuan per order. There were also very rabbit franchisees in order to sprint sales, hesitate to receive at a loss price as low as 0.8 yuan per piece.

It is worth mentioning that the polar rabbit has two powers. Not only give the sender a low price, but also give the courier a high price in terms of transportation staffing. According to the data, when the Tongda express delivery fee has repeatedly dropped and the courier strikes, the courier of Extreme Rabbit Express is holding 2 to 3 times the delivery fee of the Tongda express delivery.

However, the aggressive low-price war strategy is suspected of affecting the normal order of the industry, and the high-profile behavior of Extreme Rabbit has long attracted the attention of the regulatory authorities.

According to news on April 7, Yiwu Post Management Bureau confirmed that Jitu Express was diagnosed and treated due to “low-price dumping”. The main measure was to stop some distribution centers, which had been implemented on the same day. The warning letter issued the day before showed that the bureau had notified Jitu Express four times that it would not dump at a price far below the cost, but the company did not rectify it as required.

The future of “express dark horse”

In recent years, as the industry’s growth rate has slowed down significantly, it has become a consensus that incremental changes to stocks have become a consensus. The competition among top players has become more intense, making it more difficult for outsiders to get involved. After the waves hit, the old express delivery giants will naturally not wait to die, and have stood up to “encircle and suppress” extremely rabbits.

For example, Yunda issued the “Notice on Prohibiting the Agent of Jitu Business on the Whole Network”, which requires that both ends of Lanpai shall not act as agent of Jitu Express for any reason or in any form. At the same time, YTO also issued the “Punishment Notice on Acting for Jitu Business” on its intranet, imposing a penalty of RMB 30,000 on the branch companies involved in illegally acting for Jitu business.

Nowadays, the pattern of the express delivery industry has become clearer, and all companies seem to have “occupied the mountain as the king.” Industrial Securities pointed out in the report “Research and Judgment of Express Industry Trends in 2021” that the franchise express delivery industry is accelerating its differentiation: Jitu is following the rapid expansion of Pinduoduo; Zhongtong and Yunda tend to be neutral to e-commerce platforms; Yuantong, Shentong and Best, which have more shares, have become more dependent on Ali. This also means that the future competition in the express delivery industry will turn into grabbing meat from other people’s bowls.

Although from the perspective of the company’s customers in Southeast Asia, Extreme Rabbit maintains close ties with e-commerce platforms such as Alibaba’s lazada and Alibaba’s Tokopedia. But in terms of domestic business, it seems that it is more difficult for Jitu to get a piece of the pie in the existing e-commerce market.

In addition to external troubles, there are also internal concerns. For example, if the pace of expansion is too fast, it is easy to leave sequelae. Now the quality of Jitu’s delivery is worrying.

Compared with other express companies, Jitu’s “infrastructure” in terms of transshipment centers, vehicles and equipment, and staffing is still very weak. Reflected in the quality of delivery, according to the data released by the State Post Bureau, in December last year, the rate of complaints about orders received from users to the postal system was 0.06%, which was more than three times that of YTO.

So where is the future growth point for the thriving Polar Rabbit?

On the one hand, the company’s expansion has not yet seen a slowdown, and the domestic business is simultaneously advancing at a high speed. According to reports, since March 1st, Extreme Rabbit Express has been fully operational in Guangdong, Shanghai, Jiangsu, Shandong, Anhui, and Zhejiang (part of) provinces and regions, and will be gradually opened in other regions in the future.

In addition, international business such as overseas and cross-border will be able to provide great support for Extreme Rabbit to fight in the domestic market. In January of this year, Extreme Rabbit International was formally established. Relying on the network deployed in Malaysia, Singapore, Vietnam, Thailand and other places, it began to provide international express (international standard express and international parcel) services. In March, the Group’s first all-cargo aircraft flew at Budiaalto Airport in Tangerang, Indonesia, which symbolized the company’s official opening of the aviation high-end parts business segment.

The analysis point of view pointed out that Jitu’s internationalization capabilities are better than other domestic express companies. It can rely on the advantages of overseas outlets to focus on breaking through cross-border e-commerce customers and form differentiated services.

On April 9, Jitu was fined for dumping at a low price and rushed to the top search list on Weibo. On the same day, Yiwu Post Administration issued a warning letter to Jitu, stating that Jitu Distribution Center and multiple express mail processing sites had potential safety hazards. Yiwu Post Administration had notified Jitu four times and warned that “Do not use far “Dumping at a price lower than cost”, but Jitu has not rectified as required, so it sent a letter requesting it to make rectification.

Jitu Express was previously considered to be a Pinduoduo department. After it was punished, Pingduoduo issued a statement on April 12, clarifying that it has no special cooperation or investment relationship with Jitu Express. At the same time, in the process of developing customers for some of the Super Rabbit Express outlets, the staff distributed to the merchants “Pinduoduo orders can be exempted from false delivery related penalties and the probability of being penalized is low”, “There are Pinduoduo investment, If the two parties have a special cooperative relationship” and other false information, Jitu Express will be punished by increasing the margin for business cooperation.

According to media reports, in March, Jitu Express adopted a strategy of strong subsidies. As a result, the price of Yiwu Express delivery was hit below 1 yuan. Small items with a daily shipment of more than 10,000 pieces can be delivered at 1 yuan, which is the lowest in quality. Can do 8 cents. (Text | Qiao Yu of AI Finance and Economics Agency)

Image source @Visual China

Article | 20 Agency, Author | Ma Cheng, Editor | Jia Yang

SF Express lost 900 million yuan in the first quarter, which brought a knock-on effect to the most profitable express delivery leader.

Following last Friday’s one-digit limit, SF Express once again dropped the limit on April 12, and its market value has been nearly cut in half since its historical high on February 18, evaporating more than 200 billion yuan.

There is no warning about the huge loss.

On April 8, SF Express released its financial report for the first quarter of 2021. The financial report shows that in the first quarter of this year, the company is expected to lose 900 million to 1.1 billion yuan, while in the same period of 2020, the company will make a profit of 907 million yuan under the epidemic. Just last month, SF Express released its 2020 financial report data showing that the net profit attributable to shareholders of listed companies was 7.326 billion yuan, a year-on-year increase of 26.39%.

For this reason, on April 9th, Wang Wei apologized to shareholders at the general meeting of shareholders: “First of all, I would like to apologize to shareholders, because I think the first quarter really did not manage well.” He admitted that he had negligence in management, similar The problem does not appear a second time.

Why did SF Express, with thick eyebrows and big eyes, also start to lose money? Various market rumors have been circling around, trying to explain this unexpected incident. Among them, the most gimmicky, and at first glance, the most “ultimate answer” is that taxation and government affairs have brought a fatal blow.

Industry Viewpoint Source/Weibo

But this is not the core of the problem, and it has greatly misjudged the real competitive landscape of the express industry.

What is the real answer? What kind of changes will the express delivery industry, which is mired in price wars, usher in? What is the logic for the decent top student SF Express to choose to join the “introduction”? How to judge the future of SF Express?

What happened to SF Express?

After the financial report was released, Wang Wei publicly explained the losses of SF Express.

Shenzhen Stock Exchange released SF Express loss announcement source/official website

On the one hand, due to the slower-than-expected growth rate of time-sensitive parts in the first quarter, the expected profits did not appear; the growth of superimposed economic parts caused false high costs and was also part of the reason for losses.

Prior to this, the fundamental advantage of SF Express’s stable business lies in its “time-sensitive parts”, which are stable, efficient, and safe, and are basically a must-choice for commercial products. It has always contributed a high profit margin to SF Express.

There is a view in the industry that due to the conversion of electronic invoices and electronic contracts, the number of corporate orders used for SF Express’s distribution has been greatly reduced.

In this regard, Zhao Xiaomin, deputy director of the Post and Express Special Committee of the Shanghai Transportation Commission, believes that electronic invoices and electronic contracts will not have much impact on SF’s business.

From the beginning of the pilot program of electronic invoicing in 2012, to the end of 2019, the nationwide unified electronic invoicing public service platform was built, and the country has accelerated the promotion and application of electronic invoicing. A certain fiscal season.

In the 2020 annual report, SF Express’s time-sensitive parts still achieved revenue of 66.3 billion yuan, a year-on-year increase of 17.41%. The growth rate in the first quarter was not as fast as expected. According to the analysis of various brokerage research reports, there were also reasons for the huge increase in demand for time-sensitive parts during the epidemic last year, which resulted in an abnormally large base.

Regarding the slowdown in growth this quarter, Wang Wei gave two solutions. One is to continue to explore “time-sensitive” customers; the other is to use data to reflect specific scenarios in the supply chain, so as to make more refined for different customers. Operations. In the next step, SF Express will further optimize the upgrade of time-sensitive products-forming a new product system including SF Express, Express and Standard Express.

If there were obvious decision-making errors in the first quarter, it was a waste of labor costs during the Spring Festival.

In response to the government’s policy of in situ New Year, the Spring Festival overtime subsidy was close to 1 billion yuan, which was three to four billion yuan more than expected. Wang Wei especially emphasized that the cost of guaranteeing capacity during the Spring Festival is relatively high, and the lack of business volume of time-sensitive products has resulted in a high cost input.

It is worth noting that the 2021 Spring Festival, including Ali, JD.com, Pinduoduo, and Four Links, are all promoting “not closing”. Delivery as usual during the Spring Festival holiday.

As far as Quanxian understands, during the Spring Festival, many express outlets left enough couriers, but the total number of orders has not soared compared with previous years. More people stay in place, but the workload is not saturated, which undoubtedly increases the company. cost.

“This year’s Spring Festival is not closed during the Spring Festival, but the results are so great. Each company should match according to demand. Otherwise, e-commerce and logistics will be “involved” together.” Bailian Consulting founder Zhuang Shuai believes.

On the other hand, the rapid growth of “economy” in the first quarter was behind the price of participating in a bloody price war. After the proportion of economic items in 2020 exceeds the time limit, SF Express’s revenue per ticket in 2020 will be 17.77 yuan, compared with 21.94 yuan in the same period last year, a year-on-year decrease of 18.99%. In the first quarter of this year, e-commerce products continued to exert strength, and the gross profit margin fell from 17.42% to 16.35%.

“Economic parts” in SF’s financial report mainly refers to “special express mail” mainly based on e-commerce parts. However, the competition for e-commerce parts is fierce, and SF has no choice but to participate in the war with a low price model. As a result, although there are many “economic parts”, the profits are not high. .

Finally, Wang Wei also explained that another reason for the loss is the investment in new businesses, such as the purchase of new aircraft, the construction of airport capacity centers, and the adjustment of the transportation network to undertake economical businesses and optimize cost efficiency.

“More than one logistics company” is a story that SF Express has been trying to tell. In addition to the basic plate of time-sensitive parts, e-commerce parts are indisputable. New businesses such as express delivery, cold delivery and medicine, intra-city express delivery, international express delivery, and supply chain are also new battlefields for SF Express. It can be seen from the financial report that the growth rate of new businesses such as international express delivery, intra-city express delivery, and supply chain is very impressive.

Source of development expenditure in SF Express’s 2020 annual report/official website

“How to better match the product operation model with resources, and how to form economies of scale between the entire links.” Wang Wei stated, “In the first quarter, it happened to be the flash point for these issues to collide with each other, and the company will form a better prevention mechanism. And countermeasures, we will not have this kind of problem in the future.”

SF Express pointed out that the cost input in the first quarter was difficult to “stop bleeding” quickly, and it is expected to gradually improve in the second quarter and beyond. “A more complete track and product matrix will bring SF Express a broader user base, larger market space, and better scale synergy. With the rapid growth of new businesses, it will gradually release pattern dividends and scale dividends.”

Profitable students who were “involved”

Taking orders for “time-sensitive parts” from major companies does not allow SF Express to sit back and relax.

Beginning in 2018, SF Express entered the e-commerce market and launched a “special offer”. In grain-producing areas such as Zhejiang and Guangdong, SF Express’s preferential price has dropped to about 3 kilograms and 3 yuan. For an average weight of more than 2 kilograms, SF Express has taken away many customers who originally belonged to the Tongda department.

E-commerce parts were originally a world of three links and one access, but Cainiao and JD Logistics appeared later. While deploying e-commerce, they also continued to impact SF Express’s high-end customers. Previously, when JD Logistics submitted its prospectus, its valuation had exceeded US$50 billion, second only to SF Express in the logistics industry. At the same time, JD Logistics also emphasizes supply chain solutions for 2B business.

“SF Express entered the e-commerce software too late. Not only was it less than the three links and one connection, but also caught up with Pinduoduo and JD.com’s entry node. The original advantage was greatly weakened.” Zhuang Shuai believes.

In fact, in the field of e-commerce, express delivery companies represented by three links and one delivery have never stopped price wars. Yiwu, where the express industry is anxious about competition, has repeatedly exploded the tragic situation of price wars. After the rising star Extreme Rabbit entered the game, the “1 yuan” express was once launched in Yiwu, and the bloody level of the price war set a new record.

At the time of the rise of Taobao, small and medium-sized e-commerce companies blossomed everywhere in Yiwu; Pinduoduo’s rise, and small commodity e-commerce ushered in heavy growth; last year, the epidemic accelerated the popularity of live broadcast and promoted online sales. The rise of national e-commerce has triggered a new era. Poland’s express industry turf battle.

SF Express, which has repeatedly failed in the e-commerce market, can no longer miss the opportunity in this wave. In order to expand the business of “e-commerce parts”, SF Express, which has never participated in the express price war, will also join the game of express price war in 2020.

SF Holdings Secretary General Gan Ling once revealed that the cost of special offers was more than 10 yuan in the past, and the cost in 2019 has been reduced to less than 10 yuan, but there is still a distance from the 5 yuan unit price for customers. In early 2020, the target positioning cost will be reduced again. 50%.

Behind the continuous price reduction, SF Express’s overall profit and single ticket revenue have been affected.

SF Express’s overall gross profit margin in 2019 decreased slightly by 0.5 percentage points from the previous year to 17.42%; in 2020, SF Express’s overall gross profit margin dropped to 16.35%.

From January to February 2021, the business volume of the three links and Yida achieved a year-on-year increase, but the profitability was reduced: the express delivery revenue of SF Express, Yuantong, Shentong, and Yunda was 17.26 yuan, 2.38 yuan, 2.51 yuan, 2.23 yuan, a year-on-year decrease of 12.4%, 19.3%, 23.9%, 22%.

Although Zhongtong did not separately disclose the single ticket revenue, CFO Yan Huiping said: In 2020, the price of a single ticket for Zhongtong has dropped by about 20%.

In order to further reduce costs, SF Express opened its test and opened up direct sales, pulling up another low-priced franchise “Fengwang.” In the second half of 2020, “Fengwang” will enter the testing phase. SF Express revealed at the 2020 financial report that Fengwang broke the daily average of 1 million orders during Double Eleven in 2020, and its current business volume is around 1 to 2 million daily. “However, Fengwang will have to reach an average of 8 million orders per day to achieve a stable scale, and it is expected to take another 6 to 12 months to continue to advance.” Wang Wei said.

According to user feedback, the price of Fengwang Express has been lowered than that of the three links, but the speed is slow, and it takes 3-5 days to arrive. If you need to speed up the efficiency of e-commerce parts, you can choose another product-e-commerce express .

The variables that sink the market include technology and hardware in addition to price.

After 2020, the continuous outbreak of Pinduoduo and live broadcast e-commerce has caused Tongda to increase investment in technology and hardware. At present, Zhongtong is the company with the largest number of factories with independent property rights, self-owned vehicles and automatic sorting equipment in the industry. In 2020, the express delivery industry has experienced “the most invested year over the years, which may be the sum of the previous two years”, Zhao Xiaomin believes.

And SF’s previous play style has been difficult to bear pressure. For example, SF Express’s “special preferential distribution” was mainly based on the mode of “filling in warehouses”, and there was no need to increase capacity investment. However, with the rapid rise of e-commerce parts, SF Express also has to equip e-commerce parts with special warehousing, which is another big expense.

Wang Wei has repeatedly emphasized that “SF Express is only using surplus resources” to make e-commerce products. For example, in terms of transportation capacity, after the integration of the four networks, the number and flow of shuttle buses will be more, and the cost for new business use is also the best price-performance ratio.

In fact, in order to gain the right to speak in e-commerce component companies, SF Express still needs to invest continuously to catch up with the three links and one access. According to the financial report, SF Express is currently adjusting its network construction and integrating it into the express transportation system. In the first- and second-tier and third- and fourth-tier cities, SF Express will newly form different systems to reduce costs and increase efficiency.

“SF’s e-commerce business is not as advantageous as the time-effective business. The Fengwang, which Wang Wei has always emphasized, is slowly spreading, and revenue restrictions are increasing, but SF’s e-commerce business is correct. It depends on how to control the next step. Cost.” Zhao Xiaomin thinks.

Why is the express company worth 60 times PE?

In the white horse stock market last year, the market once pushed SF Express’s P/E ratio to more than 60 times. If you compare it with other peers, you will find how obvious the market’s preference for SF Express is: before this plunge, Zhongtong’s P/E ratio was 33.6 times, Yun was 22.2 times, and Shentong was 29.3 times.

This valuation difference is already a cross-industry gap. Is it just a spillover effect of excess liquidity? In fact, apart from SF Express’s stronger profitability, investors are betting on its future growth to a certain extent.

The statement made by SF’s chief strategy officer Huang S at the performance meeting corresponds to this concern.

“Investors pay close attention to SF Express’s time-sensitive products, believing that the scale, growth and unit price of time-effective products are very important factors that affect the stock price. In fact, shareholders are more anxious about when SF Express can produce new businesses and products that can replace time-sensitive products for the company. Contribution status of performance.”

In addition to time-sensitive components, SF Express has been trying to find the second largest growth curve, but SF Express has not yet seen a clear answer for the exploration of new business.

According to the 2020 financial report, SF Express’s new business, intra-city express delivery, international and supply chain businesses are all in a rapid growth trend, but this business has a small contribution to SF’s overall revenue, accounting for only about 11% of the overall revenue.

The 2020 annual report disclosed that its total development expenditures for 15 projects including drone projects, international business systems, and Ezhou Airport project management systems were 541 million yuan.

The financial report expenditures for the first quarter of 2021 also show that SF Express has made two major capital investments, acquiring Kerry Logistics to deploy international businesses in its new business, and increasing its capital by 409 million yuan in its subsidiary SF Express to develop its intra-city business.

Zhao Xiaomin mentioned that due to the epidemic, part of SF’s investment in new business and technology has been postponed to 2021, which is also an important reason for the loss. In the next step, SF Express will also invest in vehicles in the fields of storage, cold chain and medicine. The number of aircraft will exceed 70, and the aviation hub airport under its subsidiary will be operated by the end of the year, and scientific research will continue.

There are also many bright spots in the new business. For example, SF Express terminal products-Fengchao Express Cabinet. At present, Fengchao Technology has realized the layout of 200+ key cities, 140,000+ communities, and 280,000+ cabinet outlets. The platform has accumulatively registered 4.1 million couriers and serves nearly 350 million consumer users.

The industry once speculated that SF Express will use Fengchao to enter the community group purchase as an intelligent offline pickup point. However, Wang Wei resolutely responded that instead of doing business flow business including community group buying, SF Express still wants to grow an independent third-party industry solution data technology service company.

So far, SF Express has “opened its bow without turning back.” On the one hand, it is necessary to reverse the sluggish growth of the main business, and simultaneously exert efforts on economic and time-sensitive components to ensure that 2B business is not stolen by four links, JD.com, etc., while continuing to develop e-commerce components and enhance the new 2C business. commercialize. The pains of early investment are necessary.

Zhao Xiaomin is optimistic about the growth of SF Express in 2021. Compared with some friends who stick to traditional business, SF Express is already a very courageous company in the express delivery industry and has been increasing investment in new business. In his opinion, SF Express In the accumulation and precipitation stage, the strength in logistics and technology for many years is worth looking forward to, and the market should give it more patience.

Following the one-digit limit on Friday, SF Express once again dropped the limit on April 12, and its market value has nearly halved since its historical high on February 18, evaporating more than 200 billion yuan.

There is no warning about the huge loss.

On April 8, SF Express released its financial report for the first quarter of 2021. The financial report shows that in the first quarter of this year, the company is expected to lose 900 million to 1.1 billion yuan, while in the same period of 2020, the company will make a profit of 907 million yuan under the epidemic. Just last month, SF Express released its 2020 financial report data showing that the net profit attributable to shareholders of listed companies was 7.326 billion yuan, a year-on-year increase of 26.39%.

SF Express Image Source/Visual China

For this reason, on April 9th, Wang Wei apologized to shareholders at the general meeting of shareholders: “First of all, I apologize to shareholders, because I think the first quarter really did not manage well.” He admitted that he had negligence in management, similar The problem does not appear a second time.

Why did SF Express, with thick eyebrows and big eyes, also start to lose money? Various market rumors have been circling around, trying to explain this unexpected incident. Among them, the most gimmicky, and at first glance, the most “ultimate answer” is that taxation and government affairs have brought a fatal blow.

Industry Viewpoint Source/Weibo

But this is not the core of the problem, and it has greatly misjudged the real competitive landscape of the express industry.

What is the real answer? What kind of changes will the express delivery industry, which is mired in price wars, usher in? What is the logic for the decent top student SF Express to choose to join the “introduction”? How to judge the future of SF Express?

What happened to SF Express?

After the financial report was released, Wang Wei publicly explained the losses of SF Express.

Shenzhen Stock Exchange released SF Express loss announcement source/official website

On the one hand, due to the slower-than-expected growth rate of time-sensitive parts in the first quarter, the expected profits did not appear; the growth of superimposed economic parts caused false high costs and was also part of the reason for the losses.

Prior to this, the fundamental advantage of SF Express’s stable business lies in its “time-sensitive parts”, which are stable, efficient, and safe, and are basically a must-choice for commercial products. It has always contributed a high profit margin to SF Express.

There is a view in the industry that due to the conversion of electronic invoices and electronic contracts, the number of corporate orders used for SF Express’s distribution has been greatly reduced.

In this regard, Zhao Xiaomin, deputy director of the Post and Express Special Committee of the Shanghai Transportation Commission, believes that electronic invoices and electronic contracts will not have much impact on SF’s business.

From the beginning of the pilot program of electronic invoicing in 2012, to the end of 2019, the nationwide unified electronic invoicing public service platform was built, and the country has accelerated the promotion and application of electronic invoicing. This process is constantly advancing and the impact will not suddenly be reflected in this year’s A certain fiscal season.

In the 2020 annual report, SF Express’s time-sensitive parts still achieved revenue of 66.3 billion yuan, a year-on-year increase of 17.41%. The growth rate in the first quarter was not as fast as expected. According to the analysis of various securities firms’ research reports, there were also reasons why the demand for time-sensitive parts increased sharply during the epidemic last year, and the base number therefore increased abnormally.

Regarding the slowdown in this quarter, Wang Wei gave two solutions. One is to continue to explore “time-sensitive” customers; the other is to use data to reflect specific scenarios in the supply chain, so as to make more refined for different customers. Operations. In the next step, SF Express will further optimize the upgrade of time-sensitive products-forming a new product system including SF Express, Express and Standard Express.

If there were obvious decision-making errors in the first quarter, it was a waste of labor costs during the Spring Festival.

In response to the government’s policy of in situ New Year, the Spring Festival overtime subsidy was close to 1 billion yuan, which was three to four billion yuan more than expected. Wang Wei particularly emphasized that the cost of guaranteeing capacity during the Spring Festival is relatively high, and the lack of business volume of time-sensitive products has resulted in a high cost input.

It is worth noting that the 2021 Spring Festival, including Ali, JD.com, Pinduoduo, and Four Links, are all promoting “not closing”. Delivery as usual during the Spring Festival holiday.

As far as Quanxian understands, during the Spring Festival, many express outlets left enough couriers, but the total number of orders has not soared compared with previous years. More people stay in place, but the workload is not saturated, which undoubtedly increases the company. cost.

“This year’s Spring Festival is not closed during the Spring Festival, but the results are so great. Each company should match according to demand. Otherwise, e-commerce and logistics will be “involved” together.” Bailian Consulting founder Zhuang Shuai believes.

On the other hand, the rapid growth of “economy” in the first quarter was behind the price of participating in a bloody price war. After the proportion of economic items in 2020 exceeds the time limit, SF Express’s revenue per ticket in 2020 will be 17.77 yuan, compared with 21.94 yuan in the same period last year, a year-on-year decrease of 18.99%. In the first quarter of this year, e-commerce products continued to exert strength, and the gross profit margin fell from 17.42% to 16.35%.

“Economic parts” in SF’s financial report mainly refers to “special express mail” mainly based on e-commerce parts. However, the competition for e-commerce parts is fierce, and SF has no choice but to participate in the war with a low price model. As a result, although there are many “economic parts”, the profits are not high. .

Finally, Wang Wei also explained that another reason for the loss is the investment in new businesses, such as the purchase of new aircraft, the construction of airport capacity centers, and the adjustment of the transportation network to undertake economical businesses and optimize cost efficiency.

“More than one logistics company” is a story that SF Express has been trying to tell. In addition to the basic plate of time-sensitive parts, e-commerce parts are indisputable. New businesses such as express delivery, cold delivery and medicine, intra-city express delivery, international express delivery, and supply chain are also new battlefields for SF Express. It can be seen from the financial report that the growth rate of new businesses such as international express delivery, intra-city express delivery, and supply chain is very impressive.

Source of development expenditures in SF Express’s 2020 annual report/official website

“How to better match the product operation model with resources, and how to form economies of scale between the entire links.” Wang Wei stated, “In the first quarter, it happened to be the flash point for these issues to collide with each other, and the company will form a better prevention mechanism. And countermeasures, we will not have this kind of problem in the future.”

SF Express pointed out that the cost input in the first quarter was difficult to “stop bleeding” quickly, and it is expected to gradually improve in the second quarter and beyond. “A more complete track and product matrix will bring SF Express a broader user base, larger market space, and better scale synergy. With the rapid growth of new businesses, it will gradually release pattern dividends and scale dividends.”

Profitable students who were “involved”

Taking orders for “time-sensitive parts” from major companies does not allow SF Express to sit back and relax.

Beginning in 2018, SF Express entered the e-commerce market and launched a “special offer”. In grain-producing areas such as Zhejiang and Guangdong, SF Express’s preferential price has dropped to about 3 kilograms and 3 yuan. For an average weight of more than 2 kilograms, SF Express has taken away many customers who originally belonged to the Tongda department.

E-commerce parts were originally a world of three links and one access, but Cainiao and JD Logistics appeared later. While deploying e-commerce, they also continued to impact SF Express’s high-end customers. Previously, when JD Logistics submitted its prospectus, its valuation had exceeded US$50 billion, second only to SF Express in the logistics industry. At the same time, JD Logistics also emphasizes supply chain solutions for 2B business.

“SF Express entered the e-commerce software too late. Not only was it less than the three links and one connection, but also caught up with Pinduoduo and JD.com’s entry node. The original advantage was greatly weakened.” Zhuang Shuai believes.

In fact, in the field of e-commerce parts, express companies represented by three links and one delivery have never stopped price wars. Yiwu, a place where the express industry is anxious about competition, has repeatedly exploded the tragic situation of price wars. After the rising star Extreme Rabbit entered the game, the “1 yuan” express was once launched in Yiwu, and the bloody level of the price war set a new record.

Extreme Rabbit Express spoils the “e-commerce piece” Source/Vision China

At the time of the rise of Taobao, small and medium-sized e-commerce companies blossomed everywhere in Yiwu; Pinduoduo’s rise, and small commodity e-commerce ushered in heavy growth; last year, the epidemic accelerated the popularity of live broadcast and promoted online sales. The rise of national e-commerce has triggered a new era. Poland’s express industry turf battle.

SF Express, which has repeatedly failed in the e-commerce market, can no longer miss the opportunity in this wave. In order to expand the business of “e-commerce parts”, SF Express, which has never participated in the express price war, will also join the game of express price war in 2020.

SF Holdings Secretary General Gan Ling once revealed that the cost of special offers was more than 10 yuan in the past, and the cost in 2019 has been reduced to less than 10 yuan, but there is still a distance from the 5 yuan unit price for customers. In early 2020, the target positioning cost will be reduced again. 50%.

Behind the continuous price reduction, SF Express’s overall profit and single ticket revenue have been affected.

SF Express’s overall gross profit margin in 2019 decreased slightly by 0.5 percentage points from the previous year to 17.42%; in 2020, SF Express’s overall gross profit margin dropped to 16.35%.

From January to February 2021, the business volume of the three links and Yida achieved a year-on-year increase, but the profitability was reduced: the express delivery revenue of SF Express, Yuantong, Shentong, and Yunda was 17.26 yuan, 2.38 yuan, 2.51 yuan, 2.23 yuan, a year-on-year decrease of 12.4%, 19.3%, 23.9%, 22%.

Although Zhongtong did not separately disclose the single ticket revenue, CFO Yan Huiping said: In 2020, the price of a single ticket for Zhongtong has dropped by about 20%.

In order to further reduce costs, SF Express opened its test and opened up direct sales, pulling up another low-priced franchise “Fengwang.” In the second half of 2020, “Fengwang” will enter the testing phase. SF Express revealed at the 2020 financial report that Fengwang broke the daily average of 1 million orders during Double Eleven in 2020, and its current business volume is around 1 to 2 million daily. “However, Fengwang needs to reach an average of 8 million orders per day to achieve a stable scale, and it is expected to take another 6 to 12 months to continue to advance.” Wang Wei said.

According to user feedback, the price of Fengwang Express has been lowered than that of the three links, but the speed is slow, and it takes 3-5 days to arrive. If you need to speed up the efficiency of e-commerce parts, you can choose another product-e-commerce express .

The variables that sink the market include technology and hardware in addition to price.

After 2020, the continuous outbreak of Pinduoduo and live broadcast e-commerce has caused Tongda to increase investment in technology and hardware. At present, Zhongtong is the company with the largest number of factories with independent property rights, self-owned vehicles and automatic sorting equipment in the industry. In 2020, the express delivery industry has experienced “the most invested year over the years, which may be the sum of the previous two years”, Zhao Xiaomin believes.

And SF’s previous play style has been difficult to bear pressure. For example, SF Express’s “special preferential distribution” was mainly based on the mode of “filling in warehouses”, and there is no need to increase the investment in transportation capacity. However, with the rapid rise of e-commerce parts, SF Express also has to equip e-commerce parts with special warehousing, which is another big expense.

Wang Wei has repeatedly emphasized that “SF Express is only using surplus resources” to make e-commerce products. For example, in terms of transportation capacity, after the integration of the four networks, the number and flow of shuttle buses will be more, and the cost for new business use is also the best cost-effective.

In fact, in order to gain the right to speak in e-commerce component companies, SF Express still needs to invest continuously to catch up with the three links and one access. According to the financial report, SF Express is currently adjusting its network construction and integrating it into the express delivery system. In the first- and second-tier and third- and fourth-tier cities, SF Express will newly form different systems to reduce costs and increase efficiency.

“SF’s e-commerce business is not as advantageous as the time-effective business. The Fengwang, which Wang Wei has always emphasized, is slowly spreading, and revenue restrictions are increasing. However, SF’s e-commerce business is correct. Cost.” Zhao Xiaomin thinks.

Why is the express company worth 60 times PE?

In the white horse stock market last year, the market once pushed SF Express’s P/E ratio to more than 60 times. If you compare it with other peers, you will find how obvious the market’s preference for SF Express is: before this plunge, Zhongtong’s P/E ratio was 33.6 times, Yun was 22.2 times, and Shentong was 29.3 times.

This valuation difference is already a cross-industry gap. Is it just a spillover effect of excess liquidity? In fact, apart from SF Express’s stronger profitability, investors are betting on its future growth to a certain extent.

The statement made by SF’s chief strategy officer Huang S at the performance meeting corresponds to this concern.

“Investors pay close attention to SF Express’s time-sensitive products, believing that the scale, growth and unit price of time-effective products are very important factors that affect the stock price. In fact, shareholders are more anxious about when SF Express can produce new businesses and products that can replace time-sensitive products for the company. Contribution status of performance.”

In addition to time-sensitive components, SF Express has been trying to find the second largest growth curve, but SF Express has not yet seen a clear answer for the exploration of new businesses.

According to the 2020 financial report, SF Express’s new business, intra-city express delivery, international and supply chain businesses are all in a rapid growth trend, but this business has a small contribution to SF’s overall revenue, accounting for only about 11% of the overall revenue.

The 2020 annual report disclosed that its total development expenditure for 15 projects, including drone projects, international business systems, and Ezhou Airport project management system, was 541 million yuan.

The financial report expenditure for the first quarter of 2021 also shows that SF Express has made two major capital investments, acquired Kerry Logistics to deploy international businesses in its new business, and increased its capital by 409 million yuan in its subsidiary SF Express to develop its intra-city business.

Zhao Xiaomin mentioned that due to the epidemic, part of SF’s investment in new business and technology has been postponed to 2021, which is also an important reason for the loss. In the next step, SF Express will also invest in vehicles in the fields of storage, cold chain and medicine. The number of aircraft will exceed 70, and the aviation hub airport under its subsidiary will also be operated by the end of the year, and scientific research will continue.

There are also many bright spots in the new business. For example, SF Express terminal products-Fengchao Express Cabinet. At present, Fengchao Technology has realized the layout of 200+ key cities, 140,000+ communities, and 280,000+ cabinet outlets. The platform has accumulatively registered 4.1 million couriers and serves nearly 350 million consumer users.

Fengchao Express Cabinet Picture Source/Visual China

The industry once speculated that SF Express will use Fengchao to enter the community group purchase as an intelligent offline pickup point. But Wang Wei resolutely responded that instead of doing business flow business including community group buying, SF Express still wants to grow an independent third-party industry solution data technology service company.

So far, SF Express has “opened its bow without turning back.” On the one hand, it is necessary to reverse the sluggish growth of the main business, and make efforts in economic and time-sensitive components at the same time to ensure that 2B business is not snatched away by four links, JD, etc., while continuing to develop e-commerce components and improve 2C new business commercialize. The pains of early investment are necessary.

Zhao Xiaomin is optimistic about the growth of SF Express in 2021. Compared with some friends who stick to traditional business, SF Express is already a very courageous company in the express delivery industry and has been increasing investment in new business. In his opinion, SF Express In the accumulation and precipitation stage, the strength in logistics and technology for many years is worth looking forward to, and the market should give it more patience.

In the frames of Harper’s Bazaar, Phung Thieu Phong’s wife is still loyal to the image without expressing any emotion, “hundreds like one” makes netizens feel bored. Not only that, but her proportions are also the weak points revealed in these photos.

A photo of a magazine by Zhao Liying. Many people believe that this dress completely does not highlight her beauty

In this photo, there are netizens who believe that Trieu Le Dinh reveals the weak point is an imbalanced body proportion, not only that, the expression of his wife Phung Thieu Phong also makes people feel that the photo is fading and poor. Highlights

Another one more frame Trieu Le Dinh showed no emotion. Although the dress is excellently beautiful, the sitting shape and the way to hold hands also make Trieu Le Tinh “inferior”

The only picture Trieu Le Dinh has changed his pose

On the social network, netizens commented: “Although the costume is very popular, very beautiful, but Trieu Le Dinh doesn’t seem to be able to balance it.”

In the close-up and inclined photos, Trieu Le Dinh still can’t escape the one-color posing with one arm to rest on the chin and neck. The way of make up makes the goddess Trieu become strange, the “rough” five mandarin.

It can be seen that, although the character is favored when wearing high-class costumes, Zhao Liying’s image still does not stand out. Therefore, many people expressed disappointment and expected her “Sam Sam” to have better magazine covers.