Hangzhou SF Intra-City Industrial Co., Ltd. (“SF Intra-City” or the “Company”; stock code: 9699), the largest third-party on-demand delivery service platform in China , today announced its annual results for the year ended 31 December 2021 (the “Year”). Revenue continued to rise with gross profit and gross profit margin turning positive for the first time. The inspiring set of results demonstrates the successful implementation of its business development strategies.
Results Highlights
— Revenue surged by 68.8% YoY to RMB8.17 billion
— Gross profit and gross profit margin turned positive, successfully achieving a gross profit of RMB94.8 million and gross profit margin of 1.2% YoY
— Revenue from intra-city delivery service increased by 58.1% YoY to RMB5.09 billion
— Non-food delivery scenarios achieved YoY revenue growth of 105% to RMB1.87 billion
— The number of active merchants increased 54.5% YoY to over 258,000
— The number of active consumers increased from approximately 5.1 million in 2020 to approximately 10.6 million in 2021, doubling YoY. The Company has achieved over 150% YoY growth in terms of revenue for intra-city delivery service to consumers for three consecutive years
— Revenue from last-mile delivery services increased by 89.3% YoY to RMB3.07 billion, accounting for 37.6% of total revenue. The number of cities and counties increased to over 1,900
— With further optimization of scale and efficiency, diversified product coverage and multi-scenario business model, SF Intra-City reported an inspiring set of results
During the Year, revenue surged 68.8% year-on-year (“YoY”) to RMB8.17 billion, underpinned by a strong performance from non-food delivery scenarios , diversified product coverage and multi-scenario business model, further expansion of active merchant and active consumer bases, and expansion of service network into lower-tier markets with huge growth potential. The Company achieved higher operational efficiency and lower delivery costs through the continued expansion of its scale and continued investment and optimization of big data and AI technologies in its City Logistics System (“CLS”). As a result, the Company achieved gross profit/loss margin improvements for three consecutive years, recording a gross profit of RMB94.8 million and a gross profit margin of 1.2%. The net loss ratio narrowed to 11% from 15.6% last year.
SF Intra-City said, “We are pleased to report an inspiring set of annual results this year. Following our successful IPO at the end of last year, the impressive annual results represent another outstanding milestone in our business development. Over the past year, we have achieved significant growth by expanding our multi-scenario, customer base and geographic coverage. Not only did we continue to grow revenues, but we also managed to achieve positive gross profit and gross margin. This is an excellent result among peers.”
Business Review
High Growth in Intra-city Delivery Service
Revenue from Intra-city delivery service increased by 58.1% YoY to RMB5.09 billion, underpinned by a strong performance from non-food delivery scenarios, diversified product coverage and multi-scenario business model, further expansion of active merchant and active consumer bases, and expansion of service network into lower-tier cities with huge development potential. The revenue of non-meal delivery scenarios increased by 105% YoY to RMB1.87 billion, accounting for 37% of the total revenue from intra-city delivery, and the revenue from lower-tier cities increased by 89% YoY to RMB1.67 billion.
Intra-city Delivery to Merchants
SF Intra-City empowers merchants with its open and inclusive on-demand delivery network as well as its professional and comprehensive solutions. The number of its active merchants increased 54.5% YoY to over 258,000. SF Intra-City has become the preferred third-party on-demand delivery service provider for its merchant customers. It has achieved remarkable revenue growth in local retail, local e-commerce and local services, with over 165% YoY growth in revenue for merchants deliveries in the pharmaceutical, apparel and 3C electronics industry, as well as over 95% YoY growth in revenue for merchants deliveries including fresh produce, flowers, cakes and desserts and other groceries. In addition, the Company continued to deepen cooperation with leading brands during the year and established friendly business relationships with over 2,300 merchant brands. With the Company’s commitment to quality, stability and customer-focused service, the retention rate for Top 100 accounts reached 86% during the year.
Intra-city Delivery to Consumers
Revenue from intra-city delivery service to consumers has grown by more than 150% YoY for three consecutive years, driven by a rapidly expanding consumer base. The number of active consumers doubled YoY from approximately 5.1 million in 2020 to approximately 10.6 million in 2021 driven by the professional, reliable, and 24/7 real-time service across all scenarios. The Company’s specialized “pioneer riders” continued to improve its delivery standard for consumers, achieving order-pick-up rate of no less than 99% and fulfillment-in-time rate of no less than 96% at the end of 2021.
Last-mile Delivery Advantage Further Strengthened
Revenue from last-mile delivery services increased significantly by 89.3% YoY to RMB3.07 billion, with the number of cities and counties covered by last-mile services expanding to over 1,900, underpinned by increasing demand and the Company’s efficient fulfillment capabilities to take on more orders. The last-mile delivery service business has further expanded its network and enhanced network efficiency and economies of scale, increasing rider income and loyalty and effectively reducing delivery costs.
Technology Empowering Improvements in Riders’ Ability to Perform High-Quality Service
The Company has made continuous investments in technology to further optimize operational efficiency and reduce delivery costs. Through the utilization of CLS, real-time analysis can be performed on order volume and order density enabling precise adjustments such that riders can deliver orders for different service scenarios throughout the day and cope with real-time order volume volatility, resulting in rider efficiency enhancement.
During the Year, the number of our active riders increased 32% YoY to over 606,000. The increase in rider base has enabled SF Intra-City to further expand its existing business while exploring and taking on new business initiatives, including the development of a night-time (24-hour) delivery service network, allowing better service performance and responses to specific customer needs. The Company also maintained its high quality of service, with a fulfillment in-time rate of 95%, successfully driving impressive revenue growth. Particularly for food delivery scenarios (which time is of the essence), SF Intra-City have achieved an average delivery time of 26 minutes per order in 2021. During the Year, the number of cities covered by night-time (24 hours) delivery service network amounted to 693 cities.
The Company concluded, “In order to drive business and revenue growth and maintain above industry average growth rates, we have devoted ourselves to cultivating different delivery service scenarios and actively expanded our coverage network and customer base over the years. To reach more merchants and consumers, we expanded our service network from first- and second-tier cities into lower-tier cities that have large growth potential, abundant rider resources and rich sales channels. At the same time, we are actively responding to the ever-changing, complex and diversified needs of consumers, insisting on enhancing customer loyalty through high-quality services, as well as improving customized service and enabling technology empowerment to further optimize service quality. Through efficiency improvements from business optimization and operational refinement as well as deeper market penetration, we believe going forward SF Intra-City will achieve greater economies of scale and network effects, realize profitability and create long-term value for shareholders.”
About Hangzhou SF Intra-City Industrial Co., Ltd. (stock code: 9699.HK)
SF Intra-City focuses on the emerging opportunities of intra-city on-demand delivery services. Since 2019, SF Intra-city has operated as an independent legal entity to capture the growth opportunities arising from the new consumption trends. SF Intra-City adopts a multi-scenario business model, providing full coverage of delivery scenarios for all types of products and services. The Company’s extensive service coverage, ranging from mature scenarios such as food delivery to growth scenarios such as local retail, local e-commerce and local services, has enabled it to respond to the evolving customer needs resulting from the development and upgrade of the local consumer market. For more details, please visit company’s website: https://ir.sf-cityrush.com/en/investor-relations/.
For media enquiries:
Christensen China Limited
Suri Cheng
Phone: +86 185 0060 8364
Jenny Lam
Phone: +852 2232 3928 / +852 6312 2027
Email: SFIntracity@christensenir.com
Topic: Press release summary