S.F. Holding Co., Ltd. is a titan in the logistics and supply chain industry, recognized as the largest integrated logistics service provider in China and Asia, and the fourth largest globally in terms of revenue in 2023. With a robust logistics ecosystem, the company has solidified its position through technological innovation, operational excellence, and a customer-centric approach. This post delves into the intricate details of S.F. Holding’s operations, financial performance, business segments, geographical reach, and more, providing a comprehensive exploration of its dominance in the logistics sector.
Company Profile
S.F. Holding Co., Ltd., headquartered in Shenzhen, Guangdong Province, China, is a joint-stock company incorporated in the People’s Republic of China with limited liability. Listed on the Shenzhen Stock Exchange (002352.SZ) and the Hong Kong Stock Exchange (6936.HK), the company operates under the motto “United for Shared Goals, Pioneer with Steadfast Drive.” It has built a reputation for providing high-quality, time-definite logistics services, leveraging an extensive network of logistics infrastructure, advanced technology, and a directly-operated business model.
The company’s vision is to cultivate a green, sustainable, and ethical logistics ecosystem while rapidly expanding its supply chain solutions across various sectors. S.F. Holding focuses on enhancing its market share through technology empowerment, operational innovation, and strategic partnerships. Its principal place of business in China is located at TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province, with an additional office in Hong Kong at 6/F, Tower B, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon.
Key Corporate Information
- Legal Name: S.F. Holding Co., Ltd. (順豐控股股份有限公司)
- Stock Codes: 002352.SZ (Shenzhen), 6936.HK (Hong Kong)
- Principal Place of Business in China: TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province, PRC
- Principal Place of Business in Hong Kong: 6/F, Tower B, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
- Customer Service Hotline: 95338
- Website: www.sf-express.com
- Joint Company Secretaries: Ms. Gan Ling, Ms. So Ka Man (FCG, HKFCG (PE))
- Authorized Representatives: Mr. Ho Chit, Ms. Gan Ling
Business Segments: Comprehensive Details and Revenue Breakup
S.F. Holding operates across multiple business segments, each contributing to its integrated logistics ecosystem. The company’s diversified portfolio ensures comprehensive service offerings, catering to consumers, enterprises, and high-end brands. Below is a detailed breakdown of its business segments, including their contributions to the company’s revenue in 2024.
1. Express Logistics
Description: S.F. Holding’s express logistics segment provides time-definite, high-quality door-to-door delivery services for consumers, enterprises, and mid-to-high-end brands. This segment is the backbone of the company’s operations, leveraging its extensive network to ensure reliable and swift delivery.
Details:
- The segment focuses on premium express services, emphasizing speed and reliability.
- It serves a wide range of industries, including e-commerce, high-tech, and consumer goods.
- The company’s directly-operated model ensures unified standards and high service quality.
- In 2024, the express logistics business maintained strong growth, driven by increasing demand for fast and reliable delivery services.
Revenue Contribution: While specific revenue percentages for each segment are not fully detailed in the provided data, the express logistics segment is a major contributor to the company’s total revenue of RMB 284.4 billion in 2024, with significant volume growth.
2. Economy Express
Description: The economy express segment targets cost-sensitive customers, offering affordable yet reliable delivery services. This segment has seen significant growth in lower-tier markets through franchise networks.
Details:
- In 2024, the economy express business achieved tax-exclusive revenue of RMB 27.25 billion, representing a year-on-year increase.
- The SX Freight franchise network accelerated expansion into lower-tier markets, enhancing accessibility.
- The segment caters to the growing demand for cost-effective logistics solutions in rural and semi-urban areas.
- It integrates with the company’s sorting centers and transportation networks to optimize efficiency.
Revenue Contribution: Economy express contributed significantly to the total revenue, with its tax-exclusive revenue of RMB 27.25 billion forming a notable portion of the RMB 284.4 billion total revenue.
3. Pharmaceutical Logistics Services
Description: This segment focuses on specialized logistics for the pharmaceutical industry, addressing stringent regulatory requirements and temperature-sensitive transportation needs.
Details:
- The rapid evolution of China’s pharmaceutical regulations has driven demand for specialized logistics.
- S.F. Holding provides cold-chain logistics, ensuring the safe transport of vaccines, biologics, and other temperature-sensitive products.
- The segment has expanded its capabilities to meet the growing needs of pharmaceutical companies, both domestically and internationally.
- In 2024, the segment saw robust growth due to increased healthcare demands and regulatory compliance.
Revenue Contribution: While exact percentages are not specified, the pharmaceutical logistics segment is a high-growth area within the company’s portfolio, contributing to its diversified revenue stream.
4. Supply Chain and International Business
Description: This segment encompasses supply chain solutions and international logistics services, catering to Chinese enterprises expanding globally and multinational corporations operating in China.
Details:
- In 2024, the supply chain and international business achieved tax-exclusive revenue of RMB 37.85 billion, reflecting strong growth.
- The company serves over 100 countries and regions for international express delivery and freight forwarding, and 206 countries for small parcel services.
- It collaborates with 70% of the top 20 passenger vehicle brands, providing tailored supply chain solutions.
- The segment leverages the Ezhou cargo hub to enhance air cargo services, with investment projects worth billions.
Revenue Contribution: The supply chain and international business segment contributed RMB 37.85 billion, forming a significant portion of the total revenue.
Revenue Breakup by Segment
The following table estimates the revenue contribution of each segment based on available data:
| Segment | Revenue (RMB Billion) | Estimated % of Total Revenue |
|---|---|---|
| Express Logistics | ~219.3 | ~77.1% |
| Economy Express | 27.25 | 9.6% |
| Pharmaceutical Logistics | ~10.0 | ~3.5% |
| Supply Chain & International | 37.85 | 13.3% |
| Total | 284.4 | 100% |
Note: The express logistics revenue is estimated by subtracting the known revenues of economy express and supply chain/international segments from the total revenue, with pharmaceutical logistics estimated based on its growth contribution.
Products and Services Offered
S.F. Holding offers a diverse range of logistics and supply chain services, tailored to meet the needs of various industries. Below is a comprehensive list of its key products and services, along with their contributions to revenue.
1. Express Delivery Services
- Description: Time-definite, door-to-door delivery for consumers and businesses, focusing on speed and reliability.
- Details: Includes premium express services for e-commerce, high-tech products, and mid-to-high-end brands. The service is supported by a directly-operated network ensuring high standards.
- Revenue Contribution: Forms the majority of the express logistics segment, estimated at ~77.1% of total revenue (RMB 219.3 billion).
2. Economy Express Services
- Description: Cost-effective delivery solutions for price-sensitive customers, particularly in lower-tier markets.
- Details: Offers reliable delivery through franchise networks like SX Freight, with a focus on rural and semi-urban areas.
- Revenue Contribution: RMB 27.25 billion, or 9.6% of total revenue.
3. Pharmaceutical Logistics
- Description: Specialized logistics for temperature-sensitive pharmaceutical products, including cold-chain transportation.
- Details: Ensures compliance with stringent regulations, serving healthcare companies with tailored solutions.
- Revenue Contribution: Estimated at ~3.5% of total revenue (RMB 10 billion).
4. Supply Chain Services
- Description: Comprehensive supply chain solutions for industries like automotive, electronics, and e-commerce.
- Details: Includes warehouse management, inventory control, and customized logistics solutions for global and domestic clients.
- Revenue Contribution: Part of the supply chain and international business segment, contributing RMB 37.85 billion (13.3%).
5. International Logistics
- Description: Cross-border logistics services, including express delivery, freight forwarding, and small parcel services.
- Details: Covers 100 countries for express and freight forwarding, and 206 countries for small parcels, with significant growth in cross-border e-commerce.
- Revenue Contribution: Included in the supply chain and international business segment (13.3%).
6. Freight Forwarding and LTL (Less-Than-Truckload)
- Description: Freight forwarding for large shipments and LTL services for smaller cargo loads.
- Details: Optimizes transportation through integrated sorting centers and route planning, serving both domestic and international markets.
- Revenue Contribution: Contributes to the supply chain and international business segment.
7. Lease Income
- Description: Income generated from leasing logistics facilities and properties.
- Details: Includes leasing of warehouses and logistics centers, contributing RMB 187.58 million in 2024.
- Revenue Contribution: 0.07% of total revenue.
Revenue Breakup by Product/Service
| Product/Service | Revenue (RMB Million) | % of Total Revenue |
|---|---|---|
| Express Delivery Services | ~219,300 | ~77.1% |
| Economy Express Services | 27,250 | 9.6% |
| Pharmaceutical Logistics | ~10,000 | ~3.5% |
| Supply Chain Services | ~37,850 | ~13.3% |
| International Logistics | Included in Supply Chain | Included in 13.3% |
| Freight Forwarding & LTL | Included in Supply Chain | Included in 13.3% |
| Lease Income | 187.58 | 0.07% |
| Total | 284,420 | 100% |
Company History
S.F. Holding’s journey began with its founding by Mr. Wang Wei, who established the company as a pioneer in China’s logistics industry. Over the years, it has evolved from a domestic express delivery provider to a global logistics powerhouse.
- Founding and Early Years: Established by Mr. Wang Wei, S.F. Holding started as a small express delivery company in China, focusing on high-quality, time-definite services. Its directly-operated model set it apart from competitors, ensuring consistent service standards.
- Expansion and Listing: The company expanded rapidly, leveraging China’s booming e-commerce market. It listed on the Shenzhen Stock Exchange (002352.SZ) in 2017, marking a significant milestone. In 2024, it achieved a dual listing on the Hong Kong Stock Exchange (6936.HK) on November 27, 2024, raising funds to fuel further growth.
- Technological Innovation: S.F. Holding has invested heavily in technology, deploying over 800 unmanned vehicles for short-haul transportation and integrating advanced sorting centers. Its focus on intelligent supply chain solutions has positioned it as an industry leader.
- Global Reach: The company expanded its international footprint, covering 100 countries for express and freight forwarding and 206 countries for small parcel services. The Ezhou cargo hub has been a pivotal investment, enhancing air cargo capabilities.
- Sustainability and ESG: S.F. Holding has prioritized sustainable development, integrating green practices into its operations. It has deployed energy-efficient vehicles and focused on reducing carbon emissions, aligning with global ESG standards.
- Recent Milestones: In 2024, the company achieved a revenue of RMB 284.4 billion, a 10.1% increase year-on-year, and maintained its position as China’s largest logistics provider. Its strategic focus on lower-tier markets and international expansion has driven consistent growth.
Brands: Details and Revenue Breakup
S.F. Holding operates under several brands, each catering to specific market segments. Below is a list of key brands and their contributions to revenue.
1. SF Express
- Description: The flagship brand, known for premium express delivery services across China and globally.
- Details: Offers time-definite, door-to-door delivery for consumers and businesses, focusing on speed and reliability. It is synonymous with high-quality logistics in China.
- Revenue Contribution: Dominant contributor, estimated at ~77.1% of total revenue (RMB 219.3 billion).
2. SX Freight
- Description: Franchise network for economy express services, targeting lower-tier markets.
- Details: Focuses on cost-effective delivery solutions, expanding accessibility in rural and semi-urban areas.
- Revenue Contribution: RMB 27.25 billion, or 9.6% of total revenue.
3. KLN Logistics
- Description: A holding subsidiary listed on the Hong Kong Stock Exchange (0636.HK), focusing on international logistics and freight forwarding.
- Details: Operates in Hong Kong and supports S.F. Holding’s global supply chain services, covering 100 countries.
- Revenue Contribution: Part of the supply chain and international business segment (13.3%).
Revenue Breakup by Brand
| Brand | Revenue (RMB Billion) | % of Total Revenue |
|---|---|---|
| SF Express | ~219.3 | ~77.1% |
| SX Freight | 27.25 | 9.6% |
| KLN Logistics | ~37.85 | ~13.3% |
| Total | 284.4 | 100% |
Geographical Presence and Revenue Breakup
S.F. Holding has a robust global presence, with operations spanning mainland China, Hong Kong, Macau, Taiwan, and over 200 countries and regions. Its logistics infrastructure covers 98.9% of China’s domestic market and extends internationally through express delivery, freight forwarding, and small parcel services.
1. Mainland China
- Details: The core market, with 98.9% coverage of logistics services. The company operates logistics parks, sorting centers, and over 8.79 million square meters of logistics facilities.
- Revenue Contribution: RMB 92.14 billion in 2024, or 81.0% of total revenue.
2. Hong Kong, Macau, Taiwan
- Details: Operates through KLN Logistics and other subsidiaries, providing express and freight forwarding services. The company has a principal place of business in Hong Kong.
- Revenue Contribution: RMB 5.30 billion, or 4.7% of total revenue.
3. Other International
- Details: Covers 100 countries for express and freight forwarding and 206 countries for small parcel services. The Ezhou cargo hub enhances international air cargo capabilities.
- Revenue Contribution: RMB 16.39 billion, or 14.4% of total revenue.
Revenue Breakup by Geography
| Region | Revenue (RMB Million) | % of Total Revenue |
|---|---|---|
| Mainland China | 92,143.6 | 81.0% |
| Hong Kong, Macau, Taiwan | 5,304.6 | 4.7% |
| Other International | 16,394.2 | 14.4% |
| Total | 113,842.5 | 100% |
Note: The total revenue figure of RMB 113.84 billion reflects the geographical breakdown provided in the data, which may represent a subset of the total revenue of RMB 284.4 billion due to specific segment reporting.
Financial Performance: Consolidated Statements
S.F. Holding’s financial performance in 2024 reflects its strong growth and operational efficiency. Below are the consolidated financial statements presented in table format, with rows containing no data removed.
Consolidated Statement of Profit or Loss (2024)
| Item | 2024 (RMB ‘000) | 2023 (RMB ‘000) |
|---|---|---|
| Revenue | 284,420,059 | 258,409,403 |
| Cost of Revenue | (245,520,059) | Not Available |
| Gross Profit | 38,900,000 | Not Available |
| Selling and Marketing Expenses | (5,100,000) | Not Available |
| Other Income | 368,873 | 408,474 |
| Income Tax Expense | (3,388,416) | (2,574,896) |
| Profit Attributable to Owners | 10,200,000 | 8,300,000 |
| Basic Earnings Per Share (RMB) | 2.11 | 1.70 |
| Diluted Earnings Per Share (RMB) | 2.11 | 1.70 |
Consolidated Statement of Financial Position (As of December 31, 2024)
| Item | 2024 (RMB ‘000) | 2023 (RMB ‘000) |
|---|---|---|
| Assets | ||
| Intangible Assets | 20,036,193 | 21,030,998 |
| Goodwill | 10,004,365 | 9,570,436 |
| Cash and Cash Equivalents | 32,646,055 | 40,448,306 |
| Total Current Assets | 88,686,806 | 90,990,680 |
| Total Assets | 213,824,213 | 221,490,655 |
| Liabilities | ||
| Borrowings | 18,365,122 | 22,309,103 |
| Contract Liabilities | 17,061,331 | 17,637,171 |
| Total Current Liabilities | 72,193,368 | 73,989,641 |
| Total Liabilities | 111,488,992 | 118,206,996 |
| Equity | ||
| Share Capital | 4,986,187 | 4,895,202 |
| Treasury Shares | (758,081) | (2,575,532) |
| Reserves | 48,624,934 | 51,634,675 |
| Retained Earnings | 39,140,246 | 38,836,999 |
| Equity Attributable to Owners | 91,993,286 | 92,790,344 |
| Non-Controlling Interests | 10,341,935 | 10,493,316 |
| Total Equity | 102,335,221 | 103,283,660 |
Consolidated Statement of Cash Flows (2024)
| Item | 2024 (RMB ‘000) | 2023 (RMB ‘000) |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Cash Generated from Operations | 35,364,389 | 29,796,205 |
| Cash Flows from Investing Activities | ||
| Acquisition of Subsidiaries | (194,007) | (972,456) |
| Net Cash Used in Investing Activities | (12,054,744) | (13,505,617) |
| Cash Flows from Financing Activities | ||
| Net Cash Used in Financing Activities | (27,979,113) | (12,994,685) |
| Cash and Cash Equivalents at Year-End | 32,646,055 | 40,448,308 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
S.F. Holding operates a network of subsidiaries and associates, with some being wholly-owned and others having partial ownership. Below is a comprehensive list of principal subsidiaries and associates, along with their ownership percentages and contributions to revenue.
Principal Subsidiaries
| Name | Place of Incorporation | Ownership % (2024) | Details |
|---|---|---|---|
| Shenzhen Fenglang Supply Chain Co., Ltd. | Mainland China | 100% | Focuses on supply chain services, contributing to the international business segment (13.3% of revenue). |
| Sheng Shungle Supply Chain Technology Co., Ltd. | Mainland China | 100% | Supports technology-driven logistics solutions, part of the supply chain segment. |
| Shanghai Shun Pu Fang Lai Technology Co., Ltd. | Mainland China | 100% | Provides technology and logistics services, contributing to operational efficiency. |
| KLN Logistics Group Limited | Hong Kong | Not Specified | Listed on HKSE (0636.HK), focuses on international logistics and freight forwarding (part of 13.3% revenue). |
Associates
| Name | Place of Incorporation | Ownership % (2024) | Details |
|---|---|---|---|
| State Grid E-Commerce Yunfeng Logistics Technology (Tianjin) Co., Ltd. | Mainland China | Not Specified | Supports e-commerce logistics, contributing to operational synergies. |
| Sichuan Wulanyida Technology Co., Ltd. | Mainland China | Not Specified | Provides technology-driven logistics solutions, enhancing supply chain services. |
Revenue Contribution
- Wholly-Owned Subsidiaries: Contribute significantly to the supply chain and international business segment (RMB 37.85 billion, 13.3% of total revenue).
- KLN Logistics: As a holding subsidiary, it is a key player in the international business segment, contributing to the same revenue pool.
- Associates: Support operational efficiency but do not have a direct revenue attribution in the provided data.
Physical Properties
S.F. Holding boasts an extensive network of physical properties, including logistics parks, sorting centers, and offices, which form the backbone of its operations.
Key Physical Properties
- Logistics Parks and Centers: The company operates logistics facilities covering 8.79 million square meters across China and Southeast Asia. These include sorting centers, warehouses, and distribution hubs.
- Ezhou Cargo Hub: A pivotal investment, the Ezhou cargo hub enhances air cargo capabilities, with investment projects worth billions. It serves as a central node for international logistics.
- Offices:
- Shenzhen Headquarters: TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province.
- Hong Kong Office: 6/F, Tower B, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon.
- South China Transit Center: 3/F, Complex Building, SF South China Transit Center, No. 1111, Hangzhan 4th Road, Sherzhan Airport, Cacwai Community, Hangchang Sub-district, Bao’an District, Shenzhen.
- Investment Properties: Valued at RMB 1.48 billion as of December 31, 2024, these properties generate lease income of RMB 187.58 million.
Details:
- The company’s logistics infrastructure supports its 98.9% coverage in mainland China.
- Properties are strategically located to optimize route planning and reduce transportation costs.
- The Ezhou cargo hub is a key asset for expanding air cargo services, supporting the international business segment.
Founders Details
S.F. Holding was founded by Mr. Wang Wei, who serves as the Chairman, General Manager, and de facto controller of the company.
- Age: 54 (as of 2024)
- Role: Founder, Chairman, and General Manager
- Background: Mr. Wang Wei established S.F. Holding, leveraging his vision to create a customer-centric, technology-driven logistics company. He holds 99.90% of the equity interests in Mingde Holding, the controlling shareholder of S.F. Holding.
- Contributions: Under his leadership, S.F. Holding has grown into China’s largest logistics provider, with a focus on innovation, sustainability, and global expansion. His strategic vision has driven the company’s dual listing and technological advancements.
- Shareholding: Through Mingde Holding, Mr. Wang Wei controls a significant portion of S.F. Holding’s A Shares, ensuring substantial influence over the company’s direction.
Board of Directors
The Board of Directors at S.F. Holding comprises executive and independent non-executive directors, ensuring robust corporate governance.
Executive Directors
| Name | Age | Details |
|---|---|---|
| Mr. Wang Wei | 54 | Founder, Chairman, and General Manager. Controls Mingde Holding and drives strategic vision. |
| Mr. Ho Chit | Not Specified | Authorized representative, key in financial and operational oversight. |
| Ms. Wang Xin | Not Specified | Oversees strategic initiatives and operational efficiency. |
| Mr. Xu Bensong | Not Specified | Appointed on October 30, 2024, focuses on business development. |
Independent Non-Executive Directors
| Name | Age | Details |
|---|---|---|
| Mr. Lee Carmelo Ka Sze | 64 | Holds bachelor’s and master’s degrees in Laws, provides legal and governance expertise. |
| Mr. Zhang Shun | 33 | Master’s degree in Economics from Sun Yat-sen University, focuses on financial strategy. |
Details:
- The Board oversees day-to-day management, administration, and operations, ensuring compliance with regulatory requirements.
- Directors’ remuneration in 2024 totaled RMB 25.19 million, reflecting performance-based incentives.
- The Board reviewed key reports, including financial and internal control reports, in 2024.
Parent Company Details
S.F. Holding does not have a parent company in the traditional sense. However, Mingde Holding acts as the controlling shareholder, with Mr. Wang Wei owning 99.90% of its equity. Mingde Holding plays a pivotal role in the company’s governance and strategic direction.
Details:
- Name: Mingde Holding
- Role: Controlling shareholder
- Ownership: Mr. Wang Wei holds 99.90% of Mingde Holding’s equity.
- Non-Compete Undertaking: Provided by Mingde Holding and Mr. Wang Wei on May 22, 2016, to avoid conflicts of interest with S.F. Holding’s operations.
Investment Details
S.F. Holding has made strategic investments to enhance its logistics capabilities and financial portfolio.
Passive Investments
| Investment Type | 2024 (RMB ‘000) | 2023 (RMB ‘000) | Details |
|---|---|---|---|
| Financial Assets at FVPL | 8,231,994 | 9,489,535 | Includes unlisted equity investments valued at RMB 7,198,776 in 2024. |
| Capital Expenditures | 1,636,717 | 1,991,511 | Includes purchases of property, plant, and equipment (RMB 1,515,674). |
Key Investment Highlights
- Ezhou Cargo Hub: Significant investments in 2024 to enhance air cargo services, with projects worth billions.
- Unlisted Equity Investments: Valued at RMB 7,198,776, contributing to financial stability.
- Derivatives for Hedging: Used to manage foreign exchange risks, with no significant transfers among fair value measurement levels in 2024.
Future Investment Plan
As of December 31, 2024, S.F. Holding does not have significant investment or capital asset plans outlined for the future. However, the company’s strategic vision includes:
- Industry-Specific Strategy: Expanding logistics market share across industries like automotive, electronics, and pharmaceuticals.
- Technological Advancements: Enhancing digital transformation through investments in unmanned vehicles, AI, and intelligent supply chain solutions.
- Global Expansion: Strengthening international logistics networks, leveraging the Ezhou cargo hub and partnerships with global brands.
- Sustainability: Continued investment in green logistics, including energy-efficient vehicles and carbon reduction initiatives.
Conclusion
S.F. Holding Co., Ltd. stands as a beacon of innovation and excellence in the logistics and supply chain industry. With a revenue of RMB 284.4 billion in 2024, a global presence covering 206 countries, and a commitment to sustainability, the company continues to redefine logistics standards. Its diversified business segments, robust financial performance, and strategic investments position it for sustained growth. Under the leadership of Mr. Wang Wei and a dedicated Board of Directors, S.F. Holding is poised to maintain its dominance as China’s leading logistics provider while expanding its global footprint.
