SF Intra-city maintains steady business growth, set to become first in industry to achieve full-year profitability

HONG KONG, March 12, 2024 /PRNewswire/ -- Hangzhou SF Intra-city Industrial Co., Ltd. (Stock Code: 9699.HK), China's largest third-party on-demand delivery service provider, is pleased to announce that the Group is expected to achieve a turnaround from loss to profit for the year ended 31 December 2023 (the "Period"), and is expected to record net profit from continuing operations not less than approximately RMB60 million.

The profit turnaround achieved by SF Intra-city was mainly attributable to healthy and steady revenue growth, an increase in order density and further enhancement of network economies of scale. Meanwhile, the effective business strategy of the Group has pursued healthy and high-quality development, continuous optimisation of the business and customer structure, and increasing contribution to revenue by premium customers and profitable business lines.

Furthermore, the Group has experienced improvements in operational quality and efficiency driven by technology and lean management, enhancement in resource utilisation efficiency and maintenance of gross profit margin and expense ratio at satisfying levels, leading to enhanced profitability.

With the continuous growth of the local lifestyle services market and the live-streaming e-commerce market, the demand for intra-city delivery has increased. For example, on the recent International Women's Day, SF Intra-city on-demand delivery data showed a significant increase in the delivery of flowers, cakes, and other festival gifts. Categories such as bread, pastries, and beverages enhanced the festive atmosphere and also experienced a peak in order volume. Among them, the order volume for bread and pastries increased by 152% compared to the previous year.

At the same time, various e-commerce platforms, traffic platforms, and merchants have launched promotional activities for International Women's Day, such as TikTok's "Goodies Festival" and Tmall Supermarket's "Week of Renewal." This festive consumption trend has also driven significant growth in other on-demand retail categories, with a 135% year-on-year increase in beauty products and a 100% year-on-year increase in product from supermarkets and convenience stores.

SF Intra-city stated that the group will continue to leverage its customized third-party on-demand delivery services. While providing reliable logistics and delivery support for businesses' online and offline multi-channel operations through its one-stop access to the omnichannel ecosystem, the group will continuously optimize its business and customer structure. It includes enhancing revenue contribution and profitability through acquiring high-quality customers and profitable business lines. Through the relentless efforts of all employees, the group has become the first to achieve profitability in the logistics and same-day delivery industry.

SF Intra-city will continue to enhance its delivery capabilities and leverage the "In-store + Business District + City-wide" diversified and flexible network, as well as the intelligent dispatching system of the CLS (City Logistics System). This will effectively improve delivery efficiency and seize long-term development opportunities in the third-party on-demand delivery services market driven by diversified traffic and the development of the local lifestyle market.

SF Intra-city strives to fulfil its mission of "letting more people enjoy a close and beautiful life." The company will fully utilize its own advantages to capture high-quality growth opportunities and enhance profitability while steadily creating greater value for shareholders.

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SOURCE SF Intra-city