SF Intra-City reduced losses by over 50% year-over-year in 2022, Increasing benefits from scale effect
Hangzhou SF Intra-City Industrial Co., Ltd. (“SF Intra-City” or the “Company”, together with its subsidiaries the “Group”; stock code: 9699), the largest third-party on-demand delivery service platform in China(1), announced today that the Group expects the consolidated net loss attributable to the owners of the Company for the year ended 31 December 2022 (the “Year”) to decrease by more than 50% compared to the corresponding period of the previous year. These results reflect the increasingly apparent benefits of the Group’s diversified service landscape and technology-driven efficiency improvements.
During the Year, the Group strived to provide high quality, efficient and stable instant fulfilment services, achieving good revenue growth and enhanced economies of scale and network effects thanks to its efforts to build a healthy and robust business structure and its in-depth cultivation of diversified service scenarios such as delivery in a broad range of sectors, including the food and beverage and retail sectors, its expansion in lower-tier cities and personalised services. Furthermore, the significant improvements in the Group’s gross profit and gross profit margin for the Year are attributable to differentiated services driving high-value orders, comprehensive planning and scheduling driven by technology to achieve better delivery network efficiency and various measures to continuously refine management and enhance operation quality, which led to improvement in the efficiency of resource allocation and utilisation.
SF Intra-City’s gross profit has turned positive since FY2021’s annual results, and gross profit and net profit improved further in the first half of FY2022, achieving a gross profit of RMB180.2 million and a gross profit margin of 4.0% in the first half of FY2022. In addition, the Group previously entered into a delivery partnership with Douyin Life Service, which is now available on a trial basis in a number of cities. With the accelerated development of Douyin’s live e-commerce ecosystem, this segment will contribute considerable incremental order volume to SF Intra-City in the future. As the largest third-party on-demand delivery service platform in China, the Group continues to achieve benefits from the scale effect, and both the fundamentals and the overall trend continue to improve, driving stronger earnings performance.
Mr. Sun Haijin, CEO of SF Intra-City said, “Merchants’ and users’ demand for on-demand delivery has clearly increased over the last year, and the value of third-party on-demand delivery services is being realized. In order to enhance the service experience for our merchants and users, we have further developed and strengthened our technology capabilities, operational infrastructure and business layout over the years, driving high levels of revenue growth and continuous improvements in profitability. Looking ahead, we will continue to broaden our range of service scenarios and industry solutions, optimize our business structure, and enhance our value by creating differentiated service capabilities, so as to ensure a high-quality and stable consumer experience and empower merchants’ business operations. We firmly believe in the long-term value of local lifestyle services and on-demand services, and we will strive to achieve profitability and create long-term value for our 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/.
(1) Ranking is based on independent third-party order volume in China in 2021, according to iResearch. The calculation of order volume takes into account the number of orders sourced independently by the market players, excluding orders from related parties.
Topic: Earnings
