"Science and Technology Innovation Board Daily" reported on September 2 (Reporter Xu Cihao) Recently, Fengchao Holdings Co., Ltd. (hereinafter referred to as "Fengchao") officially submitted a prospectus to the Hong Kong Stock Exchange and plans to list on the main board. Huatai

"Science and Technology Innovation Board Daily" reported on September 2 (Reporter Xu Cihao) A few days ago, Fengchao Holdings Co., Ltd. (hereinafter referred to as "Fengchao") officially submitted a prospectus to the Hong Kong Stock Exchange, intending to be listed on the main board, with Huatai International as the exclusive Sponsor. The

prospectus shows that Fengchao, which suffered losses for three consecutive years from 2021 to 2023, turned a profit for the first time in the first five months of this year.

As of May 31, 2024, Fengchao's smart express cabinet network consists of 330.2 thousand sets of smart cabinets with approximately 29.9 million compartments. The service scope covers approximately 209.0 thousand communities in 31 provinces in China, and has accumulated a total of 367.8 million consumers and 3.5 million couriers provide services. Zhao Xiaomin, an

express logistics expert and CEO of Guanshuo Capital, told a reporter from the Science and Technology Innovation Board Daily that Fengchao’s profits show that its model is feasible. As a leader in the express cabinet market, it currently only has 330,000 sets of cabinets, indicating that it still has huge room for growth. , ""Fengchao's challenges lie in its fundraising capabilities, expansion efforts and capital market expectations for its future. From the perspective of growth path, Fengchao needs to strengthen capital operation and business expansion."

Turned into a loss for the first time in the first five months of this year

The prospectus shows that from 2021 to 2023, Fengchao's revenue will be 2.526 billion yuan, 2.891 billion yuan, 3.812 billion yuan, and net losses were 2.071 billion yuan, 1.166 billion yuan, and 541 million yuan respectively. The cumulative loss in three years exceeded 3.7 billion yuan. However, in the first five months of this year, Fengchao’s revenue reached 1.904 billion yuan, and it achieved a turnaround. Net profit was 71.6 million yuan. Fengchao explained in its prospectus that the improvement in profitability was mainly due to the significant growth in profitability of express terminal distribution services, the rapid growth of consumer smart delivery services and value-added services, and the rapid growth of operational operations. Improvement of efficiency.

Specifically speaking, Fengchao mainly consists of express terminal distribution services, consumer intelligent delivery services, value-added services and other three parts.

Among them, express terminal distribution services are the pillar business of Fengchao's revenue. Data disclosed in the book show that from 2021 to 2023, the revenue of this business was 1.46 billion yuan, 1.69 billion yuan, and 1.84 billion yuan respectively. Although revenue has increased, its proportion of total revenue has shrunk. The prospectus shows that the This business dropped from 57.6% in 2021 to 48.2% in 2023. By May 31, 2024, the proportion of terminal distribution service revenue fell to 40.8%.

It is worth noting that this business faces a huge external environment. Challenge, the main scenario of express terminal delivery service is that the courier delivers the package to Fengchao smart cabinet, and then the consumer picks up the package at Fengchao smart cabinet. On March 1 this year, the "Express Delivery Market Management Measures" (22nd of 2023). Order) was officially implemented, proposing that anyone who uses smart express boxes, express service stations, etc. to deliver express items without the user's consent will be fined 10,000 to 30,000 yuan if the circumstances are serious.

This means that couriers and express delivery companies will be fined simply. It is difficult for Fengchao to see room for future business growth by collecting express delivery temporary storage fees from users.

However, with the vigorous development of online live streaming and the increase in return and exchange rates in recent years, the revenue contributed by consumer smart delivery services has increased. It accounts for an increasing proportion of total revenue. This business involves consumers delivering packages in Fengchao smart cabinets for couriers to pick up for delivery. It is mainly e-commerce return and exchange comprehensive services and personal services. Bulk order shipping service.

financial report shows that in 2021, 2022, 2023 and the five months ending on May 31, 2024, the revenue of this service was 149 million yuan, 310 million yuan, 1.02 billion yuan and 1.02 billion yuan respectively. 692 million yuan, accounting for 5.9%, 10.7%, 26.8% and 36.3% of the total revenue in the same period respectively.

As for value-added services, they mainly include advertising revenue and revenue from housekeeping services such as laundry, cleaning, and home appliance cleaning machine repairs. The financial report shows that in 2021, 2022, 2023 and the five months ending on May 31, 2024, the revenue of this service will be 922 million yuan, 896 million yuan, 956 million yuan and 435 million yuan respectively, accounting for the same period respectively. The proportions of total revenue are 36.5%, 31%, 25% and 22.9%.

Zhongtong, STO, and Yunda collectively earned more than 1.4 billion yuan

The prospectus shows that Fengchao has received multiple rounds of financing since its establishment.

In June 2015, Fengchao received 500 million yuan from SF Investment, STO, ZTO, Shanghai Yunyun, a subsidiary of Yunda, and Suzhou GLP. After this round of financing was completed, SF Investment held 35% of the shares; STO, ZTO and Yunda Each holds 20% of the shares; Suzhou GLP holds 5%. In April 2016, these investors invested another 500 million yuan to continue supporting Fengchao.

By January 2017, with the support of SF Investment, STO, Yunda, GLP, CDH Investment, Feldspar Capital, Yiyao Investment, Zhongding Capital, Mingde Holdings controlled by Wang Wei, etc., Fengchao received 2.5 billion Yuan b1 financing.

However, in June 2018, ZTO, STO and Yunda, which had been running for three years, chose to transfer all their shares in Fengchao to Weirong Development. This also means that “two links and one reach” will withdraw its shares from Fengchao. At that time, both Yunda and STO stated in their announcements that they were aiming to optimize the asset allocation structure and achieve reasonable investment returns. From the establishment of

to the collective withdrawal, ZTO, STO and Yunda earned about 500 million yuan, 389 million yuan and 545 million yuan respectively.

Fengchao’s latest financing occurred in January 2021. According to the announcement of SF Holding , Fengchao’s pre-investment valuation is US$3 billion. This time, Fengchao will complete strategic financing of US$400 million, with a post-investment valuation of approximately It is US$3.4 billion, equivalent to more than 24 billion yuan. In terms of

equity institutions, the prospectus shows that in Fengchao’s pre-IPO shareholder structure, SF Express founder Wang Wei held a total of approximately 36.54% of the shares.

In addition, China Post Group holds 17.01% of the shares through rarlon inc; listed company Chuanfa Longman holds 6.05% of the shares through cayman santai group limited; GLP Group holds 5.52% of the shares through hidden hill spv i; Zhixin Capital holds 5.52% through trustbridge partners viil.p holds 5.46% of the shares; CDH related entities CDH Fuhong, CDH Fuhan, CDH New Trends, and Changxing hold 3.34%, 0.96%, 0.84%, and 0.47% respectively; Shen Nanpeng through hsg growth vi 2020-f l.p holds 1.06% of the shares.

Overseas market

According to the information of Chishi Consulting, as of May 31, 2024, Fengchao’s smart express cabinet network consists of 330,000 sets of Fengchao smart cabinets, with a total of approximately 29.9 million compartments, and its service scope covers 31 provinces There are about 209,000 communities in (autonomous regions and municipalities).

However, East China and South China are Fengchao’s main markets. The prospectus shows that there are 330,000 sets of Fengchao smart cabinets in East China, including 144,900 sets, accounting for 43.9% of the entire smart cabinet network; South China has 75,900 sets, accounting for 23%; North China, South China and Southwest each have There are 9,300 groups, 9,200 groups and 8,200 groups, accounting for 9.3%, 9.3% and 8.3% respectively; while there are 11,200 groups and 8,800 groups in the northeast and northwest respectively, accounting for 3.5% and 2.7% respectively.

It is worth mentioning that in addition to community mailing services, Fengchao is also actively broadening its business boundaries. According to the plan, Fengchao will strengthen the deployment of luggage lockers in passenger distribution centers such as transportation hubs, tourist attractions, and large shopping malls. The goal is to have the number of luggage lockers in Hangzhou exceed 100 by the end of 2024. In addition, Fengchao has also teamed up with Shanghai Metro and Wuxi Metro to pilot luggage storage services.

In addition, Fengchao has strategically deployed in the global market. According to the prospectus, Fengchao has expanded its smart cabinet network to Thailand in 2022. As of May 31, 2024, 200 groups of smart cabinets have been deployed in Thailand, accounting for 0.1% of the entire Fengchao smart cabinet network. As an associated subsidiary of Fengchao,

hivebox (thailand) company will generate revenue of 6.4 million yuan and 400,000 yuan from smart cabinets and services purchased from Fengchao in 2023 and as of May 31, 2024, respectively. It is expected that in fiscal year 2024 , fiscal year 2025 and fiscal year 2026. The revenue generated by this service was 7 million yuan, 20 million yuan and 27 million yuan respectively.

Huisheng International Capital President Huang Lichong told a reporter from the Science and Technology Innovation Board Daily that Fengchao chose to develop overseas based on its global strategic vision and insight into future market trends. Overseas development will also help Fengchao diversify single market risks. Achieve diversified operations and sustainable development.