SF Express’ Intra-City Subsidiary Passes HKEx Listing Hearing
According to the Hong Kong Stock Exchange (HKEx), Hangzhou SF Intra-City Industrial Co., Ltd. (SF Intra-City) on Monday passed its listing hearing.
Earlier, SF Express announced on the evening of May 28 that in order to expand the diversified financing channels of the company and build an international capital operation platform for business sectors, the company plans to split its subsidiary SF Intra-City for an independent listing on the HKEx.
On June 30 of this year, SF Intra-City submitted an application for listing on the HKEx. According to information released by the company, its revenue in the first five months of this year was 3.046 billion yuan ($477.35 million), with a total of 514 million orders, representing an increase of 151.2% year-on-year. According to the prospectus, SF Intra-City plans to issue no more than 230 million overseas listed foreign shares, each with a par value of 1 yuan ($0.16), all of which are common shares.
According to public information, SF Intra-City was established on June 21, 2019, with a registered capital of about 802 million yuan. It mainly provides on-demand delivery services for customers. In other words, it provides customized or standardized on-demand delivery services for various businesses and individuals, as well as errands services such as helping to deliver, pick up and buy.
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SF Express has begun investing in the intra-city delivery business since as early as 2016, and has since developed rapidly. From 2016 to 2019, the compound annual growth rate of revenue of this business reached 240%, far higher than the industry average.
According to the China Federation of Logistics and Purchasing, from 2014 to 2019, the number of users in China’s on-demand delivery market increased from 124 million to 421 million, with a compound annual growth rate of 27.69%. In the same period, the scale of China’s on-demand delivery market increased from 11.03 billion yuan to 131.26 billion yuan, with a compound annual growth rate of 64.10%.