Core Insights - The company reported a revenue of approximately 10.236 billion, representing a year-on-year growth of 48.8% [1] - Gross profit was around 681 million, with a year-on-year increase of 43.8% [1] - Adjusted net profit reached approximately 160 million, showing a significant year-on-year growth of 139.0% [1] - Net profit was about 137 million, reflecting a year-on-year increase of 120.43% [1] - Basic and diluted earnings per share were 0.15 [1] Financial Performance - As of June 30, 2025, the company held cash and cash equivalents of 1.134 billion and short-term investment of 1.26 billion, indicating a strong cash flow and ample financial reserves [1] - The financial growth in the first half of the year was attributed to several factors: - Rapid growth in the food delivery and instant retail sectors, leading to over 50% year-on-year increase in same-city delivery service order volume [1] - Optimization of business structure, with increased revenue contribution from quality clients [1] - Technological advancements and lean management improving operational efficiency and expanding network economies of scale, resulting in sustained profit release [1]

Group 1 - The company reported a revenue of 10.236 billion yuan for the first half of 2025, representing a year-on-year growth of 48.8% [2] - The net profit for the same period was 137 million yuan, showing a significant year-on-year increase of 120.4% [2] - The net profit margin improved to 1.3%, compared to 0.9% in the same period last year [2]

Core Viewpoint - SF Express City (09699) reported strong mid-year results for 2025, with significant growth in revenue and profit metrics, driven by the rapid expansion of the food delivery and instant retail sectors [1] Financial Performance - Revenue reached approximately 10.236 billion yuan, representing a year-on-year increase of 48.8% [1] - Gross profit was about 681 million yuan, up 43.8% year-on-year [1] - Adjusted net profit was around 160 million yuan, reflecting a 139.0% increase year-on-year [1] - Net profit stood at approximately 137 million yuan, showing a year-on-year growth of 120.43% [1] - Basic and diluted earnings per share were 0.15 yuan [1] Cash Flow and Financial Health - As of June 30, 2025, the company held cash and cash equivalents of 1.134 billion yuan and short-term investment of 1.26 billion yuan, indicating a strong cash flow position and ample financial reserves [1] Growth Drivers - The impressive financial growth was attributed to several factors: - Rapid growth in the food delivery and instant retail sectors, leading to over 50% year-on-year increase in same-city delivery service order volume [1] - Optimization of business structure, with high-quality customers contributing more to revenue [1] - Technological advancements and lean management practices enhancing operational efficiency and expanding network economies of scale, resulting in sustained profit release [1]

Core Insights - The company reported a significant revenue increase of 48.8% to RMB 10,236 million for the six months ending June 30, 2025 [1] - Gross profit rose by 43.8% to RMB 680.8 million, maintaining a stable gross margin of 6.7% [1] - Net profit attributable to shareholders surged by 120.4% to RMB 137 million, achieving a record net profit margin of 1.3% [1] Financial Performance - Adjusted net profit (non-IFRS) reached RMB 160.2 million, a 139% increase from RMB 67 million in the same period last year [1] - Revenue from same-city delivery services grew by 43.1% to RMB 5,778.7 million, while last-mile service revenue increased by 56.9% to RMB 4,457.3 million [1] Operational Highlights - The company enhanced brand recognition and marketing strategies, resulting in an active consumer base of 24.77 million as of June 30, 2025 [2] - The active rider network expanded to approximately 1.14 million, with rider efficiency improving by 38% year-on-year [2] - The number of high-income riders increased by 65%, and the number of riders earning over RMB 10,000 per month rose by 107% [2] Future Outlook - The company aims for "high-quality healthy growth," focusing on market opportunities in diversified traffic, food delivery, and instant retail [2] - Plans to invest in technology innovations such as unmanned delivery and AI, while collaborating with partners to enhance local service ecosystems [2] - The mission is to enable more people to enjoy a "zero-distance beautiful life" through improved services and network [2]

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company reported significant revenue growth and a substantial increase in net profit for the first half of 2025, while maintaining a stable gross profit margin | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-over-year growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,236.0 | 6,878.5 | 48.8 | | Gross Profit | 680.8 | 473.3 | 43.8 | | Gross Profit Margin | 6.7% | 6.9% | -0.2pp | | Net Profit | 137.0 | 62.2 | 120.4 | | Net Profit Margin | 1.3% | 0.9% | +0.4pp | | Adjusted Net Profit | 160.2 | 67.0 | 139.0 | | Adjusted Net Profit Margin | 1.6% | 1.0% | +0.6pp | - The Board recommends no interim dividend for the six months ended June 30, 2025, consistent with the prior period[5](index=5&type=chunk) [Financial Information](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) This section presents the interim condensed consolidated financial statements, including comprehensive income and financial position, highlighting key financial metrics and changes [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company achieved significant revenue and profit growth during the reporting period, though other comprehensive income declined due to exchange differences and fair value changes in equity investments | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 10,235,950 | 6,878,470 | | Cost of Revenue | (9,555,153) | (6,405,187) | | Gross Profit | 680,797 | 473,283 | | Operating Profit | 150,140 | 62,632 | | Profit for the Period | 137,049 | 62,174 | | Profit Attributable to Owners of the Company | 137,049 | 62,174 | | Basic Earnings Per Share (RMB) | 0.15 | 0.07 | | Diluted Earnings Per Share (RMB) | 0.15 | 0.07 | | Total Comprehensive Income for the Period | 128,083 | 50,492 | - Exchange differences from translating overseas operations shifted from a gain of **RMB 4,899 thousand** in H1 2024 to a loss of **RMB 4,816 thousand** in H1 2025[9](index=9&type=chunk) - Fair value losses on equity investments at fair value through other comprehensive income narrowed from **RMB 16,581 thousand** in H1 2024 to **RMB 4,150 thousand** in H1 2025[9](index=9&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets and equity increased, maintaining a healthy net current asset position and stable liability structure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 5,081,812 | 4,669,733 | | Total Non-current Assets | 378,711 | 398,084 | | Total Current Assets | 4,703,101 | 4,271,649 | | Total Equity | 3,111,754 | 2,960,528 | | Total Liabilities | 1,970,058 | 1,709,205 | | Total Current Liabilities | 1,963,620 | 1,700,065 | | Total Non-current Liabilities | 6,438 | 9,140 | - Trade receivables increased from **RMB 1,660,432 thousand** as of December 31, 2024, to **RMB 2,202,044 thousand** as of June 30, 2025[10](index=10&type=chunk) - Cash and cash equivalents decreased from **RMB 1,369,593 thousand** as of December 31, 2024, to **RMB 1,135,438 thousand** as of June 30, 2025[10](index=10&type=chunk) [General Information and Basis of Preparation](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section provides an overview of the company's incorporation, business activities, listing status, and the accounting standards used for preparing the interim financial information [General Information](index=6&type=section&id=1.1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Hangzhou SF Intra-city Industrial Co., Ltd. was incorporated in China in 2019, primarily engaged in intra-city on-demand delivery services, listed on HKEX in 2021, with Mr. Wang Wei as the ultimate controlling party - The Company was incorporated as a joint stock company in the People's Republic of China on **June 21, 2019**[12](index=12&type=chunk) - The Group is principally engaged in intra-city on-demand delivery services in China[12](index=12&type=chunk) - The Company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 14, 2021**[13](index=13&type=chunk) [Basis of Preparation](index=6&type=section&id=1.2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial information is prepared in accordance with IAS 34 and should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024 - The interim financial information has been prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'**[15](index=15&type=chunk) - The interim financial information should be read in conjunction with the Group's annual financial statements for the year ended **December 31, 2024**[15](index=15&type=chunk) [Accounting Policies](index=6&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section details the new and amended accounting standards adopted by the Group and those not yet effective, assessing their impact on financial reporting [New and Amended Standards Adopted by the Group](index=7&type=section&id=2.1%20%E6%9C%AC%E9%9B%86%E5%9C%98%E6%8E%A1%E7%B4%8D%E7%9A%84%E6%96%B0%E6%BA%96%E5%89%87%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E6%BA%96%E5%89%87) The Group adopted amendments to IAS 21 'Lack of Exchangeability' from January 1, 2025, with no significant impact expected on financial statements - Amendments to **IAS 21 'Lack of Exchangeability'** are first applicable to financial reporting periods beginning on or after **January 1, 2025**[18](index=18&type=chunk) - The aforementioned amendments had no significant impact on amounts recognized in prior periods and are not expected to have a significant impact on current or future periods[18](index=18&type=chunk) [New and Amended Standards Not Yet Adopted by the Group](index=7&type=section&id=2.2%20%E6%9C%AC%E9%9B%86%E5%9C%98%E5%B0%9A%E6%9C%AA%E6%8E%A1%E7%B4%8D%E7%9A%84%E6%96%B0%E6%BA%96%E5%88%99%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E6%BA%96%E5%88%99) The Group assessed new or amended accounting standards not yet effective, expecting no significant impact on financial performance or position, except for potential presentation adjustments from IFRS 18 | Standard | Effective Date | | :--- | :--- | | Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments | January 1, 2026 | | IFRS 18: Presentation and Disclosure in Financial Statements | January 1, 2027 | | IFRS 19: Disclosures about Non-public Subsidiaries | January 1, 2027 | | Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | - It is expected that these new or amended standards and interpretations will not have any significant impact on the Group's financial performance and position in current or future reporting periods when they become effective, except for certain presentation adjustments that may be required upon adoption of **IFRS 18**[19](index=19&type=chunk) [Segment Information and Revenue](index=7&type=section&id=3%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%E5%8F%8A%E6%94%B6%E5%85%A5) The Group operates as a single segment, with detailed revenue breakdown by service type and major customers, and revenue recognition policies - The Group operates and manages as a single operating segment, namely the intra-city on-demand delivery services business, thus no segment information is presented[20](index=20&type=chunk) Revenue by Source | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Intra-city On-demand Delivery Service Revenue | 10,235,950 | 6,878,470 | - Revenue from intra-city on-demand delivery services is recognized upon completion, typically within one day, with no unfulfilled performance obligations at the end of the financial period[22](index=22&type=chunk) Revenue by Major Customers | Major Customers | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Subsidiaries of SF Holding | 4,653,419 | 2,855,518 | | Customer A | 1,286,729 | 556,829 | [Expenses by Nature](index=8&type=section&id=4%20%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E8%B2%BB%E7%94%A8) This section provides a detailed breakdown of the Group's expenses by nature, including labor outsourcing, employee benefits, and marketing costs | Expense Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Labor Outsourcing Costs | 9,482,785 | 6,340,090 | | Employee Benefit Expenses | 400,124 | 288,503 | | Information Service Fees | 48,078 | 36,495 | | Material Costs | 36,823 | 31,204 | | Marketing and Promotion Expenses | 26,628 | 36,465 | | Amortization of Intangible Assets | 21,111 | 21,516 | | Office and Rental Expenses | 15,700 | 15,508 | | Call Center Service Fees | 12,213 | 14,057 | | Professional Service Fees | 9,362 | 5,036 | | Insurance Expenses | 8,359 | 395 | | Other Taxes and Surcharges | 7,042 | 2,304 | | Depreciation of Right-of-Use Assets | 6,681 | 8,252 | | Travel Expenses | 5,982 | 5,182 | | Depreciation of Property, Plant and Equipment | 4,359 | 3,346 | | Auditor's Remuneration - Audit and Audit-related Services | 473 | 630 | | Others | 23,520 | 26,684 | | **Total** | **10,109,240** | **6,835,667** | [Income Tax Expense](index=9&type=section&id=5%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) This section details the Group's income tax expenses, including current and deferred taxes, and outlines applicable preferential tax rates and the impact of OECD Pillar Two legislation | Tax Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Current Tax | 412 | 1,413 | | PRC Enterprise Income Tax - Deferred Tax | 20,382 | 16,985 | | **Income Tax Expense** | **20,794** | **18,398** | - Shunda Tongxing qualifies as a 'High-tech Enterprise' and enjoys a preferential income tax rate of **15%**[25](index=25&type=chunk) - Subsidiaries such as Suzhou Fengpai Technology Co., Ltd. are classified as 'Small and Micro Profit Enterprises' and enjoy a preferential income tax rate of **20%**[26](index=26&type=chunk) - Hong Kong profits tax rate is **16.5%**, while other jurisdictions (e.g., UK, Netherlands, Germany, Singapore) typically have rates around **19%**[27](index=27&type=chunk)[28](index=28&type=chunk) - The Group's management assessment indicates no significant quantifiable impact from OECD Pillar Two legislation on the Group for the six months ended **June 30, 2025**[29](index=29&type=chunk) [Earnings Per Share](index=10&type=section&id=6%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section presents the basic and diluted earnings per share, reflecting the company's profitability per share and the potential dilutive effects of incentive schemes [Basic Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=6%28a%29%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%88%A9%E6%BD%A4%E7%9A%84%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E7%9B%88%E5%88%A9) Basic earnings per share attributable to owners of the Company significantly increased during the reporting period, reflecting enhanced profitability | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousand) | 137,049 | 62,174 | | Weighted Average Number of Shares Outstanding | 908,536,107 | 914,655,385 | | Basic Earnings Per Share (RMB) | 0.15 | 0.07 | [Diluted Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=6%28b%29%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%88%A9%E6%BD%A4%E7%9A%84%E6%AF%8F%E8%82%A1%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9) After considering the potential dilutive effect of the H-share incentive scheme, diluted earnings per share remained consistent with basic earnings, indicating limited dilution | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousand) | 137,049 | 62,174 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 915,624,613 | 916,034,077 | | Diluted Earnings Per Share (RMB) | 0.15 | 0.07 | - The H-share incentive scheme has a potential dilutive effect on earnings per share, with an adjustment of **7,088,506 shares** for H1 2025[32](index=32&type=chunk)[33](index=33&type=chunk) [Trade Receivables](index=10&type=section&id=7%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section details the composition and aging of trade receivables, including amounts from third parties and related parties, along with changes in impairment provisions Trade Receivables Net | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Third Parties | 1,156,971 | 708,413 | | Related Parties | 1,050,575 | 955,568 | | Provision for Impairment Losses | (5,502) | (3,549) | | **Net Trade Receivables** | **2,202,044** | **1,660,432** | Aging of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 1,935,482 | 1,421,149 | | 30 to 180 days | 272,064 | 242,832 | Changes in Provision for Impairment Losses | Change | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Period | (3,549) | (2,802) | | Provision for Impairment Losses | (1,717) | (3,783) | | Write-off of Irrecoverable Amounts | – | 2,732 | | Reversal of Bad Debts Written Off in Prior Periods | (236) | – | | End of Period | (5,502) | (3,853) | [Trade Payables](index=11&type=section&id=8%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) This section provides a breakdown of trade payables by category and aging, reflecting the company's short-term payment obligations Trade Payables by Category | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables to Third Parties | 1,239,081 | 1,009,595 | | Trade Payables to Related Parties | 21,453 | 20,044 | | **Total** | **1,260,534** | **1,029,639** | Aging of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 1,216,892 | 984,253 | | 3 months to 1 year | 34,078 | 35,653 | | Over 1 year | 9,564 | 9,733 | [Share-based Payments](index=12&type=section&id=9%20%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BB%98%E6%AC%BE) This section outlines the company's employee and H-share incentive schemes, detailing changes in granted shares and recognized share-based compensation expenses [Employee Incentive Scheme](index=12&type=section&id=9%28a%29%20%E5%93%A1%E5%B7%A5%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) The company adopted an employee incentive scheme in 2023, motivating employees through trust beneficial interests and recognizing related expenses during the reporting period - The Company adopted an employee incentive scheme on **April 19, 2023**[37](index=37&type=chunk) Changes in Trust Beneficial Interests | Change | Number | | :--- | :--- | | Beginning of Period | 37,788,535 | | Forfeited During Period | (1,408,513) | | End of Period | 36,380,022 | - Expenses arising from the employee incentive scheme recognized for the six months ended June 30, 2025, amounted to **RMB 10,346,000**[39](index=39&type=chunk) [H-share Incentive Scheme](index=13&type=section&id=9%28b%29%20H%E8%82%A1%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) The employee incentive scheme was revised and renamed the H-share incentive scheme in May 2025, with **22,100,561 shares** granted and related expenses recognized during the reporting period - The Company revised its employee incentive scheme in **May 2025** and renamed it the 'H-share Incentive Scheme'[40](index=40&type=chunk) Changes in Number of Granted Shares | Change | Number | | :--- | :--- | | Beginning of Period | – | | Granted During Period | 22,100,561 | | End of Period | 22,100,561 | - Expenses arising from the H-share incentive scheme recognized for the six months ended June 30, 2025, amounted to **RMB 12,797,000**[43](index=43&type=chunk) [Dividends](index=13&type=section&id=10%20%E8%82%A1%E6%81%AF) This section states the Board's recommendation regarding interim dividends for the reporting period - No dividends were paid or declared by the Group for the six months ended **June 30, 2025, and 2024**[44](index=44&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a comprehensive review of the company's business performance, operational highlights, and strategic outlook for the reporting period [Business Review](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company achieved significant revenue and net profit growth in H1 2025, driven by rapid development in food delivery and instant retail, optimized business structure, and efficiency gains from technology and lean management, solidifying its position as China's largest third-party on-demand delivery service provider [Overview](index=14&type=section&id=%E6%A6%82%E8%A6%BD) As China's largest third-party on-demand delivery service provider, the company achieved robust revenue growth and doubled net profit in H1 2025, continuously strengthening its differentiated competitive advantages - The company is China's **largest third-party on-demand delivery service provider**[45](index=45&type=chunk) Intra-city On-demand Delivery Service Revenue | Business Line | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-over-year growth (%) | | :--- | :--- | :--- | :--- | | Total Intra-city On-demand Delivery Services | 10,235,950 | 6,878,470 | 48.8 | | Intra-city Delivery Services | 5,778,682 | 4,037,955 | 43.1 | | Last-mile Delivery Services | 4,457,268 | 2,840,515 | 56.9 | - Net profit increased by **120.4%** year-over-year, with adjusted net profit for the period increasing by **139.0%** year-over-year[48](index=48&type=chunk) [Intra-city Delivery](index=15&type=section&id=%E5%90%8C%E5%9F%8E%E9%85%8D%E9%80%81) Intra-city delivery service revenue grew by **43.1%**, driven by increased food delivery demand, robust growth in non-catering scenarios, expanded active merchant and consumer base, penetration into lower-tier markets, and proactive pricing strategies [Intra-city Delivery for Merchants](index=15&type=section&id=%E9%9D%A2%E5%90%91%E5%95%86%E5%AE%B6%E7%9A%84%E5%90%8C%E5%9F%8E%E9%85%8D%E9%80%81) Intra-city delivery revenue for merchants grew by **55.4%** year-over-year, benefiting from merchant base growth, optimized customer structure, full-scenario service capabilities, strategic synergy with SF Group, and active expansion into lower-tier markets and cross-border business - Intra-city delivery services for merchants generated revenue of **RMB 4,466.9 million**, a year-over-year increase of **55.4%**[50](index=50&type=chunk) - As of June 30, 2025, the number of active merchants on the platform reached **850,000** over the past 12 months, a year-over-year increase of **55%**[52](index=52&type=chunk) - Tea beverage delivery revenue increased by **105%** year-over-year, with high double-digit growth across categories such as supermarkets, convenience stores, pharmaceuticals, and maternal and infant products[53](index=53&type=chunk) - Monthly settlement customers served jointly with SF Group contributed **RMB 208.0 million** in external incremental revenue, a year-over-year increase of **29.5%**[56](index=56&type=chunk) [Intra-city Delivery for Consumers](index=18&type=section&id=%E9%9D%A2%E5%90%91%E6%B6%88%E8%B2%BB%E8%80%85%E7%9A%84%E5%90%8C%E5%9F%8E%E9%85%8D%E9%80%81) Intra-city delivery revenue for consumers increased by **12.7%** year-over-year, primarily due to an expanded active consumer base, enhanced brand influence, upgraded product services, and integration with the SF Group ecosystem - Intra-city delivery revenue for consumers was **RMB 1,311.8 million**, a year-over-year increase of **12.7%**[58](index=58&type=chunk) - Revenue from one-to-one 'Exclusive Delivery' services **tripled** year-over-year[59](index=59&type=chunk) - As of June 30, 2025, the active consumer base reached **24.77 million** over the past 12 months[60](index=60&type=chunk) [Last-mile Delivery](index=18&type=section&id=%E6%9C%80%E5%BE%8C%E4%B8%80%E5%85%AC%E9%87%8C%E9%85%8D%E9%80%81) Last-mile delivery service revenue grew by **56.9%**, driven by enhanced delivery fulfillment capabilities, business synergy with key clients, support for delivery and pickup segments, and expansion of a diversified product matrix - Revenue from last-mile delivery services was **RMB 4,457.3 million**, representing a **56.9%** increase compared to the same period last year[63](index=63&type=chunk) - Order volume for pickup support services increased by **over 150%** year-over-year[63](index=63&type=chunk) [The Group's Riders](index=19&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E9%A8%8E%E6%89%8B) The company's rider network continues to expand, with significant improvements in per capita efficiency and income, while the company is committed to building a comprehensive welfare system to enhance rider safety and health protection - As of June 30, 2025, the platform's annual active riders further expanded to approximately **1.14 million**[64](index=64&type=chunk) - Rider per capita efficiency in June 2025 increased by **38%** year-over-year, the number of riders with mid-to-high income levels increased by **65%** year-over-year, and the number of riders with average monthly income exceeding RMB 10,000 increased by **107%** year-over-year[64](index=64&type=chunk) - During the reporting period, the safety accident rate decreased by **11%** compared to last year[66](index=66&type=chunk) [Technology](index=20&type=section&id=%E6%8A%80%E8%A1%93) The company views technology as its business core, advancing operational digitalization and AI-driven intelligent decision-making through its City Logistics System (CLS), and actively exploring commercial applications of unmanned delivery technology - The City Logistics System (CLS) encompasses three core functions: intelligent business planning and marketing management, integrated rider dispatch and intelligent order distribution, and intelligent operations optimization[68](index=68&type=chunk) - Actively promoting multi-scenario applications of AI large model capabilities, with self-developed AI intelligent agent tools applied in rider management, station master services, intelligent customer service, and merchant operations[69](index=69&type=chunk) - As of the end of June 2025, over **300 unmanned vehicles** have been deployed in daily operations, covering **over 60 cities** nationwide, with an average of approximately **20,000 active trips per month**[70](index=70&type=chunk) [Outlook](index=21&type=section&id=%E5%B1%95%E6%9C%9B) The company will adhere to its 'high-quality healthy growth' objective, seize market opportunities, continuously expand scale, broaden scenarios, enhance services, solidify its network, and increase investment in technological innovations like unmanned delivery and AI - The company will adhere to its 'high-quality healthy growth' business objective, embracing market opportunities from diversified traffic, continuous increase in penetration rates of food delivery and instant retail, accelerated intra-city logistics, and sustained penetration of third-party on-demand delivery services[71](index=71&type=chunk) - Will continue to focus on core value contributions within the local service ecosystem and increase investment in technological innovations such as unmanned delivery and AI[71](index=71&type=chunk) [Financial Performance Analysis](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) This section offers a detailed analysis of the company's financial results, covering revenue, costs, profit margins, and key financial ratios for the reporting period [Revenue](index=24&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the company's revenue increased by **48.8%** year-over-year to **RMB 10,236.0 million**, driven by healthy high-quality development, deepened client cooperation, increased demand for food delivery and instant retail, and penetration into lower-tier markets | Business Line | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Intra-city On-demand Delivery Services | 10,235,950 | 6,878,470 | | Intra-city Delivery Services (for Merchants) | 4,466,927 | 2,874,085 | | Intra-city Delivery Services (for Consumers) | 1,311,755 | 1,163,870 | | Last-mile Delivery Services | 4,457,268 | 2,840,515 | | **Total** | **10,235,950** | **6,878,470** | - Revenue increased by **48.8%** to **RMB 10,236.0 million**, primarily due to healthy high-quality development, deepened client cooperation, rapid increase in order volume driven by food delivery and instant retail demand, and enhanced penetration into lower-tier markets[79](index=79&type=chunk) [Cost of Revenue](index=25&type=section&id=%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of revenue increased by **49.2%** year-over-year to **RMB 9,555.2 million**, primarily due to increased rider delivery costs driven by business scale and order volume growth | Cost Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Labor Outsourcing Costs | 9,421,865 | 6,293,403 | | Amortization of Intangible Assets | 18,286 | 17,593 | | Material Costs | 36,176 | 30,758 | | Employee Benefit Expenses | 28,633 | 17,110 | | Depreciation of Right-of-Use Assets | 724 | 2,848 | | Depreciation of Property, Plant and Equipment | 2,548 | 1,051 | | Others | 46,921 | 42,424 | | **Total** | **9,555,153** | **6,405,187** | - Cost of revenue increased by **49.2%** to **RMB 9,555.2 million**, primarily due to increased rider delivery costs driven by business scale and order volume growth[81](index=81&type=chunk) [Gross Profit and Gross Profit Margin](index=25&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the six months ended June 30, 2025, gross profit increased to **RMB 680.8 million**, with a stable gross profit margin of **6.7%**, driven by economies of scale, a flexible capacity network, and digital intelligence technology capabilities | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Profit | RMB 680.8 million | RMB 473.3 million | | Gross Profit Margin | 6.7% | 6.9% | - Gross profit and gross profit margin remained stable, primarily due to economies of scale from revenue growth, continuous strengthening of the flexible capacity network, and improved operational efficiency driven by digital intelligence technology and lean management[82](index=82&type=chunk) [Selling and Marketing Expenses](index=25&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, selling and marketing expenses increased by **5.9%** to **RMB 107.6 million**, primarily due to increased staff remuneration expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-over-year growth (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 107.6 | 101.6 | 5.9 | - The increase in selling and marketing expenses was primarily due to increased staff remuneration expenses[83](index=83&type=chunk) [Research and Development Expenses](index=26&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, R&D expenses increased by **35.6%** to **RMB 69.5 million**, primarily due to increased R&D investment | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-over-year growth (%) | | :--- | :--- | :--- | :--- | | R&D Expenses | 69.5 | 51.2 | 35.6 | - The increase in R&D expenses was primarily due to increased R&D investment[84](index=84&type=chunk) [Administrative Expenses](index=26&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses increased by **35.8%** to **RMB 377.0 million**, primarily due to increased employee benefit expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-over-year growth (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 377.0 | 277.6 | 35.8 | - The increase in administrative expenses was primarily due to increased employee benefit expenses[85](index=85&type=chunk) [Other Income](index=26&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income decreased by **70.9%** to **RMB 4.0 million**, primarily due to reduced government grants and changes in VAT additional deduction policies | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-over-year change (%) | | :--- | :--- | :--- | :--- | | Other Income | 4.0 | 13.8 | -70.9 | - The decrease in other income was primarily due to reduced government grants and changes in VAT additional deduction policies[86](index=86&type=chunk) [Net Finance Income](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net finance income decreased to **RMB 8.2 million**, primarily due to reduced interest income from lower cash and cash equivalents and declining interest rates | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net Finance Income | 8.2 | 18.3 | - The decrease in net finance income was primarily due to reduced interest income resulting from lower cash and cash equivalents and declining interest rates[87](index=87&type=chunk) [Income Tax Expense](index=26&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense was **RMB 20.8 million**, primarily due to increased profit for the period | Metric | H1 2025 (RMB million) | | :--- | :--- | | Income Tax Expense | 20.8 | - Income tax expense was primarily due to increased profit for the period[88](index=88&type=chunk) [Profit for the Period and Net Profit Margin](index=26&type=section&id=%E6%9C%9F%E5%85%A7%E5%88%A9%E6%BD%A4%E5%8F%8A%E6%B7%A8%E5%88%A9%E6%BD%A4%E7%8E%87) For the six months ended June 30, 2025, the company's net profit and net profit margin were **RMB 137.0 million** and **1.3%** respectively, a significant improvement from the prior period | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net Profit | 137.0 | 62.2 | | Net Profit Margin | 1.3% | 0.9% | [Non-IFRS Measure: Adjusted Net Profit](index=27&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%EF%BC%9A%E7%B6%93%E8%AA%BF%E6%95%B4%E6%B7%A8%E5%88%A9%E6%BD%A4) The company uses adjusted net profit as a non-IFRS measure, adding back share-based compensation expenses to reflect core operating performance, with significant growth in adjusted net profit during the reporting period - Adjusted net profit is defined as profit for the period adjusted by adding back **share-based compensation expenses**[91](index=91&type=chunk) Adjusted Net Profit Reconciliation | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Profit for the Period | 137,049 | 62,174 | | Add: Share-based Compensation Expenses | 23,143 | 4,860 | | **Adjusted Net Profit** | **160,192** | **67,034** | | Adjusted Net Profit Margin | 1.6% | 1.0% | [Cash Flow](index=28&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) For the six months ended June 30, 2025, the company experienced a net decrease in cash and cash equivalents, with cash outflows from operating, investing, and financing activities | Cash Flow Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (62,847) | 99,192 | | Net Cash Used in Investing Activities | (164,237) | (411,040) | | Net Cash Used in Financing Activities | (7,449) | (134,907) | | Net Decrease in Cash and Cash Equivalents | (234,533) | (446,755) | | Cash and Cash Equivalents at End of Period | 1,134,136 | 1,452,713 | - Net cash used in operating activities was **RMB 62.8 million**, primarily due to profit before income tax, adjustments for non-cash and non-operating items, changes in working capital, and income tax paid[95](index=95&type=chunk) - Net cash used in investing activities was **RMB 164.2 million**, primarily due to the purchase of structured deposit products[96](index=96&type=chunk) - Net cash used in financing activities was **RMB 7.4 million**, primarily due to the payment of long-term lease rentals[97](index=97&type=chunk) [Gearing Ratio](index=29&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company no longer calculates its gearing ratio as cash and cash equivalents exceeded the sum of borrowings and lease liabilities - As of **June 30, 2025**, the gearing ratio is no longer calculated as cash and cash equivalents exceeded the sum of borrowings and lease liabilities[98](index=98&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=29&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, financial assets at fair value through profit or loss increased to **RMB 1,296.3 million**, primarily due to increased purchases of structured deposit products | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 1,296.3 | 1,145.9 | - The increase was primarily due to increased purchases of structured deposit products[99](index=99&type=chunk) [Borrowings](index=29&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the company had no outstanding borrowings - As of **June 30, 2025**, we had no outstanding borrowings[100](index=100&type=chunk) [Capital Commitments](index=29&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the company's capital commitments primarily consisted of investments, with amounts remaining stable | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investments | 25,000 | 25,000 | [Capital Expenditures](index=29&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA) For the six months ended June 30, 2025, total capital expenditures amounted to **RMB 40.62 million**, primarily due to increased payments for property, plant and equipment | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Payments for Intangible Assets | 14,367 | 25,714 | | Payments for Property, Plant and Equipment | 26,253 | 3,167 | | **Total** | **40,620** | **28,881** | [Lease Commitments](index=30&type=section&id=%E7%A7%9F%E8%B3%83%E6%89%BF%E8%AB%BE) As of June 30, 2025, the company's committed but not yet commenced lease commitments increased, primarily concentrated within one year | Term | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 3,687 | 909 | | 1 to 2 years | 723 | – | | 2 to 3 years | 53 | – | | **Total** | **4,463** | **909** | [Other Significant Matters](index=30&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) This section covers various other important disclosures, including acquisitions, pledged assets, contingent liabilities, investments, and post-reporting period events [Significant Acquisitions and Disposals of Subsidiaries and Affiliates](index=30&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) For the six months ended June 30, 2025, the company had no significant acquisitions or disposals of subsidiaries and affiliates - For the six months ended **June 30, 2025**, we had no significant acquisitions or disposals of subsidiaries and affiliates[106](index=106&type=chunk) [Pledged Assets](index=31&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the company had no pledged assets - As of **June 30, 2025**, we had no pledged assets[107](index=107&type=chunk) [Contingent Liabilities](index=31&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) The company faces legal proceedings arising in the ordinary course of business but believes existing pending litigation will not have a material adverse effect on the consolidated financial statements - The Group faces legal proceedings that arise in the ordinary course of business[108](index=108&type=chunk) - The Group believes that any existing pending legal proceedings to which the Group is a party will not have a material adverse effect on the consolidated financial statements[108](index=108&type=chunk) [Material Investments](index=31&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the company had no single material investment with a carrying value representing 5% or more of total assets - As of **June 30, 2025**, we had no single investment with a carrying value representing **5%** or more of total assets[109](index=109&type=chunk) [Future Plans for Material Investments and Capital Assets](index=31&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the company had no other plans for material investments and capital assets - As of **June 30, 2025**, we had no other plans for material investments and capital assets[110](index=110&type=chunk) [Material Events After the Reporting Period](index=31&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company's wholly-owned subsidiary, Shunda Tongxing, increased its capital contribution to Bai Xi Niu Zhi Da by **RMB 99.54 million**, raising its shareholding to **15.81%** - On **July 28, 2025**, Shunda Tongxing agreed to make a further cash capital contribution of **RMB 99.54 million** to Bai Xi Niu Zhi Da (Beijing) Technology Co., Ltd.[111](index=111&type=chunk) - Upon completion of the transaction, the Group's shareholding in Bai Xi Niu Zhi Da will increase from **6.77%** to **15.81%**[111](index=111&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had **1,980 full-time employees**, offering competitive remuneration, statutory insurance, and housing provident funds, with a labor union to protect employee rights - As of **June 30, 2025**, the Group had a total of **1,980 full-time employees**[112](index=112&type=chunk) - The company provides employees with competitive remuneration packages, including salaries, bonuses, national statutory insurance, and housing provident fund schemes[112](index=112&type=chunk) [Off-balance Sheet Commitments and Arrangements](index=32&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E5%A4%96%E6%89%BF%E8%AB%BE%E5%8F%8A%E5%AE%89%E6%8E%92) As of June 30, 2025, the company had not entered into any off-balance sheet arrangements - As of **June 30, 2025**, the Company had not entered into any off-balance sheet arrangements[113](index=113&type=chunk) [Interim Dividend](index=32&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommends no interim dividend for the six months ended June 30, 2025 - The Board recommends no interim dividend for the six months ended **June 30, 2025**[114](index=114&type=chunk) [Use of Proceeds from Listing](index=32&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) As of June 30, 2025, the company has progressively utilized IPO proceeds for the intended and revised allocations as stated in the prospectus, with funds for expanding service coverage fully utilized | Purpose | Revised Net Proceeds Available (HKD million) | Net Proceeds Unutilized as of January 1, 2025 (HKD million) | Amount Actually Used During Reporting Period (HKD million) | Net Proceeds Unutilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | :--- | | R&D and Technology Infrastructure | 718.0 | – | – | – | | Expanding the Company's Service Coverage | 793.7 | 383.4 | 383.4 | – | | Funding Potential Strategic Acquisitions and Investments in Upstream and Downstream Businesses of the Industry Value Chain | 26.9 | 26.9 | – | 26.9 | | Marketing and Brand Promotion | 307.7 | – | – | – | | Working Capital and General Corporate Purposes | 205.2 | – | – | – | | **Total** | **2,051.5** | **410.3** | **383.4** | **26.9** | - Remaining proceeds for potential strategic acquisitions and investments in upstream and downstream businesses of the industry value chain are expected to be utilized by the end of **2026**[116](index=116&type=chunk) [Corporate Governance and Other Disclosures](index=33&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2) This section details the company's compliance with corporate governance codes, disclosure obligations, and information regarding the Board and Audit Committee [Ongoing Disclosure Obligations under Listing Rules](index=33&type=section&id=%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) The company has no other disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 - The Company has no other disclosure obligations under **Listing Rules 13.20, 13.21, and 13.22**[117](index=117&type=chunk) [Compliance with Corporate Governance Code](index=33&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company complied with the Corporate Governance Code during the reporting period, though the Chairman and CEO roles are held by the same individual, which the Board believes aids business strategy execution and operational efficiency - During the reporting period and up to the date of this announcement, the Company has complied with the principles of good corporate governance and all applicable code provisions set out in the Corporate Governance Code[118](index=118&type=chunk) - The roles of Chairman of the Board and Chief Executive Officer are both held by **Mr. Sun Haijin**, which deviates from Code Provision C.2.1, but the Board believes this facilitates the execution of business strategies and enhances operational efficiency[118](index=118&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=33&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) Upon inquiry, all Directors confirmed strict compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period and up to the date of this announcement - Following specific enquiries made to all Directors of the Group, all Directors confirmed that they have strictly complied with the Model Code during the reporting period and up to the date of this announcement[119](index=119&type=chunk) [Purchase, Sale and Redemption of the Company's Listed Securities](index=33&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities, and maintained the minimum public float required by the Stock Exchange - During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities on The Stock Exchange of Hong Kong Limited[120](index=120&type=chunk) - As of **June 30, 2025**, the Company held **745,610,609 H shares** (including **3,120,800 treasury shares**) and **171,764,898 domestic shares**[120](index=120&type=chunk) - The Company maintained the minimum public float required by the Stock Exchange throughout the reporting period[121](index=121&type=chunk) [Audit Committee and Review of Financial Information](index=34&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's unaudited interim financial information for the reporting period, discussing accounting policies, audit, risk management, internal controls, and financial reporting matters - The Audit Committee comprises three Directors, with **Mr. Wang Keqin** (possessing appropriate professional qualifications) as Chairman[122](index=122&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial information for the reporting period and discussed audit, risk management, internal control, and financial reporting matters[122](index=122&type=chunk) [Publication of Interim Results and Interim Report](index=34&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E5%A0%B1) This interim results announcement has been published on the HKEX website and the company's website, with the interim report to be published in due course - This interim results announcement will be published on the HKEX website (**www.hkexnews.hk**) and the Company's website (**https://www.sf-cityrush.com/**)[123](index=123&type=chunk) [Acknowledgement](index=34&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends its gratitude to all customers, suppliers, riders, partners, and shareholders for their understanding, support, and trust - The Board hereby expresses its gratitude to all customers, suppliers, riders, partners, and shareholders for their understanding, support, and trust[124](index=124&type=chunk) [Board of Directors](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) As of the date of this announcement, the Board comprises three executive directors, four non-executive directors, and four independent non-executive directors - The Board includes Executive Directors **Mr. Sun Haijin, Mr. Chen Xiwen, and Mr. Chen Lin**; Non-executive Directors **Mr. Geng Yankun, Ms. Li Juhua, Mr. Li Qiuyu, and Mr. Lei Yanqun**; and Independent Non-executive Directors **Mr. Chan Kok Chung, Mr. Wang Keqin, Mr. Zhou Xiang, and Ms. Huang Jing**[125](index=125&type=chunk)

Core Insights - The express delivery industry in China experienced significant growth in volume, with July 2025 seeing 16.4 billion parcels delivered, a year-on-year increase of 15.1%, and a total of 112.05 billion parcels from January to July, up 18.7% year-on-year [1] - The growth is driven by the trend towards smaller packages, e-commerce promotions, and convenient return policies, surpassing the postal administration's forecast of over 8% growth for the entire year [1] - Major players in the e-commerce express delivery sector, such as YTO, Yunda, and Shentong, reported year-on-year volume increases of 20.8%, 7.6%, and 11.9% respectively in July 2025, with year-to-date increases of 21.6%, 15.1%, and 19.3% [1] - SF Express led the industry with a 33.7% year-on-year increase in volume for July 2025, attributed to its operational strategies and incentives for frontline staff [1] - The Ministry of Finance and the State Administration of Taxation announced new VAT policies for express delivery services, effective immediately, which will impact revenue collection for express companies [1] - Industry average revenue per parcel decreased to 7.36 yuan in July 2025, down 5.33% year-on-year and 1.76% month-on-month, influenced by the trend towards smaller packages and ongoing price wars [1] - However, there are indications of potential price recovery in August 2025 due to a shift away from aggressive competition [1][2] Company Insights - Key players in the express delivery sector include ZTO Express, SF Holding, JD Logistics, and YTO International Express, all of which are listed on the Hong Kong stock exchange [3] - The report from Guohai Securities indicates that franchise express companies may see performance recovery in the context of reduced competition [1][2]

Group 1 - The core viewpoint indicates that the express delivery industry in China is experiencing significant growth, with a total volume of 164.0 billion parcels in July 2025, representing a year-on-year increase of 15.1% [1] - For the first seven months of 2025, the total parcel volume reached 1,120.5 billion, showing a year-on-year growth of 18.7%, surpassing the postal administration's forecast of over 8% for the entire year [1] - The growth is driven by the trend of smaller packages, e-commerce promotions, and convenient return policies [1] Group 2 - In the e-commerce express segment, major players such as YTO Express, Yunda Express, and Shentong Express reported year-on-year growth rates of 20.8%, 7.6%, and 11.9% respectively in July 2025 [1] - For the first seven months of 2025, their respective growth rates were 21.6%, 15.1%, and 19.3% [1] - SF Express achieved a year-on-year growth of 33.7% in July 2025 and 26.9% for the first seven months, attributed to the implementation of operational activation strategies and increased incentives for frontline operations [1] Group 3 - The Ministry of Finance and the State Taxation Administration announced new VAT policies for express delivery services, effective immediately, stating that express companies will pay VAT based on "collection and delivery services" [1] - According to Guohai Securities, the industry average revenue per parcel in July 2025 was 7.36 yuan, reflecting a year-on-year decline of 5.33% and a month-on-month decline of 1.76% [2] - The ongoing trend of smaller packages and price wars are impacting revenue per parcel, although there are indications of potential price recovery in August due to a shift away from intense competition [2] Group 4 - The report highlights the potential for recovery in performance for franchise express companies amid the backdrop of reduced competition [2] - The express delivery sector is seeing a narrowing of price declines, with expectations of a slowdown in competitive pressure [2] - The focus remains on the performance growth of time-sensitive express delivery leaders and the valuation recovery opportunities in the e-commerce express segment [2] Group 5 - Related Hong Kong-listed express delivery companies include ZTO Express (02057), SF Holding (06936), SF Express City (09699), JD Logistics (02618), and YTO International Express (06123) [3]

（原标题：顺丰同城发盈喜，预计上半年公司拥有人应占利润同比增长不低于100%） 8月20日，顺丰同城发布公告，预计截至2025年6月30日的六个月内，公司拥有者应占利润将同比增长不 低于100%，而集团收入预计将同比增长不低于45%。该正面盈利预告主要归因于即时配送行业的快速 发展和需求增加，以及公司各项业务的均衡高质量发展，带动了订单量和收入的健康增长。 ...

发布公告，本期间(截至2025年6月30日止6个月)公司拥有人应占利润与去年同期相比，预期将取得不低 于100%的增长;及本期间集团收入与去年同期相比，预期将取得不低于45%的增长。 该预期的正面表现主要是由于以下原因： 即时配送行业加速发展，即时配送需求快速增加;集团各项业 务均衡高质发展，订单量和收入实现健康增长;以技术创新为驱动，持续提升数智化能力，独立第三方 定位、品牌和产品服务加速得到客户广泛认可;及精益的运营底盘提质增效，进一步提高网络规模经济 效应，提高资源投入产出效率，带动利润释放。 ...

Core Viewpoint - SF Express (09699.HK) expects a significant increase in profit attributable to shareholders of no less than 100% year-on-year and revenue growth of no less than 45% year-on-year for the six months ending June 30, 2025, driven by the rapid development of the instant delivery industry and increasing demand for instant delivery services [1] Group 1: Financial Performance - The company anticipates profit attributable to shareholders will grow by at least 100% year-on-year [1] - Revenue is projected to increase by no less than 45% year-on-year [1] Group 2: Industry Dynamics - The positive performance is primarily due to the accelerated development of the instant delivery industry and a rapid increase in demand for instant delivery services [1] Group 3: Business Development - The company has achieved balanced and high-quality development across various business segments, resulting in healthy growth in order volume and revenue [1] - Technological innovation is driving continuous improvement in digital intelligence capabilities, leading to widespread recognition of the company's independent third-party positioning, brand, and product services [1] Group 4: Operational Efficiency - The company has enhanced its operational efficiency through lean operations, improving network economies of scale and increasing resource input-output efficiency, which contributes to profit release [1]