Freight Volume and Service Performance - In the first half of 2023, the total LTL freight volume completed was 5.3 million tons, a slight decrease from 5.4 million tons in the same period of 2022[27]. - As of June 30, 2023, the company served over 5.0 million shippers, an increase from over 4.3 million shippers as of June 30, 2022[27]. - Average shipment time was reduced by 10.1% from the first half of 2022 to the same period in 2023, with the timely fulfillment rate increasing from 60.6% to 72.1%[37]. - The loss rate decreased by 30.1%, from 1.2 lost units per hundred thousand units in the first half of 2022 to 0.8 in the same period of 2023[37]. - The company served approximately 5.0 million shippers across China, enhancing its service quality through a quality growth strategy[37]. - The freight volume of mini freight (≤70 kg) increased by 17.5%, and light freight (70 – 500 kg) increased by 5.8%, indicating a positive trend in these segments[59]. - The company emphasizes the importance of service quality, resulting in a 58.0% decrease in complaint rates from 1,268 in the first half of 2022 to 532 in the same period of 2023[37]. Operational Efficiency and Network - The company operated 94 self-operated sorting centers, covering approximately 96.7% of counties and townships in China as of June 30, 2023[38]. - The company optimized its sorting center network to enhance operational efficiency while maintaining national coverage[39]. - The company continues to invest in sorting centers and line-haul transportation to improve service quality and operational efficiency[33]. - The company manages around 2,005 well-planned line-haul routes, with approximately 90.5% being two-way routes[47]. - The self-operated fleet consists of over 3,900 high-capacity line-haul trucks and approximately 6,300 trailers as of June 30, 2023, showing an increase from 4,000 trucks and over 6,200 trailers as of December 31, 2022[47]. Financial Performance - Total revenue increased by 9.9% from RMB 4,139.2 million in H1 2022 to RMB 4,550.2 million in H1 2023, driven by an increase in unit price for LTL service from RMB 766/ton to RMB 847/ton[67]. - The company recorded a profit of RMB 169.3 million with a net profit margin of 3.7% for the six months ended June 30, 2023, compared to a loss of RMB 175.7 million with a net loss margin of 4.2% for the same period in 2022[101]. - Adjusted EBITDA for the six months ended June 30, 2023, was RMB 886.7 million, up from RMB 468.4 million in the same period of 2022, reflecting a margin increase from 11.3% to 19.5%[108]. - Operating profit increased from a loss of RMB 137.6 million for the six months ended June 30, 2022, to a profit of RMB 287.7 million for the same period in 2023, resulting in an operating profit margin improvement from -3.3% to 6.3%[94]. Cost Management - The unit cost of revenues was RMB 750/ton, with unit operating profit at RMB 54/ton and unit adjusted EBITDA at RMB 166/ton[61]. - The cost of revenues increased from RMB 3,865.1 million for the six months ended June 30, 2022, to RMB 3,997.9 million for the same period in 2023, primarily due to higher costs in value-added and dispatch services[72]. - Sorting centre costs decreased from RMB 1,029.2 million for the six months ended June 30, 2022, to RMB 1,004.0 million for the same period in 2023, primarily due to optimizations in smaller sorting centres and improved labour efficiency[79]. Strategic Focus and Future Plans - The Company is shifting its strategic focus from scale to increasing operational efficiency and improving service quality to sustain high-quality growth[137]. - The Company plans to enhance service quality by improving overall timeliness and safety to attract high-margin shippers[138]. - The Company intends to expand product offerings and explore new customer types to capture potential growth opportunities[144]. - The Company will accelerate investment in digitalization, focusing on IT infrastructure to support firm-wide digital initiatives[140]. Governance and Compliance - The Company has complied with all applicable code provisions in the Corporate Governance Code during the Reporting Period[151]. - The Board will continue to review and consider splitting the roles of chairman and chief executive officer at an appropriate time[152]. - The Company has adopted a code of conduct regarding Directors' securities transactions that meets the standards set out in the Model Code[155]. Employee Management - The Group had 3,563 employees as of June 30, 2023, representing a reduction of 8.5% compared to 3,894 employees as of December 31, 2022[156]. - The Group provides periodic training to employees to improve their skills and knowledge, including technical and management training[157]. - The Company has implemented incentive schemes for its employees to enhance performance[157].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 4,550,157,000, a 9.9% increase from RMB 4,139,175,000 in the same period of 2022[2] - Gross profit for the same period was RMB 552,282,000, representing a 101.5% increase from RMB 274,027,000 year-on-year[2] - Adjusted net profit reached RMB 235,770,000, compared to a loss of RMB 104,872,000 in the prior year[2] - The company achieved an adjusted EBITDA of RMB 886,705,000, an increase of 89.3% from RMB 468,446,000 in the previous year[2] - Operating profit increased from a loss of RMB 137.6 million for the six months ended June 30, 2022, to a profit of RMB 287.7 million for the same period in 2023, with the operating profit margin rising from -3.3% to 6.3%[33] - The company recorded a profit of RMB 1,693.27 million for the six months ended June 30, 2023, with a net profit margin of 3.7%, compared to a loss of RMB 1,756.77 million and a net loss margin of 4.2% for the same period in 2022[37] - Adjusted net profit for the six months ended June 30, 2023, was RMB 2,357.70 million, compared to a loss of RMB 1,048.72 million for the same period in 2022[39] - The company achieved a net profit of RMB 169,327 thousand, compared to a net loss of RMB 175,677 thousand in the previous year[56] Operational Metrics - The total volume of less-than-truckload (LTL) freight handled was 5.3 million tons, slightly down from 5.4 million tons in the same period of 2022[4] - The number of end customers served increased to over 5.0 million, up from 4.3 million a year earlier[4] - The average delivery time for shipments decreased by 10.1% from the first half of 2022 to the first half of 2023, with the on-time delivery rate improving from 60.6% to 72.1%[7] - The loss rate dropped by 30.1% from 1.2 to 0.8 per 100,000 items, while the damage rate decreased by 28.6% from 50.4% to 36.0%[7] - The average daily handling capacity of core hubs was approximately 17.0 million tons in the first half of 2023[10] - The total freight volume for the six months ended June 30, 2023, was 5,330 thousand tons, a decrease of 1.1% compared to 5,390 thousand tons in the same period of 2022[15] Revenue and Cost Analysis - Operating costs increased by 3.4% to RMB 3,997.9 million in the first half of 2023 from RMB 3,865.1 million in 2022[21] - The company plans to continue focusing on LTL services while using full truckload services to improve fleet utilization[20] - The trunk transportation cost decreased from RMB 1,788.3 million for the six months ended June 30, 2022, to RMB 1,739.3 million for the six months ended June 30, 2023, mainly due to lower fuel costs from falling oil prices and improved operational efficiency[25] - The total cost of distribution centers decreased from RMB 1,029.2 million for the six months ended June 30, 2022, to RMB 1,004.0 million for the six months ended June 30, 2023, due to optimization of small distribution centers and improved labor efficiency[26] - The gross profit for the six months ended June 30, 2023, was RMB 552.3 million, with a gross margin of 12.1%, compared to RMB 274.0 million and 6.6% for the same period in 2022[29] Digital Transformation and Efficiency - The company is focused on improving service quality and efficiency to strengthen its industry-leading position and explore new business opportunities[3] - The management emphasized the importance of digital transformation and performance-driven incentives to enhance operational efficiency[3] - The company has fully digitized its operations through an independently developed IT system, enhancing real-time data tracking and service quality[13] - The company is accelerating digitalization efforts by investing in IT infrastructure to support business operations and management[51] Customer and Market Position - The retention rate of top freight partners was 98.2% for the first half of 2023, up from 95.7% in 2022[6] - The company has over 28,000 freight partners and agents, enhancing its national coverage and service capabilities[6] - The company did not have any single customer contributing more than 10% of total revenue during the reporting period, indicating a diversified customer base[68] Financial Position and Liquidity - The company's liquidity remained strong, with cash and cash equivalents at RMB 1,027.5 million as of June 30, 2023, compared to RMB 1,039.3 million as of December 31, 2022[43] - The debt-to-equity ratio was approximately 26.1% as of June 30, 2023, down from 41.5% as of December 31, 2022[44] - The net current assets as of June 30, 2023, were RMB 359,150 thousand, an increase from RMB 34,665 thousand in the previous year[58] - Non-current assets totaled RMB 2,984,457 thousand as of June 30, 2023, down from RMB 3,224,611 thousand at the end of 2022[59] Governance and Compliance - The audit committee, consisting of four independent non-executive directors, reviewed the interim financial performance for the six months ending June 30, 2023, and found it compliant with relevant accounting standards[93] - The company has established various committees, including a remuneration committee and a strategic committee, to enhance governance[95] - The company has maintained consistent accounting policies in line with the previous fiscal year, ensuring stability in financial reporting[65] Future Plans and Investments - The company plans to utilize 10% of the net proceeds (approximately HKD 100.9 million) for working capital and other general corporate purposes[91] - 40% of the net proceeds (approximately HKD 403.7 million) is allocated for building and upgrading 5 to 10 core transit hubs to accommodate high growth in cargo volume[90] - 30% of the net proceeds (approximately HKD 302.8 million) is designated for investing in the mainline transportation fleet to enhance operational efficiency[90] - 20% of the net proceeds (approximately HKD 201.8 million) is planned for investing in technological innovations, including upgrading the sorting network and automation facilities[90] Employee and Shareholder Relations - The company has implemented an incentive plan for employees to link compensation with performance[88] - The fair value of the share units granted to employees under the share reward plan in 2022 was RMB 70,836,000, which has been immediately vested[97] - The board expressed gratitude to shareholders, management, employees, business partners, and customers for their support and contributions[97]

Financial Performance - In 2022, the overall freight volume reached 12.45 million tons, remaining stable compared to the previous year[4]. - Revenue for 2022 was RMB 9,334,931, a decrease of 3.2% compared to RMB 9,645,366 in 2021[39]. - The company reported a gross profit of RMB 730,362 for 2022, down from RMB 1,066,197 in 2021[39]. - Operating loss for 2022 was RMB (171,001), compared to an operating profit of RMB 257,190 in 2021[39]. - The total liabilities decreased to RMB 3,330,556 in 2022 from RMB 3,667,278 in 2021[39]. - Total assets for 2022 were RMB 5,831,228, down from RMB 6,335,586 in 2021[39]. - The company recorded a loss of RMB 409.3 million for the year ended December 31, 2022, with a net loss margin of 4.4%, a significant improvement from a loss of RMB 2,007.1 million and a net loss margin of 20.8% in 2021[123][125]. - Gross profit decreased by RMB 335.8 million due to the impact of COVID-19 and other factors, while net profit was reduced by RMB 249.7 million due to deferred tax expenses in 2022 compared to deferred tax credits in 2021[125][126]. - The company reported an adjusted net loss of RMB 217.9 million for the period, compared to an adjusted net profit of RMB 408.4 million in 2021[129]. - Adjusted EBITDA for the year was RMB 1,096.4 million, down from RMB 1,342.3 million in 2021, with an adjusted EBITDA margin of 11.7% compared to 13.9% in the previous year[129][133]. Operational Strategy - The company has initiated a transformation blueprint focusing on profitable and sustainable growth following its listing in November 2021[14]. - A strategic committee was formed in September 2022 to oversee the upgrade of corporate governance and management structure[5]. - The company plans to launch new LTL products to expand its revenue base and enhance profitability[9]. - The company aims to optimize pricing schemes and improve cost control to achieve cost leadership[9]. - The company is focusing on a transformation strategy that emphasizes profit and quality over pure volume and scale, aiming for sustainable growth[16]. - Key operational upgrades include line-haul routing management and fleet management improvements, enhancing sorting center efficiency and customer service capabilities[18]. - The company aims to enhance its operational excellence by systematically improving timeliness performance and customer service across all levels[18]. - The company plans to continuously invest in sorting centers and line-haul transportation to optimize operational efficiency as freight volume increases[51]. - The company aims to consolidate China's fragmented LTL market, enhancing operational efficiency while maintaining national coverage[54][65]. - The company plans to reduce the number of sorting centers starting from Q4 2022 to optimize costs amid decreasing freight volumes[101]. Market and Industry Trends - The China Logistics Industry Prosperity Index was reported at 50.1% in February 2023, a significant increase of 5.4 percentage points from the previous month[8]. - The logistics industry in China is showing signs of strong recovery, with key sectors like manufacturing and e-commerce returning to growth[8]. - The company expects the impact of COVID-19 to gradually diminish in 2023 following the easing of restrictions in late November 2022[73]. Management and Governance - A competitive selection process for core management positions was conducted, resulting in the appointment of younger, high-performing management talents[7]. - The executive team includes Mr. Qin Xinghua, who has over 25 years of experience in the logistics industry[161]. - Mr. Jin Yun, appointed as Chief Growth Officer in September 2022, has been with the company since February 2012[162]. - The board includes members with diverse expertise in finance, investment, and corporate governance[173]. - The company is focused on strategic investments and risk management under the leadership of its executive team[180]. Financial Management and Capital Strategy - The capital management strategy focuses on maintaining healthy capital ratios and maximizing shareholder value without any externally imposed capital requirements[134]. - The Group's liquidity remains strong, with the primary source of funds being payments received from customers during the reporting period[138]. - The Group's outstanding secured borrowings as of December 31, 2022, were approximately RMB1,037.3 million, with a gearing ratio of 41.5%, compared to 37.8% as of December 31, 2021[140]. Cost Management - The total cost of revenues for the year ended December 31, 2022, was RMB8,604.6 million, compared to RMB8,579.2 million in 2021, reflecting a slight increase in operational costs[104]. - The operating costs incurred by self-operated fleets increased significantly to RMB3,599.98 million in 2022, compared to RMB2,642.37 million in 2021[96]. - Fuel costs rose to RMB1,017.48 million in 2022, accounting for 25.6% of total operating costs, compared to RMB736.69 million and 18.5% in 2021[96]. - The company is optimizing its dynamic pricing system to enhance capacity management and operational efficiency[86]. Risk Management - Comprehensive risk management policies have been adopted across various business operations, including information technology and financial reporting[160]. - The company is committed to continually improving its risk management and internal control systems[160].

Financial Performance - For the year ended December 31, 2022, the company reported revenue of RMB 9,334,931 thousand, a decrease of 3% compared to RMB 9,645,366 thousand in 2021[2]. - The gross profit for the same period was RMB 730,362 thousand, reflecting a significant decline of 31% from RMB 1,066,197 thousand in the previous year[2]. - The company experienced an operating loss of RMB 171,001 thousand, a drastic change from an operating profit of RMB 257,190 thousand in 2021, marking a 166% decline[2]. - The net loss for the year was RMB 409,267 thousand, an improvement of 80% compared to a net loss of RMB 2,007,071 thousand in 2021[2]. - Adjusted EBITDA for 2022 was RMB 1,096,435 thousand, down 18% from RMB 1,342,303 thousand in 2021[2]. - Total revenue for the year 2022 was RMB 9,292.4 million, a decrease from RMB 9,645.4 million in 2021[23]. - The company reported a pre-tax loss of RMB 281,119 thousand for 2022, a significant improvement from a loss of RMB 2,129,463 thousand in 2021, representing a reduction of approximately 87.7%[86]. - The basic loss per share for 2022 was RMB (0.35), compared to RMB (5.08) in 2021, indicating a substantial decrease in losses per share[88]. Operational Metrics - The company completed the transportation of 12.5 million tons of cargo in 2022, remaining stable compared to 12.6 million tons in 2021[6]. - The number of end customers served increased to over 4.7 million as of December 31, 2022, up from 3.9 million in the previous year[6]. - The company operates 136 self-operated distribution centers covering about 96% of counties and towns in China, with an average daily handling capacity of 5,126 tons at core hubs[10][14]. - The retention rate of top freight partners was 98.7% in 2021 and 95.7% in 2022[8]. - The company launched its full truckload business in May 2022, contributing to overall revenue but not fully offsetting the decline in zero-load revenue[25]. Cost and Expenses - The total operating cost for the year ended December 31, 2022, was RMB 8,604.6 million, compared to RMB 8,579.2 million for the year ended December 31, 2021[33]. - General and administrative expenses increased from RMB 791.0 million in 2021 to RMB 892.8 million in 2022, with salary and benefits rising by 28.6%[36]. - The unit cost of operations increased by 1.6% to RMB 691 per ton in 2022, compared to RMB 680 per ton in 2021[20]. - The company’s trunk transportation cost for the year ended December 31, 2022, was RMB 3,980.6 million, relatively stable compared to RMB 3,985.1 million for the year ended December 31, 2021[30]. Assets and Liabilities - The total assets as of December 31, 2022, were RMB 5,831,228 thousand, an 8% decrease from RMB 6,335,586 thousand in 2021[2]. - Non-current assets decreased from RMB 3,782,427 thousand in 2021 to RMB 3,224,611 thousand in 2022, a decline of approximately 14.7%[65]. - Current assets increased from RMB 2,553,159 thousand in 2021 to RMB 2,606,617 thousand in 2022, an increase of about 2.1%[65]. - Total liabilities decreased from RMB 2,651,659 thousand in 2021 to RMB 2,571,952 thousand in 2022, a decrease of approximately 3.0%[66]. - Net assets decreased from RMB 2,668,308 thousand in 2021 to RMB 2,500,672 thousand in 2022, a decline of about 6.3%[67]. Strategic Initiatives - The company initiated a strategic transformation in September 2022, focusing on a new strategy centered on profit and quality to support sustainable growth[3]. - The company plans to optimize pricing and enhance service quality to improve operational efficiency and profitability in 2023[56][57][58]. - The company aims to strengthen partnerships with leading freight collaborators to expand market share in key regions[57]. Risk Management and Compliance - The company has established a robust risk management framework to address various operational risks[60]. - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules[104]. - The auditor, Ernst & Young, confirmed that the group's annual performance figures for the year ended December 31, 2022, align with the audited consolidated financial statements[105]. Shareholder Information - The company did not recommend any dividend distribution for the year, maintaining a focus on financial recovery and stability[87]. - The annual report containing all required information will be sent to shareholders and published on the stock exchange and the company's website[107]. - The board expresses gratitude to shareholders, management, employees, business partners, and customers for their support and contributions[108].

Financial Performance - Revenue increased to RMB 9,645,366 thousand in 2021, up from RMB 7,081,791 thousand in 2020, representing a growth of 36.2%[17] - Gross profit for 2021 was RMB 1,066,197 thousand, slightly up from RMB 1,051,466 thousand in 2020[17] - Operating profit decreased to RMB 257,190 thousand in 2021 from RMB 578,322 thousand in 2020[17] - Net loss for the year 2021 was RMB 2,007,071 thousand, compared to a net profit of RMB 218,181 thousand in 2020[17] - Adjusted net profit for 2021 was RMB 408,438 thousand, down from RMB 654,316 thousand in 2020[17] - Adjusted EBITDA for 2021 was RMB 1,342,303 thousand, up from RMB 1,199,570 thousand in 2020[17] - Total assets increased to RMB 6,335,586 thousand in 2021 from RMB 3,710,788 thousand in 2020[17] - Net cash flows from operating activities increased to RMB 1,084,519 thousand in 2021 from RMB 722,555 thousand in 2020[17] - Total revenue increased by 36.2% from RMB7,081.8 million in 2020 to RMB9,645.4 million in 2021, driven by network expansion and increased freight volume[65] - Dispatch revenue increased significantly due to a change in revenue recognition from net to gross basis since July 2020[65] - Unit dispatch price increased from RMB176/ton in the second half of 2020 to RMB184/ton in 2021 on a gross basis[65] - Unit revenue for the second half of 2020 was RMB764/ton, compared to RMB765/ton in 2021, reflecting seasonal pricing trends[66] - Value-added services revenue grew due to business expansion and the acquisition of Zhongka Logistics Industrial Park Investment Co., Ltd. in 2021[66] - Unit line-haul transportation cost increased by 10.2% from RMB694/ton in 2020 to RMB765/ton in 2021[60] - Unit sorting centre cost increased by 5.7% from RMB299/ton in 2020 to RMB316/ton in 2021[60] - Unit gross profit decreased by 18.3% from RMB104/ton in 2020 to RMB85/ton in 2021[60] - Total revenue increased by 42.3% from RMB6,030.3 million in 2020 to RMB8,579.2 million in 2021, driven by growth in dispatch, line-haul transportation, sorting center, and value-added services[70] - Dispatch cost surged by 113.5% from RMB964.8 million in 2020 to RMB2,060.3 million in 2021 due to a full year of gross dispatch cost recognition in 2021 compared to only half a year in 2020[70] - Line-haul transportation cost rose by 30.3% from RMB3,057.5 million in 2020 to RMB3,985.1 million in 2021, driven by increased freight volume, higher fuel costs, and investment in self-operated fleet[70] - Sorting center cost increased by 25.8% from RMB1,762.3 million in 2020 to RMB2,217.2 million in 2021, primarily due to higher freight volume[70] - Value-added services cost grew by 28.9% from RMB245.7 million in 2020 to RMB316.6 million in 2021, in line with increased freight volume and expanded service scope[70] - Unit line-haul transportation cost increased by 5.7% from RMB299/ton in 2020 to RMB316/ton in 2021, mainly due to rising fuel costs and lower-than-expected freight volume growth[71] - Self-operated fleet operating costs surged significantly, with toll costs increasing by 391.4%, fuel costs by 414.8%, and driver compensation by 387.9% from 2020 to 2021[73] - Labour costs accounted for 60.1% of sorting center costs in 2021, increasing by 27.3% from RMB1,046.7 million in 2020 to RMB1,332.5 million in 2021[76] - Gross profit increased to RMB1,066.2 million in 2021 from RMB1,051.5 million in 2020, while gross profit margin decreased to 11.1% from 14.8% due to changes in revenue recognition and increased costs[78][80] - Unit gross profit decreased from RMB104/ton in 2020 to RMB85/ton in 2021[78][80] - General and administrative expenses increased by 50.3% to RMB791.0 million in 2021, driven by share-based compensations (RMB140.6 million increase), salaries and benefits (RMB68.9 million increase), and professional fees (RMB32.3 million increase)[81][82] - Other income and gains decreased to a net loss of RMB18.0 million in 2021 from a net gain of RMB53.2 million in 2020, primarily due to increased asset impairment (RMB38.1 million) and reduced government grants (RMB24.6 million decrease)[84][85] - Operating profit decreased to RMB257.2 million in 2021 from RMB578.3 million in 2020, with operating profit margin dropping to 2.7% from 8.2%[86][88] - Finance costs increased by 88.1% to RMB152.4 million in 2021, mainly due to higher interest on bank loans (RMB35.9 million increase) and transaction costs for convertible redeemable preferred shares (RMB21.0 million increase)[89][90] - Fair value change of financial assets and liabilities increased significantly to RMB2,042.7 million in 2021 from RMB396.2 million in 2020, driven by IPO-related revaluation[91][93] - The expected redemption amount related to put option liabilities increased significantly from RMB 18.3 million in 2020 to RMB 191.5 million in 2021, primarily due to the revaluation of the company's equity value based on the offer price in the IPO[94] - The company recorded an income tax credit of RMB 122.4 million in 2021, compared to RMB 135.3 million in 2020, mainly due to the recognition of deferred tax assets as major subsidiaries are expected to generate profits[95][97] - The company reported a profit of RMB 218.2 million with a net profit margin of 3.1% for the year ended December 31, 2020, but a loss of RMB 2,007.1 million with a net loss margin of 20.8% for the year ended December 31, 2021, largely due to non-recurring fair value changes of financial liabilities and changes in expected redemption amount related to put option liabilities[96][98] - Adjusted profit for the year was RMB 408.4 million in 2021, compared to RMB 654.3 million in 2020, after adding back non-cash and non-recurring items such as share-based payment expenses, fair value changes of financial liabilities, and listing expenses[102] - The fair value change of financial liabilities at fair value through profit or loss was RMB 2,043.9 million in 2021, compared to RMB 396.2 million in 2020, primarily due to the revaluation of preferred shares and convertible loans, which are non-cash and non-recurring items[102][103] - Net loss for the year 2021 was RMB 2,007,071 thousand, compared to a profit of RMB 218,181 thousand in 2020[106] - Adjusted EBITDA for 2021 was RMB 1,342,303 thousand, an increase from RMB 1,199,570 thousand in 2020[106] - Net loss margin for 2021 was -20.8%, compared to a net profit margin of 3.1% in 2020[107] - Adjusted EBITDA margin for 2021 was 13.9%, down from 16.9% in 2020[107] - Cash and cash equivalents as of December 31, 2021, were RMB 954.3 million, a 91.3% increase from RMB 498.7 million in 2020[112] - Net cash generated from operating activities in 2021 was RMB 1,084.5 million[112] - The company acquired a 90% equity interest in Zhongka Logistics Industrial Park Investment Co., Ltd. for RMB 65.7 million[115] - Bank loans and other borrowings were secured by mortgages over motor vehicles with a net carrying amount of RMB 51.6 million and RMB 566.7 million[116] - The company guaranteed bank loans to customers amounting to RMB 20.6 million as of December 31, 2021[117] - The company did not use any derivative financial instruments to hedge against foreign currency risk during the reporting period[121] - Outstanding secured borrowings of approximately RMB50.0 million and unsecured borrowings of approximately RMB958.1 million as of December 31, 2021[126] - Gearing ratio of approximately 37.8% as of December 31, 2021, calculated as total borrowings divided by total equity attributable to equity holders[126] - No significant investments, acquisitions, or disposals during the reporting period[127] - No plans for material investments and capital assets as of December 31, 2021[128] - The company's distributable reserves as of December 31, 2021, amounted to nil[188] - No final dividend was recommended for the reporting period[179] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[189] Market and Industry Position - ANE achieved 96% county and township coverage in 2021[19] - ANE went public on November 11, 2021, marking a significant milestone in its growth journey[20] - The company achieved a revenue growth of over 30% in 2021, significantly higher than the average growth of the express freight LTL industry[26] - The retention rate of the company's top partners, contributing more than 50% of revenue, remained above 98% in 2021[26] - The company invested approximately RMB 1.9 billion to build a fleet of around 4,000 high-capacity modern trucks, meeting over 80% of its line-haul transportation needs[22][24] - The self-operated fleet achieved a 9% reduction in unit trucking cost per kilometer compared to outsourced fleets in 2021[28] - The company operates more than 160 sorting centers and over 3,000 line-haul routes, covering approximately 96% of townships in China[22][24] - The China LTL market size is approximately RMB 1.5 trillion, with high potential for consolidation and growth[23][24] - The company's "Compass System" integrates operational management and digital technology, enabling real-time decision-making based on operational data[22][24] - The company's platform ecosystem sustained healthy development, with a focus on efficiency and long-term strategic direction[23][24] - The company's leadership position strengthened during the volatile macroeconomic environment of 2021 due to flexible responses and strategic advancements[26] - The company's self-operated fleet, built in just over 1.5 years, is the largest in the industry, enhancing fleet management and truck utilization optimization[27][28] - The company's self-operated fleet reduced unit trucking costs by 9% in 2021 compared to outsourced fleets[29] - Freight volume growth slowed in 2H 2021 due to macroeconomic factors, leading to a dip in load factor and increased unit line-haul transportation costs[29] - Oil prices rose approximately 30% in 2021 and continued to rise rapidly in Q1 2022, impacting the logistics industry but the company managed the impact through centralized fuel procurement and cost transfer to customers[30][32] - The company completed shipment of 12.6 million tons of freight volume in 2021, a 23.4% increase from 10.2 million tons in 2020[35] - The company's express freight network held a 17.3% market share in China's LTL market in 2020[35] - The company plans to focus on building and upgrading key infrastructure, including transit hubs and sorting centers, in 2022[33][34] - The company aims to enhance fleet management and technology systems to improve real-time decision-making capabilities for its self-operated fleet[33][34] - The company is launching a more customized pricing mechanism and digital solutions for freight agents to better manage and motivate frontline outlets[33][34] - The company's freight partner platform model aims to integrate local operators into its network to serve as infrastructure for China's new commerce landscape[36] - The company achieved a compound annual growth rate (CAGR) of approximately 31.0% in total freight volume from 2015 to 2020[35] - The company operates 162 self-operated sorting centers across China, covering approximately 96% of counties and townships as of December 31, 2021[44][45] - The company served approximately 3.9 million shippers (end-customers) as of December 31, 2021, through its freight partners and agents[41] - The company added 15 new sorting centers in 2021, located in economically vibrant regions such as Yueqing, Yuhang, Yangzhou, Binzhou, and Ezhou[50] - The company's key transit hubs handled an average freight volume of approximately 1.6 million tons in 2021[48] - The company's line-haul network consists of approximately 3,100 well-planned routes, with 96% being two-way routes as of December 31, 2021[51] - The company added approximately 400 line-haul routes in 2021 to optimize its network and reduce transit ratios[51] - The company had approximately 29,100 freight partners and agents as of December 31, 2021, with a top freight partner retention rate of 98.7% in both 2020 and 2021[40] - The company's key transit hubs are located in major commercial centers such as Shanghai, Hangzhou, Guangzhou, Shenzhen, Chengdu, and Suzhou[48] - The company's transit hubs are directly connected to an average of 17 provinces each as of December 31, 2021[48] - The company's sorting centers include 11 key transit hubs and 44 transit hubs, with the latter primarily responsible for inter-provincial freight transfer[47] - The company's self-operated fleet increased from approximately 1,500 high-capacity line-haul trucks and over 2,700 trailers in 2020 to approximately 4,000 high-capacity line-haul trucks and over 4,600 trailers in 2021, representing a significant expansion in fleet size[53] - The company invested RMB 1,119.9 million in its self-operated fleets in 2021, focusing on upgrading short-haul and long-haul transportation capabilities[53] - The average monthly mileage of the company's 17.5-meter high-capacity trucks reached over 21,000 kilometers in 2021, driven by optimized route planning and an extensive line-haul network[53] - The company's network outlets are owned and operated by approximately 29,100 freight partners and agents, covering 96% of counties and townships in China as of December 31, 2021[54] - The company's digitalisation tools, including the Compass System and Luban system, enable real-time data tracking, smart outlet management, and route planning, enhancing operational efficiency[54] - The upgraded pricing system allows real-time adjustments to prices, considering the live situation of freight partners and agents, improving customization and responsiveness[55] - The company developed a comprehensive truck control system integrated with its TMS system, enabling efficient dispatch of truck tractors and trailers based on live data and cost estimation[55] - Total freight volume increased by 23.4% from 10.2 million tons in 2020 to 12.6 million tons in 2021[60][61] - Unit price for transportation and value-added services increased by 0.9% from RMB576/ton in 2020 to RMB581/ton in 2021[60] - The company operates a leading express freight network in China's less-than-truckload (LTL) market, providing nationwide coverage and comprehensive freight transportation services[174] - The company aims to provide the most efficient logistics infrastructure for commerce in China[174] - There were no significant changes in the nature of the Group's principal activities during the year ended December 31, 2021[175] - The company's shares were listed on the Main Board of the Stock Exchange on the Listing Date[173] - The company was incorporated in the Cayman Islands on July 31, 2014 as an exempted company with limited liability[173] - The company mainly provides transportation services, value-added services, and dispatch services to freight partners and direct customers[174] - An analysis of the Group's revenue and operating profit for the Reporting Period by principal activities is set out in the "Management Discussion and Analysis" section of the annual report[175] - The company's principal activities include transportation services, value-added services, and dispatch services[174] - The company's express freight network operators deliver timely and comprehensive freight transportation services[174] - The company's financial statements and principal activities of its subsidiaries are detailed in note 1 to the financial statements[175] Future Strategy and Investments - The company plans to focus on building and upgrading key infrastructure, including transit hubs and sorting centers, in 2022[33][34] - The company aims to enhance fleet management and technology systems to improve real-time decision-making capabilities for its self-operated fleet[33][34] - The company is launching a more customized pricing mechanism and digital solutions for freight agents to better manage and motivate frontline outlets[33][34] - The company's freight partner platform model aims to integrate local operators into its network to serve as infrastructure for China's new commerce landscape[36] - COVID-19 resurgence in Q1 2022 led to operational disruptions and potential decline in freight volume compared to 2021[131][132] - Future strategy focuses on meeting demand for comprehensive transportation services, accelerating consolidation in China's LTL industry, and sustaining profitable growth[133][135] - Expansion of sorting capacity and establishment of more sorting centers in economically vibrant regions[138] - Long-term investment plan for modern and high-capacity tractors and trailers, with a focus on autonomous driving and clean fuel technologies[139] - Enhancement of operational efficiency through cost leadership, network scale, and optimization