STO(SZ:002468)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was ¥23,088,941,220.36, representing a 35.71% increase compared to ¥17,013,003,445.76 in 2018[24]. - The net profit attributable to shareholders for 2019 was ¥1,408,306,713.72, a decrease of 31.27% from ¥2,049,188,973.27 in 2018[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,342,740,554.18, down 21.96% from ¥1,720,658,832.56 in 2018[24]. - The net cash flow from operating activities for 2019 was ¥1,975,653,306.83, a decline of 24.09% compared to ¥2,602,674,573.89 in 2018[24]. - Basic earnings per share for 2019 were ¥0.920, down 31.34% from ¥1.34 in 2018[27]. - The total assets at the end of 2019 were ¥13,855,221,867.36, an increase of 16.77% from ¥11,865,724,097.93 at the end of 2018[27]. - The net assets attributable to shareholders at the end of 2019 were ¥9,136,945,461.23, up 7.46% from ¥8,502,309,643.78 at the end of 2018[27]. - The company's operating revenue reached 23.089 billion yuan, an increase of 35.71% compared to the previous year, while net profit attributable to shareholders decreased by 31.27% to 1.408 billion yuan[121]. Business Expansion and Strategy - The company has been focusing on expanding its logistics services, including customs clearance and warehousing services, excluding hazardous chemicals[22]. - The company has expanded its international business services to cover 30 countries and regions, including the USA, Australia, and the UK[42]. - The company is focusing on developing cold chain logistics as a key strategic area, providing services such as cold storage and delivery[42]. - The company aims to achieve full coverage of postal services in rural areas by 2022, ensuring that every administrative village has access to express delivery services[61]. - The company is focusing on expanding its network through a franchise model, which is expected to increase business volume and service quality[45]. - The company is actively participating in the "Express Delivery to Villages" initiative, aiming to broaden the sales channels for agricultural products and increase farmers' income[66]. - The company plans to develop a modern postal and express service system by 2035, aiming for global competitiveness and influence in the postal industry[63]. - The company has established a comprehensive express service network with over 3,500 independent outlets and more than 25,500 service stations and stores[107]. Operational Efficiency and Technology - The company has implemented an automated sorting system at transfer centers to improve the efficiency of package handling and transportation[52]. - The company has established a strategic development research center and quality control departments to enhance service quality and operational efficiency[78]. - The company has improved its billing management system, reducing the billing cycle from T+3 to T+1, which has enhanced billing efficiency and accuracy[112]. - The company has upgraded its transfer centers in key cities, significantly increasing throughput capacity while ensuring service quality and efficiency[123]. - The company has integrated key elements of logistics through the digital station project, enhancing management capabilities and decision-making[136]. - The company has adopted a talent development strategy focusing on cultivating a diverse talent pool, enhancing the quality of its workforce through partnerships with renowned universities[114]. - The company has received multiple accolades, including "China Famous Trademark" and "Top 100 Logistics Enterprises by Brand Value," reflecting its strong market presence and brand recognition[117]. Market Trends and Industry Insights - B2C retail accounted for 75.8% of national online retail sales, up 4.1 percentage points from 2018, with cosmetics, smart home products, and health products seeing sales growth exceeding 30%[67]. - In 2019, the total online retail sales reached CNY 10.63 trillion, growing by 16.5%, while physical goods online retail sales were CNY 8.52 trillion, up 19.5%, representing 20.7% of total social retail sales[67]. - The express delivery industry is expected to maintain high growth due to increasing consumer demand and technological advancements[78]. - The CR8 concentration index for express delivery companies was 82.5, indicating a market share shift towards major express companies, up 1.2% year-on-year[75]. Customer Service and Satisfaction - The company is committed to enhancing customer service through real-time tracking and information services for packages[58]. - The company streamlined its customer complaint handling process, allowing for some claims to be settled within 30 minutes, significantly improving customer satisfaction[153]. - The company has established a unified customer service management system across its network to enhance communication efficiency and service quality[156]. - Shentong's new customer service systems include a smart voice outbound system to gather customer feedback on service satisfaction[158]. Financial Investments and R&D - The company plans to invest 1 billion yuan in R&D over the next three years to develop various digital platforms, including a smart operation platform and a digital logistics platform[113]. - Research and development expenses surged by 137.66% to CNY 103,669,826.89, primarily due to increased investment in information system development[186]. - The number of R&D personnel increased to 309, up 25.61% from 246 in 2018, with R&D personnel accounting for 2.81% of total employees[188]. Challenges and Risks - The net cash flow from operating activities decreased by 24.09% to ¥1,975,653,306.83, primarily due to increased competition leading to a lower revenue growth rate compared to cost growth[193]. - The company reported a significant increase in sales and management expenses, with sales expenses rising by 51.46% to CNY 145,527,680.50[186].