Core Viewpoint - SF Express reported strong financial results for 2024, with revenue of 284.4 billion and net profit of 10.2 billion, indicating a positive response from investors [3][4]. Group 1: Business Segments - SF Express operates three main business segments: Express and Large Items, Supply Chain and International, and Same-City Instant Delivery [7]. - The Express and Large Items segment generated revenue of 186.9 billion in 2023, accounting for 72.3% of total revenue, and is projected to reach 200.2 billion in 2024 [8]. - The Supply Chain and International segment reported revenue of 62.86 billion in 2023, representing 24.3% of total revenue, with expectations to grow to 74 billion in 2024 [10]. - The Same-City Instant Delivery segment had revenue of 7.37 billion in 2023, making up 2.85% of total revenue, and is anticipated to increase to 9 billion in 2024 [12]. - In 2024, SF Express expects a total revenue increase of 26 billion, with contributions from each segment being 51% from Express, 42.8% from Supply Chain, and 6.3% from Same-City [14]. Group 2: Revenue Growth and Challenges - The growth of the Express segment is slowing, with an average annual growth rate of 7.3% from 2021 to 2024, and a projected revenue of 122.2 billion in 2024, reflecting a 5.8% increase [16]. - The Supply Chain and International segment is contributing significantly to revenue growth but at the cost of profitability, with a gross profit margin dropping to 6.6% in 2024 [40]. - The Same-City Instant Delivery segment has shown persistent losses, with a gross loss rate of 62.9% in 2024, indicating challenges in achieving profitability despite revenue growth [43][45]. Group 3: Market Position and Strategy - SF Express has shifted its focus from maintaining a 10% market share to prioritizing profitability, as evidenced by a decline in market share to 7.6% in 2024 [28][30]. - The company has adopted a "price protection" strategy, moving away from "price for volume" tactics, which has resulted in a gross profit margin of 93.5% in 2024 [34][35]. - The Express segment is becoming the sole profit source for SF Express, with net profit contributions exceeding 100% in 2024 [39][46].

Core Viewpoint - SF Express reported strong financial results for 2024, with revenue of 284.4 billion and net profit of 10.2 billion, showing year-on-year growth of 11.4% and 23.5% respectively, leading to a positive market reaction with a 2.57% increase in stock price [1][2]. Group 1: Business Segments - SF Express operates through three main segments: Express and Large Items, Supply Chain and International, and Same-City Instant Delivery [4]. - The Express and Large Items segment generated revenue of 186.9 billion in 2023, accounting for 72.3% of total revenue, and is projected to reach 200.2 billion in 2024, representing 70.4% of total revenue [5]. - The Supply Chain and International segment reported revenue of 628.6 billion in 2023, contributing 24.3% to total revenue, with an expected increase to 740 billion in 2024, making up 26% of total revenue [7]. - The Same-City Instant Delivery segment had revenue of 73.7 billion in 2023, representing 2.85% of total revenue, and is anticipated to grow to 90 billion in 2024, accounting for 3.2% of total revenue [9]. Group 2: Revenue Growth Contributions - In 2024, SF Express's revenue is expected to grow by 26 billion, with contributions from various segments: Express and Large Items (51%), Supply Chain and International (42.8%), and Same-City Instant Delivery (6.3%) [11]. - The Express segment's revenue growth is primarily driven by the core express delivery service, which is projected to reach 1.222 trillion in 2024, with a year-on-year growth of 5.8% [14]. - The Supply Chain and International segment is expected to contribute significantly to revenue growth, but at the cost of profit margins, with a projected net loss of 1.32 billion in 2024 [32]. Group 3: Market Position and Strategy - SF Express has shifted its strategy from "volume over price" to "price preservation," focusing on maintaining profit margins rather than increasing market share [25][29]. - The company has seen a decline in market share, with a reported 7.6% in 2024, down 1.4 percentage points from the previous year [23]. - The competitive landscape has led to a decrease in the average price per shipment, with the overall market price dropping to approximately 8 yuan per shipment in 2024 [22]. Group 4: Profitability and Financial Health - The Express segment has become the sole profit source for SF Express, with net profit margins improving to 5.5% in 2024 [29]. - The Supply Chain and International segment has faced challenges, with a significant drop in profit margins and a net loss of 1.32 billion in 2024 [32]. - The Same-City Instant Delivery segment continues to struggle with high costs and low profitability, showing a loss rate of 62.9% in 2024 [35].