Core Viewpoint - The resignation of Xu Yubin, founder and CEO of Fengchao, raises questions about the company's IPO progress and overall development, especially after the failure of its prospectus submission to the Hong Kong Stock Exchange earlier this year [1][13]. Company Overview - Xu Yubin, born in 1981 in Guangdong, started as a courier and later became a manager at SF Express, where he conceived the idea of smart delivery lockers [4][5]. - Fengchao was established in 2015 with an investment of 500 million yuan from five logistics companies, including SF Express [6]. Business Expansion and Performance - Fengchao rapidly expanded its network, installing 40,000 smart lockers in over 70 cities within two years, and later increasing to 100,000 lockers after acquiring eZhan [6]. - By 2020, Fengchao's market share was projected to reach 69% after acquiring Zhongyou Express [6]. Financial Challenges - Despite rapid growth, Fengchao has faced significant financial losses, accumulating over 6 billion yuan in losses since its inception [12]. - The company reported net losses of 2.07 billion yuan, 1.17 billion yuan, and 541 million yuan for the years 2021 to 2023, despite revenues of 2.53 billion yuan, 2.89 billion yuan, and 3.81 billion yuan respectively [12]. Market Competition - The competitive landscape has shifted, with rivals like Cainiao Station processing over 29 billion packages in 2023, compared to Fengchao's 6.7 billion packages, highlighting a significant market share disparity [13]. Strategic Missteps - Analysts suggest that Fengchao's failure to diversify its revenue streams and adapt to market changes has hindered its growth, with high operational costs and unsuccessful ventures into community group buying and e-commerce [10][12]. - The company's attempt to charge consumers for package delays has faced backlash, complicating its revenue model [10]. Leadership Transition - Xu Yubin's departure may signal a potential shift in strategy for Fengchao, as analysts believe new leadership could bring fresh perspectives to address the company's challenges [14].

Core Points - Xu Yubin, the founder and CEO of Fengchao, has officially announced his resignation, marking the end of an era for the company [1][7] - Fengchao Holdings is currently facing challenges with its Hong Kong IPO, which has been stalled [4][5] Company Overview - Fengchao Holdings is recognized as the largest end logistics solution provider in China based on 2023 revenue [4] - As of May 31, 2024, Fengchao has deployed 330,000 smart lockers across 31 provinces in China [4] - The company delivered 6.204 billion, 5.823 billion, and 6.463 billion packages in 2021, 2022, and 2023 respectively, accounting for approximately 5%-6% of the national delivery volume during the same period [4] Financial Performance - Fengchao has experienced continuous losses over the past few years, with revenues of 2.526 billion, 2.891 billion, and 3.812 billion yuan from 2021 to 2023, and net losses of 2.071 billion, 1.166 billion, and 541 million yuan during the same period [5] - In the first five months of 2024, the company reported a net profit of 71.6 million yuan, indicating a turnaround [5] Controversies - The company faced controversy over its "storage fees," which generated 808 million yuan from approximately 1.615 billion packages stored in smart lockers from 2021 to May 2024, representing about 7% of total revenue [5] Leadership Background - Xu Yubin's journey from a delivery worker to the CEO of a unicorn company is notable, having founded Fengchao after being inspired by international logistics practices [8][10] - Xu Yubin held 2.21% of Fengchao's shares and received a total compensation of 222 million yuan in 2021, which included a significant stock-based payment [10]