TigerResearch/tigerbot-earning-plugin huggingface dataset:
customer management by levels, and provided diversified and differentiated comprehensive logistics service, to promote the express logistics segment as a whole to realize higher average revenue per parcel compared to the same period of previous year, thus to achieve healthy growth of revenue. (2) The supply chain and international business generated revenue of RMB87.9 billion with a year-on-year increase of 124.1%, which was mainly attributable to the consolidation of Kerry Logistics by the Company since the fourth quarter of 2021. In addition, Kerry Logistics also acquired and consolidated certain business in the international freight sector in the first half of 2022, which further expanded the Company’s supply chain and international business and thereby led to rapid year-on-year growth of revenue in 2022. Meanwhile, SF International integrated with the advantages of Kerry Logistics in local express capability in some Southeast Asian countries to create international express products with competitive timeliness and high ly cost-effective in Southeast As ia, and achieved rapid growth in international express business. However, due to the aforesaid year-on-year decrease of international air and sea freight demands and rates, the international freight forwarding business experienced dramatic decline in both revenue and profitability as compared with the corresponding period of the last year.
For details of the business development, please refer to the section headed “II. Business development of the Company”in this chapter.
II) Profit: The Company realized a net profit attributable to shareholders of the listed company of RMB6.17 billion in 2022, represent ing a year-on-year increase of 44.6%, and a net profit attributable to shareholders of the listed company of RMB5.34 billion after deducting non-recurring gains and losses, representing a year-on-year increase of 191%. The non-recurring gain and loss items were mainly government grants and one-off gains arising from disposal of equity.
The Company saw a rapid year-on-year growth in business performance in 2022, wh ich is ma in ly attr ibutab le to the improvement of revenue quality, and the satisfying results in the promotion of lean resource planning and cost management in it iat ives. The Company has p laced greater emphas is on improving the efficiency of resource investment, continuing to promote multi-network integration, emphasizing end-to- end overall resource planning for operations, strengthening the integration of transit, transportation and terminal resources of business networks, as well as flexibly carrying out cross-sector resource synergy during different periods (i.e. low and peak business seasons) to expand the benefits of resource sharing. At the same time, the Company took advantage of technology empowerment to enhance the deep digitalization throughout the entire operation and management, and achieve modeling and decision-making of resource investment in advance, real- time intelligent monitoring and scheduling during the process, and data review and efficiency analysis at the post stage, which helped the Company monitor costs more thoroughly and finely, and improve its ability of making prompt business adjustment to respond to changes.
For details of the specific measures adopted for operation optimization and technology empowerment, please refer to “3. Operation optimization”under the section headed “II. Business development of the Company”and “3. Cutting-edge technology for a digitalized, visual and intelligent supply chain”under the section headed “III. Core competitiveness”in this chapter.
Benefiting from the above operating initiatives, the Company recorded significant improvement in profitability. As for the same period of previous year, the consolidation of results of Kerry Logistics commenced since the fourth quarter of 2021, while the whole year results of Kerry Logistics in 2022 was consolidated for this reporting period, which also increased the overall profit of the Company.
III) In terms of capital structure, as of the end of the reporting period, the total assets of the Company were RMB216.8 billion; the net assets attributable to shareholders of the parent company were RMB86.3 billion; and the gearing ratio was 54.67%, up 1.32 percentage points from 53.35% at the end of previous year. This was mainly attributable to the increased borrowings by Kerry Logistics as a result of its acquisition of subsidiaries and minority interests. However, the operating cash flow and overall financial structure of the Company remain stable, and the net cash flow from operating activities increased by 112.9% year on year from RMB15.4 billion for the same period of previous year to RMB32.7 billion for the reporting period, to develop a healthy cash flow.
In 2022, the Company invested RMB15.1 billion in total in fixed assets and other items (excluding equity investment), representing a decrease of 21.6% compared with the same period of previous year; which accounted for 5.6% of total operating income, representing a decrease of 3.7 percentage points compared with the same period of previous year, and reflected the Company’s business strategy to focus on core logistic business, streamline resource planning and improve the efficiency of resource deployment. In the future, the Company will stick to the purport of long-term, sustainable and healthy development, and input resources to facilitate the renovation of operation models and build differentiated core competitiveness. In the meantime, we will continue to promote the multi-network integration to improve resource utilization efficiency. Proportion of the capital expenditure will continue to maintain within the sound level.
I) Composition of operating revenue(RMB’000)|||2022|||2021|| Change over the previous year
|| Amount|| Proportion of revenue| Amount|| Proportion of revenue|
 Total revenue||267,490,414||100.00%|207,186,647||100.00%|29.11%
 Categorized by industry Logistics and freight forwarding||262,079,740||97.98%|203,690,237||98.31%|28.67%
 Sales of goods2||3,899,692||1.46%|1,764,253||0.85%|121.04%
 Others||1,510,982||0.56%|1,732,157||0.84%|-12.77%
 Categorized by business1 Time-definite express||105,696,512||39.51%|98,961,735||47.76%|6.81%
Economy express||25,551,306||9.55%|25,428,003||12.27%|0.48%
 Freight||27,917,012||10.44%|27,290,961||13.17%|2.29%
 Cold chain and pharmaceuticals||8,612,665||3.22%|7,802,610||3.77%|10.38%
 Intra-city on-demand delivery||6,436,102||2.41%|5,003,156||2.41%|28.64%
 Supply chain and international||87,866,143||32.85%|39,203,772||18.92%|124.13%
 Other non-logistics businesses||5,410,674||2.02%|3,496,410||1.69%|54.75%
 Categorized by region Logistics and freight forwarding –| Mainland|||||||
||204,621,623||76.50%|186,009,786||89.78%|10.01%
 China||||||||
 Logistics and freight forwarding –| Hong|||||||
||8,988,438||3.36%|4,776,091||2.31%|88.20%
 Kong, Macao, and Taiwan, China||||||||
 Logistics and freight forwarding –| Overseas|48,469,679||18.12%|12,904,360||6.22%|275.61%
 Other non-logistics businesses||5,410,674||2.02%|3,496,410||1.69%|54.75%
(1)  As the Company continuously streamlined and optimized its product system, the product of each business segment has been adjusted, mainly including the classification of returned e-commerce products and products distributed by SF Express from the economy express business to time-definite express and freight business respectively. According to the optimized new product classification, the Company counted the revenue of time-definite express, economy express and freight business, and retroactively adjusted the data of the same period in 2021.
(2) Sales of goods mainly comprise the purchase and sale business involved in the process of providing end-to-end supply chain services for customers.
(3)Any discrepancies between totals and sums of the numbers are due to rounding.
Business volume and average revenue per parcel of the express & logistics business
| Current reporting period| The same period of previous year| Increase/Decrease over the same period of previous year
 Parcels (100 million)|110.7|105.0|5.5%
 Average revenue per parcel (RMB)|15.73|15.67|0.4%
Explanation:
(1)  The express & logistics business mainly included time-definite express, economy express, freight, cold chain and pharmaceuticals, and intra-city on-demand delivery business. The statistics of business volume and average revenue per parcel of the express & logistics segment did not include the data of the supply chain and the international business as well as other non-logistics business.
(2)  The business volume of the express & logistics segment grew by 5.5%. Against the backdrop of temporary closure of outlets in certain regions due to external factors, as well as the Company’s initiative to optimize its product structure and reduce the business volume of low-margin products, the express & logistics segment still achieved positive growth in business volume that was higher than the overall business volume growth rate of the express industry. At the same time, thanks to the optimization of the product structure of the Company, the average revenue per parcel of the express & logistics business increased by0.4%, with the revenue structure remaining healthy.
|||2022|||2021||
(RMB’000)| Cost item| Amount|| Proportion to operating cost| Amount|| Proportion to operating cost| Change over the previous year
 Total cost of revenue||234,072,360||100.00%|181,548,507||100.00%|28.93%
 Categorized by industry Logistics and freight forwarding| Labor cost(2)|91,585,902||39.13%|83,576,213||46.04%|9.58%
| Transport capacity cost(2)|106,844,961||45.65%|70,854,193||39.03%|50.80%
| Other operating costs|31,078,207||13.28%|24,330,369||13.40%|27.73%
| Total|229,509,070||98.06%|178,760,775||98.47%|28.39%
 Sales of goods| Cost of goods|3,426,513||1.46%|1,589,457||0.88%|115.58%
 Other businesses| Cost of services|1,136,777||0.48%|1,198,275||0.65%|-5.13%
(1)  The logistics and freight forwarding business of the Company demonstrates distinctive feature of network-based businesses –that is high degree of cross- sharing of each item of resources between different business segments within the network and relatively more internal settlements within each business segment and product, so we are unable to further provide the cost classified by product and region in the logistics and freight forwarding business in a fair manner.
(2)  The Company calculated the costs and expenses accurately according to the nature of resources in accordance with relevant provisions of the accounting standards. For details, please refer to “(48) Expenses Classified by Nature”in “IV Notes to the Consolidated Financial Statements”in Chapter 10 Financial Statements. As outsourced resources were used in some parts of the logistics network operation of the Company, in order to effectively analyze the composition of the operating costs of the logistics and freight forwarding business, the Company mainly divided its outsourcing costs into labor cost and transport capacity cost, and added up them in the totals of the payroll and transport cost, respectively, to show the whole labor cost and transport capacity cost.
III) Details on main industries –Logistics and freight forwarding
The industries accounting for more than 10% of the Company’s revenue or operating profit is analyzed as follows:
(RMB’000)
Operating revenue Operating cost Gross profit margin
Change over the same period of previous year
Logistics and freight forwarding
262,079,740 28.67% 229,509,070 28.39% 12.43%
Increase by 0.19 percentage points
Note: The Company’s statistical criteria for core business data was not adjusted during the Reporting Period.
The operating costs breakdown and gross profit of logistics and freight forwarding business are analyzed as follows:
|2022||2021|| Change over the previous year
 Proportion of labor cost to revenue||34.95%||41.03%|-6.08%
 Proportion of transport capacity cost to revenue||40.77%||34.79%|5.98%
 Proportion of other operating costs to revenue||11.85%||11.94%|-0.09%
 Gross profit margin||12.43%||12.24%|0.19%
Reason for changes:
(1)  As the Company has consolidated Kerry Logistics since the fourth quarter of 2021, and the cost structure of Kerry Logistics is different from the original business of SF Express, the changes in the breakdown of cost of sales as a percentage of revenue are mainly affected by the consolidation of Kerry Logistics. Therefore, the following cost-to-revenue analysis will exclude the impact of Kerry Logistics. For the profit analysis of Kerry Logistics, please refer to its annual report disclosed on the Hong Kong Stock Exchange.
(2)  The proportion of labor cost to revenue was down by 6.08 percentage points year-on-year, but if excluded the impact of acquisition of Kerry Logistics, it was up by 1.79 percentage points year-on-year. This was primarily due to: 1the Company’s initiative to improve the competitiveness of remuneration of first–and second-line employees, emphasizing higher compensation for more work to ensure reasonable fairness, such as improving the per capita income of deliverymen in certain difficult areas based on the regional operation pricing model. 2the Company’s focus on terminal service quality, which ensured the face-to-face service quality of deliverymen by reasonably controlling the per capita collection and delivery efficiency; 3the decrease in business acquisition volume in some cities during the temporary closure period of outlets in certain regions, which rendered the fixed salary costs of employees unable to be effectively amortized; In 2022, the Company will continue to promote the integration of multiple networks and invest in automated equipment, so as to improve the operational efficiency of all aspects of operation and improve the per capita efficiency of transit operation posts and proprietary driver posts, and effectively control the extent of labor cost increases.
(3)  The proportion of transport cost to revenue grew by 5.98 percentage points year-on-year, but if excluded the impact of the acquisition of Kerry Logistics, it was down by 4.01 percentage points year-on-year. This was primarily due to: 1the Company’s continued promotion of multi-network integration, and the scale effect resulting from unified planning through the integration of route resources of various businesses, the straightening of routes to reduce transit, and the collaborative route filling of fast and slow products, which effectively increased the vehicle loading rate of trunk and feeder routes; 2the improvement of the transport capacity structure through the gradual increase in the proportion and utilization rate of self-owned vehicles, the optimization of outsourced route recruitment and the related settlement models, which reasonably controlled the price per unit of transport capacity. Thanks to the above measures, the Company’s transport capacity costs were effectively managed in 2022 despite the negative impact of the increase in outsourced transport capacity prices and fuel costs.
(4)  The proportion of other operating costs to revenue decreased by 0.09 percentage point year-on-year, but if excluded the impact of acquisition of Kerry Logistics, it was increased by 1.04 percentage points year-on-year. This was primarily due to the inadequate utilization rate of production capacity during the temporary closure period of outlets in certain regions in 2022 on the growth of business volume which resulted in ineffective dilution of fixed asset costs and weakened economies of scale, as compared to the faster growth of fixed asset investment in sites and equipment in the same period last year which had increased depreciation and amortization expenses. However, by promoting the integration and joint construction of various business sites, the Company managed the incremental demands, reduced temporary site investment, optimized the existing inefficient sites and enhanced the utilization rate of site resources. 2022 saw a year-on-year decrease in the Company’s fixed asset investment expenditure, which effectively moderated the growth in fixed costs.
(5)  Gross profit margin: the Company’s gross profit margin for the logistics and freight forwarding business improved due to the above factors, up by 0.19 percentage points as compared to the corresponding period of previous year, and up by 1.18 percentage points if the impact from consolidation of Kerry Logistics was excluded.
IV) Major customers and major suppliers
Major customers
Total sales revenue from the top five customer (RMB’000) 13,483,051 Total sales revenue from the top five customers in proportion of total annual
sales revenue
Total sales revenue from affiliated parties in the top five customers in proportion of total annual sales revenue
0.64%
SN| Customer| Revenue (RMB’000)| Proportion of total annual sales revenue
1| Customer 1|4,696,510|1.76%
2| Customer 2|4,058,752|1.52%
3| Customer 3|1,718,005|0.64%
4| Customer 4|1,640,848|0.61%
5| Customer 5|1,368,936|0.51%
 Total|–|13,483,051|5.04%
Other information regarding major customers
During the Reporting Period, the Company provided services for M China Management Limited (which is one of related parties of the Company) and its subsidiaries as well as its franchisees, and obtained sales revenue of RMB1,718,005 thousand. Apart from that, the Company did not have any associated relationship with the other major customers mentioned above, and the Company’s directors, supervisors, senior management, core technical personnel, shareholders who held more than 5% of the shares, actual controller and other related parties did not directly or indirectly hold any interest in other major customers.
Major suppliers
Total purchase amount from the top five suppliers (RMB’000) 29,770,818 Total purchase amount from the top five suppliers in proportion of total annual
purchase amount
Total purchase amount from affiliated parties of the top five suppliers in proportion of total annual purchase amount
SN| Supplier| Purchase amount(RMB’000)| Proportion of total annual purchase amount
1| Supplier 1|11,487,711|5.22%
2| Supplier 2|5,972,666|2.72%
3| Supplier 3|4,994,231|2.27%
4| Supplier 4|3,963,149|1.80%
5| Supplier 5|3,353,061|1.53%
 Total|-|29,770,818|13.54%
Other information regarding major suppliers
The top five suppliers had no associated relationship with the Company, and the Company’s directors, supervisors, senior management, core technical personnel, shareholders who held more than 5% of the shares, actual controller and other affiliated parties did not directly or indirectly hold any interest in major suppliers.
V) Other information
(1) During the Reporting Period, the Company did not enter into any major sales contract or major purchase contract.
(2)  For details of the changes in the scope of consolidation during the Reporting Period, please refer to “V. Changes in the consolidation scope”of “Chapter 10 Financial Statements”.
(3) During the Reporting Period, there was no major change or adjustment to the businesses, products or services of the Company.
||2022|||2021||
(RMB’000)| Amount|| Proportion of revenue| Amount|| Proportion of revenue| Change over the previous year
 Selling and distribution expenses|2,784,114||1.04%|2,837,899||1.37%|-1.90%
 General and administrative expenses|17,574,490||6.57%|15,029,663||7.25%|16.93%
 Financial costs|1,711,613||0.64%|1,563,359||0.75%|9.48%
 Research and development expenses|2,222,865||0.83%|2,154,839||1.04%|3.16%
(1) The proportion of selling and distribution expenses & general and administrative expenses to revenue: a decrease of 1.01 percentage points year-on-year. This was attributable to the Company’s continued implementation of lean management initiatives, the technology-driven digitalization and intellectualization improvement in operation and management, and the improved management efficiency through streamlining and flattening the organization.
(2) The proportion of finance cost to revenue: a decrease of 0.11 percentage point year-on-year. This was attributable to the Company’s sound financial structure and healthy gearing ratio.
(3) The proportion of research and development expenses to revenue: a decrease of 0.21 percentage point year-on-year. This was attributable to the Company’s focus on technology investment to fuel business development and model change, with greater emphasis on the benefits of technology output. As explained in “4. R&D Investment”below, overall R&D investment decreased slightly from the previous year.
4. R&D Investment
The Company’s investment in technology research and development is focused on four major objectives: facilitating business development, promoting model change, realizing technology productization and exploring cutting-edge technologies. Internally, digital-intelligent upgrading of logistic networks for the building of the SF Smart Brain, aiming to improve the digitalization and intellectualization of the entire internal end-to-end operational process; and externally, promoting the application of the intelligent supply chain technology, empowering the digital-intelligent changes of customers’supply chains by technology, supporting the transformation and upgrading of customers’supply chains, driving cost reduction and efficiency improvement in the supply chain as a whole, and ultimately helping the Company generate revenue, lower costs, and increase operating benefit. For details, please refer to “3. Cutting-edge technology for a digitalized, visual and intelligent supply chain”of “III. Core Competitiveness”of this section.
||2022||2021|| Change over the previous year
 Number of R&D staff (person)|||5,652||6,271|-9.87%
 Proportion of R&D personnel as a percentage of total staff|||3.47%||3.54%|-0.07%
 Composition of R&D personnel by education level Junior college (person)|||627||786|-20.23%
 Bachelor (person)|||3,982||4,333|-8.10%
 Master and above (person)|||1,043||1,152|-9.46%
 Composition of R&D personnel by age Below 30 (person)|||2,115||2,946|-28.21%
30 –|40 (person)||3,349||3,190|4.98%
 Above 40 (person)|||188||135|39.26%
Note: There was no major change in the composition of R&D staff in the Company.
(RMB’000)|2022||2021|| Change over the previous year
 R&D investment amount||3,528,143||3,651,655|-3.38%
 R&D investment as a percentage of revenue||1.32%||1.76%|-0.44%
 Amount of capitalized R&D investment||1,266,410||1,429,608|-11.42%
 Capitalized R&D investment as a percentage of R&D investment||35.89%||39.15%|-3.26%
Note: There was no significant change in the R&D investment amount as a percentage of revenue compared with the previous year; and there was no great change in the capitalization rate of R&D investment.
(RMB’000)| Amount| Proportion of total profit| Reason
 Other income|2,249,361|20.51%| Mainly including government grants related to daily activities.
 Investment income|1,025,385|9.35%| Mainly including income from maturity structured deposits and income from disposal of equity interests.
 Gains and losses arising from changes in fair value|-27,938|-0.25%| Mainly due to changes in fair value of financial assets or liabilities
 Credit impairment losses|-821,100|-7.49%| Mainly including bad debt losses of accounts receivable.
 Asset impairment losses|-131,756|-1.20%| Mainly including impairment losses of long-term equity investment.
 Non-operating income|231,487|2.11%| Mainly including compensation income and government grants unrelated to daily activities.
 Non-operating expenses|298,616|2.72%| Mainly including losses on scrapping of assets and compensation expenses.
Explanation on sustainability
Except the income from structural deposits in the investment income, all other items mentioned above were not sustainable.
(RMB’000)|2022|2021| Change over the previous year
 Net profit|7,003,620|3,919,213|78.70%
 Net profit margin|2.62%|1.89%|0.73%
 Net profit attributable to shareholders of the parent company|6,173,764|4,269,098|44.62%
 Net profit margin attributable to shareholders of the parent company|2.31%|2.06%|0.25%
 Net profit attributable to shareholders of the parent company after deducting non-recurring profit and loss|5,336,924|1,834,199|190.97%
 Net profit margin attributable to shareholders of the parent company after deducting non-recurring profit and loss|2.00%|0.89%|1.11%