TigerResearch/tigerbot-earning-plugin huggingface dataset:
Risk of macroeconomic fluctuations: The logistics industry plays an important fundamental role in the development of the national economy but it is also significantly affected by domestic and global macroeconomic conditions. In recent years, China’s macroeconomic growth slows down and China is undergoing a period of economic structure transition, and the macroeconomic is expected to move into a new phase of medium-slow growth. Meanwhile, the global economy is likely to enter a recession. Inf lat ion ,  r is ing energy  pr ices , weak  consumer demand , geopolitical conflicts and other negative factors have become obstacles to the growth of international trade. However, with the recovery of international transport capacity resources, and oversupply has led to the gradual decline of international air and sea transport prices from the historical high range to a relatively lower level in the last three years. In addition, the international freight industry is highly competitive. The combination effect of above issues and the influencing factor of domestic and foreign economy may bring a certain impact on the overall development of China’s logistics industry and the performance of the Company.
Market competition risk: As the main driving force for express business growth, the e-commerce market has transitioned from the explosive development phase into normal-level steady growth. With the reduction in incremental space, the competition of leading express enterprises may be fiercer in the existing markets. Tighter industry regulation, competition returning to the normal level and limited space for competition on prices prompted more express enterprises to offer comprehensive logistics services rather than homogeneous services, pay more attention to product service layering and conduct competition in more logistics segments. The Company has been forging differentiated competitive advantages, and providing a complete product matrix in the diversified business scope, but under the impact of more leading express enterprises getting involved in the competition in segments, if
the Company cannot adjust operating strategies, seize the market opportunities and maintain its position as the leading service provider in a timely manner on the grounds of market changes, it may face the risk of slowing revenue growth and declining market share.
Risk response: The Company keeps a close watch on the macroeconomic, analyzes its impact on our main business, and adjusts our operation strategies in a timely manner to minimize the adverse impact on the Company’s business and future development. The Company pays close attention to and studies industry development trends, analyzes the market competition patterns, and deploys forward-looking strategic planning. The Company adheres to the mu lt id imens iona l deve lopment of business, constantly improves the product matrix to achieve a differentiated service experience. The Company also deeply integrates the business foundation in order to achieve the resources complementation and optimize network effectiveness. Meanwhile, the Company attaches great importance to science and techno logy investment, as it cou ld empower product innovat ion, improve serv ice qua l ity, and conso l idate core competition barriers, thereby supporting the long-term sustainable development of the Company’s business.
2. Policy risk
Risk arising from changes in industry regulations and industrial policies: The operation of express delivery requires bus iness l icens ing and is sub ject to regu lat ion by laws , administrative rules and industry standards such as the Postal Law of the People’s Republic of China (《中华人民共和国邮政法》), the Administrative Measures for Express Delivery Business Licensing(《快递业务经营许可管理办法》), the Administrative Measures for Express Delivery Market (《快递市场管理办法》) and the Rules for Guiding the Operation of Express Delivery Business (《快递业务操作指导规范》). With a view to effectively regulating the development of the express delivery industry and enhancing service quality, competent departments at various levels successively introduced regulatory policies to regulate industry competition and service standards. Part icu lar emphas is was p laced on h igh-qua l ity development of the industry, calling on related parties to protect the legitimate rights and interests of couriers, improve the social security level of the couriers, implement the main responsibility of the couriers and standardize the enterprise franchise and labor management. With the stronger regulation, the compliance cost and violation risk of the express delivery industry may increase, which may have an impact on the development trend and market competition landscape of the express delivery industry, and may affect the future business growth and performance of the Company.
Risk response: The Company has established research teams for state and local policies in all business units to conduct in-depth analysis on relevant policies introduced, fully capitalizing on favorable policies while avoiding policy risks and grasping industry policies and hence promoting business growth. Furthermore, the Company has always attached importance to the guarantee of rights and interests of couriers, continually improved the social security level while boosting their efficiency and reducing working hours to raise their income through technology empowerment.
R isk  from  re levant  state  po l ic ies  on  env ironmenta l protection, energy conservation and emission reduction: China has undertaken that it will strive to reach the peak of CO2 emissions by 2030 and achieve carbon neutrality by 2060. It is foreseeable that China will issue subsequent policies on environmental protection, energy conservation and emission reduction. Such policies to be released may affect the service and operation pattern of express delivery companies, and may lead to increased expenses in relevant aspects such as environmental protection, energy conservation and emission reduction incurred by express delivery companies, which will pose adverse effect on the future performance of the Company. Meanwhile, if companies fail to fulfill their green environmental obligations in accordance with the laws, they will not only be liable to the relevant legal obligation, but also impair their social images.
Risk response: The Company took into account the external environment and policy changes as well as took a keen insight into the development trend of the industry, so as to steer the direction of the industry and implement the forward-looking deployment and adjustment. The Company paid attention to its own impacts on the environment, and in 2021, the Company published the “SF Holding’s White Paper for Carbon Emission Target 2021”(《顺丰控股碳目标白皮书2021》), the industry’s first white paper for carbon emission in China. Leveraging technological strength such as artificial intelligence and big data, the Company adjusted the energy consumption structure, upgraded transportation and business models, implemented the reduction and recycling of express packaging, and then promoted the green and low-carbon reform.
3. Business risk
Risk of possible rising costs: The express and logistics industry is a labor-intensive industry. There are relatively large demands for labor along various stages of operation such as collection, sorting, transportation and delivery. With the reduction in demographic dividend in China, there are certain pressures on rising labor costs while investments in logistics infrastructures and other aspects also increase. If the Company cannot secure enough business volume or effectively control costs in the future, it will probably face challenges in its earnings growth.
R isk response : The Company has improved its log ist ics foundation, innovated system tools, inc lud ing bring ing the entire logistics process onl ine inte l lectua l ization, improving transit depots’automation, optimizing route planning, using sc ient if ic and techno log ica l means to enhance eff ic iency and reduce manpower investment and labor costs, gradually achieving transformation of the express delivery industry from a labor-intensive industry to a technology intensive industry. Meanwhile, the Company also continues to review and optimize resource invested in all business units to enhance the synergy and reuse of resources and enhance cost efficiency. There are also economies of scale in the logistics industry. In the early process of business expansion and network building, the predictive investment is needed for logistics infrastructures, which is conducive to creating long-term core competitiveness of the Company. With growing business and the in-depth integration of business foundation, the Company will gradually obtain economies of scale.
Risk from fuel price fluctuation: Transportation cost is one of the major costs of the express delivery industry, and fuel cost
is an important component of transportation cost. Fluctuation of fuel price will have a certain impact on the profitability of express delivery companies. Since this year, under the influence of geopolitics, the international price of crude oil remains high, making the price of domestic refined oil product hits a five-year high. If the price continues to rise, the Company will experience pressure of increased costs.
Risk response: The Company has improved the network planning and integrated land transport resources through the reform of operating models, so as to enhance scientific route planning, reduce inefficient routes, and improve the loading rate of self-operated vehicles; Further, the Company will strengthen promotion for use of new energy vehicles to reduce the risk of fuel price fluctuations to a certain extent. Meanwhile, the Company also has well-established operation and cost monitoring mechanisms in place. When costs fluctuate significantly, operation plans and fuel cost control measures will be dynamically adjusted. The Company also comprehensively evaluates and exp lores mechanisms for charging appropriate fuel surcharges around specific products based on oil price fluctuations, thereby reducing the negative impact of fuel cost fluctuations on the Company.
Risk from international operation: With the development of the Company’s international business, especially after the tie-up with Kerry Logistics, the proportion of international business has expanded rapidly, and the number of countries covered by services has increased. International logistics service relying on international trade is subject to trade relations and other unpredictable factors. The global economic development, geopolitics, national relationships, international trade and tax policies have experienced unpredictable changes and there are many uncertainties on international trade, including drastic price fluctuations of the transportation capacity of international routes, stable operation capability in some countries and regions where business has been set up and so on, which bring challenges to the Company’s operation. If the Company fails to take effective measures to deal with this, it may have an adverse impact on the Company’s international business development.
Risk response: In the course of the Company’s bus iness development, we continue to track and study changes in trade policies, closely monitor the market dynamics and adjust our strategies for international business operation in a timely manner; actively explore international transportation resources in terms of the sea, land, air and rail, strengthen the monitoring of operation network, and make every effort to ensure stable and efficient cross-border services. Meanwhile, the Company increases the investment in scientific and technological resources, promotes the construction of international business informatization, and facilitates to make operational decisions in an efficient manner.
4. Exchange rate fluctuation risk
Exchange rate fluctuation risk: As its overseas operations expand, businesses denominated in foreign currencies are set to account for an increasing share of our total business volume. Given the uncertainties in the international financial environment and f luctuat ions in RMB’s exchange rates, the Company’s foreign-currency assets, foreign-currency liabilities and future foreign-currency transactions will all be subject to fluctuations in exchange rates, which will in turn affect the Company’s business performance or financial statements.
Risk response: The Company’s foreign exchange transactions are mainly conducted based on the actual needs of its cross-border foreign-currency businesses. To avoid and guard against risks associated with fluctuations in exchange rates and interest rates, better manage its foreign currency positions and become more competitive, the Company has established the Management Policies for Foreign Exchange Risks (《外汇风险管理制度》), and conducted centralized management of foreign currency positions, under which it decides expenditure based on revenue, implements nett ing, matur ity match ing, and natura l hedg ing to avo id foreign exchange risk in advance wherever possible. It also uses financial derivatives and hedging instruments with low default risks and controllable risks to lock in the costs of exchange rate and interest rate and avoid exchange rate and interest rate risks. All the Company’s hedging transactions are conducted in strict compliance with the relevant hedging principles, and are based on our normal production and business activities and justified with actual business operations. All the transactions are carried out for the purpose of locking in costs and avoiding risks. The Company does not trade for speculative purposes, and operates within its authority to ensure effective execution and reduce the impact of exchange rate fluctuations on its operation and earnings. In terms of transaction counterparty selection, the Company conducts foreign exchange hedging transactions with only large and established commercial banks at home and abroad, and all such transactions conform to the principles of legality, prudence, safety and effectiveness. In addition, the Company will step up efforts to study and analyze exchange rates and interest rates, closely monitor changes in the global markets, issue early warnings in time, and take countermeasures accordingly.
5. Information system risk
Information system risk: To cope with business diversification at the Company and the complex and diverse needs of customers, the Company has bu i lt and app l ied var ious informat ion systems and technologies. Rapid development of the industry and the evolving marketplace also pose challenge of rapid change in techno logy and serv ices on the construct ion of core business systems of the Company. With the wide variety and rap id rep lacement of profess iona l techno log ies in the Company, along with emerging new technologies, changes in information technology and future business requirements may cause certain information system risks. Although the series of information security management and control mechanisms have been established drawing on the substantial amount of data accumulated over the years by the Company, there still exists certain human or system caused information security risks. And as the top-level laws related to data security and personal information protection are introduced, and employees’and users’ awareness of privacy protection has enhanced, the regulators have set higher and stricter requirements for the standardization of data processor, especially personal information processing act iv it ies . Therefore , compan ies w ith de luge of persona l information are also inevitably facing privacy compliance risks.
Risk response: The Company has formulated comprehensive response measures over information system risks.
Firstly, the Company continues to carry out operation and optimization of the ISO27001 information security management system and the ISO27701 privacy information management system. The Company implements information security control
and protection in all aspects according to established policies and strategies for information security, and continuously updates all procedures and systems for information security. It continuously reinforces risk awareness among staff members, conducts staff training on operation standards, develops internal information circulation guidelines, implements rules of strong control over sens it ive informat ion, avo ids un intent iona l v io lat ions, and constructs monitoring and pre-warning and response systems for abnormal behaviors, so as to eliminate information system security risks in their infancy.
Secondly, according to requirements of regulatory authorities, the Company has carried out multi-level network security assessment of information systems. Based on high standards of technology protection requirements, it conducts continuous and regular security intervention in the business system construction phase to build on the anti-security attack capabilities of client service products and our own business systems. During the operation of the information system, it has established the security capability baseline (measurable cyberspace security capability evaluation), safe operat ion capab i l ity (s ituat iona l awareness of pr ivacy data risks, MTTD and MTTR indicators based on offensive and defensive confrontations), DevOps security capability (DevSecOps process and tool chain), and security ecology capability (external perception and linked stop loss) to enhance the capability of the IT infrastructures to discover and defend against cyber security attacks. Moreover, the Company has established a more comprehensive system for prevention and control of information risks, and formulated standard processes such as the Major Event Management Process System for IT System (《IT 系统重大事件管理流程制度》) and the Management Guidelines for Emergency Plan Formulation and Implementation of IT System (《IT 系统应急预案制定与执行管理指引》) to implement closed-loop risk prevention and control via pre-warning, in-process control and post-recording.
Lastly, with a view to eliminating privacy compliance risks, reducing potential business loss, fulfilling the responsibilities of data processors, effectively protecting the benefits of users and employees, and creating a positive image of SF’s personal informat ion protect ion, the Company acted in comp l iance with the GDPR, and assessed privacy compliance of its apps, implemented multiple special programs concerning publicity and training on privacy compliance after the Data Security Law (《数据安全法》) and Personal Information Protection Law (《个人信息保护法》) were promulgated, and continuously and steadily conducts security intervention during personal information processing and business system building activities, with high standards of privacy compliance requirements enforced, so as to enhance the ability to resist security attacks on personal information protection and business system. Additionally, the Company has actively cooperated with National Development and Reform Commission, State Post Bureau of The People’s Republic of China and all levels of public security departments to combat behaviors such as black production and speculation, has actively participated in the formulation and review of various information security standards of the National Information Security Standardization Technical Committee, and pilot work for implementation of policies, has regularly held security summits and security salons to facilitate information sharing with industry leaders and industry elites; and has established alliance partnership and cooperation with information security teams of well-known Internet and e-commerce companies for the joint construction of a safe and orderly cyberspace
XIV. Reception of Research, Communication, Interviews and Other Activities During the Reporting Period
√Applicable □Not applicable||||||
 Date of reception| Venue of reception| Method of reception| Type of visitors| Visitor| Main topics and information provided| Index of Basic Information of Research
 February 28, 2022|4/F, Block B, TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen| Field research| Institution| Zhu Yixuan from Baillie Gifford, Wang Song from Greenwoods Asset, Yin Li, China from Southern Asset Management, Wu Yanfeng from HSBC Qianhai Securities, and Sun Xiaodi from HSBC Qianhai Securities| Introducing the overall operation and strategic initiatives as well as intra-city businesses of the Company for2021|“Record Form of Investor Relations Activities Held on February 28, 2022”(No.: 2022-001) disclosed by the Company on CNINFO (www.cninfo. com.cn) on March 1, 2022
 March 30, 2022|20/F, Block B, TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen| Communication on phone| Institution| A total of 403 investors, including China Universal Asset Management, Springs Capital, Chongyang Investment, Fullgoal Fund, Harvest Fund, Invesco Great Wall, BOCOM Schroder Fund, E Fund, ICBC Credit Suisse, PineBridge Investments, Rosefinch Fund, Shenwan Hongyuan Securities, Guotai Junan Securities, China Merchants Securities, Guohai Securities, Southwest Securities, CITIC Securities, Changjiang Securities, Huatai Securities and other institutions| Interpreting the Company’s annual results for 2021, introducing business highlights, and presenting business outlook for 2022|“Record Form of Investor Relations Activities Held on March 30, 2022”(No.: 2022-002) disclosed by the Company on CNINFO (www.cninfo. com.cn) on March 31, 2022
 March 31, 2022|https://ir.p5w.net| Other| Other| All investors| Interpreting annual results and introducing business development and operational measures of the Company for2021|“Record Form of Investor Relations Activities Held on March 31, 2022”(No.: 2022-003) disclosed by the Company on the Cninfo website (www. cninfo.com.cn) on April 1, 2022
 April 29, 2022|2/F, Block B, TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen| Field research| Institutions and individuals| A total of approximately 34 investors, including Greenwoods Assets, Invesco Great Wall, Mingda Assets, Qianhai Haiya Financial Holdings, Qianhai Jingzhi Assets, Yuanzhi Ruixin, and other institutional and individual shareholders| Interpreting the Company’s development outlook, 2025 strategy, 2021 annual report and first quarterly report for2022|“Record Form of Investor Relations Activities Held on April 29, 2022”(No.:2022-004) disclosed by the Company on CNINFO (www.cninfo.com.cn) on May 1, 2022
August 30, 2022|20/F, Block B, TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen| Communication on phone| Institution| A total of 399 investors, including Bosera Funds, Chongyang Investment, Springs Capital, Fullgoal Fund, China Universal Asset Management, Harvest Fund, Invesco Great Wall, BOCOM Schroder Fund, E Fund, Y2 Capital, Rosefinch Fund, Changjiang Securities, Seal and Securities, HSBC Qianhai Securities, Southwest Securities, China Industrial Securities, CITIC Securities, China Merchants Securities and other institutions| Business review, performance interpretation and theme-based sharing for the first half of2022|“Record Form of Investor Relations Activities Held on August 30, 2022”(No.: 2022-005) disclosed by the Company on CNINFO (www.cninfo. com.cn) on August 31, 2022
October 14, 2022| Online meetings| Communication on phone| Institution| A total of 199 investors, including Bosera Funds, Lombarda China Fund, Minsheng Royal Fund, ICBC Credit Suisse, Invesco Great Wall, Fullgoal Fund, Harvest Fund, China Funds, BOC Asset Management, Nanfang Fund, Dacheng Fund, GF Fund, BOSC Asset, China Life AMP, Rongtong Fund, CITIC-Prudential Fund, Hwabao WP Fund, Aegon-industrial Fund, Penghua Fund, Springs Capital, Greenwoods Asset, China Orient Asset Management, Value Partners, Schroder, UBS, Changjiang Securities, Huatai Securities and other| Interpreting the estimated results of the Company for the first three quarters of2022 and introducing business development|“Record Form of Investor Relations Activities Held on October 14, 2022”(No.: 2022-006) disclosed by the Company on CNINFO (www.cninfo. com.cn) on October 17, 2022
Chapter 4 Corporate Governance
I. Basic Information of Corporate Governance