On November 27, 2024, SF Holding Co., Ltd., a prominent player in the Chinese logistics and express delivery sector, achieved a significant milestone by listing on the main board of the Hong Kong Stock ExchangeThis momentous occasion marks SF Express as the first logistics company in China to successfully establish an "A+H" share structure, thus transitioning into a new phase of international development.

The achievement of this public listing is a testament to SF's unwavering commitment to an innovation-driven growth strategyCentral to this strategy is the modernization of logistics through digital and intelligent technologiesBy creating an integrated, end-to-end smart logistics network that enhances service capabilities across the entire logistics supply chain, SF has emerged as the fourth largest comprehensive logistics service provider globallyIn the first three quarters of 2024, the company reported impressive revenues of approximately CNY 206.9 billion, a year-on-year increase of nearly 9.44%. Meanwhile, its net profit soared to CNY 7.6 billion, reflecting a robust growth rate of 21.59% compared to the same period last year.

A foundation of digitalization is crucial for SF’s expansion

As highlighted by Tang Kai, Chief Marketing Officer of SF Technology, the transition towards digitalization was an essential choice compelled by internal growth dynamicsWith rapid business development, the company's operations have become increasingly dependent on human resources, infrastructure networks, and extensive material resourcesConsequently, effectively coordinating these diverse elements mandates advanced digital management tools that facilitate seamless integration from business planning and resource allocation to terminal execution.

To drive the digital transformation, SF has focused on dismantling data silos that exist “end-to-end”. According to Tang, the company has prioritized the integration of four critical components: “people, vehicles, goods, and environments.” By achieving data visibility and connectivity at every stage of logistics, SF aims to enhance managerial efficiency through data-driven insights

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This ambition materialized with the establishment of SF Technology Co., Ltd., dedicated to harnessing technology to reconfigure and optimize data flows across various business segments, thus accelerating the company's progression towards intelligent logistics.

Utilizing advanced technologies such as big data, artificial intelligence (AI), and the Internet of Things (IoT), SF has developed a system platform that amalgamates various operational data, including order management, warehousing, and transportation systemsThis framework enables a seamless flow of information across departmental lines, promoting enhanced logistical transparency throughout the entire supply chain.

In response to the escalating demand for swift delivery services, SF has implemented electronic waybills that facilitate rapid data capture and automatic entry of sender, receiver, and cargo informationThis innovation enables packages to quickly pass through various logistics processes, enhancing overall operational efficiency and automation.

"The comprehensive implementation of digital transformation is a key pillar in SF's path to scalable, rapid growth," asserts Tang

Presently, a dedicated team of thousands of researchers is engaged in ongoing technology R&D, resulting in over 4,000 patent applications aimed at optimizing the delivery speed of packages.

Moreover, alongside digital enhancements, SF recognizes the necessity of elevating its operational intelligence"Guaranteeing timely service is the hallmark of our business model," emphasizes TangAchieving efficiency not only requires robust connectivity within each logistics segment but also the capacity to respond adeptly to sudden disruptionsThus, with a fully digitized infrastructure in place, SF is now venturing into intelligent enhancements that will optimize logistics planning, adjustment, and resource allocation.

In last-mile delivery logistics, the ability to render precise and efficient dynamic mapping services is indispensable—making it the first step in SF's intelligent upgrade journey

In the first half of 2024 alone, SF processed an astonishing 6.24 billion parcelsTo address such vast demands, the ability to decode addresses accurately is paramountEven the slightest ambiguity can result in delivery delaysAccordingly, SF has launched an industrial-grade electronic map that connects in real-time with delivery personnel’s handheld devices, allowing for continual data updates and optimal logistical routing.

Correctly informed decision-making remains a persistent challenge for the logistics sector, particularly in how to execute operations without incurring additional costsTang explains, "The logistics transport chain is complex, where each decision can trigger widespread implicationsThus, our approach involves validating decision rationality through intelligent technology before mobilizing resources."

Through relentless technological innovation efforts, SF has introduced a digital twin system, creating a highly accurate virtual model mirroring the physical logistics space, which can assess the feasibility and effectiveness of sorting plans and network designs

This data-driven orientation significantly improves resource allocation efficiencies, as proven by the system's deployment in over 70 of SF's transit sites, with capacity enhancements of up to 20% reported.

In extending smart solutions to the entirety of the supply chain, SF’s future strategies include enhancing warehousing and inventory turnover rates as key measures for operational cost efficiency"The logistics supply chain's efficiency predicaments primarily reside in its front-end operations, necessitating structural optimization," Tang elaboratesThe introduction of “Fengzhi Cloud,” an all-encompassing and transparent smart supply chain solution series, enables real-time data support for inter-operational collaborations, employing machine learning algorithms for accurate resource schedulingThis initiative has empowered thousands of businesses with streamlined supply chain services.

Through the adoption of these intelligent technologies, SF has diversified its business scope, creating a tiered service matrix catering to various sectors, generating solutions for freshness guarantee, beverage distribution, and event support logistics, amongst others

In the first half of 2024 alone, logistics revenues from sectors such as automotive and home appliances saw year-on-year growth exceeding 20%.

Looking ahead, the company envisions a future in logistics where automation reigns—what they refer to as the "unmanned supply chain." Tang highlights that advancements in large model technologies are poised to revolutionize supply chain efficiencies and represent a promising avenue towards achieving higher levels of automation.

In 2024, SF unveiled its proprietary "Fengzhi" logistics decision-making model and "Fengyu," a specialized linguistic model for the logistics domainThe "Fengzhi" model utilizes multi-modal channels for demand prediction, allowing companies to accurately gauge market fluctuations and the impact of sales data on inventory and procurementMeanwhile, "Fengyu" aids diverse functions across marketing, customer service, and dispatching, enhancing cost efficiency and client satisfaction.

With its unwavering commitment to innovation, SF has launched autonomous delivery vehicles in Qingdao, equipped with 360-degree sensory devices to ensure safe navigation

These vehicles are expected to facilitate four to six delivery routes per day, handling 600 to 1,000 parcels daily and reducing transport costs by 60%.

Additionally, SF's subsidiary, Fengyi Technology, specializes in unmanned aerial vehicle operations, utilizing drones to tackle complex delivery scenarios efficiently"Drones excel in urgent, challenging, and high-value transport situations, completing tasks that traditional methods find difficult," explains Chen Xiaohui, Fengyi's Government Affairs DirectorSo far, operations have expanded throughout the Greater Bay Area, servicing sectors like healthcare and emergency logistics, with nearly 600 flight paths opened nationwide by the end of October 2024.

To enhance delivery efficacy further, SF has partnered with Shenzhen Metro to create the nation’s first rail logistics hubThis innovative multimodal network integrates air deliveries via drones with ground relay stations, underground vehicles, and metro systems, optimizing time and expense in logistics consolidation