IPO News | Shunyou Logistics Hong Kong Stock Exchange Company ranked 9th in China's B2C export e-commerce direct delivery logistics service market

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on April 15, Shenzhen Shunyou Cross-border Logistics Co., Ltd. (hereinafter: Shunyou Logistics) submitted a listing application to the main board of the Hong Kong Stock Exchange, and CITIC Construction Investment International is its sole sponsor. In terms of revenue in 2024, the company ranked 9th in China's B2C export e-commerce direct delivery logistics service market.

According to the prospectus, the company is a senior cross-border e-commerce logistics service provider, empowering cross-border e-commerce platforms and cross-border e-commerce sellers through the company's roots and cross-border logistics network in mainland China. The company was founded in 2008 and is committed to providing one-stop cross-border logistics services. It has a huge logistics network, tiered pricing, multiple delivery time options and a wide coverage of transportable items. The company is rooted in the Pearl River Delta region (one of the most dynamic cross-border e-commerce regions in mainland China) and already operates in Shenzhen, Guangzhou and Dongguan in Guangdong Province, Yiwu and Ningbo in Zhejiang Province, and Suzhou in Jiangsu Province, as well as in Hong Kong and the US.

According to Frost & Sullivan, around 5,000 service providers compete in China's B2C export e-commerce direct delivery logistics service market, while the top 10 participants account for only 21.9% of the total market share in terms of revenue in 2024. According to Frost & Sullivan, the market size of direct delivery logistics services set up for special goods in 2024 will account for about 27.0% of China's B2C export e-commerce logistics market. According to the same source, the company ranked 6th in mainland China based on the transaction value of direct delivery logistics services set up for special goods in 2024.

On the financial side, in 2022, 2023 and 2024, Shunyou Logistics achieved revenue of approximately RMB 1,184 billion, RMB 1,506 billion and RMB 1,522 billion, respectively; profits during the same period were approximately RMB 31.875 million, RMB 73.465 million and RMB 43.875 million respectively.

Some of the main risks faced by the company include: business and growth being significantly affected by global e-commerce developments and the macroeconomic conditions of the company's target markets; possible challenges in expanding cross-border logistics services; and heavy reliance on a diverse supplier network to provide critical services. Failure to maintain a positive relationship with such suppliers or ensure that they continue to provide reliable services may have a significant adverse impact on the company's business operations, financial position and overall performance.