Vip.Com: Logistics Layout Continued Investment To Reset Growth Expectations

According to the world clothing shoes and hats net, in August 17th,

It released the unaudited financial results for the second quarter of 2017 fiscal year ending June 30th.

The report shows that vip.com's total net revenue in the second quarter was 17 billion 520 million yuan (US $2 billion 580 million), an increase of 30.3% over the corresponding period of 13 billion 440 million yuan last year. The net profit attributable to shareholders of the company was RMB 386 million 500 thousand yuan (about 57 million US dollars), achieving a continuous 19 quarterly profit.

In the two quarter of this year, vip.com is experiencing the biggest change since it was founded in 2008.

Vip.com announced business adjustment in May this year, splitting Internet Finance and restructuring logistics business.

Three major business segments, Internet Finance and logistics, to create new growth engines.

In the second quarter, vip.com's increased investment in logistics links, layout of overseas warehouses and front-end warehouses, and a series of moves to expand storage area also confirmed this statement.

Continuous investment in logistics layout

Vip.com's layout of logistics business is reflected in the quarterly earnings report.

Vip.com accounted for 9.4% of its net revenue in the second quarter, up from 8.6% in the same period last year.

Vip.com's performance fees have continued to grow over the past few quarters.

The growth of performance fees is due to the growth of sales volume and the number of orders executed.

According to the results of the report, the number of active users in vip.com in the second quarter increased by 22% compared to the same period last year, and increased to 28 million 100 thousand. Total orders increased by 23% compared to the same period last year, and increased to 84 million 800 thousand.

On the other hand, vip.com's continuous investment in logistics business is mainly reflected in the construction of logistics centers and the increase of distribution personnel.

Vip.com has about 27000 last mile distribution staff and about 3500 distribution sites. The two figures were 23000 and 2800 in the previous quarter.

In terms of infrastructure, vip.com's local storage facilities have increased 4 leading warehouses in Nanning, Urumqi, Ji'nan and Harbin, and the total number has increased to 11. The international storage area has increased 19000 square meters of storage space in Japan and South Korea, and the total storage area has reached 2 million 200 thousand square meters.

In July this year, vip.com self built logistics "product express" has been awarded the National Express business license issued by the state post office.

In August, in the "2017 logistics industry atlas" published by the Internet Weekly, vip.com products logistics ranks third in the "2017 self built logistics representative enterprises".

This is vip.com's first achievement after reorganizing its logistics business. It shows that its restructuring and continuous investment in logistics business have been effective.

In the "last mile" logistics service, vip.com's second quarter 95% orders were finished by pin Jun logistics distribution, which was 91% in the same period last year.

The proportion of direct return from vip.com terminal distribution staff reached 68%, compared with 46% in the same period last year.

Yang Donghao, chief financial officer of vip.com, said that the improvement of terminal system has provided a solid foundation for vip.com's quality logistics construction, and paved the way for vip.com's sinking in the 234 line channel.

Reset growth expectations

Growth expectation is the most important reference standard for market valuation of enterprises.

According to the voice in the industry, although vip.com has made continuous profit in the 19 quarter, vip.com needs to expand its growth space urgently.

Vip.com chose to build its own logistics and purchase land independently.

Investment and operation ensure the depth and breadth of logistics capability to a certain extent while ensuring the quality of service.

In addition, self logistics also means that vip.com has the possibility of upgrading logistics business from cost center to profit center.

The role of technology is also crucial.

"Vip.com continues to increase its intelligence and automation investment in warehousing and logistics."

Tang Yizhi, senior vice president of vip.com, said that intelligent AGV handling robots, stacking machines and crawler conveyance technologies improved the efficiency of sorting and conveying, and shortened the occupancy time of warehouses to two to four hours.

In addition to the popularity of intelligent logistics, vip.com is also trying to control energy consumption.

Vip.com has built a 140 thousand square meter distributed photovoltaic power plant in Zhaoqing.

At the logistics side, the pport mileage can be reduced by redesigning the pportation process and optimizing the pportation route.

Meanwhile, vip.com has invested 286 logistics electric vehicles and new express bags to the whole country.

Insiders pointed out that vip.com electricity providers provide logistics and logistics import and logistics services to upgrade the logistics industry, the two major plates will interact.

Although the layout of vip.com in the second quarter of this year will not be particularly significant in the short-term earnings report, it will directly enhance its future industry status in the long run.

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