In The First Quarter, The Market Share Increased Again, And 200 Billion Zhongtong Has Broken Through The "Tongda System"?

Recently, Tongda express, a leading enterprise of express delivery, has repeatedly fallen into the storm of public opinion. After the "pet blind box" storm in early May, the company was recently exposed to the non-standard employment of its outlets.

However, Zhongtong express continued to make great progress in its performance. On May 20, the company's first quarter report showed that its revenue and net profit increased from January to March this year, and its market share increased again.

In the transformation of domestic express enterprises from the leading battle to the oligarch war, it seems that China Express is expected to break through the "Tongda system". As of May 20, the market value of the company's Hong Kong shares exceeded HK $210 billion, far ahead of other "Tongda" express companies.

"We firmly believe that Zhongtong's steady strategic planning and implementation, as well as the high-quality service based on its leading scale and efficiency, will provide us with a winning advantage in the future." Lai Meisong, chairman of Zhongtong express, is quite confident.

However, for China express, this "breakthrough" is not easy. The 21st century economic reporter noticed that the company is building a logistics ecological chain and trying to open up other growth points except express delivery. The influx of new tracks also means that opportunities and challenges coexist in China Express.

Single quarter profit surpasses SF for the first time

In China's private express industry, SF Holdings has been the king of profit of residential express enterprises with its high bargaining power. But in the first quarter of this year, things changed dramatically.

According to the financial report, Zhongtong express achieved 6.472 billion yuan of revenue from January to March this year, with a year-on-year increase of 65.29%; Net profit was 534 million yuan, up 42.41% year on year. As Shunfeng holdings lost nearly 1 billion yuan in the first quarter, and Zhongtong Express's profit data left Yuantong express, Yunda shares and Shentong express behind, which represented that Zhongtong Express's profit in the first quarter of this year ranked first among private express enterprises.

It is undeniable that one of the main reasons for the rapid growth of China Express's performance is the reduction of its performance base due to the epidemic situation last year. In 2020, the company's operating revenue will reach 3.916 billion yuan, a year-on-year decrease of 14.39%; Net profit was 375 million yuan, down 44.95% year on year. However, compared with the same period before the epidemic in 2019, Zhongtong express "increased revenue but not increased profit" in the first quarter of this year.

"In the first quarter, the price competition in China's express industry was fierce, and Zhongtong, as the leader, was hard to escape. But compared with other express enterprises, Zhongtong has shown a strong pressure resistance. " A transportation industry analyst told 21st century economic reporter.

In fact, since the resumption of production last year, "Tongda" express companies collectively called out the "price for volume" recovery strategy. The price of the new entrants, such as the polar rabbit, has been "fighting", causing a fierce price war in the whole express industry.

The 21st century economic reporter found that in order to cope with price competition, China Express adjusted its annual performance guidelines last year. In August 2020, after the second quarter results were announced, the company changed its performance guidelines for 2020: the net profit was reduced to 4.8 billion yuan to 5.2 billion yuan, while the business volume was increased to 16.2 billion units to 17 billion units.

In the end, the company successfully completed its business volume target, and its market share increased to 20.4%. However, its net profit was less than expected, only 4.326 billion yuan, a year-on-year decrease of 23.7%.

In the first quarter of this year, China Express continued to increase its business volume, completing 4.5 billion packages, and its market share increased by 1.5 percentage points compared with the same period last year“ Although the price competition is still fierce, leading to the decline of industry profit level, companies with stronger capacity and more stable partner network have achieved better performance. " According to Lai Meisong.

Fierce price competition is still the biggest variable in the short-term competition of express enterprises. Although Mr. Lai believes that the "price war" is unsustainable and will usher in an inflection point. But when the inflection point will come is still uncertain. Yan Huiping, chief financial officer of Zhongtong express, said that in the first quarter of this year, the single ticket price of the company's core express business decreased by 12.4%, "compared with its competitors in the same industry, this decline was the smallest, but we gained the largest market share growth.".

Therefore, after publishing the first quarter financial report, Zhongtong express did not revise the annual business volume guidelines, maintaining the forecast that "the package volume in 2021 will be in the range of 22.95 billion-23.8 billion, corresponding to a year-on-year growth of 35% - 40%".

In addition to the business volume in the first quarter, Zhongtong express will maintain at least 6.15 billion pieces per quarter in the future. This is not a small goal.

Meet a strong opponent again

It is no secret that Zhongtong express wants to do logistics ecology.

On May 28, 2020, Lai Meisong, chairman of China express, appeared in front of the live camera. In this live broadcast, Zhongtong moved the site to Zhongtong cloud warehouse warehouse to strengthen the exploration from logistics to business flow“ Zhongtong is not only a express company, but also a technology company, but a platform company and an ecological company. " Lai Meisong commented on the media.

21 century economic report reporter inquiry found that recently, Zhongtong express suspected to add code cold chain layout.

On May 18, the information provided by qixinbao showed that Beijing Yunleng Supply Chain Management Co., Ltd. was established with Zhou Wang as its legal representative and registered capital of 10 million yuan. Its business scope includes: supply chain management services, packaging services (excluding dangerous goods packaging), road freight forwarding, human handling activities, etc.

Through the equity structure, the company's shareholders include natural person Guo Xilei, Zhongtong Yunleng network technology (Zhejiang) Co., Ltd., and Shanghai QISHIDA supply chain management partnership (limited partnership). Among them, Zhongtong Yunleng network technology (Zhejiang) Co., Ltd. has a registered capital of 500 million yuan, and Zhongtong express directly holds 16% of the shares.

In addition, according to media reports, Zhongtong Express has opened the cold chain franchise business in a low-key manner. Similar to express, the end of the cold chain still adopts the franchise mode, and the platform adopts direct operation. The goal is to achieve the door-to-door cold chain network covered by 80% county-level cities by the end of the year.

The 21st century economic reporter noted that four months after Lai Meisong's live broadcast debut, China Telecom ushered in a second listing in Hong Kong. On the eve of listing, Zhongtong express officially released its ecosphere, including Zhongtong express, Zhongtong express, Zhongtong yuncang technology, Zhongtong commerce, Zhongtong international, Star Airlines alliance, etc.

China express only rely on express business, has been unable to achieve its own comprehensive logistics service provider logistics giant dream“ Express companies are accelerating into the second stage of all-round competition mode, from corporate governance, team structure, capital reserves, to solutions, industry integration, and Industry Alliance. " Zhao Xiaomin, deputy director of the postal express special committee of Shanghai Communications Commission, told the 21st century economic reporter that the next round will be a higher-level "war".

However, it is also a track for competitors. In addition to shun Fung Holdings, Jingdong Logistics, which will be listed in Hong Kong, is also coming.

On May 28, JD logistics will be listed on the main board of Hong Kong Stock Exchange and become the third listed subsidiary of Jingdong group. According to external analysis, the expected market value of Jingdong Logistics Company after listing will reach about HK $240 billion, surpassing that of China Express.

For China express, this is an opponent that can not be underestimated.

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