S.F. Holding Co., Ltd. 2024 Interim Report
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S.F. Holding Co., Ltd. 2024 Interim Report
S.F. Holding Co., Ltd.
2024 Interim Report
August 2024
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S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 1 Important Information, Table of Content and Definition
The Company's Board of Directors, Supervisory Committee, directors, supervisors, and senior
management hereby guarantee that the contents of the Interim Report are true, accurate, and complete, and that
there are no misrepresentations, misleading statements, or material omissions, and shall assume individual and
joint legal liabilities.
Wang Wei, the Company's legal representative, Ho Chit, Chief Financial Officer (financial head), and Hu
Xiaofei, the accounting director, hereby declare and warrant that the financial report contained herein is true,
accurate, and complete.
All directors have attended the Board meeting at which the Interim Report was considered.
Forward-looking statements such as future development plans contained herein do not constitute any
undertaking made by the Company to investors. Investors are advised to invest rationally and to take into
account possible investment risks.
In this Interim Report, the Company details the risk factors and countermeasures that may occur in the
future. For more information, refer to "Risk and Responses" in "Section X. Risks Faced by the Company and
Countermeasures" of "Chapter 3. Management Discussion and Analysis". Investors shall refer to this
information.
The Company is required to comply with the disclosure requirements of "Express Service Industry" in the
"Self-regulatory Guidelines No. 3 – Disclosure of Industry Information for Listed Companies on the Shenzhen
Stock Exchange".
The Company intends to pay no cash dividend, no bonus shares and no conversion of equity reserve into
share capital.
This report is prepared in both Chinese version and English versions. If there is any ambiguity in
understanding the report, the Chinese version shall prevail.
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S.F. Holding Co., Ltd. 2024 Interim Report
Table of Contents
Chapter 1 Important Information, Table of Content and Definition................................................... 3
Chapter 2 Company Profile and Key Financial Indicators................................................................. 7
Chapter 3 Management Discussion and Analysis............................................................................. 17
Chapter 4 Corporate Governance......................................................................................................79
Chapter 5 Environment and Social Responsibilities.........................................................................80
Chapter 6 Significant Events.............................................................................................................85
Chapter 7 Share Changes and Shareholder Details.........................................................................101
Chapter 8 Preferred Shares............................................................................................................. 108
Chapter 9 Bonds..............................................................................................................................109
Chapter 10 Financial Statements.....................................................................................................110
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S.F. Holding Co., Ltd. 2024 Interim Report
List of Documents Available for Inspection
(I) Financial statements signed and sealed by the legal representative, Chief Financial Officer (financial head) and the accounting
director of the Company.
(II) The original copies of all documents and announcements of the Company which have been publicly disclosed in newspapers
designated by the China Securities Regulatory Commission during the Reporting Period.
(III) The original text of the 2024 Interim Report signed by the chairman of the Board of Directors.
(IV) The place where the above documents are maintained: the office of the Company's Board of Directors.
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S.F. Holding Co., Ltd. 2024 Interim Report
Definitions
Term Description
Reporting period January 1, 2024 to June 30, 2024
The same period of
January 1, 2023 to June 30, 2023
previous year
The Company, the listed
S.F. Holding Co., Ltd.
Company, SF Holding, SF
RMB Renminbi
Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a wholly-owned subsidiary of S.F.
Taisen Holding
Holding Co., Ltd.
Shenzhen Mingde Holding Development Co., Ltd., the controlling shareholder of
Mingde Holding
S.F. Holding Co., Ltd.
Kerry Logistics Network Limited, a company listed on the Main Board of the Stock
Kerry Logistics Exchange of Hong Kong Limited (00636.HK), and a holding subsidiary of S.F.
Holding Co., Ltd.
Hangzhou SF Intra-city Industrial Co., Ltd., a company listed on the Main Board of
SF Intra-city the Stock Exchange of Hong Kong Limited (09699.HK) and a holding subsidiary of
S.F. Holding Co., Ltd.
SF Real Estate Investment Trust, listed on the Main Board of the Stock Exchange of
SF REIT
Hong Kong Limited (02191.HK), and an associate of S.F. Holding Co., Ltd.
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
HK Stock Exchange The Stock Exchange of Hong Kong Limited
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S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 2 Company Profile and Key Financial Indicators
I. Company Information
Company Profile
Stock Abbreviation SF Holding Stock Code 002352
Stock Exchange Shenzhen Stock Exchange
Chinese Name of the Company 顺丰控股股份有限公司
Chinese Name Abbreviation of the Company
顺丰控股
(If Any)
English Name of the Company (If Any) S.F.Holding Co.,Ltd.
English Name Abbreviation of the Company
SF Holding
(If Any)
Legal Representative of the Company Wang Wei
Contacts and Contact Methods
Board Secretary Securities Affairs Representative
Name Ling Gan Jing Zeng
Block B, TK Chuangzhi Tiandi Building, Keji South 1st Block B, TK Chuangzhi Tiandi Building, Keji South 1st
Address Road, Nanshan District, Shenzhen, Guangdong Road, Nanshan District, Shenzhen, Guangdong Province,
Province, China China
Tel No. 0755-36395338 0755-36395338
Fax 0755-36646688 0755-36646688
Email sfir@sf-express.com sfir@sf-express.com
Others
1. Company contact
Whether the Company's registered address, office address and its postal code, the Company's website and e-mail address have
changed during the Reporting Period?
□Applicable Not applicable
The Company's registered address, office address and its postal code, the Company's website and e-mail address were no changes
during the Reporting Period, which can be referred to the Annual Report 2023 for details.
2. Information disclosure and location where reports are kept
Whether information disclosure and the location where the report is kept changed during the Reporting Period?
Applicable Not applicable
The websites of the stock exchange and name of the newspaper and its websites on which the interim report is posted, and the
location where the Company's interim report is kept were no changes during the Reporting Period, which can be referred to the
Annual Report 2023 for details.
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Other relevant information
Whether other relevant information changed during the Reporting Period?
Applicable Not applicable
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S.F. Holding Co., Ltd. 2024 Interim Report
II. Key Operating and Financial Data
Results Overview for the First Half of 2024
Revenue Total assets
RMB 134.4 billion ↑8.1% RMB 219.9 billion ↓ 0.7%
Net assets attributable to the
Gross profit parent company3
RMB 18.6 billion ↑10.8% RMB 88.6 billion ↓4.6%
Net profit attributable to the parent
company1 Basic earnings per share
RMB 4.81 billion ↑15.1% RMB 1.0 /share ↑16.3%
Net profit attributable to the parent
company after deducting non-
recurring profit or loss2 Return on net assets4
RMB 4.15 billion ↑11.9% 5.2% +0.5%
Notes：
1. Net prot attributable to the parent company refers to net prot attributable to shareholders of the listed Company
2. Net prot attributable to the parent company after deducting non-recurring prot or loss refers to the net prot attributable to shareholders of the listed
Company after deducting non-recurring prot or loss
3. Net assets attributable to the parent company refers to net assets attributable to shareholders of the listed Company
4. Return on net assets refers to the weighted average return on equity
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S.F. Holding Co., Ltd. 2024 Interim Report
Financial summary
1.Major accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years?
□Yes No
Unit：RMB'000
Increase/decrease during the
Same period of previous
The Reporting Period Reporting Period over the
year
same period of previous year
Revenue 134,409,720 124,365,598 8.08%
Cost of revenue 115,784,772 107,555,280 7.65%
Gross profit 18,624,948 16,810,318 10.79%
Net profit attributable to
shareholders of the listed 4,806,714 4,176,282 15.10%
Company
Net profit attributable to
shareholders of the listed
4,147,970 3,705,309 11.95%
Company after deducting non-
recurring profit or loss
Net cash flow generated from
13,722,269 13,824,827 -0.74%
operating activities
Increase/decrease at the end
of Reporting Period as
End of the Reporting Period End of the previous year
compared with the end of the
previous year
Total assets 219,865,931 221,490,655 -0.73%
Total liabilities 120,954,581 118,206,995 2.32%
Net assets 98,911,350 103,283,660 -4.23%
Net assets attributable to
shareholders of the listed 88,571,197 92,790,344 -4.55%
Company
An increase of 1.64
Gearing ratio (%) 55.01% 53.37%
percentage points
Increase/decrease during the
Same period of previous
The Reporting Period Reporting Period over the
year
same period of previous year
Basic earnings per share
1.00 0.86 16.28%
(RMB/share)
Diluted earnings per share
1.00 0.86 16.28%
(RMB/share)
Weighted average return on net An increase of 0.51
5.23% 4.72%
assets (%) percentage points
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S.F. Holding Co., Ltd. 2024 Interim Report
2. Major financial data of operating segments
Segment external revenue
Unit：RMB'000
Increase/decrease during the
Same period of previous
The Reporting Period Reporting Period over the
year
same period of previous year
Express and freight delivery
96,820,175 90,058,986 7.51%
segment
Intra-city on-demand delivery
4,022,952 3,406,837 18.08%
segment
Supply chain and international
32,914,104 30,283,063 8.69%
segment
Undistributed units 652,489 616,712 5.80%
Total 134,409,720 124,365,598 8.08%
Segment net profit
Unit：RMB'000
Increase/decrease during the
Same period of previous
The Reporting Period Reporting Period over the
year
same period of previous year
Express and freight delivery
4,795,733 4,119,741 16.41%
segment
Intra-city on-demand delivery
62,174 30,314 105.10%
segment
Supply chain and international
-574,213 -308,075 -86.39%
segment
Undistributed units 450,071 15,186 2863.72%
Inter-segment elimination 27,157 37,074 -26.75%
Total 4,760,922 3,894,240 22.26%
Note：
(1) The corresponding relationship between the operating segments and the Company's principal business segments was: the express
and freight delivery segment is mainly time-definite express and economic express business, freight, cold chain and pharmaceutical
business, and other non-logistics business running by this segment; the intra-city on-demand delivery segment is mainly intra-city
on-demand delivery business, and other non-logistics business running by this segment; the supply chain and international segment
mainly is international express business, international freight and freight forwarding business, and supply chain business, and other
non-logistics business running by this segment; the undistributed units mainly include segments of non-principal logistics and freight
forwarding, including investment, industrial parks and other functional segments of the headquarters.
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3. Non-recurring profit or loss items and amounts
Unit：RMB'000
Amount Description
Please refer to Note 5(2) of Chapter 10
Investment income from disposal of subsidiaries 91,950
Financial Statements for details.
Non-current asset disposal gains and losses (including the
111,217
write-off part of the provision for impairment of assets)
Government subsidies included in the current profit and loss
It mainly represents fiscal subsidies for the
(except for government subsidies that are closely related to
logistics industry, tax refund, grants for
the Company's normal business operations, and are in line 326,249
employment stabilization, transport capacity
with national policies and are continuously granted on a
subsidy,etc.
certain standard or quantitative basis)
In addition to the effective hedging business related to the
Company's normal business operations, the profit or loss
from fair value changes in holding held-for-trading financial
295,092
assets and held-for-trading financial liabilities, as well as the
investment income from the disposal of held-for-trading
financial assets and held-for-trading financial liabilities
Reversal of provisions for impairment of accounts
30,084
receivable that have been separately tested for impairment
Other non-operating income and expenses other than the
-40,021
above
Less: Income tax impact 138,875
Impact on minority shareholders' equity (after tax) 16,952
Total 658,744
Note: The Company does not have other profit and loss items that meet the definition of non-recurring profit or loss; the Company
does not define the non-recurring profit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure of
Companies Offering Securities to the Public — Non-recurring Profit or Loss as recurring profit or loss.
4. Differences in accounting data under domestic and foreign accounting standards
1. Difference in the net profit and net assets in the financial reports disclosed in accordance with the International Accounting
Standards and the Chinese Accounting Standards:
□Applicable Not applicable
2. Difference in the net profit and net assets in the financial reports disclosed in accordance with overseas accounting standards and
in accordance with the Chinese Accounting Standards:
□Applicable Not applicable
3. Explanation of reasons for differences in accounting data between domestic and foreign accounting standards.
□Applicable Not applicable
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S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 3 Management Discussion and Analysis
I. Business Development of the Company
(I) Overall Review
1. Market Overview and Road initiative were playing a more and more important
role in the trade of China.
I) Domestic market
Domestic logistics demand recovered steadily along with
In the first half of 2024, the Chinese economy made good the recovery of industrial production. According to China
progress while ensuring stability. According to the National Federation of Logistics & Purchasing, in the first half of 2024,
Bureau of Statistics, China's GDP reached RMB61.7 trillion in the total social logistics costs were RMB8.8 trillion,
the first half of 2024, representing a year-on-year increase of representing a year-on-year increase of 2.0% and accounting
5.0%. The increase was mainly driven by industrial recovery. for 14.2% of the GDP, a decline of 0.3 percentage points over
In particular, investment in high-tech industries increased by the same period of last year. During the process of the
10.6% year-on-year and the added value of high-tech replacement of old growth drivers with new ones and industrial
manufacturing above designated size increased by 8.7% year- upgrading in China, logistics companies are further integrating
on-year, demonstrating the accelerated development of new into industrial chains, and improving the efficiency of supply
quality productive forces. chains with technical innovation to promote the reduction of
total social logistics costs while ensuring stability. In the future,
The growth of the consumer market was relatively weak in
logistics companies that have efficient supply chain planning
general. In the first half of 2024, the total retail sales of
and the ability to implement the planning will embrace more
consumer goods increased by 3.7% year-on-year, representing
development opportunities.
a decrease of 4.5% over the same period of last year. In
particular, the online retail sales of physical goods increased by Driven by active demand for online shopping, the express
8.8% year-on-year, contributing 57.3% to the total growth of industry maintained rapid growth. According to the State Post
consumer goods retail sales. The further increase in the Bureau, 80.16 billion deliveries were made in China during the
proportion of online shopping reflected to a certain extent the first half of 2024, representing a year-on-year increase of
prudent consumer consumption and the trend of pursuing 23.1%. The revenue of China's express delivery business in the
higher cost performance by consumers. first half of 2024 was RMB653.00 billion, representing a year-
on-year increase of 15.1%. The importance attached by
External trade performance has shown an overall positive
consumers to the cost performance of shopping will drive
trend. According to the General Administration of Customs,
enterprises and merchants to further reduce express and
China’s foreign trade exports grew by 6.9% in the first half of
logistics costs. In the first half of 2024, major express
2024, of which the exports of mechanical and electrical
enterprises recorded a decline in average revenue per shipment .
products accounted for over 60% of the total exports, with the
Driven by intensified market competition, express enterprises
exports of high-tech products such as integrated circuits and
keep reducing costs and improving efficiency and provide more
automobiles maintaining high speed growth. As for trade
competitive services and pricing while balancing revenue and
partners, exports to the ASEAN grew by 14.2% and total
profitability, so as to gain more market shares.
exports to countries involved in the Belt and Road initiative
rose by 8.4%. The ASEAN and countries involved in the Belt
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II) Overseas Market lithium batteries, photovoltaics and furniture, with Chinese
companies establishing factories overseas. As for “the global
The international environment remained complicated and expansion of brand”, industries such as coffee and tea drinks,
ever-changing. While inflation has shown signs of easing, the food and catering and beauty and personal care are showing
interplay of regional conflicts, supply chains restructuring and strong growth momentum, accelerating the establishment of
competitions and maneuvering in the financial sector continued directly-operated stores or self-owned sales channels overseas.
to exert a complex impact on the global economy and trade. In the process of global expansion, it is crucial for Chinese
According to the forecasts of the IMF, the global economy is enterprises to build a supporting cross-border and overseas
expected to grow by 3.3% in 2024, with an increase in the supply chain system. More and more enterprises hope to
economic growth of emerging markets and developing replicate the efficient supply chain model in China to overseas
economies, and emerging market economies in Asia will markets and compared with their overseas peers, Chinese
remain as the main driving force of the global economy. In logistics enterprises have advantages such as cultural
addition to economic activities, world trade has gradually consistency, better cost effectiveness, security and reliability.
stabilized and rebounded in the first half of 2024, with exports In the long run, the improving industrial chain strength and
in the Asian region being relatively strong, especially in the brand competitiveness of China, as well as the expansion of
field of technology. cross-border e-commerce platforms and independent websites
in the global consumer market, will create a highly favorable
In the first half of 2024, as affected by the increase in
development environment and opportunities for the
demand and the decrease in supply of sea freight resources
comprehensive logistics enterprises in China to collaborate
resulted from regional conflicts, the price for international air
with their customers as they expand into overseas markets.
and sea freight increased significantly, especially those for
routes from Asia-Pacific to Europe and America. Benefiting
from the booming cross-border e-commerce, China’s emerging
e-commerce platforms are vigorously exploring overseas
2. Business Strategy
markets, with increased demand for cross-border logistics and As a company committed to long-termism, the Company
air transportation. Furthermore, along with the in-depth trade has always been dedicated to achieving best-in-class service
cooperation between China and ASEAN, RCEP (Regional quality, steady business growth, and superior cost efficiency.
Comprehensive Economic Partnership) member countries and In the first half of 2024, against the backdrop of a complex
countries involved in the Belt and Road Initiative, the industrial and changing global macro-environment, the Company has
and supply chain were deeply interconnected with a smoother “ harnessed strength and rode the tide ” , seized the
customs clearance of goods, spurring the development of opportunities for development, and realized a increase in
international logistics and supply chain in China and across both revenues and profits, reflecting its strong operational
Asia. resilience. Relying on its unique business model and leading
integrated logistics service capability, the Company captured
With the reshaping of global supply chains and the
new opportunities in the domestic and international markets,
industrial transformation and upgrading in China, the
and made more business breakthroughs in the industries and
internationalization of Chinese enterprises and products is
scenarios, achieving healthy growth. At the same time, the
gradually shifting from the models of traditional trade exports
Company continued to strengthen lean management and
and cross-border e-commerce to new models such as the global
promote multi-network integration and operation mode reform,
expansion of capacity and brand. As for “the global expansion
constantly improving efficiency and reducing costs to enhance
of capacity”, the focus is mainly on industries such as 3C
profitability. In addition, the Company optimized its
electronics/communications, automobiles, garment OEM,
management mechanism, stimulated its organizational vitality,
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S.F. Holding Co., Ltd. 2024 Interim Report
increased authorization and incentives, and enhanced the supply chains, which have fully demonstrated the leading
management awareness and market competitiveness of its staff, position of the Company in technological strength and the best
so as to promote their value contribution of and revenue practices of supply chains. The Company is able to meet all the
generation. demands of customers. In order to apply the successful
experiences of top customers to the vast number of mid-tier
I) Demonstrate operation resilience and achieve new
customers and small and medium-sized enterprises in a broader
breakthroughs in the domestic and international business
way, the Company has established the strategic direction of
“accelerating industry transformation” this year. The Company
Continuously strengthen the competitiveness of mid-to-
has enhanced a top-down working mechanism to accelerate the
high-end services: Facing the current market environment of
transformation of the entire network from the traditional model
competing services and cutting price, the Company has insisted
of “selling products” to “selling solutions” to accounts from
on striving for excellence, strengthened the leading advantage
different industries. During this process, the Company will
of mid-to-high-end time-definite products, and continuously
continuously accumulate its capability map to develop
improved the service quality. With the strength of air freight
standardized product portfolio that is industry and scenario
and the unique advantages of the Ezhou hub, the Company has
specific, and promote to more small and medium-sized
boosted the development of domestic new quality productive
enterprise customers in the industry, thus ultimately helping
forces and industrial upgrading, creating a highly efficient and
enhance the market share of the Company in logistics services
responsive domestic and international supply chain for more
across various industries. In the first half of 2024, the
high-end industrial customers. In the first half of 2024, the
Company's logistics revenue in the automotive, home appliance,
Company's business volume of bulk express air transportation
e-commerce and distribution, and industrial manufacturing
achieved rapid growth, and there were a total of more than 30
sectors grew by more than 20% year-on-year.
top customers in the high-end industries covering 3C
electronics, high-tech, fast moving consumer goods, Expanding the overseas markets to achieve the target
pharmaceuticals, automobiles and engineering machinery of “The One In Asia”: The trend of the "global expansion of
settling in the Ezhou Hub. SF has joined hands with customers capacity and brand" of Chinese enterprises has brought about
to build warehousing centers and provided integrated enormous, stable and attractive opportunities in terms of supply
warehousing and distribution services, realizing the ultimate chains. From the perspective of the global expansion of
timeliness of the fastest “evening delivery and morning arrival”, capacity and brands, the six countries in Southeast Asia
empowering efficient supply chain and boosting industrial account for the largest proportion, representing that they have
upgrading. seized most of the opportunities brought by the global
expansion of Chinese enterprises. In the first half of 2024, the
Speeding up penetration of logistics market share in
Company focused on six Southeast Asian countries (including
the industries where customers are operating: The Company
Singapore, Malaysia, Thailand, Vietnam, Philippines,
understands that customer needs are becoming increasingly
Indonesia), Japan, South Korea and other Asian countries.,
diversified, especially under a fierce market competition. The
through continuous expansion in its international network and
focus of customers has shifted to the optimal planning and
the integration of Kerry Logistics’ competitive strength in Asia,
layout of the overall supply chain, as well as the efficient
has improved service capability of international express
implementation of digitalization, intelligence and greening. In
delivery, international supply chain, cross-border e-commerce
recent years, the Company, together with major accounts from
logistics, international freight forwarding and Southeast Asia
different industries, has jointly created a series of benchmark
domestic logistics. Compared with China’s other express
cases for top customers in the industry from industry solutions
logistics service providers, the Company is on the leading edge
empowered by technologies to the active exploration of smart
of the international network with service capabilities
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S.F. Holding Co., Ltd. 2024 Interim Report
throughout the whole chain, a wider range of customer base and accurate marketing strategy to expand the market segments
worldwide and the core logistics resources. Compared with for economy retail business, low-kilogram e-commerce small
other international express logistics service providers, the parcels and high-kilogram industrial bulk parcels with more
Company provides services at a favorable cost and better cost competitive services and pricing, with a view to strategically
performance. In the first half of 2024, to seize opportunities enlarging the business scale and effectively bringing into full
from customers for global expansion, the Company established play of the economies of scale of the network, thus realizing
a linked working mechanism among the headquarters, the virtuous cycle of “cost reduction, scale enlargement and
departments in charge of supply chains and departments in quality improvement” and facilitating the increase in both gross
charge of the Asia region, collaborated with customer on profit margin and net profit margin of the Company.
development and solution formulation, and consolidated the
international air and sea transportation resources and overseas Ⅲ) Inspiring organisational dynamism, improving business
local resources of the Company to promote the implementation awareness and market competitiveness
of projects. In the first half of 2024, the Company has
In order to effectively promote the successful
successfully won the bids for over 40 cross-border supply chain
implementation of the Company's development strategy and
cooperation projects in Asia, covering e-commerce and
business strategy, the Company reshaped the supporting
distribution, industrial manufacturing, high-tech, clothing and
management mechanism to stimulate the organizational vitality
footwear, home appliances and furnishings, automobiles and
by granting the front line full operating rights and strongly
coffee and tea beverage chains, and achieving breakthroughs in
correlated incentives. The headquarters function was changed
international supply chain business from 0 to 1 to N in several
from management to serving frontline operation, releasing the
countries, industries and service scenarios. More than 45% of
market expansion power of each business area, outlets and
the Fortune Global 500 companies use the products and
other operating units. At the same time, more time was created
services of SF International.
for the couriers at the terminal to serve customers, and the
Ⅱ) Improve efficiency and reduce costs with lean enthusiasm and success rate of the couriers’ business
management to boost performance improvement development was improved through marketing authorization,
responsibility loosening, technology-based empowerment,
The Company promoted the construction of the network
income-generating incentives and other methods. Ultimately,
infrastructure based on the principle of pursuing a balance
business awareness from top to bottom was improved,
among quality, timeliness and cost, and continued to deepen the
stimulating entrepreneurial spirit and promoting revenue
operation mode reform, strengthen network integration and
generation for all staff.
lean resources management. With the direction of streamlining
the backbone network, as to distribution, the Company
integrated and built multi-functional sites, improving the
production capacity utilization rate through a number of 3. Financial Review
initiatives. As to transportation, the Company optimized the
In the first half of 2024, the Company adhered to the
transit mode and routing planning to reduce transit nodes,
operating principle of sustainable and healthy development and
maximizing intensive delivery and route straightening. As to
achieved high-quality business growth, with total revenue
the terminal, the Company continued to deepen the mode
reaching RMB134.4 billion, representing a year-on-year
reform to improve the efficiency of outlets, ultimately pushing
increase of 8.1%, and parcel volume reached 6.24 billion,
down the operation cost of a single delivery on a continuous
representing an increase of 6.3% over the same period.
basis. At the same time, the Company made full use of the
remaining production capacity and flexibly matched resources
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S.F. Holding Co., Ltd. 2024 Interim Report
Excluding the Fengwang business1, the total revenue increased With regard to costs, the Company has continuously
8.7% and the parcel volume of the Company increased 14.3% optimised its operating model, streamlined its network structure,
in 2024 over the same period. On the basis of steady business improved its resource utilisation efficiency and fully capitalised
growth, the Company persistently strengthened lean operation, on the benefits of its large network scale while investing in
enhanced management efficiency and optimised cost structure, building its long-term core competitiveness. As a result, the
ultimately achieving net profit attributable to shareholders of Company's gross profit reached RMB18.6 billion in the first
the listed company (the "Net Profit Attributable to the Parent half of 2024, representing a year-on-year increase of 10.8%;
Company") of RMB4.81 billion, representing a year-on-year while gross profit margin stood at 13.9%, representing a year-
increase of 15.1%, and net profit margin attributable to the on-year increase of 0.4 percentage point.
parent company of 3.6%, representing a year-on-year increase
of 0.2 percentage point. In terms of expenses, thanks to the Company's continuous
efforts in strengthening its lean operation and management and
In respect of the revenue, ①revenue from express logistics improving its management efficiency with the power of
business2 amounted to RMB99.0 billion, representing a year- technologies, the Company's major expense ratios decreased
on-year growth of 7.6%. Excluding the Fengwang business, while remaining stable, with the management expense ratio,
revenue increased by 8.4% year on year. While consistently seliing expense ratio and finance cost ratio decreasing by 0.5
strengthening the competitiveness of its timeliness services and percentage point, 0.03 percentage point and 0.1 percentage
expanding its customer base in emerging industries and new point year on year, respectively.
business scenarios, the Company has been penetrating more
economic logistics markets in the production and consumer In summary, the Company achieved faster performance
sectors with services of higher value for money, thus helping to growth in the first half of 2024: Net Profit Attributable to the
expand its business scale and realise revenue growth; ② Parent Company reached RMB4.81 billion, a year-on-year
revenue from supply chain and international business3 increase of 15.1%; Net Profit Attributable to the Parent
amounted to RMB31.2 billion, representing a year-on-year Company net of non-recurring gains and losses reached
growth of 8.1%. This was mainly attributable to the RMB4.15 billion, a year-on-year increase of 11.9%.
stabilisation of demands for international air and ocean freight
In respect of capital structure, as at the end of the
and the year-on-year increase in freight rates, as well as the
reporting period, the Company's total assets amounted to
Company's efforts to grasp the opportunities arising as Chinese
RMB219.9 billion, net assets attributable to shareholders of the
enterprises expand globally, by intensifying business
listed company amounted to RMB88.6 billion, and gearing
integration and exploring the supply chain and international
ratio stood at 55.0%, indicating that the financial structure of
markets on an ongoing basis; and ③ revenue from other non-
the Company remained generally sound. Meanwhile, the net
logistics businesses amounted to RMB4.2 billion, representing
cash flow from operating activities of the Company amounted
a year-on-year increase of 19.7%, which was mainly
to RMB13.7 billion, representing a robust cash flow. In
attributable to the growth of business in the procurement
addition, the Company adhered to lean resource planning and
segment as part of the end-to-end supply chain services
strengthened control over the efficiency of resource investment.
provided by the Company.
In the first half of 2024, investments in fixed assets (other than
1
Transfer of the Fengwang business was completed and delivered in June equity investments) totalled RMB5.48 billion, representing a
2023.
2
Express logistics business primarily consists of time-definite express decrease of 7.8% compared to the same period last year, and
services, economy express services, freight delivery services, cold chain and
pharmaceuticals logistics services and intra-city on-demand delivery accounted for 4.1% of the total revenue, representing a
services.
3
Supply chain and international business primarily consists of international decrease of 0.7 percentage points compared to the same period
express services, international freight forwarding services and supply chain
services. last year.
21
S.F. Holding Co., Ltd. 2024 Interim Report
In the future, the Company will continue to focus on capabilities to actively expand in the international market, the
investing in building its long-term core competitiveness, Company is confident that it will continue to maintain a good
developing a highly efficient and leading domestic and development momentum and achieve solid growth in revenue.
international logistics network and promoting business Meanwhile, due to the seasonal factors in the express business
integration to enhance the efficiency of resource utilisation, and the objective situation of the increase in resource prices in
with a view to maintaining capital expenditure as a percentage peak seasons, the profit margin of the Company in the first half
of revenue at a healthy level. of the year is generally slightly higher than that in the second
half of the year; however, as the Company pursues lean
Overall, the Company maintained its resilience in the first management and deepens reforms as well as strives for
half of 2024 amidst a complex global macro-environment, and reduction in costs, it is expected that the net profit attributable
achieved higher-than-expected revenue growth alongside solid to the parent company in the second half of the year will be
revenue growth.Looking ahead the second half of the year, with between the figure for the whole year of 2023 and that for the
the deepening and penetration of logistics services in the fields first half of 2024, and the net profit attributable to the parent
of production and life, as well as the integration of business company for the year of 2024 will be higher than that of 2023.
22
S.F. Holding Co., Ltd. 2024 Interim Report
(II) Summary of Business Development
1. Customer Operation industries and fields. The Company also developed flagship
portfolios with large revenue scale, wide coverage and high
I) Customers with active credit accounts4 reuse frequency and which fully demonstrate the Company’s
strength in product/service/system. In particular, furniture
As of the end of June 2024, the number of customers delivery and assembly, valuable wine transportation, SIM card
with active credit accounts amounted to approximately
4 delivery + activation and automotive parts and supporting
2.24 million, representing an increase of 14.9% year-on- services, the four groups of flagship portfolios, have been
year approximately 290,000 as compared with December, replicated and promoted at the fastest pace, covering the vast
2023. majority of business areas, with a year-on-year revenue growth
rate of 60%-145% in the first half of the year.
(1) Accelerating penetration of logistics market share
in the client's industry: To deal with the constantly changing (3) Benchmark cases:
global macro-environment, the Company adheres to sustainable
Automotive aftermarket parts services: With the
and healthy development and has established a business
comprehensive suite of services encompassing express, LTL
strategy aimed at “accelerating industry transformation” in the
and FTL freight, warehousing and supply chain, and system
year. The Company focuses on the transformation of logistics
customization, the Company developed the automotive parts
services in various industries from standard capabilities to non-
and supporting service packages and made a breakthrough
standard services, accelerated the transformation from the
achievement in managing the logistics businesses related to
traditional model of “selling products” to “selling solutions”, so
automotive maintenance including reverse parts recycling,
as to provide customized integrated logistics solutions and
shipment by nationwide warehousing centers, warehouse
standardized product portfolio to top customers in various
operation and delivery to outlets, which were previously the
industries and a wide range of small and medium-sized
advantages shaped by a leading automotive maintenance
enterprises. In addition, the Company fully integrates the
service provider in China, with the bids won in the first half of
capabilities of various business segments and supply chain
2024 generating an annualized revenue of over RMB100
organizations within the Group to improve sales collaboration
million. Such service solutions were also expanded to other
and operational integration and promote market expansion and
large auto manufacturers and automotive parts companies, and
project implementation. All this aims to expand the Company's
the bids won and the expected potential contracts in the first
share of logistics services for customers and to increase the
half of 2024 in aggregate created annualized revenues in
Company’s market share of logistic service in various
hundreds of millions.
industries, thereby achieving the overall business objectives of
the Group and ensuring that the Company maintains its leading O2O service scenarios in the supermarket industry:
position in the fierce market competition. Focusing on the needs for contract fulfillment derived from the
online retail layout of the superstore industry from regional
(2) Phased achievements: In the first half of 2024, the
warehouses, forward warehouses and supermarket stores to
company's logistics revenues in the automotive, home
consumers, as well as the transfer and transportation needs
appliances, e-commerce and distribution, and industrial
from warehousing replenishment and delivery to stores in
manufacturing sectors grew by more than 20% year-on-year.
various cities, the Company has deposited the capability
Meanwhile, the Company has developed dozens of
mapping of B2C multi-level (multi-category, multi-temperature,
standardized product portfolios, covering various segmented
multi-time) contract fulfilment and delivery, as well as B2B
multi-temperature and warehousing-distribution integration. In
4
The number of active credit accounts is derived from the credit the first half of the year, the Company further expanded the
accounts who signed agreements with the Company and conducted B2C business of an internationally renowned large-scale
business transactions in June 2024 supermarket chain enterprise, realizing instant delivery, same-
23
S.F. Holding Co., Ltd. 2024 Interim Report
day delivery and next-day delivery fulfilment of online orders assembly segments in the industry, the Company deeply rooted
for frozen, fresh and dry goods, and a breakthrough in the B2B in customer’s full scenarios through combination of multiple
business of multi-temperature warehouse management and solution. In the first half of the year, the Company cooperated
multi-temperature truck tandem transport to stores for the with a domestic smart hardware manufacturer in the business
management of the cold, frozen, fruit and vegetable and dry fields of material intake, domestic full-truck-load transport,
goods of a domestic large-scale supermarket. At the same time, international heavy cargo air freight and other businesses,
we are actively promoting the reuse of this solution to other representing an increase of 10 times in the scale of revenue
domestic and international head supermarket customers. In the generation of annual contracts. At the same time, the Company
first half of the year, the company achieved a year-on-year achieved a breakthrough in the scenario of cross-border air
growth of more than 100 % in logistics revenue generated in transport business of raw materials, formed cross-border
the supermarket industry. service package for raw materials of consumer electronics, and
promoted reuse among a number of 3C electronic enterprise
Service scenarios in the communication and advanced
customers.
technology industry: Focusing on the components and
24
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅱ) Retail Customer to complete the delivery of returned parcels by SF on their own.
The "delivery logistics" function area was also launched to
As of the end of June, 2024, the number of retail
highlight the ordering channels for the Company's large, LTL
customers amounted to 699 million, representing an
and FTL transportation services for a wider range of user
increase of 5.4% or approximately 36 million as compared
groups. In addition, the Company continued to enrich the
with December, 2023.
lifestyle service function area by integrating its internal and
(1) Online Expansion: ①Enhance traffics on private external service resources to fully expand the scenarios
domains: The user base of SF APP has achieved rapid growth, involving express logistics services, such as recycling of old
with the total number of accumulated members amounting to clothes and books, washing and caring of clothes and
approximately 120 million, and the number of new members household appliances, moving services, cell phone repair,
amounting to more than 11 million compared with that of the movie ticketing, luxury goods recycling, etc., so as to drive the
beginning of the year, of which the average number of daily growth of the Company's delivery business while providing
active users increased by 18.3% year-on-year. Meanwhile, the convenient lifestyle services for users.
Company optimized and promoted paid membership programs
(2) Seizing the Real-time Opportunities in the Offline
such as SVIPs and Affinity Card in the first half of the year,
Business: ① Strengthening incentive guidance and
and the cumulative number of users who purchased the
marketing authorisation: The Company drives couriers to
programs reached 9.7 million, representing a year-on-year
actively develop high-value retail business by implementing
increase of 57.4%. ②Upgrade membership benefits: The
targeted incentive policies, The Company drives couriers to
Company continued to enrich the membership benefits with
actively develop high-value retail business by implementing
additional more than 20 types to further enhance user stickiness.
targeted incentive policies, while empowering couriers with a
The number of users who enjoyed the upgraded benefits in the
specific range of marketing tools and permissions, so that
first half of the year amounted to 170 million, representing a
couriers have the autonomy of business development and sales
year-on-year increase of 147.7%. ③ Promote Prepaid Cards:
to help generate revenue from retail business. ② Upgrading
the number of prepaid card recharges exceeded 4 million in the
the community collaboration model: The community
first half of the year, representing a year-on-year increase of
assistant operational system was built and improved and also
17.8%, and the prepaid business scale grew rapidly, driving the
piloted in some business areas. The Company has given full
subsequent potential incremental delivery business.
play to the advantages of community neighborhood relationship
④Continuously optimize user experience: The Company has
and acquaintances through the flexible formation of community
continued to simplify the order placement process to improve
service team to promote the development of the community
the users' delivery operational efficiency, including optimizing
express delivery business, and effectively ease the work
the "online shopping return" function, which met the
pressure of the couriers in the peak business hours, enhancing
consumers’ needs for parcel return on major e-commerce
the end collection and delivery efficiency in a more cost-
platforms and offered preferential pricing to attract consumers
effective way and strengthening the individual user stickiness.
S.F. Holding Co., Ltd. 2024 Interim Report
2. Business Development and business opportunities in the areas they serve through
technologies, and granted them flexible and autonomous
Ⅰ）Time-definite express marketing authorities to support the expansion of individual
retail clients and small and micro businesses, further
In the first half of 2024, the Company's time-definite
penetrating and seizing the market share of time-definite
express business achieved tax-exclusive revenue of
delivery.
RMB59.19 billion, representing a year-on-year increase of
5.6%. The Company's time-definite services continue to lead (2) Expanding the New Incremental Volume of the
the industry, striving for excellence in time-definite Bulk Express Air Transportation: Through model
performance, and keep expand more emerging industry optimization and bulk flights resources expansion, the number
customer bases and new scenarios, providing customers with of cities in which a direct receiving and dispatching mode
value-for-money services. The Company's time-definite express between customers and airports can be realized at both
parcel volume grew 10% year-on-year, with the parcel volume collection and delivery ends for aviation large items has
structure penetrating steadily from corporate business to large- increased to 147, and the next-day timeliness completion rate
scale consumption and industrial manufacturing in the past few has increased by 11 percentage points year-on-year; at the same
years, and the delivery proportion of consumption and time, the Company enhanced the flexibility of the
industrial manufacturing related categories become the main transshipment process in terms of crosstown points and load
growth drivers for time-delivery. distribution, the customer-oriented services, the emergency
response and the abnormality handling ability, etc., and
(1) Enhancing Product Competitiveness: The Company
continued to improve the service quality in order to boost
has continued to improve product timeliness and its
business expansion. In the first half of the year, the Company
commitment to customer service by refining timeliness service
made new breakthroughs among high-end industrial customer
layering, combining resource matching and precision marketing
bases, such as the provision of professional packaging of
and enhancing the cost-effectiveness of its products so as to
integrated circuits and other materials, port-to-port services in
expand its business scale. In terms of speedy express
bonded zones, and cross-border supply chain emergency
products, the Company optimized route planning and
transportation to high-tech enterprises, in which cross-border
increased the acquisition of advantageous bulk flights resources
transportation was completed within 2 days from delivery,
to enhance the timeliness ability in all aspects, achieving a 16%
customs clearance to dispatch; the provision of oversized and
increase in the number of next-morning arrival air stations; at
overweight as well as magnetic and electric air transportation
the same time, the Company optimized the connection between
solutions to medical enterprises, making breakthroughs in the
air and land transportation to compress the processing time of
segmentation of the biological sample industry; and the
the whole process, the average transit time for of speedy
provision of a full set of logistics solutions from raw material
express products in the first half of 2024 was reduced by 1.6
procurement to in-plant logistics to new energy vehicle
hours. In terms of standard express products, the Company
enterprises, as well as the provision of the ultimate time-
focused on key city routes to optimize the transportation modes,
definite service of evening delivery and next-morning arrival
"decentralized" short and medium distance transit, and
for the urgent stocking needs of production lines. At the same
improved the next-morning arrival capacity by optimizing route
time, the Company has continued to expand business scenarios
planning, increasing inter-city direct delivery routes, and
such as extra-large and heavy items, and seasonal fresh, which
flexibly using the bus crosstown mode, etc. For long-distance
has contributed to the rapid growth of bulk flights volume of
deliveries, the Company strategically combined ground
the aviation business.
transport with air transportation to improve the timeliness and
provide customers with a more efficient delivery experience; at (3) Strengthening Intra-city Express Delivery
the same time, the Company upgraded the client timeliness Fulfillment Capability: The Company continued to strengthen
commitment to enhance customer perception. In addition, the the average 4-6 hours of intra-city half-day express delivery
Company helped couriers to grasp more refined user profiling fulfillment capability within the city and in cross-city economic
S.F. Holding Co., Ltd. 2024 Interim Report
circle, expanding intra-city half-day express delivery service to couriers and also reduced the delivery cost of each parcel,
274 cities in the first half of the year, extending the capability feeding the market to improve the pricing competitiveness.
to cross-city express delivery, and widening the cut-off time of
(5) The Ezhou Hub Boosted Product Upgrading: The
cross-city half-day delivery service in East China and South
Ezhou hub can reach the whole country and link to the world,
China, thereby bringing in more incremental business volume.
by which the Company provided customers with warehousing
Meanwhile, the Company expanded more business scenarios
+ forwarding integrated services, maximizing the ultimate
for its customers through mode innovation, such as launching
timeliness of "evening delivery and morning arrival " and
the "Flowers 520 day-selective-delivery" service for an
helping customers build a high-efficiency supply chain. By the
emerging e-commerce platform, which supported optional
first half of the year, the Company has opened 55 domestic
delivery time, covered 248 cities, and achieved a timeliness
routes and 13 international routes on the Ezhou hub and
completion rate of 99.24%. The Company combined terminal
reached 15 overseas terminals, with about 37,000m2 of the
outlets with SF INTRA-CITY rider resources to create a "front
supporting warehousing space rented out. At present, more than
warehouse + delivery within an hour" mode, which served the
30 customers have already settled in, including 3C high-tech,
near-field e-commerce business scenarios of a leading platform
fast moving consumer goods, pharmaceuticals, automobiles,
in Beijing, Shenzhen, Hangzhou and other places, and will be
engineering machinery and other high-end industries. Among
expanded nationwide in the future when it is mature.
them, an airline company planned to build a large-scale fresh
(4) Consolidating the Market Share of E-Commerce food port to complete the whole process of fresh food from
Parcel Return: Relying on the high time-definite door-to-door import, processing to transshipment to reach consumers within
collection and end-to-end distribution capabilities, the 36 hours by combining the advantages of the Ezhou hub
Company continued to consolidate and seize the share of parcel warehousing and SF cargo aviation. An international leading
return business in the leading major e-commerce platforms and optical enterprise planned to build a global benchmarking
continued to expand the new platform customers, of which the eyeglasses processing and warehousing and distribution centers
Company's share of platform distribution parcel returns in some in the Ezhou hub, with which SF intends to provide
e-commerce platforms accounted for 70%-90%, helping to warehousing management + assembly and processing + transit
maintain rapid growth of e-commerce parcel return orders. At distribution integrated services, achieving the one-stop
the same time, a new order placement function of consumer operation of the whole process from the consumer order
online shopping return was launched on SF APP to support the placement to the lenses production and delivery. The airport
consumer's independent return scenario. In addition, the city surrounding the Ezhou hub continues to solicit investments,
implementation of the delivery centralized operation for the with which more new incremental air cargo business is
return warehousing reduced the delivery pressure of the expected to be brought in the future.
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅱ）Economy express (2) Improve Quality and Enhance Revenue of
Warehousing and Distribution Integration Services: Relying
In the first half of 2024, the Company’s economy
on the efficient and flexible warehouse network with strategic
express achieved tax-exclusive revenue of RMB13.25 billion,
layout across the country and consisting of self-operated,
representing a year-on-year increase of 9.3%. Adhering to
managed, and franchised warehouses, the Company provided
the sustainable and healthy operation, the Company completed
customers with hierarchical warehousing and distribution
the sale delivery of the franchise model Fengwang Express in
integration services covering the production end, the consumer
June 2023, and revenue of economy express excluding
end and cross-border demand. In 2024, guided by "improving
Fengwang Express increased by 15.6% year-on-year, which
professional ability, guaranteeing service quality and
was higher than the overall growth rate of the express industry.
optimizing resource investment", the Company continues to
The overall e-commerce consumer market has optimize the integrated warehousing and distribution operating
experienced sluggish growth this year. The Average Selling capability, continuously refines its service capability, and
Price (ASP) of the franchised express delivery enterprises promotes a year-on-year increase of 34% in the NPS (Net
mainly engaged in e-commerce parcels within the industry has Promoter Score) of warehousing and distribution business.
declined to varying degrees, and the industry competition
Rapid growth of the Company's integrated warehousing
remains relatively fierce. However, our economy express still
and distribution business was safeguarded by the high-quality
achieved better business growth on the basis of retaining a
services, in which in addition to maintaining a solid business
significant premium compared with peers. Thanks to the
advantage at the SKA customer level in the first half of the year,
Company's consistent adherence to a differentiated competitive
revenue generated at the KA customer level increased by 54%
strategy and with high-quality door-to-door delivery fulfillment
year-on-year and revenue generated at the SME customer level
capabilities and sound integrated warehousing and distribution
increased by 115% year-on-year. With the positioning as the
services, the Company has become the No.1 preferred
independent third-party logistics service provider, the Company
cooperator among more mid-range and high-end brand
can continue to deepen cooperation with different types of e-
customers who pay attention to the consumer shopping
commerce platforms, and constantly expand the new platform
experience.
business, with various integrated warehousing and distribution
(1) Enlarging the Scale of the E-commerce Express business of online supermarkets scenario on the mainstream e-
Business: Based on the continual business strategy of "core commerce platforms undertaken successively in the first half of
market of a large scale" for e-commerce standard express the year. In particular, the Company joined hands with a
products, the Company adjusted the pricing strategy for items domestic leading short video platform to rapidly lay out the
with different kilograms, optimized the structure of the parcel online supermarket fulfillment network, with a total of 70% of
type; implemented cyclical promotion of products filling the its national warehousing business undertaken by the first half of
empty space to customers for individual streams of delivery by the year, and a timely delivery rate reaching more than 99%
taking into account the empty space resources of the lines. By and the next-day arrival orders reaching more than 97% for the
doing so, the Company can enlarge the scale of the parcel newly commissioned warehousing project right after it was
volume, improve the transportation loading rate and maximize launched. In addition, for the problem arising from insufficient
the promotion of line straightening to give full play to the production capacity and inability to produce and fulfill in a
marginal cost-effectiveness. Secondly, the Company tried to timely manner due to the surge in sales volume after the launch
strategically focus on the market of e-commerce micro-pieces, of Smoked Plum Juice prescription for the internet business of
and explored the customers in this segment with more suitable a Chinese medicine hospital, the Company responded to
pricing strategies and lower-cost operation modes, realizing the customer demands and developed solutions within 24 hours,
business seizure of e-commerce parcels of the traditionally completed the opening of warehouse and delivery within 2 days,
profitable sub-categories. with a daily peak processing of up to 260,000 orders, and then
ultimately quickly satisfied the fulfillment of over 2.5 million
historical backlog of orders by connecting with the factory in a
S.F. Holding Co., Ltd. 2024 Interim Report
timely manner for delivery and promptly solved the customer's different service types, namely "warehousing and distribution
pain points, thus fully demonstrating the professional integration", "pure warehousing without distribution" and "pure
experience and efficient fulfillment ability of the Company in distribution without warehousing", to continuously penetrate
the integrated warehousing and distribution services. into the warehousing and distribution scenarios of the
customers, thereby continuously increasing the share of its
Additionally, the Company formulated targeted
integrated warehousing and distribution business.
expansion strategies around the customer bases using three
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅲ) Freight consolidated and attracting volume shipment" to reduce transit
times and further shorten overall delivery durations while
In the first half of 2024, the Company's freight
lowering transportation costs, thereby continuously expanding
business achieved a tax-exclusive operating income of
our competitive edge.
RMB17.55 billion, representing a year-on-year increase of
16.1%. ⑵ Building a high-quality LTL logistics network to
support industrial manufacturing and foster new growth
In the first half of 2024, the domestic economy maintained
drivers: As the sales channels for commerce flatten, and the
steady growth, with freight market demand continuing to
market for large-volume LTL shipments becomes fragmented
recover and gradually expand. Alongside the upgrade of new
alongside the emergence of new industries and manufacturing
strategic industries, the high-tech manufacturing sector is
dynamics, SF Express continued to optimize its operation
actively moving towards intelligent and high-end development.
model and resource allocation, build a high-quality LTL
Policies promoting consumption, such as trade-in programs,
logistics network that meets the demands for large-volume
have effectively stimulated consumption potential in markets
shipments, minimal transit, and low costs in the manufacturing
like home appliances and furniture. In the face of a complex
sector, aiming to expand into the industrial large parcel market,
competitive landscape, SF's freight business consistently
catering to production customers who prefer stability and cost-
adheres to a customer-centric philosophy, offering leading
effectiveness. Leveraging professional and reliable services, we
high-quality products and services that promote continuous
deeply cultivated over 24,000 industrial parks across 332 cities
improvement in business scale, operation efficiency, customer
in the first half of 2024, serving 410,000 manufacturing
reputation, and recommendation rate. In the first half of 2024,
customers from the business end, up from 290,000, winning the
the cargo volume of the Company's direct-operated and
trust of more customers. The freight volume for large parcel in
franchise networks both achieved a 24% year-on-year
industrial zones grew over 30% year-over-year, with LTL
increase. The daily LTL cargo peak volume of the direct-
volume increased 59% year-on-year. Revenue from high-end
operated network exceeded 63,000 tons, and the daily peak
manufacturing industries like new energy vehicles surged over
LTL cargo peak volume of the franchise network exceeded
40% year-on-year, while revenue from the communications and
31,000 tons. The overall business scale maintained an
high-tech sector grew more than 20% year-on-year.
absolute leading position in the industry.
⑶ Ongoing cost reduction as the foundation for
⑴ Commitment to professional excellence, iterating
enhanced market competitiveness: In the first half of 2024,
and upgrading capabilities, and maintaining a leading edge
the operating costs for large parcels decreased by 6.1% year-
in timeliness: The Company has developed specialized
on-year. The reduction was primarily driven by strategies
logistics solutions across various sectors, including home
aimed at "improving resource utilization and lowering
appliances, automotive, and high-end electronic materials.
procurement costs," which are reflected in the following
These solutions include integrated services for large parcel
measures: ①Labour costs: We reduced personnel requirements
warehousing and distribution, professional plans for reducing
through initiatives such as "continuous investment in
damage through reusable packaging, logistics support for
automation, system-assisted precise scheduling, and
automotive parts, and end-to-end operation assurance for high-
interdepartmental resource sharing". Additionally, we
end electronic materials. Timeliness and stability are core
implemented an adjusted compensation model that incentivizes
competitive advantages for SF Express, with the average
higher productivity, resulting in a 13% year-on-year increase in
delivery time for express products reduced to 39.3 hours in the
freight collection and delivery efficiency, and a 11% year-on-
first half of 2024. Our strategy focuses on "streamlining mid- to
year increase in transfer efficiency. ②Transportation costs: By
long-haul routes while maintaining flexibility for short-haul
"optimizing resource utilization through multi-network
routes," employing structural methods under "sufficient,
S.F. Holding Co., Ltd. 2024 Interim Report
integration, promoting larger vehicles to reduce transport trips, operating model. Under the direct system, SF Express offers
and reducing procurement transportation costs", we achieved a mid-to high-end services, while under the franchise system, SX
4.7% increase in loading rates for line-haul route while Freight, provides cost-effective solutions. SX Freight has
lowering transportation costs per ton-kilometer year-on-year. maintained steady business growth, securing a top-three market
③Facility costs: We "revitalized unused space, negotiated rent share in the franchise express sector.
reductions, and optimized site integration", leading to a year-
Network integration to reduce costs and increase
on-year decrease in rental per ton for large parcels distribution
efficiency: SX Freight now operates 15,700 outlets, achieving
networks and transfer stations.
a 99.7% coverage rate in towns and villages, a 2.9% increase
⑷ Strengthening network integration to leverage scale compared to December 2023. The Company has strengthened
effects, complementing direct and franchise networks. resource integration between its direct and franchise networks,
Business integration increases market share while resource further reducing costs and enhancing efficiency. The
integration reduces costs. collaboration between SX Freight and the direct network has
not only expanded shipment volumes but also continuously
Business integration to meet diverse market demands:
improved operation efficiency, enabling us to deliver high-
SF Express has consistently provided a diverse comprehensive
quality logistics services in partnership with our franchisees
logistics services for large parcels through a "dual brand"
and customers, ultimately achieving mutual growth and success.
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅳ) Cold chain and pharmaceutical logistics channels, and logistics ecosystem. Through brand launch
events, collaborations with over 120 media outlets, and the
In the first half of 2024, the Company's cold chain and
release of high-quality video stories on major short video and
pharmaceutical logistics service achieved a tax-exclusive
social media platforms, the Company achieved over 50 million
revenue of RMB5.06 billion, representing a year-on-year
impressions, enhancing the communication effectiveness and
decrease of 5.2%. The decrease was primarily due to adverse
promotion capabilities of agricultural brands. Meanwhile, the
weather conditions, such as frost and continuous rainfall in
Company connected various resources and actively explored
South China, which led to a significant reduction in the
new forms of e-commerce livestreaming to support farmers,
production of seasonal fruits this year, thereby impacting the
creating one-stop marketing solutions for regional specialties
growth of fresh and seasonal food logistics.
such as Yangshan peaches, Yantai cherries, and Xianju red
According to the China Federation of Logistics and bayberry, facilitating agricultural industry upgrading and
Purchasing., the cold chain logistics market in China reached sustained growth.
RMB277.9 billion in the first half of 2024, growing by
②Lean operations and services: The Company
approximately 3.4% year-on-year. While overall growth
integrated its own dedicated aircraft, cold chain, warehousing
remained stable, the rate of increase slowed down. On the
resources, and other external cooperative resources. Based on
market demand, growth in fresh and seasonal food e-commerce
the value and time-sensitivity requirements of different
decelerated, restaurant chains accelerated their expansion into
agricultural products, it adopted a refined stratified and
lower-tier cities and counties, and large supermarket enterprises
divergent strategy, supplemented by the construction of cross-
optimized their store layouts, generally pursuing stable
regional agricultural product distribution centers, accelerating
operations. The Company leveraged resource integration
order circulation and overall logistics efficiency. At the same
between its cold chain and express delivery networks to extend
time, the Company continuously reduced operation costs
its cold chain network at lower costs, ensuring business
through measures such as using larger vehicles for
expansion while maintaining reasonable profit levels for the
transportation, optimizing transfer strategies to streamline line-
cold chain business.
haul route, and fully utilizing empty warehouse resources. This
(1) Fresh and Seasonal Food Logistics Services allowed the Company to provide higher value-for-money
services to farmers and merchants, effectively enhancing
In the first half of 2024, the Company continued to deepen
service competitiveness and achieving business growth.
its development in the upstream and downstream of the
agricultural product industry chain. On the marketing side, the ③ Expanding cross-border import and export of fresh
Company assisted in brand building and channel matchmaking. and seasonal food: Leveraging the advantages of its all-cargo
On the service side, through technology empowerment and lean aircraft resources, the Company continued to expand fruit and
operations, the Company expanded its coverage of production seafood import businesses from Southeast Asia and the
areas horizontally and developed niche categories vertically, Americas. In the first half of 2024, a large-scale warehouse
solidifying its leading position in the fresh and seasonal food project jointly built with a fresh produce supply chain partner
logistics market. Currently, the Company's agricultural product for Southeast Asian fruit imports officially commenced
distribution service network covers over 2,700 county-level operations. This project provides services such as cross-border
cities nationwide and 226 categories covering more than 5,500 cold chain transportation, warehousing, pre-processing, and
types of specialty agricultural products. logistics, jointly creating an efficient, convenient, and safe
supply chain system for Southeast Asian imported fruits.
①Brand building and production-sales matchmaking:
Additionally, the Company continued to support the overseas
The Company closely cooperated with local governments,
expansion of high-end Chinese fruit brands, focusing on
industry associations, and leading brands. In the first half of
European routes to meet fresh and seasonal food cross-border
2024, it jointly built 35 regional agricultural product brands,
B2C demands with high-efficiency international express
constructing a "five-in-one" system integrating agricultural
services, achieving a doubling of business volume in export of
industry with brand building, digital empowerment, marketing
S.F. Holding Co., Ltd. 2024 Interim Report
fresh and seasonal food. new ice cream contracts.
(2) Food Cold Chain Logistics Services ③ Establishing industry benchmarks: SF Cold Chain
has topped the list of Top 100 Cold Chain Logistics Enterprises
Domestic cold chain market price competition intensified,
in China*（中国冷链物流百强企业） for six years in a row,
highlighting the phenomenon of "increased volume without
participating in the formulation and revision of multiple
increased revenue" among industry participants. The Company
national industry standards, continuously refining various
focused on food cold chain B2C integrated warehousing and
professional service standards to set benchmarks in cold chain
distribution, and B2B LTL businesses. While maintaining
services. In fresh and seasonal food e-commerce delivery
leading high-quality and differentiated services, it continuously
scenarios in Beijing and Shanghai, the Company piloted the use
reduced costs, enhancing service value-for-money and
of new decomposable and recyclable materials for packaging,
competitiveness. In the first half of 2024, the Company's food
replacing traditional white foam boxes, and established a
cold chain logistics business achieved growth exceeding
sustainable packaging recycling system, promoting the green
industry levels.
development of cold chain logistics.
① Strengthening the cold chain network: In terms of
(3) Pharmaceutical Logistics Services
warehousing network, the Company optimized existing cold
chain sites, integrating external cloud warehouses and Despite a decline in the overall pharmaceutical logistics
cooperative warehouses through an asset-light model to reduce market due to the waning of previous benefits and the
fixed cost expenditures. It also upgraded automated equipment expansion of centralized drug procurement policies, the end-
and implemented intelligent production processes to effectively market retail for pharmaceuticals continues to grow, driven by
improve in-warehouse production efficiency. For the aging demographics and increased health awareness among
transportation network, the Company optimized its cold chain residents. The Company has achieved above-industry growth
backbone network by jointly building, sharing, centrally by enhancing its cold chain temperature control services and
procuring, and dispatching its own and outsourced cold chain developing end-to-end pharmaceutical supply chain solutions,
transportation resources at the group level, improving vehicle thereby solidifying its service foundation and expanding
loading rates and reducing transportation costs. For the service scenarios.
distribution network, by utilizing express network and
①Enhancing service quality: The Company invested in
Shunxinhui’s terminal resources, combined with the use of
specialized equipment such as temperature-controlled boxes,
temperature-controlled containers, the cold chain network
constant temperature cabins, and dual-temperature vehicles
further expanded into lower-tier markets. In the first half of
("refrigeration + normal temperature"), and integrated express
2024, the number of cities with newly launched door-to-door
network resources for flexible operations. This effectively
delivery services for cold chain LTL increased by 27%
increased the number of temperature-controlled pharmaceutical
compared to the end of 2023.
transportation routes and departures, expanded the coverage of
② Expanding business growth: SF Cold Chain focused the pharmaceutical temperature control service network,
on B2C integrated warehousing and distribution, B2B improved service timeliness by 1-2 days, and reduced the per-
temperature-controlled LTL, and restaurant delivery. The kilogram cost of temperature-controlled LTL products. This
Company targeted brand food enterprises with online and model helped the Company maintain marginal cost benefits
offline omni-channel sales, food processing enterprises while winning customers with more competitive pricing.
primarily operating through offline channels, and restaurant
②Expanding service scenarios: The Company
chains, intensified efforts in business development and
strengthened its pharmaceutical supply chain solution
customer acquisition. Notably, by iterating and refining SOPs
capabilities to explore new business opportunities. In the
and packaging solutions specifically for the ice cream industry,
vaccine sector, it partnered with leading enterprises to establish
the Company successfully replicated benchmark cases,
industry standards for reverse logistics of vaccines, expanded
resulting in a year-on-year revenue increase of over 100% for
storage and transportation services for Class II vaccines, and
S.F. Holding Co., Ltd. 2024 Interim Report
consolidated its leading position in the vaccine logistics market. temperature-controlled transportation in hospital settings, and
In the CRO (Clinical Research Organization) sector, the expanding cooperation with more hospitals. Additionally, by
Company explored new models, accumulating storage and seizing opportunities from pharmaceutical industry reforms, the
transportation capabilities for high-precision pharmaceutical Company collaborated with pharmaceutical distribution
products under research by CROs. In hospital scenarios, the enterprises for warehousing and operations, expanded logistics
Company focused on building and enhancing professional business with foreign pharmaceutical companies, and partnered
capabilities, providing specialized training and certification for with chain pharmacies for the terminal delivery of insured
couriers serving hospitals, establishing benchmark cases for drugs, driving new growth in pharmaceutical logistics business.
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅳ) Intra-city on-demand delivery in the order volume and revenue of this service. Through
intensified collaboration with external channels and a variety of
In the first half of 2024, the Company's intra-city on-
ways such as platform collaboration campaigns, both customer
demand delivery business achieved operating revenue
acquisition efficiency and new user conversion rates are
excluding tax of RMB3.96 billion, with a year-on-year
enhanced. Through the refined user operations and optimising
growth of 18.5%.
the membership system, the retention and repurchase rates of
As the largest third-party on-demand delivery service existing customers were promoted, and the consumers’ mindset
platform in China, SF Intra-city provides customers with high- that “SF Intra-city, the first choice for urgent delivery of
quality, efficient and comprehensive third-party on-demand valuable items” was strengthened. The scale of annual active
delivery services by relying on in-depth industry insights of the consumers continues to expand, and in the past 12 months as of
local lifestyle services,nationwide flexible delivery network the end of June 2024, the scale of active consumers exceeded
and continuous innovation of digital intelligence capabilities. 21.9 million.
During the Reporting Period, the revenue scale of intra-city on-
(2) Technology empowerment and refined operations
demand delivery business continued to expand, technological
helped reduce costs and increase efficiency
advancements and lean management drove the improvement of
operation quality and efficiency,maintaining gross profit SF Intra-city is committed to promoting digital operations
margins and expense ratios at healthy level, driving the and intelligent decision-making in all aspects of the business.
continuous growth of net profit. The City Logistics System (“CLS”) covers three core functions,
including intelligent business planning and marketing
(1) Multi-pillar founded drivers achieved healthy and
management, integrated rider dispatch and intelligent order
high-quality development of revenue
distribution, and intelligent operational optimisation, realising
For merchants, SF Intra-city insists on strengthening and the collaborative response of core processes and optimally
consolidating its customer service advantages, helping brand matching orders with riders in different industries, scenarios
merchants to expand the scope of delivery services in the and complex delivery networks.
process of store expansion and online operation, and helping
For riders, the system fully considers the availability and
them to achieve cost reduction and efficiency increase in
convenience of riders’ delivery time and routes. In the context
respect of performance. The cooperation share with top-tier
of rider safety, we optimise the rationality of rider dispatch and
customers continues to increase. While maintaining the leading
route planning to help riders effectively increase productivity
share, the new cooperative stores exceeded 6,000 during the
and personal income. The system also enhances rider
Reporting Period. It maintains close cooperation with
experiences in combination with rider incentive systems,
customers of various e-commerce platforms, actively explores
considering rider delivery experiences, adverse weather
new business models in local lifestyle services, and fully meets
conditions, night shifts, and peak times, offering personalised
the needs of home delivery business on the platform. In the first
dispatch to provide technological backing of the Company.
half of this year, the annual active merchants of SF Intra-city
reached 550,000, representing a year-on-year growth of 45%. At the same time, combined with the Company’s
commercial application of unmanned delivery technology and
For individual consumers, SF Intra-city is committed to
centering on the last-mile delivery business, it explores the
offering industry-leading and professional delivery services.
operation mode of unmanned vehicles delivery among transit
"Deliver for Me, Fetch for Me, Purchase for Me,and Solve for
hubs and local delivery outlets, which is expected to become an
Me" services fully cover personal work and life scenarios. In
effective supplement to the existing rider network in the future
the first half of this year, SF Intra-city further strengthened its
and promote efficiency improvement.
service capabilities in central business districts and office areas
to create industry service standards for high-end business (3) Solidifying the capacity, and comprehensively
customers. By expanding the coverage distance of intra-city improving the service coverage of the multi-scenario and
"hourly delivery (小時達)"services, it achieved strong growth flexible network
S.F. Holding Co., Ltd. 2024 Interim Report
In terms of scenario coverage, SF Intra-city has conditions were narrowed to less than one and three percentage
continuously expanded the local life service field by relying on points respectively. The average delivery time of orders within
the multi-scenario capability, and continuously optimised 3km was 22 minutes.
products and services around key categories. In the first half of
In terms of geographical coverage, SF Intra-city continues
this year, the delivery revenue from [tea and beverages]
to strengthen the construction of on-demand delivery networks
increased by 60% from the corresponding period of the
and service capability in lower-tier markets, and provides more
previous year, and the delivery revenue from [supermarkets and
convenient on-demand delivery services for differentiated local
convenience stores, cakes and bakeries, pharmaceuticals and
lifestyle scenarios in counties. During the Reporting Period, SF
cosmetics] and other categories increased by high double-digit
Intra-city on-demand delivery covered more than 1,200
from the corresponding period of the previous year.
counties throughout the country, reaching a county coverage
In terms of business districts coverage, SF Intra-city has rate of 68%, and the county revenue scale increased by 51%
strengthened operational efficiency in business districts around year-on-year.
the stores of our top customers, effectively solving pain points
In addition, SF Intra-city works closely with other
such as peak order overload, excessively long waiting times for
business segments of the Group to create an efficient supply
meals, and idle personnel during off-peak hours, and the
chain solution of "warehousing + transport + intra-city on-
number of profitable business districts increased and the
demand delivery" for customers, giving full play to the
fulfillment process maintained steady. The fluctuations in the
advantages of SF Intra-city's rapid delivery, and helping the
fulfillment in-time rate during holidays and bad weather
Group expand customer base and enhance customer stickiness.
S.F. Holding Co., Ltd. 2024 Interim Report
Ⅵ）Supply chain and international business
In the first half of 2024, the Company registered tax- day delivery fulfillment rate from China to Singapore. The
exclusive revenue of RMB31.20 billion from the supply Company continuously optimized its layout of local express
chain and international business, representing a year-on- network in Thailand, empowered the improvement of
year increase of 8.1%, which was benefitted from the management standardization and efficiency and the
recovery of the international air and sea freight demand and the enhancement of express service timeliness with technologies,
increase in freight rate, and the sound business growth achieved and at the same time, expanded the area of customs clearance
as Company seized the opportunities from Chinese enterprises’ handling sites to enhance its cross-border business capacity in
overseas production capacity expansion, international brand Thailand. The Company increased the number of self-operated
recognition enhancement and cross-border e-commerce service outlets in the Asian region, and realized entire self-
development by deepening business integration and operation in core cities of Southeast Asian countries, Japan and
continuously extending supply chains and international markets. South Korea, while deepening cooperation with local express
logistics enterprises in the European and Americas regions with
⑴ Consolidating international networks:
an aim to develop a stable local delivery performance.
① Route lay-out: In response to the business situation,
⑵ Expanding supply chain and international business:
the Company continued to exploit new routes and increase the
flight frequency of routes, in which new routes and flights from ① International express:
the Asian region to some countries in South Asia were added
a. Overseas expansion. Driven by the cross-border e-
and encrypted, while for major countries in Southeast Asia,
commerce business of domestic e-commerce platforms, the
deploying the 747 and 767 large aircraft to fly individual flights
demand for export logistics remains strong. However, at the
to Singapore and Kuala Lumpur on the basis of maintaining 5-7
same time, the industry witnessed the platforms’ shift to a semi-
flights per week, to expand the resources of air cargo space; the
trusted model and the increased demands for cost-effective
addition of new international routes in the European region
logistics services. The Company is committed to providing
departing from domestic cities to Hungary and increasing the
differentiated high-quality services, focusing on medium- and
flight frequency of international routes from domestic cities to
high-end demands, and relying on the capability of its self-
Liège, Belgium, to 4 flights per week; the addition of new
operated network in the Asian region, to provide e-commerce
international routes in the Americas region departing from
platform customers with cross-border door-to-door next-day
domestic cities to Chicago and constantly increasing flight
delivery in certain countries in Southeast Asia, with a next-day
frequency to New York, Los Angeles and other cities to 4-6
delivery rate of more than 90%. The efficient fulfillment aids
flights per week by utilizing internal and external resources.
the platforms in reducing the rate of consumer returns and
②Strengthening customs clearance capabilities: As of the
increasing the rate of repeat purchase and adhesiveness.
end of the reporting period, the Company offered self-operated
and agent customs clearance services at 71 ports worldwide, b. Import to China. We are making a strong effort to
with 9 AEO advanced certification licenses recognized expand the market for local specialties such as fruits and fresh
domestically, and focused on the Asian and Americas regions to produce, jewelry and accessories in Southeast Asian countries,
strengthen the self-operated customs clearance service capacity. and the cross-border logistics scenarios, such as shopping with
The Company’s overseas self-operated customs clearance express delivery, for travelers, with an aim to boost the
service permeated into 14 ports, to further improve the business volume of shipments returning from Southeast Asia.
efficiency of the Company’s customs clearance for express The Company, fully utilizing its advantages of cross-border
cargo. ③ Strengthening local capacity building overseas: end-to-end capabilities, adopts the consolidated loading and
The Company invested in an airside site in Singapore to transshipment mode for local bulk cargo to be loaded in a
accelerate customs clearance and transit in Southeast Asia, consolidated mode and air transported as a whole, and we then
further enhanced the Company’s cross-border next-day delivery unload and split the order after air transport to mainland China
capability, bringing in a 20% year-on-year increase in the next- and then distribute to the customers, enabling the Southeast
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S.F. Holding Co., Ltd. 2024 Interim Report
Asian fruits to be directly shipped from the country of origin to for customers, successfully transforming challenges into
the domestic consumers within 48 hours. It addresses the opportunities in a volatile market environment. In the first half
shortcomings of traditional land and sea freight, which involves of 2024, revenue from international freight and freight
the long chain, the long cycle and the ripening process that lead forwarding business experienced double-digit growth. The sea
to the subpar taste of fruits, and aids in the delivery of e- freight business maintained its leading position among non-
commerce live orders of Southeast Asian fresh fruits on B2C vessel operating carriers in terms of cargo volume on major
platforms. In the case of the Thai durian project, for example, trade routes in Asia. At the same time, the positive impact of
the cargo volume has grown rapidly since the model was rising sea freight rates is anticipated to reflect in the second half
implemented, boosting the load rate of all-cargo aircraft of 2024. Benefiting from robust demand in cross-border e-
returning from Bangkok, Thailand, by approximately 40 commerce, the air freight business achieved stable cargo
percentage points. In addition, a large international volume during the traditional off-peak season. The Company
convenience store chain group in Thailand has collaborated has also strengthened cross-selling between domestic and
with the Company, enabling consumers to place an order at its overseas teams, capitalizing on the advantages of the Ezhou
over 10,000 stores in Thailand and have it picked up and hub to launch more trans-Pacific air freight routes, thereby
delivered to their homes, including the delivery of Chinese capturing the growing market demand.
tourists’ purchases back to their country. On the one hand, the
③Supply chain:
cooperation expands the Company’s business volume, and, on
the other hand, integrating the SF brand into the daily lives of In the context of promoting the development of new
Thai residents and tourists through customer channels to quality productive forces and industrial upgrading, more and
increase our brand awareness. more customers attached importance to supply chain efficiency.
Relying on the rich product matrix and excellent logistics
c. For other regions. The end-to-end standard express
solution capability, the Company has served customers in a
products in the European region are experiencing rapid growth,
wide spectrum of industries including production and
at the same time, the European export flow deepens business
manufacturing and lifestyle consumption, and penetrated into
cooperation with international large-scale e-commerce platform
the whole chain of procurement, production, distribution,
customers, offering customers with cross-border transportation
retailing and after-sales, including, without limitation, finished
services from Europe to China, Mexico, Turkey and other
product warehousing and distribution, and at the same time
destinations. In the Americas region, it has shortened the end-
covering both domestic and international markets. Based on the
to-end distribution routes and achieved cost reduction and
complete end-to-end service chain, the breadth and depth of
efficiency improvement by upgrading its self-operated customs
supply chain insights, and the advanced technology, the
clearance capacity and local air-land link-up and transshipment
Company was able to deeply understand the pain points and
capacity.
demands of customers, helped customers plan the supply chain
②International freight forwarding: holistically, and reshaped and optimized the overall layout by
creating professional technology solutions, ultimately
In the first half of 2024, the global economy showed
improving the efficiency of the customers' supply chain and
signs of recovery after three consecutive years of slowdown,
effectively reducing costs. Compared with the domestic service
although growth momentum remains relatively weak. The
providers, the industries served by SF were more
persistence of geopolitical conflicts, port congestion, the
comprehensive with more complete chain and more
booming cross-border e-commerce, and early loading of
professional technical solutions; compared with the
imported goods by shippers ahead of the peak season,
international service providers, SF's supply chain solutions
contributed to a significant increase in international sea and air
were more in line with the latest needs of the customers,
freight prices in late second quarter.
featuring faster response speed, stronger innovation ability and
Leveraging a resilient network and flexible capabilities, higher price performance
the Company has tailored cost-effective and adaptable solutions
With a focus on the strategic direction of “The One In
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S.F. Holding Co., Ltd. 2024 Interim Report
Asia”, the Company fully capitalizes on the supply chain cooperation. In the cross-border field, since the first successful
service capabilities of Fenghao Supply Chain, Shunxinhui and collaboration on the air export transportation project of large-
Kerry Logistics in both domestic and Asian regions, grasps the scale power lithium batteries at the end of last year, the two
major trend of Chinese enterprises’ overseas production parties engaged in more in-depth business negotiations and
capacity expansion and international brand recognition cooperation in the field of international supply chain this year.
enhancement, builds an efficient and reliable international In the first half of 2024, the Company achieved a 170% year-
supply chain for the customers, and realizes business on-year increase in revenue from logistics business for services
breakthroughs from 0 to 1 to N in various countries, industries provided to this customer.
and service scenarios. In the first half of this year, the Company
With rich international all-cargo aircraft resources,
successfully won the bids for over 40 cross-border supply chain
customs clearance and solution capabilities, the Company has
cooperation projects.
assisted customers in completing cross-border transportation
The projects covered leading customers in multiple tasks for large-scale precision equipment imported from
industries such as e-commerce and movement, industrial Singapore, Japan and other places. With the official
manufacturing, high technologies, apparel, shoes and hats, commissioning of the customers’ factory in Thailand, the two
furniture and appliances, automobiles, and coffee and tea parties have fully discussed on more scenarios of cooperation
chains, with service coverage in Singapore, Malaysia, Vietnam, regarding the customer's subsequent demand for more ancillary
Thailand, South Korea, the Philippines and other countries. The supply chain services in overseas production, including the
business scenarios include air transportation of precision solutions for sea transportation from domestic ports to Thai
instruments, sea transportation of new energy materials and ports, transportation of large core parts from domestic
equipment warehousing, e-commerce cross-border production bases to Suvarnabhumi Airport, handling of
warehousing and distribution integration, local logistics for temporary demand for urgent shipments, cross-border ground
automobile spare parts, and overseas local distribution of shipping and local in-factory logistics services, which
various finished products, etc. We have made key suggested great business opportunities in the future.
breakthroughs in supporting Chinese enterprises’ overseas
production capacity expansion and international brand
recognition enhancement, and obtained extensive experience in Case study: assisting in enhancing international brand
supply chain solutions, which lays a solid foundation for the recognition
subsequent replication and promotion of relevant solutions to
The Company has cooperated with a well-known Chinese
customers from more industries.
coffee franchise brand for many years, undertaking
approximately 60% of its temperature-controlled warehouse of
food raw materials and cold-chain delivery to stores, as well as
Case study: assisting in expanding production
immediate delivery services for store takeaways in China, to
capacity overseas
support the rapid expansion and business development of its
In recent years, China’s new energy vehicle export sector domestic stores. As customers have started to expand into the
has shown a strong growth, and new energy vehicle enterprises Southeast Asian market in the past two years, the Company has
have set up production bases and supply chains overseas to customized a complete set of solutions for its supply chains
enhance brand influence and market share. In cooperation with going overseas and local services from 0 to 1. In the domestic
a leading Chinese new energy vehicle manufacturer, the delivery, the Company coordinates suppliers to classify store
Company has gradually expanded its business engagement in equipment, packages, utensils and other general equipment, as
China from express delivery to after-sales spare parts well as room temperature food and frozen food and other goods
transportation and FDC warehouse hosting, and further to the that need to be inspected, and transport to CDC in Shenzhen;
upstream of the supply chain, such as procurement logistics, according to the classification of goods for customs clearance,
production logistics and other aspects of integrated logistics taking short barges into the port of bonded warehouses, and
39
S.F. Holding Co., Ltd. 2024 Interim Report
then loaded with containers to be sent to the overseas timeliness can be achieved during customs clearance and
destinations through sea shipping. In the overseas local delivery, distribution replenishment processes, with no abnormalities in
after the customs clearance is finished and the containers are delivery throughout the year. The Company has fully replicated
picked up, they will be transported to the Company’s overseas its domestic efficient supply chain capabilities overseas to
local warehouse and delivered to customers’ overseas stores on assist customers in rapid expansion. In the future, as customers
demand ultimately. plan to open more stores, the Company is expected to engage in
supply chain business cooperation with more Southeast Asian
As of the first half of this year, the Company has
countries. In addition, more and more Chinese tea brands are
successfully assisted customers in opening and operating over
going overseas, which is benefitted from the cross-border
30 stores in Singapore. During the implementation period of
supply chain solutions and experience gained by the Company.
the project, urgent orders were 100% fulfilled. A T+0
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Operation Optimization maximize site resource efficiency. Functionally, sorting
centers set up dedicated collection areas to accept customers’
Committed to the equilibrium of quality, time
direct parcel dispatching to the sites, which boosted
efficiency and cost, the Company promoted the network base
efficiency, saved costs for customers, and eliminated the
development in 2024, while further advancing the evolution
transit process and cost as the capability covered couriers in
of operation model, strengthening network integration and
vicinity and enabled them to dispatch the parcels directly to
applying a lean approach to resource management, thereby
the sites. In addition, the Company consolidated site
maximizing the operation efficiency and economic benefit of
integration on holidays. When the business was in the trough
each link of transit, transportation and terminal collection
on holidays, the sorting centers for small parcels were
and dispatching and reducing the cost of each parcel.
utilized intensively for the operation of large parcels, and the
I) Transit Company had more sites integrated and suspended
temporarily on weekends, holidays or off-peak seasons on
By promoting the business mindset in the practice of
the basis of maintaining a certain number of sorting centers
sorting centers and improving the site resource efficiency
for large parcels for temporary business suspension on
through fully developing the advantages of sorting centers,
Chinese New Year and May Day Holiday, so as to reduce the
the Company further advanced the evolution of operation
manpower for operation of sorting centers and the input of
model.
line-haul and short-haul transportation capacity and to
(1) New Achievement in Model Evolution: The achieve higher operation efficiency. In the first half of 2024,
Company persistently refined the operation model of “direct the capacity utilization of sorting centers for small parcels
sorting at sorting centers + container freight delivered improved by approximately 6 percentage points, which was
directly to customer-facing terminal stations” to further conducive to the further reduction of transit cost per
develop the strong functions of sorting centers and shipment.
streamline the operation procedures of terminals.
(3) Enhanced Transit Capacity: In alignment with
Additionally, the Company extended the container evolution
operational goals and business requirements, the Company
to the end-to-end link and made a record-breaking
invested in automation equipment and upgraded process
achievement in building a transit hub of container freight for
design in a strategic and well-planned way for higher transit
the line-haul transportation, complemented by the
efficiency and capacity. In the first half of 2024, the
deployment of AGV technology to achieve fully automated
Company deployed over 100 sets of automation equipment,
sorting. Such a model could improve the transit efficiency,
which included the introduction of automated packaging
minimize the damage rate and raise the loading rate of transit
equipment, to further consolidate the automation degree,
lines.
thus improving the small-parcel transit efficiency by 10%
(2) Improvement of Operation Efficiency: The and the large-parcel transit efficiency by 11%. In the
Company devoted efforts to transform the sorting centers meantime, the Company broke through the traditional
from cost centers to business hubs and fully develop the standardized design of sorting centers and tailored the
potential of sorting centers with an aim of improving process and equipment layout to the specific types and
resource efficiency. Temporally, sorting centers offered structures of parcels handled by different regions, so as to
settlement incentives to each business fronts in off-peak better meet the express delivery requirements, lower the
hours in the day, to encourage the customer-facing front end damage rate and improve the service quality. Looking ahead,
to collect and dispatch the parcels to sorting centers as early the Company will reduce the number of operation sites
as possible, so as to improve the capacity utilization and within urban areas and strengthen the capacity of single
spread the fixed cost. Spatially, the Company explored the operation site by taking the integration and construction of
greatest potential for tridimensional capacity expansion for multi-functional large centers with sorting and storage
sorting centers by integrating the storage capability, to capabilities for small and large parcels as the development
achieve “upper-layer warehouse, lower-layer transit” to direction, thus driving the further achievement of route
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S.F. Holding Co., Ltd. 2024 Interim Report
optimization and streamlining the backbone network. temperature functions of frozen, cold and room temperature
storage for food and adopting constant temperature
II) Transportation
containers such as temperature-controlled boxes and
With streamlining the backbone network as the priority, compartments in express delivery routes.
the Company adjusted the transportation model and the route
(3) Resource Management: The Company
planning to achieve optimal consolidated shipment deliveries
continuously refined the structure of ground transportation
and streamlined routing, and strongly controlled the price of
and enlarged the proportion of transport resources with long-
transport resources to further lower the cost per capacity
term cooperation and stable pricing to consolidate the
parcel.
resource and price stability, and the line-haul routes
(1) Adjustment of Transportation Model: Breaking undertaken by stable transport resources (including self-
through the traditional parcel flow model based on operated capacity and annual contracts) accounted for over
administrative boundaries, the Company adjusted the 90% in the first half of 2024. Following the standardized
transportation model across the entire network by the pricing for short-haul routes, the Company focused on the
guiding principle of “optimal routing and least time line-haul routes (50-500KM) of core city clusters within the
consumption”; consolidated shipment deliveries, expanded economic circles of the Pearl River Delta, the Yangtze River
the cargo volume of each route and streamlined routing to Delta and the Beijing-Tianjin-Hebei Region and broke away
the maximum extent to minimize transit operations, with from suppliers’ control of resources and prices by
consideration of site integration and adoption of developing the standardized pricing mechanism and the FTL
consolidated shipment deliveries in line with flow directions model. Moreover, with the gradual improvement of ground
and cross-region consolidated transshipment. In the first half transport scheduling system and resource input model, the
of 2024, the Company introduced over 900 direct-delivered Company promoted the direct transport resource
line-haul routes year-on-year. management program in urban areas, under which the
system sent orders to drivers automatically, thus minimizing
(2) Consolidated Shipment after Route Integration:
the price hike and settlement risks associated with sub-
The Company promoted the regular route integration for
contracting. The model has been promoted in 53 cities in the
small-parcel and large-parcel businesses of the self-operation
first half of 2024. The Company strengthened the
network for over 700 line-haul routes, and the franchise
management of transport resource prices by improving the
model network SX Freight integrated nearly 2,000 tons of
aforesaid transport resource outsourcing mechanism, the
cargo every day to the self-operation network for
route-based cooperation model and the resource
consolidated shipment, making full use of the ground and air
management mechanism, thus reducing per kilogram cost.
transportation resources. As a result, the loading rates for
large-parcel line-haul routes improved by 4.7 percentage III) Terminal
points in the first half of 2024. For short-haul routes, the
(1) Further model evolution: The focus of the first
Company reduced the input of short-haul transportation
half of 2024 was to achieve further model development and
capacity by dispatching large-parcel dedicated vehicles to
efficiency improvement for the 3,000 outlets that had
small-parcel outlets for consolidating or distributing
completed operation model reform previously. For the
shipment, with such 160,000 times of such scheduling in the
outlets whose post-reform performance approximated their
first half of 2024, representing year-on-year increase of 50%,
performance before the initiative, more customer-facing
the loading rates for large-parcel short-haul routes improved
terminal stations were established to generate greater
by 5.0 percentage points. In addition, the Company
synergy. For the outlets whose post-reform performance did
expanded the service coverage of food and pharmaceutical
not approximate their performance before the initiative, low-
cold chain network with a low-cost model by applying
efficiency terminal stations were removed, and cost control
trucks featuring dual-temperature functions of cold and room
measures and other strategies were adopted in the transit
temperature storage for pharmaceuticals and triple-
process and the short-haul routes, so as to boost the overall
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effect of the evolution program. Moreover, hundreds of promotion incentives were sent to a large group of customers
unmanned transshipment and delivery vehicles tailored for simultaneously and promptly, thereby helping couriers to
short-haul routes with small cargo volumes were deployed in develop businesses and enhance customer adhesion.
selected cities to replace the high-cost outsourced transport Additionally, the intelligent service center for couriers
resources. In the first half of 2024, outlets that had advanced leveraging the large language model was able to respond to
model evolution witnessed 20% improvement in terms of the inquiries of couriers in respect of operations, including
damage rate, higher parcel flow efficiency and lower whether they were allowed to take the certain items
warehousing costs and short-haul transshipment labor costs, mentioned therein, which helped couriers to improve their
and relieved the work intensity of couriers accordingly to business capabilities. Currently, couriers raised 22,600
allow couriers to engage in more customer-facing services. inquiries at average through the platform every day. ②
Scoring-based Incentive: The Company introduced the
(2) Terminal Integration: The Company further
scoring system for business development to encourage
strengthened the integration of terminal resources and
couriers to explore opportunities and develop businesses. In
operation for small parcel and large parcel businesses, and
accordance with the scoring criteria and the rankings of
expanded the coverage of large-parcel terminal services by
couriers grouped by regions, the Company rewarded couriers
establishing the collaboration model for small-parcel
of top rankings with additional bonuses, motivating them to
couriers and large-parcel couriers, building integrated outlets
actively explore new businesses. ③ Captain Program: The
with capabilities of handling both small parcels and large
Company piloted the leadership program by selecting
parcels and facilitating small-parcel service outlets to
couriers with strong business capabilities and outstanding
cultivate the large-parcel operation capabilities as
leadership skills to act as the captains of specific regions,
supplement. As at the end of the first half of 2024, the
clarifying the powers, responsibilities and interests and
coverage of self-operation terminals with large-parcel
granting authorization in deploying marketing strategies, so
delivery capabilities increased to 99.6%. The large-parcel
as to lead other couriers to develop businesses in concerted
handling capabilities were also extended to township agents
efforts, cultivate the self-management pattern and stimulate
to further develop the service penetration. Moreover, the
the vitality within the organization. Captains and the teams
Company advanced the construction of integrated outlets
were offered additional incentives for their outstanding
with food and pharmaceutical cold chain capabilities for the
performance. This captain program enabled couriers to
purpose of cold-chain network expansion at low costs;
support each other, facilitated effective communication and
strongly supported the flexible collaboration between
better problem solution and contributed to business
delivery terminals and riders of SF Intra-city to fully utilize
capability improvement, fostering a virtuous cycle of healthy
the flexible resources of intra-city riders and minimize the
work environment, high satisfaction and robust business
cost of permanent staffs.
growth for couriers. Regions of the pilot program had
IV) Courier Management benefited from the policies, and revenues from retail
customers and small- and micro-sized businesses registered
As the core force, the frontline of couriers is key to the
a growth rate higher than the average levels of the relevant
Company’s market expansion and customer services. While
regions.
placing a high priority on couriers’ satisfaction and
protecting their rights and interests, the Company helped (2) Greater Satisfaction: ① New employee training:
couriers to achieve business development and income The Company remolded the standardized training procedures
growth by offering them a combined package of incentives. and the operation monitoring mechanism for new employees,
introducing collective training sessions, hands-on job
(1) Impetus to Revenue Growth: ① Technological
shadowing and ongoing performance monitoring in addition
Empowerment: Couriers had registered on the WeCom
to the existing online fundamental sessions, extending the
platform to facilitate communication with customers and
training to 14 days and the close tracking period to 180 days,
improve service experience, through which the Company’s
and assigning coaches to each new employees for guidance.
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S.F. Holding Co., Ltd. 2024 Interim Report
With the well-designed training mechanism, the Company long term. In the middle of the month, the Company sent
recorded year-on-year significant decrease in customer notifications to couriers who may possibly had low earnings
complaints for services offered by new employees in the first in the month and offered flexible incentives designed for
half of 2024 and year-on-year decline of 8.7 percentage specific hours and groups of different characteristics to help
points in turnover rate. these couriers to expand their earnings. ③ Support to
Productivity Enhancement: With further improvement of
② Support to Low-income Couriers: For couriers of
operation system and operation model and assistance of new
constant low earnings, the Company analyzed the reasons
high-efficiency collection and delivery tools, the Company
more carefully by considering the regional factors and
helped couriers to enhance productivity and relieve labor
individual capabilities, and provided targeted solutions to
intensity, thus improving the collection and delivery
address the regional issue of low earnings sustaining for a
efficiency by 6.2% in the first half of 2024.
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S.F. Holding Co., Ltd. 2024 Interim Report
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2. Business model that makes a success — self-operation, integrated logistics, independent third-party
The business model of the Company consists of three meet the demand from lower-tier markets. Through
core elements: self-operation model, integrated logistics sophisticated product stratification and organic combination
capabilities and being positioned as independent third-party, among different products, the Company is able to meet the
which equips the Company with strong logistics network diverse needs of clients, and provide complete one-stop
operation and management and control capabilities and enables integrated end-to-end logistics solutions.
it to provide high-quality, safe and reliable integrated logistics The Company has, as an independent third-party
solutions to various clients that meet the needs of various logistics service provider, established close cooperation
scenarios. relationship with a wide range of client groups, helping
The end-to-end self-operation model ensures the clients to achieve multiple-channel expansion. Among the
Company’s strong management and control over its huge leading express delivery logistics service providers in China,
logistics network and the provision of excellent services. the Company is the only player that is independent of any of
Such model enables the Company to achieve top-down the e-commerce platforms and merchants. The Company's
consistency and efficient execution of its strategies, operations independence ensures that it is able to serve a broad range of
and service standards, thus enabling the Company to rapidly clients in a fair and impartial manner, while enabling it to help
expand into new business areas on the basis of its solid express clients to operate through multiple channels, including various
delivery network and take a leading position in each market online e-commerce platforms, its own private platforms and
segment, so as to adapt to the ever-changing global macro- offline shops. The Company provides omni-channel stock-
environment and meet the diversified needs of its clients. In taking management and distribution services to its clients. It
addition, through the accumulation of operational data of the utilizes its advanced smart supply chain technologies to achieve
whole process which comprises pickup, transfer, transportation interconnection and integration of their omni-channel inventory
and delivery, the Company is able to utilize technological data, providing its clients with the best practices in supply
means to achieve digitized and intelligent logistics chain, chain planning and helping them realize costs reduction and
thereby enhancing the standardization, normalization and efficiency increase, thus enhancing the stickiness of
efficiency of the entire process of service, and maintaining cooperation. By virtue of independence and professional ability,
consistently excellent service quality. the Company has won the deep trust from its clients and
Relying on its comprehensive product system and achieved win-win development.
service capability, the Company provides integrated The services of the Company have penetrated into a wide
logistics solutions for clients in various industries. Based on variety of fields, such as industrial manufacturing, commercial
its mature and efficient express delivery network, the Company circulation, online sales of agricultural products, food and
has been developing new business horizontally and integrating pharmaceutical cold chain, local life, international trade, etc.,
excellent industry partners around the logistics ecosystem covering various aspects of social production and people’s
through “internal incubation and external mergers and livelihood. Leveraging its efficient express logistics services,
acquisitions”, gradually growing into the largest integrated sophisticated supply chain management experiences, and huge
logistics service provider in China and Asia and the fourth logistics network that has penetrated into rural counties, towns
largest one in the world in terms of scale, with its service and villages in China and extended to 97 countries and regions
offering scope covering a wide range of areas such as time- overseas, the Company actively responds to the policies of the
definite express, freight, cold chain, on-demand delivery, government on developing modern service industry and that on
supply chain, international express, etc. At the same time, the promoting the “go to the countryside, go to factories, and go
Company also vertically deepens its product matrix, and has global” campaign in express delivery industry, supports rural
launched, by sub-segments of each of its business segments, economy revitalization, promotes intelligent manufacturing and
high-quality services targeting medium- to high-end consumers industrial upgrading, and enhances its support capabilities for
through the means of combination of self-operation and international supply chain. Furthermore, the Company actively
external cooperation, as well as cost-effective services which embraces new businesses and new trends in the industry, and
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S.F. Holding Co., Ltd. 2024 Interim Report
helps its clients innovate their business models, to enhance the and protection of good life.
perception experiences of consumers, practicing the delivery
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Having the leading digital, visual and intelligent technology to promote the development of intelligent
supply chain
SF is committed to building an intelligent supply chain Case study: liquor scenario
ecosystem in the digital era and becoming a leader in the In view of the characteristics of high value and easy
intelligent supply chain. SF Technology focuses on the damage in the liquor industry and the situation of easy
digitalization of the supply chain, relying on its deep insight tampering and fake goods in the channel, the Company has
into the supply chain scenario and the practical experience of built a traceable and anti-counterfeiting logistics management
leading customers in various industries, combining with the and control system. The system has a series of scientific and
company's massive data and cutting-edge technological technological capabilities, such as liquor logistics management,
achievements, to provide excellent digitalization technology channel marketing control, digital liquor certificate, etc., to
services for the company's internal efficient operation and help liquor enterprises to deliver goods safely, while better
external customers to create the best supply chain practices. controlling the information of terminal stores' purchase, sale
and storage, so as to reduce the losses caused by channel
As of the end of the Reporting Period, SF had 4,199
tampering and fake goods. At present, it has provided various
patents and 2,535 software copyrights in force and under
digital services for more than 20 liquor brand customers.
application, of which the number of invention patents
accounted for 59.3% of the total patents. The Company actively Taking a domestic high-end liquor brand as an example,
cooperates with social institutions such as logistics and supply on the one hand, the Company provides customized
chain industry organizations and universities to enhance the warehousing and distribution services, integrated management,
social influence of SF Technology. The Company has won the mobilization of inventory collaboration among the general
2024 China Green Logistics ESG Practice Pioneer Typical Case, warehouse, sub-warehouse and supplier warehouse, to achieve
2023 CCF Big Data and Computing Intelligence Contest-Best 2B and 2C, online and offline channels of unified warehouse
Business Value Award, and included in the list of international allocation, sub-warehouse direct allocation, improve customer
organizations "World IoT Ranking List", the list of well-known order fulfillment efficiency, and effectively reduce logistics
media "Fortune Most Influential Internet of Things (IoT) costs and breakage rates. On the other hand, the Company
Innovations List" and other honorary awards. provides traceability and anti-counterfeiting services for
commodity circulation. The information of goods from
I) Leading logistics technology application helps
warehousing to signing is collected and compared by
customers to upgrade supply chain
algorithms, and stored in the block chain. In addition, the
⑴ Smart logistics products
hardware product storage management of the closed intelligent
For small and medium-sized customers, SF Technology
circulation box makes the whole process of information
uses lightweight SaaS products to penetrate into all aspects of
controllable and unalterable, which solves the problems of
their logistics services. Especially in the logistics scenarios of
goods tampering, fake goods and inconsistent arrival goods,
special seasonal fresh food, medicine, business, drinks and
and meets the needs of consumers to verify the authenticity and
other industries, many standardized scientific and technological
traceability. At present, this cooperation brings SF 100 million-
products have been accumulated to support the rapid promotion
level revenue every year.
in various segments of the industry, enhance the added value of
Case study: medical scenario
the Company's express delivery and logistics services, and
Under the background of "Internet + medical treatment",
build service competitiveness. At present, the Company has
the Company builds a standardized medical logistics service
promoted the use of dozens of technology SaaS products to
digital product system for hospitals, medical e-commerce,
serve many business scenarios for small and medium-sized
Chinese medicine stores, etc., which covers Chinese and
enterprise customers, among which the compound annual
Western medicine, medical records, physical examination
growth rate of express delivery and logistics revenue in
reports and other delivery categories, aiming to reduce the
business scenarios empowered by technology products is more
tedious process of patients waiting on the spot and coming to
than 30% from 2020 to 2023.
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S.F. Holding Co., Ltd. 2024 Interim Report
the hospital twice, and ensuring the safety and timely delivery SF Technology provides digital software and hardware
of drugs to patients, while improving the service efficiency and solutions for enterprises in urgent need of supply chain system
customer satisfaction of the hospitals. At present, such construction, supply chain digital transformation and upgrading,
technology product of SF has joined hands with hundreds of and supply chain optimization and enhancement. The product
hospitals among over 30,000 hospitals nationwide to promote includes four sets of digital solutions, namely, intelligent
the digital upgrade of pharmaceutical logistics, helping to logistics park, automatic three-dimensional warehouse,
improve the convenience and medical experience of people intelligent logistics and supply chain execution middle platform,
seeking medical advice. In the future it is expected to expand to providing customers with full-scene, full-process and
more hospitals, having a large market space. collaborative supply chain digital construction and
During the period of strong consumption demand for sour implementation services, helping customers to solve the
plum soup, the Company cooperated with the Internet hospital digitalization of the basic elements of logistics "people,
of a well-known top three Chinese medicine hospital to connect vehicles, goods and fields", and linking the basic elements to
the order, logistics and warehousing system. The system form a supply chain synergistic network. It meets the
automatically synchronize orders, automatically divert and requirements of enterprise development in terms of supply
automatically turn around waybill numbers, optimize the chain execution efficiency, collaboration ability, response
unified dispatch of multi-resources, greatly improve the efficiency and management accuracy, and lays a foundation for
management and delivery efficiency of the waybills, and enterprises to improve quality and efficiency. At present, the
effectively support the operation of over one million orders for "SF Cloud SCE" has served more than 1,700 customers in more
traditional Chinese medicine drinks during the peak period. The than 20 industries, helping customers to digitalize and upgrade
average delivery time increased by more than 40%. This case their supply chain.
provides a reference for the expansion and replication of Case study: supply chain digital
traditional Chinese medicine tea industry in various regions, Taking a leading genetic testing company as an example,
and also brings new business growth points for the Company. SF helps the customer to build a digital supply chain, enabling
the production, warehousing and logistics of sample testing,
2) Intelligent supply chain solution and realizing the standardization and transparency of supply
chain management and operation. Through the establishment of
For the leading customers in the industry, the Company
supply chain order middle platform, the upstream and
provide comprehensive digital supply chain solutions around
downstream ERP, CRM and other systems are connected in
the challenges and demands of the supply chain. With the
series to realize the automatic flow of business documents and
support of digital technology, intelligent algorithm and logistics
efficient collaboration among departments. The Company is
model, the Company creates customized industry solutions
deeply involved in promoting the digitalization of warehousing,
around the warehousing, transportation, sales and other
logistics management and fulfillment execution of customers at
scenarios of the whole process of supply chain production and
home and abroad, and assisting the unification and
marketing. At present, the Company's intelligent supply chain
standardization of entire warehousing management. At present,
services have been widely penetrated into high-end
it has been implemented in more than 30 warehouses of various
manufacturing, beauty, auto parts, home appliances, consumer
types, and has carried out in-depth digital empowerment in the
goods and many other industries, successfully accumulated
areas of supply chain settlement, customs declaration and
nearly 100 industry leading customer cases, and deeply
clearance, and international business, assisting customers to
empowered the intelligent supply chain of more than 4,000
initially complete the supply chain digitalization capability. In
customers in dozens of fields.
the future, we will continue to move forward hand in hand with
① Digital supply chain:
customers to jointly explore and iterate supply chain
Digitalize the whole process information of the supply digitalization and intelligent practices that lead the industry.
chain and realize the integration of digital-driven upstream and
downstream. The "SF Cloud SCE" software product created by
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S.F. Holding Co., Ltd. 2024 Interim Report
② Intelligent supply chain: horizontally compares the balance point between different
On the basis of digital supply chain, combined with number of warehouses and total cost, and comprehensively
digital technology, artificial intelligence, Internet of Things, considers the business development plan for the next 3-5 years,
cloud computing and other new technology capabilities, we which is expected to save millions of yuan annually for the
provide customers with warehouse network planning, supply customer's supply chain.
chain planning, inventory, transportation and packaging
management and other different links to enable them to realize Case study: intelligent middle platform
the intelligence and automation of the supply chain, and
The Company cooperates with a leading dairy enterprise
enhance the flexibility, efficiency and resilience of the supply
to build intelligent fulfillment middle platform solution for
chain. SF has created a set of "SF Cloud SCP" intelligent
customers and promote the implementation of the omni-
system to help customers make better decisions in the supply
channel business model. In view of the problems of many
chain, including warehouse network planning to support the
online and offline order channels, large fluctuations in sales
top-level design of customer supply chain strategic planning,
plans, difficulties in multi-warehouse inventory management,
building a consumer-centered supply chain system; supply
as well as the pain points of overstock, unsalable goods and
chain planning links production and marketing coordination, to
cross-selling goods, the Company has built a business middle
achieve a more optimized inventory layout of the whole
platform system with orders and inventory as the core for the
network, promote inventory turnover, improve capital
customer, and provided an integrated solution for warehousing
utilization; transportation management realizes the optimization
and distribution. The solution realizes the unified distribution
of transportation mode and route, and achieves better service
of omni-channel inventory, the flexible selection of
experience while reducing cost and increasing efficiency;
transportation mode, and the visualized operation of all-link
packaging management provides the optimal packaging scheme
orders. Ultimately, it helps customers reduce inventory days by
through operational research algorithm to achieve efficient
16%, shorten order processing time by 50%, increase order
operation and cost reduction. The technology product has
fulfillment rate by 12%, ensure product freshness, and
served dozens of leading enterprises in beauty, clothing,
successfully support the implementation of customers' new
manufacturing, food, medicine and catering industries.
sales model. In addition, the solution has been extended from
the customer's individual business unit to its entire group
Case study: warehouse network optimization business units, helping the entire group to enhance its supply
The Company provides warehouse network optimization chain elasticity and flexibility.
scheme for a large pharmaceutical group. The customer has a
huge volume, with dozens of companies and hundreds of Case study: transportation optimization
product specifications containing traditional Chinese medicine,
The Company builds an intelligent logistics management
health care products and medical devices. Its marketing
system for a customer in the field of laboratory animal services.
network is spread all over the country, due to channel changes
The transportation mode of live animals has its particularity,
and business development needs, it is proposed to re-plan the
and the customer is large in scale, with two production bases
layout of dozens of provincial warehouses across the country,
and multiple transit depots, involving multi-point delivery in
so as to realize cost reduction and efficiency enhancement
same city and cross-city transportation scenarios. The Company
while maintaining service level. Based on this background, SF
builds visual boards for the customer, so that the order,
uses data analysis technology, machine learning algorithms and
transportation and warehouse data are clearly visible, thus
operation research optimization algorithms to output a new
improving the monitoring and management capabilities. In the
national warehouse network layout optimization plan for the
transportation sector, the optimal planning route is
three-tier warehouse network structure of customers, combined
recommended by using the operational research optimization
with factors such as transportation trunk and branch line costs,
algorithm to coordinate the transportation of trunk and branch
warehouse costs, integrated operation and management costs,
lines in various transport scenarios, so as to improve the
time efficiency and service quality requirements. , This plan
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S.F. Holding Co., Ltd. 2024 Interim Report
efficiency of route planning and reduce operating costs. In board. On the one hand, through dynamic investigation of
addition, the "SF Cycle" transportation system fully supports carbon emission risks and carbon reduction effects, combined
the management of its own drivers and external carriers. with the cost and service experience indicators of supply chain
Drivers can clock in and out of tasks and report node fulfillment scenarios, the platform consolidates the "data
information through small programs to ensure that all foundation" for the design and implementation of green and
transportation information is visible on the way, thus realizing low-carbon supply chain services for enterprises. On the other
the refinement of driver assessment and management. hand, the platform accurately calculates the carbon emission of
Ultimately, it helps the customer to reduce the number of each parcel, improving the accuracy of carbon emission
vehicles used by more than 20%, reduce the total mileage of calculation by 70%. As a result, it helps customers to formulate
transportation by more than 10% and improve the more scientific emission reduction actions, support greenhouse
transportation efficiency by more than 10%. gas emission reduction and offset actions in their supply chain,
and reduce the cost of environmental compliance and climate
risk of enterprises.
③ Green supply chain:
Based on the standardized carbon data management
system and refined carbon data computing capability, the Case study: package optimization
Company clearly presents the current situation of carbon In the field of green packaging, the Company provides
emissions in the supply chain of customers, and combines our packaging recommendation and simulation solutions for a
green transportation, green packaging, green technology leading customer in the beauty industry. After researching the
applications and other carbon reduction initiatives to help flow of customer packaging operations and analyzing historical
customers accelerate the low-carbon transformation of the orders and box type data, the problem of cartoning is abstracted
supply chain. and the data is modeled. With full consideration of collision,
SF digital intelligent carbon management platform, which support, rotation, consumables and other conditions, the
collects the whole scene data of supply chain, can accurately operations research optimization engine generates a schematic
calculate the carbon emission data of each parcel, each diagram of the three-dimensional carton results in real time,
transportation, each packaging and site, and realize the guiding the cartoner to efficiently select the optimal carton type
automatic and visual carbon management of supply chain. The for cartoning. This innovative measure helps customers reduce
Company has reached a low-carbon strategic cooperation with the number of boxes by 50%, save 10% of packaging costs, and
a luxury head brand and introduced a full-scene carbon data reduce the use of corrugated packaging materials, helping
customers to implement the green supply chain strategy.
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II) Digitalization technology enables the Company to in a certain link, the benefit points related to the data will be
reduce cost and increase efficiency automatically pushed to the business area immediately,
including standardized improvement initiatives and regional
(1) Precision business opportunity empowerment
excellent cases, for the corresponding business area to adjust
① Data insights business opportunity clues: Based on measures in light of the actual situation, and ultimately achieve
the Company's huge internal customers and product business benefit improvement and enhancement.
data, as well as the integration of external industries and
② Assistance in reducing land transportation cost:
business data resources, the Company has built a solid data
through accurate matching of land transportation resources and
chassis. According to the needs of business growth, it outputs
demand, intelligent scheduling of transportation resources,
business opportunities around different industry scenarios;
systematic and transparent management and control of resource
creates upstream and downstream insight data to help the
procurement, as well as refined management of vehicle
Company's business expansion; and accurately pushes business
maintenance and repair, we are able to drive down the land
opportunities and customers' emotion to the corresponding
transportation cost.
business market departments through productization
capabilities. With data-driven business growth, it effectively Intelligent management and control of resource:
improves the efficiency of approaching opportunities for new intelligently manage and control the effectiveness of temporary
customers and existing customers. demand within 48 hours based on the parcel volume forecast.
At the same time, according to the stability of transport
(3) Fine cost control
capacity demand, the system intelligently combines and
① Intelligent operation and cost control: integrate the recommends schemes to achieve the matching of stable
whole business chain of collection, transfer, transportation and demand and price-controllable transport capacity resources,
delivery, and build a digitalized operation and analysis system which helps to improve the proportion of controllable transport
based on “advanced planning-and-modelling, real-time capacity resources and guarantee the stability of transport
monitoring and post-analysis”. capacity costs. Price guidance for resource procurement:
establish an automated pricing system for lines, and use
Advanced planning-and-modelling: accumulate a
intelligent algorithms to calculate the standard price and
production calculation tool library, covering calculation tools
guidance price of each line according to the industry market
for profit, production capacity, major enterprise resources, and
average price, mileage and other factors. By setting price
other objects, to help front-end businesses formulate production
targets, it guides the procurement of external transport capacity
plans and provide guidance for front-end deployment.
resources and the recruitment of individual drivers. Refined
Real-time monitoring: build daily monitoring management of after-vehicle business: implement refined
dashboards and process control models for revenue and cost, management for vehicle fuel consumption, maintenance and
support end-to-end cost analysis, provide timely, other aspects. Through the docking of external electronic fuel
comprehensive and quantitative operational decision-making card, platform maintenance mode and access to the inventory
support for business, and guide business to make resource data of maintenance parts to form a standardized after-vehicle
inputs and adjustments according to actual operating conditions management process. Through the early warning and
in the course of operation, so as to reduce input costs. identification of high fuel consumption vehicles and high
maintenance costs and the follow-up of work orders to realize
Post-analysis: monitor and analyze business data,
the refined management of after-vehicle costs.
establish system models, sort out and excavate the benefit
points and form a panoramic board to promote the ⑶ Application of cutting-edge technology
implementation of optimization measures. For example, the
① Unmanned vehicles: The Company has put hundreds
system can intelligently excavate the benefit opportunity points
of customized unmanned vehicles into use in the branch line
from the perspective of mode, resource optimization, process
transportation link between transit sites and outlets, as well as
adjustment, etc., in which if a certain data exception is detected
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S.F. Holding Co., Ltd. 2024 Interim Report
the connection by other equipment link between outlets and clearance scenarios, such as cross-border e-commerce platform
pick-up and delivery areas of couriers, so as to replace the orders, national import flow orders, commodity filings, and tax
capacity of the branch line and save the couriers' operations to codes of class B items. At present, the coverage rate of orders
and from the outlets, thus improving efficiency and reducing audited by the intelligent application has reached 97%.
cost.
Efficiency improvement of couriers: The "Courier
Branch line link: match the changes in the operation Service Center" intelligent robot, which comprehensively
mode of container loading and transshipment of express, and covers the logistics knowledge of picking up and delivery and
customize the unmanned vehicles that can carry containers. In products, is built to help accurately extract elements such as
areas within 10 kilometers of the transfer site, the containers consignment, city, weight and distance, support voice
filled with parcels are directly delivered by the unmanned questioning and multiple rounds of Q&A, to provide fast,
vehicle from the transfer site to the small terminal station accurate and easy-to-understand comprehensive information
where the couriers receive and deliver parcels. In areas 10 and Q&A services for the couriers. At present, the application
kilometers away from the transfer site, the containers will be has adopted by hundreds of thousands of couriers, with the
sent to the connection points by the branch line vehicles and robot resolution rate exceeding 80%. In addition, the robot is
transferred to the unmanned vehicles, and then shipped to the equipped with a recommendation model that intelligently
small terminal station by the unmanned vehicles. Connection identifies fragile, vulnerable and high-value products through
link: In some scenes such as industrial parks and residential dialogue, as well as customer demands for timeliness and price.
areas, the unmanned vehicle connection mode will be adopted, For example, if the courier inquires about jade collection, the
which can solve the problems of long time for couriers to and intelligent system will recommend professional jade packaging
from the outlets, improve their operational efficiency while and insurance schemes and aviation products, so that customers
ensuring the timeliness of express delivery, and reduce the enable to enjoy more intimate services while reducing the risk
average cost per parcel. of claims, thus comprehensively improving the income level of
the couriers. In terms of the management of the couriers, the
② Intelligent Logistic big model: Based on the big
system intelligently gathers the feedback from the couriers
model technology, and the Company considers the
across the network and automatically excavates and classifies
characteristics of logistics scenarios to create intelligent
them to form a fine-grained opinion board, which helps
service robots, which are applied in all aspects of daily
managers clearly focus on high-frequency problems, and
operations to improve efficiency, reduce costs and increase
improve the analysis efficiency, so as to formulate business
revenue.
management optimization measures, speed up the solution of
Assistance in international customs affairs: Based on problems from the couriers and improve their satisfaction.
the large model technology, combined with the laws and
Optimization of customer experience: optimize
regulations of various countries and customs announcements,
customer experience in all aspects from order placement to
etc. to create intelligent robots with international picking up
after-sales service. In the process of e-commerce return
and delivery standards, which can automatically classify
ordering, the system supports real-time and efficient audit of
consignments, accurately generate picking up and delivery
mixed text and images, automatically inputs user return address,
standards, and support free language switching. At present, they
and intercepts address tampering and other non-compliant
have been put into use in six international flows, covering
images, to enhance the sense of customer experience in placing
nearly 4,000 picking up and delivery standards, reducing the
orders. In the process of delivery logistics return order auditing,
probability of picking up and delivery errors due to incomplete
the intelligent robot supports real-time differentiated audit,
language, product name database and related regulations, and
focusing on guaranteeing the standardization of return order
consolidating the customs clearance capacities of international
signing and enhancing the customer value-added service
shipments. At the same time, for the category of cross-border
experience. In the process of communication, intelligent robot
items, customs intelligent application can achieve batch
automatically generates customer service summary by
auditing and standardization, covering four types of customs
58
S.F. Holding Co., Ltd. 2024 Interim Report
analyzing the key information of the dialogue between the accuracy of their prediction is limited. SF’s innovative
customer services and customers, which is traceable and can be introduction of big model technology not only significantly
supervised to ensure that the follow-up handlers can quickly improves the accuracy of sales volume forecasting, but also
aware of the core issues and the progress of the processing. At realises a leapfrog upgrade in forecasting capability. In
present, the accuracy rate of the online summary has reached particular, such technology helps enterprises achieve a
93%, with an average of 30,000 summaries per day. significant reduction in server resource costs as much as 80%
by maximizing the optimization of the utilisation efficiency of
Improvement of enterprise management efficiency:
arithmetic resources, which greatly reduces the threshold for
build a comprehensive and professional knowledge base, and
technology application. Such change makes the efficient supply
let intelligent robots become assistant to employees. The
chain decision-making system no longer be only exclusive to
unified corporate knowledge Q&A covers finance, legal affairs,
large enterprises, but also opens a new chapter in the
human resources, IT, sales and other positions. The Company’s
intelligentization transformation of small- and medium-sized
employees can easily access and retrieve the knowledge needed
enterprises, enabling that more enterprises can enjoy the
for their work, reducing the cost for employees to acquire all
competitive advantages and cost savings brought about by
kinds of information and knowledge. The robot also provides
intelligent decision-making.
intelligent dialog, library assistant and other general efficiency
tools that enable fast reading of long documents, production Boosting cost reduction and efficiency improvement in
documents and codes. For example, intelligent robots integrate logistics and packages: In the face of challenges of the
massive product information, including value-added services, increasing complexity in goods grouping and increasing
product cases, detailed pages, posters, etc., to build a platform diversification of packaging boxes during the course of order
for acquiring product information. When employees input contract fulfillment, the traditional ways often lead to a serious
conditions such as time limit and price, the system can waste of packaging materials and high transport costs.
intelligently recommend products and combined packages to Nowadays, with the help of advanced big model algorithm
provide inspiration and ideas for solutions, and quickly technology, SF helps enterprises to achieve a qualitative leap in
empowerg novice marketing employees. At the same time, the computing power, and can respond in milliseconds and
intelligent painting platform contains a large number of intelligently generate an optimal loading plan. The application
logistics elements, which can generate various design material of the big model not only ensures the swift and smooth delivery
templates. The featured IP design intelligently generated based of goods during the peak period, but also fundamentally
on this platform has strong generalization, which effectively reduces the packaging costs and overall transport costs for
helps the promotion and marketing of special economic enterprises.
projects such as tea, fruits and vegetables throughout the year,
Helping optimise logistics transport routes: In contract
and enhances the diversity and interestingness of marketing and
fulfilment in logistics, enterprises are faced with multiple
publicity.
challenges, such as challenges in inbound logistics, precise
In addition, relying on its cutting-edge big model distribution to outlets and efficient cascading of trunk networks,
technology, SF has built a logistics decision-making big model which often arise from complex layout of transport outlets,
system covering core areas such as accurate sales volume huge demand for vehicle scheduling, as well as high
forecasting, intelligent optimisation of loading and efficient customization and the restraint from other multi-dimensional
planning of transport routes, empowering customers in various business rules. By introducing advanced big model algorithm
industries, and helping to improve operational efficiency. technology, SF has not only significantly accelerated the
efficiency of computing the planning for transport routes, but
Enabling sales volume forecasting: For the FMCG
also cleverly solved the previous problem of relying on tedious
retail sector, accurate sales volume forecasting is essential for
customised development to adapt to complex business
scientific stocking, especially at critical moments when new
requirements. The application of the big model not only
products are released or new shops are opened. Traditional
significantly cuts down the related system development cost for
algorithms are limited to the historical data of single goods, and
59
S.F. Holding Co., Ltd. 2024 Interim Report
the enterprise, but also realises a quick response to business SF will continue to explore the application of big model
changes, and ultimately helps the enterprise to achieve the technology in more industries and scenarios to provide
optimal solution to the overall performance efficiency technological driving force for the transformation and
improvement and transport cost reduction. upgrading of various industries.
60
S.F. Holding Co., Ltd. 2024 Interim Report
4. Quality service to create incomparable brand value
In China, SF is a well-known national brand and has become a synonym for high-timeliness express delivery service. "SF to
you" has been equated with "express delivery to you". With the brand image of "fast", "on time" and "safe", the Company has set
up a model of high-quality service in the minds of consumers. At the same time, many corporate customers choose to use SF
Express as an important way to show their service quality and brand image, which further enhances consumers' impression and
trust of their products with high quality assurance, thus bringing better business growth.
Quality service has created incomparable brand value. Relying on the service quality and reputation of leading peers, the
Company has accumulated customer base with high loyalty and strong stickiness in various segments, and has become the
preferred logistics partner of many customers, and has been widely recognized by customers, industry and society.
In the ranking released by the State Post Bureau, SF has been ranked first in public satisfaction with express delivery services
for 15 consecutive years (2009-2023) and the first half of 2024. On August 5, in the Fortune Global 500 list, the Company ranked
415th. It has been included in the list for the third consecutive year, and it is also the first and only Chinese private express
delivery enterprise among the Fortune Global 500.
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S.F. Holding Co., Ltd. 2024 Interim Report
III. Analysis of Principal Business
1. Overview
Please refer to “I. Business Development of the Company” in this section.
2. Period-on-period changes in key financial data
Unit: RMB'000
Increase/
decrease
over the
The Reporting Same period of
same Reason
Period previous year
period of
previous
year
Revenue 134,409,720 124,365,598 8.08% No major changes.
Cost of revenue 115,784,772 107,555,280 7.65% No major changes.
Selling and distribution
1,470,892 1,392,755 5.61% No major changes.
expenses
General and
administrative 8,966,441 8,940,581 0.29% No major changes.
expenses
Financial costs 893,982 992,479 -9.92% No major changes.
Income tax expenses 1,559,135 1,526,110 2.16% No major changes.
Research and
development 1,601,466 1,770,946 -9.57% No major changes.
investment
Net cash flows from
13,722,269 13,824,827 -0.74% No major changes.
operating activities
Net cash flows from This was mainly due to the increase in net
-15,444,553 -13,633,590 -13.28%
investing activities outflows of structured deposits.
This was mainly due to the combined effect of
the repurchase of the Company's shares, the
Net cash flows from acquisition of minority interests and the
-6,181,865 -4,963,638 -24.54%
financing activities increase in the distribution of dividends, as
well as the increase in the net inflow of
borrowings.
The specific reasons for this are detailed in the
Net increase in cash analysis of changes in cash flows from
-7,932,319 -4,645,355 -70.76%
and cash equivalents operating, investing and financing activities
above.
There were no significant changes in the composition of Company's profit or source of profit during the Reporting Period.
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Composition of revenue
Unit: RMB'000
The Reporting Period Same period of previous year Change over
the same
Proportion to Proportion to period of
Amount Amount previous
revenue revenue
year
Total revenue 134,409,720 100.00% 124,365,598 100.00% 8.08%
Categorised by industry
Logistics and freight
forwarding 130,207,965 96.87% 120,855,099 97.18% 7.74%
Sales of goods 1 3,216,236 2.39% 2,754,076 2.21% 16.78%
Others 985,519 0.74% 756,423 0.61% 30.29%
Categorised by business
Time-definite express 59,185,770 44.03% 56,069,720 45.09% 5.56%
Economic express 13,254,012 9.86% 12,129,430 9.75% 9.27%
Freight 17,554,101 13.06% 15,120,722 12.16% 16.09%
Cold chain and
pharmaceuticals 5,062,524 3.77% 5,338,545 4.29% -5.17%
Intra-city on-demand
delivery 3,956,020 2.94% 3,339,291 2.69% 18.47%
Supply chain and
international 31,195,538 23.21% 28,857,391 23.20% 8.10%
Other non-logistics
businesses 4,201,755 3.13% 3,510,499 2.82% 19.69%
Categorised by region
Mainland China 115,996,449 86.30% 107,339,757 86.31% 8.06%
Hong Kong, Macao,
4,512,024 3.36% 4,334,903 3.49% 4.09%
and Taiwan, China
Overseas 13,901,247 10.34% 12,690,938 10.20% 9.54%
Note 1: Sales of goods mainly comprise the purchase and sale business involved in the process of providing end-to-end supply
chain services for customers.
Note 2: Any discrepancies between totals and sums of the numbers are due to rounding.
Business volume and average revenue per parcel of the express & logistics segment
Change over the
The Reporting Period Same period of previous year
same period of previous year
Parcels (100 million) 62.1 58.4 6.5%
Average revenue per
parcel (RMB) 15.9 15.8 1.1%
Explanation of reasons for changes:
(1) The express & logistics segment mainly included time-definite express, economy express, freight, cold chain and
pharmaceuticals, and intra-city on-demand delivery business. The statistics of business volume and average revenue per parcel of
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S.F. Holding Co., Ltd. 2024 Interim Report
the express & logistics did not include the data of the supply chain and the international business as well as other non-logistics
business.
(2) The business volume of the express & logistics grew by 6.5% year-on-year and the average revenue per parcel increased by
1.1% year-on-year. This was mainly due to the Company has always adhered to the operating policy of sustainable and healthy
development, pursuit of high-quality business growth, and the completion of the sale delivery of the franchise model, Fengwang
Express (with relatively low unit price per parcel), in June 2023, resulting in year-on-year increase in average revenue per parcel.
If excluding the Fengwang express , the volume of express & logistics increased by 14.6% year-on-year.
4. Details on main industries
Industries, products or regions accounting for more than 10% of the Company's revenue or operating profit
Unit：RMB'000
Revenue Cost of revenue Gross profit margin
Increase/decrease Increase/decrease Increase/decrease
over the same over the same over the same
Amount Amount Percentage
period of period of previous period of previous
previous year year year
Logistics and
Up 0.37 percentage
freight 130,207,965 7.74% 112,169,353 7.27% 13.85%
forwarding point
The cost of revenue and gross profit are analysed as follows:
Unit：RMB'000
Change over the same period of previous
The Reporting Period Same period of previous year
year
Proportion to Proportion to Growth rate Change as a percentage
Amount Amount
revenue revenue (%) of revenue
Up 0.45 percentage
Labour cost 53,523,463 41.11% 49,141,500 40.66% 8.92%
point
Transportation Up 0.32 percentage
42,765,854 32.84% 39,307,703 32.52% 8.80%
cost point
Other operating Down 1.14 percentage
15,880,036 12.20% 16,116,677 13.34% -1.47%
costs Points
Up 0.37 percentage
Gross profit 18,038,612 13.85% 16,289,219 13.48% 10.74%
point
Explanation for changes:
(1) There are significant differences between the cost structure of Kerry Logistics' international freight forwarding and agency
business (in which transportation costs account for a large proportion) and the Company's overall express & logistics business. The
following cost analysis will also present data excluding Kerry Logistics business.
(2) Labor cost as a percentage of revenue, up 0.45 percentage point from the same period last year, and up 0.84 percentage point
from the same period last year if Kerry Logistics being excluded. This was mainly due to: the Company continued to maintain the
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S.F. Holding Co., Ltd. 2024 Interim Report
competitiveness of first and second tier employees’ salaries, fully protected the rights and interests of employees, and combined
with rich incentive mechanism to promote the couriers to actively develop business. At the same time, the Company improved its
operational efficiency and controlled the rise in labor costs by optimizing its operating model and investing in automated and
unmanned equipment.
(3) Transportation cost as a percentage of revenue, up 0.32 percentage point from the same period last year, and down 0.17
percentage point from the same period last year if Kerry Logistics being excluded. This was mainly due to that the Company
continued to optimize routing planning, intensify shipments to straighten routes and reduce transshipment, as well as effective
control over transportation capacity procurement and pricing standardization, which contributed to the continuous optimization of
the transportation cost.
(4) Other operating costs as a percentage of revenue, down 1.14 percentage points from the same period last year, and down 0.94
percentage point from the same period last year if Kerry Logistics being excluded. This was mainly due to the fact that the
Company continued to strengthen the efficiency management of resources and production, effectively controlled the growth rate of
investment in fixed assets such as sites and equipments, maintained a healthy ratio of capital expenditure to revenue, thus
ultimately realizing better economies of scale along with the growth in business volume.
(5) In summary, the gross profit margin of the Company's main logistics and freight forwarding business in the first half of 2024
was 13.85%, representing an increase of 0.37 percentage point over the same period last year, and profitability has been improving.
In case of adjustment in statistical caliber of principal business of the Company during the Reporting Period, the principal business
data of the Company in the latest period according to the adjusted caliber at the end of the Reporting Period
□Applicable Not applicable
IV. Non-core Business Analysis
Unit: RMB'000
Proportion to
Amount Reason
total profit
Other income 403,359 6.38% Mainly due to government grants related to daily activities.
Mainly due to income from maturity structured deposits and
Investment income 358,868 5.68%
income from disposal of subsidiaries.
Gains arising from
10,904 0.17%
changes in fair value
Credit impairment Mainly due to bad debt losses provision for accounts
159,557 2.52%
losses receivable.
Asset impairment
1,624 0.03%
losses
Mainly due to compensation income and government grants
Non-operating income 168,965 2.67%
unrelated to daily activities.
Non-operating Mainly due to asset retirement losses and compensation
207,434 3.28%
expenses expenses, etc.
Explanation on sustainability
Except for the income from structural deposits in the investment income, all other items mentioned above were not sustainable.
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S.F. Holding Co., Ltd. 2024 Interim Report
V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: RMB'000
As at the end of the As at the end of previous Increase
Reporting Period year /decreas
Proportio Proportio e in Major changes
Amount n to total Amount n to total proporti
assets assets on
For details, please refer to the
explanation of changes in cash flow
Cash at bank and
33,485,353 15.23% 41,974,505 18.95% -3.72% items in “Period-on-period changes in
on hand key financial data” in “III. Analysis of
Principal Business” in this section.
Financial assets Mainly due to the increase in structured
18,047,323 8.21% 6,809,742 3.07% 5.14%
held for trading deposits.
Accounts
25,851,621 11.76% 25,133,487 11.35% 0.41% No major changes.
receivables
Contract assets 2,039,379 0.93% 1,632,592 0.74% 0.19% No major changes.
Inventories 2,559,211 1.16% 2,440,425 1.10% 0.06% No major changes.
Investment
6,658,540 3.03% 6,418,720 2.90% 0.13% No major changes.
properties
Long-term equity
6,859,813 3.12% 7,378,831 3.33% -0.21% No major changes.
investments
Fixed assets 54,518,899 24.80% 53,929,854 24.35% 0.45% Mainly due to the increase of buildings.
Mainly due to the transfer to fixed
Construction in
2,939,116 1.34% 4,032,884 1.82% -0.48% assets of projects, such as industrial
progress
parks and transit depots.
Right-of-use
13,119,519 5.97% 14,073,571 6.35% -0.38% No major changes.
assets
Short-term
23,691,496 10.78% 18,221,977 8.23% 2.55% Mainly due to new borrowings.
borrowings
Contract liabilities 1,802,509 0.82% 1,832,018 0.83% -0.01% No major changes.
Other current Mainly due to the issuance of ultra-
2,455,242 1.12% 167,668 0.08% 1.04%
liabilities short-term commercial notes.
Long-term
10,661,466 4.85% 11,355,241 5.13% -0.28% No major changes.
borrowings
Lease liabilities 7,472,393 3.40% 8,038,495 3.63% -0.23% No major changes.
Mainly due to the acquisition of
Capital reserve 35,970,002 16.36% 43,164,085 19.49% -3.13% minority interests and the cancellation
of the Company's shares.
Mainly due to the combined effect of
Treasury stock -378,490 -0.17% -2,575,532 -1.16% 0.99% the cancellation and repurchase of the
Company's shares.
Mainly due to the profitability of the
Retained earnings 40,748,443 18.53% 38,835,999 17.53% 1.00%
period.
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S.F. Holding Co., Ltd. 2024 Interim Report
2. Key overseas assets
Applicable □Not applicable
Control
measures Whether
Assets Profiting Assets
there is
Details of Locatio for overseas/net
Reason scale Operation model status significant
the assets n ensuring assets of the
(RMB'000) (RMB'000) impairment
asset Company
risk
security
Integrated
logistics,
51.52% Hong international
equity of Equity
Kong freight Note 1 103,294 20.87% 否
Kerry acquisition 20,642,509
(China) forwarding and
Logistics
supply chain
solutions
1. “Asset scale” refers to net assets of Kerry Logistics;
2. “Profiting status” refers to net profit contributed by Kerry Logistics in the first half of 2024, which is the net
profit of Kerry Logistics, taking into account the fair value of identifiable assets and liabilities at the time of the
acquisition of the equity of Kerry Logistics and the impact of adjustments arising from adopting the same
Other
accounting policy. The net profit attributable to shareholders of the parent company was RMB25,482 thousand;
information
profit or loss attributable to minority shareholders amounted to RMB77,812 thousand and net profit attributable to
shareholders of the parent company after deducting non-recurring profit or loss as contributed by Kerry Logistics
amounted to RMB6,937 thousand.
3. “Assets overseas/net assets of the Company” refers to net assets of Kerry Logistics/net assets of the Company.
Note 1: Kerry Logistics, as a company listed on the Hong Kong Stock Exchange, on the basis of compliance with the A-share and
H-share listing rules and other relevant regulatory regimes, the Company and Kerry Logistics have carried out integration at the
levels of corporate governance, disclosure of information and business co-operation, etc. Mr. Wang Wei, the Chairman of the
Company, has been appointed as the chairman of the board of directors and a non-executive director of Kerry Logistics and Mr. Ho
Chit, a director, has been appointed as a non-executive director of Kerry Logistics since October 2021; and in October 2023, OOI
BEE TI, the head of the Company’s Treasury Centre, was appointed as a non-executive director of Kerry Logistics to participate in
Kerry Logistics’ corporate governance and major operational decisions. Meanwhile, both parties work closely on corporate
governance and information disclosure to ensure that the disclosure of information of both parties complies with the regulatory
rules for A-share and H-share listed companies. In addition, both parties will continue to explore the room for collaboration in
business to fully complement each other’s strengths and to work together in expanding the global logistics market.
3. Assets and liabilities measured at fair value
Unit: RMB'000
Gains
and
Accumulat
losses Provision Amount of
ed fair Amount of
from for
Opening value purchase in sales in Other Closing
Item changes impairment
balance changes current current changes balance
in fair in current
included in period period
value in period
equity
current
period
Financial
assets
1. Financial
assets held
for trading
(excluding 6,809,742 48,003 - - 11,040,766 112,086 260,898 18,047,323
derivative
financial
assets) note 1
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S.F. Holding Co., Ltd. 2024 Interim Report
2. Other
non-current
589,996 -39,842 - - 5,977 4,951 -42,867 508,313
financial
assets
2. Investme
nts in other
9,489,535 - -1,362,163 - 49,784 20,205 187,342 8,344,293
equity
instruments
Subtotal of
financial 16,889,273 8,161 -1,362,163 - 11,096,527 137,242 405,373 26,899,929
assets
Others - - - - - - - -
Total 16,889,273 8,161 -1,362,163 - 11,096,527 137,242 405,373 26,899,929
Financial
92,120 395 -736 - - - 2,153 94,614
liabilities
Note 1: The item includes structured deposits that do not carry the characteristics of contract cash flow for principal and interest.
The structured deposits have short maturities and are highly liquid, and net purchases and sales for the current period are stated in
the current period. Financial assets held for trading other than structured deposits are stated separately at the amount purchased and
sold during the period.
(1) Other changes
Other changes in financial assets held for trading are mainly income realized from matured structured deposits, and other changes in
investments in other equity instruments are mainly due to exchange differences on translation of foreign currency financial statements.
(2) Significant changes occur for the Company's major asset measurement attributes during the Reporting Period
□Yes No
4. Limitation of asset rights as of the end of the Reporting Period
At the end of the Reporting Period, the Company's assets subject to limited rights are mainly statutory reserve placed at the Central
Bank and the bank borrowing mortgage, details of which are as follows:
Unit: RMB'000
Amount Reasons for limitation
Cash at bank and on hand 1,029,244 Mainly statutory reserve at the Central Bank
Fixed assets 498,743 Bank borrowing mortgage
Intangible assets 261,868 Bank borrowing mortgage
Investment properties 110,919 Bank borrowing mortgage
Total 1,900,774
VI. Investments Analysis
1. Overview
Investment amount during the Reporting Investment amount in the same period of
Percentage change
Period (RMB'000) last year (RMB'000)
6,169,640 8,341,109 -26.03%
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S.F. Holding Co., Ltd. 2024 Interim Report
Breakdown items of capital expenditure during the Reporting Period are indicated in the table below:
Investment amount during the Reporting
Item
Period (RMB'000)
Sorting centre 2,228,990
Aircraft 1,286,333
Warehouse 533,582
Vehicle 323,633
Information & technology equipment 183,976
Office and buildings 199,385
Land 150,428
Equity investments 685,180
Others 578,133
Total 6,169,640
2. Significant equity investment obtained during the Reporting Period
□Applicable Not applicable
3. Significant non-equity investment ongoing during the Reporting Period
□Applicable Not applicable
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S.F. Holding Co., Ltd. 2024 Interim Report
4. Investment in Financial Assets
(1) Investment in securities
Unit: RMB’000
Gains and
Accumulated Gains and
losses from Purchase Sales
Initial Accounting fair value losses
Security Abbreviation Opening changes in amount amount Closing
Stock code investment measurement changes during the
type of security book value fair value during the during the book value
cost model included in Reporting
during the period period
equity Period
period
Domestic
Zhilai Sci Fair value
and overseas 300771 13,674 72,394 - -15,485 - 19,464 426 37,445
And Tech measurement
stocks
Domestic
Fair value
and overseas GB00BLH1QT30 Samarkand 28,928 867 - 120 - - - 1,006
measurement
stocks
Domestic
Fair value
and overseas 01519 J&T Express 1,874,787 2,345,581 - -1,303,442 - - - 1,081,858
measurement
stocks
Total 1,917,389 -- 2,418,842 - -1,318,807 - 19,464 426 1,120,309
Disclosure date of Board announcement in respect
Not applicable
of securities investment approval
Disclosure date of shareholders meeting
announcement in respect of securities investment Not applicable
approval
Note: The accounting items of the above domestic and overseas stocks are all “investments in other equity instruments”, and the capital source is “self-owned funds”.
S.F. Holding Co., Ltd. 2024 Interim Report
(2) Investments in derivatives
1) Derivatives investments for hedging purpose during the Reporting Period
Unit: RMB'000
Proportion of
Amount at the Accumulated Amount of investment amount
Amount of
Initial beginning of Gains and losses from fair value purchase Amount at at the end of the
sales during
Type of derivatives investment investment the period changes in fair value changes during the the end of period to net assets
the Reporting
amount during the period included in Reporting the period of the Company at
Period
equity Period the end of the
Reporting Period
Forward foreign exchange 2,180,655 - 1,289 -1,012 Not applicable Not applicable 2,180,655 2.20%
Total 2,180,655 - 1,289 -1,012 Not applicable Not applicable 2,180,655 2.20%
Explanation of whether the accounting policies
and accounting principles of hedging during the No
Reporting Period are significantly changes
compared with the previous Reporting Period
Description of actual gains/losses during the The actual gains/losses during the Reporting Period refers to the change in fair value of derivative financial instruments, and the actual loess for the p
Reporting Period eriod amounted to RMB736 thousand.
The Company's derivative investment business mainly consists of forward contracts purchased in the Year, with the underlying asset being the
exchange rate and the currency involving USD/HKD. The main elements are: operation of forward forex hedging for the Company's US dollar bonds,
Description of hedging effects which generates exchange losses on the US dollar bonds and gains on changes in the fair value of the forward exchange contracts when the USD
strengthens against the HKD. By utilising the lock-in function of derivative transactions, the impact of exchange rate fluctuations on the Company's
profit was effectively reduced.
Source of fund for derivatives investment Self-owned funds
(I) Risk analysis
The foreign exchange hedging business is carried out by the Company based on the principles of lawfulness, prudence, safety and effectiveness, and
not for speculative purposes. All foreign exchange hedging transactions are derived from normal cross-border business, but certain risks may exist in
Risk analysis and control measures for foreign exchange hedging transactions.
derivatives positions during the Reporting
1. Market risk: The foreign exchange hedging business carried out by the Company and its subsidiaries mainly involves daily cross-border intermodal
Period (including but not limited to market risk,
liquidity risk, credit risk, operational risk, legal transportation fees and investment and financing activities denominated in foreign currencies related to the main business. The associated market risk
risk, etc.) refers to losses which may arise from changes in price of foreign exchange hedging products due to fluctuations in market prices of underlying
exchange rates and interest rates.
2. Liquidity risk: Since all foreign exchange hedging business is conducted through financial institutions, we are subject to the risk of having to pay
fees to banks caused by insufficient liquidity in the market.
S.F. Holding Co., Ltd. 2024 Interim Report
3. Non-performance risk: The Company and its subsidiaries conduct foreign exchange hedging business mainly based on cash flow rolling forecasts
for risk management. We are subject to the risk that the actual cash flow deviates from forecast, resulting in failure to fulfil obligations under relevant
hedging contracts when due.
4. Other risks: In the course of business, if the person concerned fails to report and seek approval in accordance with the prescribed procedures, or
fails to make records on foreign exchange hedging business accurately, timely and completely, losses may be incurred or trading opportunities may be
lost. At the same time, if the person concerned fails to fully understand the terms of the transaction contract and product information, we are exposed
to related legal risks and transaction losses as a result.
(II) Risk control measures
1. Clarify the criteria of initiating transaction of foreign exchange hedging product: All foreign exchange hedging businesses are derived from normal
cross-border business for the purpose of averting and preventing exchange rate and interest rate risk. No foreign exchange derivatives trading shall be
carried out for speculative purposes.
2. Selection of products: Hedging products with simple structure, strong liquidity and controllable risk are selected to carry out foreign exchange
hedging business.
3. Counterparty selection: The counterparties of the Company’s foreign exchange hedging business are large state-owned commercial banks and
international banks with sound operation, good credit, long history of cooperation with the Company and good credit standing.
4. Determination of fair value of foreign exchange hedging products: The foreign exchange hedging products operated by the Company are mainly for
the management of foreign exchange transactions in the predictable future period, with high market transparency and active trading; the transaction
price and settlement unit price of which can fully reflect their fair value. The Company determines the fair value of the hedging products in
accordance with the transaction data provided by or obtained from the public domain including banks and Reuters.
5. Equipped with professional staff: The Company has maintained a team of professionals with expertise in financial derivatives, responsible for the
Company’s exchange rate risk management, market analysis, product research and the Company’s overall management policy recommendations, etc.
6. Establishing a comprehensive risk alarm and reporting mechanism: The Company sets risk limits for foreign exchange hedging business where
transactions have been made, timely evaluates changes in risk exposure and derived gains and losses, and provides regular risk analysis report to the
management and the Board of Directors. Appropriate risk assessment models or monitoring systems are used to continuously monitor and report
various risks. More frequent reports are made when the market fluctuates drastically or when risks are higher. A response plan will be made promptly.
7. Separation of duties and personnel between the front end and back end is strictly implemented. Dealers cannot concurrently hold the position as
accounting personnel and vice versa.
Changes in market price or fair value of invested The Company’s analysis of the fair value of derivatives is based on the financial market fair value valuation report provided by the bank at month
derivatives during the Reporting Period (the end.
specific methods, relevant assumptions and
parameters used in the analysis of the fair value
should be disclosed)
Lawsuit (if applicable) N/A
Disclosure date of Board announcement in 29 March 2023, 27 March 2024
respect of derivatives investment approval (if
any)
Disclosure date of shareholders meeting N/A
announcement in respect of derivatives
investment approval (if any)
S.F. Holding Co., Ltd. 2024 Interim Report
2）Derivatives investments for speculative purpose during the Reporting Period
□Applicable Not applicable
There was no derivative investment for speculation purpose during the Reporting Period.
S.F. Holding Co., Ltd. 2024 Interim Report
5. Use of proceeds
□Applicable Not applicable
The Company had no use of proceeds during the Reporting Period.
VII. Sale of Significant Assets and Equity
1. Sale of significant assets
□Applicable Not applicable
The Company did not sell any significant assets during the Reporting Period.
2. Sale of significant equity
□Applicable Not applicable
VIII. Analysis of Major Holding and Participating Companies
Major subsidiaries and equity participation companies that affect the Company's net profit by more than 10%
Unit: RMB’000
Company Registered
Company Name Primary Business Total Assets Net Assets Revenue Operating Profit Net Profit
Type Capital
Investments in industrial
businesses, investment consulting
Shenzhen S.F. Taisen
Subsidiar and other information consulting,
Holding (Group) Co., 5,000,000 80,905,205 44,381,977 3,097,607 353,485 323,939
y supply chain management, asset
Ltd.
management, capital management,
investment management, etc.
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S.F. Holding Co., Ltd. 2024 Interim Report
(1) Description of Major Holding and Participating Companies
The net profit realised by Shenzhen S.F.Taisen Holding (Group) Co., Ltd. for the period was mainly the profit generated from the Company's primary business.
(2) Acquisition and Disposal of Subsidiaries During the Reporting Period
For details, please refer to Note 5 to the Chapter 10 Financial Statements.
IX. Structured Entities Controlled by the Company
Applicable Not applicable
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S.F. Holding Co., Ltd. 2024 Interim Report
X. Risks Faced by the Company and Countermeasures
1. Market risk of diversified business development, constantly improves the
product matrix, deeply taps demands from customers' supply
Risk of macroeconomic fluctuations: The logistics industry
chain and provides integrated logistics solutions for various
plays a significant role in supporting the development of the
industries, to achieve a differentiated service experience and
national economy but meanwhile being subject to the
enhance customer stickiness towards us. It insists lean
significant impact posed by global macroeconomic conditions.
operations and deeply integrates its business foundation in
The growth of macro-economy is expected to shift into a new
order to achieve the resources complementation and more
normal featuring medium-to-low-rate growth; in the first half
optimisation of benefit from its operation network. Meanwhile,
of 2024, there is a slowdown in growth in the consumer market,
the Company attaches great importance to investing in science
despite relatively high growth in industrial production.
and technology, striving to empower its product innovation and
Meanwhile, in developed countries, the inflation, weak
improve its service quality by means of technology, and is
consumer demand, unstable international relations and other
committed to providing customers with digital and integrated
negative factors posed obstacles to the growth of international
supply chain services, to consolidate its core competition
trade. Due to the conflicts in partial nations and regions, the
barriers, thereby supporting the long-term sustainable
supply of transport capacity by maritime transport routes fell
development of the Company's business.
short, leading to the absence of the full unleashing of
international freight demand. The combined effect of domestic
2. Policy risk
and foreign economic factors may affect the growth of the
logistics industry and the performance of the Company.
Risk arising from changes in industry regulations and
industrial policies: The operation of express delivery requires
Market competition-related risk: The e-commerce market, as
business licensing and is subject to regulation by laws,
the main force driving the growth of the business volume of
administrative rules and industry standards such as the Postal
express delivery, has transitioned from explosive development
phase into normal-level steady growth. With the reduction in Law of the People's Republic of China (《中华人民共和国邮
space for increment, the competition may become intense in the 政 法 》 ), the Administrative Measures on Courier Service
existing markets. Meanwhile, consumers’ emphasis on cost Operation Permits (《快递业务经营许可管理办法 》), the
performance in shopping will prompt enterprises and Administrative Measures for Express Delivery Market (《快递
businesses to seek for further reduction in the cost of express
市场管理办法》) and the Rules for Guiding the Operation of
and logistics, and major express delivery companies have
recorded a decline in average per-parcel revenue. In addition, Express Delivery Business ( 《 快 递 业 务 操 作 指 导 规 范 》 ).
more express delivery enterprises tend to offer comprehensive With a view to effectively regulating the development of the
logistics services rather than homogeneous services, pay more express delivery industry and enhancing service quality,
attention to product and service layering and commence competent departments at various levels successively introduce
competition in more logistics segments. The Company has been regulatory systems to regulate industry competition and service
keeping forging differentiated competitive advantages, and standards. Particularly, emphasis is placed on high-quality
providing a complete product matrix in the diversified business development of the industry, calling on related parties to
scope, however, as more leading express delivery enterprises protect the legitimate rights and interests of couriers, improve
get involved in the competition in segments, the Company may the social security level for couriers, implement the main
face the risk of slowing revenue growth and declining market responsibilities of express delivery enterprises and standardize
share if it is unable to adjust its operation strategies in a timely the enterprise franchise and labour management. At the same
manner in line with the changes in the market, seize the market time, the emphasis on consumer experience is required, and no
opportunities and maintain its position as a leading service confirmation and signing can be made, and no parcel can be
provider. delivered to the delivery lockers or service stations without the
consent of the users, etc. With the strengthening regulation, the
Risk response: The Company keeps a close watch on the compliance costs and incompliance risks of the express
macroeconomic situation, analyses its impact on our main delivery industry may increase, which may have an impact on
business, and adjusts our operation strategies in a timely the development trend and market competition landscape in the
manner to minimise the adverse impact on the Company's express delivery industry, and may therefore affect the future
business and future development. It pays close attention to and business operation and performance of the Company.
studies the trends of the industry’s development, analyses the
competition patterns in the market, and deploys forward- Risk response: SF has always adhered to the highest standards
looking strategic planning. In addition, it adheres to the practice of compliant operation in the industry, and the increasingly
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S.F. Holding Co., Ltd. 2024 Interim Report
standardized national policies are favorable for the Company in large demands for labour in various links of the operation such
market competition.The Company has established state and as pickup, sorting, transportation and delivery. With the
local policies research teams for all of its business lines, reduction in demographic dividend in China, there will be
conducting in-depth analysis on relevant policies introduced, certain pressures of rising labour costs while investments in
fully capitalising on favourable policies while avoiding policy logistics infrastructures and other aspects have also increased.
risks and identifying the trend of industry policies, hence If the Company is unable to secure enough business volume or
promoting its business operation. Furthermore, the Company effectively control costs in the future, the performance growth
has always attached importance to the protection of rights and will probably face risks in the future.
interests of couriers, continuously improved the social security
level for them while boosting their efficiency through Risk response: The Company has improved its logistics
technology empowerment, reducing working hours and raising infrastructure, and innovated its system tools, including
their income. In addition, the Company has always adhered to promoting the whole-process online intellectualisation of
the concept of providing customers with high-quality services, logistics, improving sorting centers' automation, optimising
and adhered to the practice of providing end-to-end door-to- route planning, applying scientific and technological means to
door services, serving customers with timeliness and warmth, enhance efficiency and reduce manpower investment, gradually
all leading to its ranking the first place in public satisfaction for achieving transformation of the express delivery industry from
express delivery services for 15 consecutive years. a labour-intensive industry to a technology intensive industry.
Meanwhile, the Company continues to review and optimise
Risk arising from relevant state policies on environmental resources investment in all of its business lines, expand the
protection, energy conservation and emission reduction: synergistic reuse of resources across business segments by
China has undertaken that it will strive to reach the peak of promoting multi-network integration and operation model
CO2 emissions by 2030 and achieve carbon neutrality by 2060. optimisation, improve the input-output ratio of resources and
It is foreseeable that China will issue subsequent policies on optimise cost efficiency. The core logistics infrastructure
environmental protection, energy conservation and emission constructed by the Company in accordance with its long-term
reduction. Such policies to be released may affect the service strategic direction will gradually unleash economies of scale
and operation pattern of express delivery enterprises, and may along with future business growth.
lead to increased expenses in relevant aspects such as
environmental protection, energy conservation and emission Risk of fuel price fluctuation: Transportation cost is one of
reduction incurred by express delivery enterprises, which will the major cost in the express delivery industry, and fuel cost is
pose adverse effect on the future performance of the Company. an important component of transportation cost. Fluctuation in
Meanwhile, if companies fail to fulfil their green and fuel price will have a certain impact on the profitability of
environmental obligations in accordance with the laws, they express delivery companies. If the price continues to rise
will be liable to the relevant legal obligation and the social significantly in the future, the Company will experience
images of the companies will be impaired. pressure of increased costs.
Risk response: The Company, taking into account the external Risk response: By further optimising the layout of its
environment and policy changes, took a keen insight into the operation network, the Company improves the scientificity of
development trend of the industry, so as to keep abreast of the its route planning and the vehicle loading rate of the trunk and
direction of the industry and implement the forward-looking feeder routes, and improves the efficiency of its resource use;
deployment and adjustment. It kept a watchful eye on its own furthermore, the Company strengthens promotion for use of
impacts on the environment, and published the SF Holding's new energy vehicles, which has reduced the risk of fuel price
White Paper for Carbon Emission Target (《顺丰控股碳目标 fluctuations to a certain extent. Meanwhile, the Company has
白皮书 》), which was the first one of such like in the industry, well-established operation and cost monitoring mechanisms in
in 2021. Leveraging intelligent technological strength, the place. When costs fluctuate significantly, the operation plans
Company has adjusted its energy consumption structure, and fuel cost control measures will be dynamically adjusted.
upgraded its transportation and business models, implemented The Company has also comprehensively evaluated and
the reduction and recycling of packaging of parcels, and then explored the mechanisms for charging appropriate fuel
promoted the green and low-carbon reform. surcharges for specific products based on oil price fluctuations,
thereby reducing the negative impact of fuel cost fluctuations
on the Company.
3. Business risk
Risk from international operation: With the development of
Risk of possible rising costs: The express and logistics
the Company's international business, especially after the
industry is a labour-intensive industry. There are relatively
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S.F. Holding Co., Ltd. 2024 Interim Report
acquisition of Kerry Logistics, the proportion of its hedging instruments with low default risks, high liquidity and
international business has expanded rapidly, and the number of controllable risks to lock in the costs of exchange rate and
countries covered by the services of the Company has increased. interest rate and avoid exchange rate and interest rate risks. All
International logistics service, relying on international trade, is the Company's hedging transactions are conducted in strict
subject to trade relations and other unpredictable factors. compliance with the relevant hedging principles, and are based
Global economic development, national relationships, on our normal production and business activities and justified
international trade and tax policies have experienced with actual business operations. All the transactions are carried
unpredictable changes and there are many uncertainties on out for the purpose of locking in costs and avoiding risks. The
international trade, including significant fluctuations in the Company does not trade for speculative purposes, and operates
price of the transportation capacity of international routes, the within its authority to ensure effective execution and reduce the
problem of stability in some countries and regions where we impact of the exchange rate fluctuations on its operation and
have operations and so on, which bring challenges to the earnings. In terms of transaction counterparty selection, the
Company's operation. If the Company fails to take effective Company conducts foreign exchange hedging transactions only
measures to deal with that, it may have an adverse impact on with large and established commercial banks at home and
the development of the Company's international business. abroad, and all such transactions conform to the principles of
legality, prudence, safety and effectiveness. In addition, the
Risk response: In the course of the Company's business, we Company will devote its efforts to study and analyse exchange
continue to track and study changes in trade policies, closely rates and interest rates, closely monitor changes in the global
monitor the market dynamics and adjust the strategies for our markets, issue early warnings in time, and take
international business operation in a timely manner; actively countermeasures accordingly.
explore international maritime, land, air and railway
transportation resources, strengthen the monitoring of our 5. Information system-related risk
operation networks, and make every effort to ensure stable and
efficient cross-border services. Meanwhile, the Company Information system-related risk: To cope with business
increases its investment in our scientific and technological diversification of the Company and meet the complex and
resources, promotes the informatisation construction of our diverse needs of customers, the Company has set up and
international business, and facilitates operational decisions applied various information systems and technologies. Rapid
making. development and changes of the market and industry pose a
challenge of rapid change in technology and services on the
4. Exchange rate fluctuation risk construction of core business systems of the Company. With a
wide variety of professional technologies of the Company and
Exchange rate fluctuation risk: As the Company’s overseas the rapid iteration thereof, along with emerging new
operations expand, the businesses denominated in foreign technologies, changes in information technology and future
currencies are set to account for an increasing share of our total business requirements may cause certain information system-
business volume. Given the uncertainties in the international related risks. Although a series of information security
financial environment and fluctuations in RMB's exchange management and control mechanisms have been established
rates, the Company's foreign-currency denominated assets, drawing on the substantial amount of data accumulated over the
foreign-currency denominated liabilities and future foreign years by the Company, there still exist certain human- or
currency-denominated transactions will all be subject to system-caused information security risks. And as the top-level
fluctuations in exchange rates, which will in turn affect the laws relating to data security and personal information
Company's business performance or financial statements. protection are introduced, and employees’ and users’ awareness
of privacy protection has enhanced, the regulators have set
Risk response: The Company's foreign exchange transactions higher and stricter requirements for the standardisation of data
are mainly conducted based on its actual needs of cross-border processor, especially personal information processing activities.
foreign-currency denominated businesses. To avoid and guard Therefore, companies with a deluge of personal information are
against risks associated with fluctuations in exchange rates and also inevitably facing privacy compliance risks.
interest rates, better manage its foreign currency positions and
become more competitive, the Company has established the Risk response: The Company has formulated comprehensive
Management Policies for Foreign Exchange Risks (《外汇风 response measures against information system-related risks.
险 管 理 制 度 》 ), and conducted centralised management of
Firstly, the Company continues to carry out operation and
foreign currency positions, netting, maturity matching, and
optimisation of the ISO27001 information security
natural hedging to avoid foreign exchange risk in advance
management system and the ISO27701 privacy information
wherever possible. It also uses financial derivatives and
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S.F. Holding Co., Ltd. 2024 Interim Report
management system. It implements information security risks, reducing potential business loss, fulfilling the
control and protection in all links in accordance with responsibilities of data processors, effectively protecting the
established policies and strategies for information security, and interest of users and employees, and maintaining a positive
continuously updates all procedures and systems for image of SF for its personal information protection, the
information security. It continuously reinforces risk awareness Company acted in compliance with the GDPR and assessed
among staff members, conducts staff training on operation privacy compliance of its APPs, implemented multiple
standards, develops internal information circulation guidelines, publicity and training on privacy compliance within the
implements rules of exacting control over sensitive information, Company after the Data Security Law (《数据安全法》) and
avoids unintentional violations, and constructs monitoring and the Personal Information Protection Law ( 《 个 人 信 息 保 护
pre-warning and response systems for abnormal behaviours, so
法》) were promulgated, and continuously conducted security
as to eliminate information system security risks in their
intervention during personal information processing and
infancy.
business system building activities, with high standards of
privacy compliance requirements enforced, and enhanced the
Secondly, in accordance with the requirements of regulatory
ability to resist security attacks on personal information
authorities, the Company has carried out security assessment on
protection and business system in accordance with compliance
its information systems. Based on high standards of technology
requirements such as the Privacy Data Security Compliance
protection requirements, it conducts continuous and regular
Management Standards (《隐私数据安全合规管理标准》)
security intervention in the business system construction phase
to enhance the anti-security attack capabilities of the client and the Data Asset Classification and Rating and Security
service products and the business systems themselves. During Management System ( 《数据资产分类分级及安全管理制
the operation of the information systems, four capability 度 》 ). Additionally, the Company has actively participated in
systems, namely the security capability baseline (measurable the formulation of three information security standards,
cyberspace security capability evaluation), the safe operation including the Basic Requirements for the Collection of
capability (privacy data risk situation awareness, MTTD and Personal Information by Mobile Internet Applications (Apps)
MTTR metrics based on offense-defense confrontation), the for Information Security Technology (《信息安全技术移动互
DevOps security capability (DevSecOps process and tool
联 网 应 用 程 序 （ App ） 收 集 个 人 信 息 基 本 要 求 》 ), the
chain), and the security ecology capability (external perception
Security Requirements for Express and Logistics Service Data
and linked stop-loss) have been established, to enhance the
for Information Security Technology (《信息安全技术快递物
capability of the IT infrastructures to discover and defend
against cyber security attacks. Moreover, the Company has 流 服 务 数 据 安 全 要 求 》 ) and the Guidelines for the
established a relatively comprehensive information system risk Implementation of Notice and Consent in Processing of
prevention and control system, and formulated standard Personal Information for Information Security Technology
processes such as the Major Event Management Process (《信息 安全技 术个人 信息 处理中 告知和 同意的 实施指
System for IT System (《IT 系统重大事件管理流程制度》) 南 》 ). In addition, the Company regularly carries out and
and the Disaster Recovery Plan and Process for IT System participates in security summits and security salons, exchanges
( 《IT 灾难 恢复预 案流程 》) to implement closed-loop risk and discusses with industry leaders and industry elites, and
prevention and control via pre-warning, in-process control and forms alliance partnerships with information security teams of
post-recording. well-known Internet and e-commerce enterprises and other
enterprises in various industries to co-operate and work
Furthermore, with a view to eliminating privacy compliance together to build a safe and orderly cyberspace.
XI. Implementation of the Action Plan on “Double Improvement of Quality and Return”
Whether the Company has disclosed the action plan on “Double Improvement of Quality and Return”
Yes No
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S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 4 Corporate Governance
I. Details about the Annual General Meeting and Extraordinary General Meetings Convened
during the Reporting Period
1. Details about the shareholders' general meeting during the Reporting Period
Investor
Meeting Meeting Type Participation Date Convened Disclosure Date Meeting Resolutions
%
2023 Annual General
Meeting Resolutions"
2023 Annual
Annual General (2024-045) disclosed by
General 67.8833% 30 April 2024 6 May 2024
Meeting the Company on
Meeting
CNINFO
(www.cninfo.com.cn)
2. Extraordinary General Meeting requested by preferred shareholders with restitution of voting right
□Applicable Not applicable
II. Changes of Directors, Supervisors and Senior Executives of the Company
Applicable Not applicable
Name Position Type Date Reason
Resign from the position of
supervisor and chairman of
Chairman of the
the Supervisory Committee
Shum Tze Leung Supervisory Resigned 6 May 2024
of the Company due to
Committee
adjustment of personal
work arrangements.
Resigned from the position
Zhang Dong Director Resigned 25 June 2024 of director due to personal
reasons.
III. Profit Distribution & Conversion of Equity Reserve into Share Capital During the
Reporting Period
□Applicable Not applicable
The Company intends to pay no cash dividend, no bonus shares, and no conversion of equity reserve into share capital for the first
half of the year.
IV. Execution of Stock Incentive Plan, Employee Share Ownership Scheme or Other
Employee Incentives
□Applicable □Not applicable
There were no stock incentive plan, employee share ownership scheme, or other employee incentives and their execution during the
Reporting Period.
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S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 5 Environment and Social Responsibilities
I. Major Environment Issues
The listed company and its subsidiaries are not the major pollutant discharge units announced by the Ministry of Ecology
and Environment
During the Reporting Period, the Company and its subsidiaries were not subject to administrative penalties for
environmental issues
Please refer to other environmental information disclosed by major pollutant discharge units
□Applicable Not applicable
Measures taken to reduce carbon emissions and their SF continuously expanded its green fleet, and promoted
effects during the Reporting Period energy conservation and emission reduction in the
transportation process through multiple measures, including
SF was committed to integrating its corporate value with increasing the investment in new energy vehicles, optimizing
social value. As a socially responsible enterprise, SF had the selection of fuel vehicles, building a system platform to
always upheld sustainable and healthy development, aiming to monitor the energy consumption by its vehicles, and optimizing
set an example and bring along positive impacts to the entire transportation routes by scientific and technological means.
industry and society through the optimization and upgrade of
its operations. Guided by the national “dual carbon” (i.e., The Company adopted multiple means to strengthen the
carbon peaking and carbon neutrality) strategy and aiming to investment in and utilization of new energy vehicles. It
protect the environment and conserve energy and reduce explored the mechanism of efficient operation of new energy
emissions, the Company incorporated climate change response logistics vehicles jointly with its partners to improve the energy
into its operation and management practices and continuously use efficiency in transportation and mitigate the impact on the
improved its environmental management system. Through environment. The transportation scenarios of its new energy
initiatives such as promoting low-carbon transportation, vehicles mainly covered short-distance branch lines, shuttling
constructing green industrial parks, R&D of sustainable and end delivery in cities, as well as first- and second-tier trunk
packaging and applying green technology, SF strived to realise transportation across provinces and cities. As of the end of the
green management which would cover the entire lifecycle of Reporting Period, SF had more than 34,000 new energy
logistics, to promote green and sustainable logistics in a vehicles in operation for transportation, covering 250 cities. For
proactive manner. long-distance transportation and transportation in cold areas in
northern China, the Company had conducted pilot by
Building on past achievements in carbon reduction, SF introducing hydrogen fuel and LNG natural gas vehicles.
had released the “White Paper on Carbon Goals”, which was
the first one of such like in the industry, committing to, by 2030, 2. Constructing green industrial parks
improving its carbon efficiency by 55% compared to 2021 and
reducing the carbon footprint of each parcel by 70% compared SF was committed to constructing green and low-carbon
to 2021. In addition, in 2023, the Company announced its industrial parks. Through the introduction of distributed
joining of the Science Based Carbon Targets initiative (SBTi), photovoltaic projects, the optimization of warehouse space
and pledged to achieve "net-zero emissions" of greenhouse layout and intelligent energy consumption management, SF
gases along its value chain by 2050. By virtue of its strived to promote the improvement in its transit efficiency and
outstanding efforts in improving the environment, caring for energy-saving efficiency, mitigating the impact of its logistics
employees, and engaging in philanthropy, the Company had transit on the environment. The Company continuously
been honourably selected into the list of ESG influence in increased the utilization of clean energy and actively
China released by Fortune for three consecutive years (2022- implemented renewable energy power generation plans. As of
2024), being the only express delivery and logistics company in the end of the Reporting Period, we had completed the
China to be on that list. construction of the roof photovoltaic power stations in 21
industrial parks, with a total installed capacity exceeding 89
1. Promoting low-carbon transportation MW a renewable energy power generation exceeding 42.5
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S.F. Holding Co., Ltd. 2024 Interim Report
million kWh and a clean energy consumption exceeding 21,000 Fully biodegradable packaging: SF actively engaged in
MWh during the first half of the year. Moreover, SF’s industrial the research and development of biodegradable packaging
parks in Changsha, Foshan and Wuhu had been awarded the materials, collaborating with external research institutions and
"First-Class (Three-Star) Green Warehouse" certification from universities to conduct a series of research, continuously
the China Association of Warehousing and Distribution expand and deepen its knowledge of cutting-edge
(CAWD), SF’s industrial park in Guizhou had been certified as biodegradable packaging technologies. As of the end of June
“Green Logistics Park in Guizhou”, and Shunxinhui Hubei 2024, SF had deployed over hundreds of million "Feng Bag" in
Logistics Center ( 顺 新 晖 湖 北 物 流 中 心 ) had passed the various regions such as Beijing, Hainan, Guangzhou, and
certification for carbon neutrality for the first stage. Northern Zhejiang.
3. R&D of sustainable packaging 4. Developing green technology
Actively responding to the development trend of green SF had always been committed to empowering its logistics
packaging, SF continuously strengthened its technological and supply chain services with technological innovation. It
innovation, transformation and application of green package digitized the entire operational process from pickup and
materials, and comprehensively promoted the reduction, delivery to transfer and transportation, integrating data
recycling, harmlessness, and standardization of packaging. forecasting, visualization monitoring and early warning
Additionally, SF continued to explore the refined management systems, which enabled intelligent planning and scheduling,
of sustainable packaging, and worked closely with upstream dynamic resource matching, and flat and efficient management
and downstream partners along the industry chain to build a throughout the network. By incorporating IoT technology,
circular ecosystem for express delivery packaging in a automation and unmanned systems, SF enhanced its
proactive manner, so as to jointly foster the development of operational efficiency and input the power of technology into
sustainable packaging. every stage of parcel delivery, contributing to quality
enhancement, efficiency improvement, and low carbon and
Minimum packaging: SF continuously promoted the emission reduction across the entire "pickup-transfer-
green packaging plan, and provided detailed packaging transportation-delivery" process.
operation instructions for different types of consignments to
implement the green packaging requirements. Meanwhile, the At the terminal stage (i.e., pickup and delivery), SF
Company conducted innovative research and development on expanded its business coverage and provided efficient, cost-
the minimization, standardization and scene-based application effective and low-carbon logistics transportation services
of eight types of materials, including plastic bags, plastic through the application of intelligent technology. At the transfer
papers, stickers and seals. During the first half of 2024, SF stage, SF optimized the allocation of warehouse resources with
reduced the utilization of raw paper by approximately 23,000 the aid of data, and introduced fully automated sorting and site
tons and plastic by approximately 82,000 tons in aggregate. management systems, to enhance the efficiency of its
warehouse and transfer and improve the efficiency of its energy
Recyclable packaging and containers: SF actively utilization. At the transportation stage, SF utilized smart
promoted the innovative R&D of recyclable packaging mapping for route planning, in which factors such as parcel’s
containers, providing complete and recycled package solutions timeliness and distance were taking into consideration to
for customers within and outside the industry. Depending on provide the optimal route through intelligent algorithms.
various industries and scenarios, the Company had developed Additionally, leveraging data analysis and deep learning
and deployed recyclable packaging and containers such as technology, SF integrated freight routes and transportation
medical precision temperature-controllable boxes, cold chain resources to achieve precise matching of vehicles and goods,
circulating insulation boxes, standard large-scale recyclable thereby enhancing transportation efficiency.
pallet boxes, recyclable honeycomb panels, and recyclable
woven bags. Meanwhile, the Company has continued to build Furthermore, SF continued to improve the standardization
recyclable science and technology to realize the digitized and and refined management of carbon data. With the industry-
transparent management of recyclable packaging materials leading scientific and technological innovation capability, the
throughout the whole lifecycle, and to promote the overall Company has independently developed the whole-link logistics
improvement of internal management and recycling efficiency. carbon footprint management system “Fenghe Sustainable
In the first half of 2024, a total of 19.48 million recyclable Development Platform”, which covers more than 240 types of
packaging containers were put into circulation, with a transportation carriers in the logistics industry, realizing full
cumulative cycle of nearly 600 million times, reducing coverage of all transportation means and scenarios in land, rail,
greenhouse gas emissions by more than 190,000 tons. sea and air, and has not only been certified by ISO 14064, but
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S.F. Holding Co., Ltd. 2024 Interim Report
also won the authoritative certification of “ISO 14083 supply chain. At the same time, it can help customers reduce
International Standard for Global Carbon Accounting in compliance costs in environmental compliance costs and
Logistics” in the first half of 2024. In the first half of 2024, it climate risks, and comprehensively enhance the resilience of
will be awarded the authoritative certification of “ISO 14083 the logistics supply chain's green and low-carbon operations.
International Standard for Carbon Accounting in Global As of the end of the Reporting Period, more than 40 world-
Logistics”. As the industry's first digital carbon management renowned customers have used the “Fenghe Sustainable
platform that realizes carbon footprint tracking at the waybill Development Platform” to monitor carbon emission data.
level, it not only accurately calculates the real greenhouse gas
emissions and emission reductions generated by each shipment SF leveraged technology to drive green and low-carbon
in the “receiving, transferring, transporting, and dispatching” transformation while wishing to extend green values to the
stages to enhance the transparency of greenhouse gas emission supply chain. It advocated and collaborated with upstream and
data in the logistics supply chain, but also helps customers to downstream partners to accelerate the transition to low carbon,
reduce fulfillment costs in environmental protection and to jointly fulfil the responsibility of protecting the Earth,
climate risks in operations, thus comprehensively improving achieving green development and building a zero-carbon future
the green and low-carbon operational resilience of the logistics together.
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II. Social Responsibilities
Consolidating and extending the achievements in poverty alleviation and advancing rural
revitalization:
Positioned as a leading integrated logistics service provider in China, SF has always closely integrated corporate development with
social responsibility. It has continuously focused on the agricultural product delivery sector, consolidated and expanded the
achievements in poverty alleviation, and supported rural revitalization. In 2024, SF proactively aligned its strategies with national
policies, resolutely focused on its core logistics strategy, collaborated with local governments to create regional agricultural product
brands, and at the same time establishing and building online sales channels for agricultural products, thus achieving the unification
of the Company’s business development and social value.
The Central Document No. 1 in 2024 emphasized the need to “deeply promote the development of a sound logistics and distribution
system for rural areas, and foster the integrated growth of 'customer-cargo-mail' in villages; optimize the construction of the cold
chain logistics system for agricultural product, accelerate the building of backbone cold chain logistics bases, and deploy county-
level public cold chain logistics facilities.” Establishing a sound three-tier logistics system for counties, towns and villages is at the
core of the “delivering express parcels to rural areas” and “delivering express parcels to villages” initiatives.
In response to the promotion of "agriculture, rural areas and farmers" work process, SF focused on tackling the various challenges in
the circulation process of agricultural products, such as difficult packaging, multiple links, perishability and low profit margins. It
proposed an agricultural assistance model that aims to “not only distributing quality agricultural products to the market, but also
promoting the exceptional brands of agricultural products to the market.” By leveraging its high-quality resources, SF has made full
efforts to unblock the last-mile logistics channels connecting rural consumption upgrades and the market access for agricultural
products.
At the "last-mile" level, SF insisted on establishing agricultural product collection outlets right at the farm fields, invested in mobile
sorting vehicles tailored for small-batch allocation, and built fresh products pretreatment centers close to the places of origin. For the
wide variety of fresh produce, SF designed exclusive packaging to ensure freshness and safety of the products. During the harvest
season of characteristic agricultural products, the Company integrated various transportation resources, such as aviation, high-speed
railway and cold chain, to ensure efficient and high-speed transport of agricultural products across the country. To ensure the service
quality throughout the process, the Company set up a special project team during the "fresh season" to monitor and warn each link of
collection, transfer, transportation, delivery and after-sales service in real time with the help of the digital technology and
visualization system. Leveraging its robust logistics network, advanced packaging technology and fast delivery capability, SF
overcame one after another high-difficulty transportation of fresh products, assisting in the express transportation of products such as
hairy crabs, live fish, seafood, beef and mutton, lychees, cherries, bayberries, strawberries and matsutake, to achieve a nationwide
direct delivery and direct-to-consumers mode of agricultural products from the place of origin.
Regional characteristic agricultural products play an important role in rural industrial development. In the context of comprehensive
rural revitalization, the brand value and market scale of these products will see greater development opportunities. In this process, SF
has been committed to driving the coordinated development of the upstream and downstream of the agricultural industry chain, with
the goal of boosting the supply-side of rural industries. Through reasonable transportation pricing and high-quality services, SF aims
to help increase farmers' incomes and achieve common prosperity. At the same time, SF also actively collaborated with local
governments, rural cooperatives and other institutions to build regional agricultural product brands, promote brand building, and
establish designated fund subsidy mechanism for customization of packaging materials for regional brands. In the first half of 2024,
the Company closely partnered with local governments, industry associations and leading brands to jointly build 35 regional brands
for agricultural products.
As the "Internet +" economy flourishing, the Company leveraged its own platforms to conduct rhythmic and high-volume online
promotion of agricultural products, and also collaborated with external resources to co-build agricultural product brands and sales
ecosystems. Through partnerships with the government, client live streamers and local fruit farmers, and with the help of the
Company's brand influence and Internet celebrities (KOLs) and influencers, SF organized live broadcasts at the places of origins to
boost the sales volume of agricultural products. At the same time, SF empowered agricultural digitalization by providing customers
with a series of technology services, such as product traceability and "one QR code for each store", and deployed its proprietary
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S.F. Holding Co., Ltd. 2024 Interim Report
unmanned equipment in core production areas of agricultural products, establishing low-altitude logistics routes to deliver more
convenient and efficient delivery services for farmers. In addition, under the background of "dual carbon", SF steadfastly fulfilled its
corporate social responsibility and continued to promote the building of a green and low-carbon supply chain ecosystem by
advancing low-carbon transportation, using green and eco-friendly packaging materials for agricultural products, and developing
green technology applications.
At present, the Company's service network for helping production and sales of agricultural products covered more than 2,700 county-
level cities nationwide, encompassing 226 types of more than 5,500 characteristic agricultural products nationwide, and about 2.90
million tons of characteristic agricultural products were delivered in the first half of 2024. SF contributed to rural revitalization with
practical actions, allowing more local brand characteristic agricultural products to be known, tasted and recognized by the public. In
the future, SF will further consolidate its comprehensive logistics advantages, focus on refined services, production-sales assistance,
technology empowerment and brand building to construct a nationwide service network for upstreaming agricultural products, and is
committed to becoming a benchmark enterprise that continuously creates outstanding social value.
In addition, the Company has actively explored the "delivering express parcels to rural areas" and “delivering express parcels to
villages” models over the years, through the establishment of a five-level administrative division address library, supported the
decision-making of township and village resource investment, accurately identified rural parcels, and ensured the timeliness
commitment of express delivery to villages, creating a high-quality "precision delivery to villages" service. As of June 2024, SF had
more than 100,000 cooperative stations at the village level, gradually forming a relatively complete rural express network. The
service network's township coverage rate exceeded 93%, and the daily processing volume of township parcels amounted to 2.46
million. Based on the high-quality logistics services, the extension to the front end of the industrial chain to the full-process service
allowed farmers to enjoy more convenient and fast express services in the village.
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Chapter 6 Significant Events
I. Commitments Made by the Company’s Actual Controllers, Shareholders, Related Parties,
Purchasers, the Company and Others that Were Fulfilled During the Reporting Period and
Those Not Fulfilled before the Expiry as of the End of the Reporting Period
□Applicable Not applicable
During the Reporting Period, there were no commitments made by the Company’s actual controllers, shareholders, related parties,
purchasers, the Company and others that were fulfilled during the Reporting Period and those not fulfilled before the expiry as of the
end of the Reporting Period
II. Status of Capital of the Listed Company Used for Non-operating Purposes by the
Controlling Shareholder and Other Related Parties
□Applicable Not applicable
During the Reporting Period, no controlling shareholders or other related parties used capital of the listed Company for non-operating
purposes.
III. Non-compliant Provision of External Guarantees
□Applicable Not applicable
There was no non-compliant provision of external guarantees of the Company during the Reporting Period.
IV. Details Regarding Engagement and Removal of Accountant Firm
Whether the interim financial report has been audited?
□ Yes No
The interim report of the Company has not been audited.
V. Explanations Provided by the Board of Directors and Supervisory Committee Regarding
the "Non-standard Audit Report" Issued by the Auditor for the Reporting Period
□Applicable Not applicable
VI. Explanations Provided by the Board of Directors Regarding the "Non-standard Audit
Report" of the Previous Year
□Applicable Not applicable
VII. Bankruptcy and Reorganisation
□Applicable Not applicable
There were no bankruptcy or reorganisation related matters of the Company as at the end of the Reporting Period.
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S.F. Holding Co., Ltd. 2024 Interim Report
VIII. Lawsuit
Significant lawsuit or arbitration
□Applicable Not applicable
There was no significant lawsuit or arbitration related matters of the Company during the Reporting Period.
Other legal proceedings
□Applicable Not applicable
As of 30 June 2024, pending litigation and arbitration in which the listed company and its subsidiaries as defendants and respondents
involved an aggregate amount of RMB980 million, accounting for 1.1% of audited net assets attributable to shareholders of the listed
company at the end of the 2023. Such litigation and arbitration matters mainly related to a number of independent cases with small
amounts involved in each single case, which will not have a material adverse effect on the Company’s financial status and ability to
continue operations.
IX. Punishment and Rectification
□Applicable Not applicable
There was no such situation during the Reporting Period.
X. Integrity of the Company, Its Controlling Shareholders, and Actual Controller
□Applicable Not applicable
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XI. Significant Related-party Transactions
1. Related-party transactions relevant to routine operations
Applicable Not applicable
Pricing Approved Related- Market
Related- Proportion Approved
Type of Details of related- principle of Transaction quota party price
Related party of same transaction Disclosure Disclosure
Relationship related-party party the related- amount exceeded transaction of similar
Party transaction category of quota date index
transaction transaction party (RMB’000) or settlement transactions
price transactions (RMB'000)
transaction not method available
Comprehensive
services such as
communication
Provide services service, Not December
Guangdong 27,680 0.02% 75,000 No
An entity to related parties technology applicable 13, 2023
Fengxing
controlled services and Announcements on
Zhitu
by the actual property the “Proposal on
Technology
shareholder management Estimated Routine
Co., Ltd. Fair pricing
of the Logistics map Settlement Related-party
and its based on Contract
Company Receive services data call, based on Transaction Amount
subsidiaries market price
and relevant technology the Not December in 2024-2026” and
prices 203,860 0.18% 698,770 No
equipment from service, on- settlement applicable 13, 2023 the “Increase in
following
related parties vehicle software period and Estimated Routine
the principle
and hardware terms in Related-party
of
Logistics services the Transaction Amount”
independent
such as express contract released by the
Shenzhen Provide services transactions. Not December
An entity delivery and 6,976 0.01% 15,000 No Company on the
Fengxiang to related parties applicable 13, 2023
controlled transportation Cninfo website
Information (www.cninfo.com.cn)
by the actual and warehousing
Technology
shareholder Purchase of
Co., Ltd. Purchase of
of the goods and
and its goods/equipment Not December
Company platform 126,420 0.11% 420,000 No
subsidiaries from related applicable 13, 2023
technology
parties
services, etc.
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S.F. Holding Co., Ltd. 2024 Interim Report
Logistics services
December
such as express
Provide services Not 13, 2023
delivery and 700,549 0.52% 1,800,000 No
to related parties applicable March 27,
transportation
2024
and warehousing
An entity Comprehensive
Hive Box
controlled services such as
Holdings
by the actual communication
Limited and Provide services Not December
shareholder service and 11,753 0.01% 39,000 No
its to related parties applicable 13, 2023
of the property
subsidiaries
Company management
services
Receive services
Agent services,
and relevant Not December
advertisement 54,489 0.05% 322,630 No
equipment from applicable 13, 2023
services, etc.
related parties
Total -- -- 1,131,727 -- 3,370,400 -- -- -- -- --
Details of large amount of sales returns Nil
The Company’s ninth meeting of the sixth session of the Board of Directors held on December 12, 2023 and the seventh meeting of the sixth session of
the Supervisory Committee and the Second Extraordinary General Meeting of Shareholders of 2023 on December 28, 2023, respectively, reviewed and
Actual performance in the Reporting Period versus predicted total approved the “Proposal on Estimated Routine Related-party Transaction Amount in 2024-2026”; and the twelfth meeting of the sixth session of the
amount of routine related-party transactions, by types (if any) Board of Directors and the eighth meeting of the sixth session of the Supervisory Committee held on March 26, 2024 and the Annual General Meeting
of 2023 held on April 30, 2024, respectively, reviewed and approved the “Proposal on Increase in Estimated Routine Related-party Transaction
Amount”. The amount incurred by aforementioned related-party transactions is within the estimated range.
Reason for significant discrepancy between the transaction price and
Not applicable
the market price (if applicable)
2. Related-party transactions relevant to purchases and sales of assets or equities
□Applicable Not applicable
There were no related-party transactions of the Company in respect of acquisition or disposal of asset of equity during the Reporting Period.
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Related-party transactions with joint investments
□Applicable Not applicable
There were no related-party transactions with joint investment of the Company as at the end of the Reporting Period.
4. Credits and liabilities with related parties
□Applicable Not applicable
There were no credits and liabilities with related parties of the Company during the Reporting Period.
5. Transactions between the Company and financial companies with related party relationship
□Applicable Not applicable
There were no deposits, loans, credits or other financial business of the Company between the Company and and financial companies with related party relationship.
6. Transactions between financial companies controlled by the Company and related parties
□Applicable Not applicable
There were no deposits, loans, credits or other financial business between financial companies controlled by the Company and related parties.
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S.F. Holding Co., Ltd. 2024 Interim Report
7. Other significant related-party transactions
Applicable Not applicable
There were no other significant related-party transactions of the Company during the Reporting Period.
XII. Significant Contracts and Their Execution
1. Trusteeships, contracts, and leases
(1) Trusteeships
Applicable Not applicable
There were no material trusteeships of the Company during the Reporting Period.
(2) Contracts
Applicable Not applicable
There were no material contracts of the Company during the Reporting Period.
(3) Leases
Applicable Not applicable
There were no material leases of the Company during the Reporting Period.
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S.F. Holding Co., Ltd. 2024 Interim Report
2. Significant guarantees
Applicable Not applicable
Unit: RMB'000
The Company and its subsidiaries’ guarantees to external parties (Guarantees to subsidiaries are not included)
Disclosure
date of related Counter Guarantee
Actual Fulfilled
announcement Guarantee Exact date of Type of Collateral guarante Period of for a
Guaranteed party guarantee or
of quota occurrence guarantee (if any) e guarantee related
amount not
guarantee (if any) party or not
quota
Joint and
29 September
Hubei International Logistics 25 February several
24 March 2020 3,500,000 25,300 Nil Nil 2021 to 29 No No
Airport Co., Ltd. 2021 liability
April 2055
guarantee
Joint and
30 November
Hubei International Logistics 25 February several
24 March 2020 3,500,000 50,600 Nil Nil 2021 to 29 No No
Airport Co., Ltd. 2021 liability
April 2055
guarantee
Joint and
8 October 2021
Hubei International Logistics 25 February several
24 March 2020 3,500,000 20,700 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
29 November
Hubei International Logistics 25 February several
24 March 2020 3,500,000 96,600 Nil Nil 2021 to 29 No No
Airport Co., Ltd. 2021 liability
April 2055
guarantee
Joint and
1 December
Hubei International Logistics 25 February several
24 March 2020 3,500,000 36,800 Nil Nil 2021 to 29 No No
Airport Co., Ltd. 2021 liability
April 2055
guarantee
Joint and
3 December
Hubei International Logistics 25 February several
24 March 2020 3,500,000 46,000 Nil Nil 2021 to 29 No No
Airport Co., Ltd. 2021 liability
April 2055
guarantee
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S.F. Holding Co., Ltd. 2024 Interim Report
Joint and
1 January 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 276,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
4 January 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 23,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
5 January 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 69,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
27 May 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 46,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
30 May 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 69,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and
31 May 2022
Hubei International Logistics 25 February several
24 March 2020 3,500,000 23,000 Nil Nil to 29 April No No
Airport Co., Ltd. 2021 liability
2055
guarantee
Joint and 8 December No No
8 December several 2023 to 8
SUPER WISE (HK) LIMITED 29 March 2023 210,000 167,552 Nil Nil
2023 liability December
guarantee 2026
Total guarantee quota approved for external Total actual amount of guarantees
1,200 -
parties during the Reporting Period (A1) for external parties during the Reporting Period (A2)
Total guarantee quota approved for external Total actual guarantee balance for
3,334,932 949,552
parties at the end of the Reporting Period (A3) external parties at the end of the Reporting Period (A4)
The Company’s guarantees to subsidiaries
Disclosure Actual Collateral Counter Fulfilled Guarantee
Guarantee Exact date of Type of Period of
Guaranteed party date of related guarantee (if guarante or for a
quota occurrence guarantee guarantee
announcement amount any) e (if not related
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S.F. Holding Co., Ltd. 2024 Interim Report
of guarantee any) party or not
quota
Joint and
20 February
SF HOLDING INVESTMENT 20 February several
4 January 2019 6,000,000 4,974,503 Nil Nil 2020 to 20 No No
LIMITED 2020 liability
February 2030
guarantee
Joint and
20 February
SF HOLDING INVESTMENT 20 February several
4 January 2019 6,000,000 4,659 Nil Nil 2020 to 12 Yes No
LIMITED 2020 liability
March 2024
guarantee
Joint and
20 February
SF HOLDING INVESTMENT 20 February several
4 January 2019 6,000,000 109,033 Nil Nil 2020 to 28 Yes No
LIMITED 2020 liability
June 2024
guarantee
Joint and 17 November
17
SF Holding Investment 2021 10 February several 2021 to 17
18,000,000 November 2,907,540 Nil Nil No No
Limited 2021 liability November
2021
guarantee 2026
Joint and 17 November
17
SF Holding Investment 2021 10 February several 2021 to 17
18,000,000 November 2,180,655 Nil Nil No No
Limited 2021 liability November
2021
guarantee 2028
Joint and 17 November
17
SF Holding Investment 2021 10 February several 2021 to 17
18,000,000 November 3,229,521 Nil Nil No No
Limited 2021 liability November
2021
guarantee 2031
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 1,817 Nil Nil 2021 to 27 Yes No
Limited 2021 liability
2021 February 2024
guarantee
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 1,454 Nil Nil 2021 to 5 Yes No
Limited 2021 liability
2021 March 2024
guarantee
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 113,395 Nil Nil 2021 to 12 Yes No
Limited 2021 liability
2021 March 2024
guarantee
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S.F. Holding Co., Ltd. 2024 Interim Report
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 234,786 Nil Nil 2021 to 19 Yes No
Limited 2021 liability
2021 March 2024
guarantee
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 3,634 Nil Nil 2021 to 9 April Yes No
Limited 2021 liability
2021 2024
guarantee
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 1,454 Nil Nil 2021 to 29 Yes No
Limited 2021 liability
2021 April 2024
guarantee
Joint and
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 3,634 Nil Nil 2021 to 29 Yes No
Limited 2021 liability
2021 May 2024
guarantee
Joint and Nil Nil
17 17 November
SF Holding Investment 2021 10 February several
18,000,000 November 44,732 2021 to 14 Yes No
Limited 2021 liability
2021 June 2024
guarantee
Joint and Nil Nil 18 January
SF Holding Investment 2021 10 February 18 January several 2022 to 17
18,000,000 2,907,540 No No
Limited 2021 2022 liability November
guarantee 2026
Joint and Nil Nil 18 January
SF Holding Investment 2021 10 February 18 January several 2022 to 17
18,000,000 2,180,655 No No
Limited 2021 2022 liability November
guarantee 2031
Total guarantee quota approved for Total actual amount of guarantees
5,020,000 -
subsidiaries during the Reporting Period (B1) for subsidiaries during the Reporting Period (B2)
Total guarantee quota approved for the Total actual guarantee balance
23,400,414 18,380,414
subsidiaries at the end of the Reporting Period (B3) for subsidiaries at the end of the Reporting Period (B4)
Subsidiary's guarantees to subsidiaries
Disclosure Actual Collateral Counter Fulfilled Guarantee
Guarantee Exact date of Type of Period of
Guaranteed party date of related guarantee (if guarante or for a
quota occurrence guarantee guarantee
announcement amount any) e (if not related
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S.F. Holding Co., Ltd. 2024 Interim Report
of guarantee any) party or not
quota
Subject to Joint and Subject to the
16 March 2019
Subsidiaries of SF Holding (with the actual several actual Partially
24 March 2020 68,350,846 16,057,786 Part Part No
gearing ratio of 70% or above) guarantee liability guarantee fulfilled
18 March 2021
contract guarantee contract
7 January 2022
Subject to Joint and Subject to the
31 March 2022
Subsidiaries of SF Holding (with the actual several actual Partially
29 March 2023 27,470,988 8,961,536 Part Part No
gearing ratio below 70%) guarantee liability guarantee fulfilled
27 March 2024
contract guarantee contract
Total guarantee quota approved for Total actual amount of guarantees
54,978,800 5,895,658
subsidiaries during the Reporting Period (C1) for subsidiaries during the Reporting Period (C2)
Total guarantee quota approved for the Total actual guarantee balance
79,678,777 18,503,137
subsidiaries at the end of the Reporting Period (C3) for subsidiaries at the end of the Reporting Period (C4)
Total guarantee amount provided by the Company (namely total of the first three major items)
Total guarantee quota approved during the Total actual amount of
60,000,000 5,895,658
Reporting Period (A1+B1+C1) guarantee during the Reporting Period (A2+B2+C2)
Total guarantee quota approved at the end of Total actual guarantee balance
106,414,123 37,833,103
the Reporting Period (A3+B3+C3) at the end of the Reporting Period (A4+B4+C4)
Total guarantee amount (A4+B4+C4) to net assets of the Company at the end of
42.71%
the Reporting Period
Of which:
Balance of guarantee for shareholders, actual controller, and affiliates thereof (D) -
Balance of debt guarantee provided for guaranteed party whose asset-liability ratio is
26,794,338
not less than 70% directly or indirectly (E)
Amount of total guarantee in excess of 50% of net assets (F) -
Total amount of the above three guarantees (D+E+F) 26,794,338
Explanation on guarantee liabilities occurred or possible joint and several liabilities of
repayment with evidence during the Reporting Period (if any) for unexpired guarantee N/A
contracts
Explanation on provision of guarantees for external parties in violation of the
N/A
prescribed procedure (if any)
Descriptions on the use of composite guarantees（Not applicable）
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S.F. Holding Co., Ltd. 2024 Interim Report
3. Wealth managed under trust
Applicable Not applicable
Unit: RMB'000
Maximum Daily
Impairment
Balance of
Funding Source Overdue Provision
Such Entrusted Unexpired
Type for Entrusted Outstanding of Overdue
Funds During Balance
Funds Amount Outstanding
the Reporting
Funds
Period
Bank wealth
management Self-owned funds 26,400,000 17,700,000 - -
products
Total 26,400,000 17,700,000 - -
Note: The maximum single day balances for each type of entrusted wealth management in the above table occur on different dates
and direct sum totals do not represent the maximum single day balances for all of the Company’s wealth management.
Details of individual items with significant amount or of low-safety, poor-liquidity and high-risk wealth management products
Applicable Not applicable
It is expected that the principal of entrusted financing cannot be recovered, or there may be other circumstances that may result in
impairment
Applicable Not applicable
4. Other significant contracts
Applicable Not applicable
There were no significant contracts of the Company during the Reporting Period.
XIII. Other Significant Events
Applicable Not applicable
(I) The Company’s Repurchase of its Shares
1. Share repurchase program in January 2024
Based on the confidence in future development prospects and high recognition of the Company's value, and after taking into
comprehensive consideration of business development prospects, operational conditions, financial status, future profitability and the
performance of the Company’s shares in the secondary market, the Company launched a share repurchase program in January 2024
to repurchase its shares in the secondary market with its own funds. The Company held the eleventh meeting of the sixth session of
the Board on January 30, 2024, at which the “Resolution on the Company's Share Repurchase Program through Centralized Bidding”
was considered and approved. The total repurchase amount should be not less than RMB0.5 billion and not more than RMB1 billion
with a repurchase price of not more than RMB55/share and a repurchase period of 6 months from the date of consideration and
approval of the repurchase program by the Board of the Company.
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S.F. Holding Co., Ltd. 2024 Interim Report
As at April 26, 2024, the share repurchase program was completed. A total of 28,240,207 shares had been repurchased during
the repurchase period with a total repurchase amount of approximately RMB1 billion (excluding transaction expenses), which
represent approximately 0.59% of the existing total share capital of the Company. The average transaction price for the repurchased
shares was RMB35.41 per share.
2. Changing the use of repurchased shares and cancellation
To effectively protect the interests of investors, enhance investor confidence, and improve the long-term investment value of the
Company, the "Resolution on the Change of the Use of Repurchased Shares and Cancellation” was considered and approved at the
twelfth meeting of the sixth session of the Board and the 2023 annual general meeting of the Company held on March 26, 2024 and
April 4, 2024 respectively. It was agreed to change the use of repurchased shares as set out in the share repurchase programs in
March 2022, September 2022 and January 2024 from the original use of "the repurchased shares being used for the employee stock
ownership plan or equity incentive" to "the actually repurchased shares being used for cancellation and reduction of registered
capital".
After the change of the use of repurchased shares, a total of 79,291,153 shares which were repurchased according to the share
repurchase programs of the Company in March 2022, September 2022 and January 2024 was required to be cancelled. The Company
had completed the procedures for cancelling the above-mentioned shares with the Shenzhen branch of China Securities Depository
and Clearing Corporation Limited on June 20, 2024, after which the total share capital of the Company was changed from
4,895,202,373 shares to 4,815,911,220 shares.
3. Second share repurchase program in 2024
With a view to further improving the long-term incentive mechanism of the Company and fully motivating its key and
outstanding employees to jointly promote its long-term development, and after taking into comprehensive consideration of business
development prospects, operational conditions, financial status, future profitability and the performance of the Company’s shares in
the secondary market, the Company launched the second share repurchase program in 2024 to repurchase its shares in the secondary
market with its own funds. The Company held the thirteenth meeting of the sixth session of the Board on April 29, 2024, at which the
“Resolution on the Second Share Repurchase Program in 2024” was considered and approved. The total repurchase amount should
be not less than RMB0.5 billion and not more than RMB1 billion with a repurchase price of not more than RMB53/share and a
repurchase period of 12 months from the date of consideration and approval of the repurchase program by the Board of the Company.
As at June 30, 2024, the Company had repurchased a total of 10,199,584 shares by means of centralised bidding through its
specific securities account for repurchase with a total repurchase amount of approximately RMB0.378 billion (excluding transaction
expenses), which represent approximately 0.21% of the existing total share capital of the Company. The average transaction price for
the repurchased shares was RMB37.10 per share. As at July 31, 2024, the Company had repurchased a total of 14,935,758 shares
with a total repurchase amount of approximately RMB546,188,401.16 (excluding transaction expenses), which represent
approximately 0.31% of the existing total share capital of the Company. The average transaction price for the repurchased shares was
RMB36.57 per share.
(II) Issuance of domestic and overseas debt financing products by wholly-owned subsidiaries
In alignment with the Company's development strategy and to meet its business needs, the Company issued debt financing
products domestically through its wholly-owned subsidiary, Taisen Holdings, during the Reporting Period. Pursuant to the Notice of
Acceptance of Registration (Zhong Shi Xie Zhu [2022] No. DFI14) issued by the National Association of Financial Market
Institutional Investors, Taisen Holdings issued the first, second, and third tranches of 2024 super & short-term commercial papers on
March 7, 2024, March 14, 2024 and June 20, 2024, respectively, with a total issuance size of RMB1 billion, RMB500 million, and
98
S.F. Holding Co., Ltd. 2024 Interim Report
RMB800 million, respectively. Additionally, Taisen Holdings issued the first tranche of 2024 medium-term notes on April 23, 2024,
with a total issuance size of RMB500 million.
According to the CSRC's "Approval relating to the Registration of Corporate Bonds Publicly Issued to Professional Investors of
Shenzhen S.F. Taisen Holdings (Group) Co., Ltd." (Zheng Jian Xu Ke [2024] No. 37), Taisen Holdings completed the issuance of the
first tranche of the 2024 public short-term corporate bonds on March 13, 2024, with a total issuance size of RMB500 million.
(III) The Preparation for the Issuance and Listing of H Shares
In order to further promote its globalization strategy, build an international capital operation platform, enhance its international
brand image and improve its overall competitiveness, the Company plans to issue overseas listed foreign shares (H-shares) and apply
for listing on the Main Board of The Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Issuance and Listing").
Upon approval at the First Extraordinary General Meeting of 2023 on August 17, 2023, the Company will take into full consideration
the interests of the existing shareholders and the conditions of domestic and overseas capital markets, and will select timing and
window as appropriate to complete the Issuance and Listing within the validity period of the resolution of the general meeting (i.e. 18
months from the date of consideration and approval at the general meeting of the Company, or such other period as may be agreed to
be extended).
On May 31, 2024, the CSRC issued the "Notice of Overseas Issuance and Listing Filing of S.F. Holding Co., Ltd." (Guo He Han
[2024] No. 1156), indicating that the Company’s Issuance and Listing have been filed with and approved by the CSRC. According to
the schedule for this Issuance and Listing, the Company submitted the application for the Issuance and Listing to the Hong Kong
Stock Exchange on June 28, 2024. The Issuance and Listing of the Company is subject to the approval, ratification by the relevant
governmental authorities and regulatory authorities such as the HK SFC and the Hong Kong Stock Exchange, and is still subject to
uncertainties. The Company will fulfill its information disclosure obligations in a timely manner according to the progress of the
aforementioned matter.
The disclosure index of the above significant events and other significant events is as follows:
Date of
Interim announcements Website for disclosure
disclosure
Announcement on the Approval of the CSRC for the Registration of
Corporate Bonds Issued Publicly by Shenzhen S.F. Taisen Holdings January 12, 2024 CNINFO (www.cninfo.com.cn)
(Group) Co., Ltd. to Professional Investors
Announcement on the Implementation of Employees Incentive Scheme CNINFO (www.cninfo.com.cn)
January 31, 2024
by way of Centralized Bidding for Repurchase of Shares
Announcement on the Initial Repurchase of Shares of the Company and CNINFO (www.cninfo.com.cn)
February 1, 2024
the Progress of the Repurchase
Announcement on Progress of Repurchase of Shares of the Company March 2, 2024 CNINFO (www.cninfo.com.cn)
Announcement on the Results of the Issuance of the First Tranche of CNINFO (www.cninfo.com.cn)
Super & Short-term Commercial Papers for 2024 by Shenzhen S.F. March 12, 2024
Taisen Holdings (Group) Co., Ltd., a Wholly-owned Subsidiary
Announcement on the Results of the Issuance of the First Tranche of CNINFO (www.cninfo.com.cn)
Corporate Bonds for 2024 by Shenzhen S.F. Taisen Holdings (Group) March 14, 2024
Co., Ltd., a Wholly-owned Subsidiary, to Professional Investors
Announcement on the Results of the Issuance of the Second Tranche of CNINFO (www.cninfo.com.cn)
Super & Short-term Commercial Papers for 2024 by Shenzhen S.F. March 16, 2024
Taisen Holdings (Group) Co., Ltd., a Wholly-owned Subsidiary
Announcement on Change of Use of the Repurchased Shares and CNINFO (www.cninfo.com.cn)
March 27, 2024
Cancellation of the Repurchased Shares
Announcement on Progress of Repurchase of Shares of the Company March 28, 2024 CNINFO (www.cninfo.com.cn)
99
S.F. Holding Co., Ltd. 2024 Interim Report
Announcement on Progress of Repurchase of Shares of the Company April 2, 2024 CNINFO (www.cninfo.com.cn)
Announcement on the Results of the Issuance of the First Tranche of CNINFO (www.cninfo.com.cn)
Medium-term Notes for 2024 by Shenzhen S.F. Taisen Holdings April 25, 2024
(Group) Co., Ltd., a Wholly-owned Subsidiary
Announcement on the Results of Implementation of the Share CNINFO (www.cninfo.com.cn)
April 30, 2024
Repurchase Plan in January 2024
Announcement on the Second Tranche of the Share Repurchase Plan for CNINFO (www.cninfo.com.cn)
April 30, 2024
2024
Announcement on Notification to Creditors for Cancellation of CNINFO (www.cninfo.com.cn)
May 6, 2024
Repurchased Shares
Announcement on the Initial Repurchase of Shares under the Second CNINFO (www.cninfo.com.cn)
Tranche of the Share Repurchase Plan for 2024 and the Progress of the May 6, 2024
Repurchase
Announcement Progress of Repurchase of Shares of the Company June 1, 2024 CNINFO (www.cninfo.com.cn)
Announcement on the Filing with the CSRC for the Issuance of the CNINFO (www.cninfo.com.cn)
June 3, 2024
Overseas-Listed Foreign Shares (H Shares)
Announcement on the Results of the Issuance of the Third Tranche of CNINFO (www.cninfo.com.cn)
Super & Short-term Commercial Papers for 2024 by Shenzhen S.F. June 22, 2024
Taisen Holdings (Group) Co., Ltd., a Wholly-owned Subsidiary
Announcement on Completion of Cancellation of the Repurchased CNINFO (www.cninfo.com.cn)
June 22, 2024
Shares and Change of Shares
Announcement on Submission of Application for Listing of Overseas- CNINFO (www.cninfo.com.cn)
Listed Foreign Shares (H Shares) to the Hong Kong Stock Exchange and June 29, 2024
Publication of Application Materials
Announcement on Progress of Repurchase of Shares of the Company July 2, 2024 CNINFO (www.cninfo.com.cn)
Announcement on Progress of Repurchase of Shares of the Company August 1, 2024 CNINFO (www.cninfo.com.cn)
XIV. Significant Events of Subsidiaries
Applicable Not Applicable
100
S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 7 Share Changes and Shareholder Details
I. Changes in Shares
1. Changes in shares
Unit: number of shares
Before Change Increase or Decrease (+or-) After Change
Conversion
of
Number of New
Bonus capital Number of Proporti
Proportion shares Others Subtotal
shares shares reserve shares on
issued
into share
capital
I. Shares subject to
34,083,585 0.70% - - - -6,667,000 -6,667,000 27,416,585 0.57%
restricted sales
1. Shares held by state - - - - - - - - -
2. Shares held by
state-owned legal - - - - - - - - -
person
3. Other shares held
33,992,085 0.69% - - - -6,667,000 -6,667,000 27,325,085 0.57%
by domestic capital
Of which: Other
shares held by
domestic - - - - - - - - -
legal person
Other shares held by
domestic natural 33,992,085 0.69% - - - -6,667,000 -6,667,000 27,325,085 0.57%
person
4. Shares held by
91,500 0.00% - - - - - 91,500 0.00%
overseas capital
Of which: Other
shares held by
overseas - - - - - - - - -
legal person
Other shares held by
overseas natural 91,500 0.00% - - - - - 91,500 0.00%
person
II. Shares not subject
4,861,118,788 99.30% - - - -72,624,153 -72,624,153 4,788,494,635 99.43%
to restricted sales
1. RMB-denominated
4,861,118,788 99.30% - - - -72,624,153 -72,624,153 4,788,494,635 99.43%
ordinary shares
III. Total number of
4,895,202,373 100% - - - -79,291,153 -79,291,153 4,815,911,220 100%
shares
Reasons of share changes
Applicable Not applicable
To maintain investors’ interests, enhance investors’ confidence and increase the long-term investment value, with the confidence
to the future development prospect and the high recognition of our own value, the Company convened the 12th meeting of the sixth
session of the Board on 26 March 2024 and 30 April 2024 and 2023 annual general meeting, at which the Proposal on Change the
101
S.F. Holding Co., Ltd. 2024 Interim Report
Purpose of Share Repurchase and Cancellation was considered and approved. The Company intended to change the purposes of the
share repurchase plans for March and September 2022 and January 2024, changing from the original plan “employee stock
ownership plan or equity incentive plan” to “cancellation and reduction the registered capital”. After changing the purpose of the
shares repurchase, a total of 79,291,153 shares in the special securities account for the repurchase of the Company should be
canceled. The Company completed the registration procedures for the canceling such shares in China Securities Depository and
Clearing Corporation Limited Shenzhen Branch on 20 June 2024. The total share capital of the Company from 4,895,202,373 shares
has been changed to 4,815,911,220 shares after completing the cancellation.
Approval of share changes
Applicable Not applicable
Please refer to the above.
Transfer of share ownership
Applicable Not applicable
Implementation progress of share repurchase
Applicable Not applicable
2024 First Repurchase Plan: The Company convened the 11th meeting of the sixth session of the Board on 30 January 2024, at
which the Proposal on the Plan for Share Repurchase by way of Centralised Bidding was considered and approved. Under the
proposal, the Company was approved to repurchase its certain shares for the employee stock ownership plan or equity incentive with
its own funds. The total amount of repurchase shall not be less than RMB500 million but not exceed RMB1 billion, and the
repurchase price shall not exceed RMB55 per share with a repurchase period of 6 months from the date of consideration and approval
of the repurchase plan by the Board of Directors of the Company. As of 26 April 2024, this repurchase plan has been implemented.
The Company repurchased a total of 28,240,207 shares, with a total repurchase amount of approximately RMB1 billion (excluding
transaction costs), and the number of shares repurchased accounted for 0.59% of the Company's current total share capital, with an
average trading price of RMB35.41 per share. Based on the approval on the 2023 annual general meeting, the purpose of the 2024
first repurchase plan has been changed to cancellation and reduction of the registered capital. During the Reporting Period, the
Company has completed the cancellation procedures for the repurchase of such shares.
2024 Second Repurchase Plan: The Company convened the 13th meeting of the sixth session of the Board on 29 April 2024, at
which the Proposal on the Plan for the 2024 Second Share Repurchase was considered and approved. Under the proposal, the
Company was approved to repurchase its certain shares for the employee stock ownership plan or equity incentive with its own funds.
The total amount of repurchase shall not be less than RMB500 million but not exceed RMB1 billion, and the repurchase price shall
not exceed RMB55 per share with a repurchase period of 12 months from the date of consideration and approval of the repurchase
plan by the Board of Directors of the Company. During the Reporting Period, the Company repurchased a total of 10,199,584 shares,
with a total repurchase amount of approximately RMB378 million (excluding transaction costs), and the number of shares
repurchased accounted for 0.21% of the Company's current total share capital, with an average trading price of RMB37.10 per share.
As of 31 July 2024, the Company repurchased a total of 14,935,758 shares, with a total repurchase amount of RMB546,188,401.16
(excluding transaction costs), and the number of shares repurchased accounted for 0.31% of the Company's current total share capital,
with an average trading price of RMB36.57 per share.
102
S.F. Holding Co., Ltd. 2024 Interim Report
Implementation of share repurchase reduction through aggregate auction
Applicable Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company, and
other financial indicators for the last year and the last Reporting Period
Applicable Not applicable
During the Reporting Period, the Company’s total share capital was reduced by 79,291,153 shares due to the cancellation of the
shares repurchased. Therefore, the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company,
and other financial indicators for the current period have been increased.
Other information that the Company considers necessary, or are required by the securities regulatory authorities, to disclose
Applicable Not applicable
2、Changes in restricted shares
Applicable Not applicable
Unit: number of shares
Number of
Restricted Number of Restricted
restricted
Name of shares at the restricted shares at the Reason for Date of unlocking
shares
shareholder beginning of the shares removed end of the restriction restricted shares
increased in
period in the period period
the period
lock-up shares 6,697,500 shares unlocked
Liu Jilu 33,542,835 6,697,500 - 26,845,335
for supervisor in early 2024
lock-up shares
Wang Xin 129,000 - - 129,000 -
for Director
lock-up shares
Ho Chit 91,500 - - 91,500 -
for Director
lock-up shares
Li Sheng 91,500 - - 91,500 for senior -
management
lock-up shares
Geng
91,500 - - 91,500 for senior -
Yankun
management
lock-up shares
Zhang Dong 91,500 - 30,500 122,000 for resigned -
Director
lock-up shares
Zhou
45,750 - - 45,750 for senior -
Haiqiang
management
Total 34,083,585 6,697,500 30,500 27,416,585 -- --
II. Issuance and Listing of Securities
Applicable Not applicable
103
S.F. Holding Co., Ltd. 2024 Interim Report
III. Total Number of Shareholders and Their Holdings
Unit: number of shares
Total number of ordinary Total number of preferred shareholders with
shareholders at the end of 196,384 voting rights restored at the end of Reporting -
Reporting Period Period (if any)
Ordinary shareholders holding more than 5% of shares or shares of the top ten ordinary shareholders (excluding lending of shares
through refinancing)
Increase or Pledged, marked or
Number of
Shareho decrease of Number of Number of frozen shares
ordinary shares
Nature of lding ordinary shares restricted unrestricted
Name of shareholder held at the end Status
shareholder percent during the ordinary ordinary shares
of the Reporting of Amount
age Reporting shares held held
Period shares
Period
Domestic
Shenzhen Mingde non-state-
Holding Development owned 48.16% 2,319,497,139 -42,430,0001 - 2,319,497,139 Pledged 1,057,900,000
Co., Ltd legal
person
Mingde Holding –
Domestic
Huatai United
non-state-
Securities – 21 Mingde -
owned 5.03% 242,430,000 42,430,0001 242,430,000 Pledged 242,430,000
EB Guarantee and
legal
Trust Property Special
person
Account
Hong Kong Securities Overseas
Clearing Company legal 4.83% 232,463,450 3,763,349 - 232,463,450 - -
Ltd. person
State-
Shenzhen Zhaoguang owned
3.94% 189,716,864 - - 189,716,864 - -
Investment Co., Ltd. legal
person
Domestic
Shenzhen Weishun non-state-
Enterprise owned 2.08% 100,000,000 - - 100,000,000 - -
Management Co., Ltd. legal
person
Ningbo Shunda Domestic
Fengrun Investment non-state-
Management owned 1.69% 81,450,959 -19,463,945 - 81,450,959 Pledged 47,275,930
Partnership (Limited legal
Partnership) person
Domestic
Lin Zheying natural 0.85% 40,873,000 851,400 - 40,873,000 - -
person
Domestic
Liu Jilu natural 0.74% 35,793,780 - 26,845,335 8,948,445 Pledged 6,550,000
person
Shanghai Chongyang
Strategic Investment Other 0.66% 31,691,092 3,377,650 - 31,691,092 - -
Co., Ltd.- Chongyang
1 During the Reporting Period, 42,430,000 shares were transferred to “Mingde Holding – Huatai United Securities – 21 Mingde EB Guarantee and Trust Property Special Account” by
Mingde Holding to guarantee the issuance of exchangeable corporate bond “21 Mingde EB.” 2,661,927,139 shares of the total shares of the Company held by Mingde remains
unchanged.
104
S.F. Holding Co., Ltd. 2024 Interim Report
Strategy Caizhi Fund
Shanghai Chongyang
Strategic Investment
Other 0.60% 29,131,937 1,102,100 - 29,131,937 - -
Co., Ltd.- Chongyang
Strategy Juzhi Fund
Strategic investor or general legal person becomes the top ten
ordinary shareholder due to the placement of new shares (if N/A
any)
Shenzhen Mingde Holding Development Co., Ltd. holds a total of
2,661,927,139 shares in the Company, accounting for 55.27% of the
Company's total share capital, of which 2,319,497,139 shares are
directly held, 100,000,000 shares are held through its wholly-owned
subsidiary Shenzhen Weishun Enterprise Management Co., Ltd., and
242,430,000 shares are held through the "Mingde Holding – Huatai
Explanation on associated relationship or persons acting in United Securities – 21 Mingde EB Guarantee and Trust Property
concert between the above-mentioned shareholders Special Account", a special account for guarantee and trust opened for
the issuance of exchangeable bonds (EB).
The Company is not certain as to whether there is an associated
relationship between the other above-mentioned shareholders and
whether they are acting in concert.
Explanation on the above-mentioned shareholders' N/A
involvement in entrustment/entrusted voting rights and
abstaining from voting rights
Special explanation on the top ten shareholders having special N/A
repurchase accounts (if any)
Top ten ordinary shareholders holding unrestricted shares (excluding lending of shares through refinancing and lock-up shares for
senior management)
Number of unrestricted ordinary Type of shares
Name of shareholder shares held at the end of the
Reporting Period Type of shares Quantity
RMB-denominated
Shenzhen Mingde Holding Development Co., Ltd. 2,319,497,139 2,319,497,139
ordinary shares
Mingde Holding – Huatai United Securities – 21 Mingde RMB-denominated
242,430,000 242,430,000
EB Guarantee and Trust Property Special Account ordinary shares
RMB-denominated
Hong Kong Securities Clearing Company Ltd. 232,463,450 232,463,450
ordinary shares
RMB-denominated
Shenzhen Zhaoguang Investment Co., Ltd. 189,716,864 189,716,864
ordinary shares
RMB-denominated
Shenzhen Weishun Enterprise Management Co., Ltd. 100,000,000 100,000,000
ordinary shares
Ningbo Shunda Fengrun Investment Management RMB-denominated
81,450,959 81,450,959
Partnership (Limited Partnership) ordinary shares
RMB-denominated
Lin Zheying 40,873,000 40,873,000
ordinary shares
Shanghai Chongyang Strategic Investment Co., Ltd.- RMB-denominated
31,691,092 31,691,092
Chongyang Strategy Caizhi Fund ordinary shares
Shanghai Chongyang Strategic Investment Co., Ltd.- RMB-denominated
29,131,937 29,131,937
Chongyang Strategy Juzhi Fund ordinary shares
Industrial and Commercial Bank of China Limited – RMB-denominated
Huatai-Pinebridge CSI 300 Exchange Traded Open-ended 28,787,595 ordinary shares 28,787,595
Index Securities Investment Fund
105
S.F. Holding Co., Ltd. 2024 Interim Report
Shenzhen Mingde Holding Development Co., Ltd. holds a total of
2,661,927,139 shares in the Company, accounting for 55.27% of the
Company's total share capital, of which 2,319,497,139 shares are
directly held, 100,000,000 shares are held through its wholly-owned
Explanation on associated relationship or persons acting in subsidiary Shenzhen Weishun Enterprise Management Co., Ltd., and
concert between the top ten unrestricted ordinary 242,430,000 shares are held through the "Mingde Holding – Huatai
shareholders, and between the top ten unrestricted ordinary United Securities – 21 Mingde EB Guarantee and Trust Property Special
shareholders and the top ten ordinary shareholders Account", a special account for guarantee and trust opened for the
issuance of exchangeable bonds (EB).
The Company is not certain as to whether there is an associated
relationship between the other above-mentioned shareholders and
whether they are acting in concert.
In addition to 35,000,000 shares held through an ordinary securities
account, Lin Zheying, a shareholder of the Company, also held
5,873,000 shares through a Customer margin securities account of
Yuekai Securities Co., Ltd., with a total holding of 40,873,000 shares;
In addition to 12,104,373 shares held through an ordinary securities
account, Shanghai Chongyang Strategic Investment Co., Ltd.-
Explanation of the top ten ordinary shareholders' Chongyang Strategy Caizhi Fund, a shareholder of the Company, also
participation in margin financing and securities lending held 19,586,719 shares through a Customer margin securities account of
business (if any) China Merchants Securities Co., Ltd, with a total holding of 31,691,092
shares;
In addition to 5,325,537 shares held through an ordinary securities
account, Shanghai Chongyang Strategic Investment Co., Ltd.-
Chongyang Strategy Juzhi Fund Gathering Fund also held 23,806,400
shares through a Customer margin securities account of China Merchants
Securities Co., Ltd, with an actual total holding of 29,131,937 shares.
The participation of shareholders who held more than 5% of the shares, top ten shareholders and top ten unrestricted tradable
shareholders in securities lending transactions
Applicable □Not applicable
Unit: number of shares
The participation of shareholders who held more than 5% of the shares, top ten shareholders and top ten unrestricted tradable
shareholders in securities lending transactions
Shares held in Shares held in
The lending shares The lending shares
shareholders' ordinary shareholders' ordinary
through refinancing and through refinancing and
accounts and credit accounts and credit
unreturned at the unreturned at the end of
Name of accounts at the begining of accounts at the end of the
begining of the period the period
shareholder the period period
Number Number Number
Number Shareholdin Shareholding Shareholding Shareholding
of of of
of shares g percentage percentage percentage percentage
shares shares shares
Industrial and
Commercial
Bank of China
Limited –
Huatai-
Pinebridge
CSI 300 18,136,29 28,787,
0.37% 20,800 0.00% 0.60% 0 0.00%
Exchange 5 595
Traded Open-
ended Index
Securities
Investment
Fund
106
S.F. Holding Co., Ltd. 2024 Interim Report
The top ten shareholders and the top ten unrestricted tradable shareholders changed from the previous period due to lending/returning
shares through refinancing.
□Applicable Not applicable
Any of the top ten ordinary shareholders or the top ten unrestricted ordinary shareholders of the Company conducted any transaction
of promissory repurchase or not during the Reporting Period?
Applicable Not applicable
None of the top ten ordinary shareholder or the top ten unrestricted ordinary shareholders of the Company conducted any transaction
of promissory repurchase during the Reporting Period.
IV. Changes in Shares Held by Directors, Supervisors and Senior Management
Applicable Not applicable
V. Change of Controlling Shareholders or Actual Controllers
Change of controlling shareholders during the Reporting Period
Applicable Not applicable
There was no change in the controlling shareholders of the Company during the Reporting Period.
Change of actual controller during the Reporting Period
Applicable Not applicable
There was no change in the actual controller of the Company during the Reporting Period.
107
S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 8 Preferred Shares
Applicable Not applicable
There were no preferred shares in the Company during the Reporting Period.
108
S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 9 Bonds
Applicable Not applicable
109
S.F. Holding Co., Ltd. 2024 Interim Report
Chapter 10 Financial Statements
[English Translation for Reference Only]
Review Report
PwC ZT Yue Zi (2024) No. 0036
To the shareholders of S.F. Holding Co., Ltd.,
We have reviewed the accompanying interim financial statements of S.F. Holding Co., Ltd. (hereinafter “S.F.
Holding”), which comprise the consolidated and company balance sheets as at 30 June 2023, the
consolidated and company income statements, the consolidated and company cash flow statements and the
consolidated and company statements of changes in equity for the period then ended, and the notes to the
interim financial statements. Management of S.F. Holding is responsible for the preparation of these interim
financial statements in accordance with the requirements of the Accounting Standards for Business
Enterprises (“CAS”) 32 - Interim Financial Reporting. Our responsibility is to issue a review report on these
interim financial statements based on our review.
We conducted our review in accordance with China Standards on Review Engagement No. 2101, “Review of
Financial Statements”. These Standards require that we plan and perform the review to obtain limited
assurance as to whether the interim financial statements are free of material misstatement. A review is
limited primarily to inquiries of company personnel and analytical procedures applied to financial data and
thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not
express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in accordance with CAS 32 - Interim Financial
Reporting.
PricewaterhouseCoopers Zhong Tian LLP Signing CPA
——————————
Lin Chongyun
Shanghai, the People’s Republic of China Signing CPA
28 August 2024 ——————————
Liu Yufeng
110
S.F. HOLDING CO., LTD.
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 30 June 2024 31 December 2023
Consolidated Consolidated
(Unaudited)
Current assets
Cash at bank and on hand 4(1) 33,485,353 41,974,505
Financial assets held for trading 4(2) 18,047,323 6,809,742
Notes receivable 243,789 226,946
Accounts receivable 4(3) 25,851,621 25,133,487
Receivables financing 125,633 99,978
Advances to suppliers 4(4) 2,793,054 3,247,294
Loans and advances 98,067 326,780
Other receivables 4(5) 3,311,338 3,569,308
Inventories 2,559,211 2,440,425
Contract assets 2,039,379 1,632,592
Current portion of non-current assets 4(7) 225,525 314,080
Other current assets 4(6) 4,299,478 5,215,543
Total current assets 93,079,771 90,990,680
Non-current assets
Long-term receivables 4(7) 321,655 368,070
Long-term equity investments 4(8) 6,859,813 7,378,831
Investments in other equity instruments 4(9) 8,344,293 9,489,535
Other non-current financial assets 508,313 589,996
Investment properties 4(10) 6,658,540 6,418,720
Fixed assets 4(11) 54,518,899 53,929,854
Construction in progress 4(12) 2,939,116 4,032,884
Right-of-use assets 4(13) 13,119,519 14,073,571
Intangible assets 4(14) 17,484,194 18,147,193
Capitalised development expenditures 4(15) 90,055 129,845
Goodwill 4(16) 9,861,422 9,570,436
Long-term prepaid expenses 4(17) 3,109,888 3,161,404
Deferred tax assets 4(30) 2,053,570 2,263,870
Other non-current assets 916,883 945,766
Total non-current assets 126,786,160 130,499,975
TOTAL ASSETS 219,865,931 221,490,655
111
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND EQUITY Note 30 June 2024 31 December 2023
Consolidated Consolidated
(Unaudited)
Current liabilities
Short-term borrowings 4(19) 23,691,496 18,221,977
Deposits from customers 173 1,731
Financial liabilities held for trading 94,614 92,120
Notes payable 9,091 68,165
Accounts payable 4(20) 23,801,241 24,846,135
Advances from customers 41,209 40,714
Contract liabilities 1,802,509 1,832,018
Employee benefits payable 4(21) 4,505,260 5,608,609
Taxes payable 4(22) 1,978,608 2,129,715
Other payables 4(23) 10,338,816 11,494,841
Current portion of non-current liabilities 4(24) 8,271,042 9,485,948
Other current liabilities 4(25) 2,455,242 167,668
Total current liabilities 76,989,301 73,989,641
Non-current liabilities
Long-term borrowings 4(26) 10,661,466 11,355,241
Debentures payable 4(27) 19,710,996 18,794,782
Lease liabilities 4(28) 7,472,393 8,038,495
Long-term payables 228,220 247,452
Long-term employee benefits payable 77,406 82,216
Deferred income 4(29) 1,210,871 1,090,644
Deferred tax liabilities 4(30) 4,536,857 4,550,974
Provisions 67,071 57,550
Total non-current liabilities 43,965,280 44,217,354
Total liabilities 120,954,581 118,206,995
Equity
Share Capital 4(31) 4,815,911 4,895,202
Capital reserves 4(32) 35,970,002 43,164,085
Less: Treasury stock 4(33) (378,490) (2,575,532)
Other comprehensive income 4(48) 4,477,169 5,532,428
General risk reserve 524,376 524,376
Surplus reserve 4(35) 2,413,786 2,413,786
Retained earnings 4(36) 40,748,443 38,835,999
Total equity attributable to
shareholders of the Company 88,571,197 92,790,344
Minority interests 6(1)(b) 10,340,153 10,493,316
Total equity 98,911,350 103,283,660
TOTAL LIABILITIES AND EQUITY 219,865,931 221,490,655
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance): Ho Chit Accounting director: Hu Xiaofei
112
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 30 June 2024 31 December 2023
Company Company
(Unaudited)
Current assets
Cash at bank and on hand 18(1) 29,017 138,046
Advances to suppliers 28,885 26,243
Other receivables 18(2) 17,634,795 21,818,111
Other current assets 9,356 6,029
Total current assets 17,702,053 21,988,429
Non-current assets
Long-term equity investments 18(3) 66,962,282 66,933,038
Construction in progress 253,138 210,661
Intangible assets 348,201 354,928
Deferred tax assets 696 100
Total non-current assets 67,564,317 67,498,727
TOTAL ASSETS 85,266,370 89,487,156
113
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND EQUITY Note 30 June 2024 31 December 2023
Company Company
(Unaudited)
Current liabilities
Employee benefits payable 182 182
Other payables 21,615 21,337
Taxes payable 160 3,292
Total current liabilities 21,957 24,811
Non-current liabilities
Total non-current liabilities - -
Total liabilities 21,957 24,811
Equity
Share Capital 4(31) 4,815,911 4,895,202
Capital reserves 68,446,282 71,890,640
Less: Treasury stock 4(33) (378,490) (2,575,532)
Surplus reserve 2,260,741 2,260,741
Retained earnings 10,099,969 12,991,294
Total equity 85,244,413 89,462,345
TOTAL LIABILITIES AND EQUITY 85,266,370 89,487,156
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance): Ho Chit Accounting director: Hu Xiaofei
114
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2024 2023 2024 2023
Consolidated Consolidated Company Company
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
1. Revenue 4(37) 134,409,720 124,365,598 - -
Less: Cost of revenue 4(37) (115,784,772) (107,555,280) - -
Taxes and surcharges (311,509) (212,453) (33) (100)
Selling and distribution
expenses 4(38) (1,470,892) (1,392,755) - -
General and administrative
expenses 4(39) (8,966,441) (8,940,581) (4,029) (10,161)
Research and development
expenses 4(40) (1,301,455) (1,174,970) - -
Financial (costs)/income 4(41) (893,982) (992,479) 1,796 16,200
Including: Interest
expenses (1,230,918) (1,092,673) - -
Interest
income 415,064 292,849 1,809 16,216
Add: Other income 4(43) 403,359 747,676 - -
4(44)
Investment income/(Losses) 18(4) 358,868 500,597 (117) 22,167
Including: Investment
Income/(losses) from
associates
and joint
ventures (62,580) (13,486) - -
Gains/(Losses) arising from
changes in fair value 10,904 21,870 - (2,230)
Reversal of/(Losses on)
credit impairment (159,557) 64,802 - (5)
Asset impairment losses (1,624) (806) - -
Gains on disposal of assets 65,907 47,892 - -
2. Operating profit 6,358,526 5,479,111 (2,383) 25,871
Add: Non-operating income 4(45)(a) 168,965 130,193 - -
Less: Non-operating expenses 4(45)(b) (207,434) (188,954) - -
3. Total profit 6,320,057 5,420,350 (2,383) 25,871
Less: Income tax expenses 4(46) (1,559,135) (1,526,110) 268 (6,618)
4. Net profit 4,760,922 3,894,240 (2,115) 19,253
Classified by continuity of
operations:
Net profit from continuing
operations 4,760,922 3,894,240 (2,115) 19,253
Net profit from discontinued
operations - - - -
Classified by ownership of the
equity:
Attributable to shareholders of
the Company 4,806,714 4,176,282 Not applicable Not applicable
Minority interests (45,792) (282,042) Not applicable Not applicable
115
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2024 2023 2024 2023
Consolidated Consolidated Company Company
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
5. Other comprehensive income,
net of tax (1,459,677) 429,802 - -
Attributable to shareholders of
the Company, net of tax (1,060,319) 639,549 - -
Other comprehensive income
items which will not be
reclassified subsequently to
profit or loss (1,296,131) (30,021) - -
Changes in fair value of
investments in other equity
instruments 4(48) (1,296,131) (30,021) - -
Other comprehensive income
items which will be
transferred to profit or loss
under the equity method 235,812 669,570 - -
Cash flow hedging reserve (1,012) 8,740 - -
Share of other
comprehensive income
of the investee
accounted for using
equity method which will
be reclassified to profit or
loss (10,370) 9,171 - -
Exchange differences on
translation of foreign
currency financial
statements 4(48) 247,194 651,659 - -
Attributable to minority interests,
net of tax 4(48) (399,358) (209,747) - -
6. Total comprehensive income 3,301,245 4,324,042 (2,115) 19,253
Attributable to shareholders of
the Company 3,746,395 4,815,831 Not applicable Not applicable
Attributable to minority interests (445,150) (491,789) Not applicable Not applicable
7. Earnings per share
Basic earnings per share (RMB
Yuan) 4(47)(a) 1.00 0.86 Not applicable Not applicable
Diluted earnings per share (RMB
Yuan) 4(47)(b) 1.00 0.86 Not applicable Not applicable
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance): Ho Chit Accounting director: Hu Xiaofei
116
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2024 2023 2024 2023
Consolidated Consolidated Company Company
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
1. Cash flows from/(used in)
operating activities
Cash received from sales of
goods or rendering of
services 139,820,935 132,394,329 - -
Net decrease in deposits with
central banks 550,882 25,504 - -
Refund of taxes and levies 709,963 495,991 163 -
Cash received relating to other
operating activities 4(49)(a) 47,516,455 45,314,783 27,337 27,767
Sub-total of cash
operating inflows 188,598,235 178,230,607 27,500 27,767
Cash paid for goods and
services (100,012,110) (91,339,990) - -
Net increase in loans to
customers (96,902) (17,638) - -
Net decrease in deposit-taking
and interbank payments (1,556) (10,799) - -
Cash paid to and on behalf of
employees (17,823,886) (17,243,035) (1,693) (2,715)
Payments of taxes and levies
surcharges (3,076,005) (3,442,293) (3,590) (23,542)
Cash paid relating to other
operating activities 4(49)(b) (53,865,507) (52,352,025) (31,502) (11,412)
Sub-total of operating
cash outflows (174,875,966) (164,405,780) (36,785) (37,669)
Net cash flows from/(used in)
operating activities 4(50)(a) 13,722,269 13,824,827 (9,285) (9,902)
2. Cash flows (used in)/from
investing activities
Cash received from disposals of
investments 4(49)(c) 351,031 170,533 - -
Cash received from returns on
investments 387,340 433,485 2,900,000 523,497
Cash received from disposal of
fixed assets and other long-
term assets 179,381 119,817 - -
Net cash received from disposal
of subsidiaries and other
business units 153,596 358,587 - -
Cash received relating to other
investing activities 4(49)(f) 28,698,081 48,950,000 1,283,300 5,620,000
Sub-total of investing
cash inflows 29,769,429 50,032,422 4,183,300 6,143,497
Cash paid to acquire fixed
assets and other long-term
assets (5,075,259) (5,454,090) (37,857) (14,309)
Cash paid to acquire
investments 4(49)(d) (70,796) (1,463,367) - -
Net cash paid to acquire
subsidiaries 4(49)(e) (614,384) (928,555) - -
Cash paid relating to other
investing activities 4(49)(f) (39,453,543) (55,820,000) - (4,529,904)
Sub-total of investing
cash outflows (45,213,982) (63,666,012) (37,857) (4,544,213)
Net cash flows (used in)/from
investing activities (15,444,553) (13,633,590) 4,145,443 1,599,284
117
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2024 2023 2024 2023
Consolidated Consolidated Company Company
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
3. Cash flows used in financing
activities
Cash received from capital
contributions 27,968 56,892 - -
Including: Cash received from
capital
contributions by
minority
shareholders of
subsidiaries 27,968 56,892 - -
Cash received from borrowings
and issue of debentures 22,881,961 17,116,577 - -
Cash received relating to other
financing activities 9,978 7,639 22,534 -
Sub-total of financing
cash inflows 22,919,907 17,181,108 22,534 -
Cash repayments of borrowings (16,228,027) (15,113,136) - -
Cash payments for distribution
of dividends, profits or
interest expenses (4,023,880) (2,451,109) (2,889,210) (1,213,616)
Cash paid relating to other
financing activities 4(49)(g) (8,849,865) (4,580,501) (1,378,503) (61,530)
Sub-total of financing
cash outflows (29,101,772) (22,144,746) (4,267,713) (1,275,146)
Net cash flows used in
financing activities (6,181,865) (4,963,638) (4,245,179) (1,275,146)
4. Effect of foreign exchange rate
changes on cash and cash
equivalents (28,170) 127,046 (8) -
5. Net (decrease)/increase in cash
and cash equivalents (7,932,319) (4,645,355) (109,029) 314,236
Add: Cash and cash
equivalents at the
beginning of the period 4(50)(b) 40,448,308 40,279,947 138,046 812,181
6. Cash and cash equivalents at
the end of the period 4(50)(b) 32,515,989 35,634,592 29,017 1,126,417
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance): Ho Chit Accounting director: Hu Xiaofei
118
S.F. HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June 2023 (Unaudited)
Equity attributable to shareholders of the Company
Less: Other
Capital Treasury comprehensive General risk Special Surplus Retained Minority
Note Share Capital reserves stock income reserve reserve reserve earnings interests Total equity
Balance at 1 January 2023 4,895,202 43,996,237 (2,040,377) 4,538,027 493,048 - 1,010,253 33,371,351 12,022,308 98,286,049
Movements for the six months
ended 30 June 2023
Total comprehensive income
Net profit - - - - - - - 4,176,282 (282,042) 3,894,240
Other comprehensive income - - - 639,549 - - - - (209,747) 429,802
Capital contribution and
withdrawal by shareholders
Capital contribution by
shareholders - 890 - - - - - - 59,056 59,946
Share repurchase 4(33) - - (59,936) - - - - - - (59,936)
Share-based payment included
in equity 9 - 151,413 - - - - - - 2,048 153,461
Others - (11,444) - - - - - - (3,728) (15,172)
Business combinations involving
entities not under common
control - - - - - - - - 52,226 52,226
Profit distribution
Distribution to shareholders 4(36) - - - - - - - (1,213,616) (377,890) (1,591,506)
Transfer within equity
Transfer from other
comprehensive income to
retained earnings - - - (18) - - - 18 - -
Movements in other capital
reserve - (3,041) - - - - - - - (3,041)
Safety reserve
Appropriation - - - - - 18,568 - - - 18,568
Utilisation - - - - - (18,568) - - - (18,568)
Balance at 30 June 2023 4,895,202 44,134,055 (2,100,313) 5,177,558 493,048 - 1,010,253 36,334,035 11,262,231 101,206,069
119
S.F. Holding Co., Ltd. 2024 Interim Report
S.F. HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June 2024 (Unaudited)
Equity attributable to shareholders of the Company
Less: Other
Capital Treasury comprehensive General risk Special Surplus Retained Minority
Note Share capital reserve stock income reserve reserve reserve earnings interests Total equity
Balance at 1 January 2024 4,895,202 43,164,085 (2,575,532) 5,532,428 524,376 - 2,413,786 38,835,999 10,493,316 103,283,660
Movements for the six months
ended 30 June 2024
Total comprehensive income
Net profit - - - - - - - 4,806,714 (45,792) 4,760,922
Other comprehensive income - - - (1,060,319) - - - - (399,358) (1,459,677)
Capital contribution and
withdrawal by shareholders
Capital contribution by
shareholders - 127 - - - - - - 28,447 28,574
Share repurchase 4(33) - - (1,378,503) - - - - - - (1,378,503)
Treasury stock cancellation 4(33) (79,291) (3,496,254) 3,575,545 - - - - - - -
Share-based payments
included in equity 9 - 62,186 - - - - - - 7,754 69,940
Others - (3,760,142) - - - - - - 420,549 (3,339,593)
Business combinations involving
enterprises not under common
control - - - - - - - - 17,333 17,333
Profit distribution
Distribution to shareholders 4(36) - - - - - - - (2,889,210) (182,096) (3,071,306)
Transfer within equity
Transfer from other
comprehensive income to
retained earnings - - - 5,060 - - - (5,060) - -
Safety reserve
Appropriation - - - - - 272,081 - - - 272,081
Utilisation - - - - - (272,081) - - - (272,081)
Balance at 30 June 2024 4,815,911 35,970,002 (378,490) 4,477,169 524,376 - 2,413,786 40,748,443 10,340,153 98,911,350
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance): Ho Chit Accounting director: Hu Xiaofei
120
S.F. HOLDING CO., LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June 2023 (Unaudited)
Less:
Capital Treasury Surplus Retained
Note Share capital reserve stock reserve earnings Total equity
Balance at 1 January
2023 4,895,202 71,743,948 (2,040,377) 857,208 1,573,109 77,029,090
Movements for the six
months ended 30 June
2023
Total comprehensive income
Net profit - - - - 19,253 19,253
Capital contribution and
withdrawal by
shareholders
Share repurchase 4(33) - - (59,936) - - (59,936)
Share-based payment
included in equity 9(1)(a) - 137,562 - - - 137,562
Profit distribution
Distribution to
shareholders 4(36) - - - - (1,213,616) (1,213,616)
Balance at 30 June 2023 4,895,202 71,881,510 (2,100,313) 857,208 378,746 75,912,353
For the six months ended 30 June 2024 (Unaudited)
Less:
Capital Treasury Surplus Retained
Note Share capital reserve stock reserve earnings Total equity
Balance at 1 January 2024 4,895,202 71,890,640 (2,575,532) 2,260,741 12,991,294 89,462,345
Movements for the six
months ended 30 June
2024
Total comprehensive income
Net profit - - - - (2,115) (2,115)
Capital contribution and
withdrawal by
shareholders
Share repurchase 4(33) - (1,378,503) - - (1,378,503)
Treasury stock
cancellation (79,291) (3,496,254) 3,575,545 - - -
Share-based payment
included in equity 9(1)(a) - 51,896 - - - 51,896
Profit distribution
Distribution to
shareholders 4(36) - - - - (2,889,210) (2,889,210)
Balance at 30 June 2024 4,815,911 68,446,282 (378,490) 2,260,741 10,099,969 85,244,413
The accompanying notes form an integral part of these financial statements.
Legal representative: Wang Wei Chief Financial Officer (Head of finance) :Ho Chit Accounting director: Hu Xiaofei
121
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
1 General information
S.F. Holding Co., Ltd. (formerly “Ma’anshan Dingtai Rare Earth and New Materials Co., Ltd.”,
hereinafter “S.F. Holding” or “the Company”), formerly known as Ma’anshan Dingtai Science &
Technology Co., Ltd., was established by 11 natural persons including Liu Jilu and the Labour
Union of Ma’anshan Dingtai Metallic Products Co., Ltd. by cash contribution on 13 May 2003. The
Company was officially changed to Ma’anshan Dingtai Rare Earth and New Materials Co., Ltd. on
22 October 2007, and the Company’s shares were listed on the Shenzhen Stock Exchange on 5
February 2010.
In December 2016, approved by the China Securities Regulatory Commission, the Company
conducted a series of major assets restructuring, including major assets swap, issuing shares to
purchase assets and raising matching fund. Upon the completion of major asset restructuring,
Shenzhen Mingde Holdings Development Co., Ltd. (“Mingde Holdings”) became the parent
company and ultimate controlling company of the Company, and Wang Wei was the ultimate
controlling person of the Company. The place of registration and headquarters of the Company
were changed to Shenzhen, Guangdong Province.
As at 30 June 2024, the total share capital of the Company was RMB 4,815,911,220 at the par
value of RMB 1 per share.
The actual business operations of the Company and its subsidiaries (hereinafter collectively
referred to as “the Group”) include: domestic and international express services (excluding postal
enterprises’ franchise business); general freight services; large objects transportation services;
refrigerated truck transportation services; third-party pharmaceutical modern logistics business
services; urban distribution services; supply chain solution consulting services; domestic and
international freight agency business services; air cargo transportation services; warehousing
services; property leasing services; and industrial investment.
Hangzhou SF Intra-city Industrial Co., Ltd., a subsidiary of the Company, is a company listed on the
main board of the Stock Exchange of Hong Kong Limited, primarily providing intra-city instant
delivery services.
Kerry Logistics Network Limited (“Kerry Logistics”), a subsidiary of the Company, is a company
listed on the main board of the Stock Exchange of Hong Kong Limited, primarily providing services
such as comprehensive logistics and international freight.
Kerry Express (Thailand) Public Company Limited (“KEX”), a subsidiary of the Company, is a
company listed on the Main Board of the Stock Exchange of Thailand Limited, primarily providing
express transportation and other services.
First-tier and second-tier subsidiaries included in the consolidation scope of the financial
statements are detailed in Note 6(1). The changes in the scope of consolidation for the current
reporting period are set out in Note 5.
These financial statements are authorised for issue by the Company’s Board of Directors on 28
August 2024.
122
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
2 Basis of preparation and summary of significant accounting policies and accounting
estimates
(1) Basis of preparation
The interim financial statements are prepared in accordance with the Accounting Standard for
Business Enterprises - Basic Standard, the specific accounting standards and other relevant
regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods
(hereinafter collectively referred to as “the Accounting Standards for Business Enterprises” or
“CASs”). The interim financial statements are prepared and disclosed in accordance with the
requirements of the CAS 32 - Interim Financial Reporting and the Standards for the Contents and
Formats of Information Disclosure by Companies Offering Securities to the Public No. 3 - Contents
and Formats of Semi-annual Reports issued by the China Securities Regulatory Commission, and
therefore do not include all information and disclosures in the annual financial statements.
The financial statements are prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The interim financial statements are in compliance with CAS 32 - Interim Financial Reporting.
(3) Accounting policies and accounting estimates
(a) Accounting policies
On 25 October 2023, the Ministry of Finance issued the Circular on Issuing Interpretation No. 17 of
Accounting Standards for Business Enterprises (Cai Kuai [2023] No. 21) (Interpretation No. 17). It
provides for the classification of current liabilities and non-current liabilities, the disclosure of
supplier financing arrangements and the accounting treatment of sale-leaseback transactions,
which came into effect on 1 January 2024. The Group has prepared the interim financial
statements in accordance with Interpretation No. 17 above and Interpretation No. 17 has no
material impact on the interim financial statements of the Group and the Company.
During the reporting period, except for the above-mentioned changes in accounting policies, the
accounting policies adopted for the interim financial statements are consistent with those adopted
by the Group for preparing the financial statements for the year ended 31 December 2023. The
interim financial statements shall be read in conjunction with the Group’s financial statements for
the year ended 31 December 2023.
(b) Accounting estimates
For the aircraft fuselage among the fixed assets, the Group originally depreciated it over 10 years.
Based on the objective assessment by the Group's business and technical departments, as well as
the actual flight life and utilization of the aircraft fuselage, the Group is of the view that the current
depreciable life of the aircraft fuselage can no longer accurately reflect the actual utilization of the
asset. In order to more truly and accurately reflect the asset quality and operating results of the
Company's aircraft airframes and to better match the depreciable lives of the aircraft airframes with
their actual useful lives, the Group made a change in accounting estimate for the depreciable lives
of the aircraft airframes. This change in accounting estimate is effective from January 1, 2024 using
the future applicable method. A comparison of the change in depreciation method for aircraft
airframes is set out below:
123
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
2 Basis of preparation and summary of significant accounting policies and accounting
estimates (Continued)
(3) Accounting policies and accounting estimates(Continued)
(b) Accounting estimates(Continued)
Estimated service life Projected net residual Annual depreciation
value rate rate
Before the change 10 years 5.00% 9.50%
After the change 10-20 years 5.00% 9.50%-4.75%
Apart from the above accounting estimates, there were no significant changes in the significant
accounting estimates and key judgments adopted by the Group compared with the previous year.
3 Taxation
The main categories and rates of taxes applicable to the Group are set out below:
Category Tax rate Tax base
Enterprise income tax Note (1) Taxable income
Value-added tax 13%, 9%, 6%, 1% (small- Taxable value-added amount (Tax payable is
(“VAT”) scale taxpayers) calculated using the taxable sales
amount/taxable service income multiplied by
the applicable tax rate less deductible VAT
input of the current period or taxable turnover
amount multiplied by the VAT rate)
City maintenance and 7%, 5%, 1% Amount of VAT paid
construction tax
Educational surcharge 3% Amount of VAT paid
Local educational 2% Amount of VAT paid
surcharge
Customs duty At applicable tax rate Customs dutiable value through examination and
approval of the Customs
(1) Enterprise income tax
According to the Enterprise Income Tax Law of the People’s Republic of China and the Regulations
on the Implementation of Enterprise Income Tax Law, except for some subsidiaries enjoying the
preferential tax rates, the Company and the remaining subsidiaries established in the Chinese
mainland are subject to the enterprise income tax rate of 25%.
The Group’s overseas subsidiaries recognise their income taxes in accordance with the laws and
regulations of the countries or regions where they operate. Specifically, the subsidiaries located in
Hong Kong SAR, Macao SAR, Singapore, Japan, South Korea, USA and Thailand are subject to
enterprise income tax at the rates ranging from 12% to 24% in the reporting period.
124
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Continued)
(2) Preferential tax policy and approval documents
During the reporting period, there were no significant changes in the tax rates and policies of
preferential tax rate applicable to the Company and its subsidiaries from the previous year.
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2024 31 December 2023
Cash on hand 15,408 14,391
Cash at bank 12,895,351 18,641,306
Balances with central bank from Group
Finance Company 927,411 1,490,498
Including: Statutory deposit reserve (a) 917,644 1,476,938
Excess deposit reserve (b) 9,767 13,560
Balances with other banks from Group
Finance Company 19,473,506 21,674,309
Other cash balances (c) 147,162 105,684
Interest accrued 26,515 48,317
33,485,353 41,974,505
Including: Overseas deposits 4,452,938 5,455,811
(a) On 18 September 2016, the Group incorporated S.F. Holding Group Finance Co., Ltd. (“Group
Finance Company”). Statutory reserve of Group Finance Company deposited with the central bank
represents required statutory deposit reserve paid by financial enterprises in the People’s Bank of
China (“PBOC”) at 5% of deposits from customers denominated in RMB. Statutory reserve
deposits are not available for use by the Group in its daily operations, which are restricted cash.
(b) Excess reserve of Group Finance Company deposited with the central bank represents the excess
over the required statutory deposit reserve deposited by financial institutions in the central bank,
and it is bank deposit that can be readily drawn on demand.
(c) As at 30 June 2024, the Group’s restricted cash at bank and on hand amounted to 111,600,000 (31
December 2023: RMB 99,558,000).
125
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(2) Financial assets held for trading
30 June 2024 31 December 2023
Structured deposits 17,770,993 6,542,881
Fund investments and others 276,330 266,861
18,047,323 6,809,742
(3) Accounts receivable
30 June 2024 31 December 2023
Accounts receivable 27,190,757 26,512,152
Less: Provision for bad debts (Note 4(18)) (1,339,136) (1,378,665)
25,851,621 25,133,487
The Group adopts regular settlement method for logistics and freight forwarding services provided
to some customers. At each month-end, the outstanding part becomes accounts receivable.
(a) The ageing of accounts receivable is analysed as follows:
30 June 2024 31 December 2023
Within 1 year (inclusive) 26,082,178 25,492,152
1 to 2 years (inclusive) 450,741 490,411
Over 2 years 657,838 529,589
27,190,757 26,512,152
(b) As at 30 June 2024, the five largest accounts receivable and contract assets aggregated by debtor
were summarised and analysed as follows:
Balances of accounts
receivable and Provision for bad
contract assets debts % of total balance
Sum of the five largest
accounts receivable and
contract assets 2,946,077 129,175 10.08%
126
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(3) Accounts receivable (Continued)
(c) Provision for bad debts
For accounts receivable, the Group recognises the loss provision based on the lifetime ECL regardless of whether there is any significant financing
component.
The provision for bad debts of accounts receivable is analysed by category as follows:
30 June 2024 31 December 2023
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
% of total Provision % of total Provision
Amount balance Amount ratio Amount balance Amount ratio
Provision for bad debts
on an individual basis
(i) 482,863 1.78% (482,863) 100.00% 657,488 2.48% (657,488) 100.00%
Provision for bad debts
on a collective basis
(ii) 26,707,894 98.22% (856,273) 3.21% 25,854,664 97.52% (721,177) 2.79%
27,190,757 100.00% (1,339,136) 4.92% 26,512,152 100.00% (1,378,665) 5.20%
127
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(3) Accounts receivable (Continued)
(c) Provision for bad debts (Continued)
(i) As at 30 June 2024 and 31 December 2023, there were no accounts receivable with significant
amounts of provision for bad debts made on an individual basis.
(ii) As at 30 June 2024, provision for bad debts made on a collective basis for accounts receivable is
analysed as follows:
Gross carrying Lifetime ECL Provision for bad
amount rates debts
Group of related parties (Note
8(4)(a)) 553,823 7.21% (39,929)
Group of non-related parties 26,154,071 3.12% (816,344)
26,707,894 (856,273)
As at 31 December 2023, provision for bad debts made on a collective basis for accounts
receivable is analysed as follows:
Gross carrying Lifetime ECL Provision for bad
amount rates debts
Group of related parties (Note
8(4)(a)) 124,569 19.10% (23,790)
Group of non-related parties 25,730,095 2.71% (697,387)
25,854,664 (721,177)
(d) For the six months ended 30 June 2024, the Group’s comprehensive provision and reversal for bad
debts amounted to a provision of RMB 165,988,000 (for the six months ended 30 June 2023: a
reversal of RMB 65,858,000), of which the impairment test provision reversed for bad debts tested
individually was RMB 24,664,000 (for the six months ended 30 June 2023: RMB 28,975,000) (Note
4(18)).
(e) For the six months ended 30 June 2024, accounts receivable that were written off amounted to
RMB 209,411,000 (for the six months ended 30 June 2023: RMB 51,717,000) and no accounts
receivable with amounts that were individually significant were written off (Note 4(18)).
(4) Advances to suppliers
(a) The ageing of advances to suppliers is analysed as follows:
30 June 2024 31 December 2023
% of total % of total
Ageing Amount balance Amount balance
Within 1 year (inclusive) 2,715,217 97.21% 3,179,005 97.90%
1 to 2 years (inclusive) 38,552 1.38% 42,025 1.29%
Over 2 years 39,285 1.41% 26,264 0.81%
2,793,054 100.00% 3,247,294 100.00%
As at 30 June 2024, advances to suppliers with ageing over one year were mainly prepayment to
suppliers, etc. That is because relevant business transactions were still being performed.
128
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
129
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(4) Advances to suppliers (Continued)
(b) As at 30 June 2024, the five largest advances to suppliers aggregated by debtor were summarised
and analysed as follows:
30 June 2024
Amount % of total balance
Sum of the five largest advances to suppliers 385,036 13.79%
(5) Other receivables
30 June 2024 31 December 2023
Current accounts receivable from related
parties (Note 8(4)(d)) 258,935 633,373
Guarantees and deposits receivable 1,535,427 1,523,589
Cash to collect on behalf of other parties 720,869 659,441
Tax paid on behalf of others 118,780 168,971
Employee borrowings receivable and petty
cash 78,217 85,491
Receivables from equity transfer 194,500 76,500
Receivables from airlines subsidies and
financial rebates 14,160 15,371
Social insurance premium prepaid 41,924 38,154
Others 571,956 592,137
3,534,768 3,793,027
Less: Provision for bad debts (Note 4(18)) (223,430) (223,719)
3,311,338 3,569,308
The Group does not have deposits at other parties under a centralised management arrangement
that are presented as other receivables.
(a) The ageing of other receivables based on the point of occurrence is analysed as follows:
30 June 2024 31 December 2023
Within 1 year (inclusive) 2,466,310 2,841,698
1 to 2 years (inclusive) 367,440 266,128
Over 2 years 701,018 685,201
3,534,768 3,793,027
As at 30 June 2024, other receivables with ageing over 1 year mainly represented deposits and
guarantees and receivables from equity transfer.
130
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(5) Other receivables (Continued)
(b) Movements in provision for losses and their gross carrying amounts
The Group measures the loss provision for other receivables based on the ECL for the next twelve months or the entire duration.
The provision for bad debts of other receivables is analysed by category as follows:
30 June 2024 31 December 2023
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
% of total Provision % of total Provision
Amount balance Amount ratio Amount balance Amount ratio
Provision for bad debts
on an individual basis 227,993 6.45% (216,505) 94.96% 221,458 5.84% (209,970) 94.81%
Provision for bad debts
on a collective basis 3,306,775 93.55% (6,925) 0.21% 3,571,569 94.16% (13,749) 0.38%
3,534,768 100.00% (223,430) 6.32% 3,793,027 100.00% (223,719) 5.90%
131
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(5) Other receivables (Continued)
(b) Movements in provision for losses and their gross carrying amounts (Continued)
Movements of provision for bad debts are as follows:
Stage 1 Stage 3
12-month ECL Lifetime ECL
(group) (credit impaired) Total
31 December 2023 13,749 209,970 223,719
Provision/(Reversal) in
the current year 4,270 (4,384) (114)
Write-off in the current
year (1,273) - (1,273)
Transfer to Stage 3 (10,919) 10,919 -
Disposals and others 1,098 - 1,098
30 June 2024 6,925 216,505 223,430
As at 30 June 2024 and 31 December 2023, the Group did not have other receivables at Stage 2.
Other receivables at Stage 1 and Stage 3 are analysed as follows:
(i) As at 30 June 2024 and 31 December 2023, the Group did not have any other receivables at Stage
1 for which the related provision for bad debts was provided on an individual basis.
As at 30 June 2024, other receivables at Stage 1 for which the related provision for bad debts was
provided on a collective basis are analysed as follows:
Gross carrying 12-month ECL Provision for bad
amount rates debts Reason
Provision on a
collective
basis:
Group of related Loss allowance is
parties 258,935 - - recognized at the
amount of expected
Group of non- credit losses over the
related parties 3,047,840 0.23% (6,925) next 12 months
3,306,775 (6,925)
As at 31 December 2023, other receivables at Stage 1 for which the related provision for bad debts
was provided on a collective basis are analysed as follows:
Gross carrying 12-month ECL Provision for bad
amount rates debts Reason
Provision on a
collective
basis:
Group of related
parties 633,373 - - Loss provision
Group of non- based on 12-month
related parties 2,938,196 0.47% (13,749) ECL
3,571,569 (13,749)
132
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(5) Other receivables (Continued)
(b) Movements in provision for losses and their gross carrying amounts (Continued)
(ii) As at 30 June 2024 and 31 December 2023, the Group did not have any other receivables at Stage
3 for which the related provision for bad debts was provided on a collective basis.
As at 30 June 2024, other receivables at Stage 3 for which the related provision for bad debts was
provided on an individual basis are analysed as follows:
Gross carrying Provision for
amount Lifetime ECL bad debts Reason
Provision on an
individual basis:
The debtor
Receivables from encountered
equity transfer 76,500 100.00% (76,500) financial distress
The debtor
Guarantees and encountered
deposits receivable 44,041 73.92% (32,553) financial distress
The debtor
encountered
Others 107,452 100.00% (107,452) financial distress
227,993 (216,505)
As at 31 December 2023, other receivables at Stage 3 for which the related provision for bad debts
was provided on an individual basis are analysed as follows:
Gross carrying Lifetime Provision for
amount ECL bad debts Reason
Provided on an
individual basis:
The debtor
Receivables from encountered
equity transfer 76,500 100.00% (76,500) financial distress
The debtor
Guarantees and encountered
deposits receivable 48,425 76.28% (36,937) financial distress
The debtor
encountered
Others 96,533 100.00% (96,533) financial distress
221,458 (209,970)
(c) For the six months ended 30 June 2024, the Group’s comprehensive provision and reversal for bad
debts amounted to a reversal of RMB 114,000 (for the six months ended 30 June 2023: a provision
of RMB 3,935,000), of which the impairment test provision reversed for bad debts tested
individually was RMB 4,384,000 (for the six months ended 30 June 2023: RMB 1,000,000) (Note
4(18)).
133
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(5) Other receivables (Continued)
(d) For the six months ended 30 June 2024, the Group’s other receivables that were written off
amounted to RMB 1,273,000 (for the six months ended 30 June 2023: RMB 955,000) (Note 4(18)),
and no other receivables with amounts that were individually significant were written off (for the six
months ended 30 June 2023: none).
(e) As at 30 June 2024, the five largest other receivables aggregated by debtor are summarised and
analysed as follows:
30 June 2024
Provision
Gross carrying for bad % of total
Nature of business Ageing amount debts balance
Agency collection
Company 1 and payment Within 1 year 188,918 - 5.34%
Agency collection
Company 2 and payment Within 1 year 146,868 - 4.15%
Receivables from
equity transfers and
Company 3 capital reductions Within 1 year 118,000 - 3.34%
Agency collection
Company 4 and payment Within 1 year 117,573 - 3.33%
Deposits and
Company 5 guarantees Over 2 years 58,251 - 1.65%
629,610 - 17.81%
(6) Other current assets
30 June 2024 31 December 2023
Input VAT to be deducted 3,862,436 4,641,173
Prepaid enterprise income tax 367,288 551,327
Others 69,754 23,043
4,299,478 5,215,543
134
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(7) Long-term receivables and current portion of non-current assets
30 June 2024 31 December 2023
Lease payments under a finance lease 282,054 399,135
Less: Unrealised financing income (15,413) (25,021)
Amortised cost of finance lease 266,641 374,114
Deposit for house purchase 277,904 277,904
Loans to employees 16,281 42,029
Others - 3,281
Less: Provision for bad debts (Note 4(18)) (13,646) (15,178)
Current portion of Long-term
receivables (225,525) (314,080)
321,655 368,070
(8) Long-term equity investments
Joint ventures Associates Total
31 December 2023 3,258,703 4,120,128 7,378,831
Decrease in investments (309,443) (28,284) (337,727)
Investment (loss)/income recognised
under the equity method (90,621) 28,041 (62,580)
Other comprehensive income and
changes in equity recognised
under the equity method (5) (7,084) (7,089)
Cash dividends/profits distributed - (136,496) (136,496)
Effect of translation of foreign
currency financial statements 3,135 21,739 24,874
30 June 2024 2,861,769 3,998,044 6,859,813
Including: Balance of provision for
impairment loss at the
end of the period (416) (338,892) (339,308)
135
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(8) Long-term equity investments (Continued)
(a) Joint ventures
Movements in the current period Provision for impairment
Differences
Share of on
net translation
profit/(loss) Share of Cash of foreign
31 under other dividends/ Provision currency 31
December Decrease in equity changes in profits for financial 30 June 30 June December
2023 investments method equity distributed impairment statements 2024 2024 2023
Hubei International Logistics
Airport Co., Ltd. 2,065,538 - (98,860) - - - - 1,966,678 - -
Jinfeng Borun (Xiamen)
Equity Investment
Partnership (Limited
Partnership) 314,121 (101,195) 4,021 - - - - 216,947 - -
ZBHA Group Co., Ltd.
(“ZBHA”) 240,936 - 217 - - - - 241,153 - -
Gem-shunxin Industrial
Technology Co., Ltd. 209,730 (208,167) (1,558) (5) - - - - - -
CC SF China Logistics
Properties Investment
Fund, L.P. 116,899 - - - - - 2,623 119,522 - -
Others 311,479 (81) 5,559 - - - 512 317,469 (416) (408)
3,258,703 (309,443) (90,621) (5) - - 3,135 2,861,769 (416) (408)
136
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(8) Long-term equity investments (Continued)
(b) Associates
Movements in the current period Provision for impairment
Differences on
Share of net Share of Cash translation of
31 Increase/ profit/(loss) Share of other other dividends/ Provision foreign currency
December (Decrease) in under equity comprehensive changes in profits for financial 30 June 30 June 31 December
2023 investments method income equity distributed impairment statements 2024 2024 2023
SF Real Estate Investment
Trust (“SF REITs”) 1,153,690 13,631 4,794 (9,833) - (36,711) - 26,621 1,152,192 - -
Chiwan Container Terminal
Co., Ltd. 958,153 - 55,807 - - (60,604) - 12,985 966,341 - -
Giao Hang Tiet Kiem Joint
Stock Company 425,581 - (13,848) - - (38,969) - 1,756 374,520 - -
Amass Freight International
Co., Ltd. 265,604 - 8 - - - - - 265,612 - -
PT. Puninar Saranaraya 250,420 - 4,634 - - - - (17,118) 237,936 - -
Zhejiang Galaxis Technology
Group Co., Ltd. (“Galaxis
Technology”) 196,119 - (6,942) - - - - - 189,177 - -
Others 870,561 (41,915) (16,412) (537) 3,286 (212) - (2,505) 812,266 (338,892) (345,816)
4,120,128 (28,284) 28,041 (10,370) 3,286 (136,496) - 21,739 3,998,044 (338,892) (345,816)
137
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(9) Investments in other equity instruments
30 June 2024 31 December 2023
Equity of listed companies 1,120,309 2,418,842
Equity of unlisted companies 7,223,984 7,070,693
8,344,293 9,489,535
30 June 2024 31 December 2023
Equity of listed companies
- Costs 1,917,389 1,881,825
- Accumulated changes in fair value (797,080) 537,017
1,120,309 2,418,842
Equity of unlisted companies
- Costs 3,775,731 3,666,581
- Accumulated changes in fair value 3,448,253 3,404,112
7,223,984 7,070,693
Including: the changes in cost and accumulated fair value of RMB 105,373,000 and RMB
94,529,000 respectively in the current period were due to differences in translation of foreign
currency statements.
138
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(10) Investment properties
Buildings Land use rights Total
Cost
31 December 2023 5,261,718 1,480,379 6,742,097
Reclassification of other long-term
assets in the current period (Note
4(11), 4(12), 4(14)) 455,539 95,277 550,816
Purchase in the current period 1,819 133 1,952
Decrease in the current period (155,309) (30,838) (186,147)
Effect of translation of foreign
currency financial statements (13,837) (395) (14,232)
30 June 2024 5,549,930 1,544,556 7,094,486
Accumulated depreciation
31 December 2023 206,425 116,952 323,377
Increase in the current period 49,347 27,746 77,093
Reclassification of other long-term
assets in the current period (Note
4(11), 4(14)) 36,935 4,606 41,541
Other decreases (7,514) (2,984) (10,498)
Effect of translation of foreign
currency financial statements 1,468 2,965 4,433
30 June 2024 286,661 149,285 435,946
Carrying amount
30 June 2024 5,263,269 1,395,271 6,658,540
31 December 2023 5,055,293 1,363,427 6,418,720
(i) In January 2024, the Group acquired 100% equity interest in Beijing Jieyutai Enterprise
Management Co., Ltd. (“Beijing Jieyutai”). The total transfer price of the equity interest in this
transaction was approximately RMB 559,289,000. The transaction was completed on January 18,
2024 (the “Purchase Day”).
The Purchase satisfies the concentration test. In accordance with the asset purchase principle, the
aggregate fair value of the purchased investment properties (buildings and land use rights), fixed
assets (buildings) and intangible assets (land use rights) amounted to approximately RMB
835,700,000, which was recognized on the Purchase Day.
(ii) As at 30 June 2024, the Group was still in the process of applying for certificates of ownership for
certain buildings and land use rights with carrying amount of RMB 42,217,000 (31 December 2023:
carrying amount of RMB 580,127,000).
(iii) As at 30 June 2024, investment properties with carrying amount of RMB 110,919,000 (31
December 2023: RMB 111,124,000) were pledged as collateral for long-term borrowings (Note
4(26)(c)).
(iv) As at 30 June 2024 and 31 December 2023, the Group assessed that no provision for impairment
should be made for investment properties.
139
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(11) Fixed assets
Computers and Aircraft, aircraft engines, Office equipment
electronic rotables and high-value Machinery and and other
Buildings Motor vehicles equipment maintenance tools equipment equipment Total
Cost
31 December 2023 29,185,339 7,434,951 5,126,023 15,497,033 14,999,446 10,839,453 83,082,245
Transfers from construction in progress (Note 4(12)) 1,681,863 - 19,056 828,980 655,384 18,364 3,203,647
Transfer from investment properties in the current period (Note
4(10)) 495,316 - - - - - 495,316
Purchase in the current period 888,879 293,188 165,954 162,499 139,515 72,492 1,722,527
Business combinations involving entities not under common
control - 3,936 3,739 - 6 2,113 9,794
Transfer to investment properties in the current period (Note
4(10)) (814,347) - - - - - (814,347)
Decrease in disposals of subsidiaries in the current period (309,843) - - - - - (309,843)
Other decreases in the current period (10,373) (528,198) (142,336) (34,354) (148,807) (404,656) (1,268,724)
Effect of translation of foreign currency financial statements 26,245 (2,052) (22,979) 35 (88,827) (8,165) (95,743)
30 June 2024 31,143,079 7,201,825 5,149,457 16,454,193 15,556,717 10,519,601 86,024,872
Accumulated depreciation
31 December 2023 2,918,323 4,806,341 3,779,913 6,643,870 4,363,601 6,638,702 29,150,750
Transfer from investment properties in the current period (Note
4(10)) 15,436 - - - - - 15,436
Increase in the current period 430,708 562,419 336,799 681,070 829,503 646,211 3,486,710
Business combinations involving entities not under common
control - 2,632 2,992 - 6 1,513 7,143
Transfer to investment properties in the current period (Note
4(10)) (52,371) - - - - - (52,371)
Decrease in disposals of subsidiaries in the current period (8,731) - - - - - (8,731)
Other decreases in the current period (25) (503,281) (141,933) (34,257) (68,139) (260,926) (1,008,561)
Effect of translation of foreign currency financial statements (8,650) (4,071) (20,018) 7 (36,312) (17,000) (86,044)
30 June 2024 3,294,690 4,864,040 3,957,753 7,290,690 5,088,659 7,008,500 31,504,332
Provision for impairment
31 December 2023 - - - - 1,633 8 1,641
Differences on translation of foreign currency financial
statements and others - - - - - - -
30 June 2024 - - - - 1,633 8 1,641
Carrying amount
30 June 2024 27,848,389 2,337,785 1,191,704 9,163,503 10,466,425 3,511,093 54,518,899
31 December 2023 26,267,016 2,628,610 1,346,110 8,853,163 10,634,212 4,200,743 53,929,854
140
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(11) Fixed assets (Continued)
(i) As at 30 June 2024, the Group’s holdings of buildings included freehold land that did not require
depreciation.
(ii) For the sixth months ended 30 June 2024, the amounts of depreciation expense charged to cost of
sales, selling and distribution expenses, general and administrative expenses and research and
development expenses were RMB 3,481,474,000 (for the sixth months ended 30 June 2023: RMB
3,133,243,000).
(iii) As at 30 June 2024, fixed assets with carrying amount of RMB 498,743,000 (31 December 2023:
RMB 536,746,000) were pledged as collateral for short-term and long-term borrowings (Note
4(19)(b) and Note 4(26)(c)).
(iv) Fixed assets with pending certificates of ownership
30 June 2024
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 5,640,189 (193,114) - 5,447,075
31 December 2023
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 6,230,244 (154,749) - 6,075,495
In addition, as at 30 June 2024, buildings with carrying amount of RMB 17,451,000 (cost of RMB
RMB 29,844,000) (31 December 2023: carrying amount of RMB 18,155,000 and cost of RMB
29,844,000) represented public rental houses with restricted property rights purchased by the
Group for enterprise talents.
141
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(11) Fixed assets (Continued)
(v) Disposals of aircraft engines, rotables and high-value maintenance tools
For the six months ended 30 June 2024
Reason for Accumulated Provision for
disposal Cost depreciation impairment Carrying amount
Aircraft rotables Scrapped 1,383 (651) - 732
Aircraft rotables Sold 23 (5) - 18
High-value aircraft maintenance tools Scrapped 220 (24) - 196
1,626 (680) - 946
For the six months ended 30 June 2023
Reason for Accumulated Provision for
disposal Cost depreciation impairment Carrying amount
Aircraft rotables Scrapped 5,668 (2,255) - 3,413
Aircraft rotables Sold 478 (201) - 277
High-value aircraft maintenance tools Scrapped 4,884 (3,211) - 1,673
- 11,030 (5,667) - 5,363
142
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(12) Construction in progress
(13) 30 June 2024 31 December 2023
Industrial Park Projects 1,241,923 2,252,284
Project of Distribution Hubs 257,653 474,378
Aircraft import and refit 293,177 164,643
Others 1,146,363 1,141,579
2,939,116 4,032,884
Including: Balance of provision for
impairment at the end of the
period - (17,324)
143
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(12) Construction in progress (Continued)
Including:
Transfer to Accumulative Borrowing
other long- Provision for Other amount of costs
Increase in term assets impairment in decreases in % of project capitalised capitalised in
31 December the current in the current the current the current investment Progress of borrowing the current Capitalisation Source of
Project name Budget 2023 year year year year 30 June 2024 in budget (i) project costs year rate funds
(ii)
Self-owned
funds and
loans from
Industrial Park financial
Projects 20,905,902 2,252,284 644,395 (1,653,871) (885) - 1,241,923 84.31% 84.31% 233,720 21,521 2.35% institutions
Project of
Distribution Self-owned
Hubs 20,472,968 474,378 578,504 (794,653) - (576) 257,653 80.89% 80.89% - - 0.00% funds
Aircraft import Self-owned
and refit 2,403,936 164,643 978,128 (848,135) - (1,459) 293,177 41.02% 41.02% - - 0.00% funds
Self-owned
funds and
loans from
financial
Others 1,141,579 531,510 (499,855) - (26,871) 1,146,363 7,516 7,516 2.42% institutions
4,032,884 2,732,537 (3,796,514) (885) (28,906) 2,939,116 241,236 29,037
(i) The Group considers the proportion of the budget amount of a single project to total assets to determine whether there are significant projects of
construction in progress. As at 30 June 2024, the Group had no projects of construction in progress with significant individual amount.
(ii) For aircraft import and refit, the percentage of project investment in budget is related to the investment for the current period; for the other projects, the
percentage of project investment in budget is related to the accumulative investment.
(iii) The construction in progress transferred to long-term assets for the current period amounted to RMB 3,796,514,000, including RMB 3,203,647,000
transferred to fixed assets, RMB 136,508,000 transferred to investment properties and RMB 456,359,000 transferred to long-term prepaid expenses.
(iv) For the buildings in the Group’s self-constructed industrial park projects, distribution hub projects and other projects, the part that has been completed and
accepted and is available for its intended use during the reporting period shall be transferred to fixed assets and investment properties accordingly.
144
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(12) Construction in progress (Continued)
(v) For the Group’s purchased aircraft, the part that has been modified during the reporting period and has met the design requirements and is available for its
intended use after installation, debugging and acceptance, shall be transferred to fixed assets accordingly.
(vi) As at 30 June 2024, no construction in progress was pledged as collateral for long-term borrowings (31 December 2023:RMB 272,393,000 of construction
in progress was pledged as collateral for long-term loans) (Note 4(26)(c)).
145
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(13) Right-of-use assets
Machinery and
equipment, and
Buildings Motor vehicles others Total
Cost
31 December 2023 30,624,525 554,218 79,692 31,258,435
Increase in the current period 2,781,941 15,576 16,715 2,814,232
Decrease in the current period (920,002) (45,846) (24,820) (990,668)
Effect of translation of foreign
currency financial statements 36,706 (47,366) (1,402) (12,062)
30 June 2024 32,523,170 476,582 70,185 33,069,937
Accumulated depreciation
31 December 2023 16,931,970 220,297 32,597 17,184,864
Increase in the current period 3,238,874 79,772 13,120 3,331,766
Decrease in the current period (509,061) (40,302) (5,533) (554,896)
Effect of translation of foreign
currency financial statements 11,574 (21,800) (1,090) (11,316)
30 June 2024 19,673,357 237,967 39,094 19,950,418
Carrying amount
30 June 2024 12,849,813 238,615 31,091 13,119,519
31 December 2023 13,692,555 333,921 47,095 14,073,571
As at 30 June 2024 and 31 December 2022, the Group considered that no impairment loss should be recognised for right-of-use assets.
146
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(14) Intangible assets
Self-
Land use Purchased developed Customer
rights software software Trademarks relationships Others Total
Cost
31 December 2023 7,702,755 857,547 7,276,600 4,966,033 5,952,090 358,340 27,113,365
Transfer from other long-term
assets in the current period
(Note 4(10) and Note
4(15)) 83,045 - 314,119 - - - 397,164
Increase in business
combinations involving
entities not under common
control - 1,464 - - 13,253 11,629 26,346
Purchase in the current period 331,225 17,832 - 3,296 - 1,852 354,205
Transfer to other long-term
assets in the current year
(Note 4(10)) (178,322) - - - - - (178,322)
Decrease in disposals of
subsidiaries in the current
period (110,846) - - - - - (110,846)
Other disposals in the current
period (37,569) (24,006) (73,286) (1,228) - (421) (136,510)
Effect of translation of foreign
currency financial
statements 27,694 (3,476) - 116,207 122,433 1,647 264,505
30 June 2024 7,817,982 849,361 7,517,433 5,084,308 6,087,776 373,047 27,729,907
147
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(14) Intangible assets (Continued)
Purchased Self-developed Customer
Land use rights software software Trademarks relationships Others Total
Accumulated amortisation
31 December 2023 880,885 679,279 5,098,778 842,331 1,150,340 211,727 8,863,340
Transfer from other long-term assets
in the current period (Note 4(10)) 6,793 - - - - - 6,793
Increase in business combinations
involving entities not under
common control - 1,076 - - - - 1,076
Increase in the current period 97,150 57,411 889,919 121,335 170,010 16,057 1,351,882
Transfer to other long-term assets in
the current year (Note 4(10)) (11,399) - - - - - (11,399)
Decrease in disposals of subsidiaries
in the current period (10,569) - - - - - (10,569)
Other disposals in the current period (165) (56,765) (19,416) (601) - (294) (77,241)
Effect of translation of foreign
currency financial statements 2,328 (2,288) - 19,237 17,679 1,216 38,172
30 June 2024 965,023 678,713 5,969,281 982,302 1,338,029 228,706 10,162,054
Provision for impairment
31 December 2023 5,394 - 97,428 4 - 6 102,832
Increase in the current period - - - - - - -
Decrease in the current period (5,394) - (13,779) - - - (19,173)
30 June 2024 - - 83,649 4 - 6 83,659
30 June 2024 6,852,959 170,648 1,464,503 4,102,002 4,749,747 144,335 17,484,194
31 December 2023 6,816,476 178,268 2,080,394 4,123,698 4,801,750 146,607 18,147,193
148
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(14) Intangible assets (Continued)
(a) For the six months ended 30 June 2024, the aggregate amount of amortisation expenses charged
to cost of sales, selling and distribution expenses, general and administrative expenses and
research and development expenses was RMB 1,286,487,000 (for the six months ended 30 June
2023: RMB 1,156,248,000).
(b) As at 30 June 2024, intangible assets with carrying amount of RMB 261,868,000 (31 December
2023: RMB 292,495,000) were pledged as collateral for long-term borrowings, of which intangible
assets with a carrying value of RMB 131,594,000 (December 31, 2023:RMB 144,678,000) were
pledged as collateral for short-term borrowings at the same time (Note 4(19)(b) and Note 4(26)(c)).
(c) As at 30 June 2024, the Group was still in the process of applying for certificates of ownership for
land use rights with carrying amount of RMB 139,222,000 (with cost of RMB 151,135,000) (31
December 2023: carrying amount of RMB 157,465,000 and cost of RMB 167,949,000).
(d) As at 30 June 2024, the intangible assets developed by the Group accounted for 8.38% (31
December 2023: 11.46%) of the carrying amount of intangible assets.
(15) Research and development expenditures
The Group’s total expenditures on research and development for the six months ended 30 June
2024 are listed by nature as follows:
For the six months ended 30 June 2024
Research and Development
development expenses costs Total
Employee benefits 664,346 236,486 900,832
Depreciation and amortisation 531,917 34,140 566,057
Others 105,192 29,385 134,577
1,301,455 300,011 1,601,466
For the six months ended 30 June 2023
Research and Development
development expenses costs Total
Employee benefits 627,894 427,464 1,055,358
Depreciation and amortisation 431,138 35,994 467,132
Others 115,938 106,743 222,681
1,174,970 570,201 1,745,171
149
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(15) Research and development expenditures (Continued)
The changes in the Group’s capitalised development expenditures for the six months ended 30
June 2024 are analysed as follows:
Transfer to
intangible Other
Increase in assets in the decreases in
31 December the current current period the current 30 June
2023 period (Note 4(14)) period 2024
System
development 129,845 300,011 (314,119) (25,682) 90,055
(a) For the six months ended 30 June 2024, the Group had no impairment on development
expenditures (for the six months ended 30 June 2023: none).
(b) The Group considers the proportion of opening balance or ending balance of individual research
and development project to total assets to determine whether there are significant research and
development projects. As at 30 June 2024, the Group had no research and development projects
with significant individual amount.
150
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(16) Goodwill
Effect of foreign
31 December Increase in the Restructuring in the currency 30 June
2023 current period (a) current period (b) translation 2024
Cost:
Kerry Logistics Business 5,889,255 70,732 (62,430) 133,657 6,031,214
KEX - - 62,430 1,459 63,889
SF Supply Chain Business 3,082,119 - - 72,056 3,154,175
SF/HAVI China Logistics (Cayman
islands) (“HAVI”) 367,896 - - 8,598 376,494
Guangdong Shunxin Freight Co., Ltd. 149,587 - - - 149,587
Others 84,014 4,053 - 431 88,498
9,572,871 74,785 - 216,201 9,863,857
Less: Provisions for impairment (Note
4(18))
Others (2,435) - - - (2,435)
9,570,436 74,785 - 216,201 9,861,422
(a) The increase in goodwill of the Group in the current period was mainly attributable to the acquisition of 65.00% equity in Business By Air SAS (“BBA”)
(Note 5(1)(a)).
151
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(16) Goodwill (Continued)
(b) During the reporting period, Kerry Logistics distributed a special interim dividend to its eligible shareholders with 907,200,000 shares in KEX, which
accounts for approximately 52.1% of all issued KEX shares. After the distribution, the Group acquired a total of 467,373,855 shares of KEX, accounting for
approximately 26.8% of all issued KEX shares, triggering a mandatory takeover bid for KEX under the Thailand Code (which refers to rules, Conditions and
Procedures for the Acquisition of Securities in Business Acquisitions (as amended) and any other relevant rules, regulations and circulars issued
thereunder in the Securities and Exchange Act of Thailand B.E. 2535 (1992) (as amended) and the Capital Market Supervisory Board Circular No. Tor Jor.
12/2554). The Group has made a tender offer to KEX shareholders at a price of THB 5.5 per share to acquire the KEX shares held by them. On 26 March
2024 (the “Reorganization Date”), the interim dividend distribution and the offer acquisition in the above transaction were completed. The Group acquired a
total of 1,091,818,327 shares of KEX, accounting for 62.7% of the issued shares of KEX.
After the completion of the above transaction, KEX is no longer directly held, managed and controlled by Kerry Logistics. The Group will split the Kerry
Logistics business into two asset groups, including the Kerry Logistics business (excluding the KEX business) and the KEX business. The goodwill arising
from the acquisition of Kerry Logistics is allocated in proportion to the fair value of the asset group combination of the Kerry Logistics business (excluding
KEX business) asset group and the KEX business asset group on the restructuring date.
(c) During the goodwill impairment test, the Group compares the carrying amount of the relevant assets or combinations of asset groups (including goodwill)
with their recoverable amount. If the recoverable amount is lower than the carrying amount, the difference shall be included in profit or loss for the current
period. As at 30 June 2024 and 31 December 2023, the Group assessed that no provision for impairment should be made for goodwill.
152
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(17) Long-term prepaid expenses
Other decreases
31 December Increase in the Amortisation in in the current 30 June
2023 current period the current period period 2024
Improvements to right-of-use assets 2,141,678 553,443 (535,193) (40,816) 2,119,112
Settling-in allowance and introduction fee for pilots 805,415 21,880 (53,109) - 774,186
Others 214,311 30,608 (24,528) (3,801) 216,590
3,161,404 605,931 (612,830) (44,617) 3,109,888
153
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(18) Provision for credit/asset impairment and losses
Differences on
translation of foreign
31 December Provision/ currency financial 30 June
2023 (Reversal) Write-off statements and others 2024
Provision for bad debts 1,617,562 164,256 (210,684) 5,078 1,576,212
Including: Provision for bad debts of accounts receivable
(Note 4(3)) 1,378,665 165,988 (209,411) 3,894 1,339,136
Provision for bad debts of other receivables
(Note 4(5)) 223,719 (114) (1,273) 1,098 223,430
Provision for bad debts of long-term
receivables (Note 4(7)) 15,178 (1,618) - 86 13,646
Provision for bad debts of factoring receivables 123,815 - - - 123,815
Provision for bad debts of loans and advances 8,704 (4,699) - 438 4,443
Sub-total 1,750,081 159,557 (210,684) 5,516 1,704,470
Provision for impairment of long-term equity investments
(Note 4(8)) 346,224 - - (6,916) 339,308
Provision for impairment of fixed assets (Note 4(11)) 1,641 - - - 1,641
Provision for impairment of intangible assets
(Note 4(14)) 102,832 - - (19,173) 83,659
Provision for decline in the value of inventories 2,782 424 - 69 3,275
Provision for impairment of contract assets 3,552 315 - (54) 3,813
Provision for impairment of goodwill (Note 4(16)) 2,435 - - - 2,435
Provision for impairment of construction in progress
(Note 4(12)) 17,324 885 - (18,209) -
Sub-total 476,790 1,624 - (44,283) 434,131
2,226,871 161,181 (210,684) (38,767) 2,138,601
154
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(19) Short-term borrowings
30 June 2024 31 December 2023
Unsecured borrowings 23,172,135 12,959,996
Guaranteed borrowings (a) 448,933 5,156,012
Secured borrowings (b) 70,138 105,969
Pledged borrowings 290 -
23,691,496 18,221,977
(a) As at 30 June 2024, guaranteed borrowings of RMB 448,933,000 (31 December 2023: RMB
5,156,012,000) were guaranteed by subsidiaries within the Group.
(b) As at 30 June 2024, secured borrowings of RMB 70,138,000 were secured by the following assets
respectively:
Including: also secured
Carrying amount of for long-term
secured assets borrowings
Fixed assets 498,743 498,743
Intangible assets 131,594 131,594
630,337 630,337
As at 31 December 2023, secured borrowings of RMB 105,969,000 were secured by the following
assets respectively:
Including: also secured
Carrying amount of for long-term
secured assets borrowings
Fixed assets 536,746 536,746
Intangible assets 144,678 144,678
681,424 681,424
(c) As at 30 June 2024, the Group had no overdue short-term borrowings, and the interest rate range
of short-term borrowings was 2.27% to 6.77% (31 December 2023: 2.20% to 7.47%) per annum.
155
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(20) Accounts payable
30 June 2024 31 December 2023
Payables to related parties (Note 8(4)(h)) 397,211 421,194
Payables for services and purchases 23,404,030 24,424,941
23,801,241 24,846,135
As at 30 June 2024, accounts payable with ageing over one year amounted to RMB 283,072,000
(31 December 2023: RMB 408,452,000), including outsourcing cost and transportation cost
payable. The final settlement of the payment has not been made because the Group has not
received the invoice from the suppliers.
(21) Employee benefits payable
30 June 2024 31 December 2023
Short-term employee benefits payable (a) 4,427,694 5,547,556
Defined contribution plans payable (b) 77,566 61,053
4,505,260 5,608,609
(a) Short-term employee benefits
31 December Increase in the Decrease in the 30 June
2023 current period current period 2024
Wages and salaries,
bonus, allowances
and subsidies 5,016,325 13,650,837 (14,684,134) 3,983,028
Staff welfare 106,885 927,780 (890,735) 143,930
Social security
contributions 22,891 408,488 (410,403) 20,976
Including: Medical
insurance 19,483 360,502 (361,729) 18,256
Work injury
insurance 2,449 38,532 (39,444) 1,537
Maternity
insurance 959 9,454 (9,230) 1,183
Housing funds 10,487 218,420 (217,274) 11,633
Labour union funds and
employee education
funds 367,710 206,834 (332,876) 241,668
Others 23,258 176,865 (173,664) 26,459
5,547,556 15,589,224 (16,709,086) 4,427,694
(b) Defined contribution plans
31 December Increase in the Decrease in the 30 June
2023 current period current period 2024
Basic pensions 59,872 704,223 (687,554) 76,541
Unemployment
insurance 1,181 23,647 (23,803) 1,025
61,053 727,870 (711,357) 77,566
156
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(22) Taxes payable
30 June 2024 31 December 2023
Enterprise income tax payable 1,221,636 1,394,250
Unpaid VAT 581,780 538,510
Others 175,192 196,955
1,978,608 2,129,715
(23) Other payables
30 June 2024 31 December 2023
Accounts payable to related parties (Note
8(4)(j)) 95,908 134,589
Engineering equipment payable 3,209,908 4,345,119
Deposits payable 2,037,026 1,849,724
Payables of cash collected on delivery
service on behalf of other parties 1,442,384 1,534,338
Recharge payable 1,151,727 1,014,895
Payables to banks for supply chain finance
products/re-factoring 191,941 543,389
Warranty payments payable 479,205 505,725
Management fees payable 236,592 159,211
Professional service fees payable 135,058 134,607
Dividends payable 148,200 142,507
Payable for equity acquisition 281,790 267,886
Others 929,077 862,851
10,338,816 11,494,841
As at 30 June 2024, other payables with ageing over one year amounted to RMB 1,804,829,000
(31 December 2023: RMB 1,149,236,000), mainly the undue deposits of continuing business and
the unsettled engineering equipment funds.
(24) Current portion of Non-current liabilities
30 June 2024 31 December 2023
Current portion of lease liabilities (Note
4(28)) 5,540,079 5,769,965
Current portion of long-term borrowings
(Note 4(26)) 2,594,948 2,813,385
Current portion of debentures payable (a) 113,666 615,295
Current portion of long-term payables 22,349 23,571
Current portion of cash-settled share-based
payments - 263,732
8,271,042 9,485,948
157
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(24) Current portion of Non-current liabilities (Continued)
(a) Current portion of debentures payable to be settled within one year
Reclassification Effect of
from debentures translation of
payable in the Repayment foreign currency
31 December Interest Amortisation of current period for the current financial 30 June
2023 accrual premium/discount (Note 4(27)) period statements 2024
Green Corporate Debentures of
2021 (1st instalment) 512,866 6,006 78 - (518,950) - -
Other debentures payable 102,429 - - 271,513 (258,322) (1,954) 113,666
615,295 6,006 78 271,513 (777,272) (1,954) 113,666
158
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(25) Other current liabilities
30 June 2024 31 December 2023
Output VAT to be recognised arising from
contract liabilities 113,155 129,212
Ultra short-term commercial notes (a) 2,310,195 -
Others 31,892 38,456
2,455,242 167,668
(a) The ultra short-term commercial notes are detailed as follows:
Par Date Interest Default
value of issue Term rate or not
(RMB’000)
The First Phase of
2024 1,000,000 8 March 2024 270 days 2.24% No
The Second Phase of
2024 500,000 15 March 2024 270 days 2.24% No
The Third Phase of
2024 800,000 21 June 2024 270 days 1.85% No
(26) Long-term borrowings
30 June 2024 31 December 2023
Guaranteed borrowings (a) 5,731,171 5,633,173
Pledged borrowings (b) 1,669,853 2,150,466
Unsecured borrowings 4,588,063 5,113,058
Secured borrowings (c) 1,267,327 1,271,929
13,256,414 14,168,626
Less: Current portion of ong-term borrowings
(Note 4(24))
Guaranteed borrowings (270,838) (914,982)
Pledged borrowings (998,003) (668,094)
Unsecured borrowings (1,276,707) (1,156,039)
Secured borrowings (49,400) (74,270)
(2,594,948) (2,813,385)
10,661,466 11,355,241
159
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(26) Long-term borrowings (Continued)
(a) As at 30 June 2024, the Group’s guaranteed borrowings of RMB 5,711,171,000 (31 December
2023: RMB 5,608,173,000) were guaranteed by subsidiaries within the Group and guaranteed
borrowings of RMB 20,000,000 (31 December 2023: RMB 25,000,000) were guaranteed by
Shenzhen S.F. Taisen Holdings (Group) Co., Ltd. (“Taisen Holdings”) and Havi.
(b) As at 30 June 2024, the entitlement to receivables arising from aircraft financial leasing business of
subsidiary SF Airlines Company Limited (“SF Airlines”) was pledged by subsidiary Shunyuan
Financial Leasing (Tianjin) Co., Ltd. (“Shunyuan Financial Leasing”) for the pledged bank
borrowings of RMB 1,669,853,000 (31 December 2023: RMB 2,150,466,000). As at 30 June 2024,
balance of receivables pledged was RMB 2,797,164,000 (31 December 2023: RMB 2,496,880,000).
(c) As at 30 June 2024, secured borrowings of RMB 1,267,327,000 were secured by the following
assets respectively:
Including: also secured
Carrying amount of for short-term
secured assets borrowings
Fixed assets 498,743 498,743
Intangible assets 261,868 131,594
Investment properties 110,919 -
871,530 630,337
As at 31 December 2023, secured borrowings of RMB 1,271,929,000 were secured by the
following assets respectively:
Including: also secured
Carrying amount of for short-term
secured assets borrowings
Fixed assets 536,746 536,746
Intangible assets 292,495 144,678
Investment properties 111,124 -
Construction in progress 272,393 -
1,212,758 681,424
Besides, as at 30 June 2024, Taisen Holdings provided a full joint and several liability guarantee for
RMB 1,240,920,000 (31 December 2023: RMB 1,239,787,000) of the above secured borrowings.
(d) As at 30 June 2024, the Group had no overdue long-term borrowings, and the interest rate range of
long-term borrowings was 2.44% to 5.30% (31 December 2023: 2.20% to 6.91%) per annum.
160
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(27) Debentures payable
Effect of
translation of Debentures
foreign payable to be
Amortisation currency settled within
31 December Issued in the Issuance Repurchase Interest of premium/ financial one year 30 June
2023 period expenses in the period accrual discount statements (Note 4(24)) 2024
Overseas debentures
denominated in USD of 2020 4,926,684 - - (114,649) 70,627 4,687 111,987 (70,627) 4,928,709
Overseas debentures
denominated in USD of 2021 8,470,887 - - (253,802) 121,132 7,717 190,962 (121,132) 8,415,764
Overseas debentures
denominated in USD of 2022 4,897,492 - - (151,192) 66,916 11,297 110,477 (66,916) 4,868,074
Smooth Freight Logistics
Debentures (1st instalment) 499,719 - - - 6,937 80 - (6,937) 499,799
The First Debentures of 2024 - 500,000 (236) - 3,526 23 - (3,526) 499,787
Middle-term notes of 2024 - 500,000 (1,179) - 2,375 42 - (2,375) 498,863
18,794,782 1,000,000 (1,415) (519,643) 271,513 23,846 413,426 (271,513) 19,710,996
161
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(27) Debentures payable (Continued)
Nominal
Issuer Currency Par value Date of issue Term Issued amount interest rate Default or not
(RMB’000) (equivalent to RMB)
Overseas debentures denominated
in USD of 2020 SF Holding Investment Limited USD 700,000 20 February 2020 10 years 5,088,193 2.88% No
Overseas debentures denominated
in USD of 2021 SF Holding Investment 2021 Limited USD 400,000 17 November 2021 5 years 2,907,539 2.38% No
Overseas debentures denominated
in USD of 2021 SF Holding Investment 2021 Limited USD 300,000 17 November 2021 7 years 2,180,654 3.00% No
Overseas debentures denominated
in USD of 2021 SF Holding Investment 2021 Limited USD 500,000 17 November 2021 10 years 3,634,424 3.13% No
Overseas debentures denominated
in USD of 2022 SF Holding Investment 2021 Limited USD 400,000 28 January 2022 5 years 2,907,539 2.38% No
Overseas debentures denominated
in USD of 2022 SF Holding Investment 2021 Limited USD 300,000 28 January 2022 10 years 2,180,654 3.13% No
Smooth Freight Logistics 22 September
Debentures (1st instalment) Taisen Holdings RMB 500,000 2022 3 years 500,000 2.79% No
The First Debentures of 2024 Taisen Holdings RMB 500,000 13 March 2024 3 years 500,000 2.60% No
Middle-term notes of 2024 Taisen Holdings RMB 500,000 23 April 2024 5 years 500,000 2.55% No
162
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(28) Lease liabilities
30 June 2024 31 December 2023
Lease liabilities 13,012,472 13,808,460
Less: Current portion of lease liabilities (Note
4(24)) (5,540,079) (5,769,965)
7,472,393 8,038,495
(29) Deferred income
Amount
recognised in
Increase in other income
31 December the current in the current 30 June
2023 period period 2024
Government grants (Note 4(43))
Government support funds for
industrial park 567,729 109,056 (5,997) 670,788
Huanggang Baitan Lake
Organising Committee
Project 437,304 20,000 (3,668) 453,636
Others 85,611 11,587 (10,751) 86,447
1,090,644 140,643 (20,416) 1,210,871
The above government grants are all government grants related to assets.
163
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(30) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2024 31 December 2023
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Deductible losses 3,975,562 885,930 4,011,713 900,683
Depreciation and
amortisation
differences 3,546,780 833,879 3,671,061 849,888
Accrued expenses 1,856,472 419,746 2,018,943 480,077
Lease liabilities 11,732,568 2,797,992 12,542,513 2,998,695
Provision for asset
impairment 797,756 192,309 722,267 174,813
Unrealised profits from
internal transactions 376,409 94,102 449,497 112,374
Others 337,668 81,220 344,204 82,661
22,623,215 5,305,178 23,760,198 5,599,191
Including:
Expected to be
recovered within
one year (inclusive) 1,851,494 2,002,169
Expected to be
recovered after one
year 3,453,684 3,597,022
5,305,178 5,599,191
(b) Deductible losses and deductible temporary differences that are not recognised as deferred tax
assets are analysed as follows:
30 June 2024 31 December 2023
Deductible losses (c) 18,770,064 18,873,618
Deductible temporary differences 1,439,951 1,113,144
20,210,015 19,986,762
164
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(30) Deferred tax assets and deferred tax liabilities (Continued)
(c) The following table shows unrecognised deductible losses based on its expiration date:
30 June 2024 31 December 2023
2024 1,035,858 1,270,206
2025 3,527,250 3,954,921
2026 4,246,723 4,468,234
2027 2,933,073 3,254,460
2028 1,830,209 2,146,335
2029 and subsequent years 5,196,951 3,779,462
18,770,064 18,873,618
(d) Deferred tax liabilities before offsetting
30 June 2024 31 December 2023
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Appreciation in asset value
arising from business
combinations involving
entities not under
common control 12,333,385 2,970,490 12,385,409 2,971,543
Depreciation and
amortisation differences 7,497,693 1,737,948 6,823,020 1,606,602
Changes in fair value of
financial assets 1,379,287 345,151 1,436,715 359,178
Right-of-use assets 11,025,949 2,626,955 11,850,559 2,830,561
Others 472,190 107,921 525,038 118,411
32,708,504 7,788,465 33,020,741 7,886,295
Including:
Expected to be recovered
within one year
(inclusive) 1,773,587 1,861,507
Expected to be recovered
after one year 6,014,878 6,024,788
7,788,465 7,886,295
165
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(30) Deferred tax assets and deferred tax liabilities (Continued)
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting are as follows:
30 June 2024 31 December 2023
Deferred tax assets, net 2,053,570 2,263,870
Deferred tax liabilities, net 4,536,857 4,550,974
(31) Share capital
31 December Increase in the Decrease in the 30 June
2023 current period current period 2024
(Note 4(33))
Ordinary shares
denominated in
RMB 4,895,202 - (79,291) 4,815,911
31 December Increase in the Decrease in the 30 June
2022 current period current period 2023
Ordinary shares
denominated in
RMB 4,895,202 - - 4,895,202
166
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(32) Capital reserve
31 December 30 June
2023 2024
Increase in the Decrease in the
current period current period
Share premium
- Capital contribution/(deduction) by
shareholders 34,978,720 127 (3,496,254) 31,482,593
- Transfer of convertible corporate
debentures to share capital 5,758,688 - - 5,758,688
- Capital reserve from transactions
with minority shareholders (810,357) - (3,760,142) (4,570,499)
- Transfer of convertible corporate
debentures issued by
subsidiaries to share capital 1,980,870 - - 1,980,870
- Business combinations involving
entities under common control (76,633) - - (76,633)
- Exercise of share-based payments 43,898 - - 43,898
Other capital reserve
- Share-based payments included in
capital reserve 833,189 62,186 - 895,375
- Others 455,710 - - 455,710
43,164,085 62,313 (7,256,396) 35,970,002
31 December 30 June
2022 2023
Increase in the Decrease in the
current period current period
Share premium
- Capital contribution by
shareholders 34,978,720 890 - 34,979,610
- Transfer of convertible corporate
debentures to share capital 5,758,688 - - 5,758,688
- Capital reserve from transactions
with minority shareholders 225,677 - (11,444) 214,233
- Transfer of convertible corporate
debentures issued by
subsidiaries to share capital 1,980,870 - - 1,980,870
- Business combinations involving
entities under common control (76,633) - - (76,633)
Other capital reserve
- Share-based payments included in
capital reserve 675,189 151,413 - 826,602
- Others 453,726 - (3,041) 450,685
43,996,237 152,303 (14,485) 44,134,055
167
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(33) Treasury stock
Increase in the Decrease in the
31 December 2023 current period current period 30 June 2024
Treasury stock 2,575,532 1,378,503 (3,575,545) 378,490
Increase in the Decrease in the
31 December 2022 current period current period 30 June 2023
Treasury stock 2,040,377 59,936 - 2,100,313
(i) In accordance with the Proposal of Repurchasing Shares by Centralised Price Bidding passed in
the 22nd session of the fifth Board of Directors on 2 March 2022 and the 28th session of the fifth
Board of Directors on 22 September 2022, the Company repurchased a portion of shares issued to
the public for employee stock ownership plan or share-based incentive through centralised price
bidding by self-owned funds. As at 21 September 2023, the above share repurchase had been
completed. The Company repurchased a total of 59,471,139 shares, of which 8,420,193 shares
had been used for the exercise of the first exercise period of stock options granted for the first time
under the stock option incentive plan in 2022, and the remaining of 51,050,946 shares had not
been used as at 31 December 2023.
(ii) In accordance with the Proposal of Repurchasing Shares by Centralised Price Bidding passed in
the 11st session of the sixth Board of Directors on 30 January 2024, the Company repurchased a
portion of shares issued to the public for employee stock ownership plan or share-based incentive
through centralised price bidding by self-owned funds. As at 26 April 2024, the Company’s share
repurchase plan was implemented, with a total of 28,240,207 shares repurchased and treasury
stock of RMB 1,000,013,000 recognized. As at the completion of this repurchase, the total number
of unused shares repurchased by the Company after the aforesaid share repurchase plan was
79,291,153 shares.
(iii) In accordance with the Proposal of Changing the Purpose of Repurchased Shares and Cancelling
the Shares passed in the 12th session of the sixth Board of Directors on 26 March 2024 and the
2023 shareholders’ meeting on 30 April 2024, the Company changed the purpose of the
repurchased shares in the share repurchase plan in March and September 2022 and January 2024.
On 20 June 2024, the Company completed the cancellation of 79,291,153 repurchased shares,
with a total write-off of treasury stock of RMB 3,575,545,000, of which the share capital was
decreased by RMB 79,291,000 and the capital reserve was decreased by RMB 3,496,254,000.
(iv) In accordance with the Proposal of the Second Phase of Share Repurchase Plan in 2024 passed in
the 13th session of the sixth Board of Directors on 29 April 2024, the Company repurchased a
portion of shares issued to the public for employee stock ownership plan or share-based incentive
through centralised price bidding by self-owned funds. As at 30 June 2024, the Company had
repurchased an aggregate of 10,199,584 shares and recognized RMB 378,490,000 of treasury
stock.
168
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(34) Special reserve
Increase in the Decrease in the
31 December 2023 current period current period 30 June 2024
Safety reserve - 272,081 (272,081) -
Increase in the Decrease in the
31 December 2022 current period current period 30 June 2023
Safety reserve - 18,568 (18,568) -
Pursuant to the Administrative Measures for the Collection and Utilisation of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the State Administration
of Work Safety on 21 November 2022, 1% of the income from the “common cargo transportation
business” which is operated by certain subsidiaries of the Group is appropriated to safety reserve.
The safety reserve are recognised in profit or loss as the “special reserve” item for the current
period. When the accrued safety reserve are used under the prescribed conditions, they are written
off against the original amount directly.
(35) Surplus reserve
Increase in the Decrease in the
31 December 2023 current period current period 30 June 2024
Statutory surplus
reserve 2,413,786 - - 2,413,786
Increase in the Decrease in the
31 December 2022 current period current period 30 June 2023
Statutory surplus
reserve 1,010,253 - - 1,010,253
169
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(36) Retained earnings
For the six months ended 30 June
2024 2023
Retained earnings at the beginning of the
period 38,835,999 33,371,351
Add: Net profit attributable to shareholders
of the parent company for the
current period 4,806,714 4,176,282
Transfer from other comprehensive income
to retained earnings (5,060) 18
Less: Ordinary share dividends payable (a) (2,889,210) (1,213,616)
Retained earnings at the end of the period 40,748,443 36,334,035
(a) The Company held a shareholders’ meeting on 30 April 2024. On the basis of the total share
capital at the registration date on which the 2023 profit distribution plan was implemented less the
special shares repurchased by the Company, a total of RMB 2,889,210,000 of cash dividends were
distributed to all shareholders at RMB 6.00 (including tax) per 10 shares, without bonus shares
being given or capital reserve being transferred into the share capital.
(37) Revenue and cost of revenue
For the six months ended 30 June
2024 2023
Revenue from main operations (a) 134,220,484 124,148,438
Revenue from other operations (a) 189,236 217,160
Total revenue 134,409,720 124,365,598
Cost of revenue from main operations 115,695,398 107,411,483
Cost of revenue from other operations 89,374 143,797
Total cost of revenue 115,784,772 107,555,280
170
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(37) Revenue and cost of sales (Continued)
(a) The Group’s revenue is disaggregated as follows:
For the six months ended 30 June 2024
Logistics and
freight forwarding Sales of
services goods Others Total
Revenue from main operations
Including: Recognised at a point in
time - 3,216,236 208,598 3,424,834
Recognised over a
period of time 130,207,965 - 413,658 130,621,623
Lease income - - 174,027 174,027
130,207,965 3,216,236 796,283 134,220,484
Revenue from other operations
Including: Recognised at a point in
time - - 34,616 34,616
Recognised over a
period of time - - 72,947 72,947
Lease income - - 81,673 81,673
- - 189,236 189,236
Total 130,207,965 3,216,236 985,519 134,409,720
For the six months ended 30 June 2023
Logistics and
freight forwarding Sales of
services goods Others Total
Revenue from main operations
Including: Recognised at a point in
time - 2,754,076 198,951 2,953,027
Recognised over a
period of time 120,855,099 - 188,156 121,043,255
Lease income - - 152,156 152,156
120,855,099 2,754,076 539,263 124,148,438
Revenue from other operations
Including: Recognised at a point in
time - - 33,265 33,265
Recognised over a
period of time - - 75,201 75,201
Lease income - - 108,694 108,694
- - 217,160 217,160
Total 120,855,099 2,754,076 756,423 124,365,598
As at 30 June 2024, the Group’s performance obligations that had been entered into but had not
yet been performed or not been fully performed were part of a contract for an estimated period of
not more than one year.
171
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(38) Selling and distribution expenses
For the six months ended 30 June
2024 2023
Outsourcing staff expenses 498,454 449,632
Employee benefits 383,303 390,973
Depreciation and amortisation expenses 195,380 183,934
Others 393,755 368,216
1,470,892 1,392,755
(39) General and administrative expenses
For the six months ended 30 June
2024 2023
Employee benefits 7,289,904 7,407,612
Depreciation and amortisation expenses 301,638 279,889
Outsourcing staff expenses 222,013 240,235
Others 1,152,886 1,012,845
8,966,441 8,940,581
(40) Research and development expenses
For the six months ended 30 June
2024 2023
Employee benefits 664,346 627,894
Depreciation and amortisation expenses 531,917 431,138
Others 105,192 115,938
1,301,455 1,174,970
(41) Financial costs
For the six months ended 30 June
2024 2023
Interest on borrowings 997,654 866,130
Add: Interest expenses on lease liabilities 262,301 289,013
Less: Capitalised interest (Note 4(12)) (29,037) (62,470)
Interest expenses 1,230,918 1,092,673
Less: Interest income (415,064) (292,849)
Net gains or losses on exchange (4,703) 133,258
Commission expenses and others 82,831 59,397
893,982 992,479
172
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(42) Expenses by nature
The cost of revenue, selling and distribution expenses, general and administrative expenses and
research and development expenses in the income statement are listed as follows by nature:
For the six months ended 30 June
2024 2023
Transportation costs 24,040,343 21,120,397
Including: Aircraft maintenance costs 248,687 209,844
Outsourcing staff expenses 46,426,202 41,999,886
Outsourcing transportation costs 18,725,511 18,187,306
Employee benefits 16,170,240 16,270,441
Depreciation and amortisation expenses 5,457,884 4,889,967
Depreciation of right-of-use assets 3,331,766 3,608,140
Venue usage expenses 3,599,946 3,381,074
Others 9,771,668 9,606,375
127,523,560 119,063,586
(i) For the six months ended 30 June 2024, the Group’s government grants which were offset against
costs and expenses amounted to RMB 511,053,000 (for the six months ended 30 June 2023: RMB
97,625,000). Therein, the amount that was recognised in non-recurring profit or loss amounted to
RMB 62,237,000 (for the six months ended 30 June 2023: RMB 68,977,000).
(ii) The Group directly recognises the lease payments of short-term leases and low value leases in
profit or loss. For the six months ended 30 June 2024, the amount was RMB 1,885,251,000 (for the
six months ended 30 June 2023: RMB 1,774,416,000).
(43) Other income
For the six months ended 30 June
2024 2023
Tax preference 249,934 534,683
Fiscal appropriation and subsidies 133,009 185,478
Amortisation of deferred income (Note 4(29)) 20,416 27,515
403,359 747,676
For the six months ended 30 June 2024, the amount of other income that was recognised in non-
recurring profit or loss amounted to RMB 262,460,000 (for the six months ended 30 June 2023:
RMB 351,691,000).
173
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(44) Investment income
For the six months ended 30 June
2024 2023
Investment income from financial assets held for trading 142,287 253,799
Investment income from disposals of subsidiaries 91,950 244,982
Investment income from disposals of other investments 62,153 12,269
Investment income from dividends of financial assets not
held for trading 426 2,535
Share of net gains/(losses) of investees under equity method (62,580) (13,486)
Others 124,632 498
358,868 500,597
(45) Non-operating income and expenses
(a) Non-operating income
For the six months ended 30 June
Amount recognised Amount recognised
in non-recurring in non-recurring
2024 profit or loss 2023 profit or loss
Compensation income 32,008 32,008 26,070 26,070
Government grants 1,552 1,552 4,561 4,561
Others 135,405 135,405 99,562 99,562
168,965 168,965 130,193 130,193
(b) Non-operating expenses
For the six months ended 30 June
Amount recognised Amount recognised
in non-recurring in non-recurring
2024 profit or loss 2023 profit or loss
Losses on disposals of
long-term assets 26,810 26,810 112,632 112,632
Compensation
expenses 48,787 48,787 40,973 40,973
Others 131,837 131,837 35,349 35,349
207,434 207,434 188,954 188,954
174
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(46) Income tax expenses
For the six months ended 30 June
2024 2023
Current income tax 1,421,021 1,606,404
Deferred income tax 138,114 (80,294)
1,559,135 1,526,110
The reconciliation from income tax calculated based on the applicable tax rates and total profit
presented in the income statement to the income tax expenses is set out as below:
For the six months ended 30 June
2024 2023
Total profit 6,320,057 5,420,350
Income tax expenses calculated at the
standard tax rate of 25% 1,580,014 1,355,088
Income not subject to tax (42,290) (105,771)
Costs, expenses and losses not deductible
for tax purposes 136,854 82,601
Effect of tax filing (19,336) (20,207)
Effect of different tax rates among
subsidiaries and branches on income tax
expenses (83,097) (139,095)
Effect of tax preference (77,079) (78,994)
Deductible losses and deductible temporary
differences for which no deferred tax asset
was recognised in the current period 348,380 571,816
Reversal of deductible tax losses for which
deferred tax assets were recognised in
prior period 27,527 -
Utilisation of deductible losses and other
deductible temporary differences for which
no deferred tax asset was recognised in
prior periods (213,421) (139,328)
Recognition of deductible losses and other
deductible temporary differences for which
no deferred tax asset was recognised in
prior period (98,417) -
Income tax expenses 1,559,135 1,526,110
175
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(47) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company by the weighted average number of outstanding ordinary
shares of the parent company:
For the six months ended 30 June
2024 2023
Consolidated net profit attributable to
ordinary shareholders of the parent
company 4,806,714 4,176,282
Weighted average number of outstanding
ordinary shares of the Company 4,829,673 4,854,831
Basic earnings per share (RMB/share) 1.00 0.86
Including:
- Basic earnings per share from continuing
operations (RMB/share) 1.00 0.86
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the
adjusted weighted average number of outstanding ordinary shares of the Company. For the six
months ended 30 June 2024, the Company didn’t have any potential dilutive ordinary shares (it did
for the six months ended 30 June 2023).
For the six months ended 30 June
2024 2023
Consolidated net profit attributable to
ordinary shareholders of the parent
company 4,806,714 4,176,282
Adjusted consolidated net profit attributable
to ordinary shareholders of the parent
company for calculation of earnings per
share 4,806,714 4,176,282
Weighted average number of outstanding
ordinary shares of the Company
4,829,673 4,854,831
Add: Effect of the Group’s share-based
payments plan - 10,250
Weighted average number of outstanding
diluted ordinary shares 4,829,673 4,865,081
Diluted earnings per share 1.00 0.86
176
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(48) Other comprehensive income
Other comprehensive income, the related income tax effect and the reclassifications to profit or loss for the six months ended 30 June 2024 and the six
months ended 30 June 2023:
Other comprehensive income in income statement for the six months ended 30
Other comprehensive income in the balance sheet June 2024
Attributable to Other
the parent comprehensive Amount incurred Attributable to Attributable to
company in the income before income the parent minority
31 December current period - transferred to 30 June tax for the Less: Income company - shareholders -
2023 net of tax retained earnings 2024 current period tax credits net of tax net of tax
Other comprehensive income
items which will not be
reclassified subsequently to
profit or loss
Changes in fair value of
investments in other equity
instruments 3,573,383 (1,296,131) 5,060 2,282,312 (1,362,163) 2,467 (1,296,131) (63,565)
Other comprehensive income
items which will not be
transferred to profit or loss
under the equity method (3,093) - - (3,093) - - - -
Other comprehensive income
items which will be
reclassified subsequently to
profit or loss
Cash flow hedging reserve - (1,012) - (1,012) (1,012) - (1,012) -
Other comprehensive income
items which will be
transferred to profit or loss
under the equity method (23,994) (10,370) - (34,364) (10,370) - (10,370) -
Effect of translation of foreign
currency financial statements 1,986,132 247,194 - 2,233,326 (88,599) - 247,194 (335,793)
5,532,428 (1,060,319) 5,060 4,477,169 (1,462,144) 2,467 (1,060,319) (399,358)
177
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(48) Other comprehensive income (Continued)
Other comprehensive income in income statement for the six months ended 30
Other comprehensive income in the balance sheet June 2023
Attributable to Other
the parent comprehensive Amount incurred Attributable to Attributable to
company in the income before income the parent minority
31 December current period - transferred to 30 June tax for the Less: Income company - shareholders -
2022 net of tax retained earnings 2023 current period tax credits net of tax net of tax
Other comprehensive income
items which will not be
reclassified subsequently to
profit or loss
Changes in fair value of
investments in other equity
instruments 2,965,732 (30,021) (18) 2,935,693 (53,984) 1,244 (30,021) (22,719)
Other comprehensive income
items which will not be
transferred to profit or loss
under the equity method (2,764) - - (2,764) - - - -
Other comprehensive income
items which will be
reclassified subsequently to
profit or loss
Cash flow hedging reserve (12,002) 8,740 - (3,262) 8,740 - 8,740 -
Other comprehensive income
items which will be
transferred to profit or loss
under the equity method (18,740) 9,171 - (9,569) 9,171 - 9,171 -
Effect of translation of foreign
currency financial statements 1,605,801 651,659 - 2,257,460 464,631 - 651,659 (187,028)
4,538,027 639,549 (18) 5,177,558 428,558 1,244 639,549 (209,747)
178
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(49) Notes to the cash flow statement
The Group has no cash flows presented on a net basis, and significant cash flow items are set out
below:
(a) Cash received relating to other operating activities
For the six months ended 30 June
2024 2023
Inflows from cash collected on behalf of other
parties 45,441,709 42,809,014
Others 2,074,746 2,505,769
47,516,455 45,314,783
(b) Cash paid relating to other operating activities
For the six months ended 30 June
2024 2023
Outflows from goods payments collected on
behalf of other parties 45,234,587 42,788,819
Others 8,630,920 9,563,206
53,865,507 52,352,025
(c) Cash received from disposals of investments
For the six months ended 30 June
2024 2023
Cash received from disposals of associates
and joint ventures 341,706 3,000
Cash received from disposals of financial
assets 9,325 167,533
351,031 170,533
(d) Cash paid to acquire investments
For the six months ended 30 June
2024 2023
Cash paid to acquire financial assets 56,655 1,447,437
Cash paid to acquire associates and joint
ventures 14,141 15,930
70,796 1,463,367
179
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(49) Notes to the cash flow statement (Continued)
(e) Net cash paid from acquire of subsidiaries
For the six months ended 30 June
2024 2023
Consideration for acquisition of subsidiaries by business
combinations 104,706 141,000
Add: Cash paid in the current period for acquisition of
subsidiaries in prior periods 40,894 800,227
Less: Consideration to be paid in subsequent periods (10,271) (9,774)
Cash and cash equivalents held by subsidiaries at the
acquisition date (19,744) (2,898)
Net cash paid for acquisition of subsidiaries by business
combinations 115,585 928,555
Consideration for acquisition of assets 559,289 -
Less: Consideration to be paid in future periods (3,846) -
Less: Cash and cash equivalents held by subsidiaries at the
acquisition date (56,644)
Net cash paid for acquisition of assets 498,799 -
Total net cash paid to acquire subsidiaries 614,384 928,555
(f) Cash received/paid relating to other investing activities
Cash received/paid relating to other investing activities by the Group represents cash inflows and
outflows from redemption/purchase of bank wealth management products and structured deposits.
(g) Cash paid relating to other financing activities
For the six months ended 30 June
2024 2023
Repayments of lease liabilities 3,704,784 3,891,543
Acquisition of minority interests 3,353,487 132,490
Repurchase of shares 1,378,503 59,936
Others 413,091 496,532
8,849,865 4,580,501
For the six months ended 30 June 2024, total cash outflows for leases paid by the Group
amounted to RMB 5,703,150,000 (for the six months ended 30 June 2023: RMB 5,645,946,000)
which is classified as cash paid relating to financing activities for repayments of lease liabilities and
operating activities for the remainder.
180
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(50) Supplementary information to the cash flow statement
(a) Reconciliation from net profit to cash flows from operating activities
For the six months ended 30 June
2024 2023
Net profit 4,760,922 3,894,240
Add: Asset impairment losses 1,624 806
Losses on/(Reversal of) credit impairment 159,557 (64,802)
Depreciation of right-of-use assets 3,331,766 3,608,140
Depreciation and amortisation expenses 5,457,884 4,889,967
(Gains)/Losses on disposals of long-term
assets (39,097) 64,740
Gains or losses arising from changes in fair
value (10,904) (21,870)
Financial expenses 1,230,918 1,225,931
Investment income (358,868) (500,597)
Recognised expenses on share-based
payments 69,940 153,461
Decrease/(increase) in deferred tax assets 210,300 (127,417)
(Decrease)/Increase in deferred tax
liabilities (72,186) 47,123
Amortisation of deferred income (20,416) (27,515)
Increase in inventories (119,277) (87,948)
Decrease in operating receivables 896,436 3,737,276
Decrease in operating payables (1,776,330) (2,966,708)
Net cash flows from operating activities 13,722,269 13,824,827
(b) Cash and cash equivalents
30 June 2024 31 December 2023
Cash on hand 15,408 14,391
Cash at bank that can be readily drawn on
demand 32,378,624 40,329,175
Other cash balances that can be readily drawn
on demand 35,562 6,126
Other balances that can be readily drawn on
demand 86,395 98,616
32,515,989 40,448,308
181
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(50) Supplementary information to the cash flow statement (Continued)
(c) Significant operating, investing and financing activities that do not involve cash receipts and
payments
For the six months ended 30 June
2024 2023
Increase in right-of-use assets in the current
period 2,814,232 3,192,368
Long-term asset purchases paid for by bank
supply chain financial products/re-factoring 57,753 409,201
2,871,985 3,601,569
182
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(50) Supplementary information to the cash flow statement (Continued)
(d) Changes in liabilities from financing activities
Debentures
payable and ultra
short-term
commercial notes
(including
debentures
Bank borrowings payable and ultra Lease liabilities Payables to banks
(including bank short-term (including lease for supply chain
borrowings to be commercial notes liabilities to be finance
settled within one to be settled within settled within one products/re-
year) one year) year) factoring Others Total
31 December 2023 32,390,603 19,410,077 13,808,460 543,389 361,946 66,514,475
Net cash inflows/(outflows)
from financing activities 3,640,401 2,057,853 (3,704,784) (411,637) 5,542 1,587,375
Interest accrued in the
current year (Note
4(41)) 675,023 311,638 262,301 10,318 675 1,259,955
Changes that do not
involve cash receipts
and payments 241,883 355,289 2,646,495 49,871 (7,769) 3,285,769
30 June 2024 36,947,910 22,134,857 13,012,472 191,941 360,394 72,647,574
183
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(51) Monetary items denominated in foreign currency
(a) As at 30 June 2024 and 31 December 2023, the Group’s companies whose recording currency is
RMB held financial assets and financial liabilities denominated in non-recording currencies held by
companies (mainly USD, HKD and EUR), excluding financial assets and financial liabilities
denominated in non-recording currencies held by subsidiaries within the Group, of which the
equivalent amounts in RMB (presentation currency of these financial statements) are listed as
below:
30 June 2024
Amount in the Exchange rate to Equivalent to
original currency RMB RMB
Cash at bank and on hand -
USD 40,503 7.1268 288,657
HKD 48,108 0.9127 43,908
EUR 1,794 7.6617 13,745
Receivables -
USD 87,311 7.1268 622,248
HKD 3,883 0.9127 3,544
EUR 2,863 7.6617 21,935
Payables -
USD 52,207 7.1268 372,069
HKD 12,431 0.9127 11,346
EUR 12,352 7.6617 94,637
SGD 923 5.2790 4,873
31 December 2023
Amount in the Exchange rate to Equivalent to
original currency RMB RMB
Cash at bank and on hand -
USD 35,917 7.0827 254,389
HKD 49,927 0.9062 45,245
EUR 786 7.8592 6,177
Receivables -
USD 91,642 7.0827 649,073
HKD 30,787 0.9062 27,900
EUR 2,180 7.8592 17,133
Payables -
USD 55,209 7.0827 391,029
HKD 62,571 0.9062 56,703
EUR 7,216 7.8592 56,712
SGD 1,075 5.3772 5,780
184
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Continued)
(51) Monetary items denominated in foreign currency (Continued)
(b) As at 30 June 2024 and 31 December 2023, the Group’s overseas subsidiaries, except for those
operating in Hong Kong, held no significant financial assets or financial liabilities denominated in
non-recording currencies. Those companies operating in Hong Kong with HKD as recording
currency held financial assets and liabilities denominated in non-recording currencies (mainly USD,
RMB and EUR), excluding financial assets and liabilities denominated in non-recording currencies
held by subsidiaries within the Group, of which the equivalent amounts in HKD (recording currency
of companies operating in Hong Kong) and RMB (presentation currency of these financial
statements) are listed as below:
30 June 2024
Amount in the Exchange rate Equivalent to Equivalent to
original currency to HKD HKD RMB
Cash at bank and on
hand -
RMB 78,149 1.0957 85,628 78,149
USD 44,661 7.8085 348,735 318,290
EUR 6,566 8.3945 55,118 50,306
Accounts receivable -
RMB 7,559 1.0957 8,282 7,559
USD 15,376 7.8085 120,063 109,582
Accounts payable -
RMB 9,818 1.0957 10,758 9,819
USD 1,902 7.8085 14,852 13,555
EUR 2,918 8.3945 24,495 22,357
31 December 2023
Amount in the Exchange rate Equivalent to Equivalent to
original currency to HKD HKD RMB
Cash at bank and on
hand -
RMB 98,862 1.1035 109,093 98,862
USD 54,329 7.8157 424,617 384,796
EUR 4,420 8.6725 38,332 34,738
Accounts receivable -
RMB 5,846 1.1035 6,451 5,846
USD 13,417 7.8157 104,863 95,029
Accounts payable -
RMB 8,046 1.1035 8,879 8,046
USD 13,834 7.8157 108,122 97,982
EUR 655 8.6725 5,680 5,148
185
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope
(1) Business combinations involving entities not under common control
Main business combinations involving entities not under common control for the six months ended 30 June 2024:
% of Basis for
Acquisition interest Method of determining the
Acquiree Timing of acquisition cost acquired acquisition Acquisition date acquisition date
Completion of equity
BBA 29 February 2024 102,893 65.00% By cash 29 February 2024 delivery
The revenue, net profit, net cash flows from operating activities and total net cash flows of the above company from the acquisition date to the end of the
period are RMB 121,257,000, RMB 8,352,000, RMB -12,113,000 and RMB -12,113,000, respectively.
(2) Disposals of subsidiaries
(a) Information relating to the disposals of major subsidiaries during the period is as follows:
Difference between
proceeds from
disposal after
deducting disposal
Basis for costs and
judgement corresponding
Proceeds of timing of shares of net assets
from Disposal Method of Timing of losing losing in the consolidated
Subsidiaries disposal proportion disposal control control financial statements
Sales of 22 February Transfer of
Hangzhou Zhentai Asset Management Co., Ltd. 273,345 100% equity 2024 control right 91,950
186
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities
(1) Interests in subsidiaries
(a) First-tier and second-tier subsidiaries of the Group are as follows:
Shareholding (%)
Place of Principal place registered
incorporation of business capital Nature of business Direct Indirect Method of acquisition
Taisen Holdings Shenzhen Shenzhen 5,000,000 Investment holding 100.00% - Reverse acquisitions
150,000 International freight forwarding,
domestic and international Business combinations involving
S.F. Express Co., Ltd. Shenzhen Shenzhen express service, etc. - 100.00% entities under common control
60,000 Technical maintenance and
SF Technology Co., Ltd. Shenzhen Shenzhen development service - 100.00% By new establishment
160,000 Cargo transportation and freight Business combinations involving
Shenzhen Shunlu Logistics Co., Ltd. Shenzhen Shenzhen forwarding - 100.00% entities under common control
Anhui S.F. Telecommunication Service 50,000 Value-added telecommunication
Co., Ltd. Anhui Province Anhui Province service - 100.00% By new establishment
Shenzhen Yuhui Management Consulting 250,000 Business combinations involving
Co., Ltd. Shenzhen Shenzhen Consulting service - 100.00% entities under common control
1,500,000 Supply chain management and
Shenzhen S.F. Supply Chain Co., Ltd. Shenzhen Shenzhen other services - 100.00% By new establishment
1,510,000 Transport service of aviation Business combinations involving
S.F Airline Co., Ltd Shenzhen Shenzhen cargo - 100.00% entities under common control
Shenzhen Fengtai E-Commerce Industrial 9,530,000 E-commerce industrial park Business combinations involving
Park Asset Management Ltd. Shenzhen Shenzhen management - 100.00% entities under common control
Shenzhen Fengtai Industrial Park 58,000
Management Service Co., Ltd. Shenzhen Shenzhen Management consulting - 100.00% By new establishment
Shenzhen S. F. Airport Investment Co., 100,000
Ltd. Shenzhen Shenzhen Industrial investment - 100.00% By new establishment
HKD 8,346,998 Business combinations involving
SF Holding(HK) Limited Hong Kong Hong Kong Investment holding - 100.00% entities under common control
2,500,000 Financing, wealth management
S.F. Holding (Group) Finance Co., Ltd Shenzhen Shenzhen and consulting services - 100.00% By new establishment
187
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Continued)
(1) Interests in subsidiaries (Continued)
(a) First-tier and second-tier subsidiaries of the Group are as follows (Continued):
Shareholding (%)
Principal
Place of place of Registered Nature of
incorporation business capital business Direct Indirect Method of acquisition
Shenzhen SF Chuangxing Investment 330,000 Industrial
Co., Ltd. Shenzhen Shenzhen investment - 100.00% By new establishment
Shenzhen Fengnong Technology Co., 145,000
Ltd. Shenzhen Shenzhen Retail - 100.00% By new establishment
50,000 Supply chain
Shenzhen Fenglang Supply Chain Co., management and
Ltd. Shenzhen Shenzhen other services - 70.00% By new establishment
Shunyuan Leasing (Tianjin) co. LTD Tianjin Tianjin 1,500,000 Leasing business - 100.00% By new establishment
242,000 Goods delivery
and other
SF Multimodal Co., Ltd. Shenzhen Shenzhen services - 100.00% By new establishment
150,000 Technology
S.F. Duolian Technology Co., Ltd. Dongguan Dongguan development - 100.00% By new establishment
Dongguan SF Taisen Logistics 30,010 Property
Management Co., Ltd. Dongguan Dongguan management - 100.00% By new establishment
450,000 Information
technology
SF Innovative Technology Co., Ltd. Dongguan Dongguan service - 100.00% By new establishment
Shenzhen Shunheng Rongfeng Supply 260,000 Consulting Business combinations involving
Chain Technology Co., Ltd. Shenzhen Shenzhen service - 100.00% entities under common control
100,000 Freight
Shenzhen Hengyi Supply Chains forwarding Business combinations involving
Service Co., Ltd. Shenzhen Shenzhen service - 100.00% entities under common control
92,500 Business combinations involving
Shenzhen Lefeng Commercial Co., Ltd. Shenzhen Shenzhen Factoring - 100.00% entities under common control
188
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Continued)
(1) Interests in subsidiaries (Continued)
(a) First-tier and second-tier subsidiaries of the Group are as follows (Continued):
Shareholding (%)
Principal
Place of place of Registered
incorporation business capital Nature of business Direct Indirect Method of acquisition
933,458 Supply chain
Hangzhou SF Intra-city Industrial Co., management and other
Ltd. Hangzhou Hangzhou services - 56.87% By new establishment
SF Sharing Precision Information 7,000 Information technology
Technology (Shenzhen) Co., Ltd. Shenzhen Shenzhen service - 100.00% By new establishment
50,000 Supply chain
Hangzhou Shuangjie Supply Chain management and other
Co., Ltd. Hangzhou Hangzhou services - 100.00% By new establishment
1,695,000 Business and supply
Shenzhen S.F. Express Co., Ltd. Shenzhen Shenzhen chain management - 100.00% By new establishment
90,000 Consulting services
regarding business
Huanggang Xiufeng Education information and business
Investment Co., Ltd. Huanggang Huanggang management - 100.00% By new establishment
Junhe Information Technology 10,000 Information technology
(Shenzhen) Co., Ltd. Shenzhen Shenzhen and development services - 100.00% By new establishment
S.F. Digital Technology (Shenzhen) 250,000 Technology and
Services Co., Ltd. Shenzhen Shenzhen consulting services - 100.00% By new establishment
Shenzhen S.F. International Industry 15,000 Information technology
Co., Ltd. Shenzhen Shenzhen and consulting services - 100.00% By new establishment
Shenzhen S.F. Investment Co., Ltd. Shenzhen Shenzhen 1,100,000 Investment holding - 100.00% By new establishment
97,660 Cargo transportation and
SF Cold Chain Logistics Co., Ltd. Shenzhen Shenzhen freight forwarding - 100.00% By new establishment
189
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Continued)
(1) Interests in subsidiaries (Continued)
(b) Subsidiaries in which the Group has significant minority interests:
The Group determines the subsidiaries with significant minority interests by considering factors
such as whether the subsidiaries are listed companies, the proportion of minority interests to the
Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to
minority shareholders to the Group’s consolidated net profit, which are set out below:
Profit or loss
attributable to Dividends paid
minority to minority
shareholder for shareholders for
Shareholding of the six months the six months Minority
minority ended 30 June ended 30 June interests as at
shareholders 2024 2024 30 June 2024
Kerry Logistics and its 48.48%
77,812 (179,649) 9,422,286
subsidiaries
Major financial information of material non-wholly-owned subsidiaries of the Group is listed below:
30 June 2024 31 December 2023
Current assets 19,058,466 18,187,621
Non-current assets 24,116,762 25,760,002
Total assets 43,175,228 43,947,623
Current liabilities 13,009,124 13,130,867
Non-current liabilities 9,523,595 9,017,591
Total liabilities 22,532,719 22,148,458
For the six months For the six months
ended 30 June 2024 ended 30 June 2023
Revenue 23,988,254 22,462,886
Net profit (i) 103,294 102,409
Total comprehensive income (i) (318,288) 153,958
Cash flows from operating activities 1,157,855 1,449,579
The above financial figures take into account the fair value of identifiable assets and liabilities at the
point of acquisition of Kerry Logistics’ equity and the adjustment effect of uniform accounting
policies.
190
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Continued)
(1) Interests in subsidiaries (Continued)
(b) Subsidiaries in which the Group has significant minority interests (Continued)
(i) For Kerry Logistics and its subsidiaries, the net profit attributable to shareholders of the parent
company for the six months ended 30 June 2024 was RMB 25,482,000 (for the six months ended
30 June 2023: RMB 83,039,000), and the total comprehensive income attributable to shareholders
of the parent company for the six months ended 30 June 2024 was RMB -29,708,000 (for the six
months ended 30 June 2023: RMB 348,315,000).
(ii) For the six months ended 30 June 2024 and the six months ended 30 June 2023, minority interests
of the Group’s subsidiaries except Kerry Logistics, had no significant influence on the Group.
(2) Interests in joint ventures and associates
The Group determines significant joint ventures and associates by considering factors such as
whether the joint ventures and associates are listed companies, the proportion of their carrying
amounts to the Group’s consolidated total assets, and the proportion of income from long-term
equity investments accounted for under the equity method to the Group’s consolidated net profit.
For the six months ended 30 June 2024 and the six months ended 30 June 2023, the Group’s joint
ventures and associates had no significant influence on the Group. As at 30 June 2024 and 31
December 2023, the Group’s main long-term equity investments are detailed in Note 4(8).
7 Segment information
The reportable segments of the Group are the business units that provide different logistics and
freight forwarding services. Different businesses require different technologies and marketing
strategies, and the Group, therefore, independently manages their operations and evaluates
operating results, in order to make decisions about resources allocations and performance
evaluations.
For the six months ended 30 June 2024, the Group mainly had three reportable segments,
including:
Express and freight segment, which provides time-define express and economy express,
medical product and cold chain delivery service and freight service;
Intra-city instant delivery segment, which provides intra-city instant delivery service and the
“last kilometre” delivery service to vendors and consumers;
Supply chain and international business segment, which provides international express
service, international freight transport and forwarding service, as well as supply chain service.
Inter-segment transfer prices are determined by reference to pricing policy of related party
transactions.
191
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Continued)
(a) Segment information for the six months ended 30 June 2024 and as at 30 June 2024 is as follows:
Supply chain and
Express and freight international Intra-city instant Undistributed Inter-segment
segment business segment delivery segment units elimination Total
Revenue from external
customers 96,820,175 32,914,104 4,022,952 652,489 - 134,409,720
Inter-segment revenue 6,340,531 447,518 2,855,518 2,545,639 (12,189,206) -
Cost of sales 87,580,849 30,588,004 6,405,187 2,323,885 (11,113,153) 115,784,772
Total profit/(loss) 5,842,143 (236,145) 80,572 606,498 26,989 6,320,057
Income tax expenses 1,046,410 338,068 18,398 156,427 (168) 1,559,135
Net profit/(loss) 4,795,733 (574,213) 62,174 450,071 27,157 4,760,922
Total assets 106,075,703 64,294,283 4,117,315 162,056,001 (116,677,371) 219,865,931
Total liabilities 71,306,112 56,051,461 1,355,096 91,319,878 (99,077,966) 120,954,581
Depreciation of right-of-
use assets 2,885,910 836,623 8,252 44,247 (443,266) 3,331,766
Depreciation and
amortisation expenses 3,279,143 808,175 24,862 1,347,872 (2,168) 5,457,884
Credit impairment losses 41,533 122,046 3,835 19,289 (27,146) 159,557
For the six months ended 30 June 2024, no revenue from a single customer exceeded 10% or more of the total revenue.
192
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Continued)
(b) Segment information for the six months ended 30 June 2023 and as at 30 June 2023 is as follows:
Supply chain and
Express and freight international Intra-city instant Undistributed Inter-segment
segment business segment delivery segment units elimination Total
Revenue from external
customers 90,058,986 30,283,063 3,406,837 616,712 - 124,365,598
Inter-segment revenue 5,283,237 314,393 2,355,281 7,209,639 (15,162,550) -
Cost of revenue 81,392,677 28,052,376 5,377,625 6,659,244 (13,926,642) 107,555,280
Total profit/(loss) 5,412,546 (221,230) 31,344 146,029 51,661 5,420,350
Income tax expenses 1,292,805 86,845 1,030 130,843 14,587 1,526,110
Net profit/(loss) 4,119,741 (308,075) 30,314 15,186 37,074 3,894,240
Total assets 100,203,287 64,443,045 3,888,569 152,920,781 (103,415,251) 218,040,431
Total liabilities 68,606,705 51,662,519 986,574 84,017,974 (88,439,410) 116,834,362
Depreciation of right-of-
use assets 2,993,058 854,228 13,137 40,982 (293,265) 3,608,140
Depreciation and
amortisation expenses 3,587,688 819,313 30,545 465,391 (12,970) 4,889,967
Credit impairment losses (82,372) 34,806 3,921 40,848 (62,005) (64,802)
For the six months ended 30 June 2023, no revenue from a single customer exceeded 10% or more of the total revenue.
193
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions
(1) General information of the controlling shareholder and subsidiaries
The general information and other related information of subsidiaries are set out in Note 6(1).
(a) General information of the controlling shareholder
Place of incorporation Nature of business
Mingde Holdings Shenzhen Investment
The Company’s ultimate holding company is Mingde Holdings, and the ultimate controlling person
is Wang Wei.
(b) The balances and changes of registered capital of the controlling shareholder
31 December Increase in the Decrease in the 30 June
2023 current period current period 2024
Mingde Holdings 113,406 - - 113,406
(c) The percentages of shareholding and voting rights in the Company held by the controlling
shareholder
30 June 2024 31 December 2023
Shareholding Voting rights Shareholding Voting rights
(%) (%) (%) (%)
Mingde Holdings 55.27% 55.27% 54.38% 54.38%
194
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(2) Nature of related parties that do not control/are not controlled by the Company
Major related parties are listed as follows:
Relationship with the Company
Controlled by the ultimate controlling
Guangdong Fengxing Zhitu Technology Co., Ltd. person of the Company
Hangzhou Fengtai E-Commerce Industrial Park Controlled by the ultimate controlling
Management Ltd. person of the Company
Controlled by the ultimate controlling
Shenzhen Fengxiang Information Technology Co., Ltd. person of the Company
Controlled by the ultimate controlling
Hive Box Technology and its subsidiaries person of the Company
Shenzhen Fengyi Technology Limited Controlling shareholder's associate
State Grid E-Commerce Yunfeng Logistics Technology
(Tianjin) Co., Ltd. The Group’s associate
SCS Logistics Co., Ltd. The Group’s associate
Shenzhen Shunjie Fengda Express Co., Ltd. and its
subsidiaries The Group’s associate
SF Real Estate Investment Trust and its subsidiaries The Group’s associate
Shenzhen Zhongwang Finance and Tax Management
Co., Ltd. The Group’s associate
KENGIC Intelligent Technology Co., Ltd. and its
subsidiaries The Group’s associate
Galaxis Technology The Group’s associate
Shenzhen Fenglian Technology Co., Ltd. The Group’s associate
Yihai Shunfeng (Shanghai) Supply Chain Technology
Co., Ltd. The Group’s associate
Giao Hang Tiet Kiem Joint Stock Company The Group’s associate
Global Connect Holding Limited The Group’s joint venture
Ezhou China Communications SF Airport Industrial
Park Investment Development Co., Ltd. The Group’s joint venture
CR-SF International Express Co., Ltd. The Group’s joint venture
Beijing Wulian Shuntong Technology Co., Ltd. and its
subsidiaries The Group’s joint venture
ZBHA and its subsidiaries The Group’s joint venture
Hubei International Logistics Airport Co., Ltd. The Group’s joint venture
S.F. Public Welfare Foundation Initiated by the Group’s Controlling
shareholder and the Company's
subsidiaries and in which the
Company's executives serve as
members of the Board of Directors
Golden Arches (China) Limited and its subsidiaries Other companies significantly
influenced by key management of the
Company by December 2022
Note 1: Golden Arches (China) Limited and its subsidiaries are other companies significantly
influenced by key management of the Company by December 2022 and is no longer related parties
of the Group from January 2024 under the Rules Governing the Listing of Stocks on the Shenzhen
Stock Exchange.
(3) Related party transactions
195
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(a) Pricing policies
The pricing method of transactions and transaction price between the Group and related parties
are determined, following arm’s length principle, by making reference to the market price or through
negotiation between both parties.
(b) Rendering of services/Sales of goods
For the six months ended 30 June
Nature of the
transaction 2024 2023
Entities controlled by the Company’s
ultimate controlling person Rendering of services 756,113 63,315
Associates of the Group Rendering of services 49,066 29,979
Joint ventures of the Group Rendering of services 14,030 5,989
Associates of controlling shareholder Rendering of services 7,157 6,643
Entities significantly influenced by the
key management of the Company Rendering of services 646 952,548
Controlling shareholder Rendering of services 255 203
827,267 1,058,677
For the six months ended 30 June
Nature of the
transaction 2024 2023
Associates of the Group Sales of goods 1,640 2,548
Entities controlled by the Company’s
ultimate controlling person Sales of goods 1 353
Associates of controlling shareholder Sales of goods - 3
1,641 2,904
196
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(3) Related party transactions (Continued)
(c) Receipt of services/Purchase of goods
For the six months ended 30 June
Nature of the
transaction 2024 2023
Joint ventures of the Group Receipt of services 535,304 621,191
Entities controlled by the Company’s
257,627 314,156
ultimate controlling person Receipt of services
Associates of the Group Receipt of services 273,310 582,813
Associates of controlling shareholder Receipt of services 187 25
Controlling shareholder Receipt of services 7 -
Entities significantly influenced by the
- 41
key management of the Company Receipt of services
1,066,435 1,518,226
For the six months ended 30 June
Nature of the
transaction 2024 2023
Entities controlled by the Company’s
ultimate controlling person Purchase of goods 127,564 141,500
Associates of the Group Purchase of goods 70,499 127,211
Joint ventures of the Group Purchase of goods 1,946 327
Associates of controlling shareholder Purchase of goods 3 816
200,012 269,854
(d) Leases
(i) Right-of-use assets increased in the current period with the Group as the lessee
For the six months ended 30 June
Type of the leased
asset 2024 2023
Entities controlled by the Company’s
ultimate controlling person Buildings 2,058 27,183
Associates of the Group Buildings 265 12,093
2,323 39,276
(ii) Depreciation and interest expenses borne in the current period by the Group as the lessee
For the six months ended 30 June
Type of the leased
asset 2024 2023
Associates of the Group Buildings 116,707 113,054
Entities controlled by the Company’s
ultimate controlling person Buildings 6,026 5,938
122,733 118,992
197
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(3) Related party transactions (Continued)
(d) Leases (Continued)
(iii) Lease income recognised in the current period with the Group as the lessor
For the six months ended 30 June
Type of the leased
asset 2024 2023
Entities controlled by the Company’s
ultimate controlling person Buildings 1,545 809
Associates of controlling shareholder Buildings 1,391 1,565
Associates of the Group Buildings 911 1,116
Joint ventures of the Group Buildings 408 304
Controlling shareholder Buildings 341 341
4,596 4,135
(e) The Group as the guarantor
Guarantee
been
Guarantee Amount Starting date Expiration date fulfilled
Joint ventures of the 29 September
Group 782,000 2021 29 April 2055 No
(f) Purchase of equity
For the six months ended 30 June
2024 2023
Joint ventures of the Group 559,289 -
(g) Sell of equity
For the six months ended 30 June
2024 2023
Entities controlled by the Company's ultimate
controller - 85,188
(h) Remuneration of key management
For the six months ended 30 June
2024 2023
Remuneration of key management 21,359 26,241
198
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(4) Receivables from and payables to related parties (Continued)
(4) Receivables from and payables to related parties
(a) Accounts receivable
30 June 2024 31 December 2023
Entities controlled by the Company’s ultimate
controlling person 467,204 30,739
Associates of the Group 77,324 83,745
Joint ventures of the Group 5,897 6,404
Associates of controlling shareholder 3,206 3,266
Entities significantly influenced by the key
management of the Company 142 358
Controlling shareholder 50 57
553,823 124,569
(b) Advances to suppliers
30 June 2024 31 December 2023
Entities controlled by the Company’s
ultimate controlling person 7,291 2,309
Associates of the Group 7,446 5,996
Joint ventures of the Group 140 3,409
Associates of controlling shareholder 1 1
14,878 11,715
(c) Loans and advances
30 June 2024 31 December 2023
Associates of the Group - 49
Joint ventures of the Group - 329,933
- 329,982
(d) Other receivables
30 June 2024 31 December 2023
Entities controlled by the Company’s ultimate
controlling person 190,677 561,712
Associates of the Group 66,629 69,647
Joint ventures of the Group 1,115 1,468
Associates of controlling shareholder 378 379
Controlling shareholder 136 167
258,935 633,373
199
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(4) Receivables from and payables to related parties (Continued)
(e) Other non-current assets - Advances for engineering equipment
30 June 2024 31 December 2023
Associates of the Group 71,749 683
Entities controlled by the Company’s ultimate
controlling person - 250
71,749 933
(f) Long-term receivables (including long-term receivables to be recovered within one year)
30 June 2024 31 December 2023
Associates of the Group 1,259 57,993
Associates of controlling shareholder 72 72
Entities controlled by the Company’s ultimate
controlling person 17 17
1,348 58,082
(g) Deposits from customers
30 June 2024 31 December 2023
Associates of the Group 71 1,509
(h) Accounts payable
30 June 2024 31 December 2023
Entities controlled by the Company’s ultimate
controlling person 149,184 135,957
Joint ventures of the Group 128,144 120,900
Associates of the Group 119,790 164,244
Associates of controlling shareholder 93 93
397,211 421,194
(i) Contract liabilities
30 June 2024 31 December 2023
Associates of the Group 1,340 3,621
Joint ventures of the Group 43,255 43,146
Associates of controlling shareholder 1,384 1,210
Entities controlled by the Company’s ultimate
controlling person 1,156 170
Entities significantly influenced by the key
management of the Company - 8
47,135 48,155
200
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Continued)
(4) Receivables from and payables to related parties (Continued)
(j) Other payables
30 June 2024 31 December 2023
Associates of the Group 87,306 125,672
Associates of controlling shareholder 3,589 3,608
Entities controlled by the Company’s ultimate
controlling person 2,844 2,788
Joint ventures of the Group 2,041 2,393
Controlling shareholder 128 128
95,908 134,589
(k) Lease liabilities (including lease liabilities to be settled within one year)
30 June 2024 31 December 2023
Associates of the Group 487,627 598,296
Entities controlled by the Company’s ultimate
90,324 92,060
controlling person
Joint ventures of the Group - 98,987
577,951 789,343
(5) Commitments in relation to related parties
(a) Guarantees provided
30 June 2024 31 December 2023
Joint ventures of the Group 2,384,180 2,384,180
The above-mentioned guaranteed related party commitments are committed but without
guarantees provided to related parties.
9 Share-based payments
(1) Overview of share-based payments
Expenses recognised for the period arising from share-based payments were as follows:
For the six months ended 30 June
2024 2023
Equity-settled share-based payments 69,940 153,461
Cash-settled share-based payments (10,903) 190,592
59,037 344,053
201
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payments (Continued)
(2) Information on equity-settled share-based payments
(a) Information on share-based payments of the Company
In May 2022, the Company held the 25th session of the 5th Board of Directors in 2022, at which
proposals such as the Stock Option Incentive Plan (“2022 Stock Option Incentive Plan”) were
approved. The Company granted 47,892,100 share options to 1,449 eligible incentive recipients on
30 May 2022, and the exercise price of the share option is RMB 42.61. If the Company meets the
predetermined performance conditions and the incentive recipients meet the performance
evaluation indicators, the four quarters of the total share options received by the grantee will come
into effect from 30 May 2022 after 12 months, 24 months, 36 months and 48 months respectively.
At each balance sheet date during the vesting period of the incentive plan, the number of share
options expected to be exercised will be revised based on subsequent information such as
changes in the number of employees who can exercise their share options and the completion of
vesting conditions, and the services obtained in the current period will be included in relevant costs
and capital reserve based on the fair value of share options at the grant date.
As at 30 June 2024, the equity-settled share-based payments recognised by the Company
accumulated to RMB 512,685,000 (31 December 2023: RMB 460,789,000). For the six months
ended 30 June 2024, the amount of expenses recognised by the Company for the equity-settled
share-based payments was RMB 51,896,000 (for the six months ended 30 June 2023: RMB
137,562,000).
(b) Information on share-based payments of the Company’s subsidiaries
The Group granted some equities or share options of several subsidiaries, to the senior
management and other employees of the aforesaid companies or other subsidiaries within the
Group respectively.
As at 30 June 2024, the equity-settled share-based payments of these companies recognised by
the Group accumulated to RMB 619,113,000 (31 December 2023: RMB 601,069,000), including
accumulated amounts attributable to shareholders of the parent company of RMB 497,635,000 (31
December 2023: RMB 487,225,000). For the six months ended 30 June 2024, the expenses
recognised for the equity-settled share-based payments amounted to RMB 18,044,000 (for the six
months ended 30 June 2023: RMB 15,899,000). The fair value at the grant date was recognised
based on the discounted cash flow model and the binomial tree model.
202
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payments (Continued)
(3) Information on cash-settled share-based payments
Certain subsidiaries of the Group use their shares or the Company's shares as the calculation
basis to grant cash-settled share-based payments to eligible employees of those subsidiaries.
As at 30 June 2024, there was no liabilities arising from the cash-settled share-based payments
(31 December 2023: RMB 268,453,000). For the six months ended 30 June 2024, the expenses
reversed by the Group for cash-settled share-based payments amounted to RMB 10,903,000 (for
the six months ended 30 June 2023: RMB 190,592,000). The fair value at the balance sheet date
was recognised based on the discounted cash flow model and the binomial tree model.
10 Commitments
(1) Capital commitments
(a) As at the balance sheet date, capital expenditures contracted for but not yet necessary to be
recognised by the Group in the balance sheet are as follows:
30 June 2024 31 December 2023
Buildings, machinery and equipment 2,378,529 1,858,672
Investment contracts that have been signed
but not fulfilled or not absolutely fulfilled 129,783 131,895
Others 4,663 944
2,512,975 1,991,511
11 Contingency
As stated in Note 8(3)(e), subsidiaries of the Group provide loan guarantees to related parties. On
30 June 2024, the total guarantee amount was RMB 782,000,000 (31 December 2023: RMB
782,000,000).
203
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
12 Events after the balance sheet date
(1) Share repurchase after the balance sheet date
Between July 1, 2024 and July 31, 2024, the Group repurchased approximately 4,736,000 shares
of the Group's stock through a special securities account for share repurchase by means of
centralized bidding, with a total repurchase amount of approximately RMB 167,734,000 (excluding
transaction costs).The aforementioned repurchase complies with the requirements of relevant laws
and regulations and aligns with the established repurchase plan.
(2) Issuance of debentures after the balance sheet date
On 18 July 2024, Taisen Holdings, a wholly-owned subsidiary of S.F. Holding, completed the
issuance of the 2024 public offering of corporate debentures (2nd instalment) for professional
investors. The scale of the issuance is RMB 500 million, with a coupon rate of 2.30% and a
maturity of 5 years.
On 22 July 2024, Taisen Holdings completed the issuance of 2024 medium-term notes (2nd
instalment ). The scale of the issuance is RMB 500 million, with a coupon rate of 2.15% and a
maturity of 3 years.
13 Operating lease payments receivable after the balance sheet date
As the lessor, the Group’s undiscounted lease payments receivable after the balance sheet date
are as follows:
30 June 2024 31 December 2023
Within 1 year (inclusive) 411,962 371,269
1 to 2 years (inclusive) 308,779 240,171
2 to 3 years (inclusive) 194,476 146,234
3 to 4 years (inclusive) 103,679 90,435
4 to 5 years (inclusive) 64,969 56,615
Over 5 years 177,293 206,636
1,261,158 1,111,360
204
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
14 Business combinations
Refer to Note 5(1).
15 Financial instruments and risks
The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign
exchange risk, interest rate risk and other price risk), credit risk and liquidity risk. The above
financial risks and the Group's risk management policies to mitigate the risks are as follows:
The Board of Directors is responsible for planning and establishing the Group's risk management
framework, formulating the Group's risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Group has established risk
management policies to identify and analyse the risks faced by the Group. These risk management
policies specify the risks such as market risk, credit risk and liquidity risk management. The Group
regularly evaluates the market environment and changes in the Group's operating activities to
determine whether to update the risk management policies and systems or not. The Group's risk
management is carried out by the Risk Management Committee under policies approved by the
Board of Directors. The Risk Management Committee encourages the departments of the Group to
work closely together to identify, evaluate and avoid relevant risks. The internal audit department of
the Group conducts periodical audit to the controls and procedures for risk management and
reports the audit results to the Audit Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in the Chinese mainland and a majority of
the transactions are denominated in RMB. Some operational activities are carried out in
regions/countries including Hong Kong, USA, Europe and relevant transactions are settled in HKD,
USD and EUR. Therefore, the Group is exposed to foreign exchange risk arising from the
recognised financial assets and liabilities denominated in non-recording currencies, and future
transactions denominated in foreign currencies. Management is responsible for monitoring the
amount of financial assets and liabilities, and transactions denominated in non-recording currencies,
to reduce foreign exchange risk to the greatest extent.
(i) Foreign exchange risk of companies with RMB as recording currency
As at 30 June 2024 and 31 December 2023, the foreign exchange exposure of financial assets and
denominated in non-recording currencies held by the Group’s companies whose recording
currency is RMB was mainly derived from the USD, HKD and EUR, as stated in Note 4(51)(a).
As at 30 June 2024, for the above various financial assets and liabilities denominated in USD, if the
RMB had strengthened/weakened by 5% against the USD while all other variables had been held
constant, the Group’s profit before tax would have been approximately RMB 26,942,000 (31
December 2023: RMB 25,622,000) lower/higher respectively.
The changes in exchange rate of other foreign currencies against RMB have no significant
influence on the Group’s operating activities.
205
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
15 Financial instruments and risks (Continued)
(1) Market risk (Continued)
(a) Foreign exchange risk (Continued)
(ii) Foreign exchange risk of companies with HKD as recording currency
As at 30 June 2024 and 31 December 2023, the foreign exchange exposure of financial assets and
liabilities denominated in non-recording currencies held by companies located in Hong Kong with
HKD being their recording currency was mainly derived from the USD. Because the HKD and the
USD are linked exchange rates, the foreign exchange risks faced by the above-mentioned
companies using HKD as their recording currency are not significant.
(iii) As at 30 June 2024 and 31 December 2023, the Group’s overseas subsidiaries, except for those
operating in Hong Kong, held no significant financial assets or financial liabilities denominated in
non-recording currencies.
(iv) In view of the different recording currencies of subsidiaries within the Group, there is still foreign
exchange risk arising even if transactions and balances within the Group are offset. As at 30 June
2024 and 31 December 2023, such foreign exchange risks were not material.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing debts including long-term bank
borrowings and debentures payable. Financial liabilities subject to floating rates expose the Group
to cash flow interest rate risk. Financial liabilities subject to fixed rates expose the Group to fair
value interest rate risk. The Group determines the relative proportions of its fixed rate to floating
rate contracts depending on the prevailing market conditions. As at 30 June 2024, the Group’s
long-term interest bearing debts were mainly related to floating rate long-term borrowings, and
fixed rate debentures payable. Among them, floating rate long-term borrowings amounted to RMB
10,661,466,000 (31 December 2023: RMB 11,355,241,000); the total amount of fixed rate
debentures payable denominated in RMB was RMB 1,500,000,000 (31 December 2023: RMB
500,000,000), and the total amount of fixed rate debentures payable denominated in USD was
USD 2,528,655,000, equivalent to RMB 18,380,414,000 (31 December 2023: USD 2,600,000,000,
equivalent to RMB 18,415,020,000).
The Group continuously monitors the interest rate position of the Group. Increases in interest rates
will increase the cost of new interest bearing borrowing and the interest costs with respect to the
Group’s outstanding floating rate borrowings, and therefore could have a material adverse effect on
the Group’s financial performance. Management makes adjustments timely with reference to the
latest market conditions and may enter into interest rate swap agreements to mitigate its exposure
to interest rate risk.
As at 30 June 2024, if interest rates on borrowings had risen/fallen by 50 basis points while all
other variables had been held constant, the Group’s profit before tax would have been
approximately RMB 53,307,000 (31 December 2023: RMB 56,776,000) lower/higher respectively.
206
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
15 Financial instruments and risks (Continued)
(1) Market risk (Continued)
(c) Other price risk
The Group's other price risk arises mainly from movements in price of various investments in equity
instruments measured at fair value that will not be sold within 1 year.
As at 30 June 2024, if the prices of investments in equity instruments had risen/fallen by 10% while
all other variables had been held constant, the Group’s profit before tax and other comprehensive
income before tax would have been approximately RMB 50,831,000 (31 December 2023:
approximately RMB 59,000,000) and RMB 834,429,000 (31 December 2023: approximately RMB
948,954,000) higher/lower respectively.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable, accounts
receivable, financing receivables, loans and advances, other receivables, contract assets, non-
current assets to be recovered within one year, long-term receivables, investments in debt
instruments measured at fair value through profit or loss that are not included in the assessment of
impairment. At the balance sheet date, the Group's maximum exposure to credit risk represents the
carrying amount of the Group's financial assets, except that the maximum exposure to credit risk of
long-term receivables represents the aggregate of its undiscounted contractual cash flows.
The Group expects that there is no significant credit risk associated with cash at bank and on hand
since they are mainly deposits at state-owned banks and other medium or large size listed banks
with good reputation and a higher credit rating. The Group does not expect that there will be any
significant losses from non-performance by these counterparties.
The Group’s notes receivable, accounts receivable, financing receivables, other receivables,
contract assets, non-current assets to be recovered within one year and long-term receivables
include receivables from related parties and receivables from non-related parties. In respect of
receivables from related parties, the Group considers that they have low credit risk; in respect of
receivables from non-related parties, the Group will develop relevant policies to control the
exposure to credit risk. The Group evaluates customers’ credit quality based on their financial
position, possibility of obtaining guarantees from third parties, credit history and such other factors
as current market conditions, and determines the credit term based on the evaluation results. The
credit term of accounts receivable ranges from 30 days to 90 days. The Group monitors customers’
credit history on a regular basis. In respect of customers with a poor credit history, the Group will
use payment reminders, or shorten or cancel credit terms, to ensure the overall credit risk of the
Group is limited to a controllable extent.
207
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
15 Financial instruments and risks (Continued)
(2) Credit risk (Continued)
The Group’s notes receivable, accounts receivable, financing receivables and contract assets
mainly arise from rendering of logistics and freight forwarding services and other related services or
sales of goods, while other receivables, non-current assets to be recovered within one year and
long-term receivables represent advances, goods payments collected on behalf of other parties,
deposits and guarantees, loans to employees and finance lease receivables arising from rendering
of logistics and freight forwarding services. Management maintains ongoing evaluation on debtors’
financial position, but generally does not require debtors’ mortgage for outstanding debts. The
Group monitors and reviews expected credit losses on outstanding amounts on a regular basis,
and takes into account important macroeconomic assumptions and parameters in the calculation of
expected credit losses, including the risk of economic downturn, external market conditions,
changes in customer conditions, gross domestic product and the consumer price index.
Management makes the provision for bad debts based on the evaluation results thereof. Where it is
impossible for the Group to reasonably estimate the recoverable amount, the relevant outstanding
amount shall be written off accordingly. Indicators for impossibility to reasonably estimate the
recoverable amount include debtors’ failure to make contract payments as planned or make
overdue contract payments, significant financial difficulties, bankruptcy liquidation, etc.
For loans and advances, the Group developed credit policies and operational implementation rules
in accordance with the requirements of relevant state regulatory authorities, and implemented
standardised management over the entire process of credit granting. In addition, the Group further
improved the systems for credit risk monitoring and early warning and defective credit extension
management. The Group actively responded to the changes in the credit environment, regularly
analysed the situation and dynamic of credit risks and took risk control measures on a forward-
looking basis. The Group also established an optimisation management mechanism for defective
credit and accelerated the optimisation progress of defective credit to avoid non-performing loans.
In addition, financial guarantee commitments may expose the Group to credit risks from the default
of counterparties. The Group has established strict application and approval requirements on
financial guarantees and commitments, considering information including internal and external
credit ratings, continuously monitor the credit exposure and changes in credit ratings of
counterparties and other relevant information, to ensure the overall credit risk of the Group is
manageable.
As at 30 June 2024, the Group had no significant collateral or other credit enhancements held as
securities from debtors (31 December 2023: none).
208
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
15 Financial instruments and risks (Continued)
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group.
The Group monitors rolling forecasts of the Group's short-term and long-term liquidity requirements
to ensure it has sufficient cash and securities that are readily convertible to cash to meet
operational needs, while maintaining sufficient headroom on its undrawn committed borrowing
facilities from major financial institutions so that the Group does not breach borrowing limits or
covenants on any of its borrowing facilities to meet the short-term and long-term liquidity
requirements.
As at the balance sheet date, the undiscounted contractual cash flows of the Group’s financial
liabilities, analysed by their maturity dates, are as below:
30 June 2024
Within 1 Over 5
year 1 to 2 years 2 to 5 years years Total
Deposits from
customers 173 - - - 173
Accounts payable 23,801,241 - - - 23,801,241
Other payables 10,338,816 - - - 10,338,816
Short-term borrowings 23,995,898 - - - 23,995,898
Other current liabilities 2,335,703 - - - 2,335,703
Current portion of non-
current liabilities 8,820,357 - - - 8,820,357
Long-term borrowings 436,855 5,364,646 4,989,277 1,174,645 11,965,423
Debentures payable 576,458 1,065,718 10,101,199 11,748,241 23,491,616
Long-term payables - 228,220 - - 228,220
Lease liabilities - 4,059,170 2,697,029 1,727,398 8,483,597
70,305,501 10,717,754 17,787,505 14,650,284 113,461,044
209
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
15 Financial instruments and risks (Continued)
(3) Liquidity risk (Continued)
As at the balance sheet date, the undiscounted contractual cash flows of the Group’s financial
liabilities, analysed by their maturity dates, are as below (Continued):
31 December 2023
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Deposits from
customers 1,731 - - - 1,731
Accounts payable 24,846,135 - - - 24,846,135
Other payables 11,494,841 - - - 11,494,841
Short-term
borrowings 18,396,510 - - - 18,396,510
Other current
liabilities - - - - -
Current portion of
non-current
liabilities 9,660,951 - - - 9,660,951
Long-term
borrowings 206,068 3,120,571 8,171,144 1,218,218 12,716,001
Debentures payable 562,511 1,058,727 8,739,130 10,754,753 21,115,121
Long-term payables - 247,452 - - 247,452
Lease liabilities - 4,569,459 2,529,679 1,784,760 8,883,898
65,168,747 8,996,209 19,439,953 13,757,731 107,362,640
As at the balance sheet date, the undiscounted contractual cash flows of the Group’s financial
liabilities, analysed by their maturity dates, are as below:
30 June 2024 31 December 2023
Within 1 year (inclusive) 901,267 1,344,393
1 to 2 years (inclusive) 464,460 458,299
2 to 3 years (inclusive) 489,738 560,409
Over 3 years 2,717,203 2,834,483
4,572,668 5,197,584
210
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
16 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Financial assets and liabilities measured at fair value on a recurring basis
As at 30 June 2024, the financial assets measured at fair value on a recurring basis are analysed
by the abovementioned three levels as below:
Level 1 Level 2 Level 3 Total
Financial assets held for
trading:
Structured deposits - - 17,770,993 17,770,993
Fund investments and
others 79 361 275,890 276,330
Financing receivables:
Notes receivable - 125,633 - 125,633
Other non-current
financial assets:
Industry fund investments - - 378,654 378,654
Others - - 129,659 129,659
Investments in other
equity instruments:
Equity instruments
available for sale 1,120,309 - 7,223,984 8,344,293
Total financial assets 1,120,388 125,994 25,779,180 27,025,562
211
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
16 Fair value estimates (Continued)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Continued)
As at 31 December 2023, the financial assets measured at fair value on a recurring basis are
analysed by the abovementioned three levels as below:
Level 1 Level 2 Level 3 Total
Financial assets held for
trading:
Structured deposits - - 6,542,881 6,542,881
Fund investments and others 78 354 266,429 266,861
Financing receivables:
Notes receivable - 99,978 - 99,978
Other non-current financial
assets:
Industry fund investments - - 499,320 499,320
Others - - 90,676 90,676
Investments in other equity
instruments:
Equity instruments available
for sale 2,418,842 - 7,070,693 9,489,535
Total financial assets 2,418,920 100,332 14,469,999 16,989,251
As at 30 June 2024, the financial liabilities measured at fair value on a recurring basis are analysed
by the abovementioned three levels as below:
Level 1 Level 2 Level 3 Total
Derivative financial liabilities:
Others - 94,614 - 94,614
As at 31 December 2023, the financial liabilities measured at fair value on a recurring basis are
analysed by the abovementioned three levels as below:
Level 1 Level 2 Level 3 Total
Derivative financial liabilities
Others - 92,120 - 92,120
The Group takes the date on which events causing the transfers between the levels take place as
the timing specific for recognising the transfers. There were no transfers between different levels
for the period.
212
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
16 Fair value estimates (Continued)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Continued)
The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an
active market is determined by the Group using valuation techniques. The valuation models used mainly comprise discounted cash flow model and
guideline publicly-traded comparable method, etc. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange
rate, credit spread, liquidity premium, EBITDA multiplier and liquidity discount.
The changes in Level 3 assets are analysed below:
Financial assets held Financial assets held Other non-current Other non-current Other equity
for trading for trading financial assets financial assets instruments
- Fund investments - Industry fund - Equity instruments
- Structured deposits and others investments - Others available for sale
31 December 2023 6,542,881 266,429 499,320 90,676 7,070,693
Increase in the current period 41,850,000 - 5,977 - 49,785
Reclassification in the current period - 113,760 (85,348) 38,343 -
Decrease in the current period (30,809,234) (112,086) (4,951) - (2,741)
Gains recognised in profit or loss 187,346 2,943 (39,842) - -
Gains recognised in other
comprehensive income - - - - (53,867)
Effect of translation of foreign
currency financial statements - 4,844 3,498 640 160,114
30 June 2024 17,770,993 275,890 378,654 129,659 7,223,984
213
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
16 Fair value estimates (Continued)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Continued)
Financial assets held Other non-current Other non-current Other non-current Other equity
for trading financial assets financial assets financial assets instruments
- Industry fund Special Scheme equity- - Equity instruments
- Structured deposits investments class securities - Others available for sale
31 December 2022 7,351,158 770,637 116,286 125,286 7,079,184
Increase in the current period 55,820,000 9,412 - 1,384,772 36,411
Decrease in the current period (49,198,870) (4,092) - (697) -
Gains recognised in profit or
loss for the current period 284,136 (25,154) - 18,306 -
Gains recognised in other
comprehensive income - - - - (11,090)
Effect of translation of foreign
currency financial statements - 14,512 - 69,556 233,060
30 June 2023 14,256,424 765,315 116,286 1,597,223 7,337,565
214
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
16 Fair value estimates (Continued)
(2) Financial assets and liabilities not measured at fair values but for which their fair values are
disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly include cash at bank
and on hand, receivables, factoring receivables, loans and advances, non-current assets to be
recovered within one year, long-term receivables, short-term borrowings, payables, lease liabilities,
long-term borrowings, debentures payable, non-current liabilities to be settled within one year,
other current liabilities and long-term payables.
The carrying amount of financial assets and liabilities not measured at fair value is a reasonable
approximation of their fair value. The fair value of financial assets and liabilities over one year is the
present value of the contractually determined stream of future cash flows discounted at the rate of
interest applied at that time by the market to instruments of comparable credit status and providing
substantially the same cash flows on the same terms, and categorised within Level 3 of the fair
value hierarchy.
17 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders, and
to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce
debts.
The Group's total capital is calculated as “shareholders’ equity” as shown in the consolidated
balance sheet. The Group is not subject to external mandatory capital requirements.
As at 30 June 2024 and 31 December 2023, the Group’s debt-to-asset ratio was as follows:
30 June 2024 31 December 2023
Debt-to-asset ratio 55.01% 53.37%
215
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
18 Notes to the Company’s financial statements
(1) Cash at bank and on hand
30 June 2024 31 December 2023
Cash at bank 29,017 138,046
(2) Other receivables
30 June 2024 31 December 2023
Funds granted to subsidiaries 15,033,122 16,316,446
Dividends receivable from Taisen Holdings 2,600,000 5,500,000
Others 1,681 1,673
17,634,803 21,818,119
Less: Provision for bad debts (8) (8)
17,634,795 21,818,111
The Company does not have deposits at other parties under a centralised management
arrangement that are presented as other receivables.
The ageing of other receivables is analysed as follows:
30 June 2024 31 December 2023
Within 1 year (inclusive) 3,138,317 11,219,836
1 to 2 years (inclusive) 5,175,361 2,251,616
Over 2 years 9,321,125 8,346,667
17,634,803 21,818,119
(3) Long-term equity investments
30 June 2024 31 December 2023
Subsidiaries (a) 66,962,282 66,933,038
Less: Provision for impairment of long-term
equity investments - -
66,962,282 66,933,038
There is no significant restriction on sales of the long-term equity investments held by the Company.
216
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
18 Notes to the Company’s financial statements (Continued)
(3) Long-term equity investments (Continued)
(a) Subsidiaries
Movements in the
current period Provision for impairment
Explanation of Cash
disparity between dividends
percentages of declared in
Accounting 31 December Movements in the 30 June Shareholding Voting rights shareholding and 30 June 31 December the current
method 2023 current period 2024 (%) (%) voting rights 2024 2023 period
Taisen
Holdings Cost method 66,933,038 29,244 66,962,282 100% 100% Not applicable - - -
217
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
18 Notes to the Company’s financial statements (Continued)
(4) Investment income
For the six months ended 30 June
2024 2023
Investment income from financial assets held
for trading - 22,167
Others (117) -
(117) 22,167
218
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss for the six months ended 30 June 2024
For the six months ended
30 June 2024
Investment income from disposals of subsidiaries 91,950
Gains on disposals of other non-current assets 111,217
Government grants recognised in profit or loss, except those that are
closely related to normal course of business, in line with national
policies, entitled in accordance with defined criteria, and have
sustained impact on the Company's profit or loss 326,249
Gains or losses on changes in fair value of financial assets and
financial liabilities, and profit or loss arising from disposals of
financial assets and financial liabilities, except for those arising
from the effective hedging activities related to the Company’s
normal course of business 295,092
Reversal of impairment provision for receivables individually assessed
for impairment 30,084
Net amount of other non-operating income and expenses (40,021)
Sub-total 814,571
Less: Income tax effect (138,875)
Less: Non-recurring profit or loss attributable to minority shareholders (16,952)
Non-recurring profit or loss attributable to shareholders of the parent
company 658,744
Including: Non-recurring profit or loss from continuing operations 658,744
(1) Basis for preparation of statement of non-recurring profit or loss for the six months ended 30 June
2024
China Securities Regulatory Commission issued the Explanatory Announcement for Information
Disclosure of Companies Offering Securities to the Public No.1 - Non-recurring Profit or Loss
(Revised in 2023) (the “Explanatory Announcement No. 1 (2023)”) in 2023, which became effective
since the date of issuance. The Group prepared the statement of non-recurring profit or loss for the
six months ended 30 June 2024 in accordance with the Explanatory Announcement No. 1 (2023).
Pursuant to the Explanatory Announcement No. 1 (2023), non-recurring profit or loss refers to profit
or loss arising from transactions and events those are not directly related to the company’s normal
course of business, also from transactions and events those even are related to the company’s
normal course of business, but will interfere with the right judgement of users of the financial
statements on the company’s operation performance and profitability due to their special nature
and occasional occurrence.
(2) Impact of implementation of Explanatory Announcement No. 1 (2023) on non-recurring profit or
loss for the six months ended 30 June 2023
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering
Securities to the Public No.1 - Non-recurring Profit or Loss (2008) (“Explanatory Announcement No.
1 (2008)”, the Group does not have items that are presented as non-recurring profit or loss for the
six months ended 30 June 2023 but which shall be presented as recurring profit or loss in
accordance with the relevant provisions of Explanatory Announcement No. 1 (2023).
219
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
2 Statement of non-recurring profit or loss for the six months ended 30 June 2023
For the six months
ended 30 June 2023
Investment income from disposals of subsidiaries 244,982
Gains on disposals of other non-current assets 45,950
Government grants recognised in profit or loss for the current period
(government grants recognised in non-operating income, other
income and deducted against related cost and expenses) 425,229
Gains or losses arising from changes in fair value of financial assets
and liabilities held for trading and investment income arising from
disposals of financial assets and liabilities held for trading 6,787
Reversal of impairment provision for receivables individually
assessed for impairment 31,217
Net amount of other non-operating income and expenses (63,322)
Sub-total 690,843
Less: Income tax effect (93,843)
Less: Non-recurring profit or loss attributable to minority
shareholders (126,027)
Non-recurring profit or loss attributable to shareholders of the parent
company 470,973
Including: Non-recurring profit or loss from continuing operations 470,973
(1) Basis for preparation of statement of non-recurring profit or loss for the six months ended 30 June
2023
The Group prepared the statement of non-recurring profit or loss for the six months ended 30 June
2023 in accordance with the Explanatory Announcement No. 1 (2008).
220
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
3 Return on net assets and earnings per share
Weighted average Earnings per share
Return on net assets Basic earnings per Diluted earnings per
(%) share share
For the six months For the six months For the six months
ended 30 June ended 30 June ended 30 June
2024 2023 2024 2023 2024 2023
Net profit attributable to
ordinary
shareholders of the
Company 5.23% 4.72% 1.00 0.86 1.00 0.86
Net profit attributable to
ordinary
shareholders of the
Company, net of
non-recurring profit
or loss 4.51% 4.19% 0.86 0.76 0.86 0.76
Including: - - - - - -
- Continuing operations - - - - - -
Net profit attributable to
ordinary
shareholders of the
Company 5.23% 4.72% 1.00 0.86 1.00 0.86
Net profit attributable to
ordinary
shareholders of the
Company, net of
non-recurring profit
or loss 4.51% 4.19% 0.86 0.76 0.86 0.76
221
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB’000 Yuan unless otherwise stated)
[English translation for reference only]
222
