SF Express will participate in the reform of the railway company and has dozens of e-commerce special trains

　　It is understood that after China Unicom's four-month mixed-ownership reform ended, the mixed-ownership reform of China Railway Corporation (hereinafter referred to as "China Railway Corporation") has also been reflected in the public's vision.

　　SF Holdings said during an institution survey on the 28th that it will seriously study and actively participate in the reform of China Railway Corporation. The head of SF Express’s public relations confirmed the news to reporters.

　　Have dozens of "e-commerce special trains"

　　SF Holdings said that it has been very good cooperation with China Railway Corporation in the past few years, and there are dozens of e-commerce special trains transporting goods in the company. In the future, the company will continue to increase its cooperation with China Railway Corporation and make full use of the advantages of low cost and fast high-speed railways. Regarding the reform of China Railway Corporation, the company will conduct serious research and actively participate.

　　At the same time, SF Holdings stated that there are many Chinese people in Southeast Asia, and the company has laid out subsidiaries or branches in some capital cities. Considering that the express delivery industry needs to have strong customs clearance capabilities in the local area, it is not ruled out that it will find some good targets in the local area for mergers and acquisitions in the future.

　　The latest financial report shows that in terms of revenue and net profit, SF Express is a well-known express delivery company in China, and its revenue in the first half of the year was 8.5 billion yuan more than the total of "Three Connections and One Degrees".

　　It is expected to enhance SF Express's voice in the field of transportation

　　According to media reports, since May and July this year, the Railway Corporation has issued invitations to Alibaba, Tencent and FAW Group to participate in the mixed reform of the Railway Corporation. In addition, China Railway Express and other companies under the Railway Corporation have begun to write reform plans internally since June and have cooperated with SF Express, Alibaba, JD and other companies at the business level. Among them, relevant personnel from SF Express have entered the office of China Railway Express.

　　"This is a good thing for both parties." Shao Zhonglin, former deputy secretary-general of the China Express Association, said that as the leader in the express delivery industry, SF Express has a leading advantage in operations, services, IT construction, etc., and has a strong ability to form an organic network through diversified transportation tools. This ability has a reference effect on the reform and development of China Railway Corporation.

　　Shao Zhonglin said that SF Express’s shareholding will further promote the entire railway freight reform to bring more benefits to the express delivery industry, and will have more operational capabilities and platforms to tilt towards the express delivery industry, reducing logistics costs and improving logistics speed. At the same time, the semi-militarized management experience accumulated by the railway system over the past years will also help improve SF Express’s risk control capabilities. At the same time, becoming a shareholder of China Railway Corporation will also enhance SF Express’s voice in the field of transportation and logistics.

　　Data shows that a few years after the completion of the restructuring in 2013, China Railway Corporation's operating performance and debt scale remain under pressure.

　　In 2016, China Railway Corporation achieved a total tax-inclusive income of 907.448 billion yuan, a year-on-year decrease of 0.96%; in 2016, China Railway Corporation achieved a total profit of 39.645 billion yuan, a year-on-year decrease of 25.84%. At the same time, the scale of debt burdened by China Railway Corporation is still expanding. As of the end of 2016, the total liabilities of China Railway Corporation were 4715.344 billion yuan, an increase of 15.14% year-on-year.

　　Compared with China Railway Corporation, SF Express's size is "lightweight". Data shows that in 2016, SF Express achieved a total operating income of 57.483 billion yuan and a net profit of 4.180 billion yuan. However, SF Express's performance growth rate was better than China Railway Corporation. Last year, SF Express's revenue growth rate was 19.5%, while its net profit growth rate reached 279.55%.

　　Whether the "SF Express Plan" can be recognized becomes the key

　　Faced with so many big shots, how can SF Express ensure that it has the advantage of speaking in participating in the mixed reform of the China Railway Corporation?

　　Shao Zhonglin, former deputy secretary-general of the China Express Association, said that whether it is high-speed rail express, freight logistics or ticket express delivery, they are most closely integrated with SF Express's own business. Due to more commonalities, the complementary effect will be more obvious, and the level of cooperation will be relatively deeper.

　　In the view of senior industry analyst Tang Xin, if SF Express wants to take the lead, it still needs to use its own business advantages and operational experience to make the " SF Express solution" the most scientific solution, and to allow China Railway Corporation's various businesses to be more closely integrated with SF Express, so that it is possible to gain more voice. (Source: NetEase News)

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