SF Intra-city (09699.HK) Projects Strong Annual Revenue and Profit Growth amid Surging Demand for Instant Delivery

HONG KONG, Jan. 21, 2025 /PRNewswire/ -- Hangzhou SF Intra-city Industrial Co., Ltd. ("SF Intra-city" or the "Group", Stock Code: 9699.HK), China's largest third-party on-demand delivery service provider, is pleased to announce that the Group is expected to achieve profit growth for the year ended 31 December 2024 (the "Period"), with net profit attributable to the owners of the Company is expected to increase by not less than 100% year-on-year, while revenue is expected to grow by not less than 25% year-on-year, specifically revenue for the second half of the year is expected to grow by not less than 30% year-on-year.

The steady growth in SF Intra-city's net profit and revenue can be attributed to (a) the increase in consumption in the catering and retail industries in China and the development of the consumption and service sectors, leading to a higher demand for on-demand delivery; (b) the rapidly developing on-demand delivery industry and the Company's rapid growth in the order volume of intra-city on-demand delivery services and last-mile delivery services, with all business segments of the Company achieving balanced, high-quality, and healthy development; (c) the increase in market share and penetration rates, driven by the Company's technological innovation and continuous enhancement of digital intelligence capabilities, and the increased and widespread recognition of independent third-party positioning, branding, and products and services by its customers; (d) and continuous improvement in the quality and efficiency of the operational base and further leveraging of economies of scale and network effects, which further enhanced our lean management capabilities and enhanced efficiency in utilisation of resource input and output, leading to continuous improvements in gross profit margin and expense ratio.

While robust trends of recent domestic consumption and strong festive sentiment have driven up demand for intra-city instant delivery services, there has been a notable increase in ceremonial consumption, such as gift-giving and business delivery needs including document courier services. According to SF Intra-city's data, total order volume during Christmas 2024 across all scenarios increased by 81% year-on-year; orders on New Year's Day 2025 grew by 92% compared to the previous year; and order volumes doubled year-on-year in categories including supermarkets, department stores, beauty products, and beverages.

With the approaching Spring Festival, SF Intra-city, as China's largest third-party on-demand delivery platform, will continue to leverage its comprehensive delivery capabilities and "No-Holiday-During-Spring-Festival" service commitment to unlock more value.

Looking back on the Period, the Group has been firmly rooting itself in the local lifestyle services industry, proactively identifying and capitalizing on evolving market demands and growth opportunities and remaining steadfast in executing our strategic plans, culminating in favorable business results for the Group. SF Intra-city stays committed to the operational goal of "high-quality and healthy growth" and will actively seize market opportunities through continuous penetration of diversified traffic, development of local retail, acceleration of intra-city logistics, and expansion of third-party on-demand delivery services. The Group is committed to large-scale expansion, covering various scenarios, providing excellent services, and establishing a solid network to enhance its medium- to long-term revenue and profit potential.

The Group will adapt to evolving local lifestyle consumption scenarios and patterns,  maintaining focus on our core value contributions within the industry and urban operations. The Group will also strive to expand the boundaries of on-demand fulfillment services, enhance technological capabilities, and collaborate with more business partners, focusing on serving customers, industries, and society, creating more flexible income opportunities, and delivering broader value to the customers and shareholders.

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SOURCE SF Intra-city