Shanghai Logistics Company's LTL business continues to grow

Highway Express-LTL business still occupies the bulk of revenue, but during the reporting period, the proportion was 89.60%, 76.72%, 62.83%, decreasing year by year. The vehicle business and express delivery business accounted for the rapid increase in revenue. The business was 4.34%, 8.40%, 11.42%, and the express delivery business accounted for 4.69%, 13.73%, and 24.09%.

Looking at the revenue growth rate, the LTL business still maintains growth, but the year-on-year growth rate in 2015 and 2016 was only 5.45% and 7.75%, the vehicle business growth rate was 138.19% and 78.94%, and the express delivery growth rate reached 260.75%. , 130.81%, in just 3 years, the Shanghai logistics company Debon Logistics Express business revenue increased from 490 million to 4.09 billion, an increase of more than 9 times.

Under the strong logic of "winners take all" in the logistics industry in the future, the entry from the LTL market to the express delivery market is an inevitable choice for Debon Logistics to improve its business matrix and counter the reverse penetration of the four major express giants. However, the "time difference" of the business structure of the LTL and express delivery business is also a development pain that Debon has to bear.

According to the prospectus, during the reporting period, the total revenue of Debon Logistics was 10.49 billion yuan, 12.92 billion yuan, and 17 billion yuan. The revenue growth rate in 2015 and 2016 was 23.14% and 31.57% year-on-year. Although this scale is not comparable to SF's revenue of nearly 60 billion yuan, Debon's revenue volume is very competitive compared to the 9.799 billion yuan, 9.982 billion yuan, and 7.361 billion yuan of Zhongtong, Shentong, and Yunda in 2016.

But the B side of revenue growth is Debon's bleak net profit performance. During the reporting period, Debon's net profit was 472 million yuan, 337 million yuan and 379 million yuan respectively, with a compound growth rate of -10.24%, and non-net profit deductions were 327 million, 210 million and 202 million, a decline for two consecutive years. The range reached 35.7% and 3.8%. Comparing the net profit performance of several major express delivery giants, SF, Zhongtong, Shentong and Yunda's net profits in 2016 were 4.18 billion, 2.165 billion, 1.262 billion and 1.176 billion, respectively, with a year-on-year growth rate of 112.51%, 76.8%, 64.97%, 120.63 %. Regardless of the scale of the net profit or the growth rate, Debon Logistics is far inferior to its competitors, and it is completely contrary to the average annual growth rate of 12.5% ​​in the logistics industry.

Even the stretched net profit performance is compounded by the huge amount of government subsidies "whitewashing" each year. According to the prospectus, from 2014 to 2016, the total amount of government subsidies received by the company, including financial rebates, tax refunds, and incentives, were 153.8 million, 145 million, and 158.3 million, respectively. Shanghai Logistics Company’s net profit over the same period was one of the government subsidies. The proportions are as high as 32.6%, 43% and 41.6% respectively. The proportion of more than 40% of government subsidies can be said to be “shocking”.

Yiye Zhiqiu, Debon Logistics' extremely weak net profit performance, basically declared the "sub-health" status of several other financial indicators.