Shunyou Logistics Seeks HK Listing, Eyes 21.9% Market Share

Shunyou Logistics, a prominent cross-border e-commerce logistics service provider, has submitted an application to list on the Hong Kong Stock Exchange's main board. The company, officially known as Shenzhen Shunyou Cross-Border Logistics Co., Ltd., is seeking to raise funds through this public offering, with CITIC Securities International serving as the sole sponsor.

Shunyou Logistics is recognized as a seasoned player in the cross-border e-commerce logistics sector, leveraging its extensive network and infrastructure to support both e-commerce platforms and sellers. Established in 2008, the company offers comprehensive one-stop logistics solutions, featuring a vast logistics network, tiered pricing, multiple delivery time options, and a wide range of transportable items. The company's operations are deeply rooted in the Pearl River Delta region, one of the most dynamic areas for cross-border e-commerce in mainland China. It has expanded its services to key cities such as Shenzhen, Guangzhou, Dongguan, Yiwu, Ningbo, and Suzhou, as well as China Hong Kong and the United States.

According to Frost & Sullivan, approximately 5,000 service providers compete in the China B2C export e-commerce direct delivery logistics service market. The top 10 players, based on 2024 revenue, account for only 21.9% of the total market share. The market for direct delivery logistics services for special cargo is estimated to constitute about 27.0% of the overall China B2C export e-commerce logistics market in 2024. Shunyou Logistics ranks sixth in mainland China in terms of transaction volume for direct delivery logistics services for special cargo in 2024.

In terms of financial performance, Shunyou Logistics reported revenues of approximately 1.184 billion yuan, 1.506 billion yuan, and 1.522 billion yuan for the years 2022, 2023, and 2024, respectively. The company's net profit for the same periods was approximately 31.875 million yuan, 73.465 million yuan, and 43.875 million yuan, respectively.

Shunyou Logistics faces several key risks, including significant impacts on its business and growth from global e-commerce development and macroeconomic conditions in its target markets. The company may encounter challenges in expanding its cross-border logistics services and is heavily reliant on a diversified supplier network for critical services. Failure to maintain positive relationships with these suppliers or ensure their continued provision of reliable services could adversely affect the company's operations, financial condition, and overall performance.