Ex­press fund­ing

Lo­gis­tics com­pa­nies are seek­ing fund­ing to im­prove their tech­nol­ogy and move over­seas

China Daily (USA) - - FRONT PAGE - ByWUYONGand LIU CE in Shenyang Con­tact the writ­ers through wuy­ong@chi­nadaily.com.cn

Lo­gis­tics com­pa­nies are seek­ing fund­ing to im­prove their tech­nol­ogy.

The list­ing of Shang­hai Yuan­tong Ex­press Lo­gis­tics Co Ltd (YTO) on Thurs­day has made YuWei­jiao, founder of the com­pany, and his wife, the wealth­i­est cou­ple in China’s ex­press de­liv­ery busi­ness.

YTO won the race to the cap­i­tal mar­ket by merg­ing with listed com­pany Dayang Trands. The com­pany’s mar­ket value has now reached 97.5 bil­lion yuan ($14.4 bil­lion). The cou­ple’s whol­ly­owned com­pany took a 51 per­cent share of the listed com­pany. An­a­lysts es­ti­mate that their for­tune is 62 bil­lion yuan.

“With ac­cess to the cap­i­tal mar­kets, we will launch the new­plat­form and step into the age of cloud com­putin­gand­big data,” said Yu. “We aim to be­come a top-five com­pre­hen­sive lo­gis­tics sup­plier and sup­ply-chain in­te­gra­tor around the world.”

The Shang­hai-based com­pany was founded in 2000 by Yu Wei­jiao with reg­is­tered cap­i­tal of one mil­lion yuan. But its rev­enue shot up to 12.1 bil­lion yuan in 2015 af­ter set­ting up in co­op­er­a­tion with e-com­merce gi­ant, Alibaba, al­most 10 years ago.

Pub­lic in­for­ma­tion shows that YTO has set up 82 man­age­ment di­vi­sions, 64 trans­ship­ment cen­ters and more than 65,000 dis­patch­ing sta­tions.

Cur­rently, the com­pany has more than 260,000 em­ploy­ees and its net­work cov­ers 1,600plus cities across the na­tion.

An­a­lysts say YTOben­e­fit­ted from China’s boom­ing on­li­neshop­ping in­dus­try in the past decade, as did other lo­gis­tics com­pa­nies. China had $609 bil­lion of on­line re­tail sales last year, al­most dou­ble the $342 bil­lion in theUS, ac­cord­ing to a re­port of The Wall Street Jour­nal.

Be­sides YTO, the other four lead­ing de­liv­ery com­pa­nies — Shun­feng Ex­press, Shen­tong Ex­press (STO), Huitong and Yunda — are all seek­ing to go pub­lic via merg­ing with listed com­pa­nies. Zhong­tong Ex­press up­loaded a prospec­tus on the web­site of the US Se­cu­ri­ties and Ex­change Com­mis­sion at the end of last month.

“The rush to the cap­i­tal mar­ket re­flects the wor­ries and mis­giv­ings of the de­liv­ery in­dus­try, which is un­der pressure both from key ship­pers and in­ten­si­fied com­pe­ti­tion,” said Shao Jian­bing, pro­fes­sor of Busi­ness School at Liaon­ing Univer­sity.

Pub­lic in­for­ma­tion shows that YTO’s de­liv­ery busi­ness gross profit mar­gin went down from 21.49 per­cent to 13.42 per­cent in the past year, even though it had a 14.7 per­cent share of na­tion’s ex­press­de­liv­ery mar­ket by par­cel vol­ume.

With ac­cess to the cap­i­tal mar­kets, we will launch the new plat­form and step into the age of cloud com­put­ing and big data.”

YuWei­jiao, founder of Shang­hai Yuan­tong Ex­press Lo­gis­tics Co Ltd

XU KANGPING / FOR CHINA DAILY

Yu Wei­jiao, founder and chair­man of Shang­hai Yuan­tong Ex­press Lo­gis­tics Co Ltd, de­liv­ers pack­ages for cus­tomers in Hangzhou, Zhe­jiang province.

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