Monthly express deliveries exceeding 10 billion have become the norm, and the order volume of Didi Enterprise Edition has recovered to the pre-pandemic level.

Monthly express deliveries exceeding 10 billion have become the norm, and the order volume of Didi Enterprise Edition has recovered to the pre-pandemic level.

1. State Post Bureau: Monthly Express Delivery Volume Exceeding 10 Billion Pieces Has Become the Norm
On October 10, the State Post Bureau stated at the 2023 third quarter industry operation scheduling meeting and the second batch of thematic education promotion meeting that since the beginning of this year, the postal industry has been operating at a high level, with major indicators maintaining double-digit growth. Monthly express delivery volumes exceeding 10 billion pieces have become the norm, making a positive contribution to the comprehensive construction of a modern socialist country.
Commentary: The express delivery industry continues to develop rapidly, providing strong momentum for economic growth. With the widespread adoption of e-commerce and the internet, monthly express delivery volumes exceeding 10 billion pieces have become a norm, indicating robust growth in the industry. The rapid increase in express delivery volumes is partly due to the expansion of e-commerce platforms and the convenience of online shopping, reflecting the growing dependence on express services. This growth drives economic development, creates numerous job opportunities, and promotes related industries such as logistics, e-commerce, and finance.

2. JD Express Officially Announces Service Upgrade: “Compensation Guaranteed if Not Picked Up Within 1 Hour” and “Compensation Guaranteed for Any Delay”
On October 10, JD Express officially announced service upgrades, including three service commitments: “compensation guaranteed if not picked up within 1 hour,” “compensation guaranteed for any delay,” and “compensation guaranteed if delivery is not made to the door.” According to a reporter from “National Business Daily,” the “compensation guaranteed if not delivered to the door” commitment primarily targets the delivery phase, but JD Express extends this to the pickup phase, emphasizing the “compensation guaranteed if not picked up within 1 hour” service. Additionally, there is a full-process timeliness commitment to compensate for delays after the pickup begins (limited to express products—Express Delivery, Fresh Express). Currently, the promise of compensation for pickup and delivery not made to the door covers 50 cities, including Beijing, Shanghai, Shenzhen, and Urumqi.
Commentary: The upgrade in express services further protects consumer interests. JD Express’s new commitments signify a stronger focus on consumer interests in service quality. The “compensation guaranteed if not picked up within 1 hour” commitment provides faster express services while ensuring the safety of consumer goods. The “compensation guaranteed for any delay” commitment promises timeliness throughout the process, compensating for orders exceeding the time limit, thus improving logistics efficiency and reducing consumer wait time. The “compensation guaranteed if delivery is not made to the door” commitment enhances the delivery phase, further safeguarding consumer rights.

3. SF Express Offers Same-Day Delivery Service for Hong Kong Users

On October 10, SF Express announced a comprehensive upgrade to its cross-border consolidation and transfer platform, “SF Consolidation,” providing Hong Kong users with a “door-to-door, fastest same-day delivery” service experience. SF Express stated that packages ordered on mainland Chinese online platforms and consolidated before 10 a.m. could be delivered to the door in Hong Kong the same day, meaning users can consolidate packages on their way to work and receive them when they return home in the evening. Packages consolidated after 10 a.m. can also be delivered the next day, significantly speeding up delivery times. SF Express can provide door-to-door delivery service across Hong Kong without additional residential surcharges. Currently, SF Express has over 1,500 business outlets, SF stations, smart lockers, and partner convenience stores in Hong Kong, covering all residential and commercial areas.
Commentary: SF Express accelerates its layout in the cross-border logistics market. The announcement of “door-to-door, fastest same-day delivery” service for Hong Kong users is significant for the cross-border logistics market. Due to Hong Kong’s unique geographical position, logistics services need to be efficient, safe, and reliable. SF Express optimizes the logistics chain and improves service quality to meet the demand for quick and convenient logistics services in the region.

4. Juyi Group Reaches Long-term Strategic Partnership with Pierre Fabre Group
On October 10, a reporter from “National Business Daily” learned from Juyi Group that the company and France’s Pierre Fabre Group announced a long-term strategic partnership based on the “René Furterer” brand. René Furterer is a high-end dermatological hair and scalp care brand under Pierre Fabre. According to the agreement, Juyi will be fully responsible for the brand’s business in China in the long term. This cooperation agreement will take effect on January 1, 2024.
Commentary: A new landscape in the Chinese hair care market. This cooperation will have a profound impact on the Chinese hair care market, potentially driving technological innovation and quality improvement in the sector.

5. Douyin Registers Software Copyright for Mid-Length Video App
On October 10, Tianyancha App showed that on October 9, Beijing Weibo Vision Technology Co., Ltd. received registration approval for the software copyright of the “Douyin Selection APP,” with the current version number V2.0. According to media reports, Douyin’s mid-length video app “Qingtao” has recently been renamed “Douyin Selection.”
Commentary: This move indicates Douyin’s plans to enter the mid-length video market. With changing user demands and increasingly rich video content, the mid-length video market has broad prospects. Douyin aims to seize this market opportunity by providing diverse video content to enhance user experience and engagement. Additionally, Douyin’s large user base and strong content distribution capabilities provide favorable conditions for its expansion into the mid-length video market.

6. Didi Enterprise Version: 39 New Central and State-Owned Enterprises Signed in 2023, Corporate Travel Demand Gradually Recovers
Data from Didi Enterprise Version shows that corporate travel demand has been gradually recovering since September. Didi Enterprise Version’s order volume has recently fully returned to pre-pandemic levels. This year, many enterprises, including 39 central and state-owned enterprises, have joined Didi Enterprise Version. Data shows that in September, overall corporate travel demand increased by about 13.5% month-on-month compared to August. Among them, air ticket bookings increased by 13.1%, train ticket bookings by 17%, and hotel check-ins by 12.4%. Dalian, Changsha, and Shijiazhuang became the top three cities with the fastest-growing travel demand during this travel peak season.
Commentary: Corporate travel demand has returned to pre-pandemic levels, and the corporate travel market has promising prospects. Didi Enterprise Version has made significant progress in cooperating with central and state-owned enterprises, with corporate travel demand gradually strengthening. This trend may indicate a recovery in corporate travel demand, positively impacting Didi Enterprise Version’s development. Additionally, the inclusion of central and state-owned enterprises may bring more resources and opportunities to Didi Enterprise Version.

7. Mixue Bingcheng Responds to IPO Rumors: No Comment on Online Speculation
According to Cailian Press, there are rumors that Mixue Bingcheng plans to conduct an IPO in Hong Kong next year, raising about $1 billion. In response, Mixue Bingcheng told Cailian Press reporters that it would not comment on online speculation.
Commentary: The news involves rumors of Mixue Bingcheng planning an IPO in Hong Kong next year, but the company has chosen not to comment. This may indicate some uncertainty or consideration regarding the IPO plan. This news could spark market attention and discussion about Mixue Bingcheng’s business model and development prospects. Although the company has not directly responded to the matter, this news undoubtedly brings more speculation to the market.

Cited from https://finance.eastmoney.com/a/202310112866189698.html

Are Imported Fruits Losing Their Luster? The “King of Fruits” Suffers a Dramatic Plunge in Wealth, with Only 600 Million Yuan Left

Imported Fruits Losing Their Appeal? “Fruit King” Sees Wealth Shrink Dramatically, Company Left with Only 600 Million RMB
Despite Impressive Performance, Why Has the First Fruit Stock Lost Its Luster?
From “Bang Bang” to “Fruit King”: A Legendary Life “Bang Bang” is one of the distinctive features of Chongqing, referring to the local term for dock laborers.
With just a bamboo pole, a bundle of rope, a strong shoulder, and physical strength, the tools of a “Bang Bang” are simple, and the rewards are not substantial.
In 1987, 17-year-old Deng Hongjiu came to Chongqing and joined the ranks of the “Bang Bang Army.”

Soon, he realized that selling fruits by carrying them was more profitable than just manual labor, so he started his fruit business.
Shortly after, Deng’s keen sense for business spotted an opportunity: the price of red mandarins at the Chaotianmen dock was almost double that in his hometown of Changshou. Why not buy the mandarins locally and sell them in Chongqing?
Without hesitation, he returned to Changshou, purchased red mandarins, and brought them to Chongqing for sale. Within a month, he made his first small fortune of 80 RMB.
To put this in perspective, in 1987, the monthly income of an ordinary worker was about 40-50 RMB. Earning 80 RMB in a month gave 17-year-old Deng Hongjiu the confidence to pursue the fruit business.
Riding the tide of the times, Deng Hongjiu’s fruit business grew larger. With improvements in logistics and cold chain technology, Deng led his team to officially establish Hongjiu Fruits in 2002.

Three years later, Deng ventured into high-end imported fruits, which commanded high prices and profits, making a significant profit.
Deng’s quick thinking led him to consider why he shouldn’t directly purchase fruits from Southeast Asia and wholesale them to the domestic market, thus eliminating the middleman.
Hongjiu Fruits transformed again, entering the imported fruit wholesale business.
To reduce losses of tropical fruits during transportation, Deng decided to procure, process, and sell directly from the origin to the domestic market.
This approach ensured the freshness of the fruits and reduced losses, quickly opening up the market.
The new era “Fruit King” thus began his legendary journey to wealth.
Capital Involvement and Listing on the Hong Kong Stock Exchange: The First Fruit Stock As domestic consumption upgraded, the high-end fruit market expanded, attracting capital attention to the booming Hongjiu Fruits.
In 2016, Hongjiu Fruits successfully secured over 50 million RMB in Pre-A round financing.
Subsequently, Hongjiu Fruits received 178 million RMB in A round investment, 540 million RMB in B round investment, and a total of approximately 1.326 billion RMB in C round series financing, amounting to about 2.098 billion RMB in total financing.

Alibaba invested in the final round of financing for Hongjiu Fruits on September 23, 2020.
In addition to Alibaba, investors in Hongjiu Fruits include Tianyi Capital, CMC Capital, Sunshine Insurance, Shenzhen Venture Capital, China Merchants Capital, SF Holdings, and CITIC Securities, among many others.
This reflects the high confidence investors had in Hongjiu Fruits’ business.
According to the prospectus of Hongjiu Fruits:
• In 2019, the company’s revenue was 2 billion RMB.
• In 2020, the revenue reached 5.771 billion RMB.
• In 2021, it grew to 10.28 billion RMB.
• In 2022, it continued to surge to 15.081 billion RMB.
With a sevenfold revenue increase over four years, such impressive performance naturally attracted capital attention.
Following multiple financing rounds, Hongjiu Fruits went public in Hong Kong in September 2022, becoming the first fruit stock. Deng Hongjiu’s net worth soared to 8.5 billion HKD.
It had been 35 years since he made his first small fortune of 80 RMB.
Reasons Behind the Stock Price Plunge A month after listing, Hongjiu Fruits’ stock price skyrocketed, with a 270% increase over just 59 trading days, bringing the market value close to 60 billion HKD.
However, since entering 2023, Hongjiu Fruits’ stock price has been in continuous decline, losing nearly 90% by October this year.
What are the reasons behind the stock price plunge?
First, with declining consumption, the high-end fruit market no longer enjoys its former glory. The plummeting prices of some high-priced fruits have significantly impacted Hongjiu Fruits.
Secondly, the company’s slowed performance growth has affected investor confidence. Although the half-year report shows that Hongjiu Fruits’ revenue increased by 19.4% year-on-year, this growth rate is not poor, but it is a significant slowdown compared to the previous years’ growth rates.
Moreover, the company’s profit in the first half of this year has declined compared to last year. Increased revenue with declining profits raises concerns about the company’s future growth.

Most importantly, Hongjiu Fruits’ accounts receivable exceeding 10 billion RMB poses a significant threat to the company’s operations. As of the end of June this year, the total receivables were as high as 10.15 billion RMB, while cash in hand was less than 600 million RMB.
The company’s long-term model of “goods first, payment later” is gradually eroding its declining profits. The financial report shows that as of the end of June, the impairment of accounts receivable was as high as 716 million RMB.
The difficulty in collecting payments is likely to remain a long-term headache for Deng Hongjiu.
Under such immense pressure, capital has voted with its feet, making the plunge of the first fruit stock unsurprising.
How the Fruit King will regain his former glory and what the future holds for Hongjiu Fruits remains to be seen. We can only wait for time to provide the answers.

Cited from https://www.sohu.com/a/727356535_121686524

IN SEPTEMBER, CHINA’S EXPRESS DELIVERY DEVELOPMENT INDEX INCREASED BY 15% YEAR-ON-YEAR

China’s Express Delivery Development Index Increased by 15% Year-on-Year in September
On October 11, a reporter from the Economic Information Daily learned from the State Post Bureau that in September, driven by Mid-Autumn Festival consumption and other factors, the scale of the express delivery market expanded steadily. Service quality and efficiency improved significantly, foundational capabilities strengthened, and the development trend continued to be positive.

According to calculations, the China Express Delivery Development Index for September 2023 was 406.1, a 15% increase year-on-year. Specifically, the Development Scale Index, Service Quality Index, and Development Capacity Index were 434.3, 673.4, and 223.5, respectively, reflecting year-on-year increases of 12.7%, 19.9%, and 7.9%. The Development Trend Index also reached 67.1.

Hu Han, Director of the Logistics Statistics Department at the China Logistics Information Center, stated that in September, express delivery development indicators showed that the volume of express deliveries is expected to grow by about 20% year-on-year, and business revenue is expected to grow by about 14% year-on-year. In the first three quarters, express delivery volume and business revenue are expected to grow by approximately 16.4% and 11%, respectively, far exceeding the levels of the same period last year.

In the first three quarters, the foundation of the express delivery industry’s development remained solid, with market scale achieving “three consecutive rises.” Since March, the industry’s monthly business volume has reached 10 billion pieces, with monthly business revenue exceeding 90 billion RMB. September’s business volume is expected to set a new historical high for the same period. E-commerce collaboration has been thriving. In the first three quarters, the express delivery industry’s collaboration with e-commerce deepened, supporting the steady growth of online retail sales of physical goods. Since September, express delivery companies have optimized customized solutions for seasonal fruits, vegetables, seafood, and other specialty products, further stimulating online consumption. From September 18 to 27, daily business volumes exceeded 400 million pieces for ten consecutive days.

Recently, sweet potatoes in Xiajin County, Dezhou City, Shandong Province, have reached harvest season. “Sweet potatoes are fresh products. After harvesting, they are immediately loaded onto trucks by dedicated personnel and transported to our cooperative’s cellars and warehouses. This ensures product freshness and stable supply while solving sales problems for farmers,” explained Zhang Demin, a local e-commerce leader. The sweet potatoes are sold nationwide, with peak season orders reaching 9,000 orders per day.

Hu Han stated that express delivery companies, through integrated warehousing and sorting, achieve seamless order processing and transportation, helping businesses and farmers connect the upstream and downstream of the industrial chain. For different order delivery needs, they use various models such as consolidated shipping, less-than-truckload (LTL) + express direct shipping, and LTL + express intermodal transport, providing more flexible solutions to enhance supply chain service capabilities and help manufacturing enterprises reduce costs and increase efficiency.

Given the improvements in various capabilities, the outlook for the express delivery industry is clearly positive. According to relevant personnel from the State Post Bureau, with the arrival of traditional online shopping peaks like “Double 11″ and “Double 12,” the industry will gradually enter its peak business season in the fourth quarter, continuing to maintain a rapid growth trend.

Cited from https://baijiahao.baidu.com/s?id=1779501479739769816&wfr=spider&for=pc

The Launch of Datong Yak Brand and the Channel Cooperation Conference in the Guangdong-Hong Kong-Macao Greater Bay Area Successfully Concluded.

On September 9, the 2023 Datong Yak Brand Launch and Guangdong-Hong Kong-Macao Greater Bay Area Channel Cooperation Conference was grandly held in Shenzhen. The event was jointly organized by Qinghai Digital Village Operations Management Co., Ltd., Tencent, and Qinghai Haiwo Trading Co., Ltd., attracting nearly 40 channel partners from the Guangdong-Hong Kong-Macao Greater Bay Area.

Fruitful Channel Cooperation
During the conference, channel partners such as Yuanshi Food, Wotu Nongyou, and Shenzhen Aoyuan Trading raised questions about how Datong Yak meat maintains its natural “freshness” and whether there are refined cooking manuals to present its best flavor. They engaged in deep discussions with Liu Qinsong, General Manager of Qinghai Digital Village Operations Management Co., Ltd., covering topics from cold chain transportation to cooking techniques and nutritional value.

Simultaneously, Mi Cunmin, General Manager of Qinghai Haiwo Trading Co., Ltd., elaborated on the growth habits, meat quality, and nutritional value of Datong Yak.

Attendees sampled unique Datong Yak dishes, experiencing the meat’s distinct texture and product features firsthand, and gaining a deeper understanding of Datong Yak’s product quality and brand value.

Following comprehensive sharing and on-site tasting, Shibasan Fresh, Gexin Fresh, Southern Vegetable Basket, Qiaoshopu, and Lesheng Commercial signed channel cooperation agreements with Qinghai Digital Village Operations Management Co., Ltd.

Gexin Fresh engaged in in-depth discussions with Qinghai Digital Village Operations Management Co., Ltd. about establishing Guangdong’s first offline high-end flagship store for Datong Yak, planning to achieve high-end branding of Datong Yak meat through community-based marketing.

Meituan Youxuan, Yangyang Organic Ecological Agriculture, Guangzhou Niurou Supply Chain Co., Ltd., and other channels expressed cooperation intentions. Shandong Xinnong Technology showed a strong interest in selling Datong Yak meat and other agricultural specialties from Datong.

At the event, Li Yun, Deputy Secretary of Datong County Party Committee and Deputy County Mayor, Tu Shuang, Deputy General Manager of Tencent Cloud Smart Agriculture, Liu Qinsong, General Manager of Qinghai Digital Village Operations Management Co., Ltd., Mi Cunmin, General Manager of Qinghai Haiwo Trading Co., Ltd., and channel representatives jointly pressed their handprints, officially launching the Datong Yak brand, marking the beginning of Datong Yak’s journey to the world.

Brand Breakthrough and Product Iteration
Datong Yak breeding has a long history. The Qinghai Province Yak Breeding Promotion Service Center in Datong County is China’s earliest state-owned natural livestock breeding farm focusing on yak breeding. At the event, Li Yun, Deputy Secretary of Datong County Party Committee and Deputy County Mayor, delivered a speech showcasing Datong County’s initiatives and confidence in bringing the Datong Yak industry to the world. He stated, “We always integrate the development of the yak industry with rural revitalization, actively promoting the branding of the yak industry to add momentum and vitality to industrial revitalization.”

Tu Shuang, Deputy General Manager of Tencent Cloud Smart Agriculture, shared a presentation on “The Digital Breakthrough Model of the Datong Yak Industry,” analyzing the factors and strategies behind the successful digital breakthrough of the Datong Yak industry, demonstrating the strongest support for the industry’s expansion into broader markets.

Liu Qinsong, General Manager of Qinghai Digital Village Operations Management Co., Ltd., shared insights on “Market Opportunities and Cooperation Prospects for Developing Datong Yak,” addressing key and concerned issues about the industry’s development and channel partnerships from the perspectives of industry positioning, operational mechanisms, marketing and channels, and brand building.

Wang Zhixiang, President of Jiangsu Hengfeng Investment Group, presented on “The Brand Investment Value System under the County Economy” and the current status and planning of the Datong Yak industry, providing a comprehensive interpretation of the industry’s development history and affirming the brand’s investment value.

In the future, Datong County will continue to improve the scientific breeding, traffic empowerment, and brand building of Datong Yak, achieving quality improvement and high-quality development of the industry through spatial and temporal breakthroughs, product upgrades, and model innovations. By establishing a more diverse and comprehensive channel cooperation mechanism, they aim to grow the Datong Yak industry with partners, striving to build the “World Capital of Yaks,” effectively supporting rural revitalization from aspects such as products, channels, industry, and brand.

Cited from https://new.qq.com/rain/a/20231012A033GR00

HeFu LaoMian’s Outstanding Strengths Contribute to a Better Life

As a leading brand in Chinese cuisine, HeFu LaoMian has consistently earned the trust of consumers and market recognition through its comprehensive supply chain system and strict food safety controls. Recently, HeFu LaoMian has received multiple prestigious awards, including the “Contribution to a Better Life Award” and the “2023 Assurance Award” for the most popular restaurant chain at the 2023 Guangbao Night. It has also been ranked as the top noodle shop brand for 2023, maintaining its leading position in the industry. In the first half of this year, HeFu LaoMian was named the “High-end Noodle Restaurant Chain” and was listed among the top 100 new forces in Guochao cuisine for 2023.

These numerous awards and recognitions testify to HeFu LaoMian’s significant presence in the industry and among consumers, highlighting its strong market competitiveness. In the increasingly competitive restaurant industry, HeFu LaoMian’s impressive performance can be attributed to its robust supply chain system, which ensures high product quality and food safety standards.

Since its establishment, HeFu LaoMian has focused on building its supply chain. Before opening its first store in 2013, HeFu spent three years systematically constructing its product, supply chain, and brand systems, even creating a central kitchen for a single store—an unprecedented move in the restaurant industry. Today, HeFu LaoMian has established a nearly 100,000 square meter modern food industrial park, housing one of the largest central kitchens in the country, capable of supporting the basic operations of thousands of future stores and nationwide cold chain distribution needs.

The supply chain system, meticulously developed over more than a decade, is the key to maintaining HeFu LaoMian’s quality standards. The company has achieved standardization in food safety management, hygiene management, product production processes, and service, laying a solid foundation for scalable growth. Reports indicate that HeFu LaoMian will continue to enhance its digital infrastructure, further empowering its core business with digital technology to ensure consumers enjoy delicious and safe food.

Leveraging its supply chain and digital management, HeFu LaoMian has established multiple layers of “safety nets” for food safety. HeFu has developed a food quality management system that includes headquarters monitoring, logistics verification, store self-inspections, and “spot checks” by third-party testing agencies, ensuring that food safety information is traceable throughout every stage. Additionally, HeFu has invested nearly 10 million RMB in a food safety laboratory, capable of testing for pesticide and veterinary drug residues, heavy metals, and microbial counts, to strictly control food safety.

From product innovation to food safety quality, HeFu LaoMian has earned widespread consumer admiration with its “ten-year noodle” craftsmanship. Looking ahead, HeFu LaoMian will continue to leverage its supply chain advantages, continuously innovate its products and improve its services, providing consumers with a richer and more diverse high-quality dining experience.

Cited from https://www.sohu.com/a/727665316_121438824

XINJIANG LAUNCHES FIRST FRAGRANT PEAR COLD CHAIN TRAIN OF THE YEAR

Tianshan Net – Xinjiang Daily News (Reported by Lu Fengbao)
The reporter learned from China Railway Urumqi Group Co., Ltd. that on the afternoon of October 12, a freight train loaded with 514 tons of Korla fragrant pears departed from Kuqa Station. This marks the launch of Xinjiang’s first fragrant pear cold chain train this year.
“This is the first time fragrant pears are being transported by rail from Xinjiang to Hunan. After arriving in Hunan, the pears will be distributed to surrounding areas,” said Meng Lijun, Executive President of the Hunan Cold Chain Logistics Industry Association. Some of the goods will also be exported to Thailand, Vietnam, and other countries via the China-Laos railway cold chain train mode.

As Korla fragrant pears are now being harvested in large quantities and entering the peak sales season, quickly delivering high-quality fresh fruit to consumers has become a crucial part of upgrading modern specialty agriculture in southern Xinjiang.
Given the short shelf life of fresh fruit and the high requirements for transportation timelines, the Kashgar Freight Center of China Railway Urumqi Group Co., Ltd. has assigned special personnel to monitor all stages of the process, including ticket handling, safety inspections, loading, and shipping. They have also strengthened communication with shipping companies and truck transport companies to accurately track product preparation and loading progress. Special vehicles for cold chain container transport were prepared in advance to enhance transportation efficiency.

China Railway Special Cargo Logistics Co., Ltd. has set up a temporary railway cold chain equipment maintenance station in Kuqa City to carry out maintenance, servicing, and safety checks on the equipment used for the first fragrant pear cold chain train. Crew members monitor the temperature throughout the journey to ensure the quality of the fresh fruit during transport.
Since the beginning of this year, the Xinjiang railway department has increased cooperation with local governments, cold chain enterprises, and fruit merchants. They have thoroughly investigated the distribution, production capacity, and sales of the fresh fruit market, actively promoting cold chain logistics transportation for fresh fruit within Xinjiang. Based on customer transportation needs, they have implemented tailored strategies for each company, providing transportation capacity guarantees for the transport of fresh fruit from southern Xinjiang.

“To date, we have shipped 107 cold chain containers of fresh fruit, including new plums and grapes, totaling 2,140 tons. Through railway cold chain logistics, we have promoted high-quality specialty fruit products nationwide,” said Li Cheng, Party Secretary of the Kashgar Freight Center of China Railway Urumqi Group Co., Ltd. “We have transported over 112,700 tons of agricultural products, including walnuts, apple juice, and fruit jam, both domestically and internationally.”

Cited from https://www.ts.cn/xwzx/jjxw/202310/t20231012_16628804.shtml

Gao Jianguo led a delegation to conduct research on military entrepreneurship enterprises in Suzhou and Shanghai.

YUNLING SHENQING: SHANGHAI TECHNOLOGY ENHANCES QUALITY AND YIELD OF YUNNAN BLUEBERRIES

In the first half of this year, the blueberry planting base in Ganhe Township, Yanshan County, Wenshan Prefecture, Yunnan Province completed its second harvest since planting. Compared to the first harvest a year ago, this time the blueberry yield has significantly increased. These blueberries will be sold in fresh food supermarkets in major cities like Beijing, Shanghai, and Guangzhou, bringing considerable income to the villagers in the mountain areas of southern Yunnan.

Yunnan is characterized by mountainous and hilly terrain, with only small patches of flat land available in the valleys. Considering the local climate and sunlight conditions, developing specialty agriculture such as small berry cultivation is a good option. Jing’an District facilitated the introduction of Shanghai Lan Feng Investment Management Co., Ltd., which registered and established Yunnan Meilong Town Agricultural Technology Co., Ltd. in Yanshan County to plant blueberries using mobile facilities and soilless cultivation technology.

Blueberry cultivation is a long-term, high-investment, but also high-reward agricultural practice. Newly planted blueberries usually take 2 to 3 years to gradually enter the peak fruiting period. Long-term aid projects in Yunnan require long-term planning, continuous assistance, and proper overall management. It takes the successive efforts of many batches of Shanghai aid cadres to witness the day when the industry truly thrives. Isn’t this also a form of long-lasting affection between Shanghai and Yunnan?

Off-season blueberries can sell for up to 160 yuan per jin. The “Meilong Town” project in Yanshan began 3 years ago. In May 2021, the base planted 280,000 soilless blueberries. From December of that year to June of the following year, the first batch of blueberries was harvested, with a per plant yield of 2.5 kilograms and a selling price ranging from 80 to 160 yuan per jin. Thanks to Yunnan’s unique climatic conditions, Yanshan blueberries have the advantage of being available off-season. While domestically grown blueberries generally flood the market in summer, Yanshan blueberries begin harvesting at the end of the year, fetching good prices in the Chinese New Year market.

Since the introduction of the blueberry industry, four administrative villages in Ganhe Township, Yanshan County, have achieved a collective economic income of 280,000 yuan annually. Moreover, the cultivation, maintenance, harvesting, and grading of blueberries require manual labor, providing employment opportunities for farmers and helping increase their income.

In July 2022, Shanghai aid cadres were rotated, with Qiu Yongchun appointed as a member of the Standing Committee of the Yanshan County Party Committee and Deputy County Mayor, and Wang Xinle appointed as Deputy Director of the Yanshan County East-West Collaboration Leading Group Office. A few months later, the Wenshan Prefecture Government signed a strategic cooperation agreement with Guangzhu Agricultural Group to build a digital blueberry full-industry chain project in Yanshan County. Shanghai aid cadres continue to participate in formulating a new benefit linkage mechanism between companies, village collectives, and farmers.

Meticulous long-term planning and steady flow in long-term operations. Long-term projects face risks and slow returns. For farmers, not every day of the year is busy with blueberry harvesting and sales. How to manage risks and build long-term confidence among villagers? Shanghai aid cadres have provided the answer.

Qiu Yongchun stated that first, in terms of land transfer rent income, taking the first phase of Meilong Town as an example: a total of 1,305 acres of land was transferred, priced at 1,300 yuan per acre per year, with an increase of 100 yuan every 5 years, achieving an annual land transfer income of more than 1.7 million yuan. Second, the blueberry industry aims to strengthen the village collective economy. Each year, the company pays dividends to the village collective accounts based on a certain proportion, providing another source of income besides land transfer and labor.

In Ganhe Township, local farmers intercropped two varieties of corn in seven blueberry greenhouses to support the blueberries’ growth. When planting blueberries, a gap was left between rows, utilizing this space to improve land utilization. The intercropped corn, with its short growth cycle and simple cultivation methods, takes just over 60 days from planting to harvesting, completely staggered with the blueberry growth cycle. This achieves maximum yield per acre by intercropping fruits and vegetables.

Intercropping economic crops not only supports long-term growth with short-term gains but also provides some biological control effects. The aroma from the male flowers at the top of the corn plants attracts agricultural pests, reducing the pest impact on blueberries. After harvesting the mature corn, the stalks are sent to cattle farms as silage. These details reflect the meticulous and long-term cooperation in the Shanghai-Yunnan collaborative industrial project.

Building cold chain storage for a stronger industrial chain. The year Qiu Yongchun went to Yunnan to aid, Yanshan County invested Shanghai East-West collaboration funds to build a blueberry cold chain storage and refrigeration system, which has now been partially completed and put into use.

Cold storage is a crucial part of the fruit industry chain. After being harvested, fruits carry a lot of field heat and produce a lot of heat due to respiration. If not cooled promptly, they will mature faster, affecting storage and transportation, and in severe cases, causing rot. Fresh blueberries are crisp and sweet, but overripe ones will have compromised taste and appearance. Cold storage and cold chain transportation determine whether the value of the marketed blueberries can be maximized.

Additionally, Shanghai aid cadres and Yanshan cadres and villagers are working together to further enhance and improve the intelligence and standardization of the cold chain logistics sector. In the future, blueberries planted and produced in Yanshan County will have their production data tracked in the entire process traceability system, whether in the production or the harvesting cold chain logistics stages.

Liu Qiangdong’s Prediction Falls Flat! JD Logistics Faces Pressures from All Sides as the Logistics Industry Landscape Transforms

This Year is a Big Year for the Logistics Industry, with Fierce Competition and Battle Flags Flying:

In June, J&T Express submitted its listing documents on the Hong Kong Stock Exchange; In August, SF Express (002352.SZ) applied for a secondary listing on the Hong Kong Stock Exchange; In September, Cainiao also submitted its listing documents on the Hong Kong Stock Exchange.

Logistics giants are gearing up, seemingly ready to start a new round of warfare.

There is a significant backdrop to this: since the pandemic restrictions were lifted in the first half of the year, the price per package for all courier companies has decreased. Shentong Express (002468.SZ), which saw a relatively large decline, dropped the price per package by 8.2% to 2.35 yuan, marking the start of a new round of price wars.

Even JD.com (JD.O, 09618.HK), which has always positioned itself as a high-end service, lowered its free shipping threshold from 99 yuan to 59 yuan for the first time.

Is this round of competition just a replay of the previous price wars?

On the surface, it is a price war, but in reality, it is global competition.

Discussing China’s logistics industry inevitably involves e-commerce.

Currently, e-commerce packages account for more than 80% of express package volumes, and the growth rate of e-commerce retail sales is significantly faster than that of total retail sales.

Behind every rising e-commerce company in China, there is a representative logistics company, such as Alibaba’s (BABA.N, 09988.HK) Cainiao, JD.com’s JD Logistics (02618.HK), and Pinduoduo’s (PDD.O) J&T Express.

In terms of business models, the three e-commerce logistics companies differ greatly: JD Logistics operates directly, Cainiao primarily functions as a logistics platform, and J&T Express uses a franchise model.

Although Cainiao once claimed it did not engage in courier services, from Daniao to Cainiao Direct Delivery and now Cainiao Express, the role of courier services within Cainiao has become increasingly important.

Currently, Cainiao Express positions itself as a quality courier service, helping Alibaba’s direct business (Tmall Supermarket) achieve next-day delivery services, a positioning very similar to JD Logistics.

Another major difference among the three companies is their overseas business.

Cainiao generates 47% of its revenue from international logistics, including Chinese goods being exported and overseas goods being imported. The company is the largest cross-border e-commerce logistics company in the world.

Cainiao also derives 46% of its revenue from domestic logistics, with a revenue of 36 billion yuan in the 2022 fiscal year (Cainiao’s fiscal year ends in March), ranking third among domestic quality e-commerce logistics companies.

J&T Express originated in Southeast Asia, established in 2015, and entered the Chinese market in 2020 despite many doubters. In just three years, it reached a scale of 28.3 billion yuan in the Chinese market, with a market share of 10.9% by package volume, ranking sixth.

Last year, J&T Express generated a revenue of 16.4 billion yuan from Southeast Asia, accounting for 33% of its total revenue.

Although JD Logistics has some overseas presence, it mainly operates in China.

Not only e-commerce logistics, but SF Express also entered the Southeast Asian market in 2021 through the acquisition of Kerry Logistics. Currently, it is a leader among comprehensive logistics companies in Southeast Asia. The primary purpose of this round of financing on the Hong Kong Stock Exchange is to enhance international and cross-border logistics capabilities.

It is evident that companies seeking financing in this round have a certain scale of overseas business. The price war is only a facade; the essence has already escalated to global competition.

Competition in overall scale and profitability.

In the context of global competition, the Chinese market is undoubtedly important, but companies should not be confined to the gains and losses of a single city. Ultimately, it all comes down to competition in overall scale and profitability.

Among the three e-commerce logistics companies, JD Logistics remains the largest, with a revenue of 137.4 billion yuan last year, followed by Cainiao’s 77.8 billion yuan in the 2022 fiscal year, and J&T Express’s 50.1 billion yuan in 2022.

Both JD Logistics and J&T Express have made significant acquisitions in recent years.

JD Logistics acquired Kuayue Express in August 2020 and Deppon Logistics (603056.SH) in July last year.

J&T Express acquired entities in Southeast Asia from June to August 2021, Best Express in December 2021, and Fengwang Express in May this year, the latter being SF Express’s franchise courier business.

In terms of organic growth alone, Cainiao has surpassed JD Logistics this year, with JD Logistics’ growth rate continuing to decline.

Since Cainiao’s fiscal year is not a calendar year, using data from the first half of this year, Cainiao’s organic growth rate is 24.7%, still much faster than JD Logistics’ 5.9%.

J&T Express, which entered the domestic market relatively late, has seen fluctuating growth rates in its early stages, with an organic growth rate of 28.2% in the first half of this year (in RMB terms).

In terms of profitability, Cainiao’s gross margin is higher than JD Logistics, and its adjusted operating profit margin has shown a very clear upward trend, achieving profitability in the first quarter of the 2023 fiscal year, while JD Logistics is still at a loss.

J&T Express’s gross margin only turned positive in the first half of this year, with a significant overall loss, with an adjusted operating profit margin of -19.9% last year.

The once-recognized top student JD Logistics does not have such good financial data.

JD Logistics: Succeeding Because of JD, Struggling Because of JD

Liu Qiangdong once said, “In the future, there might be only two courier companies surviving in the domestic logistics industry, one is JD, and the other is SF Express.”

This statement is only half correct.

At that time, Alibaba did not engage in courier services, and companies like SF Express and the three Tongdachang were not competitors for JD or SF Express. However, Alibaba’s self-operated scale grew larger, and Pinduoduo also emerged.

As e-commerce companies reach a certain level of development, they must strengthen control over the logistics segment. Well-managed logistics can reduce costs, improve service quality, and promote business development, thereby feeding back more orders.

From this perspective, it is unlikely that the four major e-commerce giants—JD, Alibaba, Pinduoduo, and Douyin—will help each other’s logistics businesses grow.

JD Logistics developed with the support of JD. Last year, 74% of JD’s total fulfillment costs were contributed to JD Logistics, a high proportion.

However, due to its own growth difficulties, JD can no longer provide more support to JD Logistics.

Last year, JD’s electronic products and home appliances grew by 4.7%, and daily necessities grew by 8.1%, both hitting multi-year lows.

In the first half of this year, the growth rate of electronic products and home appliances rebounded to 5.5%, while daily necessities saw negative growth, with a combined decrease of 0.2% year-on-year.

In the past year and the first half of this year, JD Logistics’ revenue from JD grew by 5.9% and decreased by 2.4%, respectively.

From the perspective of economies of scale, JD Logistics must expand more external customers.

JD Logistics categorizes its customers into three types: JD Group, external integrated supply chain customers, and other external customers.

The main difference between the latter two is that the integrated supply chain offers full-chain services with more pricing leverage, while the company provides standardized products such as courier and freight to other external customers, where it’s a matter of getting what you pay for.

Since 2019, the growth rate of other external customers has far outpaced that of external integrated supply chain customers, indicating that the company’s efforts to expand the latter have not been very successful.

Moreover, platforms like Douyin and Kuaishou belong to “other external customers,” meaning JD Logistics only provides them with standardized products and competes with SF Express, Tongdachang, and others on the same platform.

Last July, the acquisition of Deppon Logistics brought in more other customers.

As a result, despite being the second-largest domestic logistics company, JD Logistics still has a significant gross margin gap with SF Express and cannot achieve stable profitability like SF Express.

Liu Qiangdong clearly underestimated the influence of e-commerce on logistics companies. JD Logistics has not escaped the positioning of e-commerce logistics. It can be said that it succeeds because of JD and struggles because of JD.

Going Global: J&T Express and Cainiao

As mentioned earlier, the main theme of this round of courier company competition is going global.

This is not only because overseas markets offer significant growth potential but also because the profitability data in these markets are better.

Taking J&T Express as an example, the price per piece in the Southeast Asian market is nearly three times that of China, with a gross margin of up to 20% last year, higher than SF Express. This is the confidence behind J&T’s return to the domestic market.

Although Cainiao has not disclosed the gross margin and revenue per package by business segment, calculations show that the average revenue per package for its international logistics business exceeded 25 yuan in the first quarter of the 2023 fiscal year, and it has been increasing year by year. In contrast, the average revenue per order for domestic logistics is less than 15 yuan and is gradually declining.

The imagination space for cross-border business is indeed greater.

In terms of package volume, Cainiao is the largest cross-border e-commerce logistics company globally, ranking first in both Chinese export and import e-commerce logistics. Cainiao also has the largest cross-border e-commerce warehouse network worldwide.

Three Chinese Companies in the Top Ten: The Era of Global Competition Has Arrived

Logistics is an ancient industry, evolving from early road and water transport to later rail and air transport, and more recently into same-city instant delivery and cold chain transportation.

Overall, Chinese companies are latecomers in this industry. Among the world’s top ten logistics companies, apart from Chinese companies, all are headquartered in developed countries like the US, Germany, Japan, and France.

The three Chinese companies in the top ten are SF Express (fourth), JD Logistics (fifth), and Cainiao (tenth). Considering the rapid development of China’s e-commerce industry and the still low concentration in the logistics industry, Chinese companies still have great potential.

This is likely why J&T Express insists on returning to the Chinese market.

With significant scale achieved, the growth of overseas e-commerce, and the export of Chinese goods, global competition has become the main theme of the new round of competition.

Following this wave of e-commerce development, China has seen the rise of several logistics companies, such as JD Logistics, Cainiao, and J&T Express.

Since the beginning of this year, a new round of courier price wars has started, with logistics companies applying for stock market financing one after another.

However, delving deeper, the price war is only a facade; the main purpose of financing is to go global, which is the main theme of this round of competition.

Due to Alibaba’s shift to self-operation and the rise of Pinduoduo, these companies have increasingly focused on controlling the logistics segment. Liu Qiangdong’s prediction that there would only be two logistics companies left in China has been broken.

The rapid rise of Douyin e-commerce has further added variables to the logistics industry.

In this process of change, JD Logistics, which once had an early advantage, has been constrained by its parent company’s slow growth and competition from SF Express and others, resulting in slowing growth and unstable profitability.

Cainiao and J&T Express, on the other hand, have benefited from the large ecosystems of their respective companies and have rapidly developed overseas businesses, showing that Chinese logistics companies still have great potential.

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