On the evening of August 28th, SF Holding (002352. SZ, 06936. HK) released its 2026 semi annual report. In the first half of 2026, the company achieved a revenue of 155.5 billion yuan, a year-on-year increase of 5.9%; The net profit attributable to shareholders was 5 billion yuan, a year-on-year increase of 9.3%, with a net profit margin of 3.2%. Faced with many uncertainties in the external environment, SF Express's business resilience has become prominent, and the quality of profitability has steadily improved.

In the first half of the year, SF Express anchored three core directions for steady operation: the Express Logistics business adhered to value management, achieved stable volume and profit growth, and consolidated the core profit base; Seize the opportunities of domestic enterprises going global and upgrading flexible supply chains, accelerate the growth of supply chains and international business, and create a strong second growth curve; The large-scale application of AI technology helps to reduce internal costs and improve efficiency, and builds a competitive advantage in industry technology.

Steady improvement in business quality, two-way optimization of revenue and cost

During the reporting period, SF Express achieved a two-way optimization of revenue and costs, and its operational quality continued to improve. The company's operating revenue was 155.5 billion yuan, with a non attributable net profit of 5 billion yuan, and the non attributable net profit margin increased by 0.1 percentage points year-on-year; The net cash flow from operating activities was 11.2 billion yuan, with ample cash flow and a stable overall financial structure. Faced with external factors such as oil prices, SF Express continues to optimize its business structure, promote lean management, and achieve precise matching of resources and products. The combination of AI and large-scale application of intelligent equipment has released the dividend of digitization, achieving a gross profit of 20.91 billion yuan in the first half of the year, a year-on-year increase of 7.7%, and a gross profit margin of 13.4%, a year-on-year increase of 0.2 percentage points. The cost side has also been effectively controlled, with a year-on-year decrease of 0.2 percentage points in the financial expense ratio. With the upgrading of intelligence and continuous improvement in R&D efficiency, the R&D expense ratio has decreased by 0.1 percentage points year-on-year.

Building high service barriers for stable and far-reaching development

SF Express's business logic has shifted from scale driven to value driven, constantly expanding service boundaries and building a strong business moat. Currently, domestic service consumption is rapidly rising, and the growth rate of service retail sales is significantly higher than that of commodity consumption. In response to market changes, SF Express has shifted its focus from product services to scene cultivation, taking into account both consumer and industrial markets. The express delivery business plays a ballast role, and the revenue of express delivery excluding e-commerce returns increased by 5.3% year-on-year, with service quality and customer satisfaction ranking among the top in the industry. Economic express delivery continued to steadily move forward despite a relatively high base last year, with a year-on-year revenue growth of 7.5%. After optimizing category and resource allocation, single ticket revenue increased by 6% year-on-year.

At the same time, SF Express continues to extend its service capabilities to the manufacturing industry and seize opportunities for high-end manufacturing development. The express delivery business focuses on B-end customers in industrial areas, creating end-to-end delivery solutions and consolidating the leading position of less than truckload express delivery. In the first half of the year, it achieved revenue of 22.05 billion yuan, a year-on-year increase of 12.6%, and cargo volume increased by 9% year-on-year. SF Express has integrated AI into core processes such as scheduling, path planning, and capacity matching, resulting in continuous improvement in profitability and achieving a revenue of 6.71 billion yuan, a year-on-year increase of 22.1%.

Supply chain and international business growth lead revenue growth engine structural changes

Supply chain and international business have become important growth engines for SF Express, and its revenue structure has undergone structural upgrades. In the first half of 2026, the revenue of this sector was 39.58 billion yuan, accounting for 25.5% of the total revenue and a year-on-year growth rate of 15.6%; Excluding the impact of KLN business, the growth rate of SF's main supply chain and international business reached as high as 46.6%. With the acceleration of domestic enterprises' production capacity and brand expansion, SF Express is seizing opportunities in high prosperity fields such as electronic components, new energy vehicles, and smart wearables. The revenue of international express delivery and cross-border e-commerce logistics business increased by 60% year-on-year, and the delivery time of core routes in the Asia Pacific region ranked among the top in the world.

Global asset layout and impressive performance in cross-border multimodal transport

The impressive international business relies on SF Express's advanced global asset base. As a professional freight hub in Asia, Ezhou Huahu Airport has established an integrated system of air network, multimodal transport, and smart logistics. As of the semi annual report, the airport has opened 61 domestic routes and 25 international routes, and the international air cargo throughput has increased by 23% year-on-year, achieving the goal of "reaching the whole country overnight and connecting the world the next day". As an aerial pivot, SF Express has established overseas warehouses in 37 countries and regions, with a total area of over 2.75 million square meters. The warehouse service capabilities cover a variety of categories such as general cargo, high-value goods, and bonded goods. Combined with the improvement of cross-border multimodal transport network and the promotion of smart customs cooperation, the full chain self operated model creates differentiated competitive barriers.

The rich business scenarios and massive data of logistics have become the natural soil for the landing of SF AI. On the hardware side, over 3800 sets of automated equipment and approximately 2400 AGVs have been deployed in the transfer process; More than 1400 intelligent driving vehicles were deployed at the end of transportation, and unmanned heavy and light trucks were piloted. Over 3200 unmanned vehicles landed in more than 150 cities. On the software side, the company has built approximately 15000 industry intelligent agents, covering the entire business process; The self-developed "Fengzhi Big Model" project won the 2026 IDC China Artificial Intelligence Innovation Award. The value of technology has shifted from simply reducing costs to emphasizing both cost reduction and efficiency improvement, continuously unleashing business potential.

In terms of giving back to shareholders, SF Express has provided real money to convey long-term development confidence. The upper limit of A-share repurchase has been raised from 3 billion yuan to 6 billion yuan and has been fully executed. The repurchased shares will be used for capital reduction and increase earnings per share; The H-share repurchase plan with a maximum of HKD 500 million has been established simultaneously, and as of the end of July, approximately HKD 230 million of repurchases have been completed. The dividend plan is also clear, with a proposed cash dividend of approximately 2.5 billion yuan by mid-2026; The company plans to increase the annual dividend ratio to 45% in 2026, 50% in 2027, and no less than 50% in 2028, in order to stabilize dividends and share business results with investors.

In the first half of 2026, SF Express will embark on a path of high-quality development. With a solid foundation in domestic business, rapid breakthroughs in supply chain and international business, and continuous empowerment of operations with AI technology, SF Express is steadily moving towards becoming a global leader in smart supply chain.