INTRODUCTION TO

SF Group

2015

SF Profile

SF was established in Shunde, Guangdong Province in 1993. Since it inception,

SF has continued improving its service quality, investing in facilities and

vigorously developing and introducing IT technologies and equipment to realize

automatic operations. Currently, we have set up a nationwide network of branch

offices and service network to support information collection, market

development, logistics and express services. As the express service business continues growing, we focus on customers'

needs and have developed a large variety of services for sectors including e-

commerce, food, health care, auto parts and electronic products, and offers a

wide range of financial services covering payment, financing, assets

management and insurance for customers.

Thanks to our outstanding logistics network, we set up SF Best, SF Home, and

Heike to deliver high-quality services and excellent experience for customers. For the past years, we have continued providing customers with fresh service

experiences and helping customers succeed.

Development History

Initial Stage（1993-1996）

Inception

Since our inception in 1993, we

have overcome many hurdles to

expand our business presence

across China, benefiting from our

foothold in the affluent Pearl River

Delta region and the economic

symbiosis between Shenzhen and

Hong Kong.

Growth（1997-2002）

a leap forward

Following the return of Hong Kong

to China in 1997, we seized the

opportunity to accelerate our

business expansion. With the

strength of a direct sales model, we

expanded into the high-end market

segment with a range of high-

quality and responsive services.

Rooted in southern China, we

began to extend our business

reach to the rest of China. In 2002,

we set up our headquarters in

Shenzhen.

Rapid Growth（2003-2011）

adapting to changes

In 2003, SF started to rent all-cargo

aircrafts to elevate the transportation

capability. In 2006, SF reshuffled its

organization structure to improve the

management efficiency, introduce

regional management mode and

invented the unique five-element

management system. In 2009, SF

Airlines started operations and

tapped into the global market.

Transformation（2012-Present）

Dreams Take Off

While sub-dividing businesses, evolving

into a general logistics solution provider,

and elevating pharmaceutical transport

capability, express freight capability, cold

chain capability, and e-commerce

logistics service capability, SF further

optimized its organizational structure,

promoted the Business Group

management mode to improve service

quality and share management power

internally. As the SF Best, community

Heike stores, and SF Home have been

put into operation, SF also expands to

financial businesses and evolves into a

multi-business company.

Our Vision

Our Core Values

Our Principles of Integrity

Be honest and tell the truth

Protect our customers’ interests

Act in the best interest of our company

Avoid conflicts of interest

To become the world’s most reliable and

respected express delivery company. We are

committed to: Creating a motivating environment of which our employees

are proud of and satisfied with Winning our customers’ trust by exceeding their expectations Becoming an industry leader Demonstrating social responsibility

Respect Teamwork Attentiveness Dedication Respect - Earn trust by giving respect and treating people the

way we want to be treated Teamwork - Develop trust and mutual support by demonstrating

team spirit Attentiveness - Achieve excellence by taking our work seriously Dedication - Earn recognition and new opportunities by devoting

our time and efforts to our work

Business Structure

Business

Express Delivery

Business Group

E-commerce Logistics

Business Group

International

Business Unit

Financial Services

Business Group

Supply Chain Solutions

Business Group

Commerce

Business Group

Express Delivery Business Group

The Express Delivery Business Group provides

more than 10 products and value-added services,

including Express series and Specialized series,

to meet business and individual customers’

diversified requirements for express services and

provide customers with fast, safe and high-quality

express delivery products. With its extensive

express delivery network, cutting-edge information

technologies and equipment, and continuously

improving automatic operation, we realize full-

cycle express and information monitoring,

tracking, enquiry and resource allocation to

ensure secured and fast delivery.

Major Customers

Express Strength

40 all-cargo aircraft 15 Call Centers

123 second-tier

distribution hubs 7,000 customer service

representatives

155 third-tier

distribution hubs 1200,000 calls per day

As the first domestic express company to own all-cargo aircrafts in China, we

have 40 all-cargo aircrafts and deliver millions of shipments every day. We have set 123 tier-2 distribution centers and 155 tier-3 distribution centers

to ensure fast and secured delivery. 15 independent call centers with 7000 seats serve 1.2 million customers

every day. More over, 24/7 self-services are available on the 95338 voice system, SF‘s

official website, key account shipping system, member system, APP client

and WeChat official account. It is the only company in China with an online centralized mobile terminal

service system, and it has equipped all its couriers with hand-hold terminals

(HHTs), a high-tech product. We also introduce several intelligent systems

including the full-cycle shipment management system, online key customer

interconnection system, and resource allocation and monitoring system to

ensure safe and fast delivery.

E-commerce Logistics Business Group

Underpinned our rich warehousing and transportation resources, the E-

commerce Logistics Business Group is able to realize a short running period,

flexible distribution modes and dynamic regional warehouse adjustment to

meet different business and logistics demands. Special products and value-

added services such as Cloud Warehouse Same-Day Delivery, Cloud

Warehouse Next-Day Delivery, Return and Exchange Service are developed

to offer high-quality logistics services for e-commerce customers and help

customers build brand equity and customer loyalty, maximize customers'

benefits, build an open e-commerce logistics ecosystem, and provide one-

stop e-commerce logistics services.

Major Customers

7 Regional Distribution Centers

Packages delivered to 90% cities across China within 24hours

100Warehouses

Thousands of branches, covering over 2500counties

Over100,0000m2 effective storage area

Commerce Business Group

Sticking to its philosophy of “Best products and home

service”, SF Commerce integrates internal commercial

resources and relies on SF’s e-commerce platform SF Best

and offline community stores SF Home and Heike stores to

provide omni-channel services to local communities. With

solid logistics resources and fast cold chain home delivery

capabilities, the Commerce Business Group operates 4

multi-temperature comprehensive warehousing centers and

global direct purchase resources and offers fresh food,

mother and baby products, home electric appliances,

express and convenient services for consumers through

2600 offline community stores to better satisfy customers’

omni-channel shopping requirements.

Supply Chain Solutions Business Group

The Supply Chain Solutions Business Group focuses on providing

professional, customized and high-efficiency supply chain solutions for

customers in sectors including fresh food, pharmaceuticals, auto parts,

and electronic products. The Supply Chain Solutions Business Group

operates 20 Cold Chain Representative Offices, which rely on SF’s

outstanding air and ground transportation networks, 14 B2C cold

warehouses with professional temperature control technologies and

advanced system management capabilities to offer customers with

professional, safe, customized and efficient services.

Cold Chain services for the fresh product industry: Cold Chain

Express、Cold Chain City Delivery、Cold Chain LTL、 Cold Chain FTL、

Cold Chain Warehousing

Cold Chain services for the pharmaceutical industry: Cold Chain City

Delivery、Cold Chain LTL、 Cold Chain FTL.

For customers in the auto parts, electronic products industry: Heavy

Cargo Express. Advantages: guaranteed transit time, a wide scope of

products accepted, door-to-door service and various value-added

services.

Major Customers

Financial Services Business Group

Thanks to the express data network, the Financial Services Business Group

focuses on developing SF Internet financial modes and supply chain financial

services and builds a data-driving network to integrate people, mobile

devices and businesses, thus offering customized financial services and

emerging as the world's leading supply chain financial and consumer

financial service provider. SF Pay: It focuses on establishing electronic accounts and application

scenarios vertically and providing micro-financial services to micro-financial

merchants and community merchants based on SF's existing logistics and

commercial services. Supply chain financing: Provides warehousing financing services to facilitate

the development of the warehousing financial business.

Finance lease: Provides medium and long term finance lease solutions and

extra financing channels for upper-stream and down-stream customers. Value-added services: Convenient payment and settlement tools, systems

and platform R&D to offer payment, settlement, clearing, insurance and

other value-added services and solutions for SF’s express and logistics

customers.

International Business Unit

International Business Unit is committed to providing domestic and overseas

customers with complete and convenient cross-border logistics solutions.

Currently, SF International Business Unit has expanded its services to

Singapore, Malaysia, Japan, South Korea, Thailand, Vietnam, Mongolia,

Indonesia, Russia, and the USA. Among the countries, in Singapore, SF

International Business Unit not only provides Worldwide Express service but

also provides Intra-city Express service. In addition to Standard Express,

Worldwide Economy, Box Direct and Shipmax, SF International Business

Unit can also customize logistics solutions to satisfy the requirements of

different customers. Meanwhile, targeting at global E-commerce merchants

and consumers, SF International Business Unit has newly built an

International E-commerce Logistics Service Platform, which is dedicated to

providing professional import and export global logistics solutions to global E-

commerce merchants and consumers.

Currently, the main businesses include Merchant and Consumer Import and

Export Logistics Services and Russia Services. Among the services, the

Export Logistics Services include International Small Package, International

Special Line, and International Warehousing, covering 242 overseas

countries and regions; the Import Logistics Services include SF Global

(direct mail, bonded, and merchant agent), providing one package of

services from transportation, customs clearance, and delivery for overseas

shopping; Russia Services have been extended to 10 Eastern European

countries, providing a one-stop solution that integrates import and export

logistics, warehousing, and distribution.

E-commerce Industrial Park

E-commerce Industrial Park, taking the core service

orientation of promoting “sustainable development” of

local E-commerce business, cooperates with local

governments and houses professional e-commerce

companies that will enjoy warehousing and logistics

services, business support, investment and

acquisition opportunities, visual solutions, marketing

planning and professional training services, providing

one-stop supply chain solutions for e-commerce

companies and promoting sustainable development of

local E-commerce business. E-commerce Industrial Parks have expanded to 16

cities including Huai’an, Jiaxing, Taizhou, Zhuji, Yiwu,

Hefei and Zhengzhou and will expand to more than 50

cities in the form of two types, service type and hub

type, to build a nationwide E-commerce service

network, support operations of E-commerce

companies and provide comprehensive E-commerce

industrial parks for e-commerce companies.

Hub Type ：Serve SF operations Service Type：Serve e-commerce enterprise and

upstream and downstream to

meet their service demands

SF Airlines

In 2003, SF Express became the first private express company with night

charter flights in China. In 2009, SF Airlines under SF Express Group Co. Ltd. was officially

inaugurated, and SF Express became the first private express company with

self-run all-cargo aircraft. As of September of 2015, SF Airlines owns 20 all-cargo carriers featuring

B757s and B737s and the number of all-cargo aircraft that provides services

to SF has reached 40.

Domestic Network

SF Airlines has opened a number of air routes

connecting major cities in greater China, and its

transportation network will be further expanded

along with the continued business development

of SF Express.

International Network

We work with a number of international airlines to

ensure timely dispatch of shipments using

multiple air routes. We now offer express delivery

services in the U.S., Singapore, South Korea,

Malaysia, Japan, Thailand, Vietnam and Australia.

We will further expand our international network

in the future.

SF Technology

As SF‘s IT service provider, SF Technology focuses

on research and development of logistics information

technologies. SF Technology employs more than 2000

IT professionals and has obtained more than 40

patents and software copyrights with certificates as

Shenzhen Key Software Enterprise and National Hi-

tech Company. Cutting-edge technologies will empower SF to emerge

as the only company that can offer online centralized

mobile terminal services and full-cycle shipment

allocation and monitoring capabilities. In the future, SF

Technology will continue digging in fields including big

data and mobile Internet to fuel SF's rapid growth and

global business development.

Independent R&D and Patents

ASURA HHT management system

ASURA waybill management system

ASURA settlement management system

Business data monitoring and analysis platform system

Transit time management system

SF’s Awards

Honors and Recognitions AAAAA logistics enterprise by China Federation

of Logistics and Purchasing

“Flagship Enterprise for China’s Logistics Reform

of the Past 30 Years” by China Federation of

Logistics and Purchasing

Statistical Model Enterprise of the Logistics

Industry in 2009

Excellent unit in the postal industry in Guangdong

Province in 2010

Excellent unit for postal services and postal route

security for the Shenzhen Universiade 10 E-commerce

and Logistics Enterprises of Innovation

Key Logistics Enterprise of Shenzhen

Shenzhen Famous Brand

Awarded the “ Brand Enterprise” at the

International Logistics and Transportation Fair,

Shenzhen, China

"Firms with AA Grade Credit Management"

announced by Administration of Quality

Supervision, Inspection and Quarantine (AQSIQ)

"Large-sized Backbone Enterprises" announced

by the Economics & Information Commission of

Guangdong Province

SF’s Responsibility

SF diligently complies with all legal

regulations therefore assuring respect from

the business community and the public.

Donated RMB 2 million to the prevention and treatment of SARS in China and was awarded “A Donator of Love” by the

Ministry of Civil Affairs” Received the “Donation Certificate” from Guangdong Youth Development Foundation for donating RMB1 million to the

“Hope Project” Donated more than RMB 2.5 million to philanthropy Donated RMB 10 million to the earthquake relief efforts in Wenchuan, Sichuan Province, and began supporting the living

expenses of 44 orphans from Beichuan, Qingchuan, and Anxian until they are 18 years old. Established “Guangdong SF Charity Foundation”, and donated more than RMB 2.5 million to philanthropy Helped in the drought relief efforts in Southwest China, the reconstruction in the earthquake-stricken area of Yushu,

Qinghai, and the hydropower station construction project in ethnic minority villages; donated more than RMB 16.5 million Offered college scholarships, helped build seniors’ homes, and took part in the sponsorship to remote areas; donated

more than RMB 6 million to philanthropy Engaged in the “Lotus Scholarship”, road repair in villages and poverty alleviation programs; donated more than RMB 3

million to philanthropy Provided funds and goods for disaster relief, offered college scholarships, engaged in the “Lotus Scholarship and

"Guangdong SF Charity Foundation”, and the total donation had mounted up to more than RMB37.5 million SF has donated a total of over RMB 1,800 million to charitable programs, including SF audio-visual classrooms,

earthquake relief in Ludian, anti-poverty projects, scholarships and environment protection.

We are always active in philanthropy...

2003

2004-2005

2006-2007

2008

2009

2010

2011

2012

2013

2014

Sustainable Development

Promote environmental protection—green logistics and

low-carbon life To respond to the nation‘s strategy of sustainable growth and low-carbon

lifestyle, SF has launched a series of environmental protection activities from

three aspects, operations, business and public benefit, to improve the

resource utilization, cut carbon emission and energy consumption, and

realize sustainable growth. Internal measures: Improving packing materials, conducting power-saving

renovation and promoting power-saving office External measures: Promoting self-service tools and electronic waybills,

developing environmental-protection products and participating

environmental protection activities

Developing China Express Company Carbon Emission

Test Standard While growing rapidly, SF has vigorously fulfilled its social responsibility. We

have worked with relevant governing bodies to establish the express industry

environmental protection system to regulate carbon emission for express

companies. In May 2014, the state post bureau released the China Express

Company Carbon Emission Test Standard. In addition, we have launched a

series of internal energy-saving measures to promote green operations and

environmental-protection system. In the future, SF will continue promoting

green operations in the industry and working closely with interested parties to

build a green and sustainable business environment.

www.sf-express.com