上市捷报丨沙利文助力泛远国际控股集团有限公司成功赴港上市(2516.HK)

Pan-Yuan International Holdings Group Co., Ltd. (Stock Code:2516.HK) on2023year12month22The company successfully listed on the main board of the Hong Kong capital market. It is a well-known cross-border e-commerce logistics service provider in China, headquartered in China, mainly engaged in providing end-to-end cross-border logistics services. By coordinating its supplier network, the company can offer customers a variety of flexible and reliable delivery options, such as express, standard or economy delivery. Frost & SullivanFrost & Sullivan,Frost & Sullivan, referred to below as the 'Frost & Sullivan Group', provides exclusive industry advisory services for the listing of PanYuan International Holdings Group Co., Ltd. We hereby extend our warmest congratulations on its successful listing.

Pan Ocean International Holdings Group Limited (hereinafter referred to as 'Pan Ocean International') was incorporated on2023year12month22The company plans to go public on the 1st of July1.4100 million sharesHshares, including publicly offered shares1,40010,000 shares, allocated shares1.26100 million shares. The final issue price is RMB 10 per share0.9Hong Kong dollar, net proceeds from global offering6,689HK$10,000,000.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Investment highlights

The company is a well-known cross-border e-commerce logistics service provider in China;

The company has a wide range of service outlets and supplier networks, with a broad geographical coverage and diverse service types;

The company has over19Established past performance records over the years, understood and tailored to meet customer needs, thereby consolidating relationships with customers;

The company's management team is experienced and has a good track record;

The company owns an information technology system with patents, which helps improve operational efficiency.

China's import and export cross-border e-commerce industry

Definition and Market Scale of Import-Export Cross-border E-commerce

According to the E-commerce Research Center, cross-border e-commerce refers to import and export e-commerce trade and retail-related businesses. The market for cross-border e-commerce in China has developed rapidly in recent years.2022RMB 10 billion15.7trillion yuan.

Thanks to the State Council of China's2021year7The favorable policies such as the "Opinions on Accelerating the Development of New Forms and Models of Foreign Trade" published monthly are intended to promote cross-border e-commerceB2BThe supervision model for overseas warehouses exporting from China has been applied nationwide and expanded the scope of pilot projects in cross-border e-commerce comprehensive pilot zones. Looking ahead, Chinese authorities may maintain an open cooperation policy to support the further development of cross-border e-commerce.2027In [year], it is expected that the cross-border e-commerce market scale in China will reach RMB26.3trillion yuan, since2022The compound annual growth rate starting from the year10.9%.

Yu2018In [year], imports and exports of cross-border e-commerce accounted for78.9%and21.1%by2018Year-end2022In [year], the market scale of cross-border e-commerce exports in RMB7.1trillion yuan increased to RMB12.3trillion yuan. In the future, it is expected that this data will be2027Year-on-year increase to RMB20.3trillion yuan, which is equivalent to2022The compound annual growth rate starting from the year10.5%In terms of import cross-border e-commerce, the expected market scale will continue to expand, from2022Year-end2027The compound annual growth rate for the year is12.0%, in2027RMB 10 billion6.0trillion yuan. Yu2027At the end of the year, the expected proportions of cross-border e-commerce in imports and exports are77.2%and22.8%.

Source: Frost & Sullivan report

China Cross-border E-commerce Logistics Industry

Cross-border e-commerce value chain

The value chain of cross-border e-commerce includes upstream suppliers, midstream cross-border e-commerce platforms, and downstream consumers.

The upstream of the cross-border e-commerce industry mainly includes raw material suppliers, product manufacturers, local and overseas sellers, etc. Cross-border e-commerce platforms are one of the main components of the midstream of the cross-border e-commerce industry. Such platforms include Amazon, Alibaba,ebayAn online marketplace where suppliers sell products to global customers. It is the final stage of the cross-border e-commerce industry, involving processes such as distribution, product returns, and customer service. Retailers and individual consumers are the main components of the downstream of the cross-border e-commerce industry. Logistics services, operational support, technical support, and payment processing are key supporting services throughout the entire cross-border e-commerce process.

Source: Frost & Sullivan report

Cross-border E-commerce Logistics Service Process

Packaging, warehousing, customs clearance, and transportation are the core processes of cross-border e-commerce logistics services. The service level of cross-border e-commerce logistics and the efficiency of the logistics system are the guarantees for the development of cross-border e-commerce.

Cross-border e-commerce is of great significance for the transformation, innovation, and upgrading of foreign trade. Traditional foreign trade faces issues such as high costs, low transaction efficiency, and complex transaction steps. At the same time, the market participants in traditional foreign trade are relatively limited, mainly including manufacturers and foreign trade enterprises. Trading enterprises rely heavily on merchant intermediaries with a background in traditional foreign trade.COVID-19 pandemicThe outbreak has hindered the development of traditional foreign trade, while cross-border e-commerce has become highly favored by businesses and consumers. Due to the absence of time and space constraints, the transaction chain has been greatly shortened. Cross-border e-commerce can provide consumers with convenient purchasing channels, significantly improving the efficiency of foreign trade transactions.

In addition, cross-border e-commerce logistics can transport a wider variety of goods. During transportation, small quantities are transported multiple times. For traditional foreign trade, however, the throughput of goods per transaction is large, and the types of goods are relatively single. Moreover, merchants can also choose appropriate logistics based on sales volume and inventory status to reduce operating costs. Therefore, as an important channel for foreign trade transformation, cross-border e-commerce plays a leading role in the innovative development of foreign trade. The entire process of cross-border e-commerce logistics involves many participants, including freight transport companies for parcel collection, customs clearance-focused companies, warehousing and packaging storage companies, companies specializing in land, sea, and air transportation, etc. The Group's role is as an integrator, establishing close cooperative relationships with these companies, including those involved in parcel collection, customs clearance, warehousing, distribution, land, sea, and air transportation, last-mile delivery, and other services.

Source: Frost & Sullivan report

Market scale of cross-border e-commerce logistics industry in China

Driven by economic growth, logistics has undergone high-quality development. Over the years, overseas trade has seen an upgrade. According to data from the General Administration of Customs,2021The scale of annual foreign trade import and export exceeded6trillion dollars. Imports and exports with major trading partners and countries along the Belt and Road Initiative are in2021Stable growth was achieved in the year. In addition, departments such as the Ministry of Commerce and the National Development and Reform Commission also2021year3Monthly release of a series of policies and regulations, such as the 'Notice on Expanding Cross-border E-commerce Retail Import Pilot Programs and Strictly Implementing Regulatory Requirements', aims to expand the cross-border e-commerce retail import pilot program to all free trade pilot zones, comprehensive cross-border e-commerce pilot zones, comprehensive bonded areas, etc., as well as those issued by the State Council of China2020year8The 'Opinions on Further Doing a Good Job in Stabilizing Foreign Trade and Foreign Investment' issued in the current month aim to further strengthen the work of stabilizing foreign trade and foreign investment, stabilizing the industrial chain and supply chain, and supporting the development of new trade formats. Therefore, with the upgrading of overseas trade in recent years and favorable policies, cross-border e-commerce has shifted from quantitative growth to qualitative growth, continuously promoting the development and upgrading of cross-border e-commerce logistics.

The market scale of cross-border e-commerce logistics includes the revenue generated by local and overseas logistics providers for cross-border e-commerce logistics in China. The market scale of cross-border e-commerce logistics is composed of2018Renminbi in [year]1.5trillion yuan increased to2022Renminbi in [year]3.2trillion yuan, with a compound annual growth rate of20.4%Yu2021year3In the month, due to the obstruction of the Suez Canal, cargo ships were unable to pass smoothly, affecting cross-border e-commerce logistics transportation. Large cargo ships were stranded in the Suez Canal, causing short-term capacity shortages, leading to market supply shortages and skyrocketing freight rates. The blockage of the Suez Canal has impacted the global shipping industry, affecting domestic transport suppliers, retailers, manufacturers, and other related groups.2021The market scale of cross-border e-commerce logistics reached RMB3.2trillion yuan, and is expected to be2023It will gradually resume in the coming year.2027In [year], this number is expected to reach RMB5.0trillion yuan, from2022Year-end2027The compound annual growth rate for the year is9.2%.

Source: Frost & Sullivan report

Market Drivers of Cross-border E-commerce Logistics

Increase in the number of international trade and online shopping users

International trade has promoted the development of trade liberalization. Commodities, goods, and technologies circulate rapidly worldwide. Economic and trade ties have strengthened, bringing new opportunities to many countries. In recent years, the number of online shoppers has experienced rapid growth, from2018year610.1Rise from one million to2022year845.3one million. At the same time, due to2020yearCOVID-19 pandemicThe outbreak has led global consumption to shift from offline to online models. Driven by this economic backdrop, cross-border e-commerce has shown rapid growth in recent years due to its advantages such as no geographical restrictions, more convenient shopping experiences, and a wider variety of products. Therefore, as the fundamental support for transportation, with the prosperity of the macroeconomy and the development of the cross-border e-commerce industry, upstream cross-border e-commerce logistics have also been continuously promoted.

Service upgrade of cross-border e-commerce logistics

To reduce logistics costs, improve logistics service efficiency, and meet the diverse needs of customers, cross-border e-commerce logistics services are continuously transforming and upgrading. Traditional logistics services are relatively simple, while upgraded logistics services can integrate the entire process, including collection, warehousing, distribution, etc. Upgraded logistics services can also provide customs clearance, information management, supply chain management, and other value-added services, establishing a more comprehensive and efficient logistics network. The upgrade of cross-border e-commerce logistics services has improved the efficiency of the entire cross-border e-commerce market because the circulation of goods has been accelerated and enhanced. As a result, the revenues and order volumes of cross-border e-commerce logistics enterprises have surged, thereby stimulating the development of the cross-border e-commerce logistics industry.

favorable policies

According to the "14th Five-Year Plan for the Development of Modern Logistics"2021Year-end2025(2023), with the goal of2025Accelerate the integration of logistics hub resources before the New Year, build major international and local logistics channels, and basically establish a modern logistics system that coordinates supply and demand, connects internally and externally, and is safe, efficient, intelligent, and environmentally friendly. In addition, the Hangzhou Municipal Government has issued the 'Implementation Opinions on Accelerating the High-Quality Development of Cross-border E-commerce', encouraging the construction of cross-border e-commerce logistics (such as comprehensive warehouses and overseas warehouses) and providing financial support for outstanding cross-border e-commerce enterprises. Generally speaking, financial support is provided through direct appropriations to companies.

2018In [year], the Shenzhen Finance Commission issued the 'Special Funds Management Method for the Development of Modern Logistics Industry in Shenzhen'. The policy aims to promote the development of modern logistics industry in Shenzhen, facilitate economic restructuring and optimization, and consolidate the pillar position of logistics industry in Shenzhen. Furthermore, according to the 'Guiding Opinions on Promoting the New Pattern of Western Development in the New Era', its goal is to encourage greater openness in western China under the 'Belt and Road' policy. The train capacity along the Yangtze River and the cargo collection and distribution system at ports will be improved, and active measures will be taken to support multimodal transportation by accelerating the construction of trains and highways connecting ports with industrial parks.

2021year12In January, the Chengdu Municipal Government issued the 'Supportive Policies for Accelerating the Construction of Chengdu's Aviation Freight Hub'. The policy aims to leverage the advantages of Chengdu Airport, cultivate base freight airlines and aviation logistics integrators, and build a global aviation gateway hub, interstate aviation transfer hub, and aviation freight forwarding center.2023year4In the month, Chengdu Tianfu International Airport successfully launched a full freighter service, contributing to the development of Chengdu's aviation logistics industry.

The competitive landscape of cross-border e-commerce logistics industry in China

The cross-border e-commerce logistics market in China mainly includes overseas participants and local participants. Overseas participants in China are international logistics suppliers, such asDHL,UPSFedEx and other companies mainly provide logistics services such as package delivery, cross-border freight, and overseas warehousing. These overseas participants in China have extensive overseas logistics networks and mainly bear the transportation costs for overseas regions. In terms of domestic operations, overseas international logistics service providers mainly specialize in providing international long-distance transportation services. Compared with domestic enterprises, they invest less resources in China (labor-intensive areas), such as manpower for marketing, labeling, packing, and sorting warehouse operations. Therefore, overseas international logistics service providers often cooperate with domestic enterprises, where customers entrust domestic companies to provide cross-border delivery services, while domestic enterprises hire overseas international logistics providers after completing warehousing, security checks, labeling, packing, and sorting processes at their service outlets in China, to provide international long-distance transportation and last-mile delivery services.

The cross-border e-commerce logistics market in China is highly fragmented, among which by2022Revenue generated from cross-border e-commerce logistics services in [year] accounted for [X]% of the total market share by the top five local participants of cross-border e-commerce logistics service providers2.5%Yu2022In [year], in terms of cross-border e-commerce logistics revenue, the Group ranked between25Famous30Name, with earnings of RMB10Yuan, accounting for market share0.03%.

Source: Frost & Sullivan report

View the prospectus

Frost & Sullivan has extensive research experience in the transportation industry, assisting well-known companies in successfully accessing capital markets. Successful listings include: JET Express (1519.HK), LeCAN Logistics2490.HK), Jia YudaNASDAQ:JYD),CBL（NASDAQ:BANL), InterContinental Shipping Lines2409.HK), Deutsche Bank Worldwide2418.HK), Kuaidao Taxi2246.HK), Canggang Railway2169.HK), Yanguang PearlYGMZ.NASDAQ)Asia Express8620.HK),InfinityL&T（1442.HK), Xiangxing International8157.HK), CSSC Leasing3877.HK), Chengdu Expressway1785.HK), Hua Zi International2258.HK), Wanli Da8482.HK), Qilu Expressway1576.HK), Asia Industry1737.HK), JunGao Holdings8035.HK).