1 S.F. Holding Co., Ltd. 2019 Semi-Annual Report S.F. Holding Co., Ltd. 2019 Semi-Annual Report August 2019 2 S.F. Holding Co., Ltd. 2019 Semi-Annual Report Notice The Company prepared its 2019 Semi-Annual Report in accordance with relevant regulations and guidelines set forth by the China Securities Regulatory Commission and the Shenzhen Stock Exchange, including the “Publicly Listed Company Information Disclosure Content and Format Guideline No. 3 Semi-Annual Report Content and Format,” the “Shenzhen Stock Exchange Listing Rules,” the “Shenzhen Stock Exchange Standard Operating Guidelines for Small and Medium Enterprises,” and the “Small and Medium Enterprise Information Disclosure Memorandum No. 2 – Matters Related to Periodic Disclosures.” The Company's 2019 Semi-Annual Report was prepared and published in Chinese and the English version is for reference only. Should there be inconsistency between the Chinese version and the English version, the Chinese version shall prevail. Investors can access the Company's 2019 Semi-Annual Report on Cninfo (www.cninfo.com.cn), which is designated by the China Securities Regulatory Commission for Publishing the Semi-Annual Report. 3 S.F. Holding Co., Ltd. 2019 Semi-Annual Report Chapter 1 Important Information, Table of Contents, and Definitions The Company's Board of Directors, Supervisory Committee, directors, supervisors, and senior management hereby guarantee that the contents of the Semi-Annual Report are true, accurate, and complete, and that there are no misrepresentations, misleading statements, or material omissions, and shall assume individual and joint legal liabilities. Wang Wei, the Company's responsible person, NG Wai Ting, the person in charge of accounting work, and Wang Lixiu, the person in charge of the accounting department (accounting officer), hereby declare and warrant that the financial report within the Semi-Annual Report is true, accurate, and complete. All directors have attended the Board meeting approving the Semi-Annual Report. Forward-looking statements such as future development plans in this report do not constitute the Company's promise to investors. Investors are advised to invest rationally and to take into account possible investment risks. The Company is required to comply with the disclosure requirements presented in the Shenzhen Stock Exchange for Industrial Information Disclosure No.9 – Listed Companies Engaged in the Express Delivery Services Business. In this Semi-Annual Report, the Company details the possible risk factors and countermeasures that may occur in the future. For more information, refer to “Section X. Possible Risks and Countermeasures” in “Chapter 4. Management Discussion and Analysis of Business Operation.” Investors shall refer to this information. The Company does not plan to issue cash or equity dividends, nor to convert equity reserve into share capital of the Company. 4 S.F. Holding Co., Ltd. 2019 Semi-Annual Report Table of Contents Chapter 1 Important Information, Table of Contents, and Definitions ........................................ 4 Chapter 2 Company Profile and Key Financial Indicators ........................................................... 7 Chapter3 Business Overview .......................................................................................................... 10 Chapter4 Management Discussion and Analysis of Business Operation .................................... 43 Chapter 5 Significant Events .......................................................................................................... 77 Chapter 6 Share Changes & Shareholder Details ....................................................................... 102 Chapter 7 Preferred Shares .......................................................................................................... 107 Chapter 8 Directors, Supervisors and Senior Managers ............................................................ 108 Chapter 9 Corporate Bonds .......................................................................................................... 109 Chapter 10 Financial Statements .................................................................................................. 110 Chapter 11 List of Documents Available for Inspection ............................................................. 277 5 S.F. Holding Co., Ltd. 2019 Semi-Annual Report Definitions Term Description Reporting period January 1, 2019 to June 30, 2019 The same period of January 1, 2018 to June 30, 2018 previous year S.F. Holding Co., Ltd., formerly known as Maanshan Dingtai Rare Earth and New The Company, The listed Materials Co., Ltd. After completing a major asset restructuring (as defined below) in Company, SF Holding December 2016, it was officially renamed to S.F. Holding Co., Ltd. in February 2017. RMB Renminbi yuan Shenzhen Mingde Holding Development Co., Ltd., the controlling shareholder of S.F. Mingde Holding Holding Co., Ltd. Maanshan Dingtai Rare Earth and New Materials Co., Ltd., The predecessor of S.F. Dingtai New Materials Holding Co., Ltd., it was renamed to S.F. Holding Co., Ltd. in February 2017. Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a subsidiary of S.F. Holding Co., Taisen Holding Ltd. Shunda Fengrun Ningbo Shunda Fengrun Investment Management Partnership (Limited Partnership) Jiaqiang Shunfeng Jiaqiang Shunfeng (Shenzhen) Equity Investment Partnership (Limited Partnership) Zhaoguang Investment Shenzhen Zhaoguang Investment Co., Ltd. Suzhou Industrial Park Oriza Shunfeng Equity Investment Company (Limited Oriza Shunfeng Partnership) Guyu Qiuchuang Suzhou Guyu Qiuchuang Equity Investment Partnership (Limited Partnership) Shunxin Fenghe Ningbo Shunxin Fenghe Investment Management Partnership (Limited Partnership) In December 2016, all assets and liabilities (exchange-out assets) of the Company's predecessor, Dingtai New Materials, was replaced with the equivalent 100% equity (exchange-in assets) of Taisen Holding held by all shareholders of Taisen Holding as Major asset restructuring of December 31, 2015. The difference between the exchange-in assets and the exchange-out assets was purchased by Dingtai New Materials, the Company's predecessor, from all shareholders of Taisen Holding, in the form of issuing shares. Shenzhen Mingde Holdings Development Co., Ltd., Ningbo Shunda Fengrun Investment Management Partnership (Limited Partnership), Jiaqiang Shunfeng (Shenzhen) Equity Investment Partnership (Limited Partnership), Shenzhen The restructuring Zhaoguang Investment Co., Ltd., Suzhou Industrial Park Oriza Shunfeng Equity counterparties Investment Company (Limited Partnership), Suzhou Guyu Qiuchuang Equity Investment Partnership (Limited Partnership), and Ningbo Shunxin Fenghe Investment Management Partnership (Limited Partnership) All assets and liabilities of the Company's predecessor, Dingtai New Materials, as of Exchange-out assets December 31, 2015. Exchange-in assets 100% equity of Taisen Holding as of December 31, 2015. 6 S.F. Holding Co., Ltd. 2019 Semi-Annual Report Chapter 2 Company Profile and Key Financial Indicators I. Company Profile Stock Abbreviation SF Holding Stock Code 002352 Listed Stock Exchange Shenzhen Stock Exchange Chinese Name of the Company 顺丰控股股份有限公司 Chinese Name Abbreviation of 顺丰控股 the Company English Name of the Company S.F. Holding Co., Ltd. English Name Abbreviation of the SF Holding Company Legal Representative of the Wang Wei Company II. Contacts and Contact Methods Board Secretary Securities Affairs Representative Name Gan Ling Zeng Jing Address Wanji Business Building, Xinzhou 11th Street, Wanji Business Building, Xinzhou 11th Street, Futian District, Shenzhen, Guangdong Province Futian District, Shenzhen, Guangdong Province Tel No. 0755-36395338 0755-36395338 Fax 0755-36646400 0755-36646400 Email [email protected] [email protected] III. Other Information 1. Corporate Contact Information Were there any changes to the Company's registered address, office address or postal code, company website, or to the email address during the reporting period? □ Yes √No There were no changes to the Company's registered address, office address or postal code, company website, nor email address during the reporting period. Refer to the Company's 2018 Annual report for details. 2. Information Disclosure and Location of Report Were there any changes to information disclosure and location during the reporting period? □ Yes √No There were no changes to the name of the newspaper designated for information disclosure, to the address of website designated by the China Securities Regulatory Commission for semi-annual report publication, nor to the storage location of company's Semi-Annual report during the reporting period. Refer to the Company's 2018 Annual report for details. 7 S.F. Holding Co., Ltd. 2019 Semi-Annual Report IV. Key Accounting Information and Financial Indicators Does the Company need to adjust its financial information retrospectively or restate its previous year accounting information? √Yes □No Rationale for retrospective adjustments or restatements Business combination involving enterprises under common control Increase/Decrease over The same period of previous year the same period of Current reporting previous year period Before After After restatements restatements restatements Revenue (RMB) 50,074,704,033.85 42,503,599,511.93 42,550,906,755.42 17.68% Net profit attributable to shareholders of 3,101,111,638.63 2,233,730,274.21 2,209,579,126.20 40.35% the parent company (RMB) Net profit after